Exam 15: Retailers, wholesalers, and Direct Marketers

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Which of the following wholesaling intermediaries delivers goods to the consumers?

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How are retailers classified on the basis of services provided? Give an example for each group.

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Based on the services they provide,retailers are classified into three groups:
1)Self-service: These sell convenience products that people can purchase frequently with little assistance.The AM PM mini-mart is an example of a self-service store.
2)Self-selection: These stores also sell convenience products like self-service stores and provide little assistance to customers.Albertsons and Kroger grocery stores are examples of self-selection stores.
3)Full-service retailers: These stores offer a complete array of customer services.Macy's that focuses on fashion-oriented merchandise is an example of a full-service retailer.

Why do some manufacturers directly distribute their goods to the ultimate consumers? List out the different types of company-owned facilities used by manufacturers for this purpose.

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Several reasons lead manufacturers to distribute their goods directly through company-owned facilities.Some perishable goods need rigid control of distribution to avoid spoilage; other goods require complex installation or servicing.Some goods need aggressive promotion.Goods with high unit values allow profitable sales by manufacturers directly to ultimate purchasers.
Manufacturer-owned facilities used for direct selling of goods to the consumers include:
1)Sales branches: A sales branch carries inventory and processes orders for customers from available stock.Branches provide a storage function like independent wholesalers and serve as offices for sales representatives in their territories.They are prevalent in marketing channels for chemicals,commercial machinery and equipment,and petroleum products.
2)Sales offices: A sales office does not carry inventory,but it does serve as a regional office for a manufacturer's sales personnel.Locations close to the firm's customers help limit selling costs and support effective customer service.
3)Trade fairs: A trade fair is a periodic show at which manufacturers in a particular industry display their wares for visiting retail and wholesale buyers.
4)Merchandise marts: A merchandise mart provides space for permanent showrooms and exhibits,which manufacturers rent to market their goods.

​Marco is a representative for Nationwide Magazines and serves the central southwest region.He provides inventory for a variety of retail stores such as grocery,drug,and convenience stores and is responsible for maintaining the stock and appearance of magazines in the stores.He and his company are known as:

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Wholesaling intermediaries tend to reduce the number of transactions between buyers and sellers.

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Carson cares deeply about the environment and strives to eat clean by choosing foods that are natural and contain no artificial ingredients.When buying fresh produce,he's willing to pay more for organic and loves that organic produce is more widely available - from Fresh Market,Whole Foods,Meijer,Kroger and even Aldi's.He especially likes shopping at Aldi's where he can save money when buying fresh,organic produce.This is an example of:​

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The basic distinction between a company's sales branches and its sales offices is that:

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A _____ is a limited-function wholesaler that markets perishable food items.

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A manufacturer's representative can work only for a single manufacturer.

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A store's exterior appearance,including architectural design,window displays,signs,and entryways:

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Which of the following wholesaling intermediaries carries inventory?

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Chain stores usually obtain merchandise at lower prices from manufacturers compared to their independent rivals.

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Tanisha is the manager of a grocery store in a beach town.During the summer,many vacationers visit the store.Although the store experiences an increase in total revenue during these months,Tanisha believes that she can boost sales further by expanding the grocery store's offerings to include nonfood items that vacationers might need.Tanisha is going to start stocking sunscreen,sand toys,postcards and travel guides,and even some inexpensive beach wear. What marketing strategy does Tanisha's decision best demonstrate?​

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In a(n)_____,inventory changes frequently as customers take advantage of special price offers from manufacturers selling excess merchandise.

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If merchandise selection changes frequently to follow fashion trends,advertising is typically used to promote current styles effectively.

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Infomercials are a form of telemarketing.

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Retailers,when classified on the basis of form of ownership,are grouped as:

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Which of the following is most likely to be true of hypermarkets?

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Many consumers shop for reasons other than just purchasing needed products.

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Match each item with the correct statement below. -_____ are the marketing intermediaries in direct contact with ultimate consumers.

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