1. What is the primary difference between wholesaling and retailing?

a) Wholesaling involves selling products in large quantities to retailers, while retailing involves selling
products in small quantities to individual customers.

b) Wholesaling involves selling products in small quantities to individual customers, while retailing
involves selling products in large quantities to retailers.

c) Wholesaling and retailing are interchangeable terms and have no difference.

d) Wholesaling and retailing both involve selling products directly to consumers.

Answer: a) Wholesaling involves selling products in large quantities to retailers, while retailing involves
selling products in small quantities to individual customers.

2.Which of the following is NOT a function of a wholesaler?

a) Breaking bulk

b) Providing credit

c) Advertising

d) Storing inventory

Answer: c) Advertising

3.Which of the following is an example of a retailer?

a) Manufacturer

b) Distributor

c) Wholesaler

d) Department store

Answer: d) Department store

4.What is the main purpose of a distribution channel in the context of wholesaling and retailing?

a) To store inventory

b) To promote products

c) To transport products

d) To facilitate the movement of products from manufacturers to consumers

Answer: d) To facilitate the movement of products from manufacturers to consumers

5.What is a cash-and-carry wholesaler?

a) A wholesaler who only accepts cash payments

b) A wholesaler who sells products on credit to retailers

c) A wholesaler who allows customers to carry away purchased products immediately

d) A wholesaler who only sells products to individual consumers

Answer: c) A wholesaler who allows customers to carry away purchased products immediately

6.Which of the following is an advantage of using a direct distribution channel for wholesaling and
retailing?

a) Higher cost of transportation

b) Longer delivery times

c) Increased control over the distribution process

d) Reduced risk of damage to products

Answer: c) Increased control over the distribution process

7.Which of the following is an example of a discount store?

a) Luxury boutique

b) Department store

c) Convenience store

d) Dollar store

Answer: d) Dollar store

8.What is the purpose of a distribution center in the context of wholesaling and retailing?

a) To store finished products

b) To manufacture products

c) To sell products to consumers

d) To process and sort products for shipment to retail locations

Answer: d) To process and sort products for shipment to retail locations

9.What is a distribution strategy?

a) A plan to transport products to retailers

b) A plan to advertise and promote products

c) A plan to store inventory

d) A plan to break bulk

Answer: a) A plan to transport products to retailers

10.Which of the following is a characteristic of a specialty store?

a) Wide range of product offerings

b) Low prices

c) High level of customer service

d) Limited product selection

Answer: c) High level of customer service

11.What is the purpose of a markup in the context of wholesaling and retailing?

a) To determine the selling price of a product

b) To determine the cost of a product

c) To determine the quantity of a product

d) To determine the quality of a product

Answer: a) To determine the selling price of a product

12.Which of the following is an example of a retailer-owned cooperative?

a) Department store

b) Supermarket

c) Convenience store

d) Franchise store

Answer: d) Franchise store

13.What is the main difference between a conventional marketing

channel and a vertical marketing channel in the context of wholesaling and retailing?

a) A conventional marketing channel involves multiple intermediaries, while a vertical marketing channel
involves only one intermediary.

b) A conventional marketing channel involves only one intermediary, while a vertical marketing channel
involves multiple intermediaries.

c) A conventional marketing channel is used for retailing, while a vertical marketing channel is used for
wholesaling.

d) A conventional marketing channel is used for wholesaling, while a vertical marketing channel is used
for retailing.

Answer: a) A conventional marketing channel involves multiple intermediaries, while a vertical

marketing channel involves only one intermediary.

14. Which of the following is an example of a full-service wholesaler?

a) Cash-and-carry wholesaler

b) Drop-ship wholesaler

c) Rack jobber

d) Merchant wholesaler

Answer: d) Merchant wholesaler

15.What is the main purpose of a distribution strategy in the context of wholesaling and retailing?

a) To determine the pricing strategy

b) To determine the promotion strategy

c) To determine the product strategy

d) To determine the logistics strategy

Answer: d) To determine the logistics strategy

16.Which of the following is an example of a non-store retailer?

a) Department store
b) Supermarket

c) Online retailer

d) Convenience store

Answer: c) Online retailer

17.What is a distribution mix?

a) The combination of marketing channels used by a retailer

b) The combination of products offered by a wholesaler

c) The combination of pricing strategies used by a retailer

d) The combination of promotion strategies used by a wholesaler

Answer: a) The combination of marketing channels used by a retailer

18.Which of the following is an example of a service retailer?

a) Furniture store

b) Grocery store

c) Hair salon

d) Clothing store

Answer: c) Hair salon

19.What is the main purpose of a distribution center in the context of wholesaling and retailing?

a) To sell products to consumers

b) To manufacture products

c) To store finished products

d) To process and sort products for shipment to retail locations

Answer: d) To process and sort products for shipment to retail locations

20.What is a private label brand?

a) A brand that is owned by the government

b) A brand that is owned by a nonprofit organization

c) A brand that is owned by a retailer

d) A brand that is owned by a manufacturer

Answer: c) A brand that is owned by a retailer

21.Which of the following is an example of a direct-to-consumer (DTC) model?

a) Selling products to wholesalers

b) Selling products to retailers

c) Selling products online to individual customers

d) Selling products to other manufacturers

Answer: c) Selling products online to individual customers

22.What is a category killer store?

a) A store that sells a wide range of products in multiple categories

b) A store that dominates the market in a specific product category

c) A store that sells only discounted products

d) A store that sells only luxury products

Answer: b) A store that dominates the market in a specific product category

23.What is a distribution intermediary?

a) A manufacturer

b) A retailer

c) A wholesaler

d) A consumer

Answer: c) A wholesaler

24.What is a push strategy in marketing?

a) Focusing on creating demand among consumers

b) Focusing on pushing products through the distribution channel to retailers

c) Focusing on promoting products to end consumers

d) Focusing on reducing prices to attract customers

Answer: b) Focusing on pushing products through the distribution channel to retailers

25.What is a cash-and-carry wholesaler?

a) A wholesaler that delivers products directly to consumers

b) A wholesaler that provides credit to retailers

c) A wholesaler that requires customers to pay in cash and carry products away

d) A wholesaler that specializes in perishable goods

Answer: c) A wholesaler that requires customers to pay in cash and carry products away

26.What is a distribution channel conflict?

a) A disagreement between retailers and wholesalers over pricing

b) A disagreement between manufacturers and retailers over product quality

c) A disagreement between consumers and retailers over returns and refunds

d) A disagreement or discord among channel members in the distribution process

Answer: d) A disagreement or discord among channel members in the distribution process

27.What is a warehouse club retailer?

a) A retailer that sells products in bulk to consumers at discounted prices

b) A retailer that sells only luxury products

c) A retailer that focuses on online sales only

d) A retailer that specializes in perishable goods

Answer: a) A retailer that sells products in bulk to consumers at discounted prices

28.What is a drop-ship wholesaler?

a) A wholesaler that delivers products directly to consumers

b) A wholesaler that provides credit to retailers

c) A wholesaler that requires customers to pay in cash and carry products away

d) A wholesaler that specializes in perishable goods

Answer: a) A wholesaler that delivers products directly to consumers

29.What is a retail format?

a) The type of ownership structure of a retail store

b) The size of a retail store

c) The layout and design of a retail store

d) The type of products sold in a retail store

Answer: c) The layout and design of a retail store

30.What is a franchise retailer?

a) A retailer that sells products under its own brand name

b) A retailer that sells only luxury products

c) A retailer that operates multiple stores under a single brand name

d) A retailer that specializes in perishable goods

Answer: c) A retailer that operates multiple stores under a single brand name

31.What is a private label brand?

a) A brand that is owned by a retailer

b) A brand that is owned by a manufacturer

c) A brand that is owned by a wholesaler

d) A brand that is owned by a distributor

Answer: a) A brand that is owned by a retailer

32.What is a category killer store?

a) A store that sells a wide variety of products

b) A store that specializes in selling luxury products

c) A store that dominates the market in a specific product category

d) A store that offers exclusive deals and discounts to its customers

Answer: c) A store that dominates the market in a specific product category

33.What is a sales agent?

a) A wholesaler that delivers products directly to consumers

b) A wholesaler that provides credit to retailers

c) An intermediary that represents a manufacturer and sells products on their behalf

d) An intermediary that represents a retailer and negotiates deals with manufacturers

Answer: c) An intermediary that represents a manufacturer and sells products on their behalf

34.What is a loyalty program?

a) A program that rewards retailers for their loyalty to a particular wholesaler

b) A program that rewards consumers for their loyalty to a particular retailer

c) A program that provides credit to retailers for their loyalty to a particular wholesaler

d) A program that provides discounts to wholesalers for their loyalty to a particular retailer

Answer: b) A program that rewards consumers for their loyalty to a particular retailer

35.What is a drop shipment?

a) A shipment of products directly from a manufacturer to a retailer

b) A shipment of products from a retailer to a consumer

c) A shipment of products from a wholesaler to a retailer

d) A shipment of products from a distributor to a wholesaler

Answer: a) A shipment of products directly from a manufacturer to a retailer

36.What is a retail price index?

a) A measure of the average price of products sold by retailers

b) A measure of the price difference between wholesale and retail prices

c) A measure of the inflation rate in the retail industry

d) A measure of the market share of different retailers in a particular industry

Answer: a) A measure of the average price of products sold by retailers

37.What is a forward buying strategy?

a) A strategy in which retailers purchase products in large quantities to take advantage of bulk discounts

b) A strategy in which retailers purchase products directly from manufacturers

c) A strategy in which retailers purchase products from multiple wholesalers

d) A strategy in which retailers purchase products from a single wholesaler

Answer: a) A strategy in which retailers purchase products in large quantities to take advantage of bulk
discounts

38.What is a specialty store?

a) A store that sells a wide variety of products

b) A store that specializes in selling luxury products

c) A store that offers exclusive deals and discounts to its customers

d) A store that sells products in bulk to consumers at discounted prices

Answer: b) A store that specializes in selling luxury products

39.What is a reverse logistics?

a) The process of delivering products from a manufacturer to a retailer

b) The process of delivering products from a retailer to a consumer

c) The process of managing returned or defective products from consumers to manufacturers or

retailers

d) The process of managing inventory in a retail store

Answer: c) The process of managing returned or defective products from consumers to manufacturers
or retailers

40.What is a showrooming?

a) The process of displaying products in a retail store

b) The process of promoting products through online advertising

c) The process of customers visiting a retail store to examine products and then purchasing
the same products online from a different retailer

d) The process of showcasing new products in a wholesale market

Answer: c) The process of customers visiting a retail store to examine products and then purchasing the
same products online from a different retailer