Deck 13: Marketing Channels

Question 1

Direct selling, direct marketing, and vending machines are all examples of _______

A) producing.
B) advertising.
C) promoting.
D) retailing.
E) wholesaling.

Answer 1

D

Question 2

Which type of franchising is most popular in the soft-drink industry?

A) The manufacturer authorises a number of retail stores to sell a certain brand name item.
B) Several manufacturers authorise one retail chain to sell a variety of brand name items.
C) A franchiser supplies techniques, brand names, or other services besides complete products.
D) A manufacturer licences distributors to sell a given product to retailers.
E) A distributor provides a brand name product and marketing assistance to one retailer.

Answer 2

D

Question 3

The primary function of most wholesalers is to:

A) support the needs of the manufacturers and provide them with market information.
B) provide for the unique needs of the individual retailers buying their merchandise.
C) provide information system tracking of inventory for the ultimate consumer.
D) perform physical distribution of products from manufacturers to retailers.
E) develop and share database information about customers.

Answer 3

D

Question 4

A merchant wholesaler:

A) arranges for transfer of goods directly to business and retail customers.
B) takes title to goods, assumes risk associated with ownership, and buys and resells products.
C) takes title and possession of goods and sells only to retailers.
D) does not take title or possession of goods but facilitates exchanges between any parties.
E) deals exclusively with business products.

Question 5

Merchant wholesalers can be divided into two basic categories:

A) general merchandise and general-line.
B) rack jobbers and cash-and-carry.
C) commission and fee-based.
D) goods and services.
E) full-service and limited service.

Question 6

Select the true statement about wholesaling.

A) Wholesaling activities must be performed during distribution of all goods, whether or not a wholesaling institution is involved.
B) Warehouses are necessary in order for the wholesaling function to be completed.
C) Only wholesaling establishments can perform wholesaling activities.
D) Wholesaling is an inefficient process that should be eliminated from the marketing channel.
E) The biggest problem with the wholesaling process is that inefficient wholesalers can thrive, at the expense of consumers.

Question 7

A retailer is an organisation that purchases products for the purpose of reselling them to:

A) other retail organisations.
B) the government.
C) ultimate consumers.
D) wholesalers.
E) nonprofit organisations.

Question 8

Location is important to a retailer because:

A) suppliers charge more to service stores in certain trading areas.
B) a desirable location appeals to consumers' emotions.
C) location is the major determinant of store image.
D) location determines the trading area from which the store must draw its customers.
E) convenient location is an essential customer service element.

Question 9

What is a potential disadvantage of direct selling?

A) Commissions for salespeople are usually low.
B) Some customers view direct selling in a negative light.
C) Personal attention is lacking.
D) Product demonstrations are difficult in this type of selling.
E) Consumers must go out of their way.

Question 10

With respect to stock, wholesalers can help retailers with all of the following except:

A)selection.
B)storage.
C)inventory control.
D)transportation.
E)production.

Question 11

What type of retailers are the primary competitors for specialty retailers?

A) Discount stores
B) Category killers
C) Catalog marketers
D) Department stores
E) Superstores

Question 12

Wholesalers frequently help retailers with developing a marketing strategy, especially as it relates to the ____ component of the marketing mix.

A) Distribution
B) Promotion
C) Product
D) Price
E) channel

Question 13

Exterior and interior characteristics such as layout, displays, color, and lighting are all elements of a store's:

A) services.
B) atmospherics.
C) location.
D) environment.
E) decor.

Question 14

Which of the following best describes wholesalers?

A) Organisations that buy products from producers and sell them to retailers.
B) Individuals or organisations that purchase products and then resell them to other businesses and consumers.
C) Organisations or individuals who buy products for resale to government, reseller, producer, and institutional users.
D) Organisations or entities that buy products from government, reseller, and producer users and sell them to customers in bulk.
E) Companies that make products that have a general appeal and are resold to retailers for a profit.

Question 15

A wholesaler that carries a wide product mix but offers only limited depth within product lines is called a:

A) specialty-line wholesaler.
B) limited-service wholesaler.
C) rack jobber.
D) general merchandise wholesaler.
E) general-line wholesaler.

Question 16

By buying in large quantities and delivering to customers in smaller lots, a wholesaler may perform all of the following physical distribution activities except:

A) inventory planning.
B) transportation.
C) materials handling.
D) unit pricing.
E) communication.

Question 17

Wholesaling can be defined as:

A) transactions in which products are bought for resale.
B) transactions made at a discount.
C) sales made to retailers only.
D) transactions in which purchases are for production of other goods only.
E) marketing activities necessary to conduct exchanges with consumers.

Question 18

What is the primary distinction between superstores and hypermarkets?

A) Superstores offer a wider variety of products than hypermarkets.
B) Superstores offer low prices while hypermarkets have moderate to high prices.
C) Hypermarkets have fewer departments but deeper product lines than superstores.
D) Hypermarkets are larger and have more types of products than superstores.
E) These two types of retailers carry very different types of products.

Question 19

Any organisation that purchases products for the purpose of reselling them to ultimate consumers is a(n):

A) wholesaler.
B) shopping centre.
C) retailer.
D) intermediary.
E) producer.

Question 20

Category killers compete primarily on the basis of:

A) enormous product selection and sales expertise.
B) low prices and enormous product availability.
C) convenient locations and customer services.
D) rock-bottom prices and moderate selections.
E) one-stop shopping and product availability.

Question 21

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

Question 22

Cash-and-carry wholesalers draw most of their customers from large retailers and industrial firms.

Question 23

Retailing includes all transactions in which the buyer intends to consume the product through personal, family, or household use.

Question 24

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.

Question 25

Merchant wholesalers who specialise 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.

Question 26

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.

Question 27

Full-service merchant wholesalers are either general merchandise wholesalers or specialty-line wholesalers.

Question 28

Manufacturers' agents offer products that are both:

A)noncompeting and complementary.
B)competing and specialised.
C)unrelated and noncompeting.
D)complementary and competing.
E)unrelated and competing.

Question 29

Most department stores are shopping stores.

Question 30

The use of wholesalers permits producers to concentrate on developing and manufacturing products that match consumers' wants.

Question 31

Wholesaling involves all transactions in which products are bought for resale, for use in making other products, or for general business operations.

Question 32

General merchandise wholesalers are full-service merchant wholesalers who carry only a few product lines.

Question 33

Agents and brokers perform more functions than limited-service wholesalers.

Question 34

Agents represent either buyers or sellers on a temporary basis.

Question 35

Wholesalers perform marketing functions only for the retailers below them in the channel of distribution.

Question 36

New store formats and technological advances are making the retail environment highly dynamic and competitive.

Question 37

Commission merchants tend to have relatively broad powers concerning prices and terms of sales.

Question 38

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.

Question 39

By buying in large quantities and delivering to customers in smaller lots, a wholesaler may perform physical distribution activities more efficiently than a producer.

Question 40

Retailers form an important link in the marketing channel because they are both marketers and customers.

Question 41

Exterior atmospheric elements include the appearance of the storefront, display windows, store entrance, and amount of traffic congestion.

Question 42

A good location for neighbourhood shopping centres is near hotels.

Question 43

Specialty retailing is a form of selling by description in that buyers usually do not see the actual product until it arrives.

Question 44

Specialty retailers carry a broad product mix with deep product lines.

Question 45

A manufacturer-owned operation that provides services usually associated with agents is a public warehouse.

Question 46

An agent that receives goods on consignment from local sellers and negotiates sales in large, central markets is called a commission merchant.

Question 47

Selling agents perform every wholesaling activity except taking title to products.

Question 48

Supply chain management combines two or more stages of the marketing channel under one management.

Question 49

Intermediaries owned by manufacturers that sell products and provide support services to the manufacturers' sales forces are known as sales offices.

Question 50

Supermarkets specialise in selling shopping products.

Question 51

Intermediaries are marketing institutions, such as retailers and wholesalers, which perform marketing functions necessary to direct products to customers.