mktg 351 ch 15 test questions

Which of the following is a large-scale, members-only, retailer that combines cash-and-carry wholesaling with discount retailing? (ex. Sam's and CostCo)

Warehouse club

What type of retailers are the primary competitors for specialty retailers?

department stores

Full-service, specialty-line wholesalers that own and maintain displays in discount stores and supermarkets are called

rack jobbers

Lynn Taylor sells Revlon cosmetics on consignment to grocery stores, maintains the display racks, and restocks when necessary. Lynn's job is best described as a

rack jobbers

Which of the following best describes wholesalers?

Organizations or individuals who buy products for resale to government, reseller, producer, and institutional users.

Karen Shapiro has been a buyer for Ocean Mist, a large cranberry processor, for several years. Believing that she knows a great deal about cranberries, their growers, and processors, she decides to go into business for herself. Karen wants to assume no risks of spoilage or price fluctuations. She sees herself as simply bringing the growers and processors together. Her new company would be a

broker

The use of the telephone and other nonpersonal media to introduce products to consumers, who then can purchase the products through the mail, telephone, or the Internet is called

direct marketing

The marketing of products to ultimate consumers through face-to-face sales presentations either at home or the workplace is called

direct selling

When a retailer advertises a product and makes it available for purchase through telephone or mail orders, the retailer is using

direct-response marketing

An arrangement in which a supplier grants a dealer the right to sell products in exchange for some type of consideration is

franchising

Merchant wholesalers can be divided into two basic categories:

full service and limited service

Cigarette manufacturer Philip Morris uses the services of Universal Corporation, the world's largest buyer and processor of leaf tobacco, which provides financing for its customers. This means that Universal is a

full-service wholesaler

Customers rely on ______ for product availability, breaking larger quantities into smaller ones, technical advice and service, financial assistance, and suitable assortments.

full-service wholesalers

The kinds of products being sold and the availability of public transportation are both factors that influence a retailer's decision about

location

Independent intermediaries that represent two or more sellers and usually offer customers complete product lines in a restricted territory are called

manufacturers' agents

The selling of merchandise outside the confines of actual facilities is generally called

non-store retailing

The primary function of most wholesalers is to

perform physical distribution of products from manufacturers to retailers.

Identifying an unserved or underserved market segment and serving it through a strategy that is distinguished in the mind of the consumer is called

retail positioning

Josh tells the loan officer at First Bank and Trust that Clarksville really needs a store that offers high-quality fishing gear to enthusiasts and provides the service and advice that many people want. No other store in the area seems to provide this combination. Josh is trying to use ___________ to support his request for a loan to start such a retail operation.

retail positioning

Any organization that purchases products for the purpose of reselling them to ultimate consumers is a(n)

retailer

Intermediaries owned by manufacturers that sell products and provide support services to the manufacturers' sales forces are known as

sales branches

Laura goes to Walmart and buys some clothing, a DVD, and all the groceries she needs for her family. What type of retailer is this particular Wal-Mart?

superstore

Which type of retail outlet can have up to 200,000 square feet?

superstores

A merchant wholesaler

takes title to goods, assumes risk associated with ownership, and buys and resells products.

Matt's girlfriend tells him she wants a cashmere sweater for Christmas. Matt decides to go to a store that provides the best possible selection of sweaters. His best choice would be to shop at a________ store.

traditional specialty

What is the primary difference between an agent and a broker?

An agent represents a company on a permanent basis while a broker is employed temporarily.

Wal-Mart, Macy's, Nordstrom's, and Toys "R" Us are examples of

retailers

A channel member that markets all of a manufacturer's goods, has authority over price, promotion, and distribution, but does not take title to the product is a

selling agent

A difference between manufacturers' agents and selling agents is that

selling agents do not have the territorial restrictions that manufacturers' agents do.

A store that offers a wide variety of shoes for men, women, and children would most likely be considered a(n)

specialty retailer

A narrow product mix with a deep product line would most likely be carried by

specialty retailers

What type of wholesaler transports a limited line of products directly to customers for immediate inspection and selection?

truck jobbers

Brianna owns and operates a gift and interior store called The Gingerbread House. She works hard to put together beautiful arrangements and displays throughout the store and always features a burning scented candle and light music. She hopes these efforts will encourage her customers to buy more. Brianna is focusing on

atmospherics

While on their family vacation, the Millers realize they left their camera at home. They purchase a disposable camera at an amusement park using their credit card, but never interact with a person. What type of retailing did this transaction most likely involve?

automatic vending

A wholesaler that carries a wide product mix but offers only limited depth within product lines is called a

general merchandise wholesaler

Victor knows that if he decides to buy a franchise, he will most likely have to supply

labor and daily operations

Direct selling, direct marketing, and vending machines are all examples of

retailing

Based on what he has heard regarding the profitability of such items, Paul Goldstein is considering adding a fresh shellfish case in his grocery store. Paul knows very little about this product or the concerns of shoppers who buy shellfish. He is looking for help in display set-up and merchandising ideas. He should contact which of the following types of wholesalers?

specialty line

Retail facilities located in big, low-cost buildings with large on-premise inventories and minimal services are called

warehouse showrooms

The primary purpose of a(n) _____ is to bring buyers and sellers together.

broker

Laura Lucas and Marie Clark own and operate a small restaurant. On a weekly basis, they go to their local Sam's Wholesale Club to purchase the food items and cleaning supplies they need for their business. With the exception of the volume they purchase and the items' intended use, this grocery shopping trip is identical to a weekly trip by their families to a grocery store. Sam's is serving as a ___________ wholesaler for these entrepreneurs.

cash and carry

Andrea owns and operates a small novelty store that sells home décor, gifts, jewelry, and gourmet snacks. Because her business is very small, many wholesalers will not deal with her, so she relies primarily on _____ for the survival of her business.

cash-and-carry wholesalers

The three major types of nonstore retailing are

direct marketing, direct selling, and automatic vending.

Mark Bradley's company takes orders from its collection of retail customers and arranges the shipment of goods directly from manufacturers or other wholesalers to its customers' businesses. Mark is operating as a

drop shipper

Brad operates a wholesale company that specializes in providing a wide variety of services to its customers, which are all restaurants. He carries a wide assortment of restaurant equipment and cookware. Brad's business is a

general-line wholesaler

After shopping in the same store for nearly two hours, Chelsea goes to Burger King for a Whopper, while Cynthia goes to the optical shop to see if her contacts are ready. They engage in these activities without leaving the store in which they have been shopping. They are most likely in a

hypermarket

Merchant wholesalers who specialize in just a few functions and pass others along to other intermediaries or customers are called

limited-service wholesalers

Sherri McRae wants to establish a fashion wholesaling firm. Because of the risks involved in the rapid obsolescence of high-fashion items, Sherri does not want to establish an organization in which she has title to the garments. Which of the following types of wholesale establishments has she ruled out?

merchant wholesaler

The management at Kohler Inc., a manufacturer of sinks, tubs, and other plumbing products, thinks that there will soon be a major growth in home remodeling due to rising interest rates. The management decides to use ___________ in several key cities to provide support services for its sales force in those areas, carry inventory, and offer credit and other services to its retail plumbing customers.

sales branches

A manufacturer-owned operation that provides services usually associated with agents is a

sales office

Veronica Montez works for Bicardi at a location away from the manufacturing plants. She provides wholesale services to wholesale and retail customers, but her facility does not carry inventory. Veronica works at a

sales office