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211. Franchisees do not pay to use the franchiser's name.
a.
True
b.
False
212. Wholesaling involves all transactions in which products are bought for resale, for use in making other products, or
for general business operations.
a.
True
b.
False
213. Wholesalers do not engage in selling to reseller, government, or institutional users.
a.
True
b.
False
214. Less than half of all goods are exchanged through wholesaling institutions.
a.
True
b.
False
215. Wholesalers perform marketing functions only for the retailers below them in the channel of distribution.
a.
True
b.
False
216. Wholesalers rarely handle credit for retailers and producers.
a.
True
b.
False
217. The use of wholesalers permits producers to concentrate on developing and manufacturing products that match
consumers' wants.
a.
True
b.
False
218. Distribution of all goods requires wholesaling activities, whether or not a wholesaling institution is involved.
a.
True
b.
False
219. By buying in large quantities and delivering to customers in smaller lots, a wholesaler may perform physical
distribution activities more efficiently than a producer.
a.
True
b.
False
220. The classification of wholesalers in the text is based solely on the performance of marketing activities.
a.
True
b.
False
221. Merchant wholesalers assume risks of ownership.
a.
True
b.
False
222. Full-service merchant wholesalers are either general merchandise wholesalers or specialty-line wholesalers.
a.
True
b.
False
223. General-merchandise wholesalers are full-service merchant wholesalers who carry only a few product lines.
a.
True
b.
False
224. General-line wholesalers are a type of full-service merchant wholesaler.
a.
True
b.
False
225. Limited-service wholesalers provide only some marketing services and specialize in a few functions.
a.
True
b.
False
226. Typical limited-service wholesalers are rack jobbers, truck wholesalers, specialty-line wholesalers, and cash-and-
carry wholesalers.
a.
True
b.
False
227. A cash-and-carry wholesaler provides transportation, delivers products directly to customers, and places products on
the retailer's shelves.
a.
True
b.
False
228. Cash-and-carry wholesalers draw most of their customers from large retailers and industrial firms.
a.
True
b.
False
229. Truck wholesalers are usually classified as limited-service wholesalers because they offer a limited line of products.
a.
True
b.
False
230. Mail-order wholesalers are limited-function wholesalers who sell through catalogs to retailers and organizational
customers.
a.
True
b.
False
231. Agents represent either buyers or sellers on a temporary basis.
a.
True
b.
False
232. Agents and brokers perform more functions than limited-service wholesalers.
a.
True
b.
False
233. Most manufacturers' agents prefer to work for one manufacturer at a time to avoid conflicts of interest.
a.
True
b.
False
234. Selling agents have control over the marketing efforts of manufacturers and may be used in place of a marketing
department.
a.
True
b.
False
235. Commission merchants tend to have relatively broad powers concerning prices and terms of sales.
a.
True
b.
False
236. The broker's primary function is to bring the buyer and seller together and assist in negotiating an exchange.
a.
True
b.
False
237. Sales offices differ from sales branches in that sales offices may offer credit, deliver goods, and give promotional
assistance.
a.
True
b.
False
238. You are a highly-respected, retail executive with a Fortune 500 company, and you have been asked to speak at the
upcoming annual meeting of the Professionals in Retail Association. You have been asked to talk about changes taking
place in retail and the keys to success in this new retailing environment. Which of the following statements about retail
would you want to incorporate into your speech?
a.
Retailers are no longer the critical link between producers and ultimate consumers because they no longer
provide the environment for exchanges to occur between these parties.
b.
The key to success is to have a strong customer focus, and provide good service, product quality and
innovation for your customers.
c.
New store formats have not been significantly impacted by technology.
d.
Retailers are finding that it is more profitable to limit their target markets to domestic markets primarily
instead of pursuing global opportunities.
e.
Traditional retailing has only been marginally impacted by the Internet.
239. You are part of an investment group that is planning to open a warehouse club in your hometown. There are a
number of considerations that you will have to address in order for this venture to be successful. Which of the following
statements is true regarding warehouse clubs?
a.
They have not been successful in the United States, but they are popular in Europe.
b.
They are service-oriented, and offer credit and personal assistance.
c.
They are members-only selling operations.
d.
The primary product they offer is convenience.
e.
They accept lower sales volume in exchange for higher margins.
240. Two years ago, the private equity firm you are the general partner of purchased a portfolio of regional shopping
centers in Texas. The shopping centers have performed well, but not as well as you would like. So, you have decided to
convert them to superregional shopping centers in an effort to boost their profits. Which of the following marketing-
related steps will you need to take in order to affect this transformation?
a.
You will need to expand the width and length of your product mixes.
b.
You will need to upgrade the architectural designs of the stores.
c.
You will need to increase your marketing to value-conscious customers.
d.
You will need to reduce the number of stores in the shopping center.
e.
You will need to reduce your target market, and focus on a smaller geographical area.
241. You represent a group of investors who are exploring alternatives for entering the retailing business. Many of these
investors have significant past experience working for other retailing companies and they realize the retailing business is
very competitive. They also realize there is a high failure rate for startups in this industry. They ask you recommend a
retailing strategy that would meet the following criteria:
• No storefront would be needed
• No personal selling would be needed
• No traditional store operating expenses are necessary
• Customers can place orders via the Internet, telephone or mail
• Low operating expenses and limited customer service required
Which of following retailing strategy are you going to recommend they use?
a.
Telemarketing
b.
Automatic vending
c.
Direct selling
d.
Television home shopping
e.
Catalog marketing
242. You are conducting a business startup workshop sponsored by the Small Business Administration. The workshop
attendees are all aspiring business owners who are excited and fearful about the prospect of starting their own business.
Early in the workshop, you asked the attendees to complete a questionnaire about their major concerns in starting a new
business. The majority of the respondents indicated their biggest concerns were limited capital and lack of business
experience.
Based on these concerns, which of the following business strategies do you think would be most appropriate for these
workshop attendees?
a.
Start their business as a full-service wholesaler
b.
Start their business as a franchisee
c.
Start their business as a mail-order wholesaler
d.
Start their business as a merchant wholesaler
e.
Start their business as a franchiser
243. New store formats and advances in _______________ are making the retail environment highly dynamic and
competitive.
a.
e-commerce
b.
inventory management
c.
product styles and quality
d.
shopping mall configurations
e.
information technology
244. Store ABC is a retailer that sells brand name and private brand products at low prices. It is a self-service store. Which
of the following is true about Store ABC?
a.
It is a convenience store
b.
It is a department store
c.
It is a discount store
d.
It is a superstore
e.
It is a warehouse club
245. Architectural design is an important aspect for a______________.
a.
lifestyle shopping center
b.
regional shopping center
c.
community shopping center
d.
superregional shopping center
e.
neighborhood shopping center
246. ___________________permits products to be easily demonstrated and allows for sufficient time to make viewers
well informed about the products.
a.
telemarketing
b.
online retailing
c.
direct selling
d.
television home shopping
e.
catalog marketing
247. Which of the following is an advantage of franchising?
a.
Limited capital is needed to start
b.
Franchiser dictates many aspects of business
c.
Franchise agreement gives control to franchiser
d.
Franchise agreements are not uniform
e.
Franchisee pays for assistance from franchiser
248. Your firm is a full-service, specialty-line wholesaler and you own display shelves and space in discount stores. Your
firm is a
a.
specialty-line wholesaler
b.
full-service wholesaler
c.
general-line wholesaler
d.
merchant wholesaler
e.
rack jobber
