Question 1

Experts suggest that online retailers should think of their websites as __________ if they are to attract and retain customers.

Accepted Answer

A)  cash cows
B)  dynamic billboards
C)  virtual reality stores
D)  traditional retail stores
E)  online entertainmentF) A) and B)
G) C) and E)

Question 2

The major difference between an off-price retailer and a discount store is that off-price retailers purchase merchandise from manufacturers __________ and discount stores buy from wholesalers __________.

Accepted Answer

A)  who are trying to offload returned or slightly irregular inventory;selling new but inexpensive merchandise
B)  at below wholesale prices;and charge a high initial price with the full intent of taking markdowns later
C)  at below wholesale prices;at full price but take a less of a markup
D)  at various price points;at the lowest price points possible
E)  who are part of a retailing cooperative;who are part of a wholesaling cooperativeF) A) and E)
G) A) and D)

Question 3

Which of the following firms has made the wisest wholesaler choice for its product?

Accepted Answer

A)  Sam's Coal Country uses a cash and carry wholesaler for its coal.
B)  Amy's Amazing Appetizers uses a rack jobber for its frozen apricot aperitifs.
C)  Raisha's Retros uses a rack jobber for its replica racecar radios in travel plazas on interstate highways.
D)  Shayna's Superior Supplies uses a desk jobber for its staplers.
E)  Nova's Novelties uses a truck jobber for its never-needs-a-battery night lights.F) D) and E)
G) A) and D)

Question 4

Explain the difference between breadth of line and depth of line.Be sure to include the definition of scrambled merchandising in your explanation.

Accepted Answer

Breadth of line means the store carries ...

Question 5

The West Edmonton Mall in Alberta,Canada is a conglomerate of more than 800 stores,the world's largest indoor amusement park,more than 100 restaurants,a movie complex,and two hotels.This retail complex is the largest example of a(n) __________.

Accepted Answer

A)  regional shopping center
B)  urban microcenter
C)  megaplex
D)  hypermarket
E)  supercenterF) B) and D)
G) B) and C)

Question 6

Which of the following is an example of nonstore retailing?

Accepted Answer

A)  hypermarkets
B)  supercenters
C)  shopping centers
D)  vending machines
E)  general merchandise storesF) A) and D)
G) A) and E)

Question 7

Savings to the consumer at off-price retailers are reported as high as __________ off the prices of a traditional department store.

Accepted Answer

A)  50%
B)  60%
C)  70%
D)  80%
E)  90%F) A) and E)
G) D) and E)

Question 8

Direct selling is likely to continue to have strong growth in markets

Accepted Answer

A)  in which people prefer not to have to a social shopping experience.
B)  where convenience is not especially important.
C)  in which consumers are knowledgeable shoppers.
D)  where there is a lack of effective distribution channels.
E)  that have an excellent infrastructure.F) A) and E)
G) B) and E)

Question 9

The analytical tool that positions retail outlets in terms of the breadth of their product line and value added,such as location,product reliability,or prestige,is referred to as the __________.

Accepted Answer

A)  growth share matrix
B)  MAC framework
C)  market-product grid
D)  retail positioning matrix
E)  wheel of retailingF) B) and E)
G) A) and D)

Question 10

Because consumers often use price as an indicator of product quality,what decision factor becomes important in this situation?

Accepted Answer

A)  store image
B)  value
C)  convenience
D)  product benefits
E)  maintained priceF) B) and D)
G) B) and C)

Question 11

Higher paper costs,increased postage rates,the growing interest in do-not-mail legislation,and concern for "green" mailings have resulted in

Accepted Answer

A)  a switch to online catalogs and direct-to-customer e-mail advertisements.
B)  the use of thinner,lightweight paper products.
C)  a focus on specialty catalogs for market niches.
D)  the banning of "junk" mail by a growing number of environmentally-concerned communities.
E)  a resurgence in non-automated telemarketing.F) A) and B)
G) None of the above

Question 12

Your neighborhood dry cleaner or florist is likely to be categorized as an independent retailer.This means it is owned by a(n) __________.

Accepted Answer

A)  individual
B)  conglomerate
C)  consortium
D)  chain
E)  cooperativeF) B) and C)
G) A) and D)

Question 13

According to Figure 16-9 above,where would you find the highest prices,margins,and status?

Accepted Answer

A)  "A"
B)  "B"
C)  "C"
D)  "D"
E)  "A" and "D"F) A) and B)
G) None of the above

Question 14

Retailing's economic impact is represented by the __________.

Accepted Answer

A)  the price asked for any one item for sale
B)  the cost of goods sold
C)  the people employed in retailing
D)  the net return on capital
E)  the elimination of global boundariesF) A) and D)
G) C) and E)

Question 15

The wholesalers that perform all channel functions and are found in the health foods,automotive parts,and seafood industries would be __________.

Accepted Answer

A)  specialty wholesalers
B)  full-line wholesalers
C)  limited-wholesalers
D)  universal wholesalers
E)  cash and carry wholesalersF) B) and C)
G) B) and D)

Question 16

At the Christmas Tree Shop,customers can shop for Christmas gifts at any time of year.What type of utility primarily does this store provide for its customers?

Accepted Answer

A)  place and conformance
B)  possession and form
C)  form
D)  performance
E)  timeF) B) and C)
G) All of the above

Question 17

Briefly describe the three ways retail outlets can be classified.

Accepted Answer

Retail outlets can be classified in thre...

Question 18

Merchants such as the Burlington Coat Factory sell brand-name merchandise at lower than regular prices.This means that they are using a(n)

Accepted Answer

A)  off-price retailing strategy.
B)  markdown pricing strategy.
C)  everyday fair pricing strategy.
D)  everyday low pricing strategy.
E)  maintained markdown pricing strategy.F) All of the above
G) A) and B)

Question 19

Which type of store gives shoppers the greatest variety of merchandise?

Accepted Answer

A)  a hypermarket
B)  a specialty clothing store
C)  a limited-line gift store
D)  a clothing outlet
E)  a discount storeF) D) and E)
G) All of the above

Question 20

Briefly describe the three levels of service offered by retail outlets.

Accepted Answer

Retail outlets generally offer three lev...

Exam 16: Retailing and Wholesaling

The West Edmonton Mall in Alberta,Canada is a conglomerate of more than 800 stores,the world's largest indoor amusement park,more than 100 restaurants,a movie complex,and two hotels.This retail complex is the largest example of a(n) __________.

Correct AnswerverifiedShow Answer

Which type of store gives shoppers the greatest variety of merchandise?

Correct AnswerverifiedShow Answer

Because consumers often use price as an indicator of product quality,what decision factor becomes important in this situation?

Correct AnswerverifiedShow Answer

According to Figure 16-9 above,where would you find the highest prices,margins,and status?

Correct AnswerverifiedShow Answer

Which of the following firms has made the wisest wholesaler choice for its product?

Correct AnswerverifiedShow Answer

Savings to the consumer at off-price retailers are reported as high as __________ off the prices of a traditional department store.

Correct AnswerverifiedShow Answer

Your neighborhood dry cleaner or florist is likely to be categorized as an independent retailer.This means it is owned by a(n) __________.

Correct AnswerverifiedShow Answer

Briefly describe the three levels of service offered by retail outlets.

Correct AnswerverifiedRetail outlets generally offer three lev...View AnswerShow Answer

Retailing's economic impact is represented by the __________.

Correct AnswerverifiedShow Answer

Explain the difference between breadth of line and depth of line.Be sure to include the definition of scrambled merchandising in your explanation.

Correct AnswerverifiedBreadth of line means the store carries ...View AnswerShow Answer

Higher paper costs,increased postage rates,the growing interest in do-not-mail legislation,and concern for "green" mailings have resulted in

Correct AnswerverifiedShow Answer

Direct selling is likely to continue to have strong growth in markets

Correct AnswerverifiedShow Answer

Briefly describe the three ways retail outlets can be classified.

Correct AnswerverifiedRetail outlets can be classified in thre...View AnswerShow Answer

The wholesalers that perform all channel functions and are found in the health foods,automotive parts,and seafood industries would be __________.

Correct AnswerverifiedShow Answer

Merchants such as the Burlington Coat Factory sell brand-name merchandise at lower than regular prices.This means that they are using a(n)

Correct AnswerverifiedShow Answer

Experts suggest that online retailers should think of their websites as __________ if they are to attract and retain customers.

Correct AnswerverifiedShow Answer

Which of the following is an example of nonstore retailing?

Correct AnswerverifiedShow Answer

The major difference between an off-price retailer and a discount store is that off-price retailers purchase merchandise from manufacturers __________ and discount stores buy from wholesalers __________.

Correct AnswerverifiedShow Answer

At the Christmas Tree Shop,customers can shop for Christmas gifts at any time of year.What type of utility primarily does this store provide for its customers?

Correct AnswerverifiedShow Answer

The analytical tool that positions retail outlets in terms of the breadth of their product line and value added,such as location,product reliability,or prestige,is referred to as the __________.

Correct AnswerverifiedShow Answer

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Retail outlets generally offer three lev...
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Breadth of line means the store carries ...
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Retail outlets can be classified in thre...
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The major difference between an off-price retailer and a discount store is that off-price retailers purchase merchandise from manufacturers and discount stores buy from wholesalers .

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