Deck 13: Retailing and Wholesaling

Question 1

Retail assortments are looking more and more alike because .

A)market segmentation has proved ineffective
B)national- brand manufacturers have placed their products almost everywhere
C)customers today are more focused on service differentiation
D)more stores are practicing "experiential retailing"
E)stores are clustered together to increase their customer pulling power

Answer 1

B

Question 2

,which buy at less- than- regular wholesale prices and charge consumers less than retail,are independently owned and run or are divisions of larger retail corporations.

A)Full- service retailers
B)Independent off- price retailers
C)Discount stores
D)Warehouse clubs
E)Superstores

Answer 2

B

Question 3

retailers in the United States are growing faster than product retailers.

A)Off- price
B)Merchant
C)Service
D)Specialty
E)Discount

Answer 3

C

Question 4

Which of the following is NOT one of the major classifications of wholesalers?

A)merchant wholesalers
B)brokers
C)agents
D)manufacturers' sales branches and offices
E)specialty wholesalers

Question 5

Savvy wholesalers realize that their only reason for existence comes from increasing the efficiency and effectiveness of the _.

A)retailer
B)industry
C)entire marketing channel
D)end customer
E)distribution system

Question 6

Most retailers are significantly behind _ _ retailers in global expansion.

A)Asian;African
B)African;Peruvian
C)American;European and Asian
D)Asian;American
E)European;American

Question 7

,the world's second largest retailer after Walmart,has embarked on an aggressive mission to extend its role as a leading international retailer.

A)Target
B)McDonald's
C)IKEA
D)Carrefour
E)Costco

Question 8

McDonald's,Subway,and Pizza Hut are all examples of a .

A)power center
B)franchise
C)retailer cooperative
D)voluntary chain
E)full- service retailer

Question 9

Which wholesaler's channel function is demonstrated when a buyer receives quicker delivery because wholesalers are located closer than producers?

A)risk bearing
B)buying and assortment building
C)transportation
D)financing
E)warehousing

Question 10

were the main form of retail cluster until the 1950s.

A)Central business districts
B)Independent off- price retailers
C)Discount stores
D)Department stores
E)Independent stores

Question 11

Touch- screen kiosks,customer- loyalty cards,handheld shopping assistants,and self- scanning checkout systems are all examples of how retailers use technology to .

A)produce more accurate forecasts
B)interact with suppliers
C)maintain inventory costs
D)send information between stores
E)meet consumers' expectations

Question 12

You own a neighborhood grocery store and would like to have non- food items delivered,priced,displayed and inventoried by a wholesaler.You do not want to purchase title to the goods.Which type of wholesaler best fits your needs?

A)mail- order wholesaler
B)drop shipper
C)rack jobber
D)agents and brokers
E)cash- and- carry wholesaler

Question 13

The lighting in Jake's Steak Restaurant is muted.The chairs are covered in leather and solid enough to last a lifetime,and each table is covered with a white linen cloth.The colors are limited to earth tones with an occasional splash of red.Patrons can not hear any kitchen noises,only a pleasant melody that seems familiar but unrecognizable.The smells are extraordinarily varied.This is a description of the restaurant's _ .

A)target
B)services mix
C)atmosphere
D)product assortment
E)promotions

Question 14

Which type of small store carries a limited line of high- turnover convenience goods and makes most of its revenues from cigarette,beverage,and gasoline sales?

A)department
B)chain
C)hypermarket
D)convenience
E)supermarket

Question 15

operate in warehouse- like facilities,sell a limited selection of items,and offer few frills.Customers pay annual membership fees and are able to purchase goods at deep discounts.

A)Warehouse clubs
B)Superstores
C)Independent off- price retailers
D)Factory outlets
E)Discount stores

Question 16

Big and Tall Men's Shop carries goods in larger sizes;this allows the store to _ other stores.

A)differentiate itself from
B)cluster with
C)affect the store atmosphere of
D)converge with
E)align itself with

Question 17

Home Depot offers "how- to" classes for do- it- yourselfers,featuring instructions on how to complete home improvement projects using products sold at its stores.This is an example of how Home Depot has differentiated itself through its .

A)atmosphere
B)services mix
C)targeting
D)product assortment
E)segmentation

Question 18

are flourishing due to increased use of market segmentation and market targeting.

A)Discount stores
B)Chain stores
C)Specialty stores
D)Off- price stores
E)Superstores

Question 19

is the basis of all discount operations and is typically used by sellers of convenience goods.Retailers offering this level of service require customers to perform their own "locate- compare- select" process in order to save money.

A)Full- service
B)Wholesaling
C)Limited- service
D)Specialty- service
E)Self- service

Question 20

An independent hardware retail store 100 miles from the nearest city of more than 5,000 people but providing needed supplies for area ranchers would most likely buy its plumbing and electrical supplies through a _ _.

A)commission merchant
B)mail- order wholesaler
C)merchandise broker
D)rack jobber
E)truck jobber

Question 21

Which of the following is most likely the greatest factor in the increasingly short life cycle of new retail forms?

A)stagnating retail convergence
B)economic swings
C)import and export regulations
D)global expansion of major retailers
E)changes in technology

Question 22

sell standard merchandise at lower prices by accepting lower margins and selling higher volume.

A)Discount stores
B)Factory outlets
C)Merchant wholesalers
D)Limited- service retailers
E)Full- service retailers

Question 23

Tony Pool Chemical Co.purchased 144 buckets of chlorine tablets over the Internet from Chemical,Inc. ,then placed the order with the manufacturer and arranged for its transportation by truck to the Tony Pool store.Chemical,Inc.took title to the pool chemicals but never actually took possession of them.Chemical,Inc.is an example of a .

A)mail- order wholesaler
B)cash- and- carry wholesaler
C)drop shipper
D)rack jobber
E)truck jobber

Question 24

and _ do not take title to goods,and they perform only a few channel functions.

A)Power centers;independent wholesalers
B)Independent wholesalers;off- price retailers
C)Brokers;agents
D)Full- service wholesalers;limited- service wholesalers
E)Branches;offices

Question 25

Which type of wholesaler sells primarily to manufacturers rather than to retailers?

A)drop shippers
B)rack jobbers
C)wholesale merchants
D)industrial distributors
E)cash- and- carry wholesalers

Question 26

While all retailers would like to achieve while charging ,the two seldom happen together.

A)high volume;high markups
B)high volume;cut- rate markups
C)high volume;low markups
D)low volume;high markups
E)low volume;low markups

Question 27

In order to _ ,wholesalers can propose automatic reordering systems,set up management- training and advising systems,or even sponsor a voluntary chain.

A)build better relationships with customers
B)determine product and service assortments
C)define their target markets
D)negotiate pricing
E)identify more profitable customers

Question 28

Mail- order,phone,and online shopping are all examples of _.

A)off- price retailing
B)full- service retailing
C)shopper marketing
D)nonstore retailing
E)wholesaling

Question 29

Stan Clark,the owner of Eskimo Joe's bar,is considering closing the bar and selling the logo apparel with direct marketing through a catalog.Stan Clark is considering a(n)option.

A)self- service
B)shopper marketing
C)experiential shopping
D)wholesaling
E)nonstore retailing

Question 30

Until retailers and _ their markets,they cannot make consistent decisions about product assortment,services,pricing,advertising,store décor,or any of the other decisions that must support their positions.

A)target;compete with
B)divest;eliminate
C)define;profile
D)limit;serve
E)compete with;position

Question 31

Which of the following is NOT one of a wholesaler's channel functions?

A)providing market information
B)off- price retailing
C)bulk- breaking
D)financing
E)risk bearing

Question 32

Which type of store is much larger than regular supermarkets and offers a large assortment of routinely purchased food products,nonfood items,and services?

A)superstore
B)factory outlet
C)chain
D)off- price
E)category killer

Question 33

Which type of stores usually carry more specialty goods for which customers like to be "waited on" and have much higher operating costs,which are passed along to the customer?

A)category killer stores
B)self- service stores
C)specialty- service retailers
D)full- service stores
E)independent stores

Question 34

Press conferences,speeches,store openings,special events,newsletters,magazines,and public service activities are examples of ways retailers use .

A)the wheel- of- retailing concept
B)personal selling
C)sales promotions
D)retail convergence
E)public relations

Question 35

Service differentiation among retailers has .

A)increased
B)stayed the same
C)tripled
D)franchised
E)decreased

Question 36

Overstock.com,a Web seller that buys furniture,clothing,electronics,and more from a variety of producers at less- than- regular wholesale prices and then charges customers less than retail,is a(n) .

A)discount store
B)wholesale club
C)category killer
D)factory outlet
E)independent off- price retailer

Question 37

includes all the activities involved in selling products or services directly to final consumers for their personal,nonbusiness use.

A)Franchising
B)Retailing
C)Brokering
D)Disintermediation
E)Wholesaling

Question 38

are facing slow sales growth because of slower population growth,increased competition,and the rapid growth of out- of- home eating.

A)Chain stores
B)Convenience stores
C)Supermarkets
D)Department stores
E)Hypermarkets

Question 39

In the battle for "share of stomachs," some supermarkets are cutting costs and attempting to compete more effectively with food discounters,while others are moving upscale,providing improved store environments and higher- quality food offerings.These two different strategies represent differences in .

A)retail convergence
B)retail technology
C)positioning
D)place decisions
E)wholesaling

Question 40

At Neiman Marcus,a first- class department store,customers shop for high- end products and have come to expect assistance in every phase of the shopping process.Neiman Marcus is a _ .

A)limited- service retailer
B)power center
C)specialty store
D)self- service retailer
E)full- service retailer

Question 41

A _ _ contains between 15 and 40 retail stores,including a department or variety store,a supermarket,specialty stores,professional offices,and sometimes a bank.

A)strip mall
B)regional shopping center
C)community shopping center
D)power center
E)neighborhood shopping center

Question 42

Refer to the scenario below to answer the following questions.
In the 1970s,Shipshewana was only a small town with a hardware store,a grain mill,a shoe store,a small restaurant,and a grocery store.Over the next two decades,the small town transformed into an international tourist attraction,attracting thousands of tourists who are intrigued with the lifestyle of Shipshewana's largest population-the Amish.
Ben and Mary Miller,having grown up within the Amish faith,decided to capitalize on their town's popularity and their woodworking skills.Their shop,Indiana Wood,began with a small display of handmade hickory rocking chairs,Ben Miller's specialty.But within a few months,the display at Indiana Wood included picnic tables,flower boxes,and small handmade novelty items.No other shop offers the same.
Mary Miller decorated the shop's display room with authentic Amish décor and eventually hired three Amish friends to sew and embroider napkins and other textiles per customer request.In addition,two women from the Amish community sought permission from the Millers to display home- baked pastries and jellies on Tuesdays and Wednesdays,when Shipshewana attracts swarms of visitors to its flea market on the south edge of town.
"Shipshewana is full of specialty shops," Mary Miller stated."People don't come here to buy things made in China or Taiwan.They want real,Amish- made goods."
Indiana Wood is best classified as a(n)retailer.

A)self- service
B)discount
C)limited- service
D)off- price
E)full- service

Question 43

A _ contains from 40 to 200 stores,is like a covered mini- downtown,and attracts customers from a wide area.

A)power center
B)regional shopping center
C)strip mall
D)community shopping center
E)neighborhood shopping center

Question 44

As a result of the great success of corporate chains,many independent stores choose to band together in either a voluntary chain or a(n).

A)independent off- price retailer
B)retailer cooperative
C)factory outlet
D)convenience cooperative
E)warehouse club

Question 45

A(n)brings buyers and sellers together and assists in negotiations.

A)retailer
B)retail convergence
C)broker
D)agent
E)wholesaler

Question 46

7- Eleven has recently begun to redesign and restock its stores to offer a more upscale environment and products,such as house wines and fresh foods.7- Eleven has changed its .

A)positioning
B)size
C)wholesaler
D)service level
E)relative prices

Question 47

Convergence means greater for retailers and greater difficulty in offerings.

A)competition;differentiating
B)differentiating;pricing
C)sales;differentiating
D)profit margins;sales
E)branding;differentiating

Question 48

Which of the following types of retailers is most likely to practice everyday low pricing (EDLP)?

A)department stores
B)full- service retailers
C)category killers
D)convenience stores
E)discount stores

Question 49

Refer to the scenario below to answer the following questions.
In the 1970s,Shipshewana was only a small town with a hardware store,a grain mill,a shoe store,a small restaurant,and a grocery store.Over the next two decades,the small town transformed into an international tourist attraction,attracting thousands of tourists who are intrigued with the lifestyle of Shipshewana's largest population-the Amish.
Ben and Mary Miller,having grown up within the Amish faith,decided to capitalize on their town's popularity and their woodworking skills.Their shop,Indiana Wood,began with a small display of handmade hickory rocking chairs,Ben Miller's specialty.But within a few months,the display at Indiana Wood included picnic tables,flower boxes,and small handmade novelty items.No other shop offers the same.
Mary Miller decorated the shop's display room with authentic Amish décor and eventually hired three Amish friends to sew and embroider napkins and other textiles per customer request.In addition,two women from the Amish community sought permission from the Millers to display home- baked pastries and jellies on Tuesdays and Wednesdays,when Shipshewana attracts swarms of visitors to its flea market on the south edge of town.
"Shipshewana is full of specialty shops," Mary Miller stated."People don't come here to buy things made in China or Taiwan.They want real,Amish- made goods."
The Amish décor and shop workers give customers an authentic impression of the pride and skill built into the shop's products.These aspects also contribute to the store's .

A)services mix
B)segmentation
C)atmosphere
D)product assortment
E)targeting

Question 50

are the largest group of wholesalers.The group can be divided into the two broad types of full- service and limited- service.

A)Agents
B)Merchant wholesalers
C)Specialty wholesalers
D)Manufacturer sellers
E)Brokers

Question 51

The Home Depot entered the market as a store for professional and amateur plumbers,electricians,and carpenters.Then it introduced its garden centers.Next came its home design center that provides help with all kinds of interior decorating problems.Now it is enlarging its garden centers and hiring knowledgeable gardeners to staff these centers.The addition of more amenities and greater assortment can be best explained by which of the following?

A)the trend toward disintermediation
B)the success of off- price retailers
C)the interconnectedness of the retail life cycle
D)the wheel- of- retailing hypothesis
E)the 80/20 rule of retailing

Question 52

Macy's department stores carry a wide range of product lines,including clothing,jewelry,kitchenware,and home furnishings.Macy's typically charges a relatively high markup,but also holds frequent sales and price promotions,in particular offering discounts to customers who use a Macy's credit card.Macy's uses .

A)experiential retailing
B)self- service retailing
C)retail convergence
D)high- low pricing
E)everyday low pricing

Question 53

Which of the following is most likely true about shoppers who prefer to shop at "lifestyle centers"?

A)They prefer upscale stores.
B)They are motivated by deals on last year's merchandise and seconds.
C)They prefer out- of- the- way locations.
D)They rarely dine out.
E)They prefer inexpensive atmospheres.

Question 54

Which type of limited- service wholesaler is owned by farmers who assemble farm produce to sell in local markets?

A)producer's cooperative
B)truck jobber
C)rack jobber
D)cash- and- carry wholesaler
E)drop shipper

Question 55

A retailer may fail because it tries to provide "something for everyone" and ends up satisfying no market well.Successful retailers their target markets well and position themselves strongly.

A)position
B)franchise
C)define
D)increase
E)wholesale

Question 56

Nita can visit her local supermarket and buy a dozen roses,a gallon of milk,two birthday cards,a bag of cat litter,and a pan for roasting a turkey.This best illustrates how a wholesaler has added value through the channel function of .

A)directing logistics
B)management services
C)creating assortments
D)creating atmospherics
E)market information

Question 57

such as Sears provide more sales assistance because they carry more shopping goods about which customers need information.Their increased operating costs result in higher prices.

A)Specialty- service retailers
B)Limited- service retailers
C)Off- price retailers
D)Full- service retailers
E)Self- service retailers

Question 58

Which type of store carries a deep assortment,has knowledgeable staff,and might actually be viewed as a giant specialty store?

A)independent
B)shopping center
C)chain
D)factory outlet
E)category killer

Question 59

Like retailers,wholesalers must their target markets and themselves effectively,for they cannot serve everyone.

A)identify;compare
B)define;position
C)position;define
D)franchise;discount
E)discount;franchise

Question 60

A retailer's should differentiate the retailer while matching target shoppers' expectations.One strategy is to offer merchandise that no other competitor carries.

A)product assortment
B)distribution strategy
C)broker
D)environment
E)agent

Question 61

Today's trend in retail clusters is toward ,huge unenclosed shopping centers consisting of a long strip of retail stores,including at least one large,freestanding anchor store like Walmart.Each store has its own entrance with parking directly in front for shoppers who wish to visit only one store.

A)superstores
B)shopping malls
C)chain stores
D)regional shopping centers
E)power centers

Question 62

In response to a(n),many retailers have cut costs,used price promotions,and added new value pitches to their positioning.

A)dot- com meltdown
B)down economy
C)up economy
D)dot- com boom
E)shift in retail technology

Question 63

Which wholesaler's channel function is demonstrated when a wholesaler reduces inventory holding costs and risks to suppliers and customers?

A)financing
B)warehousing
C)transporting
D)buying and assortment building
E)bulk breaking

Question 64

In- store demonstrations,displays,contests,and visiting celebrities are examples of .

A)sales promotions
B)agent promotions
C)franchises
D)broker promotions
E)product life- cycling

Question 65

The rise of huge mass merchandisers and specialty superstores,along with retail mergers and acquisitions,has created a core group of very large and very powerful .

A)megaretailers
B)power centers
C)lifestyle centers
D)category killers
E)franchises

Question 66

,or manufacturers' representatives,represent a buyer or seller on a more permanent basis.

A)Intermediaries
B)Retailers
C)Agents
D)Franchises
E)Brokers

Question 67

GameStop sells video games and systems,offering a narrow product line with a deep assortment within that line.GameStop is a(n).

A)convenience store
B)specialty store
C)category killer
D)off- price retailer
E)department store

Question 68

Refer to the scenario below to answer the following questions.
In the 1970s,Shipshewana was only a small town with a hardware store,a grain mill,a shoe store,a small restaurant,and a grocery store.Over the next two decades,the small town transformed into an international tourist attraction,attracting thousands of tourists who are intrigued with the lifestyle of Shipshewana's largest population-the Amish.
Ben and Mary Miller,having grown up within the Amish faith,decided to capitalize on their town's popularity and their woodworking skills.Their shop,Indiana Wood,began with a small display of handmade hickory rocking chairs,Ben Miller's specialty.But within a few months,the display at Indiana Wood included picnic tables,flower boxes,and small handmade novelty items.No other shop offers the same.
Mary Miller decorated the shop's display room with authentic Amish décor and eventually hired three Amish friends to sew and embroider napkins and other textiles per customer request.In addition,two women from the Amish community sought permission from the Millers to display home- baked pastries and jellies on Tuesdays and Wednesdays,when Shipshewana attracts swarms of visitors to its flea market on the south edge of town.
"Shipshewana is full of specialty shops," Mary Miller stated."People don't come here to buy things made in China or Taiwan.They want real,Amish- made goods."
Which of the following would be the most logical way for Indiana Wood to expand?

A)establishing a community- gathering environment in the store
B)joining a producers' cooperative
C)establishing an online presence
D)implementing RFID inventory tracking
E)pursuing retail convergence

Question 69

have filled the ultralow- priced,high- volume gap by buying at less- than- regular wholesale prices and charging consumers less than retail.

A)Discount stores
B)Convenience stores
C)Limited- service retailers
D)Off- price retailers
E)Chain stores

Question 70

includes all activities involved in selling goods and services to those buying for resale or business use.

A)Retailing
B)Discounting
C)Disintermediation
D)Wholesaling
E)Franchising

Question 71

buy mostly from producers and sell to retailers and industrial consumers.

A)Independents
B)Megaretailers
C)Factory outlets
D)Discount stores
E)Wholesalers

Question 72

Most shopping centers are containing between 5 and 15 stores;they are close and convenient for consumers.

A)community shopping centers
B)strip malls
C)power centers
D)factory outlets
E)lifestyle centers

Question 73

Today's large,progressive wholesalers have successfully reacted to rising costs by .

A)relocating in low- rent,low- tax areas
B)increasing their markup
C)investing in information technology systems
D)reducing promotional activities
E)investing less money in expensive machinery

Question 74

are two or more outlets that are commonly owned and controlled.

A)Power centers
B)Convenience stores
C)Off- price retailers
D)Chain stores
E)Independent off- price retailers

Question 75

A is a smaller mall with upscale stores,convenient locations,and an expensive atmosphere.It is typically located near affluent residential neighborhoods.

A)lifestyle center
B)regional shopping center
C)power center
D)franchise
E)community shopping center

Question 76

Which of the following has NOT contributed to the growth of online business?

A)concerns about online privacy and security
B)easier- to- use Web sites
C)increasingly sophisticated search engines
D)more interesting and attractive Web sites
E)improved online service

Question 77

According to the _ _ concept,new retailing forms often begin as low- margin,low- price,low- status operations to challenge established retailers,then become successful,and eventually take the place of the established retailers they had challenged.

A)product life cycle
B)wheel- of- retailing
C)agent
D)warehousing
E)broker

Question 78

Service retailers include all of the following EXCEPT .

A)airlines
B)bowling alleys
C)hotels and motels
D)convenience stores
E)movie theaters

Question 79

Refer to the scenario below to answer the following questions.
In the 1970s,Shipshewana was only a small town with a hardware store,a grain mill,a shoe store,a small restaurant,and a grocery store.Over the next two decades,the small town transformed into an international tourist attraction,attracting thousands of tourists who are intrigued with the lifestyle of Shipshewana's largest population-the Amish.
Ben and Mary Miller,having grown up within the Amish faith,decided to capitalize on their town's popularity and their woodworking skills.Their shop,Indiana Wood,began with a small display of handmade hickory rocking chairs,Ben Miller's specialty.But within a few months,the display at Indiana Wood included picnic tables,flower boxes,and small handmade novelty items.No other shop offers the same.
Mary Miller decorated the shop's display room with authentic Amish décor and eventually hired three Amish friends to sew and embroider napkins and other textiles per customer request.In addition,two women from the Amish community sought permission from the Millers to display home- baked pastries and jellies on Tuesdays and Wednesdays,when Shipshewana attracts swarms of visitors to its flea market on the south edge of town.
"Shipshewana is full of specialty shops," Mary Miller stated."People don't come here to buy things made in China or Taiwan.They want real,Amish- made goods."
Which wholesaler's channel function is demonstrated when a wholesaler's sales force helps a manufacturer to reach many small customers at a low cost?

A)bulk- breaking
B)warehousing
C)buying and assortment building
D)selling and promoting
E)rackjobbing

Question 80

Carey David's wholesale company helps retailers train salesclerks,improve store layouts and displays,and set up inventory control systems.The channel function Cary David provides is .

A)risk bearing services
B)selling and promotion services
C)marketing information
D)management services and advice
E)buying and assortment building