Question 1

To make it convenient for final consumers to find and purchase products is the goal of which of the following?

Accepted Answer

Intensive distribution is the strategy of making a product available to as many consumers as possible through a variety of channels. This ensures that the product is easily accessible to the final consumers, making it convenient for them to find and purchase it. The other choices - merchant wholesaling, the wheel of retailing, and selective distribution - are not specifically focused on making it convenient for final consumers to find and purchase products.

Question 2

Which of the following statements about the relative sizes of store and nonstore retailing is most accurate?

Accepted Answer

Store retailers still dominate the retail market, accounting for more than 90% of total retail sales, despite the growth of nonstore retailing.

Question 3

HP relies heavily on wholesale and retail channel partners to distribute its computers.Dell elects to sell most of its computers directly to consumers without using intermediaries.What do these firms therefore approach differently?

Accepted Answer

HP uses wholesale and retail channel partners while Dell sells directly to consumers. This indicates that they have different approaches to channels of distribution.

Question 4

Which of the following involves selling products at a limited number of preferred retailers in a given area,and is a common approach for distributing medium- and higher-priced products?

Accepted Answer

Selective distribution involves selling products at a limited number of preferred retailers in a given area, and is a common approach for distributing medium- and higher-priced products. Exclusive distribution would involve selling products exclusively at one particular retailer, while exclusionary distribution and maximum distribution are not commonly used terms in marketing.

Question 5

What are the two categories of independent wholesalers?

Accepted Answer

The two categories of independent wholesalers are merchant wholesalers and agent/brokers. Merchant wholesalers take title to the goods they sell and make their profit from the markup they add to the price. Agent/brokers do not take title to the goods but instead facilitate the sale between the buyer and seller and take a commission on the transaction. Choices A, B, and C are incorrect as they do not accurately reflect the two categories of independent wholesalers.

Question 6

Which of the following is a theory that describes a common way that retailers evolve,but does not account for stores that launch at the higher end of the market or for firms that retain their reputation as discount retailers?

Accepted Answer

The wheel of retailing theory describes how retailers tend to evolve from low-end, low-price operations to higher-end, higher-price operations over time. However, this theory does not account for retailers that launch at the high end of the market or for firms that intentionally retain their reputation as discount retailers. Therefore, the wheel of retailing theory is not fully comprehensive in its description of retail evolution.

Question 7

Big River Electronics is a large online merchant.Although Big River takes title to the goods it sells,it seldom actually takes physical possession of them.Instead,it arranges to have the goods shipped directly from the producer to the customers placing orders on its site.This suggests that Big River uses which of the following?

Accepted Answer

Big River Electronics is using a drop shipping strategy where it takes the order from the customer and then arrange for the producer to directly ship the goods to the customer. This allows Big River to minimize their inventory and handling costs.

Question 8

What type of intermediaries do insurance companies usually use?

Accepted Answer

Insurance companies usually use agents as intermediaries. Agents are licensed individuals or firms who represent insurance companies and sell insurance policies to customers. They earn a commission for each policy they sell, and they also provide customer service, claims processing, and other support to the insured.

Question 9

Which of the following offer goods to business customers that are too small to justify in-person sales calls from wholesaler representatives?

Accepted Answer

Cash and carry wholesalers serve small business customers who do not warrant in-person sales calls, allowing them to pick up goods directly from the wholesaler's location.

Question 10

What is the term for an intermediary that takes legal possession of the goods being distributed?

Accepted Answer

A merchant wholesaler is an intermediary that buys and takes legal possession of goods from manufacturers or producers, and then distributes those goods to retailers, businesses, or other organizations. The key feature of a merchant wholesaler is that they take ownership of the goods, unlike agents or brokers who simply facilitate transactions between buyers and sellers.

Question 11

Which type of merchant wholesaler provides a complete array of services to the retailers and businesses that typically purchase their goods?

Accepted Answer

A full-service merchant wholesaler provides a complete range of services such as inventory management, warehousing, delivery, credit, and market research to retailers and businesses that typically purchase their goods. Value-added merchant wholesalers provide additional services that differentiate their products from competitors, interdependent merchant wholesalers work closely with manufacturers and retailers to meet their specific needs, and independent merchant wholesalers operate on a smaller scale and typically specialize in a specific product or product line.

Question 12

Which type of store sells a complete selection of food and general merchandise at a steep discount in a single enormous location?

Accepted Answer

A supercentre store is a type of retail store that offers a complete selection of food and general merchandise, including clothing, electronics, and household items, at a steep discount. These stores are typically very large, often over 200,000 square feet, and combine a grocery store with a discount department store under one roof. Some examples of supercentre stores include Walmart Supercenters, Target Supercenters, and Meijer.

Question 13

Which of the following involves hiring independent contractors to sell products within personal networks and recruit salespeople in return for a percentage of commissions?

Accepted Answer

The strategy described in the question is called multilevel marketing, which involves recruiting independent contractors to sell products within their personal networks and incentivizing them to recruit more salespeople in return for a percentage of commissions. Penetration pricing refers to pricing products lower than competitors initially to gain market share, while supply chain management involves managing the flow of products from suppliers to customers. Profit margin refers to the difference between revenue and expenses, expressed as a percentage.

Question 14

Companies such as Chapters and Lush Cosmetics sell goods both online and in physical stores.Which term describes this approach?

Accepted Answer

Multichannel retailing refers to the strategy of selling products through multiple channels such as brick-and-mortar stores, online stores, mobile apps, social media, etc. Companies like Chapters and Lush Cosmetics use this strategy to reach a broader audience and provide more convenience to their customers.

Question 15

Which of the following enables merchant wholesalers to develop their own marketing strategies,including pricing strategies?

Accepted Answer

Merchant wholesalers take legal title to the goods they help distribute, which gives them the freedom to develop their own marketing strategies, including pricing strategies. This is because they own the goods and can price them however they see fit, in accordance with market demand and competitive pressures. The other options do not necessarily provide merchant wholesalers with the same level of control over their marketing strategies.

Question 16

Peet's Coffee uses which of the following to sell its products by using a variety of venues,including grocery stores,online,and mail order?

Accepted Answer

Peet's Coffee is using multiple channels to sell its products, such as grocery stores, online, and mail order. This is an example of multichannel marketing.

Question 17

Two-thirds of all wholesale trade members are which of the following?

Accepted Answer

The answer of Two-thirds of all wholesale trade members are...

Question 18

Freshbred delivers fresh cakes,breads,pies,and muffins to several small grocery stores.In addition to delivering the baked goods,Freshbred's employees help the small storeowners keep track of what they need to order,and they even remove outdated baked goods from the shelves.Freshbred is an example of which of the following?

Accepted Answer

Freshbred is a truck jobber because it not only delivers products but also provides additional services like inventory management and removing outdated goods, which are typical functions of a truck jobber.

Question 19

Which of the following are two types of limited service merchant wholesalers?

Accepted Answer

Drop shippers and truck jobbers are the two types of limited service merchant wholesalers. Drop shippers take orders but do not actually handle, stock or deliver products. Truck jobbers specialize in delivering products directly to retailers from manufacturers or full-service wholesalers. Category killers, category fillers, agents, brokers, independent market makers and affiliated market specialists are not types of limited service merchant wholesalers.

Question 20

Which of the following dominate the market by offering a huge variety of one type of product?

Accepted Answer

Category killers dominate the market by offering a huge variety of one type of product such as Home Depot for hardware or Toys R Us for toys. Penetration pricing specialists focus on offering low prices, supply chain managers focus on optimizing supply chain operations, and skimming pricing analysts set high prices for new products.

Quiz 12: Distribution and Pricing: Right Product, right Person, right Place, right Price