Question 1

Amazon and Zappos use technology to create a personal shopping experience over the Internet. This is an example of online retailing.

Accepted Answer

The statement is true. Amazon and Zappos use personalized recommendation algorithms and user profiles to enhance the online shopping experience for their customers.

Question 2

Best Buy, PetSmart, and Staples offer a huge variety of one type of product. These companies are examples of outlet stores.

Accepted Answer

Best Buy, PetSmart and Staples are not outlet stores. They are specialty retailers offering a variety of products within their respective categories. Outlet stores typically sell discounted merchandise from a specific brand or manufacturer.

Question 3

Category killers dominate their category by offering a huge variety of one type of product.

Accepted Answer

Category killers specialize in dominating a specific category by offering a large and diverse selection of products within that category, which sets them apart from their competitors.

Question 4

The specific categories of limited­service wholesalers include drop shippers, cash and carry wholesalers, and truck jobbers.

Accepted Answer

This statement is true. The three specific categories of limited-service wholesalers are drop shippers, cash and carry wholesalers, and truck jobbers.

Question 5

Intensive distribution, selective distribution, and exclusive distribution are the three key strategic distribution strategies that retailers use.

Accepted Answer

This statement is true. Intensive distribution involves making a product available in as many retail outlets as possible, selective distribution involves limiting the number of retail outlets that carry a product and choosing outlets based on certain criteria, and exclusive distribution involves granting exclusive rights to a single retailer or group of retailers to carry a product. These are the three main types of distribution strategies that retailers use.

Question 6

Ben Arrington is an agent. This means that he assumes a significant risk of loss because he takes legal title to the products he helps distribute.

Accepted Answer

The statement is incorrect. As an agent, Ben Arrington does not take legal title to the products he helps distribute. He acts as a representative of the company or seller that owns the products. Therefore, he does not assume a significant risk of loss.

Question 7

Firms that produce items for which customers are not willing to make special trips or travel long distances to buy, normally use an intensive distribution strategy.

Accepted Answer

Intensive distribution strategy involves making the product easily available to customers by placing it in as many outlets as possible, including convenience stores and supermarkets. This is suitable for products that customers purchase frequently and do not normally travel far to buy, such as daily-use items like toothpaste or snacks.

Question 8

McDonald's placement of stores in Walmart, gas stations, and hospitals is an example of exclusive distribution.

Accepted Answer

Exclusive distribution refers to limiting the availability of a product to a single retailer or a very limited number of outlets, whereas McDonald's placement in various locations like Walmart, gas stations, and hospitals is an example of selective or intensive distribution, aiming for widespread availability.

Question 9

Agents and brokers are the most common types of merchant wholesalers.

Accepted Answer

Agents and brokers are not merchant wholesalers; they facilitate sales between buyers and sellers without taking ownership of the goods. Merchant wholesalers, on the other hand, take title to the goods they sell.

Question 10

Convenience stores offer a wide variety of merchandise and superior service at multiple locations.

Accepted Answer

Convenience stores typically offer a limited selection of merchandise focused on quick, easy purchases and may not always provide superior service compared to other retail formats.

Question 11

The wheel of retailing helps explain the evolution of firms that enter a market on a shoestring budget and gain customers by offering lower prices. It suggests that once a customer base is established, the retailer begins offering higher­end products, more upscale facilities, and better service.

Accepted Answer

The wheel of retailing theory suggests that low-cost retailers initially enter the market with basic facilities and low prices to attract customers. As they establish a customer base, they start offering higher-quality products, more upscale facilities, and better service, leading to an increase in prices. Therefore, the statement is true.

Question 12

Truck jobbers are limited­service merchant wholesalers whose responsibilities include checking the stock, suggesting reorder quantities, and removing out­ of­date goods.

Accepted Answer

Truck jobbers are limited-service merchant wholesalers and their responsibilities include checking stock, suggesting reorder quantities, and removing out-of-date goods.

Question 13

Outlet stores are owned by producers which sell directly to final customers, and may offer discontinued or flawed goods.

Accepted Answer

Outlet stores are owned by producers and may offer discontinued or flawed goods at a discounted price, making them a popular choice for shoppers looking for deals.

Question 14

One of the drawbacks of online retailing is the lack of security on the Web for financial transactions.

Accepted Answer

Online retailing involves the exchange of sensitive financial information such as credit card details, which makes it vulnerable to cyber attacks and fraud. Despite the use of secure encryption technologies, online transactions can still be hacked or compromised by cybercriminals, leading to financial losses for consumers and businesses. Hence, the lack of security on the Web for financial transactions is a major drawback of online retailing.

Question 15

Angelica sells a line of designer handbags. She is planning to open a series of shops to sell her products. Each shop will be in a different area of the state. This type of distribution is known as exclusive distribution.

Accepted Answer

Exclusive distribution means limiting the distribution of a product or service to only one outlet in a specific geographic area. In this case, Angelica plans to open one shop in each area, making it exclusive distribution.

Question 16

Firms producing high­end goods with a customer base that actively seeks out their products­such as expensive luxury automobiles, jewelry, and watches­ rely on a selective distribution method.

Accepted Answer

The answer of Firms producing high­end goods with a customer...

Question 17

Mstraanteyg my.edium­priced and high­priced products use a selective distribution

Accepted Answer

Selective distribution involves the selective distribution of products through limited channels to maintain their perceived high value and exclusivity. This strategy is often used for medium-priced and high-priced products.

Question 18

A small convenience store Cream Flake is too small to merit in­person sales service. For this reason, Cream Flake must rely on truck jobbers to service their store.

Accepted Answer

The answer of A small convenience store Cream Flake is...

Question 19

A selective distribution strategy involves establishing a single retailer as the sole provider of a product in a given area.

Accepted Answer

A selective distribution strategy involves limiting the number of retailers authorized to sell a product in a given area, but not necessarily establishing a single retailer as the sole provider.

Question 20

Victoria's Secret and AutoZone are examples of specialty stores.

Accepted Answer

Specialty stores are retail stores that specialize in selling a specific type of product, such as lingerie (Victoria's Secret) or auto parts (AutoZone).

Quiz 13: Distribution and Pricing: Right Product, Right Person, Right Place, Right Price

Amazon and Zappos use technology to create a personal shopping experience over the Internet. This is an example of online retailing.

Best Buy, PetSmart, and Staples offer a huge variety of one type of product. These companies are examples of outlet stores.

Category killers dominate their category by offering a huge variety of one type of product.

The specific categories of limitedservice wholesalers include drop shippers, cash and carry wholesalers, and truck jobbers.

Intensive distribution, selective distribution, and exclusive distribution are the three key strategic distribution strategies that retailers use.

Ben Arrington is an agent. This means that he assumes a significant risk of loss because he takes legal title to the products he helps distribute.

Firms that produce items for which customers are not willing to make special trips or travel long distances to buy, normally use an intensive distribution strategy.

McDonald's placement of stores in Walmart, gas stations, and hospitals is an example of exclusive distribution.

Agents and brokers are the most common types of merchant wholesalers.

Convenience stores offer a wide variety of merchandise and superior service at multiple locations.

The wheel of retailing helps explain the evolution of firms that enter a market on a shoestring budget and gain customers by offering lower prices. It suggests that once a customer base is established, the retailer begins offering higherend products, more upscale facilities, and better service.

Truck jobbers are limitedservice merchant wholesalers whose responsibilities include checking the stock, suggesting reorder quantities, and removing out ofdate goods.

Outlet stores are owned by producers which sell directly to final customers, and may offer discontinued or flawed goods.

One of the drawbacks of online retailing is the lack of security on the Web for financial transactions.

Angelica sells a line of designer handbags. She is planning to open a series of shops to sell her products. Each shop will be in a different area of the state. This type of distribution is known as exclusive distribution.

Firms producing highend goods with a customer base that actively seeks out their productssuch as expensive luxury automobiles, jewelry, and watches rely on a selective distribution method.

Mstraanteyg my.ediumpriced and highpriced products use a selective distribution

A small convenience store Cream Flake is too small to merit inperson sales service. For this reason, Cream Flake must rely on truck jobbers to service their store.

A selective distribution strategy involves establishing a single retailer as the sole provider of a product in a given area.

Victoria's Secret and AutoZone are examples of specialty stores.

Quiz 13: Distribution and Pricing: Right Product, Right Person, Right Place, Right Price

Amazon and Zappos use technology to create a personal shopping experience over the Internet. This is an example of online retailing.

Best Buy, PetSmart, and Staples offer a huge variety of one type of product. These companies are examples of outlet stores.

Category killers dominate their category by offering a huge variety of one type of product.

The specific categories of limited­service wholesalers include drop shippers, cash and carry wholesalers, and truck jobbers.

Intensive distribution, selective distribution, and exclusive distribution are the three key strategic distribution strategies that retailers use.

Ben Arrington is an agent. This means that he assumes a significant risk of loss because he takes legal title to the products he helps distribute.

Firms that produce items for which customers are not willing to make special trips or travel long distances to buy, normally use an intensive distribution strategy.

McDonald's placement of stores in Walmart, gas stations, and hospitals is an example of exclusive distribution.

Agents and brokers are the most common types of merchant wholesalers.

Convenience stores offer a wide variety of merchandise and superior service at multiple locations.

The wheel of retailing helps explain the evolution of firms that enter a market on a shoestring budget and gain customers by offering lower prices. It suggests that once a customer base is established, the retailer begins offering higher­end products, more upscale facilities, and better service.

Truck jobbers are limited­service merchant wholesalers whose responsibilities include checking the stock, suggesting reorder quantities, and removing out­ of­date goods.

Outlet stores are owned by producers which sell directly to final customers, and may offer discontinued or flawed goods.

One of the drawbacks of online retailing is the lack of security on the Web for financial transactions.

Angelica sells a line of designer handbags. She is planning to open a series of shops to sell her products. Each shop will be in a different area of the state. This type of distribution is known as exclusive distribution.

Firms producing high­end goods with a customer base that actively seeks out their products­such as expensive luxury automobiles, jewelry, and watches­ rely on a selective distribution method.

Mstraanteyg my.edium­priced and high­priced products use a selective distribution

A small convenience store Cream Flake is too small to merit in­person sales service. For this reason, Cream Flake must rely on truck jobbers to service their store.

A selective distribution strategy involves establishing a single retailer as the sole provider of a product in a given area.

Victoria's Secret and AutoZone are examples of specialty stores.

The specific categories of limitedservice wholesalers include drop shippers, cash and carry wholesalers, and truck jobbers.

The wheel of retailing helps explain the evolution of firms that enter a market on a shoestring budget and gain customers by offering lower prices. It suggests that once a customer base is established, the retailer begins offering higherend products, more upscale facilities, and better service.

Truck jobbers are limitedservice merchant wholesalers whose responsibilities include checking the stock, suggesting reorder quantities, and removing out ofdate goods.

Firms producing highend goods with a customer base that actively seeks out their productssuch as expensive luxury automobiles, jewelry, and watches rely on a selective distribution method.

Mstraanteyg my.ediumpriced and highpriced products use a selective distribution

A small convenience store Cream Flake is too small to merit inperson sales service. For this reason, Cream Flake must rely on truck jobbers to service their store.