UNT Marketing 3650 Topic 13 Concept Check Thompson – Flashcards
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Alice Garrett runs her own distribution business in which she stocks a full range of specialty gift item for resale to gift shops. Alice is probably a
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Specialty wholesaler
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A major distinction between agent and merchant wholesaling middlemen is that agents take title to the products they sell while wholesalers do not.
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False
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Blue Diamond is a __ in which almond growers have established their own wholesaling and distribution system.
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Producer's Coop
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Lee Gabriel Distributors, based on Denton, TX, sells fast moving hardware items to small independent grocers in rural Texas. Lee often provide the displays, stock the shelves, and monitors inventory for his clients, charging them only after sales have been made. Apparently, Lee is a
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Rack jobber
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Ritchie Bass Construction specializes in demolishing buildings and, as a result, recycles much of the steel recovered from these buildings. Ritchie currently has about 300 tons of steel to sell and is looking for interested buyers. Ritchie probably should seek the services of a:
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A broker
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___ specialize in selling and work on a commission basis. They operate in limited geographic areas and represent two or more non-competing producers
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Manufacturers' agents
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Navarro Electronics Instruments, a Denver-based producer of sophisticated test equipment employed in non-destructive testing, wants to tap the growing market for non-destructive testing in the Gulf states. Navarro uses its own sales force for its current market, but does not want to invest in additional sales reps in the Gulf until the market proves itself. Navarro would be wise to use a(n) to initiate sales on the Gulf states.
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Manufacturers' agent
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Wilson Farms, a Colorado-based grower, is harvesting its annual sugar beet crop. Wilson has contracted with Henry Taylor & Co. to take possession of the crop, and sell it at the produce market in Denver. Taylor & Co. are empowered to negotiate prices and arrange for any shipping, inspection, and storage that may be required. Taylor & Co. probably is a(n) ___ .
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Commission merchant.
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Kansas Textile Mills produces a range of high quality fabrics used in the fashion garment industry. Kansas has no desire to do its own marketing instead it contracted Allied Distributors to take over its marketing functions. Apparently, Allied is
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A selling agent.
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A _____ essentially substitutes for a marketing department by marketing a manufacturer's entire output.
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Selling agent
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A producer has a few territories where many big customers are concentrated, but most of its target customers are spread all over the country.
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The company should use its own sales branches in the concentrated territories and agents, probably manufacturers' agents, in the others--assuming the concentrated territories are large enough to support sales branches.
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When Ed Titus decided to sell 5 acres of land, he contacted Lenora Smalley. She showed the land to a young couple who wanted to build a home on a site, explained to them about the market for land in the area, and negotiated the sales terms. She left the final decision about the sale up to Titus and the young couple. Smalley is most likely a:
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Broker
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The manager of the Yazoo City Catfish Producers knows the market for its catfish is geographically quite large. Price and supply conditions vary considerably from season to season. Since Yazoo City can sell its catfish only a few months each year, it does not need continuous market representation. The catfish producers should use a:
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Broker
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Saul Monehan sells a wide assortment (in small quantities) of "emergency" home repair items (fuses, electrical tape, small packets of nails) to grocery and convenience stores. He owns the products he handles, and displays them for his customers. Saul is a:
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Rack Jobber
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_____ carry a selected line of perishable products and deliver them by trucks to retail stores
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Truck jobbers
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Midway Plumbing, Inc. buys plumbing supplies, pipes, and tools from different manufacturers and resells them to construction companies. Midway is MOST LIKELY:
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A merchant wholesaler
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Merchant wholesalers:
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are independently owned firms that engage primarily in wholesaling and take title to products being distributed.
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Cole Smithers sells fiberglass resins and fiberglass wire to the many small sailboat manufacturers in southern California. He takes title to the products but does not handle them. Instead, the resins are shipped in 50 gallon barrels directly from the producer to the sailboat manufacturers. Cole is a:
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Drop shipper
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Debbie Wood sells food products to grocery wholesalers and large retail grocery chains in Tallahassee. She sells for several manufacturers with noncompeting lines of food products--earning a 5 percent sales commission. She neither handles nor owns the products she sells. Debbie is a:
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Manufacturers' agent
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A _____ is an independent agent wholesaling middleman that brings buyers and sellers together and provides marketing information to either party.
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Broker
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Which of the following manufacturers would be most likely to use a manufacturers' agent to distribute its product?
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A well-established Southwestern firm that wants to expand its market area by making its products available for the first time in New York and New Jersey
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The primary factor that distinguishes between a merchant wholesaler and an agent is:
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The wholesaler takes title; the agent does not.
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Isabelle Riley wants to open a convenience store in Silver Creek. What kind of wholesaler should she contact for her chewing gum, tobacco products, candy bars, and other snack foods?
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A truck jobber
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Whether a given transaction is classified as a wholesale sale or as a retail sale depends essentially on:
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The buyer's intended use of the product.
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A grocery store chain has decided to sell a small assortment of fast moving auto repair items--but is not certain what stock to carry in which stores and does not want to leave the decision to the local store manager. The chain should probably get help from a
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Rack Jobber
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A full-service wholesaler in Dallas takes title to the products it stocks--a full line of home repair products for independent hardware stores. This wholesaler is a:
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Specialty (limited line) wholesaler.
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Gobbler's Inc. is a small manufacturer of cookers for smoking turkeys. The company does not have its own sales force and has just introduced a cooker which will hold two birds. The cooker will most likely be distributed by a:
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Manufacturers' agent
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Milt's Supply stocks electronic repair parts and related supplies and tools from various producers. Milt's sells primarily to small TV and electronic repair shops throughout the country that only want to order one or two items at a time. Orders are usually shipped out on UPS trucks. It appears that Milt's is a
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Limited line (specialty) wholesaler.
