Question 1

Use this information for question that refer to the Centerville Retailers and Wholesalers case. Carol Lamb has lived in Centerville all her life. She owns a retail store that sells hobby and craft supplies. She bought the store after working there for 7 years. Carol has just been asked to head up the Retailers and Wholesaler Group of the Centerville Chamber of Commerce. The most active chamber members in her group are described below:
Walden's Leather is part of a regional chain of stores that sells leather goods--mostly men's and women's clothing--with the upscale Walden's brand name. Walden's primarily relies on its own stores where knowledgeable salespeople offer great service. Walden products are also sold, on a limited basis, in some fine department stores.
Publisher's Helper is a small business started by Audrey Yang that provides and stocks display racks for paperback books and magazines. Most retailers welcome the service Audrey provides, in part because she does her own research to determine which paperback books and magazines sell best in Centerville.
Cuzco's is Centerville's alternative to Walmart. The store sells a wide variety of merchandise. The company used to concentrate its product mix on small appliances--but now Cuzco's carries any product that it can sell profitably. Its low prices stimulate faster turnovers and higher sales volumes.
Games Unlimited sells video games. Jamie Carraway, who owns the local store, signed a contract with Games Unlimited and follows strict rules covering her store's operations and the Games Unlimited marketing strategy. She pays that company a fee for promotion it provides as well as commissions on her sales.
Johnson's Health and Beauty Supplies sells cosmetics and other health and beauty products to retailers and salons throughout the greater Centerville area. It owns the goods it sells to these retailer customers, and it provides all the wholesaling functions they need.
Valu Grocer is an independent grocery store that belongs to an organization sponsored by a large food wholesaler. The fifty stores grocery stores that share the Valu Grocer name are linked by contracts that include basic operating procedures, storefront designs, and joint promotion efforts.
Reddy and Sons sells equipment for several different manufacturers of plastic molding in the Centerville area. It earns a commission from each manufacturer on the products it sells for that manufacturer, but it does not take ownership of the equipment it sells nor does it install the equipment.
Katrina's Salon started out as a low-status, low-price, low-margin hair salon 15 years ago. After some success, the company moved into a nicer storefront, raised prices, and now operates in the middle of the market.
Which of these business uses scrambled merchandising as a big part of its strategy?

Accepted Answer

Scrambled merchandising refers to carrying any product lines the modern retailers think they can sell profitably. It includes selling anything they can move in volume and offer them higher margins or faster turnover.

Question 2

Use this information for question that refer to the Centerville Retailers and Wholesalers case. Carol Lamb has lived in Centerville all her life. She owns a retail store that sells hobby and craft supplies. She bought the store after working there for 7 years. Carol has just been asked to head up the Retailers and Wholesaler Group of the Centerville Chamber of Commerce. The most active chamber members in her group are described below:
Walden's Leather is part of a regional chain of stores that sells leather goods--mostly men's and women's clothing--with the upscale Walden's brand name. Walden's primarily relies on its own stores where knowledgeable salespeople offer great service. Walden products are also sold, on a limited basis, in some fine department stores.
Publisher's Helper is a small business started by Audrey Yang that provides and stocks display racks for paperback books and magazines. Most retailers welcome the service Audrey provides, in part because she does her own research to determine which paperback books and magazines sell best in Centerville.
Cuzco's is Centerville's alternative to Walmart. The store sells a wide variety of merchandise. The company used to concentrate its product mix on small appliances--but now Cuzco's carries any product that it can sell profitably. Its low prices stimulate faster turnovers and higher sales volumes.
Games Unlimited sells video games. Jamie Carraway, who owns the local store, signed a contract with Games Unlimited and follows strict rules covering her store's operations and the Games Unlimited marketing strategy. She pays that company a fee for promotion it provides as well as commissions on her sales.
Johnson's Health and Beauty Supplies sells cosmetics and other health and beauty products to retailers and salons throughout the greater Centerville area. It owns the goods it sells to these retailer customers, and it provides all the wholesaling functions they need.
Valu Grocer is an independent grocery store that belongs to an organization sponsored by a large food wholesaler. The fifty stores grocery stores that share the Valu Grocer name are linked by contracts that include basic operating procedures, storefront designs, and joint promotion efforts.
Reddy and Sons sells equipment for several different manufacturers of plastic molding in the Centerville area. It earns a commission from each manufacturer on the products it sells for that manufacturer, but it does not take ownership of the equipment it sells nor does it install the equipment.
Katrina's Salon started out as a low-status, low-price, low-margin hair salon 15 years ago. After some success, the company moved into a nicer storefront, raised prices, and now operates in the middle of the market.
Which of these businesses best fits the definition of a limited-line store?

Accepted Answer

Limited-line stores specialize in certain lines of related products rather than a wide assortment; they specialize not only in a single line such as clothing, but also in a limited line within the broader line. Within the clothing line, a retailer might carry only shoes, formal wear, or even neckties.

Question 3

Use this information for question that refer to the Centerville Retailers and Wholesalers case. Carol Lamb has lived in Centerville all her life. She owns a retail store that sells hobby and craft supplies. She bought the store after working there for 7 years. Carol has just been asked to head up the Retailers and Wholesaler Group of the Centerville Chamber of Commerce. The most active chamber members in her group are described below:
Walden's Leather is part of a regional chain of stores that sells leather goods--mostly men's and women's clothing--with the upscale Walden's brand name. Walden's primarily relies on its own stores where knowledgeable salespeople offer great service. Walden products are also sold, on a limited basis, in some fine department stores.
Publisher's Helper is a small business started by Audrey Yang that provides and stocks display racks for paperback books and magazines. Most retailers welcome the service Audrey provides, in part because she does her own research to determine which paperback books and magazines sell best in Centerville.
Cuzco's is Centerville's alternative to Walmart. The store sells a wide variety of merchandise. The company used to concentrate its product mix on small appliances--but now Cuzco's carries any product that it can sell profitably. Its low prices stimulate faster turnovers and higher sales volumes.
Games Unlimited sells video games. Jamie Carraway, who owns the local store, signed a contract with Games Unlimited and follows strict rules covering her store's operations and the Games Unlimited marketing strategy. She pays that company a fee for promotion it provides as well as commissions on her sales.
Johnson's Health and Beauty Supplies sells cosmetics and other health and beauty products to retailers and salons throughout the greater Centerville area. It owns the goods it sells to these retailer customers, and it provides all the wholesaling functions they need.
Valu Grocer is an independent grocery store that belongs to an organization sponsored by a large food wholesaler. The fifty stores grocery stores that share the Valu Grocer name are linked by contracts that include basic operating procedures, storefront designs, and joint promotion efforts.
Reddy and Sons sells equipment for several different manufacturers of plastic molding in the Centerville area. It earns a commission from each manufacturer on the products it sells for that manufacturer, but it does not take ownership of the equipment it sells nor does it install the equipment.
Katrina's Salon started out as a low-status, low-price, low-margin hair salon 15 years ago. After some success, the company moved into a nicer storefront, raised prices, and now operates in the middle of the market.
Which of these businesses is a franchise?

Accepted Answer

In a franchise operation, the franchisor develops a good marketing strategy for the retail franchise holders to carry out in their own units. Each franchise holder benefits from the larger company's experience, buying power, promotion, and image and pays commissions and fees.

Question 4

Use this information for question that refer to the Centerville Retailers and Wholesalers case. Carol Lamb has lived in Centerville all her life. She owns a retail store that sells hobby and craft supplies. She bought the store after working there for 7 years. Carol has just been asked to head up the Retailers and Wholesaler Group of the Centerville Chamber of Commerce. The most active chamber members in her group are described below:
Walden's Leather is part of a regional chain of stores that sells leather goods--mostly men's and women's clothing--with the upscale Walden's brand name. Walden's primarily relies on its own stores where knowledgeable salespeople offer great service. Walden products are also sold, on a limited basis, in some fine department stores.
Publisher's Helper is a small business started by Audrey Yang that provides and stocks display racks for paperback books and magazines. Most retailers welcome the service Audrey provides, in part because she does her own research to determine which paperback books and magazines sell best in Centerville.
Cuzco's is Centerville's alternative to Walmart. The store sells a wide variety of merchandise. The company used to concentrate its product mix on small appliances--but now Cuzco's carries any product that it can sell profitably. Its low prices stimulate faster turnovers and higher sales volumes.
Games Unlimited sells video games. Jamie Carraway, who owns the local store, signed a contract with Games Unlimited and follows strict rules covering her store's operations and the Games Unlimited marketing strategy. She pays that company a fee for promotion it provides as well as commissions on her sales.
Johnson's Health and Beauty Supplies sells cosmetics and other health and beauty products to retailers and salons throughout the greater Centerville area. It owns the goods it sells to these retailer customers, and it provides all the wholesaling functions they need.
Valu Grocer is an independent grocery store that belongs to an organization sponsored by a large food wholesaler. The fifty stores grocery stores that share the Valu Grocer name are linked by contracts that include basic operating procedures, storefront designs, and joint promotion efforts.
Reddy and Sons sells equipment for several different manufacturers of plastic molding in the Centerville area. It earns a commission from each manufacturer on the products it sells for that manufacturer, but it does not take ownership of the equipment it sells nor does it install the equipment.
Katrina's Salon started out as a low-status, low-price, low-margin hair salon 15 years ago. After some success, the company moved into a nicer storefront, raised prices, and now operates in the middle of the market.
Which of the following terms best describes Publisher's Helper business?

Accepted Answer

Rack jobbers display the products on their own wire racks. They can be relied on to decide which paperback books or magazines to sell. The wholesaler knows which titles sell in the local area and applies that knowledge in many stores.

Question 5

Use this information for question that refer to the Centerville Retailers and Wholesalers case. Carol Lamb has lived in Centerville all her life. She owns a retail store that sells hobby and craft supplies. She bought the store after working there for 7 years. Carol has just been asked to head up the Retailers and Wholesaler Group of the Centerville Chamber of Commerce. The most active chamber members in her group are described below:
Walden's Leather is part of a regional chain of stores that sells leather goods--mostly men's and women's clothing--with the upscale Walden's brand name. Walden's primarily relies on its own stores where knowledgeable salespeople offer great service. Walden products are also sold, on a limited basis, in some fine department stores.
Publisher's Helper is a small business started by Audrey Yang that provides and stocks display racks for paperback books and magazines. Most retailers welcome the service Audrey provides, in part because she does her own research to determine which paperback books and magazines sell best in Centerville.
Cuzco's is Centerville's alternative to Walmart. The store sells a wide variety of merchandise. The company used to concentrate its product mix on small appliances--but now Cuzco's carries any product that it can sell profitably. Its low prices stimulate faster turnovers and higher sales volumes.
Games Unlimited sells video games. Jamie Carraway, who owns the local store, signed a contract with Games Unlimited and follows strict rules covering her store's operations and the Games Unlimited marketing strategy. She pays that company a fee for promotion it provides as well as commissions on her sales.
Johnson's Health and Beauty Supplies sells cosmetics and other health and beauty products to retailers and salons throughout the greater Centerville area. It owns the goods it sells to these retailer customers, and it provides all the wholesaling functions they need.
Valu Grocer is an independent grocery store that belongs to an organization sponsored by a large food wholesaler. The fifty stores grocery stores that share the Valu Grocer name are linked by contracts that include basic operating procedures, storefront designs, and joint promotion efforts.
Reddy and Sons sells equipment for several different manufacturers of plastic molding in the Centerville area. It earns a commission from each manufacturer on the products it sells for that manufacturer, but it does not take ownership of the equipment it sells nor does it install the equipment.
Katrina's Salon started out as a low-status, low-price, low-margin hair salon 15 years ago. After some success, the company moved into a nicer storefront, raised prices, and now operates in the middle of the market.
Which of these businesses best fits the definition of a limited-function merchant wholesaler?

Accepted Answer

Publisher's Helper is a rack jobber. It provides only some wholesaling functions.

Question 6

Traditionally, auction companies would MOST likely be used for:

Accepted Answer

Traditionally auction companies are important in certain lines such as livestock, antique furniture, fur, tobacco, and used cars where demand and supply conditions change rapidly.

Question 7

Use this information for question that refer to the Centerville Retailers and Wholesalers case. Carol Lamb has lived in Centerville all her life. She owns a retail store that sells hobby and craft supplies. She bought the store after working there for 7 years. Carol has just been asked to head up the Retailers and Wholesaler Group of the Centerville Chamber of Commerce. The most active chamber members in her group are described below:
Walden's Leather is part of a regional chain of stores that sells leather goods--mostly men's and women's clothing--with the upscale Walden's brand name. Walden's primarily relies on its own stores where knowledgeable salespeople offer great service. Walden products are also sold, on a limited basis, in some fine department stores.
Publisher's Helper is a small business started by Audrey Yang that provides and stocks display racks for paperback books and magazines. Most retailers welcome the service Audrey provides, in part because she does her own research to determine which paperback books and magazines sell best in Centerville.
Cuzco's is Centerville's alternative to Walmart. The store sells a wide variety of merchandise. The company used to concentrate its product mix on small appliances--but now Cuzco's carries any product that it can sell profitably. Its low prices stimulate faster turnovers and higher sales volumes.
Games Unlimited sells video games. Jamie Carraway, who owns the local store, signed a contract with Games Unlimited and follows strict rules covering her store's operations and the Games Unlimited marketing strategy. She pays that company a fee for promotion it provides as well as commissions on her sales.
Johnson's Health and Beauty Supplies sells cosmetics and other health and beauty products to retailers and salons throughout the greater Centerville area. It owns the goods it sells to these retailer customers, and it provides all the wholesaling functions they need.
Valu Grocer is an independent grocery store that belongs to an organization sponsored by a large food wholesaler. The fifty stores grocery stores that share the Valu Grocer name are linked by contracts that include basic operating procedures, storefront designs, and joint promotion efforts.
Reddy and Sons sells equipment for several different manufacturers of plastic molding in the Centerville area. It earns a commission from each manufacturer on the products it sells for that manufacturer, but it does not take ownership of the equipment it sells nor does it install the equipment.
Katrina's Salon started out as a low-status, low-price, low-margin hair salon 15 years ago. After some success, the company moved into a nicer storefront, raised prices, and now operates in the middle of the market.
Which of these businesses relies on the mass-merchandising concept?

Accepted Answer

Mass-merchandising concept says that retailers should offer low prices to get faster turnover and greater sales volumes by appealing to larger markets.

Question 8

Auction sites are now popular for:

Accepted Answer

Auction sites are a convenient and popular approach for buying and selling many different types of products.

Question 9

Use this information for question that refer to the Centerville Retailers and Wholesalers case. Carol Lamb has lived in Centerville all her life. She owns a retail store that sells hobby and craft supplies. She bought the store after working there for 7 years. Carol has just been asked to head up the Retailers and Wholesaler Group of the Centerville Chamber of Commerce. The most active chamber members in her group are described below:
Walden's Leather is part of a regional chain of stores that sells leather goods--mostly men's and women's clothing--with the upscale Walden's brand name. Walden's primarily relies on its own stores where knowledgeable salespeople offer great service. Walden products are also sold, on a limited basis, in some fine department stores.
Publisher's Helper is a small business started by Audrey Yang that provides and stocks display racks for paperback books and magazines. Most retailers welcome the service Audrey provides, in part because she does her own research to determine which paperback books and magazines sell best in Centerville.
Cuzco's is Centerville's alternative to Walmart. The store sells a wide variety of merchandise. The company used to concentrate its product mix on small appliances--but now Cuzco's carries any product that it can sell profitably. Its low prices stimulate faster turnovers and higher sales volumes.
Games Unlimited sells video games. Jamie Carraway, who owns the local store, signed a contract with Games Unlimited and follows strict rules covering her store's operations and the Games Unlimited marketing strategy. She pays that company a fee for promotion it provides as well as commissions on her sales.
Johnson's Health and Beauty Supplies sells cosmetics and other health and beauty products to retailers and salons throughout the greater Centerville area. It owns the goods it sells to these retailer customers, and it provides all the wholesaling functions they need.
Valu Grocer is an independent grocery store that belongs to an organization sponsored by a large food wholesaler. The fifty stores grocery stores that share the Valu Grocer name are linked by contracts that include basic operating procedures, storefront designs, and joint promotion efforts.
Reddy and Sons sells equipment for several different manufacturers of plastic molding in the Centerville area. It earns a commission from each manufacturer on the products it sells for that manufacturer, but it does not take ownership of the equipment it sells nor does it install the equipment.
Katrina's Salon started out as a low-status, low-price, low-margin hair salon 15 years ago. After some success, the company moved into a nicer storefront, raised prices, and now operates in the middle of the market.
Which of these businesses has followed the wheel of retailing theory?

Accepted Answer

The wheel of retailing theory says that new retailers enter the market as low-status, low-margin, low-price operators and then, if successful, evolve into more conventional retailers offering more services with higher operating costs and higher prices.

Question 10

Use this information for question that refer to the Centerville Retailers and Wholesalers case. Carol Lamb has lived in Centerville all her life. She owns a retail store that sells hobby and craft supplies. She bought the store after working there for 7 years. Carol has just been asked to head up the Retailers and Wholesaler Group of the Centerville Chamber of Commerce. The most active chamber members in her group are described below:
Walden's Leather is part of a regional chain of stores that sells leather goods--mostly men's and women's clothing--with the upscale Walden's brand name. Walden's primarily relies on its own stores where knowledgeable salespeople offer great service. Walden products are also sold, on a limited basis, in some fine department stores.
Publisher's Helper is a small business started by Audrey Yang that provides and stocks display racks for paperback books and magazines. Most retailers welcome the service Audrey provides, in part because she does her own research to determine which paperback books and magazines sell best in Centerville.
Cuzco's is Centerville's alternative to Walmart. The store sells a wide variety of merchandise. The company used to concentrate its product mix on small appliances--but now Cuzco's carries any product that it can sell profitably. Its low prices stimulate faster turnovers and higher sales volumes.
Games Unlimited sells video games. Jamie Carraway, who owns the local store, signed a contract with Games Unlimited and follows strict rules covering her store's operations and the Games Unlimited marketing strategy. She pays that company a fee for promotion it provides as well as commissions on her sales.
Johnson's Health and Beauty Supplies sells cosmetics and other health and beauty products to retailers and salons throughout the greater Centerville area. It owns the goods it sells to these retailer customers, and it provides all the wholesaling functions they need.
Valu Grocer is an independent grocery store that belongs to an organization sponsored by a large food wholesaler. The fifty stores grocery stores that share the Valu Grocer name are linked by contracts that include basic operating procedures, storefront designs, and joint promotion efforts.
Reddy and Sons sells equipment for several different manufacturers of plastic molding in the Centerville area. It earns a commission from each manufacturer on the products it sells for that manufacturer, but it does not take ownership of the equipment it sells nor does it install the equipment.
Katrina's Salon started out as a low-status, low-price, low-margin hair salon 15 years ago. After some success, the company moved into a nicer storefront, raised prices, and now operates in the middle of the market.
Which of these businesses would be classified as a specialty shop?

Accepted Answer

Specialty shops are conventional limited-line stores to sell special types of shopping products, such as high-quality sporting goods, exclusive clothing, etc. They offer a unique product assortment, knowledgeable salesclerks, and better service.

Question 11

Use this information for question that refer to the Centerville Retailers and Wholesalers case. Carol Lamb has lived in Centerville all her life. She owns a retail store that sells hobby and craft supplies. She bought the store after working there for 7 years. Carol has just been asked to head up the Retailers and Wholesaler Group of the Centerville Chamber of Commerce. The most active chamber members in her group are described below:
Walden's Leather is part of a regional chain of stores that sells leather goods--mostly men's and women's clothing--with the upscale Walden's brand name. Walden's primarily relies on its own stores where knowledgeable salespeople offer great service. Walden products are also sold, on a limited basis, in some fine department stores.
Publisher's Helper is a small business started by Audrey Yang that provides and stocks display racks for paperback books and magazines. Most retailers welcome the service Audrey provides, in part because she does her own research to determine which paperback books and magazines sell best in Centerville.
Cuzco's is Centerville's alternative to Walmart. The store sells a wide variety of merchandise. The company used to concentrate its product mix on small appliances--but now Cuzco's carries any product that it can sell profitably. Its low prices stimulate faster turnovers and higher sales volumes.
Games Unlimited sells video games. Jamie Carraway, who owns the local store, signed a contract with Games Unlimited and follows strict rules covering her store's operations and the Games Unlimited marketing strategy. She pays that company a fee for promotion it provides as well as commissions on her sales.
Johnson's Health and Beauty Supplies sells cosmetics and other health and beauty products to retailers and salons throughout the greater Centerville area. It owns the goods it sells to these retailer customers, and it provides all the wholesaling functions they need.
Valu Grocer is an independent grocery store that belongs to an organization sponsored by a large food wholesaler. The fifty stores grocery stores that share the Valu Grocer name are linked by contracts that include basic operating procedures, storefront designs, and joint promotion efforts.
Reddy and Sons sells equipment for several different manufacturers of plastic molding in the Centerville area. It earns a commission from each manufacturer on the products it sells for that manufacturer, but it does not take ownership of the equipment it sells nor does it install the equipment.
Katrina's Salon started out as a low-status, low-price, low-margin hair salon 15 years ago. After some success, the company moved into a nicer storefront, raised prices, and now operates in the middle of the market.
Which of these businesses best fits the definition of a service merchant wholesaler?

Accepted Answer

Service merchant wholesalers own or take title to the products they sell. They provide all the wholesaling functions.

Question 12

Use this information for question that refer to the Centerville Retailers and Wholesalers case. Carol Lamb has lived in Centerville all her life. She owns a retail store that sells hobby and craft supplies. She bought the store after working there for 7 years. Carol has just been asked to head up the Retailers and Wholesaler Group of the Centerville Chamber of Commerce. The most active chamber members in her group are described below:
Walden's Leather is part of a regional chain of stores that sells leather goods--mostly men's and women's clothing--with the upscale Walden's brand name. Walden's primarily relies on its own stores where knowledgeable salespeople offer great service. Walden products are also sold, on a limited basis, in some fine department stores.
Publisher's Helper is a small business started by Audrey Yang that provides and stocks display racks for paperback books and magazines. Most retailers welcome the service Audrey provides, in part because she does her own research to determine which paperback books and magazines sell best in Centerville.
Cuzco's is Centerville's alternative to Walmart. The store sells a wide variety of merchandise. The company used to concentrate its product mix on small appliances--but now Cuzco's carries any product that it can sell profitably. Its low prices stimulate faster turnovers and higher sales volumes.
Games Unlimited sells video games. Jamie Carraway, who owns the local store, signed a contract with Games Unlimited and follows strict rules covering her store's operations and the Games Unlimited marketing strategy. She pays that company a fee for promotion it provides as well as commissions on her sales.
Johnson's Health and Beauty Supplies sells cosmetics and other health and beauty products to retailers and salons throughout the greater Centerville area. It owns the goods it sells to these retailer customers, and it provides all the wholesaling functions they need.
Valu Grocer is an independent grocery store that belongs to an organization sponsored by a large food wholesaler. The fifty stores grocery stores that share the Valu Grocer name are linked by contracts that include basic operating procedures, storefront designs, and joint promotion efforts.
Reddy and Sons sells equipment for several different manufacturers of plastic molding in the Centerville area. It earns a commission from each manufacturer on the products it sells for that manufacturer, but it does not take ownership of the equipment it sells nor does it install the equipment.
Katrina's Salon started out as a low-status, low-price, low-margin hair salon 15 years ago. After some success, the company moved into a nicer storefront, raised prices, and now operates in the middle of the market.
___________ would be classified as an agent wholesaler.

Accepted Answer

Agent wholesalers do not own the products they sell. They operate at relatively low cost, sometimes 2 to 6 percent of their selling price or less. They normally specialize by customer type and by product or product line.

Question 13

Use this information for question that refer to the Centerville Retailers and Wholesalers case. Carol Lamb has lived in Centerville all her life. She owns a retail store that sells hobby and craft supplies. She bought the store after working there for 7 years. Carol has just been asked to head up the Retailers and Wholesaler Group of the Centerville Chamber of Commerce. The most active chamber members in her group are described below:
Walden's Leather is part of a regional chain of stores that sells leather goods--mostly men's and women's clothing--with the upscale Walden's brand name. Walden's primarily relies on its own stores where knowledgeable salespeople offer great service. Walden products are also sold, on a limited basis, in some fine department stores.
Publisher's Helper is a small business started by Audrey Yang that provides and stocks display racks for paperback books and magazines. Most retailers welcome the service Audrey provides, in part because she does her own research to determine which paperback books and magazines sell best in Centerville.
Cuzco's is Centerville's alternative to Walmart. The store sells a wide variety of merchandise. The company used to concentrate its product mix on small appliances--but now Cuzco's carries any product that it can sell profitably. Its low prices stimulate faster turnovers and higher sales volumes.
Games Unlimited sells video games. Jamie Carraway, who owns the local store, signed a contract with Games Unlimited and follows strict rules covering her store's operations and the Games Unlimited marketing strategy. She pays that company a fee for promotion it provides as well as commissions on her sales.
Johnson's Health and Beauty Supplies sells cosmetics and other health and beauty products to retailers and salons throughout the greater Centerville area. It owns the goods it sells to these retailer customers, and it provides all the wholesaling functions they need.
Valu Grocer is an independent grocery store that belongs to an organization sponsored by a large food wholesaler. The fifty stores grocery stores that share the Valu Grocer name are linked by contracts that include basic operating procedures, storefront designs, and joint promotion efforts.
Reddy and Sons sells equipment for several different manufacturers of plastic molding in the Centerville area. It earns a commission from each manufacturer on the products it sells for that manufacturer, but it does not take ownership of the equipment it sells nor does it install the equipment.
Katrina's Salon started out as a low-status, low-price, low-margin hair salon 15 years ago. After some success, the company moved into a nicer storefront, raised prices, and now operates in the middle of the market.
Which of these businesses is a voluntary chain?

Accepted Answer

Voluntary chains are wholesaler-sponsored groups that work with independent retailers. Some are linked by contracts stating common operating procedures and requiring the use of common storefront designs, store names, and joint promotion efforts.

Quiz 12: Retailers, Wholesalers, and Their Strategy Planning

Traditionally, auction companies would MOST likely be used for:

Auction sites are now popular for: