Give one example of how a wholesaler acts as an intermediary
What will be an ideal response?
Answer: Makers of breakfast cereal, such as Kellogg's, sell products to wholesalers, who in turn sell them to grocery stores, such as Whole Foods, who in turn sell them to customers. In this scenario, the wholesaler is acting as an intermediary between the producer and the retailer.
Explanation: Wholesalers, known as middlemen, are intermediaries who sell products to other businesses for resale to customers. Makers of breakfast cereal, such as Kellogg's, sell products to wholesalers, who in turn sell them to grocery stores, such as Whole Foods, who in turn sell them to customers. In this scenario, the wholesaler is acting as an intermediary between the producer and the retailer.
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Technology risk is the uncertainty that economies of scale or scope will be realized from the investment in new technologies.
a. true b. false
Which of the following circumstances are best suited for the use of personal selling?
A) when the products used are simple and easy-to-use B) when there is minimal risk involved in buying or using the products C) when the market has fewer and larger sellers D) when the products being marketed are inexpensive and easily available E) when prospective customers are spread across a wide geographic area