SOLVED

31) A manufacturer that invests in fragmentation when faced with wholesale consolidation is most likely ________. A) focusing on forward vertical integration B) creating partnerships with large distributors C) increasing its attractiveness to channel members D) forming alliances with small wholesaler-distributors E) developing additional channel power through outsourcing 32) According to the text, why will most wholesalers never be truly global? A) Increasing trade barriers discourage wholesalers from globalizing. B) Cross-border shipping costs for wholesalers are expected to rise. C) Wholesaling involves meeting the varied needs of local markets. D) Global wholesaling channels are too standardized to be profitable. E) Wholesaler consolidation prevents manufacturers from outsourcing. 33) How has e-commerce most likely benefitted wholesalers? A) Wholesalers with an online presence can globalize the supply chain. B) Independent electronic exchanges allow wholesalers to promote services. C) The risk of defective goods sold by fake e-merchants has been eliminated. D) Reverse online auctions enable wholesalers to improve customer relationships. E) Wholesalers gain more customer knowledge which leads to better service and value. 34) A(n) ________enables buyers of similar products to source and purchase items from multiple suppliers from a single location. A) independent electronic exchange B) online distribution center C) electronic auction house D) book-and-ship website E) online reverse auction 35) What was the most likely reason for the failure of B2B online exchanges? A) Buyers were unable to purchase similar products from one site. B) Exchanges overlooked the value provided by wholesalers. C) Wholesaler consolidation eliminated most e-distributors. D) Exchanges added an unnecessary and costly intermediary. E) Grey market pricing was unexpected by the exchanges. 36) Buyers attracted to online reverse auctions most likely want to ________. A) analyze a product’s lifetime cost of ownership B) form relationships with major wholesalers C) evaluate overall procurement costs D) focus on low product prices E) eliminate buying risks 37) Watson Wholesalers typically charges customers slightly higher product prices with the explanation that the services the firm provides are free. Which term best describes the strategy of Watson Wholesalers? A) activity-based costing B) value-added pricing C) fragmentation D) consolidation E) bundling 38) An ABC analysis is most likely used by wholesalers to ________. A) strengthen a business portfolio with key customers B) compare outsourcing with vertical integration C) estimate the service costs of customers D) separate product and service costs E) measure direct selling effects 39) Wilson Wholesalers, an electrical component distributor, charges customers separate amounts for various services, such as inspecting components prior to packaging, using priority shipping, and sorting components by part number. Which term best describes the strategy used by Wilson Wholesalers? A) fee for service model B) activity-based costing C) service consolidation D) fragmentation E) bundling 40) Which statement about power retailers is most likely FALSE? A) Power retailers usually buy in large quantities in select product categories. B) Power retailers usually adopt a buy direct approach due to purchasing volume. C) Power retailers typically rely heavily on small, regional wholesaler-distributors. D) Power retailers tend to reduce channel costs by creating in-house distribution systems. E) Power retailers in Europe, Japan, and the U.S. are bypassing independent wholesaler-distributors 41) Wholesalers are business establishments that sell products primarily to end-users but also to other businesses. 42) Agents, brokers, and commission agents buy or sell products, earn commissions or fees, and take ownership of the products they represent. 43) Collaborative filtering software enables wholesalers to use customer information to identify and suggest appropriate products for prospects. 44) Cooperatives are increasingly popular among small and medium-sized Japanese wholesalers that want to gain economies of scale and compete more effectively with large wholesalers. 45) Independent electronic exchanges rely on specialized software that allows bidders to submit pr