Passage Two

　　Consumers are frequently unaware that about 30 percent of nation wide department stores are franchised(給予經銷權) with numerous outlets. Chain stores are a group of retail stores that are supervised or coordinated by centralized management. From a business perspective, chain stores have numerous advantages over independent stores, one of which is that the parent company almost always has the credit to purchase large quantities of goods to supply to its outlets and to receive a discount for placing such an order. Through the centralized system of distribution, chain stores can absorb the cost and price differential and attract consumers with various physical and psychological needs. They can also distribute their operating costs for accounting, advertising, marketing, merchandising, and transportation.

　　In general, approximately 50 percent of gross product cost results from the associated marketing research and distribution. While research focuses on the probable market segments, it strongly considers consumer behavior and cognitive motives rather than the actual prices of goods. Similarly, the cost increase in the multiple channels of distribution accounts for about 23 percent of the unit price. By combining their marketing resources and distribution and networks, franchise outlets can avoid performing whole stages of marketing studies and layers of distribution networks to reduce unit prices. It is the central company that conducts marketing and communicates with manufacturers, thus controlling production decisions and the pricing policy. Franchises operate according to their contracts with the parent company and pay it a fraction of their net gains. They symbolize a brand name and identify their goods with a particular range of quality that sets it apart from other similar products. Essentially, chain stores convert consumer brand name loyalty into profit; this factor determines franchise proliferation and results in a relatively low degree of failure.

　　62.What is the passage mainly about?

　　A) The Marketing of Chain Store Products

　　B) Marketing Studies and Distribution Networks

　　C) The Mechanism of Chain Stores

　　D) Pricing and Distribution

　　63.It can be inferred from the passage that chain stores____________.

　　A) are more profitable than department stores

　　B) can reduce their operating costs by the centralized management system

　　C) enjoy more freedom in pricing.

　　D) have a greater appeal than the parent company

　　64.Who is responsible for the marketing and communicating with the manufacturers according to the passage?

　　A) The parent company

　　B) Retailers

　　C) Chain stores

　　D) Independent outlets

　　65.What does " a fraction of their net gains"(Para.2) mean?

　　A) a certain amount of their net profit

　　B) a small amount of their net profit

　　C) part of their net profit

　　D) a large amount of their net profit

　　66.It can be inferred from the passage that the parent company probably dictates__________.

　　A) what sales personnel are employed

　　B) what profit an outlet makes

　　C) how products are sold

　　D) how goods are advised