Question 1

Why would a producer use wholesalers rather than sell directly to retailers or consumers?

Accepted Answer

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Question 2

How do merchant wholesalers and agents/brokers differ?

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Question 3

Explain how wholesalers have been able to use technology to cut costs.

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Question 4

Like retailers, wholesalers must decide on product and service assortments, prices, promotion, and place.

Accepted Answer

This statement is true. Wholesalers are intermediaries between manufacturers and retailers, and they have to make similar business decisions as retailers, such as determining what products and services to offer, pricing strategies, promotional activities, and where to position themselves in the market.

Question 5

Explain the marketing decisions faced by wholesalers.

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Question 6

In an automated warehouse, orders are fed directly from the retailer's information system to the wholesaler's, and the items are picked up by mechanical devices and taken to a shipping platform where they are assembled.

Accepted Answer

This statement accurately describes the process of an automated warehouse where orders are transferred electronically and items are picked up by machines.

Question 7

How can wholesalers improve their use of promotions?

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Question 8

Wholesalers realize that they increase value to their customers by watching for better ways to meet the needs of their suppliers and target customers. This involves reducing the services they provide to retailers.

Accepted Answer

This statement is false. Wholesalers increase value to their customers by providing better services to retailers, not by reducing services. They focus on improving efficiency, offering competitive prices, providing reliable delivery, and offering a wide range of products. By doing so, wholesalers can help retailers meet the needs of their customers and increase their own profitability.

Quiz 13: Retailing and Wholesaling