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Flashcard Deck
1 Flashcard Deck
Retailing and Wholesaling
Study
Retailing involves selling products or services directly to final consumers for their personal nonbusiness use.
True
Most retailing is done by businesses whose sales come primarily from retailing.
True - RETAILERS - A business whose sales come primarily from retailing
Retailers reach consumers at key moments of truth ultimately influencing their actions at the point of purchase.
True
Shopper marketing focuses the entire marketing process toward turning shoppers into buyers as they approach the point of sale.
True
Shopper marketing emphasises using instore promotions and advertising to extend brand equity to the last mile.
True
Shopper marketing suggests that marketing efforts should be coordinated around the shopping process itself.
True
The First Moment of Truth is the critical three to seven seconds that a shopper considers a product on a store shelf.
True
The retailing moment of truth no longer takes place only in stores, as online and mobile shopping have added new dimensions to shopper marketing.
True
Consumers today are increasingly omnichannel buyers who make little distinction between instore and online shopping.
True
Consumers make little distinction between instore and online shopping.
True
Shopper marketing is only about instore buying.
False
Most retailing is still done in retail stores.
True
Online and mobile shopping have been growing faster than store retailing.
True
Shopper marketing is about using instore promotions and advertising to extend brand equity to the last mile and encourage favorable in-store purchase decisions.
True
Influencing consumer buying decisions as they shop now involves efforts aimed at online search and in-store online and mobile shopping.
True
Specialty store carries a narrow product line with a deep assortment and includes examples like clothing stores, sporting goods stores, furniture stores, florists, and bookstores.
True
Department store carries several product lines typically clothing, home furnishings, and household goods with each line operated as a separate department.
True
Supermarket is a relatively large, low-cost, low-margin, high-volume self-service operation designed to serve the consumer's total needs for grocery and household products.
True
Convenience store is a relatively small store located near residential areas, open long hours seven days a week, and carries a limited line of high-turnover convenience products at slightly higher prices.
True
Discount store carries standard merchandise sold at lower prices with lower margins and higher volumes.
True
Off-price retailer sells merchandise bought at less-than-regular wholesale prices and sold at less than retail. This includes factory outlets, independent off-price retailers, and warehouse or wholesale clubs selling a limited selection of brand-name groceries, appliances, clothing, and other goods at deep discounts to consumers who pay membership fees.
True
Superstores are very large stores traditionally aimed at meeting consumers' total needs for routinely purchased food and non-food items. This category includes supercenters, combined supermarket and discount stores, and category killers.
True
A very large store traditionally aimed at meeting consumers' total needs for routinely purchased food and non-food items falls under the category of superstores. This category includes supercenters, combined supermarket and discount stores, and category killers which carry a deep assortment in a particular category like Tesco Superstores UK, Auchan and Carrefour hypermarkets in Europe, and Walmart Supercenter, SuperTarget, Meijer discount stores in the US.
True
The amount of service varies for different types of customers and products, and retailers may offer one of three service levels: self-service, limited service, and full service.
True
Self-service retailers serve customers who are willing to perform their own locate, compare, select, and checkout process to save time or money.
True
Self-service is the basis of all discount operations and is typically used by retailers selling convenience goods such as supermarkets and nationally branded fast-moving shopping goods.
True
Limited service retailers, such as PCWorld or Halfords, provide more sales assistance because they carry more goods like electrical goods, motoring, and cycling products.
True
Full-service retailers provide more services resulting in much higher operating costs which are normally passed along to customers as higher prices. (True/False)
True
Customers shopping at full-service retailers do not need or want assistance or advice. (True/False)
False, Customers need or want assistance or advice.
Specialty stores usually carry narrow product lines with shallow assortments within those lines. (True/False)
False, Specialty stores carry narrow product lines with deep assortments within those lines.
Factory outlets consist primarily of manufacturers outlets and value retail centres combine manufacturers outlets with off-price retail stores and department store clearance outlets.
False
Warehouse clubs offer few frills but they offer ultra-low prices.
True
Factory outlet is an off-price retailing operation that is owned and operated by a manufacturer and normally carries the manufacturers surplus, discontinued, or irregular goods.
True
Warehouse club sells a limited selection of brand name grocery items, appliances, clothing, and other goods at deep discounts to members who pay annual membership fees.
True
Corporate chains or multiples are two or more outlets that are commonly owned and controlled.
True
Voluntary chain is a wholesaler-sponsored group of independent retailers that engages in group buying and common merchandising.
True
Retailer cooperative is a group of independent retailers that bands together to set up a jointly owned central wholesale operation and conduct joint merchandising and promotion efforts.
True
Franchise organizations are similar to voluntary chains and retailer cooperatives.
False
Franchise systems are normally based on unique products or services, a method of doing business, or the trade name goodwill or patent that the franchisor has developed.
True
Corporate chains appear only in department stores, discount stores, food stores, drug stores, and restaurants.
False
Franchises have sprung up to meet just about any need.
True
McDonald's is a franchise with more than 34000 stores in 118 countries.
True
Retailers are always searching for new marketing strategies to attract and hold customers.
True
Retail assortments and services are looking more and more alike.
True
Many manufacturers have placed their brands almost everywhere to drive for volume.
True
Customers have become smarter and more price sensitive.
True
It's more difficult for any one retailer to offer exclusive merchandise due to the availability of brands in multiple stores.
True
Service differentiation among retailers has eroded.
True
Customers see no reason to pay more for identical brands when service differences are shrinking.
True
Many retailers are struggling to compete in the current retail landscape.
True
True or False: Merchandise Service differentiation among retailers has eroded.
False. Many department stores have trimmed their services while discounters have increased theirs.
True or False: Customers have become less price sensitive.
False. Customers have become smarter and more price-sensitive.
True or False: Retailers must segment and define their target markets before making consistent decisions about product assortment, services, pricing, and advertising.
True
Retailers must decide on three major product variables: product assortment, services mix, and store atmosphere.
True
One strategy for retailers is to offer merchandise that no other competitor carries, such as store brands or manufacturer brands on which it holds exclusives.
True
Department store like John Lewis may get exclusive rights to carry a well-known designers labels and offer its own private-label lines.
True
Some retailers differentiate themselves by featuring blockbuster merchandising events, such as running spectacular shows featuring goods from a certain country.
True
One way a retailer can differentiate itself is by offering a highly targeted product assortment, such as extra large clothing sizes or an unusual assortment of gadgets and gifts.
True
Services mix can help set one retailer apart from another, such as inviting customers to ask questions or consult service representatives in person or via phone or keyboard.
True
The store's atmosphere is another important element in the reseller's product arsenal.
False
Retailers desire to create a unique store experience, one that suits the target market and moves customers to buy.
True
Many retailers practice experiential retailing.
True
In the US, consumers can get hands-on experience with merchandise before buying it at recreational equipment stores.
TRUE
The surge in online and mobile shopping has not changed retail customer behaviors and expectations.
FALSE Correct Answer: The surge in online and mobile shopping has changed retail customer behaviors and expectations.
Retailers like Apple and Audi are not merging the physical and digital worlds to create new-age experiential retail environments.
FALSE Correct Answer: Retailers like Apple and Audi are merging the physical and digital worlds to create new-age experiential retail environments.
Retailers carefully orchestrate every aspect of the consumer store experience to shape the customer's shopping experience.
True
Retailers choose the colors in their logos and interiors carefully to convey specific associations.
True
Scents in retail stores are uncommon and do not affect customer dwell times or buying behavior.
False
Developing a signature fragrance for a store is similar to creating a message for print or radio advertising.
True
Retail stores are simply assortments of goods and do not offer an experiential environment for customers.
False
Retail establishments do not serve as small communities or gathering places for people.
False
All retailers aim for high markups and high volume simultaneously.
False
Retailers such as Chanel, Prada, and Hermes practice highlow pricing strategy.
FALSE: The retailers use upmarket pricing strategy with luxury goods.
Some retailers compete on quality rather than on price.
TRUE: Some retailers choose to compete on product and service quality rather than on price, like Harvey Nichols.
Retailers use all five promotion tools: - advertising - personal selling - sales promotion - public relations (PR) - direct and social media marketing
True
Store salespeople only greet and meet customers' needs
False, they also build relationships
Sales promotions may include in-store demonstrations, displays, and loyalty programs
True
Retailers do not interact digitally with consumers
False, most retailers maintain a full social media presence
Digital promotions allow retailers to reach individual customers with carefully targeted messages
True
Retailers can settle for any location they can find or afford
False, they have to select locations accessible to the target market and consistent with the retailer's positioning
Large retailers usually employ specialists to select store locations using advanced methods
True
Stores today cluster together to decrease customer pulling power
False, they cluster together to increase customer pulling power and give consumers the convenience of one-stop shopping
City centers have experienced a revival in recent years
True
A shopping centre is a group of retail businesses built on a site that is planned, developed, owned, and managed as a unit.
TRUE
A regional shopping centre or regional shopping mall can contain less than 50 stores.
FALSE
A community shopping centre contains between 20 and 50 retail stores.
FALSE
Most shopping centres are neighborhood shopping centres or strip malls that generally contain between 10 and 20 stores.
FALSE
Power centres are enclosed shopping centers with a long strip of retail stores and no freestanding anchors.
FALSE
Power centres are smaller open-air malls with upscale stores and non-retail activities.
False, the correct answer is lifestyle centres.
Traditional regional shopping malls are primarily places to shop.
False, the correct answer is they are more like places to hang out.
The rise of the supermall is not at the expense of smaller secondary centres.
False, the correct answer is at the expense of smaller secondary centres.
European shopping centre types are a direct replication of the American model.
False, the correct answer is there will be examples of each of the shopping center types in each country varying from local shopping areas to major regional centres and malls.
There will be a direct replication of the American model in each European country.
false, The correct answer is: European countries vary in shopping centre types and developments.
It is feasible to generalise about shopping centre types and developments Europewide.
false, The correct answer is: Marketers need to look closely at differences between countries regarding retail developments.
Retailing trends and developments are consistent across the countries in Europe.
false, The correct answer is: Retail structures vary considerably across European countries.
Retailers do not need to choose target segments carefully to be successful.
false, The correct answer is: Retailers need to choose target segments carefully to be successful.
Economic downturn has not affected retailer fortunes significantly.
false, The correct answer is: Economic downturn has turned many retailers' fortunes from boom to bust.
Big discounters like Aldi and Poundland face tough times due to tighter consumer spending.
false, The correct answer is: Big discounters like Aldi and Poundland benefit from economic downturn and gain new business.
Lower-priced fast-food chains do not benefit from tighter consumer spending.
false, The correct answer is: Lower-priced fast-food chains like McDonalds have taken business from pricier eating-out competitors.
Some large retailers have not declared bankruptcy and closed over recent years.
false, The correct answer is: Some large familiar retailers have declared bankruptcy and closed over recent years.
Retailers use all five promotion tools: advertising, personal selling, sales promotion, public relations (PR), and direct and social media marketing.
True
Retailers use six promotion tools: advertising, personal selling, sales promotion, public relations (PR), direct, and print media marketing.
False. The correct answer is: Retailers use five promotion tools: advertising, personal selling, sales promotion, public relations (PR), and direct and social media marketing.
Store salespeople only greet customers and meet their needs but do not build relationships.
False. The correct answer is: Store salespeople greet customers, meet their needs, and build relationships.
PR activities for retailers may include new store openings, special events, newsletters, and blogs, but do not include store magazines and public service activities.
False. The correct answer is: PR activities for retailers include new store openings, special events, newsletters, blogs, store magazines, and public service activities.
Almost every retailer, large or small, maintains a minimal social media presence.
False. The correct answer is: Almost every retailer, large or small, maintains a full social media presence.
Shopping center is a group of retail businesses built on a site that is planned, developed, owned and managed as a unit.
True
A regional shopping mall can have from 5 to 15 stores.
False Correct Answer: A regional shopping mall can have from 50 to more than 100 stores.
Power centers are huge unenclosed shopping centers consisting of a long strip of retail stores including large stores acting as freestanding anchors.
True
Lifestyle centers are larger enclosed malls with upscale stores and non-retail activities.
False Correct Answer: Lifestyle centers are smaller open-air malls with upscale stores and non-retail activities.
Retailers use all five promotion tools: advertising, personal selling, sales promotion, public relations (PR), and direct and social media marketing.
True
Advertising may be supported by newspaper inserts and catalogues.
True
Store salespeople meet customer needs and build relationships.
True
Sales promotions may include in-store demonstrations, displays, sales, and loyalty programs.
True
Most retailers interact digitally with consumers using websites, digital catalogues, online ads, social media, mobile ads, apps, blogs, and email.
True
Location is not a critical factor in retailing success.
False, Location is a critical factor in retailing success.
Small retailers employ specialists to select store locations.
False, Large retailers usually employ specialists to select store locations.
Most stores today do not cluster together to increase customer pulling power.
False, Most stores today cluster together to increase customer pulling power.
City centres were not the main form of retail cluster until the 1950s.
False, City centres were the main form of retail cluster until the 1950s.
City centres with their traffic, parking, and crime problems began to gain business,
False, City centres with their traffic, parking, and crime problems began to lose business.
A shopping centre is a group of retail businesses built on a site that is planned developed owned and managed as a unit.
True
The most complex differentiation between different levels and types of shopping centres is shown in American retailing.
False. It is shown in European retailing.
A community shopping centre contains between 15 and 50 retail stores including a branch of a department store or variety store, a supermarket, specialty stores, professional offices, and sometimes a bank.
True
Most shopping centres are neighborhood shopping centres or strip malls that generally contain between 5 and 15 stores.
True
Power centers are huge unenclosed shopping centres consisting of a long strip of retail stores including large stores acting as freestanding anchors.
True
Lifestyle centers are smaller open-air malls with upscale stores, convenient locations, and non-retail activities.
True
Retail businesses built on a site that is planned, developed, owned, and managed as a unit
Power centre
Lifestyle centres are smaller open-air malls with upscale stores, convenient locations, and non-retail activities such as a playground, skating rink, hotel, dining establishments, and a cinema complex
True
Traditional regional shopping malls are now morphing into hybrid lifestyle-power centres that combine the convenience and community feel of a neighborhood centre with the brute force of a power centre
False: Hybrid neighborhood centres
Shopping centres are more like places to hang out rather than just places to shop
True
Giant retail centres are attracting visitors with a mix of leisure and entertainment facilities as well as shops
True
Retail developments in Europe can be generalized across all countries.
False. Marketers need to recognize that retail structures vary considerably across the countries in Europe.
Retailers face a slow-changing environment with few threats and opportunities.
False. Retailers operate in a harsh and fast-changing environment which offers both threats and opportunities.
Consumer spending patterns have remained the same despite economic downturn and recession.
False. Economic downturn and recession have changed consumer spending patterns, leading to tighter consumer spending.
Cost-cutting and price promotions are the only strategies that retailers use to lure customers back during economic difficulties.
False. Retailers have also added new value pitches to their positioning.
Drastic price discounting leads to long-term customer loyalty.
False. Drastic price discounting does not breed loyalty.
Retailers like Waitrose should focus on cost-cutting and price reductions to compete with discounters like Tesco.
False. Retailers like Waitrose should focus on building greater customer value within their long-term store positioning strategies.
New retail forms continue to emerge, but the life cycle of new retail forms is getting longer.
False. The life cycle of new retail forms is getting shorter.
Department stores took about 10 years to reach the mature stage of the life cycle.
False. Department stores took about 100 years to reach the mature stage of the life cycle.
Of the top 10 discount retailers in 1962, all of them still exist today.
False. Of the top 10 discount retailers in 1962, not one exists today.
The most recent retailing trend is the decline of online retailing.
False. The most recent retailing trend is the advent of online retailing by both online-only and bricks-and-mortar retailers.
Popup shops are only used for promoting edgy fashion and low-quality electrical goods.
False. Popup shops also extend to restaurants, galleries, and even nightclubs.
McDonald's had a permanent outlet in the Olympic Park for six weeks.
FALSE: McDonald's had a temporary outlet in the Olympic Park for six weeks.
Popup shops allow entrepreneurs to try out an idea before committing to permanent premises.
TRUE: Popup shops allow entrepreneurs, merchants, designers, and artists to try out an idea before committing to permanent premises.
Flash sales sites offer timelimited sales events on fashion and household goods through email.
TRUE: Flash sales sites offer timelimited sales events on fashion and household goods offered to customers by email.
Different types of retailers now sell the same products at different prices to the same consumers.
FALSE: Different types of retailers now sell the same products at the same prices to the same consumers.
Emerging types of retailers now sell the same products at the same prices to the same consumers.
True
Retailers are facing less competition due to retail convergence.
False. Retail convergence means greater competition for retailers.
Megaretailers have less power than smaller retailers in their dealings with manufacturers.
False. Megaretailers have shifted the balance of power between retailers and producers.
Specialty coatings and sealants manufacturer RPM International is not known to consumers.
False. RPM International is known to consumers through its familiar do-it-yourself brands such as Rust-Oleum and Dap fillers.
Nonstore retailing is decreasing in popularity among consumers.
False. Growth of nonstore retailing is observed in the market.
Consumers make most of their purchases through nonstore alternatives.
False. Many consumers still make most of their purchases the old-fashioned way by going to a store.
Direct and digital shopping are not popular alternatives for consumers.
False. Consumers have a broad array of nonstore alternatives, including direct and digital shopping via websites, mobile apps, and social media.
Online retailing constitutes a small portion of US retail sales.
False. Online retailing accounts for approximately 58% of total US retail sales and is growing at a faster rate than retail buying as a whole.
Online retail sales increased by 72% in Europe in 2015.
True
Retailer online sites have no influence on in-store buying.
False, they do influence a large amount of in-store buying.
Showrooming is a process where customers prefer to buy online after checking out products in a physical store.
True
Store-Based Retailers Embracing Showrooming
True
Online-only Retailers
True
Digital Devices Have Not Changed Shopping Behavior
False, The Internet and digital devices have spawned a whole new breed of shopper and way of shopping.
The digital age has spawned a whole new breed of shopper who just can't buy anything unless they first look it up online.
True
Retail technologies have become critically important as competitive tools for retailers.
True
Retailers are adopting sophisticated systems for checkout scanning, RFID stock tracking, and merchandise handling.
True
Online technologies give consumers control over the buying process and instant access to information about competing products and prices.
True
Real-world stores are able to provide the same speed and convenience of buying online.
False, Real-world stores cannot provide the same speed and convenience as buying online.
Retailers are increasingly bringing online and digital technologies into their physical stores.
True
Many retailers use touchscreen kiosks, handheld shopping assistants, interactive dressing room mirrors, and virtual sales associates in their physical stores.
True
Retailers now routinely use technologies like touchscreen kiosks and handheld shopping assistants in their physical stores.
True
ShopBeacon technology can link instore and athome browsing to remind customers of specific products and provide exclusive deals.
True
The integration of online and offline shopping into a seamless experience is the future of retailing.
True
Deloitte's research suggests that the future of retailing involves personal digital shopping assistants accessing customers' wardrobe and creating custom-fit clothes using 3D printers.
True
Retail experience is not influenced by technical capabilities.
FALSE
Retail experience is influenced by technical capabilities.
TRUE
Green retailing is not a common practice in the retail industry.
False
Most large retailers are making their stores more environmentally friendly through sustainable building design and construction.
True
New retail stores commonly employ extensive recycling and compost programs, wind energy, and solar panels for power.
True
McDonald's Golden Arches are not going green with eco-friendly restaurants.
False
McDonald's eco-friendly restaurants are designed with reclaimed building materials and permeable surfaces in the car parks.
True
The exterior and interior lighting in McDonald's eco-friendly restaurants use energy-efficient LEDs, consuming 78% less energy than traditional lighting.
True
The dining room in McDonald's eco-friendly restaurants is not filled with materials made from recycled content.
False
Green Baby in the UK provides organic products, washable nappies, wooden toys, toiletries, and maternity wear from four London stores.
True
Green Baby's knitwear is produced by a women's Fair Trade cooperative in the UK.
False
Green Baby uses luxurious natural fibers sourced via MANOS which economizes on water.
True
Green Baby provides inorganic products.
False, Green Baby provides organic products.
Green Baby provides disposable nappies.
False, Green Baby provides washable nappies.
Staples recycles less than 30 million printer cartridges each year.
False, Staples recycles more than 30 million printer cartridges each year.
Amazon works closely with its producers to increase and complicate their packaging.
False, Amazon works closely with its producers to reduce and simplify their packaging.
Sustainable practices reduce costs in retailing.
True
An earth-friendly McDonald's restaurant costs more to operate.
False, an earth-friendly McDonald's restaurant costs less to operate.
Convenience and eliminate wrap rage while at the same time save packaging costs
True
An earth-friendly McDonald's restaurant not only appeals to customers and helps save the planet but costs less to operate
True
Green retailing has become another legitimate differentiator in the retail brand equation
True
Global expansion of major retailers is primarily driven by the need to escape mature and saturated home markets
False (Driven by unique formats and strong brand positioning)
The world's largest retailer Walmart operates more than 6300 stores in 26 non-US markets
True
Revenues for the world's top ten global retailers are around 13 trillion
True
International retailing only presents opportunities, not challenges.
False, it presents challenges as well as opportunities.
Retailers must only adapt the operations that work well in the home country to create success abroad.
False, they must understand and meet the needs of local markets.
Globalisation requires retailers to understand and meet the needs of local markets.
True
Emerging markets like India and China have similar trading conditions and regulatory environments to the West.
False, they have very different trading conditions and regulatory environments.
Leading Asian retailers are not extending their operations beyond the Asia-Pacific.
False, they are extending their operations possibly beyond the Asia-Pacific.
The emerging markets may see considerable prospects for their ways of doing business in the austerity dominated European and American markets.
True
Best customers shop both online and offline.
True
When customers shop both online and in stores, they spend 20% less in stores than the average in-store shopper.
False. They spend 20% more in stores than the average in-store shopper.
Retail technologies have become critically important as competitive tools.
True
Progressive retailers are not using advanced information technology (IT) and software systems to produce better forecasts.
False. They are using advanced IT and software systems to produce better forecasts.
Retailers are not adopting sophisticated systems for checkout scanning, RFID, stock tracking, and merchandise handling.
False. They are adopting sophisticated systems for checkout scanning, RFID, stock tracking, and merchandise handling.
Retailers are not connecting with consumers through websites, blogs, social media, and mobile apps.
False. They are connecting with consumers through websites, blogs, social media, and mobile apps.
Retailers are not bringing online and digital technologies into their physical stores.
False. They are bringing online and digital technologies into their physical stores.
ShopBeacon indoor positioning system engages customers digitally as they shop around the stores.
True
shopBeacon offers location-specific rewards, deals, and product recommendations.
TRUE
The goal of shopBeacon is to engage tech-savvy and social customers as a trusted companion.
TRUE
McDonalds' new eco-friendly restaurants are not designed with a whole new eco-attitude.
False. They are designed with a whole new eco-attitude.
Transportation Wholesalers can provide quicker delivery to buyers because they are closer to buyers than are producers
True
Financing Wholesalers finance their customers by giving credit and they finance their suppliers by ordering early and paying bills on time
True
Risk bearing Wholesalers absorb risk by taking title and bearing the cost of theft, damage, spoilage, and obsolescence
True
Market information Wholesalers give information to suppliers and customers about competitors, new products, and price developments
True
Management services and advice are often provided by wholesalers to help retailers train their sales staff, improve store layouts and displays, and set up accounting and stock control systems
True
Cash-and-carry wholesalers carry a limited line of fast-moving goods and sell to small retailers for cash.
True
Truck wholesalers primarily perform a selling and delivery function for semi-perishable merchandise such as milk, bread, and snack foods.
True
Drop shippers carry stock and handle the product before shipping it to the customer.
False, Drop shippers do not carry stock or handle the product.
Rack jobbers serve grocery and pharmaceutical retailers mostly in food items.
False, Rack jobbers serve grocery and pharmaceutical retailers mostly in non-food items.
Producers cooperatives are farmer-owned members that assemble farm produce for sell in local markets.
True
Brokers and agents get involved in financing or assume risk.
False - Brokers and agents do not get involved in financing or assume risk.
Manufacturers agents represent a single manufacturer.
False - Manufacturers agents represent two or more manufacturers of complementary lines.
Selling agents have contractual authority to sell only a portion of a manufacturers output.
False - Selling agents have contractual authority to sell a manufacturers entire output.
Purchasing agents inspect and warehouse the merchandise for the sellers.
False - Purchasing agents inspect and warehouse the merchandise for the buyers.
Sales branches and offices do not carry stock.
True
Retailers establish purchasing offices in major market centres such as London, New York, Paris, and Frankfurt.
True
Brokers and agents differ from merchant wholesalers in two ways: they take title to goods and perform only a few functions.
False. Brokers and agents differ from merchant wholesalers in two ways: they do not take title to goods and they perform only a few functions.
A broker brings buyers and sellers together and assists in negotiation.
True
Manufacturers agents are the most common type of agent wholesaler.
True
Wholesaling by sellers and buyers themselves rather than through independent wholesalers is known as manufacturers sales branches and offices.
False. Wholesaling by sellers and buyers themselves rather than through independent wholesalers is known as broker wholesaling.
A central market deducts a commission and expenses before remitting the balance to the producers.
True
Wholesaling operations conducted by sellers or buyers themselves rather than through independent wholesalers.
False (Wholesaling operations should involve independent wholesalers)
Separate branches and offices can be dedicated to either sales or purchasing.
True
Sales branches carry stock and are found in industries such as timber and automotive equipment and parts.
True
Purchasing officers perform a role similar to that of brokers or agents and are part of the buyers organization.
False (Purchasing officers are part of the buyers organization but do not perform a role similar to brokers or agents)
Brokers do not take title to goods and their function is to bring buyers and sellers together and assist in negotiation.
True
Wholesaling by sellers and buyers themselves rather than through independent wholesalers.
False (Wholesaling should involve independent wholesalers)
Wholesalers face growing competitive pressures, demanding customers, new technologies, and more direct-buying programs.
True
Wholesalers must segment and define their target markets and differentiate and position themselves effectively.
True
Positioning decisions are not important for wholesalers.
False. Positioning decisions are important for wholesalers as they must differentiate and position themselves effectively to serve their target markets.
Wholesalers can choose a target group based on the size of the customer.
True. Wholesalers can target large retailers, convenience stores, customers who need credit, or other factors.
Wholesalers discourage lessprofitable customers by offering lower prices.
False. Wholesalers may discourage less-profitable customers by requiring larger orders or adding service charges to smaller ones.
Wholesalers often mark up the cost of goods by a standard percentage.
True. Wholesalers usually mark up the cost of goods by a standard percentage such as 20%.
Wholesalers are not promotion minded and do not focus on advertising.
False. Promotion can be critical to wholesaler success, and they may use trade advertising and sales promotion.
Ask suppliers for special price breaks when they can turn them into an increase in the suppliers sales
True
Promotion can be critical to wholesaler success
True
Most wholesalers are promotion-minded
False, They often use largely scattered and unplanned trade advertising sales promotion
Wholesaler marketing mix includes Product and service assortment, Wholesale prices, Promotion, Distribution location, Wholesale strategy, Wholesale segmentation and targeting, Differentiation and service positioning
True
Wholesalers must develop customer-driven marketing strategies and mixes that create value for customers and capture value in return
True
Retailing and Wholesaling are separate entities and do not overlap in operations.
False - The distinction between large retailers and large wholesalers continues to blur.
Wholesalers do not need to adopt nonpersonal promotion techniques used by retailers.
False - Wholesalers need to adopt some of the nonpersonal promotion techniques used by retailers.
Technology has no significant impact on modern wholesale operations.
False - Modern wholesalers have reacted to rising costs by investing in automated warehouses and IT systems.
Wholesalers no longer play an important role in digital and social media.
False - Digital and social media are playing an increasingly important role for wholesalers.
Wholesalers do not need to consider distribution location carefully in today's market.
False - Wholesalers must choose their physical locations, facilities, and web locations carefully.
The industry is not vulnerable to the need for greater efficiency and cost reduction.
False - The industry remains vulnerable to the need for ever-greater efficiency and cost reduction.
The goal of wholesalers is to solely increase the efficiency and effectiveness of the marketing channel.
False - The goal is to build value-adding customer relationships.
Large retailers and large wholesalers are becoming more distinct from each other.
False - The distinction between large retailers and large wholesalers continues to blur.
Wholesalers do not need to adapt their services to the needs of target customers.
False - Modern wholesalers are adapting their services to the needs of target customers.
Suppliers are not concerned with cost and quality in their demands from wholesalers.
False - Recent economic conditions have led to demands for even lower prices and the winnowing out of suppliers who are not adding value based on cost and quality.
The goal of large retailers is to integrate wholesale and retail operations under direct control.
True
Independent wholesalers in Europe are likely to reduce the services they provide to retailers.
False, they are likely to continue to increase the services they provide to retailers.
Computerized, automated, and web-based systems will not help wholesalers contain the costs of ordering, shipping, and stock holding.
False, they will help wholesalers contain the costs and boost their productivity in some markets.
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Flashcard Deck for Retailing and Wholesaling: Questions and answers on key concepts like retailing, shopper marketing, and moments of truth.
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