general business data bank

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