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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.
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c. Off-price retailers are those providing high-quality goods at discounted prices.
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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.”
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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.
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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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