MKT Ch. 8 Review

Stops in the channel of distribution between the manufacturer and consumer are called intermediaries or middlemen.

• True

• False

All channels of distribution begin with a wholesaler.

• True

• False

A company that purchases large quantities from manufacturers or producers and then re-sells them to other businesses is a

• retailer

• wholesaler

A _______ is involved when the retailer makes a sale but the manufacturer or a wholesaler ships the goods directly to the customer.

• jobber

• drop shipper

• broker

• agent

Retailers are intermediaries that sell to the final consumer

• True

• False

A _________ helps in the purchasing process by gathering and screening information about products, prices and supplies.

• broker

• purchasing agent

A _________'s main responsibility is to find a seller and a buyer and bring them together.

• purchasing agent

• broker

Using an intermediary can often help achieve faster delivery than if the manufacturer did it themselves.

• True

• False

Using an intermediary has no effect on the margin or amount of gross profit for a manufacturer.

• True

• False

In order for a reseller (retailer or wholesaler) to make a profit, they must be able to purchase the item from the manufacturer below the recommended retail price.

• True

• False