Question 1

Scenario 15.2 Use the following to answer the questions.Lands' End offers clothing and accessories for all members of the typical household. For many years, the products were sold only through catalogs. Later, they were available through the company on its Internet website. In the past few years, Lands' End has partnered with Sears to offer selected Lands' End products inside of Sears retail stores. This move by Lands' End has been criticized by some marketers because it was thought that the Lands' End products were superior in quality to those that are available in Sears stores. Additionally, the products available in Sears stores include Craftsman tools, lawn care equipment, and household appliances, which are not Lands' End types of product lines. This may create mixed messages about Lands' End to prospective customers.
-Refer to Scenario 15.2. When Lands' End sells its products through a catalog or the Internet, it is most likely a(an) ____, selling through ____.

Accepted Answer

When Lands' End sells its products through a catalog or the Internet, it is using direct marketing to reach its customers. When it partners with Sears to offer selected products in Sears retail stores, it is still acting as a retailer but using retail outlets to sell its products. Therefore, Choice C is the best answer.

Question 2

Intermediaries owned by manufacturers that sell products and provide support services to the manufacturers' sales forces are known as

Accepted Answer

Sales branches are owned by manufacturers and sell products while also providing support services to the manufacturer's sales force. Manufacturers' agents, selling agents, sales offices, and commission merchants are all types of independent intermediaries, not owned by the manufacturer.

Question 3

Retailing includes all transactions in which the buyer intends to consume the product through personal, family, or household use.

Accepted Answer

Retailing involves selling products to end consumers for their personal, family, or household use. Therefore, the statement is true.

Question 4

Scenario 15.1 Use the following to answer the questions.Landry Restaurants, Inc. owns a number of different franchised restaurants, including the Rain Forest Cafe and their recent addition, the T-Rex Cafe. Both the Rain Forest and T-Rex restaurants differentiate themselves from their competitors by offering a unique dining experience. At the Rain Forest Cafe you can dine under a ceiling of lush tropical forest plants while you are viewing the enormous aquarium with exotic fish. Periodically, the rain forest explodes with the sound of waterfalls and birds. Giant stuffed monkeys, parrots, and other jungle creatures are planted within the landscape. The Rain Forest Cafe also contains a gift shop, where customers can purchase t-shirts, hats, and other items emblazoned with the Rain Forest logo. The newer T-Rex Cafe has a similar approach to the uniqueness of the dining experience. The T-Rex Cafe offers guests a hands-on prehistoric experience, including educational, interactive computer screens. Customers can also pan for precious gems and fossils in Discovery Creek or feast on food from the Kitchen of Fire. The T-Rex Cafe also has a gift shop, where customers can purchase items with the T-Rex logo or build their very own stuffed dinosaur, through "Build-a-Dino" by the "Build-a-Bear" franchise.
-Refer to Scenario 15.1. The unique dining experiences offered by the Rain Forest Cafe and T-Rex Cafe represent the strategic issue of ____ addressed by the restaurants.

Accepted Answer

The unique dining experiences offered by the Rain Forest Cafe and T-Rex Cafe represent the strategic issue of retail positioning. Both restaurants differentiate themselves from their competitors by offering a unique dining experience that is difficult for other restaurants to replicate.

Question 5

Thad works for a company that markets all of Celetron's products. Thad's company acts as the marketing department for Celetron, performing all marketing functions without actually taking title to the goods. Thad's company is a

Accepted Answer

Thad's company acts as a selling agent for Celetron, performing all marketing functions without taking title to the goods. The term "selling agent" is commonly used to describe companies like Thad's that represent manufacturers and act as the official sales force for those manufacturers without taking ownership of their products.

Question 6

Scenario 15.2 Use the following to answer the questions.Lands' End offers clothing and accessories for all members of the typical household. For many years, the products were sold only through catalogs. Later, they were available through the company on its Internet website. In the past few years, Lands' End has partnered with Sears to offer selected Lands' End products inside of Sears retail stores. This move by Lands' End has been criticized by some marketers because it was thought that the Lands' End products were superior in quality to those that are available in Sears stores. Additionally, the products available in Sears stores include Craftsman tools, lawn care equipment, and household appliances, which are not Lands' End types of product lines. This may create mixed messages about Lands' End to prospective customers.
-Refer to Scenario 15.2. By locating in the Sears' stores, Lands' End can do all of the following, except

Accepted Answer

The scenario does not mention anything about facilitating wholesale exchanges, but rather focuses on the retail presence of Lands' End products in Sears stores. The other answer choices are mentioned in the scenario: A) facilitating comparison shopping, C) creating place utility, D) creating time utility, and E) facilitating consumer exchanges.

Question 7

Selling agents perform every wholesaling activity except

Accepted Answer

Selling agents perform all the listed wholesaling activities except taking title to products. They act on behalf of their clients but do not own the products they sell.

Question 8

A channel member that markets all of a manufacturer's goods, has authority over price, promotion, and distribution, but does not take title to the product is a

Accepted Answer

A selling agent is a channel member who markets all of a manufacturer's goods and has authority over price, promotion, and distribution, but does not take title to the product.

Question 9

Scenario 15.2 Use the following to answer the questions.Lands' End offers clothing and accessories for all members of the typical household. For many years, the products were sold only through catalogs. Later, they were available through the company on its Internet website. In the past few years, Lands' End has partnered with Sears to offer selected Lands' End products inside of Sears retail stores. This move by Lands' End has been criticized by some marketers because it was thought that the Lands' End products were superior in quality to those that are available in Sears stores. Additionally, the products available in Sears stores include Craftsman tools, lawn care equipment, and household appliances, which are not Lands' End types of product lines. This may create mixed messages about Lands' End to prospective customers.
-Refer to Scenario 15.2. The move to sell Land's End products inside of Sears' stores may lead to potential problems with the customer's perception of Lands' End quality, in part due to the functional and psychological picture in the consumer's mind of Sears' stores. This picture is called the ____ of Sears.

Accepted Answer

The customer's perception of Sears' stores is called the store image.

Question 10

Scenario 15.1 Use the following to answer the questions.Landry Restaurants, Inc. owns a number of different franchised restaurants, including the Rain Forest Cafe and their recent addition, the T-Rex Cafe. Both the Rain Forest and T-Rex restaurants differentiate themselves from their competitors by offering a unique dining experience. At the Rain Forest Cafe you can dine under a ceiling of lush tropical forest plants while you are viewing the enormous aquarium with exotic fish. Periodically, the rain forest explodes with the sound of waterfalls and birds. Giant stuffed monkeys, parrots, and other jungle creatures are planted within the landscape. The Rain Forest Cafe also contains a gift shop, where customers can purchase t-shirts, hats, and other items emblazoned with the Rain Forest logo. The newer T-Rex Cafe has a similar approach to the uniqueness of the dining experience. The T-Rex Cafe offers guests a hands-on prehistoric experience, including educational, interactive computer screens. Customers can also pan for precious gems and fossils in Discovery Creek or feast on food from the Kitchen of Fire. The T-Rex Cafe also has a gift shop, where customers can purchase items with the T-Rex logo or build their very own stuffed dinosaur, through "Build-a-Dino" by the "Build-a-Bear" franchise.
-Refer to Scenario 15.1. The lush tropical plants and aquarium represent the ____ of the Rain Forest Cafe.

Accepted Answer

The lush tropical plants and aquarium represent the atmospherics of the Rain Forest Cafe. Atmospherics refer to the tangible elements in a retail environment that create a certain mood or feeling for customers, such as lighting, music, colors, and scents.

Question 11

Veronica Montez works for Bicardi at a location away from the manufacturing plants. She provides wholesale services to wholesale and retail customers, but her facility does not carry inventory. Veronica works at a

Accepted Answer

Veronica Montez works at a sales office that provides wholesale services to wholesale and retail customers. The fact that her facility does not carry inventory suggests that she is not working at a retail outlet or manufacturers' agency. Commission brokerage is also an unlikely option as this typically involves buying and selling on behalf of clients, rather than providing wholesale services. Therefore, the best choice is a sales office (C).

Question 12

Scenario 15.1 Use the following to answer the questions.Landry Restaurants, Inc. owns a number of different franchised restaurants, including the Rain Forest Cafe and their recent addition, the T-Rex Cafe. Both the Rain Forest and T-Rex restaurants differentiate themselves from their competitors by offering a unique dining experience. At the Rain Forest Cafe you can dine under a ceiling of lush tropical forest plants while you are viewing the enormous aquarium with exotic fish. Periodically, the rain forest explodes with the sound of waterfalls and birds. Giant stuffed monkeys, parrots, and other jungle creatures are planted within the landscape. The Rain Forest Cafe also contains a gift shop, where customers can purchase t-shirts, hats, and other items emblazoned with the Rain Forest logo. The newer T-Rex Cafe has a similar approach to the uniqueness of the dining experience. The T-Rex Cafe offers guests a hands-on prehistoric experience, including educational, interactive computer screens. Customers can also pan for precious gems and fossils in Discovery Creek or feast on food from the Kitchen of Fire. The T-Rex Cafe also has a gift shop, where customers can purchase items with the T-Rex logo or build their very own stuffed dinosaur, through "Build-a-Dino" by the "Build-a-Bear" franchise.
-Refer to Scenario 15.1. The Rain Forest Cafe and T-Rex Cafe are usually located in tourist-dense areas or large shopping malls in order to capture walk-by traffic. If the restaurants' primary focus was to obtain customers who are walking by, they would definitely not want which of the following locations?

Accepted Answer

Free-standing buildings are typically not located in tourist-dense areas or large shopping malls and therefore would not have a significant amount of walk-by traffic. The other options listed are all potential locations for the Rain Forest Cafe and T-Rex Cafe to capture walk-by traffic.

Question 13

The management at Kohler Inc., a manufacturer of sinks, tubs, and other plumbing products, thinks that there will soon be a major growth in home remodeling due to rising interest rates. The management decides to use ____ in several key cities to provide support services for its sales force in those areas, carry inventory, and offer credit and other services to its retail plumbing customers.

Accepted Answer

The best choice is sales branches as they provide support services for sales force, carry inventory, and offer credit and other services to retail plumbing customers. Sales agents work as independent contractors and do not provide all the services required by Kohler Inc. Commission merchants sell goods on behalf of the manufacturer but do not provide support services, inventory or credit. Broker offices connect buyers and sellers but do not usually handle inventory, nor do they provide credit or other services. Facilitating agencies might provide services but they are not specific to the sales operations of Kohler Inc.

Question 14

A difference between manufacturers' agents and selling agents is that

Accepted Answer

The answer of A difference between manufacturers' agents and selling...

Question 15

Chandra has extensive contacts in the real estate business and brings together buyers and sellers. Although she assumes no risks, she can offer specialized knowledge about real estate. Chandra is a

Accepted Answer

Chandra is a broker because she brings together buyers and sellers in real estate transactions and provides specialized knowledge without assuming any risks.

Question 16

Calhoun Produce, a ____, takes possession of truckloads of tomatoes, arranges for storage, and transports them to auctions to be sold.

Accepted Answer

Calhoun Produce acts as a commission merchant by taking possession of the tomatoes, storing them, and transporting them to auctions to be sold.

Question 17

Scenario 15.2 Use the following to answer the questions.Lands' End offers clothing and accessories for all members of the typical household. For many years, the products were sold only through catalogs. Later, they were available through the company on its Internet website. In the past few years, Lands' End has partnered with Sears to offer selected Lands' End products inside of Sears retail stores. This move by Lands' End has been criticized by some marketers because it was thought that the Lands' End products were superior in quality to those that are available in Sears stores. Additionally, the products available in Sears stores include Craftsman tools, lawn care equipment, and household appliances, which are not Lands' End types of product lines. This may create mixed messages about Lands' End to prospective customers.​
-Refer to Scenario 15.2. In comparison to Lands' End, Sears has a product mix that is most likely

Accepted Answer

The scenario states that Sears offers a product mix that includes Craftsman tools, lawn care equipment, and household appliances in addition to the Lands' End products. This indicates that Sears has a wider product mix than Lands' End, and the fact that they offer these additional product lines suggests that their product mix is also deeper. Therefore, the best choice is C.

Question 18

A manufacturer-owned operation that provides services usually associated with agents is a

Accepted Answer

A sales office is a manufacturer-owned operation that provides services typically associated with agents, such as promoting the manufacturer's products and supporting the sales process without actually taking title to the goods.

Question 19

Retailers form an important link in the marketing channel because they are both marketers and customers.

Accepted Answer

Retailers are marketers as they promote and sell products to customers, and they are also customers as they purchase products from manufacturers or wholesalers to stock their stores.

Question 20

An agent that receives goods on consignment from local sellers and negotiates sales in large, central markets is called a

Accepted Answer

A commission merchant is an agent who receives goods on consignment from local sellers and negotiates sales in large, central markets. They typically take a percentage (or commission) of the sales as their compensation. Choice B is incorrect because a sales branch agent typically works for a specific company and sells only their products, not goods from multiple sellers. Choice C is too general and could apply to any type of agent involved in selling. Choice D is also incorrect because a manufacturers' agent typically represents a specific manufacturer and sells their products, rather than handling goods on consignment from multiple sellers. Choice E is too broad and could apply to any type of agent involved in facilitating transactions between buyers and sellers.

Quiz 15: Retailing, Direct Marketing and Wholesaling