Question

59. When a customer purchases a DVD at a Best Buy Electronics store, all of the following information flows are started EXCEPT:

-   the sale is transmitted to Best Buy’s distribution center to adjust inventory data.

-   Best Buy’s buyer aggregates sales at all stores and uses the information to send a reorder to the manufacturer.

-   the purchase is added to the customer’s personal and confidential purchasing habit records.

-   the sales associate scans the UPC recording the sale.

60. Stores like Home Depot and Costco act as wholesalers when they:

-   sell products for distributors.

-   sell to contractors or restaurant owners.

-   take delivery in whole-lot quantities.

-   select limited product lines and only market them to consumers who purchase the whole line.

63. Franchising is attractive for the franchisee because:

-   there are no company liabilities.

-   of the opportunity to enter into a well-known, established business where managerial advice is provided.

-   of complete control over the delivery and presentation of merchandise.

-   the license fees paid to the franchiser are the only fees the franchisee pays.

64. Which is the most likely DISADVANTAGE of adding new channels in a multichannel distribution system?

-   decreasing control over the system

-   decreasing understanding of complex markets

-   fewer opportunities for franchising

-   increasing disintermediation

Answer 1

Answer 59: Option C

Explanation: When a customer purchases a DVD at a Best Buy Electronics store, the following does not happen - the purchase is added to the customer’s personal and confidential purchasing habit records.

Answer 60: Option D

Explanation: Stores like Home Depot and Costco act as wholesalers when they select limited product lines and only market them to consumers who purchase the whole line.

Answer 63: Option B

Explanation: Franchising is attractive for the franchise because of the opportunity to enter into a well-known, established business where managerial advice is provided.

Answer 64: Option A

Explanation: The disadvantage of adding new channels in a multichannel distribution system decreasing control over the system.