Deck 15: B Retailing,wholesaling and Direct Marketing

Question 1

Supermarkets specialize in selling shopping products.

Answer 1

False

Question 2

New store formats and technological advances are making the retail environment highly dynamic and competitive.

Answer 2

True

Question 3

A good location for neighborhood shopping centers is near hotels.

Answer 3

True

Question 4

Some purchasing by consumers is an end in itself-for example,when it is done to escape boredom.

Question 5

Specialty retailing is a form of selling by description in that buyers usually do not see the actual product until it arrives.

Question 6

Warehouse clubs are able to offer a broad range of merchandise because their product lines are shallow and their sales volumes high.

Question 7

Sales volume of retail stores in the United States has decreased in recent years.

Question 8

Most department stores are shopping stores.

Question 9

Appliances are an example of a major product line commonly carried by discount stores.

Question 10

The primary product offered by the department stores is convenience.

Question 11

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

Question 12

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

Question 13

Form and possession utilities are the only important utilities retailers create.

Question 14

Specialty retailers carry a broad product mix with deep product lines.

Question 15

Warehouse showrooms are able to sell products at low prices by passing some of their marketing functions on to consumers.

Question 16

Retailing is the final part of the marketing process in which exchanges are entered into for personal,family,or household purposes.

Question 17

Department stores are characterized by wide product mixes.

Question 18

The coordination of selling efforts within a community shopping center is usually minimal.

Question 19

Off-price retailers seek to attract relatively affluent consumers who are price-conscious and knowledgeable about brand names.

Question 20

Discount stores are distinctive in that they usually are very service-oriented.

Question 21

Direct selling is a type of specialty retailing.

Question 22

Factory outlet stores exist to compete with traditional retailers.

Question 23

Within the same franchising organization,all franchisees pay the same amount for the same services.

Question 24

Fewer enclosed regional malls have been built in recent years; developers are instead opening shopping centers that focus as much on entertainment as on shopping.

Question 25

Franchised outlets are generally less successful than independently owned businesses.

Question 26

Scrambled merchandising increases the retailer's expertise in buying,selling,and servicing.

Question 27

Wholesaling involves all transactions in which products are bought for resale,for use in making other products,or for general business operations.

Question 28

Most factory outlet shopping centers seek to locate in prime retail,metropolitan areas.

Question 29

Telemarketing is often combined with other marketing efforts.

Question 30

Direct marketing is the selling of products outside the confines of a retail facility.

Question 31

Store atmospherics are used to create emotional effects that enhance the probability of purchasing.

Question 32

A retail store usually can position its image so that it is universally acceptable to all market segments.

Question 33

The primary advantage of franchising is the complete control the franchisee has over the business.

Question 34

Direct selling is the most expensive form of retailing.

Question 35

Wholesalers do not engage in selling to reseller,government,or institutional users.

Question 36

A franchise is an arrangement in which a supplier grants dealers the right to sell products in exchange for some type of consideration.

Question 37

Direct-response marketing is the performance of marketing-related activities by telephone.

Question 38

Exterior atmospheric elements include the appearance of the storefront,display windows,store entrance,and amount of traffic congestion.

Question 39

Franchisees do not pay to use the franchiser's name.

Question 40

An example of a nonstore retailer is a vending machine.

Question 41

Cash-and-carry wholesalers draw most of their customers from large retailers and industrial firms.

Question 42

Less than half of all goods are exchanged through wholesaling institutions.

Question 43

A cash-and-carry wholesaler provides transportation,delivers products directly to customers,and places products on the retailer's shelves.

Question 44

The use of wholesalers permits producers to concentrate on developing and manufacturing products that match consumers' wants.

Question 45

Most manufacturers' agents prefer to work for one manufacturer at a time to avoid conflicts of interest.

Question 46

By buying in large quantities and delivering to customers in smaller lots,a wholesaler may perform physical distribution activities more efficiently than a producer.

Question 47

Wholesalers rarely handle credit for retailers and producers.

Question 48

Full-service merchant wholesalers are either general merchandise wholesalers or specialty-line wholesalers.

Question 49

Mail-order wholesalers are limited-function wholesalers who sell through catalogs to retailers and organizational customers.

Question 50

General-line wholesalers are a type of full-service merchant wholesaler.

Question 51

Limited-service wholesalers provide only some marketing services and specialize in a few functions.

Question 52

Distribution of all goods requires wholesaling activities,whether or not a wholesaling institution is involved.

Question 53

Truck wholesalers are usually classified as limited-service wholesalers because they offer a limited line of products.

Question 54

Wholesalers perform marketing functions only for the retailers below them in the channel of distribution.

Question 55

General merchandise wholesalers are full-service merchant wholesalers who carry only a few product lines.

Question 56

Agents represent either buyers or sellers on a temporary basis.

Question 57

Typical limited-service wholesalers are rack jobbers,truck wholesalers,specialty-line wholesalers,and cash-and-carry wholesalers.

Question 58

The classification of wholesalers in the text is based solely on the performance of marketing activities.

Question 59

Agents and brokers perform more functions than limited-service wholesalers.

Question 60

Merchant wholesalers assume risks of ownership.

Question 61

Commission merchants tend to have relatively broad powers concerning prices and terms of sales.

Question 62

Selling agents have control over the marketing efforts of manufacturers and may be used in place of a marketing department.

Question 63

The broker's primary function is to bring the buyer and seller together and assist in negotiating an exchange.

Question 64

Sales offices differ from sales branches in that sales offices may offer credit,deliver goods,and give promotional assistance.