Unit 3

Question 1

consumer goods

Answer 1

goods used for personal use, not goods used by businesses

Question 2

convenience goods

Answer 2

low-priced items that are bought on a regular basis with little effort on the part of the customer

Question 3

specialty goods

Answer 3

items that have unique characteristics for which the customer will go to considerable lengths to purchase

Question 4

channel of distribution

Answer 4

the path that a product or service follows from the manufacturer or the producer to the consumer

Question 5

retailer

Answer 5

any person or organization that sells products or services to the consumer

Question 6

wholesaler

Answer 6

any person or organization that sells products or services to retailers or manufacturers, but not to the consumer—for example, Aloha Outfitters

Question 7

agents

Answer 7

middlemen who actively assist in the sale of products without taking title to the products

Question 8

intensive distribution

Answer 8

a product that is distributed through as many outlets as possible

Question 9

selective distribution

Answer 9

a product that is distributed through a few outlets in a given area

Question 10

exclusive distribution

Answer 10

when only one outlet has exclusive rights for a product in a given area

Question 11

retailing

Answer 11

all activities used in the sale of products and services to the ultimate consumer for personal, nonbusiness use

Question 12

independent stores

Answer 12

small businesses operated by the owner or owners

Question 13

chain stores

Answer 13

when a person or organization owns more than one store that sells the same products or services

Question 14

franchise

Answer 14

an agreement between a parent company and a person or group which gives rights to the person or group to operate using the parent company’s name

Question 15

franchisee

Answer 15

the person or group buying in to the franchise

Question 16

manufacturer-owned store

Answer 16

a retail store owned by a manufacturer

Question 17

nonstore retailing

Answer 17

selling goods to customers without having them come to the store

Question 18

automatic vending

Answer 18

the use of machines to distribute goods

Question 19

direct selling

Answer 19

marketing goods and services through face-to-face presentations away from the store

Question 20

direct marketing

Answer 20

using telephones, television, catalogs, and the Internet to encourage people to buy a company’s goods or services

Question 21

telemarketing

Answer 21

marketing conducted over the telephone

Question 22

television home shopping

Answer 22

showing products or services on television and having the viewers call to order the product or service and pay by credit card

Question 23

catalog retailing

Answer 23

customers ordering goods by mail or by telephone that they have selected from the company’s catalog

Question 24

online retailing/e-commerce

Answer 24

selling of goods or services over the Internet

Question 25

wholesaling

Answer 25

all the marketing activities in selling goods to businesses for resale or for other-than-personal use

Question 26

consignment

Answer 26

a system in which the retailer does not have to pay for the goods if they do not sell them

Question 27

merchant wholesalers

Answer 27

merchants who take title to the goods they distribute—this means they actually own the goods and sell them to retailers or manufacturers

Question 28

agent wholesalers

Answer 28

merchants who do not take title to the goods they distribute

Question 29

full-service wholesalers

Answer 29

the most common type of merchant wholesaler; full-service wholesalers perform a wide variety of marketing activities: they buy goods from manufacturers; they store goods for retailers; they transport goods to the retailers; they help inform manufacturers and retailers about market conditions and new products; they help finance merchandise; they assume some of the business risks; and they promote and sell products.

Question 30

rack jobbers

Answer 30

merchants who specialize in nonfood items that are sold through grocery stores and supermarkets

Question 31

cash-and-carry wholesalers

Answer 31

unique merchandisers who eliminate most services and provide a cash-only rate for the goods they sell

Question 32

drop shippers

Answer 32

the only merchant wholesalers that take title to the goods but never physically handle or touch the goods they sell

Question 33

truck jobbers

Answer 33

merchants who specialize in delivering products they stock in their own truck

Question 34

mail-order wholesalers

Answer 34

merchants who sell merchandise out of catalogs that may be distributed widely to smaller industrial customers or retailers

Question 35

agents

Answer 35

merchants who work on a commission basis and do not take title to the goods they sell

Question 36

brokers

Answer 36

bring buyers and sellers together—serve as mediators and provide sellers and buyers with information on the market and environmental conditions.

Question 37

manufacturer’s representatives

Answer 37

manufacturer’s representatives who substitute for direct salespeople for companies

Question 38

selling agents

Answer 38

agents with the most freedom and power; selling agents provide the entire marketing operation for small companies