14 Aug 81. Franchising now accounts for about a third of all retail sales. True

81.

Franchising now
accounts for about a third of all retail sales.

True False

82.

The supercenter
retailing format began in the U.S. and then was exported to other
countries.

True False

83.

Consumers in
less-developed nations have the income to support mass distribution.

True False

84.

In-store shopping
varies a lot from country to country, but online shopping does not.

True False

85.

According to the
U.S. Census Bureau, wholesaling is defined as the activities of firms that
sell to retailers, but do not sell in large amounts to final consumers,
manufacturers, or other institutional users.

True False

86.

Wholesalers are more
likely to dominate distribution channels in more advanced economies than in
less-developed ones.

True False

87.

Despite the
functions they provide, the number of wholesalers in the United States has
decreased 16 percent in the last 15 years.

True False

88.

Progressive
wholesalers are becoming more concerned with their customers and with adding
value in their channels.

True False

89.

Wholesalers are
adapting their marketing strategies and changes are under way even though
they may be invisible to consumers.

True False

90.

Although wholesalers
no longer dominate channels in the U.S., they do provide a necessary function
and some of the biggest B2B e-commerce sites on the Internet are wholesaler
operations.

True False

91.

Some wholesalers
have higher operating costs because of the strategies they select, including
the special services they offer to some customers.

True False

92.

Manufacturers’ sales
branches are warehouses that producers set up at separate locations away from
their factories.

True False

93.

Manufacturers’ sales
branches operate like wholesalers, but the U.S. Census Bureau does not
consider them wholesaling establishments because they do not involve a
separate warehouse.

True False

94.

One reason
manufacturers’ sales branches handle over 25 percent of wholesale sales is
that they are located in the best market areas.

True False

95.

Manufacturers
usually operate sales branches in areas where sales potential is very
low–because intermediaries are not interested in serving such markets.

True False

96.

Agent wholesalers
usually have higher operating expenses (as a percentage of sales) than
merchant wholesalers.

True False

97.

When considering
cost as a percent of sales, agent wholesalers are more expensive than
manufacturers’ sales branches.

True False

98.

Merchant wholesalers
account for almost 85 percent of all wholesalers.

True False

99.

Merchant wholesalers
account for over 60 percent of all wholesale sales.

True False

100.

“Merchant
wholesalers”–who take title to the products they sell–are the most
common type of wholesaling establishment.

True False

101.

In Japan, products
are often bought and sold by a series of merchant wholesalers on their way to
the business user or retailer.

True False

102.

A hardware
wholesaler that buys nails from a manufacturer and then sells them to retail hardware
stores is a merchant wholesaler.

True False

103.

Service wholesalers
may be general-merchandise, single-line, or specialty wholesalers.

True False

104.

General merchandise
wholesalers handle a wide variety of nonperishable items–and usually serve
many different kinds of retail stores.

True False

105.

In consumer
products, single-line wholesalers serve single-line and limited-line retail
stores.

True False

106.

Specialty
wholesalers usually sell a very narrow range of products and compete with
other wholesalers who have a broader range of products by offering expert
technical help and/or service to their customers.

True False

107.

Of all service
wholesalers, specialty wholesalers carry the narrowest range of products and
offer the most service.

True False

108.

Limited-function
wholesalers provide only some of the wholesaling functions.

True False

109.

Limited-function
wholesalers provide all of the basic wholesaling functions, except that they
do not take title to the products they sell.

True False

110.

Cash-and-carry
wholesalers are limited-function wholesalers who do not grant credit, but
otherwise operate like service wholesalers.

True False

111.

Cash-and-carry wholesalers
are more common in underdeveloped nations than in the U.S.–where big
warehouse clubs have taken much of the business.

True False

112.

In the U.S., big
warehouse clubs have taken much of the cash-and-carry wholesalers
business.

True False

113.

Drop-shippers have
low operating costs because they do not actually handle the products they
sell.

True False

114.

Drop-shippers keep
adequate quantities of every product they carry in their own warehouses so
that they can ship them out quickly.

True False

115.

Truck wholesalers
may provide almost the same services as full service wholesalers, but they
usually specialize in perishable products that regular wholesalers prefer not
to carry.

True False

116.

A retailer that buys
from a rack jobber needs to have an employee who is a specialist in the
products the rack jobber handles.

True False

117.

Catalog wholesalers
usually sell to business customers who don’t have a local wholesaler or
otherwise are not called on by other wholesalers.

True False

118.

Agent wholesalers do
not own the products they sell, but they usually perform even more functions
than a service wholesaler.

True False

119.

Agent wholesalers
typically provide even more functions than full service merchant
wholesalers.

True False

120.

Agent wholesalers
operate at relatively low cost–sometimes 2 to 6 percent of their selling
price.

True False

81.Franchising now
accounts for about a third of all retail sales.

True False82.The supercenter
retailing format began in the U.S. and then was exported to other
countries.

True False83.Consumers in
less-developed nations have the income to support mass distribution.

True False84.In-store shopping
varies a lot from country to country, but online shopping does not.

True False85.According to the
U.S. Census Bureau, wholesaling is defined as the activities of firms that
sell to retailers, but do not sell in large amounts to final consumers,
manufacturers, or other institutional users.

True False86.Wholesalers are more
likely to dominate distribution channels in more advanced economies than in
less-developed ones.

True False87.Despite the
functions they provide, the number of wholesalers in the United States has
decreased 16 percent in the last 15 years.

True False88.Progressive
wholesalers are becoming more concerned with their customers and with adding
value in their channels.

True False89.Wholesalers are
adapting their marketing strategies and changes are under way even though
they may be invisible to consumers.

True False90.Although wholesalers
no longer dominate channels in the U.S., they do provide a necessary function
and some of the biggest B2B e-commerce sites on the Internet are wholesaler
operations.

True False91.Some wholesalers
have higher operating costs because of the strategies they select, including
the special services they offer to some customers.

True False92.Manufacturers’ sales
branches are warehouses that producers set up at separate locations away from
their factories.

True False93.Manufacturers’ sales
branches operate like wholesalers, but the U.S. Census Bureau does not
consider them wholesaling establishments because they do not involve a
separate warehouse.

True False94.One reason
manufacturers’ sales branches handle over 25 percent of wholesale sales is
that they are located in the best market areas.

True False95.Manufacturers
usually operate sales branches in areas where sales potential is very
low–because intermediaries are not interested in serving such markets.

True False96.Agent wholesalers
usually have higher operating expenses (as a percentage of sales) than
merchant wholesalers.

True False97.When considering
cost as a percent of sales, agent wholesalers are more expensive than
manufacturers’ sales branches.

True False98.Merchant wholesalers
account for almost 85 percent of all wholesalers.

True False99.Merchant wholesalers
account for over 60 percent of all wholesale sales.

True False100.”Merchant
wholesalers”–who take title to the products they sell–are the most
common type of wholesaling establishment.

True False101.In Japan, products
are often bought and sold by a series of merchant wholesalers on their way to
the business user or retailer.

True False102.A hardware
wholesaler that buys nails from a manufacturer and then sells them to retail hardware
stores is a merchant wholesaler.

True False103.Service wholesalers
may be general-merchandise, single-line, or specialty wholesalers.

True False104.General merchandise
wholesalers handle a wide variety of nonperishable items–and usually serve
many different kinds of retail stores.

True False105.In consumer
products, single-line wholesalers serve single-line and limited-line retail
stores.

True False106.Specialty
wholesalers usually sell a very narrow range of products and compete with
other wholesalers who have a broader range of products by offering expert
technical help and/or service to their customers.

True False107.Of all service
wholesalers, specialty wholesalers carry the narrowest range of products and
offer the most service.

True False108.Limited-function
wholesalers provide only some of the wholesaling functions.

True False109.Limited-function
wholesalers provide all of the basic wholesaling functions, except that they
do not take title to the products they sell.

True False110.Cash-and-carry
wholesalers are limited-function wholesalers who do not grant credit, but
otherwise operate like service wholesalers.

True False111.Cash-and-carry wholesalers
are more common in underdeveloped nations than in the U.S.–where big
warehouse clubs have taken much of the business.

True False112.In the U.S., big
warehouse clubs have taken much of the cash-and-carry wholesalers
business.

True False113.Drop-shippers have
low operating costs because they do not actually handle the products they
sell.

True False114.Drop-shippers keep
adequate quantities of every product they carry in their own warehouses so
that they can ship them out quickly.

True False115.Truck wholesalers
may provide almost the same services as full service wholesalers, but they
usually specialize in perishable products that regular wholesalers prefer not
to carry.

True False116.A retailer that buys
from a rack jobber needs to have an employee who is a specialist in the
products the rack jobber handles.

True False117.Catalog wholesalers
usually sell to business customers who don’t have a local wholesaler or
otherwise are not called on by other wholesalers.

True False118.Agent wholesalers do
not own the products they sell, but they usually perform even more functions
than a service wholesaler.

True False119.Agent wholesalers
typically provide even more functions than full service merchant
wholesalers.

True False120.Agent wholesalers
operate at relatively low cost–sometimes 2 to 6 percent of their selling
price.

True False

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