Deck 13: Retailing and Wholesaling

Question 1

All activities involved in selling, renting, and providing products and services to ultimate consumers for personal, family, or household use are referred to as

A) manufacturing.
B) retailing.
C) wholesaling.
D) facilitating.
E) logistics.

Answer 1

B

Question 2

Walmart's $485 billion in sales in 2016 surpassed the gross domestic product of all but ________ countries for that same year.

A) 5
B) 12
C) 17
D) 22
E) 55

Answer 2

D

Question 3

The ability to shop over the Internet 24 hours a day, seven days a week, provides consumers with ________ utility.

A) form
B) time
C) convenience
D) possession
E) performance

Answer 3

B

Question 4

Subway restaurants that offer sandwiches made exactly to each customer's preference are providing ________ utility.

A) time
B) place
C) possession
D) form
E) process

Question 5

Wells Fargo is one largest consumer banks in the United States. It reaches retail customers through 8,600 stores, a worldwide network of 13,000 ATMs, and its online banking service. Which utility does Wells Fargo best provide?

A) time
B) possession
C) place
D) form
E) performance

Question 6

The four utilities offered to consumers through retailing are

A) convenience, performance, possession, and form.
B) time, place, possession, and form.
C) product, price, place, and promotion.
D) people, productivity, process, and physical environment.
E) convenience, consistency, competition, and choice.

Question 7

Retailing includes all activities involved in the

A) selling, renting, and providing of products and services to ultimate consumers for personal, family, or household use.
B) selling of tangible products to ultimate consumers for personal, family, or household use.
C) selling of tangible products to ultimate consumers for personal, household, or industrial use.
D) selling, renting, leasing, or reselling of products and services to ultimate consumers or small industrial users.
E) selling, renting, and providing of products and services without retaining the title to these offerings.

Question 8

Dick's Sporting Goods is a leading sports retailer that provides year-round inventory of equipment for just about any sport. Even during the off-season, equipment for seasonal sports is available at Dick's. Which utility does the it best provide?

A) time
B) convenience
C) possession
D) form
E) performance

Question 9

Outside the United States, large retailers include ________ in Japan, Carrefour in France, Metro Group in Germany, and Tesco in Britain.

A) Aeon
B) Toshei
C) Seebi
D) Goshen
E) Toshi

Question 10

Which of the following is one of the largest retailers in the United States?

A) Hallmark
B) Procter & Gamble
C) Merck
D) Target
E) Johnson and Johnson

Question 11

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

A) place and conformance
B) possession and form
C) form
D) performance
E) time

Question 12

Target and Kohl's send messages about special offers to people who are using ________ near their stores, direct them toward sales items once inside, and alert them when they are near a selected product.

A) smartwatches
B) voice-controlled speakers
C) fitness trackers
D) wireless headphones
E) email

Question 13

Retailing is an important marketing activity. Not only do producers and consumers meet through retailing actions, but retailing also creates

A) the nation's largest source of tax revenues.
B) the largest source of charitable contributions.
C) limited utilities for consumers.
D) customer value.
E) a sense of community.

Question 14

Five of the 40 largest businesses in the United States are retailers-Walmart, Costco, Home Depot, Target, and

A) Sears.
B) Lowe's.
C) Best Buy.
D) JC Penney.
E) Bloomingdale's.

Question 15

The development of today's "smart store" includes each of the following except which?

A) biometric scanning
B) Internet-of-Things
C) artificial intelligence selling
D) wearable technology
E) virtual reality

Question 16

CarMax dealers have adopted a "no-haggle" sales policy that eliminates the need for negotiating. Instead, all customers are offered the same price. Test drives, financing, trade-ins, and leasing are all offered to encourage customers to purchase a car. Which utility does CarMax best provide?

A) product
B) form
C) convenience
D) service
E) possession

Question 17

While consumers can use ________ to assist them with shopping, retail clerks, salespeople, and technicians can also use them to check manuals for technical information, verify stock inventories, place orders, or even check out customers from anywhere in the store.

A) fitness trackers
B) drones
C) hoverboards
D) smart glasses
E) biometric scanners

Question 18

Enterprise car rental agency differentiates itself from other similar agencies by providing a delivery service. This delivery service is particularly valuable to someone who has been left stranded without transportation. By making it easy to rent temporary transportation, Enterprise is emphasizing which utility?

A) form
B) product
C) service
D) possession
E) convenience

Question 19

The ________ provided by retailers create value for consumers.

A) utilities
B) wholesaling functions
C) outsourcing functions
D) profits
E) synergies

Question 20

Albertsons Grocery Store accepts debit and credit cards as well as cash and checks for purchases. Its acceptance of various forms of payment provides its customers with ________ utility.

A) time
B) place
C) possession
D) form
E) public

Question 21

The acronym RFID stands for

A) retail franchise identification designation.
B) required financial identification.
C) radar frequency identification.
D) radio frequency identification.
E) retail federation of independent department stores.

Question 22

Which of the following statements regarding corporate chains is most accurate?

A) Corporate chains cannot bargain with a manufacturer to obtain product volume discounts due to federal anticompetitive legislation-the Clayton Act as amended by the Sherman Act.
B) Corporate chains generally own most if not all of their suppliers-a practice known as forward integration-so they can save distribution costs.
C) Consumers have fewer choices in merchandise since all buying decisions are made by a decentralized buying committee.
D) Corporate chains offer the least benefit to consumers since they are the farthest removed from the ultimate consumer.
E) Corporate chains are multiple outlets under common ownership.

Question 23

According to the textbook, ________ provides third-party certification and offers guidance for retailers implementing new environmentally sound practices.

A) the Environmental Protection Agency
B) the U.S. Chamber of Commerce-Environmental Division
C) Green Cross International
D) the U.S. Green Retail Association
E) Leadership in Energy and Environmental Design (LEED)

Question 24

The three key methods of classifying retail operations are

A) method of operation, revenues generated, and merchandise line.
B) form of ownership, method of operation, and merchandise line.
C) form of ownership, level of service, and merchandise line.
D) level of service, merchandise line, and revenues generated.
E) merchandise line, form of ownership, and revenues generated.

Question 25

There are three general forms of retail ownership: contractual system, independent retailer, and

A) dual ownership.
B) industry consortium.
C) retailing cooperative.
D) multinational cartel.
E) corporate chain.

Question 26

Which form of retail outlet would most likely offer customers convenience, quality personal service, and lifestyle compatibility?

A) corporate chain
B) independent retailer
C) administered system
D) contractual system
E) sole incorporation

Question 27

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

A) an individual.
B) a conglomerate.
C) a consortium.
D) a corporate chain.
E) a cooperative.

Question 28

Which of the following is a commonly used method of retail outlet classification?

A) service versus good
B) type of merchandise line
C) proportion of national versus private label brands carried
D) revenues generated
E) profitability

Question 29

Consumers benefit in dealing with retail corporate chains because

A) corporate chains have more experience than other forms of retailers.
B) consumers can own stock in the same company where they shop since corporate chain stock must be publicly traded.
C) chains can bargain with a manufacturer to obtain product volume discounts on orders, which can be passed on to consumers in terms of lower prices.
D) there are multiple outlets, each with its own varied merchandise and different management policies.
E) merchandise is arranged and displayed by professional designers making their shopping experience less stressful.

Question 30

The ________ distinguishes types of retail outlets, with independent retailers, corporate chains, or contractual systems being the three general forms.

A) wheel of retailing
B) service level
C) merchandise line
D) product assortment
E) form of ownership

Question 31

A form of ownership that involves multiple outlets under common ownership is referred to as

A) a corporate chain.
B) a consumer cooperative.
C) a contractual system.
D) an independent retailer.
E) an administered system.

Question 32

Aeon, Carrefour, Tesco, and Metro Group are

A) sizable wholesalers that handle products for the world's largest retailers.
B) new Internet start-ups that have the potential to impact the U.S. economy.
C) large retailers outside of the United States.
D) large distributors of business products.
E) historic companies that developed consumer selling systems, though none of them exist today.

Question 33

Level of service is used to describe the degree of service provided to the customer. Three levels of service are provided by self-, ________, and full-service retailers.

A) limited-
B) total-
C) involvement-
D) obligation-
E) fixed-

Question 34

Consumers benefit in dealing with retail corporate chains because

A) corporate chains have more experience than other forms of retailers.
B) they can own stock in the same company where they shop since corporate chain stock must be publicly traded.
C) they can establish a credit history more easily than with other forms of retailers.
D) there are multiple outlets with similar merchandise and consistent management policies.
E) they have less stress in making decisions since merchandise is arranged and displayed by professional designers.

Question 35

One of the most common forms of retail ownership is the ________ owned by an individual.

A) corporate chain
B) consumer cooperative
C) contractual system
D) independent retailer
E) administered system

Question 36

Bloomingdale's stores are part of the Macy's

A) corporate chain.
B) consumer cooperative.
C) contractual system.
D) retail conglomerate.
E) administered system.

Question 37

A method of classification that describes how many different types of products a store carries and in what assortment is referred to as a

A) product mix.
B) service level.
C) product variety.
D) store composition.
E) merchandise line.

Question 38

When Home Depot switched its in-store light fixture displays to compact fluorescent light and LED bulbs, painted the roofs of its stores white, and installed solar panels, it reduced its energy use by ________ percent.

A) 5
B) 10
C) 15
D) 20
E) 25

Question 39

Most of the 3.7 million retail establishments in the United States, including hardware stores, convenience stores, clothing stores, and electronics stores, are considered

A) corporate chains.
B) contractual systems.
C) independent retailers.
D) conglomerates.
E) multinationals.

Question 40

One method of classification categorizes a retailer as self-, limited-, or full-

A) involvement.
B) assortment.
C) management.
D) service.
E) ownership.

Question 41

A franchise where the franchisor provides step-by-step procedures for most aspects of the business is known as a

A) business-format franchise.
B) product-distribution franchise.
C) business franchise venture.
D) manufacturing franchise.
E) general service franchise.

Question 42

As a business format franchisor, Subway provides to its franchisee step-by-step procedures for most aspects of the business and

A) an easy resale mechanism back to the franchisor.
B) guaranteed access to competent suppliers and interested customers.
C) complete maintenance the property.
D) guidelines for the most likely decisions a franchisee will face.
E) discipline for dishonest employees.

Question 43

What type of contractual system describes a situation in which assistance in selecting the location, setting up the store or facility, advertising, and training personnel is provided by the parent company?

A) administered system
B) conglomerate system
C) franchise system
D) vertical integrated system
E) retail-sponsored cooperative

Question 44

By selling franchises, an organization ________ the cost of expansion and ________ its control compared to owning its own retail outlets.

A) increases; increases
B) increases; reduces
C) reduces; increases
D) increases; retains almost all
E) reduces; reduces

Question 45

The three commonly used terms to describe levels of service in retailing are

A) self-service, limited-service, and full-service.
B) retailer-service, sales-service, and customer-service.
C) self-service, automated-service, and online-service.
D) limited-service, full-service, and automated-service.
E) wholesaler-service, retailer-service, and customer-service.

Question 46

Which method of retail outlet classification is most appropriate for describing franchise operations?

A) form of ownership
B) level of service
C) merchandise line
D) method of operation
E) revenues generated

Question 47

A franchise where the franchiser provides a few general guidelines and more independence to the franchisee is known as a

A) business-format franchise.
B) manufacturing franchise.
C) product-distribution franchise.
D) general service franchise.
E) business franchise venture.

Question 48

Franchising is a type of

A) administered system.
B) contractual system.
C) vertically integrated chain.
D) retail-sponsored cooperative.
E) corporate system.

Question 49

7-11 is a popular

A) business-format franchise.
B) product-distribution franchise.
C) operations franchise venture.
D) manufacturing franchise.
E) general service franchise.

Question 50

The two general types of franchises are

A) product-format franchises and distribution franchises.
B) business-format franchises and manufacturing franchises.
C) venture franchises and general service franchises.
D) manufacturing franchises and venture franchises.
E) business-format franchises and product-distribution franchises.

Question 51

Coca-Cola distributors represent which type of franchise?

A) business-format franchise
B) manufacturing franchise
C) general service franchise
D) product-distribution franchise
E) business franchise venture

Question 52

Independently owned stores that band together to act like a chain are referred to as

A) corporate chains.
B) cooperative marketing systems.
C) contractual systems.
D) regional shopping centers.
E) self-service systems.

Question 53

McDonald's, 7-Eleven, and Anytime Fitness are examples of

A) product-distribution franchises.
B) non-profit franchises.
C) business-format franchises.
D) manufacturing franchises.
E) general service franchise.

Question 54

One way neighborhood grocers can take advantage of volume discounts commonly available to corporate chains is to

A) purchase a franchise membership.
B) become a subsidiary of a larger supermarket chain such as Kroger.
C) join a professional merchant association and hire food brokers to negotiate lower prices for produce and dry goods.
D) create a grocery networking system to exchange coupon vouchers.
E) participate in a retailer-sponsored cooperative with other independent grocers.

Question 55

As a franchisor, 7-Eleven would assist a franchisee in selecting the store location, setting up the store, advertising, and

A) developing the marketing program.
B) training personnel.
C) offering performance bonuses.
D) ordering and restocking inventory.
E) paying insurance and legal fees.

Question 56

There are two general types of franchises: business-format franchises and ________ franchises.

A) product-distribution
B) general service
C) manufacturing
D) distribution
E) venture

Question 57

The three basic types of contractual systems are

A) retailer-sponsored cooperatives, wholesaler-sponsored voluntary chains, and franchises.
B) dual ownership agreements, industry consortiums, and nonbinding cooperatives.
C) wholesaler-sponsored voluntary chains, nonbinding cooperatives, and franchises.
D) dual ownership agreements, industry consortiums, and multinational cartels.
E) nonbinding, binding, and in perpetuity.

Question 58

Neighborhood grocers that work together with several other independent grocers that all agree to buy their goods directly from food manufacturers is

A) a retailer-sponsored cooperative.
B) a consortium system.
C) an administrative system.
D) a conglomerate system.
E) a contractual horizontal marketing system.

Question 59

In ________, an individual or firm contracts with a parent company to set up a business or retail outlet.

A) an administered system
B) a vertically integrated chain
C) a retail-sponsored cooperative
D) a franchise system
E) a corporate system

Question 60

Retailers are implementing pioneering new technologies such as cloud-based Internet-of-Things (IoT) platforms combined with ________ to improve the quality of information available about the shopping experience in their stores.

A) radio frequency identification (RFID) tags
B) encapsulation techniques
C) barcode scanners
D) nanotechnology
E) cookies

Question 61

Retail outlets vary by their merchandise lines, the key distinction being the ________ of the items offered to customers.

A) scope and span
B) breadth and depth
C) breadth and inventory
D) scope and inventory
E) range and span

Question 62

Most specialty stores and department stores, which provide many services to their customers, are considered to be

A) exclusive-service retailers.
B) limited-service retailers.
C) full-service retailers.
D) unlimited-service retailers.
E) exhaustive-service retailers.

Question 63

A large assortment of each item within a product line in a store is referred to as

A) product span.
B) breadth of product line.
C) length of product line.
D) width of product line.
E) depth of product line.

Question 64

Kohl's is a moderately priced retailer that sells name-brand fashions and home goods. A few salespeople are available in the jewelry department, but customers are responsible for most of their shopping activities. Kohl's provides its consumers with

A) full service.
B) limited service.
C) self-service.
D) restricted service.
E) functional service.

Question 65

Nordstrom stores typically have 50 percent more salespeople on the floor than other retailers with stores of similar sizes. Its salespeople are renowned for their professional and personalized attention to customers. Nordstrom offers a wide variety of services, including on-site alterations and tailoring, a 7-days-a-week customer service line, live chat line with beauty, design, and wedding specialists and would be considered

A) an exclusive-service retailer.
B) a limited-service retailer.
C) a full-service retailer.
D) an upscale retailer.
E) a limited-domain retailer.

Question 66

A high-end department store that offers on-site alterations and tailoring, personalized offers for rewards members, and in-store and live chat with beauty, design, and wedding specialists would be considered

A) full service.
B) limited service.
C) self-service.
D) restricted service.
E) functional service.

Question 67

Outlets where customers are responsible for most shopping activities, although salespeople are available in some departments, would be classified as ________ retail outlets.

A) limited-service
B) exclusive-service
C) minimal-service
D) self-service
E) full-service

Question 68

The level of service that requires the customers themselves perform many functions during the purchase process is

A) full-service.
B) limited-service.
C) self-service.
D) customized-service.
E) automated-service.

Question 69

Depth of product line refers to

A) the percentage of goods stored as inventory.
B) the variety of different product items a store carries.
C) variations in price and color on specific items in a store.
D) the assortment of each item carried by a store.
E) the number of different product classes owned by a corporate chain.

Question 70

A Woman's Place is a retail store, created and staffed by women, that offers products and services relating to maternity needs. For expectant mothers, it offers advice and personal shopping services, help with hair or make-up problems, and free delivery. A Woman's Place is an example of ________ retailer.

A) a franchise
B) a self-service
C) a limited-service
D) a full-service
E) an upscale

Question 71

Gas stations, supermarkets, and airlines that have automated check-out or check-in terminals are providing what level of retail service?

A) full-service
B) limited-service
C) customized-service
D) self-service
E) automated-service

Question 72

Costco requires customers to perform many shopping functions during the purchasing process and all nonessential customer services have been eliminated. What level of service does Costco offer?

A) limited-service
B) full-service
C) customized-service
D) self-service
E) restricted-service

Question 73

Saks Fifth Avenue is an upscale retailer that offers designer brand women's apparel, fragrances, jewelry, and leather accessories. The retailer relies on superior service to sell its products and to retain its customers. Saks Fifth Avenue would be classified as

A) an exclusive-service retailer.
B) a limited-service retailer.
C) a full-service retailer.
D) a premium-service retailer.
E) a semi-service retailer.

Question 74

Williams-Sonoma is a specialty store that caters to customers who like to cook at home. It offers free cooking classes, has frequent demonstrations by cookbook authors, and has employees who are knowledgeable about food preparation. The sales staff helps customers make their selections. Williams-Sonoma is ________ retailer.

A) an exclusive-service
B) a full-service
C) an upscale-service
D) a self-service
E) a limited-service

Question 75

Godiva Chocolatier invites consumers to stop by one of its stores for an unforgettable experience, including delectable chocolates, decorative gift collections, and unrivaled customer care. What type of retail service is Godiva offering?

A) full-service
B) exclusive-service
C) limited-service
D) self-service
E) specialty-service

Question 76

Redbox has 41,000 kiosks throughout the United States for movie and video game rental and it operates without a single clerk. What level of service does this retailer offer?

A) limited-service
B) non-service
C) reduced-service
D) self-service
E) restricted-service

Question 77

General merchandise stores such as Walmart, Kmart, and Target are usually considered ________ retailers.

A) exclusive-service
B) minimal-service
C) self-service
D) full-service
E) limited-service

Question 78

Target recently introduced its Target REDcard, where cardholders receive 5 percent back for each purchase. Target also allows customers to return merchandise within 30 days but does not offer alteration or fitting services for its clothing. Target offers what level of service to its customers?

A) full service
B) self-service
C) automated service
D) limited service
E) customized service

Question 79

At which level of service would the customer be expected to perform the least number of functions?

A) automated service
B) minimal service
C) self-service
D) limited service
E) full service

Question 80

Which of the following retailers provide self-service to their customers?

A) Zipcar
B) Footlocker
C) Target
D) 7-11
E) Apple