Question 1

A general merchandise wholesaler carries a select group of products within a single line of merchandise.

Accepted Answer

A general merchandise wholesaler carries a wide range of products in multiple lines of merchandise, rather than a select group of products within a single line.

Question 2

Selective distribution is the use of a single retail outlet in each geographic area.

Accepted Answer

Selective distribution is the use of a limited number of retail outlets in a geographic area, not just a single one.

Question 3

A category killer is a very large specialty store that concentrates on a single product line and competes by offering low prices and an enormous number of products.

Accepted Answer

A category killer is a large store that specializes in a particular product line and is known for offering low prices and a vast selection of products.

Question 4

The most direct channel for consumer products is from producer to retailer to consumer.

Accepted Answer

The most direct channel for consumer products is from producer directly to consumer, eliminating any intermediaries.

Question 5

A sales agent provides immediate entry into a territory, regular calls on customers, selling experience, and a known, predetermined selling expense.

Accepted Answer

A sales agent typically has established relationships with customers in a specific territory, frequently visits them to sell products, has experience in selling, and incurs known selling expenses such as travel and advertising.

Question 6

A retail outlet that sells a single category of merchandise is known as a specialty store.

Accepted Answer

A specialty store specializes in selling a single category of merchandise, such as shoes or books.

Question 7

Bill Yee was granted franchise rights from McDonald's for the community in which he lives.McDonald's practice of granting franchises for specific geographic areas is commonly known as selective distribution.

Accepted Answer

Selective distribution involves choosing specific distributors for a product within a particular geographic area. McDonald's practice of granting franchises for specific geographic areas falls under this category.

Question 8

Direct marketing is the marketing of products to customers through face-to-face sales presentations at home or in the workplace.

Accepted Answer

Direct marketing includes many methods of reaching out to customers, including direct mail, email, telemarketing, and online advertising. While face-to-face sales presentations at home or in the workplace can be considered a form of direct marketing, it is not the only method used.

Question 9

A small food store that sells a limited variety of products but remains open well beyond normal business hours is called a convenience store.

Accepted Answer

This is the definition of a convenience store.

Question 10

Intensive distribution is the use of only a portion of the available outlets for a product in each geographic area.

Accepted Answer

Intensive distribution involves using all available outlets in a particular geographic area. Therefore, the statement is false.

Question 11

Radio shack, toys 'R' Us and Hickory Farms are example of convenience stores.

Accepted Answer

Radio Shack and Toys 'R' Us are electronic and toy retailers, respectively, while Hickory Farms is a specialty food retailer. Convenience stores are small retail spaces that typically sell snack foods, beverages, cigarettes, and other everyday items.

Question 12

An independent retailer is a firm that operates more than one outlet and generally provides personal service.

Accepted Answer

An independent retailer is a firm that operates only one outlet, rather than multiple outlets. They often specialize in a specific product or service and are known for providing high levels of personal service.

Question 13

Moving products form producer to wholesaler to retailer to consumer is called the traditional channel because most consumer because most consumer goods are sold this way.

Accepted Answer

The statement is true. The traditional channel involves the movement of products from the producer to the wholesaler to the retailer and finally to the consumer. This has been the predominant model for the sale of consumer goods.

Question 14

Off-price retailers are self-service, general merchandise outlets that sell goods at lower-than-usual prices.

Accepted Answer

The answer of Off-price retailers are self-service, general merchandise outlets...

Question 15

A limited-service wholesaler assumes responsibility for a few wholesale services only.

Accepted Answer

A limited-service wholesaler specializes in a few wholesale services only and does not offer a full range of services like a full-service wholesaler.

Question 16

With warehouse showrooms, a customer selects the merchandise either from a catalog or from the showroom display, fills out an order form provided by the store, and hands the form to a clerk.

Accepted Answer

The answer of With warehouse showrooms, a customer selects the...

Question 17

In a channel of distribution, the function of wholesaling must be performed, but the wholesaler can be removed.

Accepted Answer

Although the function of wholesaling (such as bulk buying, warehousing, and transportation) must be performed in a distribution channel, the role of the wholesaler can be eliminated if the manufacturer sells directly to retailers or consumers through e-commerce or other channels.

Question 18

When a producer wants to give its products the widest possible exposure is the marketplace, it chooses intensive distribution.

Accepted Answer

Intensive distribution strategy involves making the products available through as many channels as possible to ensure maximum exposure and availability in the marketplace.

Question 19

An intermediary that purchases goods in large quantities, takes title to the merchandise, and then sells it to retailers or business users is called a commission brocker.

Accepted Answer

The intermediary described is actually a wholesaler. A commission broker acts as an agent for buyers or sellers and earns a commission on the transactions they facilitate, but usually does not take ownership of the goods.

Question 20

Supply chain management primarily focuses on two are more stages of the marketing channel under one management.

Accepted Answer

The answer of Supply chain management primarily focuses on two...

Quiz 13: Distributing and Promoting Products