Question 1

Wholesaling has adopted new strategies and big changes are under way even though they may be invisible to consumers.

Accepted Answer

The statement is true as the article mentioned that wholesaling has undergone changes and new strategies, but they may not be visible to consumers.

Question 2

The growth of cooperative chains of retail stores is due to the desire of small retailers to achieve some of the benefits of large-scale corporate chains.

Accepted Answer

The statement is true, as cooperative chains allow small retailers to have access to economies of scale, marketing support, and other perks typically enjoyed by larger corporate chains.

Question 3

"Voluntary chains" are retailer-sponsored groups--and "cooperative chains" are wholesaler-sponsored groups--that work together to better compete with corporate chains.

Accepted Answer

The answer of "Voluntary chains" are retailer-sponsored groups--and "cooperative chains"...

Question 4

The supercenter retailing format began in the U.S. and then was exported to other countries.

Accepted Answer

The answer of The supercenter retailing format began in the...

Question 5

Small limited-line shops still dominate retailing in Asia and South America because of the political and legal environments in those regions.

Accepted Answer

Political and legal environments in Asia and South America often make it difficult for large chain stores to establish themselves, leading to the dominance of smaller limited-line shops.

Question 6

Wholesalers are more likely to dominate distribution channels in more advanced economies than in less-developed ones.

Accepted Answer

In less-developed economies, wholesalers often play a more dominant role in distribution channels due to less developed retail infrastructure and the need for intermediaries to bridge the gap between manufacturers and a fragmented retail sector.

Question 7

Progressive wholesalers are becoming more concerned with their customers and with adding value in their channels.

Accepted Answer

Progressive wholesalers are taking customer satisfaction and adding value as important factors in their business strategy. They are trying to differentiate themselves from their competitors by providing better customer service and customized offerings.

Question 8

In-store shopping varies a lot from country to country, but online shopping does not.

Accepted Answer

In-store shopping and online shopping both vary from country to country depending on consumer behaviors, government regulations, and infrastructure. Some countries may have more established e-commerce markets while others rely more on traditional brick-and-mortar stores. Similarly, in-store shopping experiences can differ greatly between countries in terms of product availability, store layouts, and customer service.

Question 9

Voluntary chains like SuperValu in groceries are wholesaler-sponsored groups that work with "independent" retailers.

Accepted Answer

Voluntary chains like SuperValu are indeed wholesaler-sponsored groups that work with independent retailers.

Question 10

Consumers in less-developed nations have the income to support mass distribution.

Accepted Answer

Consumers in less-developed nations usually have lower incomes and may not have the purchasing power to support mass distribution of products.

Question 11

According to the U.S. Census Bureau, wholesaling is defined as the activities of firms that sell to retailers, but do not sell in large amounts to final consumers, manufacturers, or other institutional users.

Accepted Answer

The answer of According to the U.S. Census Bureau, wholesaling...

Question 12

Retailing worldwide is likely to see a continuation of past trends--and especially growth in the profits of "conventional" retailers.

Accepted Answer

As e-commerce continues to gain a larger market share, there may be a decline in profits for traditional retailers. However, there may still be growth opportunities for retailers who successfully integrate online and offline channels.

Question 13

Although wholesalers no longer dominate channels in the U.S., they do provide a necessary function and have survived because of new management and new techniques.

Accepted Answer

Wholesalers still play an important role in the distribution channels and have adapted to changes in the industry through new management and techniques.

Question 14

"Cooperative chains" like True Value Hardware are retailer-sponsored groups formed by independent retailers to run their own buying organizations.

Accepted Answer

Cooperative chains are groups formed by independent retailers to run their own buying organizations with the sponsorship of a retailer. True Value Hardware is an example of such a cooperative chain.

Question 15

Franchise operations, such as Subway, Quiznos Sub, Curves, The UPS Store, Jackson Hewitt Tax Service, Dunkin' Donuts, Jani-King, RE/MAX Int'l, 7-Eleven, and Liberty Tax Service account for about a third of all retail sales.

Accepted Answer

Franchise operations account for about a third of all retail sales.

Question 16

When considering cost as a percent of sales, agent wholesalers are more expensive than manufacturers' sales branches.

Accepted Answer

Agent wholesalers do not take title to goods and typically operate on a commission basis, making them generally less expensive than manufacturers' sales branches, which involve the costs of holding inventory, facilities, and a larger sales staff.

Question 17

Cooperative chains tend to work with independent retailers, not corporate chain retailers.

Accepted Answer

Cooperative chains are often made up of independent retailers who work together to improve their purchasing power and marketing strategies. They typically do not work with large corporate chain retailers.

Question 18

Agent wholesalers usually have higher operating expenses (as a percentage of sales) than merchant wholesalers.

Accepted Answer

Agent wholesalers typically have lower operating expenses as a percentage of sales compared to merchant wholesalers because they do not take title to the goods and usually have less involvement in the physical handling of products, reducing their operational costs.

Question 19

Franchising now accounts for about a third of all retail sales.

Accepted Answer

According to the International Franchise Association, franchising accounts for approximately 1 out of every 7 retail businesses in the United States and supports nearly 8 million jobs.

Question 20

In a franchise operation, the franchisor develops a good marketing strategy, and the retail franchise holders carry out the strategy in their own units.

Accepted Answer

This is generally true in a franchise operation. The franchisor provides marketing support and guidelines to the franchisees, who then implement them in their individual units.

Quiz 13: Retailers,wholesalers,and Their Strategy Planning