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Principles of Marketing

Chapter 18

Principles of MarketingChapter 18

Chapter 18

18.1 Knowledge Check

1.
c. Retailing is the process of selling goods and services to the consumer.
2.
a. Wholesalers are in business to buy in large quantities and sell to other businesses.
3.
d. Loyalty cards are one way retailers can communicate with consumers.
4.
c. An omnichannel strategy is one that utilizes multiple channels.
5.
c. Schwan’s eliminates the intermediaries and sells directly to the consumers.

18.2 Knowledge Check

1.
b. Automatic vending includes vending machines, in which there is no buyer-seller interaction.
2.
b. Television home shopping would be the most likely retailing strategy to reach this target market. Consumers can call a toll-free number to place an order without ever leaving their home.
3.
b. Warehouse clubs sell in bulk to consumers who purchase memberships.
4.
c. Off-price retailers are those providing high-quality goods at discounted prices.
5.
a. Factory outlets are retailers that are operated by manufacturers to sell overstock items at discounted prices.

18.3 Knowledge Check

1.
d. A markdown is a price decrease for a product that is at the end of its life cycle or season.
2.
c. Superstores generally choose a freestanding location.
3.
c. A small, rural town is most likely to have a central business district, or “downtown.”
4.
c. Gross margin = net sales – cost of goods sold
5.
a. Omnichannel marketing increases customer’s access to product, brand visibility, and personalization because it utilizes multiple channels to reach the customer.

18.4 Knowledge Check

1.
d. All of the trends grew considerably.
2.
c. Social commerce is a blend of e-commerce and social media, where retailers often use influencers to market products.
3.
d. Digital wallets store consumers’ passwords and payment information for safety and ease of ordering online.
4.
a. Pandemics, such as the one in COVID-19 pandemic, forced many consumers to stay home. This caused a significant rise in online shopping.
5.
c. Social media is one way in which companies can utilize an omnichannel marketing strategy, one in which utilizes many different channels to reach customers.

18.5 Knowledge Check

1.
a. Wholesalers are businesses that buy products in bulk and sell to retailers.
2.
d. Retailers use drop shippers to ship products directly to the end consumer.
3.
d. General-merchandise wholesalers offer the most complete range of services.
4.
a. Manufacturer’s agents are independent contractors who act as salespersons for multiple manufacturers to sell similar (but not competing) products to retailers.
5.
a. Rack jobbers are companies that agree with retailers to display and sell products in-store.

18.6 Knowledge Check

1.
a. Caveat emptor is Latin for “let the buyer beware.”
2.
d. Product traceability allows products to be traced throughout the distribution channel to the manufacturer.
3.
c. Product traceability does not make less work for distribution channel members.
4.
a. Government regulations are not decreasing but are increasing and becoming more complex.
5.
a. The Sale of Goods Act requires the accurate, safe, and clear use of directions on goods and services sold.
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