Question 1

Which term best describes Ace Hardware?

Accepted Answer

A)  wholesaler co-op 
B)  holding company 
C)  retailer co-op 
D)  distributor 
E)  consortium 
A)  wholesaler co-op 
B)  holding company 
C)  retailer co-op 
D)  distributor 
E)  consortium C

Question 2

What is a master distributor? What functions do master distributors perform?

Accepted Answer

A master distributor is a sort of super wholesaler.Master distributors consolidate orders from all their manufacturers,so their customers avoid minimum order requirements established by the manufacturer.Individual distributors can buy a variety of products from a multitude of vendors,but still enjoy the quantity discount and lower transportation costs obtained by the master distributor.Master distributors' roles sometimes mirror those of a franchisor.They help their customers (i.e.,other distributors)improve their business processes,demonstrate best practices,and shoulder some of their channel functions,such as advertising and holding inventory.Essentially,master distributors give distributors economies of scope and scale and help them resolve their logistic and support problems.

Question 3

According to the text,why will most wholesalers never be truly global?

Accepted Answer

A)  Increasing trade barriers discourage wholesalers from globalizing. 
B)  Cross-border shipping costs for wholesalers are expected to rise. 
C)  Wholesaling involves meeting the varied needs of local markets. 
D)  Global wholesaling channels are too standardized to be profitable. 
E)  Wholesaler consolidation prevents manufacturers from outsourcing. 
A)  Increasing trade barriers discourage wholesalers from globalizing. 
B)  Cross-border shipping costs for wholesalers are expected to rise. 
C)  Wholesaling involves meeting the varied needs of local markets. 
D)  Global wholesaling channels are too standardized to be profitable. 
E)  Wholesaler consolidation prevents manufacturers from outsourcing. C

Question 4

A wholesaling operation that is owned and run by a manufacturer and that performs selling and marketing functions is best known as a(n)________.

Accepted Answer

A)  retailer 
B)  service broker 
C)  master distributor 
D)  supply chain manager 
E)  manufacturers' sales branch 
A)  retailer 
B)  service broker 
C)  master distributor 
D)  supply chain manager 
E)  manufacturers' sales branch

Question 5

Which statement about power retailers is most likely FALSE?

Accepted Answer

A)  Power retailers usually buy in large quantities in select product categories. 
B)  Power retailers usually adopt a buy direct approach due to purchasing volume. 
C)  Power retailers typically rely heavily on small, regional wholesaler-distributors. 
D)  Power retailers tend to reduce channel costs by creating in-house distribution systems. 
E)  Power retailers in Europe, Japan, and the U.S. are bypassing independent wholesaler-distributors 
A)  Power retailers usually buy in large quantities in select product categories. 
B)  Power retailers usually adopt a buy direct approach due to purchasing volume. 
C)  Power retailers typically rely heavily on small, regional wholesaler-distributors. 
D)  Power retailers tend to reduce channel costs by creating in-house distribution systems. 
E)  Power retailers in Europe, Japan, and the U.S. are bypassing independent wholesaler-distributors

Question 6

What have been the causes and effects of consolidation in the wholesale sector?

Accepted Answer

The wholesale sector has been subject to

Question 7

An ABC analysis is most likely used by wholesalers to ________.

Accepted Answer

A)  strengthen a business portfolio with key customers 
B)  compare outsourcing with vertical integration 
C)  estimate the service costs of customers 
D)  separate product and service costs 
E)  measure direct selling effects 
A)  strengthen a business portfolio with key customers 
B)  compare outsourcing with vertical integration 
C)  estimate the service costs of customers 
D)  separate product and service costs 
E)  measure direct selling effects

Question 8

Unlike wholesaler voluntary groups,retailer-sponsored cooperatives require members to ________.

Accepted Answer

A)  conduct a certain amount of business with the co-op 
B)  adhere to co-op procedures and policies 
C)  elect a member as co-op chair 
D)  buy shares in the co-op 
E)  form a co-op board 
A)  conduct a certain amount of business with the co-op 
B)  adhere to co-op procedures and policies 
C)  elect a member as co-op chair 
D)  buy shares in the co-op 
E)  form a co-op board

Question 9

Collaborative filtering software enables wholesalers to use customer information to identify and suggest appropriate products for prospects.

Accepted Answer

A) True 
 B)False

Question 10

Which term refers to the strategic coordination of traditional business functions systematically across the channel,with the goal of enhancing long-term performance for the channel overall?

Accepted Answer

A)  value chain analysis 
B)  channel consolidation 
C)  supply chain management 
D)  service output concentration 
E)  master distribution management 
A)  value chain analysis 
B)  channel consolidation 
C)  supply chain management 
D)  service output concentration 
E)  master distribution management

Question 11

Agents,brokers,and commission agents buy or sell products,earn commissions or fees,and take ownership of the products they represent.

Accepted Answer

A) True 
 B)False

Question 12

Buyers attracted to online reverse auctions most likely want to ________.

Accepted Answer

A)  analyze a product's lifetime cost of ownership 
B)  form relationships with major wholesalers 
C)  evaluate overall procurement costs 
D)  focus on low product prices 
E)  eliminate buying risks 
A)  analyze a product's lifetime cost of ownership 
B)  form relationships with major wholesalers 
C)  evaluate overall procurement costs 
D)  focus on low product prices 
E)  eliminate buying risks

Question 13

A wholesaler adds value by performing all of the following channel functions EXCEPT ________.

Accepted Answer

A)  promoting products to prospects 
B)  granting credit to suppliers 
C)  manufacturing new products 
D)  processing orders and payments 
E)  negotiating transactions 
A)  promoting products to prospects 
B)  granting credit to suppliers 
C)  manufacturing new products 
D)  processing orders and payments 
E)  negotiating transactions

Question 14

What is a key reason for the fast pace of wholesaler consolidation in the U.S.?

Accepted Answer

A)  improvements in information technology 
B)  shifts in channel power and sources 
C)  increased use of master distributors 
D)  growth of consumer co-ops 
E)  opportunities to globalize 
A)  improvements in information technology 
B)  shifts in channel power and sources 
C)  increased use of master distributors 
D)  growth of consumer co-ops 
E)  opportunities to globalize

Question 15

Which of the following best defines the term picking?

Accepted Answer

A)  taking items from shelves that are needed by customers and assembling the items for shipment 
B)  identifying the most efficient method to collect, assemble, and ship products to global customers 
C)  maintaining ownership and title to products until another distributor purchases them 
D)  selecting a master distributor to oversee the logistics and shipment of products 
E)  choosing the most important service outputs for a particular channel 
A)  taking items from shelves that are needed by customers and assembling the items for shipment 
B)  identifying the most efficient method to collect, assemble, and ship products to global customers 
C)  maintaining ownership and title to products until another distributor purchases them 
D)  selecting a master distributor to oversee the logistics and shipment of products 
E)  choosing the most important service outputs for a particular channel

Question 16

Cooperatives are increasingly popular among small and medium-sized Japanese wholesalers that want to gain economies of scale and compete more effectively with large wholesalers.

Accepted Answer

A) True 
 B)False

Question 17

Carmen,a manager at Dixon Manufacturing,is seeking an export intermediary to improve Dixon's success in foreign markets.Carmen has interviewed managers at multiple export trading companies and noted the key characteristics of each firm.Which export trading company should Carmen most likely select?

Accepted Answer

A)  Alpha Exporting is a large firm with hundreds of employees. 
B)  Beta Exporting employees are either multilingual or foreign born. 
C)  Calvin Exporting has strong local connections and community ties. 
D)  Davis Exporting managers are new to the industry and eager to gain business. 
E)  Ellison Exporting is employed by manufacturers in the same industry as Dixon. 
A)  Alpha Exporting is a large firm with hundreds of employees. 
B)  Beta Exporting employees are either multilingual or foreign born. 
C)  Calvin Exporting has strong local connections and community ties. 
D)  Davis Exporting managers are new to the industry and eager to gain business. 
E)  Ellison Exporting is employed by manufacturers in the same industry as Dixon.

Question 18

Wholesalers are business establishments that sell products primarily to end-users but also to other businesses.

Accepted Answer

A) True 
 B)False

Question 19

An independent firm located in the exporter's country that performs channel functions for multiple manufacturers in noncompeting product categories is most likely a(n)________.

Accepted Answer

A)  licensed exporter 
B)  export franchisor 
C)  wholesale agency 
D)  master-distributor 
E)  export trading company 
A)  licensed exporter 
B)  export franchisor 
C)  wholesale agency 
D)  master-distributor 
E)  export trading company

Question 20

Consortiums,such as Intercore Resources,help distributors to ________.

Accepted Answer

A)  analyze service outputs 
B)  evaluate master distributors 
C)  address vertical integration issues 
D)  provide better service to customers 
E)  profit from storing unwanted inventory 
A)  analyze service outputs 
B)  evaluate master distributors 
C)  address vertical integration issues 
D)  provide better service to customers 
E)  profit from storing unwanted inventory

Which term best describes Ace Hardware?

What is a master distributor? What functions do master distributors perform?

According to the text,why will most wholesalers never be truly global?

A wholesaling operation that is owned and run by a manufacturer and that performs selling and marketing functions is best known as a(n)________.

Which statement about power retailers is most likely FALSE?

What have been the causes and effects of consolidation in the wholesale sector?

An ABC analysis is most likely used by wholesalers to ________.

Unlike wholesaler voluntary groups,retailer-sponsored cooperatives require members to ________.

Collaborative filtering software enables wholesalers to use customer information to identify and suggest appropriate products for prospects.

Which term refers to the strategic coordination of traditional business functions systematically across the channel,with the goal of enhancing long-term performance for the channel overall?

Agents,brokers,and commission agents buy or sell products,earn commissions or fees,and take ownership of the products they represent.

Buyers attracted to online reverse auctions most likely want to ________.

A wholesaler adds value by performing all of the following channel functions EXCEPT ________.

What is a key reason for the fast pace of wholesaler consolidation in the U.S.?

Which of the following best defines the term picking?

Cooperatives are increasingly popular among small and medium-sized Japanese wholesalers that want to gain economies of scale and compete more effectively with large wholesalers.

Carmen,a manager at Dixon Manufacturing,is seeking an export intermediary to improve Dixon's success in foreign markets.Carmen has interviewed managers at multiple export trading companies and noted the key characteristics of each firm.Which export trading company should Carmen most likely select?

Wholesalers are business establishments that sell products primarily to end-users but also to other businesses.

An independent firm located in the exporter's country that performs channel functions for multiple manufacturers in noncompeting product categories is most likely a(n)________.

Consortiums,such as Intercore Resources,help distributors to ________.

Understanding Channel Strategies

End-User Analysis: Segmenting and Targeting

Channel Analysis: Auditing Marketing Channels

Make Versus Buy Channel Analysis

Designing Channel Structures and Strategies

Retailing Structures and Strategies

Franchising Structures and Strategies

Emerging Channel Structures and Strategies

Managing Channel Power

Managing Channel Conflict

Managing Channel Relationships

Managing Channel Policies and Legalities

Managing Channel Logistics

Filters

Exam 7: Wholesaling Structures and Strategies

Which term best describes Ace Hardware?

What is a master distributor? What functions do master distributors perform?

According to the text,why will most wholesalers never be truly global?

A wholesaling operation that is owned and run by a manufacturer and that performs selling and marketing functions is best known as a(n)________.

Which statement about power retailers is most likely FALSE?

What have been the causes and effects of consolidation in the wholesale sector?

An ABC analysis is most likely used by wholesalers to ________.

Unlike wholesaler voluntary groups,retailer-sponsored cooperatives require members to ________.

Collaborative filtering software enables wholesalers to use customer information to identify and suggest appropriate products for prospects.

Which term refers to the strategic coordination of traditional business functions systematically across the channel,with the goal of enhancing long-term performance for the channel overall?

Agents,brokers,and commission agents buy or sell products,earn commissions or fees,and take ownership of the products they represent.

Buyers attracted to online reverse auctions most likely want to ________.

A wholesaler adds value by performing all of the following channel functions EXCEPT ________.

What is a key reason for the fast pace of wholesaler consolidation in the U.S.?

Which of the following best defines the term picking?

Cooperatives are increasingly popular among small and medium-sized Japanese wholesalers that want to gain economies of scale and compete more effectively with large wholesalers.

Carmen,a manager at Dixon Manufacturing,is seeking an export intermediary to improve Dixon's success in foreign markets.Carmen has interviewed managers at multiple export trading companies and noted the key characteristics of each firm.Which export trading company should Carmen most likely select?

Wholesalers are business establishments that sell products primarily to end-users but also to other businesses.

An independent firm located in the exporter's country that performs channel functions for multiple manufacturers in noncompeting product categories is most likely a(n)________.

Consortiums,such as Intercore Resources,help distributors to ________.

Understanding Channel Strategies

End-User Analysis: Segmenting and Targeting

Channel Analysis: Auditing Marketing Channels

Make Versus Buy Channel Analysis

Designing Channel Structures and Strategies

Retailing Structures and Strategies

Franchising Structures and Strategies

Emerging Channel Structures and Strategies

Managing Channel Power

Managing Channel Conflict

Managing Channel Relationships

Managing Channel Policies and Legalities

Managing Channel Logistics

Filters