Chapter 11-14 FInal Exam Study Guide

Retain the title to the products displayed and bill

Info icon This preview shows pages 8–9. Sign up to view the full content.

View Full Document Right Arrow Icon
perform all channel functions, and sell on consignment to retailers. Retain the title to the products displayed and bill retailers only for the merchandise sold . Hosiery, toys, housewares, and health and beauty items are sold by rack jobbers . Cash and carry wholesalers take title to merchandise but sell only to buyers who call on them, pay cash for merchandise, and furnish their own transportation for merchandise. Carry a limited product assortment and do not make deliveries, extend credit, or supply market information. Common in electric supplies, office supplies, hardware products, and groceries . Drop shippers , or desk jobbers , are wholesalers that own the merchandise they sell but do not physically handle, stock, or deliver it. They simply solicit orders from retailers and other wholesalers and have the merchandise shipped directly from a producer to a buyer . Used for bulky products such as coal, lumber, and chemicals, which are sold in extremely large quantities . Truck jobbers are small wholesalers that have a small warehouse from which they stock their trucks for distribution to retailers. Handle limited assortments of fast-moving or perishable items that are sold for cash directly from trucks in their original packages . bakery items, dairy products, and meat.
Image of page 8

Info icon This preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
“Agents and Brokers” Agents and brokers do not take title to merchandise and typically perform fewer channel functions. They make their profit from commissions or fees paid for their services, whereas merchant wholesalers make their profit from the sale of the merchandise they own. Manufacturer's agents or manufacturer's representatives , work for several producers and carry noncompetitive, complementary merchandise in an exclusive territory. Manufacturer's agents act as a producer's sales arm in a territory and are principally responsible for the transactional channel functions, primarily selling. Used in the automotive supply, footwear, and fabricated steel industries Selling agents represent a single producer and are responsible for the entire marketing function of that producer. They design promotional plans, set prices, determine distribution policies, and make recommendations on product strategy. Used by small producers in the textile, apparel, food, and home furnishing industries. Brokers are independent firms or individuals whose principal function is to bring buyers and sellers together to make sales. Have no continuous relationship with the buyer or seller but negotiate a contract between two parties and then move on to another task. Used by producers of seasonal products (such as fruits and vegetables) and in the real estate industry A manufacturer's branch office carries a producer's inventory and performs the functions of a full-service wholesaler. A manufacturer's sales office does not carry inventory, typically performs only a sales function, and serves as an alternative to agents and brokers.
Image of page 9
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern