Question 1

Trade fairs and merchandise marts are exhibitions for manufacturers' products where the buyer comes to the seller that is exhibiting at the event.

Accepted Answer

Trade fairs and merchandise marts are indeed events where manufacturers or sellers showcase their products in a specific location, allowing buyers to come to them to see, evaluate, and potentially purchase or place orders for these products. These events facilitate direct interaction between sellers and potential buyers.

Question 2

When an intermediary represents a number of producers, the number of transactions might decrease, but the cost of buying and selling remains constant.

Accepted Answer

When an intermediary represents multiple producers, it can reduce the total number of transactions between producers and consumers, leading to economies of scale and potentially lowering the cost of buying and selling due to reduced transaction costs and increased efficiency.

Question 3

Merchant wholesalers account for roughly 25 percent of all sales at the wholesale level.

Accepted Answer

Merchant wholesalers account for a much larger portion, typically around 80 percent or more, of all sales at the wholesale level.

Question 4

A truck wholesaler or truck jobber delivers perishable food items but does not perform any selling or promotion functions.

Accepted Answer

A truck wholesaler or truck jobber typically buys products, stores them, and then sells and delivers them to retailers or customers, often performing selling and promotional functions as part of their business operations.

Question 5

Commission merchants typically deal in agricultural products, selling the goods entrusted to them at the best possible prices they can, then deducting their fees from the sale proceeds.

Accepted Answer

Commission merchants act as intermediaries between the producers of agricultural products and the market. They sell the products on behalf of the producers, aiming to achieve the best possible prices, and then deduct their commission fees from the sales proceeds before passing the remainder back to the producers.

Question 6

Direct marketing is a broad concept that includes direct mail, direct selling, direct-response retailing, telemarketing, Internet retailing, and automatic merchandising.

Accepted Answer

Direct marketing encompasses a variety of marketing strategies and channels that aim to reach consumers directly without the use of intermediaries. This includes methods such as direct mail, direct selling, telemarketing, and online retailing, among others, allowing businesses to communicate directly with their target audience.

Question 7

Marc works as a wholesaling intermediary. He brings buyers and sellers together, sometimes representing buyers and sometimes representing sellers, but never both in any given transaction. Marc is a selling agent.

Accepted Answer

Marc is acting as a broker, not a selling agent, because he facilitates transactions between buyers and sellers without taking ownership of the goods.

Question 8

Merchant wholesalers take title to the goods they handle, while agents and brokers do not.

Accepted Answer

Merchant wholesalers actually purchase and take ownership (title) of the goods they sell, whereas agents and brokers simply facilitate sales and transactions without taking ownership of the goods.

Question 9

Direct mail retailers rely heavily on database technology to manage lists of names and segment them according to the objectives of the promotional campaign.

Accepted Answer

Database technology allows direct mail retailers to efficiently manage and segment large lists of names based on various criteria, such as purchasing history or demographic information, to tailor their promotional campaigns more effectively.

Question 10

Telemarketing is the most frequently used form of direct marketing but provides a relatively low return on investment.

Accepted Answer

The answer of Telemarketing is the most frequently used form...

Question 11

A drop shipper accepts orders from customers, accepts title and possession of the product, and then ships the product directly to customers.

Accepted Answer

A drop shipper accepts orders from customers but does not take title or possession of the product; instead, the supplier ships the product directly to the customer.

Question 12

Direct mail is one of the more costly methods of direct marketing, but it can effectively reach target markets, personalize messages, and produce measurable response rates.

Accepted Answer

Direct mail involves costs such as printing, postage, and mailing list rental, making it more expensive compared to digital methods. However, its ability to target specific demographics, personalize messages, and track responses makes it an effective marketing tool.

Question 13

The difference between a sales office and sales branch is determined by the number of sales personnel assigned to the location and the size of the geography covered by each.

Accepted Answer

The difference between a sales office and a sales branch is not primarily determined by the number of sales personnel or the size of the geography covered, but rather by their functions and roles within the organization. A sales office typically focuses on sales and customer service functions, while a sales branch may have a broader role, including inventory, distribution, and more autonomy in decision-making.

Question 14

Retailers sometimes assume wholesaling functions. For instance, large chains often establish centralized buying offices to negotiate purchases directly with manufacturers.

Accepted Answer

Retailers, especially large chains, can perform wholesaling functions by establishing centralized buying offices to directly negotiate purchases with manufacturers, bypassing traditional wholesalers. This can lead to cost savings and more control over the supply chain.

Question 15

Drop shippers never physically handle or even see the products to which they take title.

Accepted Answer

Drop shippers sell products without ever physically handling them; they purchase the item from a third party and have it shipped directly to the customer.

Question 16

Wholesaling intermediaries are classified by ownership and location.

Accepted Answer

Wholesaling intermediaries are typically classified by the services they provide and the type of products they handle, rather than by ownership and location.

Question 17

An example of a rack jobber is a company that handles inventory, pricing, and promotion of CDs and DVDs in stores such as Walmart.

Accepted Answer

Rack jobbers are distributors who manage the inventory and merchandising of products for retail stores, including handling tasks such as restocking, pricing, and promoting items like CDs and DVDs, making the example accurate.

Question 18

There are more than 10,000 different consumer specialty mail-order catalogues that find their way into Canadian homes annually.

Accepted Answer

Canada has a vast and diverse market for consumer goods, and the number of specialty mail-order catalogues reflects this diversity, catering to a wide range of interests and needs, thus exceeding 10,000 annually.

Question 19

Sales branches carry inventories and process orders.

Accepted Answer

Sales branches often hold inventories to quickly fulfill customer orders and process these orders to ensure timely delivery of products or services.

Question 20

In Canada, cash-and-carry wholesalers are increasing in popularity.

Accepted Answer

The answer of In Canada, cash-and-carry wholesalers are increasing in...

Quiz 13: Retailers, Wholesalers, and Direct Marketers