From reading the scenario at the top, which answers would best represent the questions being asked with regard to the scenario?
 

Read the scenario below and answer the related questions. Ralph has just purchased a small business that manufactures sunglasses for people who play sports. The previous owner of the business sold the sunglasses online to consumers. Despite the high quality of the sunglasses and the market demand, the business did not succeed, due mostly to the limited growth and lack of exposure of the sunglasses to the target market. Ralph would like to expand distribution of the sunglasses by going through more traditional channels. He has considered the following options: 1. Selling directly to retailers 2. Selling to sporting goods wholesalers 3. Using an agent or broker who could sell to a wholesaler. Each option has its advantages and disadvantages. His ultimate distribution goal is to get sporting goods stores and other specialty athletic shops to carry the sunglasses, as they are quite expensive and should retail at around $250. Please refer to Sunglasses Scenario for questions C1-C5. C1. C2. C3. Before Ralph purchased the business, the sunglasses business used a wholesaler channel? a. True b. False What would most likely lead Ralph to reject option 1 (selling directly to retailers)? a. Retailers of sporting goods are not plentiful. b. Ralph's' business is too small to transport his products directly to retailers. c. Retailers have no power in the marketing channel. d. Salespeople don't like calling on retailers. e. None of these are reasons to reject selling directly to retailers. What is the major advantage of option 3 for Ralph (using an agent or broker)? a. This option is least expensive. b. Agents and brokers take title to goods and therefore, assume liability. c. Agents and brokers match small manufacturers with small retailers. d. The channel is much more direct. e. Agents and brokers don't charge commissions, so Ralph will have higher margins.