Deck 15: Retailers, wholesalers, and Direct Marketers

Question 1

Drop shippers take title to the goods but never physically handle or even see the merchandise.

Answer 1

True

Question 2

Beauty consultants at cosmetics counters in department stores often give customers makeovers.In addition to the makeup,the consultants discuss skin care products to improve skin texture so the makeup looks better.This type of interaction is called suggestive selling.

Answer 2

True

Question 3

Spiegel is a mail-order wholesaler that relies on catalogs to contact its customers.It would be considered a limited-function merchant wholesaler.

Answer 3

True

Question 4

Variety stores offer an extensive range and assortment of low-price merchandise.

Question 5

Cooperatives help independent retailers to compete with chains by providing volume buying power.

Question 6

Direct-response retailing does not include home shopping that sells merchandise through telephone orders.

Question 7

In essence,a department store is a series of limited-line and specialty stores under one roof.

Question 8

Rising in popularity during the 1990s,power centers offered value because they underpriced department stores while providing a huge selection of specialty merchandise.

Question 9

Inventory at off-price stores changes frequently as buyers take advantage of special price offers from manufacturers selling excess merchandise.

Question 10

Lifestyle centers seek to offer the intimacy and easy access of neighborhood village retailing with a fashionable cachet.

Question 11

General merchandise retailers distinguish themselves from specialty and limited-line retailers by the large number of product lines they carry.

Question 12

Catalog retailing is growing at a slower rate than brick-and-mortar retailers.
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Question 13

Sales offices located closer to the firm's customers help limit selling costs and support effective customer service.

Question 14

The main factors involved in determining a product's markup are the inventory turnover rate and the services performed by the retailer.

Question 15

If merchandise selection changes frequently to follow fashion trends,advertising is typically used to promote current styles effectively.

Question 16

Chain stores are groups of retail outlets that operate under central ownership and management and handle the same product lines.

Question 17

In the United States,cash-and-carry operations typically function as departments within regular full-service wholesale operations.

Question 18

Merchant wholesalers are a class of wholesaling intermediaries who do not take title to the goods they handle.

Question 19

Direct-mail marketing relies heavily on database technology to manage lists of names and segment them according to the objectives of the promotional campaign.

Question 20

Wholesaling intermediaries are specialists in production or manufacturing functions.

Question 21

Many consumers shop for reasons other than just purchasing needed products.

Question 22

Macy's is a retail store that focuses on fashion-oriented merchandise,backed by a complete array of customer services.It can be considered as a self-service store.

Question 23

Rack jobbers are full-function merchant wholesalers that market specialized lines of merchandise to retailers.

Question 24

Wholesaling intermediaries create utility in the form of time,place,and ownership.

Question 25

The pricing strategies seldom influence consumer perceptions of a retailer.

Question 26

The term "atmospherics" exclusively refers to the interior décor of a store.

Question 27

Marc is a wholesaling intermediary who brings buyers and sellers together,sometimes representing buyers and sometimes representing sellers,but never both in the same transaction.This information indicates that Marc is a commission merchant.

Question 28

A retailer starts to define its marketing strategy by selecting its inventory management strategy.

Question 29

Most of the specialty stores are chain outlets with large-scale operations.

Question 30

Vending machines are classified as a form of automatic merchandising.

Question 31

A full-service retailer usually sells convenience products that people can purchase without any assistance.

Question 32

Specialty retailers typically attract customers by offering the products at the lowest possible prices.

Question 33

A manufacturer's representative can work only for a single manufacturer.

Question 34

Category killers are invulnerable to competition because of the huge selections they offer in different product lines.

Question 35

Limited-line retailers cater to the needs of people who want to select from complete lines in purchasing particular products.

Question 36

O&S Ticket Brokers,a Broadway theater ticket agency,sells tickets in bulk to corporate clients.It would be considered a wholesaling intermediary even though the firm does not take title to the tickets it sells.

Question 37

A retailer's merchandising strategy guides decisions regarding the items it will offer.

Question 38

The profit potential of a market area is an important factor influencing retail stores' decisions regarding their target markets.​

Question 39

Nordstrom carefully combines defined product lines and services in an attempt to convince consumers to expend considerable effort shopping at their stores.Nordstrom can be regarded as a specialty retailer.

Question 40

Other things being equal,stores that offer more services charge smaller markups to cover their costs.

Question 41

A cash-and-carry wholesaler performs most wholesaling functions including financing and delivery.

Question 42

Convenience retail stores attract consumers by providing easy access,extended store hours,and adequate parking facilities.

Question 43

Markups are determined partly on the basis of marketers' judgments of the amounts that consumers will pay for a product.

Question 44

Category killers are a type of limited-line retailer that offer huge selections and low prices in single product lines.

Question 45

Retail convergence results in blurring of distinctions between types of retailers and the merchandise mix they offer.

Question 46

Through direct selling,manufacturers completely bypass retailers and wholesalers and set up their own channels to sell their products directly to consumers.

Question 47

While implementing the strategy of category management,a category manager oversees an entire product line and is responsible for the profitability of the product group.

Question 48

Chain stores usually obtain merchandise at lower prices from manufacturers compared to their independent rivals.

Question 49

Wholesaling intermediaries tend to reduce the number of transactions between buyers and sellers.

Question 50

Selling up is a retailing practice in which salespeople try to persuade customers to buy higher-priced items than originally intended.

Question 51

One of the main objectives of the interior décor of a store is to induce shoppers to buy.

Question 52

A selling agent is an ideal marketing channel for weakly financed,production-oriented firms.

Question 53

Specialty stores typically carry convenience and shopping goods.

Question 54

Truck wholesalers make regular deliveries to retailers and perform collection and promotion functions.

Question 55

Other things being equal,stores with a higher inventory turnover rate can cover their costs and earn a profit while charging a smaller markup.

Question 56

In the case of convenience stores,customers usually compare prices,assortments,and quality levels at competing outlets before making purchase decisions.

Question 57

The wheel of retailing attempts to explain the patterns of change in retailing.

Question 58

Compared to mail-order wholesalers,truck wholesalers tend to provide fewer services and set lower prices because they incur lower operating costs.

Question 59

Salespeople involved in suggestive selling try to help customers recognize true needs rather than unwanted merchandise.

Question 60

A trade fair is a periodic show at which manufacturers in a particular industry display their wares for visiting retail and wholesale buyers.

Question 61

Manufacturer-owned facilities are beneficial when products are perishable and need rigid control of distribution to avoid spoilage.

Question 62

Retailers practice scrambled merchandising to boost sales volume.

Question 63

Traditional brick-and-mortar stores such as Macy's have recently closed stores due to the growing trend of Internet shopping and changing consumer behavior who visit malls on a less frequent basis.​

Question 64

A discount house offers fewer services to its customers.

Question 65

Retail outlets are the contact points between the channel members and ultimate consumers.

Question 66

A local food store can be regarded as a convenience retailer.

Question 67

Agents and brokers perform wholesaling activities without taking title to the goods.

Question 68

The retail stores in a planned shopping center maintain uniform hours of operation,including evening and weekend hours.

Question 69

Markup can be expressed as a percentage of the total cost of the product or the selling price.

Question 70

Retailers must consider the overall profitability of each product line and product category to develop a successful merchandise mix.

Question 71

Both vendors and retailers use the strategy of category management.

Question 72

A neighborhood shopping center consists of large stores featuring shopping goods,professional offices,a branch bank,and also a movie theatre or a supermarket.

Question 73

The response rates for direct-mail marketing are measurable and higher compared to other types of advertising.

Question 74

Mass merchandisers usually provide the same depth of assortment as a department store within each product line.

Question 75

Internet-based retailers usually maintain little or no inventory and order directly from vendors to fill customer orders received via their websites.

Question 76

A supercenter is usually larger than a hypermarket.

Question 77

Sales offices carry inventory and process orders for customers from available stock.

Question 78

Telemarketing is the most frequently used form of direct marketing and provides high returns to the marketers on their expenditures.

Question 79

Infomercials are a form of telemarketing.

Question 80

The level of competition for business in the market is an important criteria considered by retailers while selecting the target market.