Deck 15: Retailers, Wholesalers, and Direct Marketers

Question 1

Retailers must consider the overall profitability of each product line and product category to develop a successful merchandise mix.

Answer 1

True

Question 2

The main factors involved in determining a product's markup are the inventory turnover rate and the services performed by the retailer.

Answer 2

True

Question 3

A retailer's merchandising strategy guides decisions regarding the items it will offer.

Answer 3

True

Question 4

While implementing the strategy of category management,a category manager oversees an entire product line and is responsible for the profitability of the product group.

Question 5

Both vendors and retailers use the strategy of category management.

Question 6

The retail stores in a planned shopping center maintain uniform hours of operation,including evening and weekend hours.

Question 7

The wheel of retailing attempts to explain the patterns of change in retailing.

Question 8

A neighborhood shopping center consists of large stores featuring shopping goods,professional offices,a branch bank,and also a movie theatre or a supermarket.

Question 9

Markups are determined partly on the basis of marketers' judgments of the amounts that consumers will pay for a product.

Question 10

Vending machines and convenience food stores are not affected by the wheel of retailing because their strategy for customer satisfaction is based on location and convenience,not pricing.

Question 11

Rising in popularity during the 1990s,power centers offered value because they underpriced department stores while providing a huge selection of specialty merchandise.

Question 12

The pricing strategies seldom influence consumer perceptions of a retailer.

Question 13

Lifestyle centers seek to offer the intimacy and easy access of neighborhood village retailing with a fashionable cachet.

Question 14

Other things being equal,stores with a higher inventory turnover rate can cover their costs and earn a profit while charging a smaller markup.

Question 15

The level of competition for business in the market is an important criteria considered by retailers while selecting the target market.

Question 16

Retail outlets are the contact points between the channel members and ultimate consumers.

Question 17

A retailer's customer service strategy can support the efforts of the retailer in building demand for a line of merchandise.

Question 18

Markup can be expressed as a percentage of the total cost of the product or the selling price.

Question 19

Other things being equal,stores that offer more services charge smaller markups to cover their costs.

Question 20

A retailer starts to define its marketing strategy by selecting its inventory management strategy.

Question 21

Beauty consultants at cosmetics counters in department stores often give customers makeovers.In addition to the makeup,the consultants discuss skin care products to improve skin texture so the makeup looks better.This type of interaction is called suggestion selling.

Question 22

Chain stores usually obtain merchandise at lower prices from manufacturers compared to their independent rivals.

Question 23

Many consumers shop for reasons other than just purchasing needed products.

Question 24

Macy's is a retail store that focuses on fashion-oriented merchandise,backed by a complete array of customer services.It can be considered as a self-service store.

Question 25

Selling up is a retailing practice in which salespeople try to persuade customers to buy higher-priced items than originally intended.

Question 26

Convenience retail stores attract consumers by providing easy access,extended store hours,and adequate parking facilities.

Question 27

A full-service retailer usually sells convenience products that people can purchase without any assistance.

Question 28

The term "atmospherics" exclusively refers to the interior décor of a store.

Question 29

Chain stores are groups of retail outlets that operate under central ownership and management and handle the same product lines.

Question 30

Specialty retailers typically attract customers by offering the products at the lowest possible prices.

Question 31

Salespeople involved in suggestion selling try to help customers recognize true needs rather than unwanted merchandise.

Question 32

Limited-line retailers cater to the needs of people who want to select from complete lines in purchasing particular products.

Question 33

If merchandise selection changes frequently to follow fashion trends,advertising is typically used to promote current styles effectively.

Question 34

Cooperatives help independent retailers to compete with chains by providing volume buying power.

Question 35

Specialty stores typically carry convenience and shopping goods.

Question 36

Most of the specialty stores are chain outlets with large scale operations.

Question 37

One of the main objectives of the interior décor of a store is to induce shoppers to buy.

Question 38

In the case of convenience stores,customers usually compare prices,assortments,and quality levels at competing outlets before making purchase decisions.

Question 39

Nordstrom carefully combines defined product lines and services in an attempt to convince consumers to expend considerable effort shopping at their stores.Nordstrom can be regarded as a specialty retailer.

Question 40

A local food store can be regarded as a convenience retailer.

Question 41

A supercenter is usually larger than a hypermarket.

Question 42

Category killers are invulnerable to competition because of the huge selections they offer in different product lines.

Question 43

Mass merchandisers usually provide the same depth of assortment as a department store within each product line.

Question 44

Sales offices carry inventory and process orders for customers from available stock.

Question 45

O&S Ticket Brokers,a Broadway theater ticket agency,sells tickets in bulk to corporate companies.It would be considered a wholesaling intermediary even though the firm does not take title to the tickets it sells.

Question 46

In essence,a department store is a series of limited-line and specialty stores under one roof.

Question 47

Category killers are a type of limited-line retailer that offer huge selections and low prices in single product lines.

Question 48

Wholesaling intermediaries create utility in the form of time,place,and ownership.

Question 49

Wholesaling intermediaries are specialists in production or manufacturing functions.

Question 50

Retail convergence results in blurring of distinctions between types of retailers and the merchandise mix they offer.

Question 51

General merchandise retailers distinguish themselves from specialty and limited-line retailers by the large number of product lines they carry.

Question 52

Inventory at off-price stores changes frequently as buyers take advantage of special price offers from manufacturers selling excess merchandise.

Question 53

Variety stores offer an extensive range and assortment of low-price merchandise.

Question 54

A discount house offers fewer services to its customers.

Question 55

A trade fair is a periodic show at which manufacturers in a particular industry display their wares for visiting retail and wholesale buyers.

Question 56

Sales offices located closer to the firm's customers help limit selling costs and support effective customer service.

Question 57

Retailers practice scrambled merchandising to boost sales volume.

Question 58

Wholesaling intermediaries tend to reduce the number of transactions between buyers and sellers.

Question 59

Agents and brokers perform wholesaling activities without taking title to the goods.

Question 60

Manufacturer-owned facilities are beneficial when products are perishable and need rigid control of distribution to avoid spoilage.

Question 61

A selling agent is an ideal marketing channel for weakly financed,production-oriented firms.

Question 62

The response rates for direct-mail marketing are measurable and higher compared to other types of advertising.

Question 63

Telemarketing is the most frequently used form of direct marketing and provides high returns to the marketers on their expenditures.

Question 64

Internet-based retailers usually maintain little or no inventory and order directly from vendors to fill customer orders received via their websites.

Question 65

Brunzwick Zone is a gym that offers its customers a chance to buy health drinks through a vending machine.This type of service is called automatic merchandising.

Question 66

Infomercials are a form of telemarketing.

Question 67

Spiegel is a mail-order wholesaler that relies on catalogs to contact its customers.It would be considered a limited-function merchant wholesaler.

Question 68

Marc is a wholesaling intermediary who brings buyers and sellers together,sometimes representing buyers and sometimes representing sellers,but never both in the same transaction.This information indicates that Marc is a commission merchant.

Question 69

Vending machines are classified as a form of automatic merchandising.

Question 70

Rack jobbers are full-function merchant wholesalers that market specialized lines of merchandise to retailers.

Question 71

In the United States,cash-and-carry operations typically function as departments within regular full-service wholesale operations.

Question 72

Direct-response retailing does not include home shopping that sells merchandise through telephone orders.

Question 73

Truck wholesalers make regular deliveries to retailers and perform collection and promotion functions.

Question 74

A manufacturer's representative can work only for a single manufacturer.

Question 75

Through direct selling,manufacturers completely bypass retailers and wholesalers and set up their own channels to sell their products directly to consumers.

Question 76

Direct-mail marketing relies heavily on database technology to manage lists of names and segment them according to the objectives of the promotional campaign.

Question 77

A cash-and-carry wholesaler performs most wholesaling functions including financing and delivery.

Question 78

Compared to mail-order wholesalers,truck wholesalers tend to provide fewer services and set lower prices because they incur lower operating costs.

Question 79

Merchant wholesalers are a class of wholesaling intermediaries who do not take title to the goods they handle.

Question 80

Drop shippers take title to the goods,but never physically handle or even see the merchandise.