Deck 15: B:retailing, Direct Marketing, and Wholesaling

Question 1

Sales volume of retail stores in the United States has decreased in recent years.

Answer 1

False

Question 2

Fewer enclosed regional malls have been built in recent years; developers are instead opening shopping centers that focus as much on entertainment as on shopping.

Answer 2

True

Question 3

Discount stores are distinctive in that they usually are very service-oriented.

Answer 3

False

Question 4

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

Question 5

Appliances are an example of a major product line commonly carried by discount stores.

Question 6

Warehouse clubs are able to offer a broad range of merchandise because their product lines are shallow and their sales volumes high.

Question 7

The coordination of selling efforts within a community shopping center is usually minimal.

Question 8

The primary product offered by the department stores is convenience.

Question 9

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

Question 10

Warehouse showrooms are able to sell products at low prices by passing some of their marketing functions on to consumers.

Question 11

A good location for neighborhood shopping centers is near hotels.

Question 12

Retailing is the final part of the marketing process in which exchanges are entered into for personal, family, or household purposes.

Question 13

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

Question 14

Department stores are characterized by wide product mixes.

Question 15

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

Question 16

Supermarkets specialize in selling shopping products.

Question 17

Off-price retailers seek to attract relatively affluent consumers who are price-conscious and knowledgeable about brand names.

Question 18

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

Question 19

Most department stores are shopping stores.

Question 20

Some purchasing by consumers is an end in itself¾for example, when it is done to escape boredom.

Question 21

Franchised outlets are generally less successful than independently owned businesses.

Question 22

Most factory outlet shopping centers seek to locate in prime retail, metropolitan areas.

Question 23

Store atmospherics are used to create emotional effects that enhance the probability of purchasing.

Question 24

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

Question 25

An example of a nonstore retailer is a vending machine.

Question 26

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

Question 27

Less than half of all goods are exchanged through wholesaling institutions.

Question 28

Direct-response marketing is the performance of marketing-related activities by telephone.

Question 29

Direct selling is a type of specialty retailing.

Question 30

Telemarketing is often combined with other marketing efforts.

Question 31

Within the same franchising organization, all franchisees pay the same amount for the same services.

Question 32

Factory outlet stores exist to compete with traditional retailers.

Question 33

A franchise is an arrangement in which a supplier grants dealers the right to sell products in exchange for some type of consideration.

Question 34

Direct marketing is the selling of products outside the confines of a retail facility.

Question 35

Franchisees do not pay to use the franchiser's name.

Question 36

Direct selling is the most expensive form of retailing.

Question 37

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

Question 38

A retail store usually can position its image so that it is universally acceptable to all market segments.

Question 39

The primary advantage of franchising is the complete control the franchisee has over the business.

Question 40

Wholesalers do not engage in selling to reseller, government, or institutional users.

Question 41

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

Question 42

The broker's primary function is to bring the buyer and seller together and assist in negotiating an exchange.

Question 43

Merchant wholesalers assume risks of ownership.

Question 44

Truck wholesalers are usually classified as limited-service wholesalers because they offer a limited line of products.

Question 45

Wholesalers rarely handle credit for retailers and producers.

Question 46

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

Question 47

A cash-and-carry wholesaler provides transportation, delivers products directly to customers, and places products on the retailer's shelves.

Question 48

Mail-order wholesalers are limited-function wholesalers who sell through catalogs to retailers and organizational customers.

Question 49

Limited-service wholesalers provide only some marketing services and specialize in a few functions.

Question 50

Most manufacturers' agents prefer to work for one manufacturer at a time to avoid conflicts of interest.

Question 51

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

Question 52

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

Question 53

Typical limited-service wholesalers are rack jobbers, truck wholesalers, specialty-line wholesalers, and cash-and-carry wholesalers.

Question 54

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

Question 55

Selling agents have control over the marketing efforts of manufacturers and may be used in place of a marketing department.

Question 56

General-line wholesalers are a type of full-service merchant wholesaler.

Question 57

Distribution of all goods requires wholesaling activities, whether or not a wholesaling institution is involved.

Question 58

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

Question 59

Agents represent either buyers or sellers on a temporary basis.

Question 60

The classification of wholesalers in the text is based solely on the performance of marketing activities.

Question 61

Sales offices differ from sales branches in that sales offices may offer credit, deliver goods, and give promotional assistance.