11. With which distribution approach would a company first seek to generate fina
ID: 419181 • Letter: 1
Question
11. With which distribution approach would a company first seek to generate final consumer demand and then secure dealer support?
a. Horizontal integration b. Vertical integration
c. Pulling strategy d. Pushing strategy
____ 12. Merchant wholesalers can be differentiated from other forms of wholesalers in that they:
a. provide a wide range of services to their suppliers. b. resell the goods to other wholesalers.
c. purchase, take title, and take possession of products. d. are paid on the basis of commissions.
____ 13. The primary difference between wholesaling and retailing is that most wholesalers do NOT: a. sell a significant volume to final consumers. b. take title to merchandise. c. sell goods to other wholesalers. d. sell to industrial, commercial, and government institutions.
____ 14. A category killer is a form of:
a. full-line discount store. b. discount specialty store
c. retail catalog showroom. d. traditional department store.
____ 15. When there are product shortages due to too low a supply, an equilibrium point will be reached if:
a. consumers reduce prices. c. sellers reduce prices.
b. consumers bid up prices. d. competitors leave the market.
Explanation / Answer
11. C. Pulling strategy
Explanation- In this strategy, the interest is created for the product or service among the consumers and then it demands products from the suppliers or the channel partners. Other options, vertical and horizontal integration deals with integration of the multiple stages of the supply chain for increase or decrease in production. Push strategy is manufacturing the products and pushing them through the supply chain to the consumers.
12. C. purchase, take title, and take possession of products.
Explanation- Merchant wholesalers are one of the types of wholesales who buy directly from the manufacturer (purchase), take title (take ownership) and store the products. They then resell to other retail outlets or wholesalers or even to end customers. Options B and D are incorrect statements about Merchant Wholesalers. Option A states that they provide a range of services to suppliers whereas other types of wholesalers also fall under this broad category.
13. C. sells goods to other wholesalers.
Explanation- The business model for wholesalers is B2B (Business to Business). There is a ‘middle man’ between the wholesaler and the customer who obtains the products from the wholesaler and sells them to the customers. This middle man is the wholesaler. Option A is an incorrect statement, option C is a common statement for all and option d is about retailing.
14. C. retail catalog showroom
Explanation- A Category Killer is a form of retail store in which a specific product dominates the store.
15. B. consumers bid up prices.
Explanation- When there is shortage or the quantity supplied is lesser than the quantity demanded, then the market prices increases to bring the Market to a state of equilibirium.
Related Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.