d.
general merchandise wholesaler.
e.
general-line wholesaler.
152. All of the following are examples of full-service wholesalers except
a.
general merchandise wholesalers.
b.
mail-order wholesalers.
c.
rack jobbers.
d.
general-line wholesalers.
e.
specialty-line wholesalers.
153. Which of the following is a full-service merchant wholesaler?
a.
Cash-and-carry wholesaler
b.
General merchandise wholesaler
c.
Drop shipper
d.
Mail-order wholesaler
e.
Truck wholesaler
154. Brad operates a wholesale company that specializes in providing a wide variety of services to its
customers, which are all restaurants. He carries a wide assortment of restaurant equipment and
cookware. Brad’s business is a
a.
general merchandise wholesaler.
b.
rack jobber.
c.
general-line wholesaler.
d.
specialty-line wholesaler.
e.
limited-service wholesaler.
155. A general-line wholesaler would be expected to carry a ____ product mix.
a.
wide and deep
b.
wide and shallow
c.
narrow and shallow
d.
wide
e.
narrow and deep
156. Based on what he has heard regarding the profitability of such items, Paul Goldstein is considering
adding a fresh shellfish case in his grocery store. Paul knows very little about this product or the
concerns of shoppers who buy shellfish. He is looking for help in display set-up and merchandising
ideas. He should contact which of the following types of wholesalers?
a.
General-line
b.
Specialty-line
c.
General merchandise
d.
Rack jobber
e.
Limited-service merchant
157. Fiona is employed by Hallmark Cards, Inc., where her responsibilities include maintaining displays of
greeting cards in drugstores and discount stores. Her daily activities include straightening the cards,
pulling outdated or slow sellers, and installing new cards. Fiona is called a(n) _____.
a.
specialty-line wholesalers.
b.
full-service stockers.
c.
in-store maintainers.
d.
assemblers.
e.
rack jobbers.
158. Angela approaches David Hughes, owner of Hughes Auto Parts, to talk about the possibility of adding
a new line of products to his store. Angela tells David that the product is a line of high-quality driving
sunglasses. She offers to set up the display, service and restock it weekly, and maintain billing and
inventory records. She tells David that all she needs is a couple of square feet of space. Angela is in
the business of serving retailers as a
a.
general-line wholesaler.
b.
specialty-line wholesaler.
c.
rack jobber.
d.
full-service merchant wholesaler.
e.
cash-and-carry wholesaler.
159. Lynn Taylor sells Revlon cosmetics on consignment to grocery stores, maintains the display racks, and
restocks when necessary. Lynn’s job is best described as a
a.
rack jobber.
b.
drop shipper.
c.
general merchandise wholesaler.
d.
cash-and-carry wholesaler.
e.
truck jobber.
160. Merchant wholesalers who specialize in just a few functions and pass others along to other
intermediaries or customers are called
a.
limited-service wholesalers.
b.
wholesale service specialists.
c.
general-line wholesalers.
d.
specialty-line wholesalers.
e.
specialty-service wholesalers.
161. All of the following are types of limited-service merchant wholesalers except
a.
cash-and-carry wholesalers.
b.
truck wholesalers.
c.
mail-order wholesalers.
d.
specialty-line wholesalers.
e.
drop shippers.
162. Laura and Marie own and operate a small restaurant. On a weekly basis, they go to their local Sam’s
Wholesale Club to purchase the food items and cleaning supplies they need for their business. With the
exception of the volume they purchase and the items’ intended use, this grocery shopping trip is
identical to a weekly trip by their families to a grocery store. Sam’s is serving as a ____ wholesaler for
these entrepreneurs.
a.
general-line
b.
specialty-line
c.
full-service merchant
d.
truck
e.
cash-and-carry
163. What type of wholesaler transports a limited line of products directly to customers for immediate
inspection and selection?
a.
On-site wholesalers
b.
Cash-and-carry wholesalers
c.
Rack jobbers
d.
Truck jobbers
e.
Drop shippers
164. Greg works with a group of farmers who provide him with a regular supply of a variety of fresh
vegetables. He picks up their produce and has a regular route of grocers and restaurants who purchase
quantities of the items he has on any given day. Greg’s operation is which type of wholesaler?
a.
Drop shipper
b.
General-line
c.
Truck
d.
Cash-and-carry
e.
Specialty-line
165. Andrea owns and operates a small novelty store that sells home décor, gifts, jewelry, and gourmet
snacks. Because her business is very small, many wholesalers will not deal with her, so she relies
primarily on ____ for the survival of her business.
a.
drop shippers
b.
truck wholesalers
c.
rack jobbers
d.
specialty-line wholesalers
e.
cash-and-carry wholesalers
166. Drop shippers
a.
take title to but not physical possession of the goods.
b.
do not take title to or physical possession of the goods.
c.
take title to and physical possession of the goods.
d.
do not take title to but take physical possession of the goods.
e.
are similar to truck wholesalers but provide the extra service of placing products on
retailers’ shelves.
167. Which of the following wholesalers never take actual possession of the goods?
a.
Drop shippers
b.
Cash-and-carry wholesalers
c.
Truck jobbers
d.
Mail-order wholesalers
e.
Rack jobbers
168. Mark Bradley’s company takes orders from its collection of retail customers and arranges the shipment
of goods directly from manufacturers or other wholesalers to its customers’ businesses. Mark is
operating as a
a.
mail-order wholesaler.
b.
drop shipper.
c.
desk wholesaler.
d.
truck jobber.
e.
specialty-line wholesaler.
169. Alison lives in a remote area of Montana, where few good roads exist. She runs a small retail store
specializing in western attire. Due to her remote location, Alison is most likely to obtain the
merchandise for her store from
a.
rack jobbers.
b.
general-line wholesalers.
c.
mail-order wholesalers.
d.
truck wholesalers.
e.
specialty-line wholesalers.
170. ____ provide an effective method of selling small items to customers in remote areas that other
wholesalers might find unprofitable to serve.
a.
Desk jobbers
b.
Specialty-line wholesalers
c.
Cash-and-carry wholesalers
d.
Truck wholesalers
e.
Mail-order wholesalers
171. Agents and brokers that facilitate and negotiate purchases but do not actually take title to products are
also known as
a.
functional wholesalers.
b.
commission wholesalers.
c.
hands-off intermediaries.
d.
contract negotiators.
e.
functional middlemen.
172. What is the primary difference between an agent and a broker?
a.
An agent gets compensated based on commission while a broker generally charges fees for
his services.
b.
A broker works only for a seller whereas an agent can represent a buyer or a seller.
c.
An agent represents a company on a permanent basis while a broker is employed
temporarily.
d.
An agent has much more extensive knowledge about the products he deals with than a
broker does.
e.
Brokers have long-term relationships with their customers while an agent’s relationships
are generally short-lived.
173. The difference between an agent and a broker is that an agent
a.
seeks profit, whereas a broker does not.
b.
is an intermediary, whereas a broker is not.
c.
represents the seller and a broker represents the buyer.
d.
determines who the consumers are, whereas the broker does not determine the customers.
e.
usually represents people on a permanent basis, whereas a broker usually does so on a
temporary basis.
174. Independent intermediaries that represent two or more sellers and usually offer customers complete
product lines in a restricted territory are called
a.
commission merchants.
b.
manufacturers’ agents.
c.
selling agents.
d.
truck wholesalers.
e.
brokers.
175. Because Gem Supply’s sales have continued to decline, the jewelry manufacturer has found that the
costs associated with maintaining its own five-person sales force are prohibitive. The firm’s marketing
director begins to look for a small company or individual willing to perform the sales function for Gem
Supply in its least productive region, the Far West. The ideal entity would carry complementary but
non-competing lines. Such a firm or individual would be classified as a
a.
rack jobber.
b.
manufacturers’ agent.
c.
specialty-line wholesaler.
d.
selling agent.
e.
commission merchant.
176. Manufacturers’ agents offer products that are both
a.
noncompeting and complementary.
b.
competing and specialized.
c.
unrelated and noncompeting.
d.
complementary and competing.
e.
unrelated and competing.
177. Karen has been a buyer for Ocean Mist, a large cranberry processor, for several years. Believing that
she knows a great deal about cranberries, their growers, and processors, she decides to go into business
for herself. Karen wants to assume no risks of spoilage or price fluctuations. She sees herself as simply
bringing the growers and processors together. Her new company would be a
a.
sales agent.
b.
commission merchant.
c.
broker.
d.
sales branch.
e.
sales office.
178. A difference between manufacturers’ agents and selling agents is that
a.
selling agents have little control over the marketing mix of the manufacturers they
represent.
b.
selling agents represent retailers.
c.
manufacturers’ agents do not offer retailers aid in advertising or promotional material.
d.
selling agents do not have the territorial restrictions that manufacturers’ agents do.
e.
selling agents represent wholesalers.
179. Selling agents perform every wholesaling activity except
a.
transporting goods.
b.
setting prices.
c.
financing the products.
d.
taking title to products.
e.
inventory control.
180. A channel member that markets all of a manufacturer’s goods, has authority over price, promotion, and
distribution, but does not take title to the product is a
a.
general-line wholesaler.
b.
selling agent.
c.
commission merchant.
d.
manufacturers’ agent.
e.
broker.
181. Thad works for a company that markets all of Celetron’s products. Thad’s company acts as the
marketing department for Celetron, performing all marketing functions without actually taking title to
the goods. Thad’s company is a
a.
commission merchant.
b.
manufacturers’ agent.
c.
sales branch.
d.
selling agent.
e.
full-service wholesaler.
182. An agent that receives goods on consignment from local sellers and negotiates sales in large, central
markets is called a
a.
commission merchant.
b.
sales branch agent.
c.
selling agent.
d.
manufacturers’ agent.
e.
broker-agent.
183. Calhoun Produce, a ____, takes possession of truckloads of tomatoes, arranges for storage, and
transports them to auctions to be sold.
a.
manufacturer’s agent
b.
selling agent
c.
commission broker
d.
commission merchant
e.
selling broker
184. The primary purpose of a(n) ____ is to bring buyers and sellers together.
a.
commission merchant
b.
selling agent
c.
manufacturers’ agent
d.
intermediary
e.
broker
185. Chandra has extensive contacts in the real estate business and brings together buyers and sellers.
Although she assumes no risks, she can offer specialized knowledge about real estate. Chandra is a
a.
commission merchant.
b.
selling agent.
c.
broker.
d.
specialty salesperson.
e.
sales branch agent.
186. Intermediaries owned by manufacturers that sell products and provide support services to the
manufacturers’ sales forces are known as
a.
manufacturers’ agents.
b.
sales branches.
c.
selling agents.
d.
sales offices.
e.
commission merchants.
187. The management at Kohler Inc., a manufacturer of sinks, tubs, and other plumbing products, thinks
that there will soon be a major growth in home remodeling due to rising interest rates. The
management decides to use ____ in several key cities to provide support services for its sales force in
those areas, carry inventory, and offer credit and other services to its retail plumbing customers.
a.
sales agents
b.
commission merchants
c.
broker offices
d.
sales branches
e.
facilitating agencies
188. A manufacturer-owned operation that provides services usually associated with agents is a
a.
facilitating agency.
b.
wholesaler.
c.
sales office.
d.
sales branch.
e.
public warehouse.
189. Veronica Montez works for Bicardi at a location away from the manufacturing plants. She provides
wholesale services to wholesale and retail customers, but her facility does not carry inventory.
Veronica works at a
a.
sales branch.
b.
manufacturers’ agency.
c.
sales office.
d.
retail outlet.
e.
commission brokerage.
Scenario 16.1
Use the following to answer the questions.
Landry Restaurants, Inc. owns a number of different franchised restaurants, including the Rain Forest
Cafe and their recent addition, the T-Rex Cafe. Both the Rain Forest and T-Rex restaurants
differentiate themselves from their competitors by offering a unique dining experience. At the Rain
Forest Cafe you can dine under a ceiling of lush tropical forest plants while you are viewing the
enormous aquarium with exotic fish. Periodically, the rain forest explodes with the sound of waterfalls
and birds. Giant stuffed monkeys, parrots, and other jungle creatures are planted within the landscape.
The Rain Forest Cafe also contains a gift shop, where customers can purchase t-shirts, hats, and other
items emblazoned with the Rain Forest logo. The newer T-Rex Cafe has a similar approach to the
uniqueness of the dining experience. The T-Rex Cafe offers guests a hands-on prehistoric experience,
including educational, interactive computer screens. Customers can also pan for precious gems and
fossils in Discovery Creek or feast on food from the Kitchen of Fire. The T-Rex Cafe also has a gift
shop, where customers can purchase items with the T-Rex logo or build their very own stuffed
dinosaur, through “Build-a-Dino” by the “Build-a-Bear” franchise.
190. Refer to Scenario 16.1. The unique dining experiences offered by the Rain Forest Cafe and T-Rex
Cafe represent the strategic issue of ____ addressed by the restaurants.
a.
retail location
b.
product mix
c.
retail positioning
d.
the wheel of retailing
e.
customer segmentation
191. Refer to Scenario 16.1. The lush tropical plants and aquarium represent the ____ of the Rain Forest
Cafe, while the opportunity to Build-a-Dino is an example of ____.
a.
atmospherics; product lines
b.
retail positioning; customer segmentation
c.
scrambled merchandising; retail positioning
d.
atmospherics; scrambled merchandising
e.
store image; retail positioning
192. Refer to Scenario 16.1. The Rain Forest Cafe and T-Rex Cafe are usually located in tourist-dense areas
or large shopping malls in order to capture walk-by traffic. If the restaurants’ primary focus was to
obtain customers who are walking by, they would definitely not want which of the following
locations?
a.
strip centers
b.
free-standing buildings
c.
regional shopping centers
d.
the Mall of America
e.
a traditional business district
Scenario 16.2
Use the following to answer the questions.
Lands’ End offers clothing and accessories for all members of the typical household. For many years,
the products were sold only through catalogs. Later, they were available through the company on its
Internet website. In the past few years, Lands’ End has partnered with Sears to offer selected Lands’
End products inside of Sears retail stores. This move by Lands’ End has been criticized by some
marketers because it was thought that the Lands’ End products were superior in quality to those that are
available in Sears stores. Additionally, the products available in Sears stores include Craftsman tools,
lawn care equipment, and household appliances, which are not Lands’ End types of product lines. This
may create mixed messages about Lands’ End to prospective customers.
193. Refer to Scenario 16.2. When Lands’ End sells its products through a catalog or the Internet, it is most
likely a(an) ____, selling through ____.
a.
off-price retailer; direct marketing
b.
mass merchandiser; retail outlets
c.
retailer; direct marketing
d.
specialty retailer; retail outlets
e.
category killer; direct marketing
194. Refer to Scenario 16.2. In comparison to Lands’ End, Sears has a product mix that is most likely
a.
wider but not deeper.
b.
deeper but not wider.
c.
wider and deeper.
d.
narrower and deeper.
e.
narrower, but not deeper.
195. Refer to Scenario 16.2. The move to sell Land’s End products inside of Sears’ stores may lead to
potential problems with the customer’s perception of Lands’ End quality, in part due to the functional
and psychological picture in the consumer’s mind of Sears’ stores. This picture is called the ____ of
Sears.
a.
store location
b.
atmospherics
c.
product depth
d.
store image
e.
interior persona
196. Refer to Scenario 16.2. By locating in the Sears’ stores, Lands’ End can do all of the following, except
a.
facilitate comparison shopping.
b.
facilitate wholesale exchanges.
c.
create place utility.
d.
create time utility.
e.
facilitate consumer exchanges.
