Marketing Chp 15

Which statement concerning food brokers is correct?

a. They often represent the seller. b. They usually earn commissions in excess of 7 percent of sales. c. They work for a large number of competing food producers. d. They generally offer credit.

Which statement about the functions of wholesalers is false?

a. They provide warehouse and delivery facilities. b. They process returns and make adjustments for defective merchandise. c. They do not enable manufacturers to distribute locally unless those firms make customer contacts. d. They provide a ready-made sales force.

Which of these is not an advantage offered by agents and brokers?

a. They take title to goods. b. They have trained salespeople. c. They enable a manufacturer or service provider to expand sales despite limited resources. d. Their selling costs are a predetermined percent of sales.

Which statement about wholesalers is true?

a. Wholesalers dislike it when vendors alter territory assignments. b. Wholesalers want manufacturers to sell through them and not to them. c. Wholesalers do not want training, technical assistance, product literature, and advertising. d. Wholesalers like it when vendors decide to change to a direct channel and perform wholesale functions themselves.

Commission merchants do not

a. assist in merchandising and promotion. b. arrange for the sale of goods in a central market location. c. receive goods on consignment from producers. d. accumulate goods from local markets.

The principal difference between agents and brokers is that

a. brokers receive profits from selling goods they own, whereas agents work for commissions. b. agents are more likely to participate in wholesales cooperatives. c. agents take title to goods, whereas brokers do not. d. brokers are very common in the food industry, whereas agents are not.

Land O'Lakes, Ocean Spray, Sunkist, and Welch's are all examples of

a. cash-and-carry wholesaling. b. producer-owned wholesale cooperatives. c. retailers. d. franchise wholesaling.

Rack jobbers

a. have standardized storefronts, business formats, and purchase systems. b. do not take back unsold merchandise. c. do not own the merchandise on their racks. d. sell products on a consignment basis.

High wholesale sales occur because

a. items can be sold twice on the wholesale level. b. wholesalers service small, final consumer groups. c. there are so few retailers. d. there is only one level of retailing.

The largest category of wholesalers in terms of sales is

a. manufacturer wholesalers. b. merchant wholesalers. c. agent wholesalers. d. broker wholesalers.

Without independent wholesalers, organizational consumers would have to

a. perform fewer distribution functions. b. deal with a number of suppliers and coordinate shipments. c. stock smaller quantities. d. place less emphasis on an internal purchasing agent or department.

Which of the following is not a full-service merchant wholesaler?

a. Franchise wholesalers b. Mail-order wholesalers c. Wholesale cooperatives d. Specialty-merchandise wholesalers

The use of sales offices and/or branch offices is associated with which type of wholesaling?

a. Manufacturer/service provider wholesalers b. Merchant wholesalers c. Agent wholesalers d. Broker wholesalers

Channel control is maximized through which form of wholesaling?

a. Merchant wholesalers b. Manufacturer wholesalers c. Indirect wholesalers d. Global wholesalers

When farm and garden machinery wholesalers begin to sell to florists, hardware dealers, and garden supply stores, which recent trend in wholesaling is being demonstrated?

a. The decline in the size of independent wholesalers b. Gains in productivity c. Diversification of the markets served d. Emphasis on service