Exam 13: Retailers,wholesalers,and Their Strategy Planning

"Cooperative chains" like True Value Hardware are retailer-sponsored groups formed by independent retailers to run their own buying organizations.

"Merchant wholesalers"--who take title to the products they sell--are the most common type of wholesaling establishment.

A retailer's "Promotion" may include:

Which of the following wholesalers would be most helpful to a small manufacturer of computer components who wants to obtain distribution in several major markets and still retain control of the marketing of its products?

Department stores:

Debbie Wood sells food products to grocery wholesalers and large supermarket chains in Tallahassee. She sells for several manufacturers with noncompeting lines of food products--earning a 5 percent sales commission. She neither handles nor owns the products she sells. Debbie is a:

Agents and brokers are wholesalers that take title to the merchandise and products that they sell.

Which of the following is a limited-function merchant wholesaler?

Auction companies:

The major function of auction companies is to:

Will Bishop sells a wide assortment (in small quantities) of "emergency" home repair items (fuses, electrical tape, small packets of nails) to grocery and convenience stores. He owns the products he handles, and displays them for his customers. Bishop is a:

Use this information for questions that refer to the Centerville Retailers and Wholesalers case. Carol Lamb has lived in Centerville all her life. She owns a retail store that sells hobby and craft supplies. She bought the store after working there for 7 years. Carol has just been asked to head up the Retailers and Wholesaler Group of the Centerville Chamber of Commerce. The most active chamber members in her group are described below: Walden's Leather is part of a regional chain of stores that sells leather goods - mostly men's and women's clothing - with the upscale Walden's brand name. Walden's primarily relies on its own stores where knowledgeable salespeople offer great service. Walden products are also sold, on a limited basis, in some fine department stores. Publisher's Helper is a small business started by Audrey Yang that provides and stocks display racks for paperback books and magazines. Most retailers welcome the service Audrey provides, in part because she does her own research to determine which paperback books and magazines sell best in Centerville. Cuzco's is Centerville's alternative to Wal-Mart. The store sells a wide variety of merchandise. The company used to concentrate its product mix on small appliances - but now Cuzco's carries any product that it can sell profitably. Its low prices stimulate faster turnovers and higher sales volumes. Games Unlimited sells video games. Jamie Carraway, who owns the local store, signed a contract with Games Unlimited and follows strict rules covering her store's operations and the Games Unlimited marketing strategy. She pays that company a fee for promotion it provides as well as commissions on her sales. Johnson's Health and Beauty Supplies sells cosmetics and other health and beauty products to retailers and salons throughout the greater Centerville area. It owns the goods it sells to these retailer customers, and it provides all the wholesaling functions they need. Valu Grocer is an independent grocery store that belongs to an organization sponsored by a large food wholesaler. The fifty stores grocery stores that share the Valu Grocer name are linked by contracts that include basic operating procedures, storefront designs, and joint promotion efforts. Reddy and Sons sells equipment for several different manufacturers of plastic molding in the Centerville area. It earns a commission from each manufacturer on the products it sells for that manufacturer, but it does not take ownership of the equipment it sells nor does it install the equipment. Katrina's Salon started out as a low-status, low-price, low-margin hair salon 15 years ago. After some success, the company moved into a nicer storefront, raised prices, and now operates in the middle of the market. -Which of these businesses has followed the wheel of retailing theory?

Retailers who carry any product line that will sell profitably are practicing "scrambled merchandising."

Only about 11 percent of retail stores in the U.S. have annual average sales of $5 million or more.

Which of the following statements about convenience stores is False?

Large self-service retail stores that emphasize lower margins to get faster turnover--especially on "soft goods"--are called:

Supercenters are also known as

Regarding types of wholesalers, which of the following has the HIGHEST operating expenses as a percent of sales?

General-line wholesalers are wholesalers that

Which of the following wholesalers own (take title to) the products they sell?