Question 1

Retailers who typically offer some sales assistance and information as well as credit and merchandise return services to support the sale of the shopping goods they carry are known as:

Accepted Answer

Limited-service retailers offer a moderate amount of sales assistance, credit, and merchandise return services, which aligns with the description given.

Question 2

David Jones is a chain of stores in Australia. Each store carries several product lines, and each line is managed separately by a specialist buyer or merchandiser. David Jones offers many types of customer service, and its prices reflect that fact. David Jones is an example of a:

Accepted Answer

David Jones fits the definition of a department store, which is a retail establishment offering a wide range of consumer goods in different product categories, each managed by a specialist buyer or merchandiser. The store also offers various types of customer service, which is common for department stores, and its pricing reflects this.

Question 3

Some retail stores are designed to allow customers to easily locate merchandise which they pay for at centrally- located checkouts before loading the goods in their own cars. This approach to retailing is best described as:

Accepted Answer

This type of retailing, where customers are able to locate and retrieve merchandise on their own, is known as self-service retailing.

Question 4

The Adelaide Wine Company is preparing to open a new territory with which it is completely unfamiliar. The firm, which hopes to enter the market as quickly and inexpensively as possible, is most likely to utilise:

Accepted Answer

Manufacturer's agents are sales intermediaries hired by manufacturers to sell their products to customers. They are knowledgeable about the market and can help the Adelaide Wine Company enter the new territory quickly and inexpensively by leveraging their existing relationships and expertise. Selling agents, commission merchants, and purchasing agents may also be helpful, but they are less likely to be familiar with the wine industry or the specific needs of the Adelaide Wine Company.

Question 5

Well- known manufacturers such as Calvin Klein and Levi Strauss have decided the most profitable way to dispose of out- of- season and irregular stock is to open stores and sell their own merchandise. This is the retail strategy of:

Accepted Answer

The strategy mentioned in the question is that of factory outlets where manufacturers sell their own merchandise, usually out-of-season or irregular stock, directly to consumers at a discounted price.

Question 6

Your text identifies a number of trends in wholesaling. Which of the following is NOT one of the trends identified in your text?

Accepted Answer

Wholesalers dealing directly with end users is not identified as a trend in the text.

Question 7

Wholesalers that are owned by farmer- members who assemble farm products to sell in local markets are known as:

Accepted Answer

Producers' cooperatives are wholesaler organizations that are owned and controlled by farmer-members who assemble farm products to sell in local markets. They are formed to achieve common goals, such as increasing market access, bargaining power, and profit.

Question 8

The most successful wholesaler- distributors have:

Accepted Answer

Successful wholesaler-distributors have reduced operating costs by investing in advanced materials-handling technology and information systems, which enhances efficiency and service quality.

Question 9

Which of the following is NOT a part of a store's atmosphere?

Accepted Answer

The employee who helps you carry your purchases to your car is not a part of the physical atmosphere of the store, but rather a part of the customer service experience. The physical atmosphere encompasses elements such as music, scent, displays, and lighting.

Question 10

A __________ is a free- form corporation that combines several diversified retailing lines and forms under central ownership, along with integration of distribution- and- management functions of those retailing lines and forms.

Accepted Answer

The definition provided in the question best describes a merchandising conglomerate. A retailer cooperative consists of independent retailers who come together to purchase goods in bulk, but they maintain their individual identities. A consumer cooperative is owned and governed by the members who use its services. A voluntary chain is a contractual agreement between independent retailers to purchase goods from a wholesaler or a franchisee. A retail licensing arrangement involves one company allowing another company to use its name and branding for a fee.

Question 11

When Bill goes to do his grocery shopping for the week, he also likes to drop off his dry cleaning and obtain cash out using his debit card. He would also like the idea of getting his shoes repaired there while he is shopping. Bill would enjoy doing his grocery shopping at a:

Accepted Answer

The answer of When Bill goes to do his grocery...

Question 12

A store that consistently offers merchandise at lower prices, offering national brands rather than inferior goods or seconds is referred to as a(n):

Accepted Answer

A discount store is characterized by offering merchandise at lower prices while still maintaining the quality of national brands, differentiating it from stores that might offer inferior goods or seconds.

Question 13

As a type of agent, _________take physical possession of products and negotiate sales. Theirs is a short- term relationship, and they tend to work in agriculture.

Accepted Answer

The answer of As a type of agent, _________take physical...

Question 14

Ponsonby Wholesale takes title to the products that it handles. The firm is best classified as a(n):

Accepted Answer

A merchant wholesaler takes title to the products they handle and then sell those products to retailers or other businesses. The fact that Ponsonby Wholesale takes title to the products indicates that it is a merchant wholesaler.

Question 15

The widest variety of wholesaling services is provided by:

Accepted Answer

Merchant wholesalers typically offer the widest range of wholesaling services, including bulk purchasing, storage, inventory management, marketing and advertising, and delivery or shipping. Agents usually specialize in specific industries or product categories, while manufacturers' representatives typically work for a specific manufacturer. Brokers primarily facilitate transactions between buyers and sellers, but may not offer additional services beyond that.

Question 16

The wholesaler who contracts to sell a producer's entire output with no territory limits is called a:

Accepted Answer

A selling agent is a type of wholesaler who contracts to sell a producer's entire output with no territory limits. The other options are not appropriate as they do not fit the description given in the question.

Question 17

Which of the following statements about manufacturers' branches and offices is true?

Accepted Answer

All of the above statements are true. Sales branches are often able to provide customers with faster access to products as they carry inventory, while sales offices perform a role similar to one performed by agents and brokers.

Question 18

Tom loves to go to the Nike Store where he finds athletic shoes and clothing at lower prices than at department stores. The Nike Store carries leftover merchandise, overruns and irregulars. This retail store is an example of a:

Accepted Answer

The given retail store is an example of a factory outlet which offers merchandise at lower prices due to being leftover, overruns, or irregulars.

Question 19

Whangarei Development Inc. is planning a complex of 90 stores designed to offer one- stop shopping in a weather- controlled environment to consumers located within a 75 kilometre radius. This development would be an example of a:

Accepted Answer

The complex of 90 stores designed for one-stop shopping in a weather-controlled environment indicates that it is a large shopping centre that can cater to a wide range of consumers, making it a regional shopping centre. The fact that it aims to serve consumers within a 75 kilometre radius further strengthens the case for it being a regional shopping centre.

Question 20

The set of activities involved in selling goods and services to those buying for resale or business use is termed:

Accepted Answer

The set of activities involved in selling goods and services to those buying for resale or business use is known as wholesaling. This includes activities such as procurement, inventory management, logistics, and marketing directed at the B2B customer. Retailing, on the other hand, is the set of activities involved in selling goods and services to end consumers. Exchange refers to a transaction in which two parties give something of value to each other. Procurement is the process of acquiring goods and services for an organization. Brokering is the process of facilitating transactions between two parties but not actually taking ownership of the goods or services being exchanged.

Quiz 14: Retailing and Wholesaling