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61) Which of the following wholesaler's channel functions is exemplified by buying in carload
lots and then dividing these lots into small quantities?
A) warehousing
B) transportation
C) risk bearing
D) bulk breaking
E) selling and promoting
62) ________ are the largest group of wholesalers. They include two broad types: full-service
wholesalers and limited-service wholesalers.
A) Brokers
B) Manufacturer sellers
C) Manufacturers' agents
D) Merchant wholesalers
E) Selling agents
63) What is the most common type of agent wholesaler?
A) wholesale merchant
B) industrial distributor
C) limited-service wholesaler
D) manufacturers' representative
E) truck jobber
64) ________ and ________ do not take title to goods, and they perform only a few channel
functions.
A) Full-service wholesalers; limited-service wholesalers
B) Brokers; agents
C) Industrial distributors; cash-and-carry wholesalers
D) Cash-and-carry wholesalers; industrial distributors
E) Rack jobbers; off-price retailers
65) A(n) ________ brings buyers and sellers together and assists in negotiations.
A) agent
B) broker
C) retailer
D) wholesaler
E) industrial distributor
66) A(n) ________ does not take title to goods and represents buyers or sellers on a more
permanent basis than a broker.
A) full-service wholesaler
B) industrial distributor
C) agent
D) retailer
E) cash-and-carry wholesaler
67) Which type of wholesaler sells to manufacturers rather than to retailers?
A) industrial distributor
B) full-service wholesaler
C) cash-and-carry wholesaler
D) wholesale merchant
E) limited-service wholesaler
68) ________ are a type of limited-service wholesalers who carry a limited line of
semiperishable merchandise (such as milk, bread, snack foods), which is sold for cash as
deliveries are made to supermarkets, small groceries, or hotels.
A) Industrial distributors
B) Wholesale merchants
C) Full-service wholesalers
D) Truck jobbers
E) Purchasing agents
69) ________ are a type of limited-service wholesalers who do not carry inventory or handle a
product. They typically operate in bulk industries, such as coal, lumber, and heavy equipment.
A) Wholesale merchants
B) Industrial distributors
C) Cash-and-carry wholesalers
D) Rack jobbers
E) Drop shippers
70) ________ are agents who take physical possession of products and negotiate sales. They deal
mostly with agricultural marketing.
A) Industrial distributors
B) Cash-and-carry wholesalers
C) Purchasing officers
D) Rack jobbers
E) Commission merchants
71) ________ are wholesalers who serve grocery and drug retailers, mostly in nonfood items.
They price the goods, keep them fresh, set up point-of-purchase displays, and keep inventory
records.
A) Purchasing agents
B) Rack jobbers
C) Drop shippers
D) Cash-and-carry wholesalers
E) Manufacturers' agents
72) Today's large, progressive wholesalers have successfully reacted to rising costs by
________.
A) relocating to low-rent, low-tax areas
B) investing in information technology systems
C) investing less money in expensive machinery
D) reducing their markup rates
E) reducing promotional activities
73) GameStop sells only video games and systems, offering a narrow product line with a deep
assortment within that line. GameStop is a(n) ________.
A) department store
B) convenience store
C) category killer
D) specialty store
E) off-price retailer
74) 7-Eleven, Stop-N-Go, and Circle K are examples of ________.
A) department stores
B) convenience stores
C) category killers
D) specialty stores
E) supermarkets
75) Which of the following terms best describes a large, low-cost, low-margin, high-volume,
self-service store that carries a wide variety of grocery and household products?
A) convenience store
B) supermarket
C) specialty store
D) warehouse club
E) factory outlet
76) Overstock.com, a Web seller that buys furniture, clothing, electronics, and more from a
variety of producers at less-than-regular wholesale prices and then charges customers less than
retail, is a(n) ________.
A) specialty store
B) off-price retailer
C) factory outlet
D) wholesale club
E) category killer
77) Springfield, a convenience store, has recently begun to redesign and restock its stores to offer
a more upscale environment with products such as house wines and fresh foods. This
information indicates that Springfield has most likely changed its ________.
A) positioning
B) price strategy
C) service level
D) corporate identity
E) organizational structure
78) Cabela's stores are as much natural history museums for outdoor enthusiasts as they are retail
outlets. This information indicates that Cabela's is practicing ________.
A) wholesaling
B) nonstore retailing
C) shopper marketing
D) experiential shopping
E) showrooming
79) Big and Tall Men's Shop carries men's clothing in larger sizes; this allows the store to
________ other stores.
A) align itself with
B) differentiate itself from
C) cluster with
D) affect the store atmosphere of
E) converge with
80) The lighting in Jake's Steak Restaurant is dim. The chairs are covered in leather and each
table is covered with a white linen cloth. The colors are limited to earth tones with an occasional
splash of red. Patrons cannot hear any kitchen noises, only a pleasant melody that seems familiar
but unrecognizable. The smells are extraordinarily varied. This is a description of the restaurant's
________.
A) promotions
B) target
C) atmosphere
D) services mix
E) product assortment
81) Which of the following best describes a similarity between Costco and Walmart?
A) Both are warehouse clubs.
B) Both target the same affluent market.
C) Both are specialty stores.
D) Both use everyday low pricing.
E) Both are examples of merchant wholesalers.
82) Macy's department stores carry a wide range of product lines, including clothing, jewelry,
kitchenware, and home furnishings. Macy's typically charges a relatively high markup, but also
holds frequent sales and price promotions, in particular offering discounts to customers who use
a Macy's credit card. Macy's uses ________.
A) self-service retailing
B) experiential retailing
C) high-low pricing
D) everyday low pricing
E) retail convergence
83) Which of the following is most likely true about shoppers who prefer to shop at "lifestyle
centers"?
A) They use coupons.
B) They prefer upscale stores.
C) They prefer indoor shopping locations.
D) They rarely dine out in expensive restaurants.
E) They are motivated by deals on last year's merchandise.
84) Carey David's wholesale company helps retailers train salesclerks, improve store layouts and
displays, and set up inventory control systems. According to this information, which of the
following wholesaler's channel functions is provided by Carey David?
A) buying and assortment building
B) selling and promotion services
C) risk bearing services
D) marketing information
E) management services and advice
85) You own a small independent retail store in your neighborhood. You want to offer fresh
seafood, milk, and bread in your store. In this case which of the following types of wholesalers
will serve you the best?
A) truck jobber
B) independent distributor
C) drop shipper
D) mail-order wholesaler
E) manufacturers' agent
86) You own a neighborhood grocery store and would like to have non-food items delivered,
priced, displayed and inventoried by a wholesaler. You do not want to purchase title to the
goods. Which type of wholesaler best fits your needs?
A) cash-and-carry wholesaler
B) rack jobber
C) drop shipper
D) mail-order wholesaler
E) agents and brokers
87) Tony Pool Chemical Co. purchased 144 buckets of chlorine tablets over the Internet from
Chemical Inc. Then Chemical Inc. placed the order with the manufacturer, and the manufacturer
then transported the tablets directly to the Tony Pool store. In this case, Chemical Inc. is an
example of a ________.
A) drop shipper
B) truck jobber
C) rack jobber
D) full-service wholesaler
E) cash-and-carry wholesaler
88) ________ perform a role similar to that of brokers or agents but are part of the buyer's
organization.
A) Truck jobbers
B) Merchant wholesalers
C) Purchasing officers
D) Rack jobbers
E) Cash-and-carry wholesalers
Refer to the scenario below to answer the following questions.In the 1970s, Shipshewana was
only a small town with a hardware store, a grain mill, a shoe store, a small restaurant, and a
grocery store. Over the next two decades, the small town transformed into an international tourist
attraction, attracting thousands of tourists who were intrigued by the lifestyle of Shipshewana's
largest population—the Amish.
Ben and Mary Miller, having grown up within the Amish faith, decided to capitalize on their
town's popularity and their woodworking skills. Their shop, Indiana Wood, began with a small
display of handmade hickory rocking chairs, Ben Miller's specialty. But within a few months, the
display at Indiana Wood included picnic tables, flower boxes, and small handmade novelty
items. No other shop offers the same.
Mary Miller decorated the shop's display room with authentic Amish décor and eventually hired
three Amish friends to sew and embroider napkins and other textiles as per customer requests. In
addition, two women from the Amish community sought permission from the Millers to display
home-baked pastries and jellies on Tuesdays and Wednesdays, when Shipshewana attracts
swarms of visitors to its flea market on the south edge of town. The Millers also hired four more
people to help customers throughout the purchasing process and to provide the required product
related information to the customers.
"Shipshewana is full of specialty shops," Mary Miller stated. "People don't come here to buy
things made in China or Taiwan. They want real, Amish-made goods."
89) Indiana Wood can be best classified as a(n) ________.
A) full-service retailer
B) industrial distributor
C) truck jobber
D) warehouse club
E) drop shipper
90) The authentic Amish décor of Indiana Wood's contributes to the store's ________.
A) product assortment
B) services mix
C) atmosphere
D) segmentation
E) retail convergence
91) Which of the following would be the most logical way for Indiana Wood to expand?
A) establishing an online presence
B) pursuing retail convergence
C) implementing RFID inventory tracking
D) establishing a community-gathering environment in the store
E) joining a producers' cooperative
92) Wholesaling includes all the activities involved in selling products or services directly to
final consumers for their personal, nonbusiness use.
93) Shopper marketing involves focusing the entire marketing process—from product and brand
development to logistics, promotion, and merchandising—toward turning shoppers into buyers at
the point of sale.
