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Basic Marketing: A Global Managerial Approach, 10/e

Stanley J. Shapiro
Kenneth B. Wong, Queens School of Business
William D. Perreault, University of North Carolina
E. Jerome McCarthy, Michigan State University

Retailers, Wholesalers and Strategic Distribution

Quiz Questions


1	"Scrambled merchandising" refers to the practice of selling many different types of products in a retail store, even though many of these products have to be sold at a low profit.
		A)	True
		B)	False


2	Unlike franchise operations, which tend to focus on newcomers to retailing, co-operative chains tend to work with existing retailers.
		A)	True
		B)	False


3	A consumer's choice of a retail store appears to be based almost entirely on economic needs.
		A)	True
		B)	False


4	Suppliers often have little negotiating power with Canadian retail chains.
		A)	True
		B)	False


5	The decision to use a wholesaler does not involve a cost.
		A)	True
		B)	False


6	Which of the following is NOT retailing?
		A)	A book wholesaler has a mail-order catalogue that offers discounts to final consumers who buy by mail.
		B)	A vacuum cleaner manufacturer hires its own sales force to sell door-to-door.
		C)	A group of students sell donuts to people passing by their dorm.
		D)	A private tow-truck company tows an accident victim's car to a garage for repair and charges him $100.
		E)	A stationary company sells paper products to a firm that will use them to mail personalized letters to potential customers.


7	From a producer's standpoint, retailers are:
		A)	the last line in an indirect channel of distribution to the final consumer.
		B)	the captains of the various channels of distribution producers use to get their products to final consumers.
		C)	the last link in a direct channel of distribution to final consumers.
		D)	critical to achieving the producer's strategic promotion objectives.
		E)	critical to developing strategic marketing plans.


8	Which of the following is best illustrated by a supermarket that carries Super Nintendo video games?
		A)	target marketing
		B)	mass merchandising
		C)	the "wheel of retailing"
		D)	scrambled merchandising
		E)	sales promotion


9	Co-operative chains are:
		A)	consumer groups who run non-profit buying organizations.
		B)	sponsored by wholesalers to try to compete with corporate chains.
		C)	formed by independent retailers to run their own buying organizations and conduct joint promotions efforts.
		D)	experiencing declining sales.
		E)	all of the above.


10	Independent retailers represent:
		A)	the vast majority of retail sales for most producers—generally 85 percent.
		B)	a small portion of sales for most producers—on average, less than 25 percent.
		C)	about half of most producers' retail sales.
		D)	three-quarters of small producers' retail sales.
		E)	none of the above.


11	In recent years, changes in the social and cultural environment have had a significant effect on door-to-door selling. Which of the following is the MOST likely given the changes that have occurred?
		A)	Avon Cosmetics has found it needed a larger door-to-door sales force because career families have more income and more demand.
		B)	Fuller Brush has seen a dramatic increase in profits from its door-to-door selling operations.
		C)	Sarah Coventry Jewelry has started distributing its product through jewellery stores because of the difficulties of finding someone at home during the day.
		D)	None of the above.


12	Many U.S. chains have been attracted to Canada in recent years and:
		A)	they have all done well, stealing most customers from their local competitors.
		B)	they have been met by defensive marketing action from established Canadian firms, causing some of the American retailers to scale back their expansion plans.
		C)	they have had to fight existing government regulations regarding foreign ownership in the retail industry.
		D)	they have had no difficulty in penetrating this market due to the lack of aggressiveness and sophistication on the part of our current retail managers.
		E)	they have been well received by local governments because they can be fairly certain to draw customers and their spending money to an area from another community.


13	The annual dollar volume of Canadian retail sales is approximately:
		A)	$100 million.
		B)	$250 million.
		C)	$100 billion.
		D)	$250 billion.
		E)	$250 trillion.


14	With regard to the marketing environment for retailers:
		A)	municipal, provincial, and federal laws all impact the retailing industry.
		B)	local culture and tourism all have to be taken into account in determining such policies as store hours.
		C)	retailers must know the direct competition that exists in their trading area and be familiar with their business strategies.
		D)	retailers must know the indirect competition that exists in their trading area and be familiar with their business strategies.
		E)	all of the above.


15	The price variable in the retail marketing mix involves:
		A)	the price marked on each item.
		B)	regular resale prices and feature prices.
		C)	the perceived value of the item.
		D)	the perceived value of the item relative to its quality.
		E)	the retail price of the item relative to its quality.


16	Scanners at the checkout, the Interac direct payment system, and EDI are all examples of:
		A)	new technologies that improve the interaction between retailers and their customers.
		B)	new technologies that are helping retailers become "captains" of channels of distribution.
		C)	means to improve consumer pricing and servicing.
		D)	developments that are influencing how retailers deal with their customers and their suppliers.
		E)	developments that are causing outside agencies to have an increasingly greater influence on how retailers manage their business.


17	Regarding wholesalers, which of the following is the most numerous?
		A)	limited function wholesalers
		B)	manufacturers' sales branches
		C)	merchant wholesalers
		D)	service wholesalers
		E)	agent intermediaries


18	National Electronic Supply (NES) stocks electronic repair parts and related supplies and tools from various producers. NES sells primarily to small TV and electronic repair shops throughout the country that only want to order one or two items at a time. Orders are usually shipped out on UPS trucks. It appears that NES is a:
		A)	drop-shipper.
		B)	truck wholesaler.
		C)	rack jobber.
		D)	single-line wholesaler.
		E)	manufacturers' agent


19	Which of the following products is most likely to be sold by a drop-shipper?
		A)	greeting cards
		B)	printing supplies
		C)	coal
		D)	skis
		E)	mouthwash


20	Alice Chun is just staring as a rack jobber. She will:
		A)	need a lot of money to get started, since her customers will expect 90 days to pay their bills.
		B)	not have to know much about the preferences of the customers who buy the products she handles.
		C)	never actually handle or deliver the products in her line.
		D)	probably get tired of visiting customers in their homes.
		E)	do what a lot of grocery store managers don't want to do.

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