Question 1

When wholesalers transport and stock products in inventory,they accept the possibility of spoilage,theft,or obsolescence.This function performed by the wholesaling intermediary is referred to as _____.

Accepted Answer

The function of accepting the possibility of spoilage, theft, or obsolescence is the risk-taking function.

Question 2

A _____ provides space for permanent showrooms and exhibits,which manufacturers rent to market their goods.

Accepted Answer

A merchandise mart is a large commercial building that provides spaces for permanent showrooms and exhibits where manufacturers can rent to market their goods. The other options, discount house, trade fair and clearing house do not fit the description of a merchandising mart.

Question 3

Customers who cannot afford to pay cash for purchases made directly from the manufacturer can buy those products from a wholesale intermediary who grants them credit for the purchase.Which of the following marketing functions is being performed by the wholesaler in this situation by granting credit?

Accepted Answer

The wholesaler is providing financing by granting credit to customers who cannot afford to pay cash for their purchases.

Question 4

Wholesaling intermediaries create place utility by:

Accepted Answer

Wholesaling intermediaries help deliver goods and services for purchase at convenient locations, which creates place utility. The other choices do not directly relate to place utility.

Question 5

In the business-goods market,full-function merchant wholesalers are also known as _____.

Accepted Answer

Full-function merchant wholesalers in the business-goods market are also known as industrial distributors. They typically offer a wide range of services beyond just selling products, including technical assistance, financing, and inventory management. Drop shippers, mail-order wholesalers, and cash-and-carry wholesalers all offer different types of services and operate in different ways.

Question 6

Full-function merchant wholesalers include:

Accepted Answer

The answer of Full-function merchant wholesalers include:
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Question 7

A _____ is a limited-function wholesaler that markets perishable food items.

Accepted Answer

The description provided matches with truck jobbers, who are wholesalers that specialize in marketing and selling perishable food items through direct delivery to small retailers, restaurants, and institutions. Cash-and-carry wholesalers usually sell nonperishable items in bulk to individuals or small businesses who visit their warehouses to make purchases. Mail-order wholesalers deliver goods by mail, while drop shippers do not carry inventory and only handle the shipping of products from manufacturers or other wholesalers directly to customers.

Question 8

Scrambled merchandising is a retailing practice of:

Accepted Answer

Scrambled merchandising refers to combining dissimilar product lines to boost sales volume. This practice allows retailers to offer a wider range of products to customers and increase revenue. It can also enhance customer experience by providing a one-stop-shop for multiple product categories.

Question 9

The two broad categories of independent wholesaling intermediaries include agents and brokers,and _____.

Accepted Answer

The two broad categories of independent wholesaling intermediaries include agents and brokers and merchant wholesalers. Option A (contract agents) is not a recognized category, option B (full-function intermediaries) and option C (exclusive-function intermediaries) are not widely accepted terms in the industry.

Question 10

A _____ is a channel intermediary that takes title to goods it handles and then distributes those goods to retailers,other distributors,or B2B customers.

Accepted Answer

A wholesaler is a channel intermediary that purchases goods from manufacturers and sells them to retailers, other distributors or B2B customers. Wholesalers take title to the goods they handle and assume the risk of unsold inventory. This allows manufacturers to sell large quantities of goods at once, while retailers and other customers benefit from the convenience and efficiency of buying from one source.

Question 11

Which of the following is an example of scrambled merchandising?

Accepted Answer

Scrambled merchandising refers to the practice of offering unrelated product lines or categories in one retail location. Option B is an example of scrambled merchandising because a jewelry store typically carries only jewelry-related products like rings and watches, but also carrying electronics and DVDs deviates from this norm. The other options all offer related product lines within their respective stores.

Question 12

Wholesaling intermediaries help producers in transporting by:

Accepted Answer

Wholesaling intermediaries purchase goods in large quantities from the producers and then break them down into smaller quantities for resale. This helps producers in transporting their goods by reducing their transportation costs and also by providing them with a wider distribution network. By buying in large quantities, they can negotiate better prices from the producers and pass on some of the savings to the retailers and other customers.

Question 13

Possession utility can occur even if the actual title is not transferred,as in the case of:

Accepted Answer

Car rentals provide possession utility to the customer even though the actual title of the car is not transferred to them.

Question 14

What types of utility are created by wholesaling intermediaries when they make a product available at a convenient location at the moment it is needed by the customer?

Accepted Answer

Wholesaling intermediaries create place and time utility by making a product available at a convenient location at the moment it is needed by the customer. Place utility refers to having the product available at a convenient location, while time utility refers to having the product available when the customer needs it.

Question 15

A _____ is a full-function merchant wholesaler that markets specialized lines of merchandise to retail stores.

Accepted Answer

A rack jobber is a full-function merchant wholesaler that markets specialized lines of merchandise to retail stores. Drop shippers are intermediaries that coordinate shipping directly from the manufacturer to the consumer, without handling the product themselves. Truck wholesalers operate mobile warehouses and sell products directly from their trucks. Commission merchants act as agents for manufacturers or farmers and are paid a percentage of the value of the goods they sell. None of these options accurately describe a full-function merchant wholesaler that markets specialized lines of merchandise to retail stores.

Question 16

_____ make regular deliveries to retailers,perform sales and collection functions,and promote product lines.

Accepted Answer

Truck jobbers make regular deliveries to retailers, perform sales and collection functions, and promote product lines. Clearing agents are involved in customs and import/export procedures, Boundary spanners may coordinate between different departments within a company, and Drop shippers directly ship products to customers without ever physically possessing the product.

Question 17

_____ are independent wholesaling intermediaries that take title to the goods they handle.

Accepted Answer

Merchant wholesalers take title to the goods they handle, which means they purchase and own the products before reselling them to retailers or other buyers. Commission merchants, selling agents, and broker wholesalers do not take title to the goods but instead act as intermediaries between buyers and sellers.

Question 18

The basic distinction between a company's sales branches and its sales offices is that:

Accepted Answer

The basic distinction between a company's sales branches and its sales offices is that sales branches carry inventory whereas sales offices do not. Sales branches are physical locations that are owned by the company and handle both selling and distribution of products, while sales offices are smaller operations that handle sales directly but do not carry inventory.

Question 19

Which of the following industries is most likely to be served by a limited-function wholesaler?

Accepted Answer

The sporting goods industry is the most likely to be served by a limited-function wholesaler because the products in this industry typically have low barriers to entry and do not require specialized knowledge or services from wholesalers. Limited-function wholesalers focus on a narrow product line and offer only basic services such as storage and transportation, which is well-suited for the sporting goods industry. The other industries listed (oil, petrochemicals, aviation) require specialized knowledge and services from wholesalers, making limited-function wholesalers less suitable for their needs.

Question 20

The sales branch is a manufacturer-owned facility that:

Accepted Answer

The sales branch is a manufacturer-owned facility that carries inventory and processes orders for customers from available stock. It is essentially a retail outlet for the manufacturer's goods. Choices A, B, and C do not accurately describe a sales branch.

Quiz 15: Retailers, Wholesalers, and Direct Marketers