Exam 15: Retailing, Direct Marketing and Wholesaling

Your friend Bill comes to you for advice because of your amazing business prowess. He would like to start his own business, but he is concerned about the high failure rate. If possible, he would like to mitigate his risk somewhat. He also has limited capital and not much business experience. You recommend that Bill consider opening a _______________, but you warn him that one disadvantage to doing so is that he would have _____________.

Agents and brokers perform more functions than limited-service wholesalers.

Warehouse showrooms are able to sell products at low prices by passing some of their marketing functions on to consumers.

You are playing a marketing trivia game similar to Jeopardy. Your job is to identify the correct form of nonstore retailing that would work best for an inexpensive nail polish product. The marketer of the nail polish has specific criteria he wants to meet. You are provided with the following: 1. The product does not have high enough margins to warrant sales personnel. 2) The marketer wants the product to be sold in high-traffic areas so that consumers can pick up the nail polish out of convenience. Based on these two criteria, which of the following would be the best type of nonstore retailing for the nail polish product?

When products are presented to television viewers, who can purchase them by calling a toll-free number and paying with a credit card, ____ is being used.

The classification of wholesalers in the text is based solely on the performance of marketing activities.

Extreme-value stores are a fraction of the size of conventional discount stores.

Compare the services wholesalers provide for producers with the services they provide to retailers.

Thad works for a company that markets all of Celetron's products. Thad's company acts as the marketing department for Celetron, performing all marketing functions without actually taking title to the goods. Thad's company is a

Limited-service wholesalers provide only some marketing services and specialize in a few functions.

In contrast to industrial products, consumer products are often purchased because of

Scenario 15.1 Use the following to answer the questions. Landry Restaurants, Inc. owns a number of different franchised restaurants, including the Rain Forest Cafe and their recent addition, the T-Rex Cafe. Both the Rain Forest and T-Rex restaurants differentiate themselves from their competitors by offering a unique dining experience. At the Rain Forest Cafe you can dine under a ceiling of lush tropical forest plants while you are viewing the enormous aquarium with exotic fish. Periodically, the rain forest explodes with the sound of waterfalls and birds. Giant stuffed monkeys, parrots, and other jungle creatures are planted within the landscape. The Rain Forest Cafe also contains a gift shop, where customers can purchase T-shirts, hats, and other items emblazoned with the Rain Forest logo. The newer T-Rex Cafe has a similar approach to the uniqueness of the dining experience. The T-Rex Cafe offers guests a hands-on prehistoric experience, including educational, interactive computer screens. Customers can also pan for precious gems and fossils in Discovery Creek or feast on food from the Kitchen of Fire. The T-Rex Cafe also has a gift shop, where customers can purchase items with the T-Rex logo or build their very own stuffed dinosaur, through "Build-a-Dino" by the "Build-a-Bear" franchise. Refer to Scenario 15.1. The lush tropical plants and aquarium represent the ____ of the Rain Forest Cafe.

Franchised outlets are generally less successful than independently-owned businesses.

Chandra has extensive contacts in the real estate business and brings together buyers and sellers. Although she assumes no risks, she can offer specialized knowledge about real estate. Chandra is a

An agent that receives goods on consignment from local sellers and negotiates sales in large, central markets is called a

Laura and Marie 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.

Franchisees do not pay to use the franchisor's name.

The franchisor supplies the labor and capital in the franchise relationship.

A difference between manufacturers' agents and selling agents is that

In Cara's hometown, there is a mall with a small Sears store, a Macy's department store, a couple of fast-food restaurants, a few specialty shops, and some convenience stores. The mall features seasonal sidewalk sales and boat shows. This mall is most likely a ____ shopping center.