DECA Sports and Entertainment Marketing Practice Exam

What are independent vendors who manage their own inventory within a store called?

1. Distributors

2. Retailers

3. Rack Jobbers

4. Wholesalers

The correct answer is: Rack Jobbers

The correct answer is rack jobbers, as they are specialized independent vendors who manage their own inventory within a retail store. Rack jobbers typically provide merchandise on consignment, meaning they stock products on the store's shelves while maintaining ownership of the inventory until it is sold. This arrangement allows retailers to offer a diverse range of products without the burden of having to purchase and manage the inventory themselves. In this role, rack jobbers are responsible for selecting the types of products to stock, arranging displays, and handling pricing and restocking. This offers retailers flexibility and variety, while rack jobbers benefit from direct access to consumers in retail settings. The other choices represent different roles in the distribution and retailing process. Distributors serve as intermediaries that supply goods to various retailers and may not manage inventory within a single store. Retailers are businesses that sell products directly to consumers but typically own the inventory rather than managing it on behalf of someone else. Wholesalers purchase goods in bulk from manufacturers and sell them to retailers or other businesses, rather than managing inventory within stores directly.