Deck 11: Retailing and Wholesaling

Question 1

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

A)Sole sourcing
B)Retailing
C)Manufacturing
D)Supplying
E)Segmentation

Answer 1

B

Question 2

Stores that provide moderate sales assistance because they carry shopping goods about which customers need a moderate level of information are called ________.

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

Answer 2

D

Question 3

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

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

Answer 3

C

Question 4

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

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

Question 5

Customers at Carat,a premium jewelry store,are encouraged to call and take an appointment before a visit so that a customer service representative is assigned to them.These representatives help every customer make a purchase that meets his or her needs and budget after considering numerous options.The different styles,carat values,and special features of the jewelry are explained to each customer to aid the purchase decision.Carat is a ________.

A)self-service retailer
B)limited-service retailer
C)full-service retailer
D)basic-service retailer
E)value-retail store

Question 6

"All Needs" is a convenience store that has recently begun to redesign and restock its stores to offer a more upscale environment and products,such as house wines,special types of cheese and fresh foods."All Needs" has changed product mix and positioning to become a ________.

A)wholesaler club
B)designer shop
C)factory outlet
D)retailer cooperative
E)supercenter

Question 7

Which of the following statements is true with regard to retailing?

A)All retail stores are full-service retail stores.
B)A department store has a narrow product line with a deep assortment.
C)The largest type of retail outlets is the supermarkets.
D)Services like hotels, banks, airlines, restaurants, colleges, and hospitals can be retailed.
E)A feature common to all types of retail stores is the use of the everyday low pricing strategy.

Question 8

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

A)Convenience stores
B)Discount stores
C)Full-service retailers
D)Designer shops
E)Specialty stores

Question 9

Which of the following conditions would increase the chances of a retailer opting to be categorized as a self-service retailer?

A)when the product assortment comprises shopping goods about which consumers need information
B)when the customers are willing to conduct the locate-compare-select autonomously to save money
C)when the store is a first-class store in its category selling the finest goods
D)when the customers are looking for a narrow product line with a deep assortment
E)when the store has been converted into a designer shop from a departmental store

Question 10

A convenience store is most likely to be ________.

A)operating in commercial centers away from residential hubs
B)stocking a narrow product line with deep assortment
C)carrying a limited line of high-turnover daily needs products
D)charging consumers significantly lower prices than retail stores
E)providing consumers full service in making purchase decisions

Question 11

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

A)Convenience stores
B)Specialty stores
C)Department stores
D)Discount stores
E)Off-price stores

Question 12

Flax is a chain of stores that carries several product lines including clothing,home furnishing,and household goods,with each line operated as a separate department dedicated to the motto of customer satisfaction.Flax is most likely a(n)________.

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

Question 13

A department store is characterized by a ________.

A)narrow product line
B)product line that primarily stocks specialty goods
C)predatory pricing strategy
D)deep assortment in every single product category
E)product line-up of clothing, home furnishings, and household goods

Question 14

Which of the following types of stores carries a deep assortment of goods in each category,has knowledgeable staff,and is often viewed as a very large specialty store?

A)category killers
B)convenience stores
C)factory outlets
D)department stores
E)independent stores

Question 15

Which of the following types of stores is much larger than regular supermarkets and offers a large assortment of routinely purchased food products,nonfood items,and services?

A)discount stores
B)specialty stores
C)factory outlets
D)superstores
E)off-price outlets

Question 16

________ refers to using point-of-purchase promotions and advertising to extend brand equity to "the last mile" and encourage favorable point-of-purchase decisions.

A)Internal marketing
B)Sole sourcing
C)Warehousing
D)Test marketing
E)Shopper marketing

Question 17

Independent retailers are most likely to be ________.

A)running specialty stores and designer shops
B)divided into supercenters and category killers
C)charging prices that are higher than retail prices to maintain their profit margins
D)categorized as one of the three variants of off-price retailers
E)providing full-service to all consumers

Question 18

Jack and Judith recently moved into a new city and discovered that some of their home appliances and electronic gadgets had been damaged in transit.Their new neighbor,Will,suggested that they go to All Needs Depot to pick up replacements for their damaged goods.Will informed them that this store stocked several hundred product categories with a very deep assortment in every single product line.From the information provided in the scenario,All Needs Depot is most likely a ________.

A)designer shop
B)pop-up store
C)category killer
D)lifestyle center
E)factory outlet

Question 19

Specialty stores are characterized by the ________.

A)sale of convenience and staple items
B)narrow product lines with deep assortments
C)wide range of products and categories
D)lowest prices for a wide range of goods
E)practice of everyday low pricing

Question 20

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

A)Off-price retailers
B)Specialty stores
C)Convenience stores
D)Designer shops
E)Full-service retailers

Question 21

McPherson's,an ice cream joint,recently entered into an agreement by which it allowed independent businesspeople at select stores and locations across the country to sell its famous ice creams and milk shakes for a monetary consideration.The argument that the agreement was a franchise agreement is strengthened by the fact that ________.

A)McPherson's is a part of a corporate chain that prevents it from forming business alliances autonomously
B)McPherson's is a department store that is trying to avoid the wheel-of-retailing
C)McPherson's products are in the introductory stage of the product life cycle
D)McPherson's is a company that enjoys substantial goodwill and security in the market
E)McPherson's competitors have entirely different product lines and mixes

Question 22

As a result of the great success of corporate chains,many independent stores chose to band together in one of two forms of contractual associations: a voluntary chain or a(n)________.

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

Question 23

For a retailer to be able to differentiate himself from competitors and match target shoppers' expectations,the product assortment retailed should be ________.

A)identical to the product assortment retailed by its competitors
B)devoid of any blockbuster goods as they divert the attention of consumers
C)highly targeted or focused on a niche market of potential consumers
D)constituted by private-label brands, rather than national or exclusive brands
E)devoid of any seconds, overstocks, and closeouts as this damages the perception of the retailer

Question 24

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

A)Corporate chains
B)Factory outlets
C)Specialty stores
D)Designer shops
E)Power centers

Question 25

Campbell is one of the oldest retailers in the country.While the service offered at the stores is fairly mediocre,Campbell is famous for surprise offerings of seconds,overstocks,and closeouts-occasionally including expensive gadgets and jewelry.On the other hand,Posco Retail is a new chain of retail stores that is known for encouraging customers to ask questions or consult service representatives in the process of making purchase decisions.From the scenario,it is evident that ________.

A)Posco Retail fails to differentiate itself from its competitors on the basis of the variable of services mix
B)Campbell Retail requires no efforts to differentiate itself from others as it is an established retail chain
C)the only attempt that Campbell Retail makes to differentiate themselves is through experiential retailing
D)Campbell Retail has not been able to differentiate itself on the basis of the variable of product assortment
E)the variable of services mix is better utilized by Posco Retail to differentiate itself when compared to Campbell Retail

Question 26

A ________ contains between 15 and 50 retail stores,including a department or variety store,a supermarket,specialty stores,professional offices,and sometimes a bank.

A)community shopping center
B)warehouse club
C)franchise organization
D)lifestyle center
E)power center

Question 27

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

A)voluntary
B)retailer cooperative
C)franchise
D)no-service
E)corporate chain

Question 28

Which of the following differentiates between an outlet mall and a value-retail center?

A)An outlet mall stocks convenience goods, while a value-retail center sells luxury goods.
B)An outlet mall sells its products on par with the retail prices, while a value-retail center charges rates that are slightly below the retail prices.
C)An outlet mall consists primarily of the manufacturers' outlets, while a value-retail center combines manufacturers' outlets with off-price retail stores and department store clearance outlets.
D)An outlet mall is managed by buying and selling agents, while a value-retail center has employees who belong to the manufacturer's organization as bonafide employees.
E)An outlet mall is a type of off-price retailing, while a value-retail center is an example of designer shops that have high markups and low volume.

Question 29

Why do stores cluster together?

A)to decrease competition
B)to increase their customer pulling power
C)to take advantage of tax breaks
D)to create franchise organizations
E)to standardize product assortment

Question 30

An off-price retailing operation that is owned and operated by a manufacturer and normally carries the manufacturer's surplus,discontinued,or irregular goods is called a ________.

A)category killer
B)factory outlet
C)specialty store
D)superstore
E)power center

Question 31

Which of the following contractual systems is distinguished by the fact that it is normally based on some unique product or service?

A)voluntary chain
B)retailer cooperative
C)franchise
D)independent
E)warehousing

Question 32

McPherson's,an ice cream joint,recently entered into an agreement by which it allowed independent businesspeople at select stores and locations across the country to sell its famous ice creams and milk shakes for a monetary consideration.This agreement created a(n)________ type of contractual retail association.

A)corporate chain
B)voluntary chain
C)franchise organization
D)independent intermediary
E)retailer cooperative

Question 33

Campbell Retail is one of the oldest retailers in the country with a characteristic no-frills look to all its stores.While the service offered at Campbell stores is fairly mediocre,Campbell Retail is famous for surprise offerings of seconds,overstocks,and closeouts-occasionally including expensive gadgets and jewelry.Which of the following statements,if true,would strengthen the argument that Campbell Retail should use product assortment,rather than the variables of services mix and store atmosphere to differentiate its services?

A)Campbell Retail is the only company that offers limited-service retailing among its competitors.
B)Campbell has stores in 132 locations across the country with many of these locations housing multiple stores.
C)Campbell Retail believes that modifying its stores to incorporate the notion of experiential retailing is imperative because all of its new competitors have better ratings on the variable for store atmosphere.
D)Campbell Retail has numerous private-label brands that enjoy substantial brand loyalty in the minds of its customers.
E)Campbell Retail possesses highly qualified manpower that helps its limited service approach to retailing.

Question 34

Which of the following statements is true with regard to shopping centers?

A)Shopping centers function at the neighborhood level, rather than at the regional or community level.
B)Shopping centers typically contain provisions for many nonretail activities, such as a playground, skating rink, hotel, dining establishments, and a movie theater.
C)Shopping centers are groups of retail businesses built on a site that is planned, developed, owned, and managed as a unit.
D)Shopping centers usually contain exclusive brands and specialty stores, rather than convenience stores or department stores.
E)Shopping centers are identical to lifestyle centers in terms of their size, services, and nature.

Question 35

Toby's chain of department stores carries a wide range of product lines,including clothing,jewelry,kitchenware,and home furnishings.The stores typically charge a relatively high markup,but also hold frequent sales and price promotions,in particular,offering discounts to customers who use Toby's frequent user card.Toby's uses ________ here.

A)self-service retailing
B)experiential retailing
C)high-low pricing
D)everyday low pricing
E)price fixing

Question 36

Dina loves branded apparel and accessories but cannot afford to buy them too often.Fortunately,Dina lives close to an off-price retailing outlet that is owned and operated by a famous brand.The company utilizes this store to sell all its surplus,discontinued,or irregular goods at significantly lower costs.This outlet is an example of a ________.

A)category killer
B)factory outlet
C)specialty store
D)superstore
E)power center

Question 37

Dina loves branded apparel and accessories but cannot afford to buy them too often.Fortunately,Dina lives close to an off-price retailing outlet that has dozens of stores that offer prices as much as 50 percent below retail on a wide range of mostly surplus,discounted,or irregular goods.This outlet is an example of a ________.

A)category killer
B)factory outlet
C)specialty store
D)designer shop
E)value-retail center

Question 38

Allstocks.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)specialty retailer
B)independent off-price retailer
C)departmental retailer
D)full-service retailer
E)category killer

Question 39

Barry's is a chain of retail stores that stocks a large variety of goods and practices high-low prices.This means that Barry's is most likely to ________.

A)have low volume and low markups
B)charge low prices constantly
C)offer numerous sales or discounts
D)compete on the basis of price, rather than product or service quality
E)use predatory pricing to eliminate competition

Question 40

In the case of ________ customers pay annual membership fees and are able to purchase goods at deep discounts.

A)warehouse clubs
B)independent off-price retailers
C)factory outlets
D)specialty stores
E)superstores

Question 41

When compared to merchant wholesalers,brokers or agents ________.

A)perform greater functions
B)do not take title to goods
C)deal only in services, and not products
D)do not engage in any negotiation regarding the wholesale deals
E)work on multiple product lines and rarely specialize in working in one product category

Question 42

Which of the following types of wholesalers would fall under the category of full-service wholesalers?

A)producers' cooperatives
B)industrial distributors
C)cash-and-carry wholesalers
D)rack jobbers
E)drop shippers

Question 43

Power centers are characterized by the ________.

A)lack of an anchor store
B)sale of exclusive brands only
C)provision of individual entrances to each store
D)provision of high-end stores and nonretail luxury activities
E)absence of any pricing strategies for differentiation

Question 44

Which of the following channel functions of wholesalers is demonstrated when a wholesaler reduces inventory holding costs and risks to suppliers and customers?

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

Question 45

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

A)maintain inventory costs
B)send information between stores
C)interact with suppliers
D)decrease the need for promotions
E)meet consumers' technological expectations

Question 46

Which of the following types of limited-service wholesalers is owned by farmers who assemble farm produce to sell in local markets?

A)cash-and-carry wholesalers
B)drop shippers
C)rack jobbers
D)producers' cooperatives
E)truck jobbers

Question 47

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

A)Wholesaling
B)Sole sourcing
C)Franchising
D)Crowdsourcing
E)Differentiating

Question 48

Bruce Wayne's wholesale company fulfills many channel functions for its customers.In particular,the company differentiates itself by offering ________,such as helping retailers train salesclerks,improve store layouts and displays,and set up inventory control systems.

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

Question 49

Which of the following examples reflects the wheel-of-retailing concept?

A)Akido, started as a retail store for luxury clothing and accessories in Japan, was recently in the news for being acquired by an Italian designer label.
B)Marty's, one of the country's largest retailers, has scaled its operations down and is running as a chain of department stores owing to scarcity of funds.
C)Wills and McCoons, started as a large-scale store retailing upmarket brands, has included local brands and unbranded goods following the recession.
D)Val-You, a chain of retail stores that started with small stores charging modest prices for its products, has become a full-service retail chain with high operating costs and prices.
E)Lee Retailers, a super specialty retail chain stocking fine wines, cheese, and other goods has included a large number of quick-selling processed foods to retain its fast-depleting market share.

Question 50

Which of the following channel functions of wholesalers is demonstrated when a wholesaler's sales force helps a manufacturer reach many small customers at a low cost?

A)bulk breaking
B)selling and promoting
C)buying and assortment building
D)warehousing
E)risk bearing

Question 51

A ________ is a smaller mall with upscale stores,convenient locations,and nonretail activities such as a playground,dining,and a movie theater.It is typically located near affluent residential neighborhoods.

A)regional shopping center
B)lifestyle center
C)community shopping center
D)wholesaling center
E)warehouse club

Question 52

Which of the following statements reflects the wheel-of-retailing concept?

A)All new types of retailing forms begin as low-margin and high-price ventures.
B)Initially, all retail stores have high-status operations characterized by features of experiential retailing.
C)Eventually, all new retailers evolve into higher-priced and higher-service operations, much like the retailers they replaced.
D)Retailers that begin as low-cost, low margin, and low-status operations continue to remain so throughout their years of operation.
E)New forms of retail typically avoid providing any nonretail services and this differentiates them from conventional retailers.

Question 53

Retail convergence directly leads to ________.

A)reduced differentiation
B)reduced competition
C)increased sales
D)increased profit margins
E)reduced need for product assortment

Question 54

A ________ brings buyers and sellers together and assists in negotiations.

A)distributor
B)broker
C)retailer
D)wholesaler
E)supplier

Question 55

Purchasing officers differ from purchasing agents in that ________.

A)purchasing officers handle nonperishable items only
B)purchasing agents take title to the goods
C)purchasing officers are a part of the buyer's organization
D)purchasing agents are not obliged to negotiate for best prices of goods
E)purchasing agents have the contractual authority to sell a manufacturer's entire output

Question 56

Which of the following channel functions of wholesalers is demonstrated when a buyer receives quicker delivery because wholesalers are located closer than are producers?

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

Question 57

Jacob Kendler works in the wholesale business for specific types of industrial goods needed in the automobile industry.Jacob's job involves locating and contacting potential buyers and sellers and facilitating the negotiation process.Which of the following,if true,would strengthen the argument that Jacob works as a merchant wholesaler,and not an agent?

A)Jacob has no defined role in the distribution mechanism of the goods he purchases for the company.
B)Jacob runs an independently owned business that requires him to take title to all merchandise handled.
C)Jacob receives commission for bringing together buyers and sellers for negotiations as and when required.
D)Jacob is a part of the buyer's organization but lacks the contractual authority to sell the entire output at his disposal.
E)Jacob is allowed to take physical, but not legal possession of the merchandise he handles.

Question 58

________ represent buyers or sellers on a more permanent basis than brokers.

A)Distributors
B)Franchisees
C)Agents
D)Retailers
E)Intermediaries

Question 59

Jacob Kendler works in the wholesale business for specific types of industrial goods needed in the automobile industry.Jacob's job involves locating and contacting potential buyers and sellers and facilitating the negotiation process.Which of the following,if true,would strengthen the argument that Jacob works as an agent,and not a merchant wholesaler?

A)Jacob runs an independently owned business.
B)Jacob is an employee of an organization producing automobiles.
C)Jacob represents his company but is not liable for any damage or low-quality goods.
D)Jacob works in a highly specialized market and does not venture into other product categories.
E)Jacob provides a full set of services ranging from locating sellers to delivering goods.

Question 60

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

A)Brokers
B)Retailers
C)Agents
D)Merchant wholesalers
E)Specialty wholesalers

Question 61

Off-price retailers buy at less-than-regular wholesale prices and charge consumers less than retail.

Question 62

Venns is a chain of department stores that has become more focused and stocks only exclusive labels of designer home accessories now.Venns has transformed itself into a chain of pop-up stores.

Question 63

In a retailer cooperative,independent retailers contract with each other to set up a central buying operation and conduct joint promotional efforts.

Question 64

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

A)relocating in low-rent, low-tax areas
B)investing in information technology systems
C)eliminating the need for brokers and agents
D)increasing their markup and lowering their status of operations
E)reducing promotional activities

Question 65

In recent years,convenience stores have redesigned their stores to closely focus on serving their primary target market which includes young,blue-collar men.

Question 66

Shopper marketing involves focusing the entire marketing process-from product and brand development to logistics,promotion,and merchandising-toward turning shoppers into buyers at the point of sale.

Question 67

Bensons is a specialty store selling the finest home linen made from raw materials imported from Asian countries.Bensons pricing decision would be aimed at low markups on a high volume of products they retail.

Question 68

PennyLane Retailers believe in a do-it-yourself approach and their stores are designed for consumers who are willing to perform their own locate-compare-select process.PennyLane Retailers provide an example of full-service retailers.

Question 69

Casey's is a large supermarket that practices everyday low pricing and thus,consumers should expect few discounts or sales if shopping at Casey's regularly.

Question 70

Category killers carry a deep assortment of a particular product line and have a knowledgeable staff.

Question 71

Manufacturers' agents are ________.

A)exclusively hired in agricultural marketing by farmers who do not want to sell their own output
B)employed by the buyer's organization and authorized to take title to goods
C)wholesalers who carry a limited line of fast-moving goods and sell to small retailers for cash without providing delivery
D)hired by two or more manufacturers of complementary lines who cannot afford their own field sales forces
E)a type of limited-service wholesalers for goods requiring minimal consumer information

Question 72

Whereas value-retail centers consist primarily of manufacturers' outlets,outlet malls combine manufacturers' outlets with off-price retail stores and department store clearance outlets.

Question 73

Corporate chains are located near a residential area and are open long hours,seven days a week; they carry a limited line of high-turnover goods.

Question 74

Will Jenks is a wholesaler who sells the produce of farmers who do not want to sell their own output.He transports large amounts of agricultural commodities to a central market,sells it for the best price,deducts an amount for his effort and expenses,and remits the balance to the producers.Will Jenks is a(n)________.

A)cash-and-carry wholesaler
B)full-service wholesaler
C)commission merchant
D)no-service retailer
E)industrial distributor

Question 75

Specialty stores carry several product lines,while a narrow product line with a deep assortment is a feature of discount stores.

Question 76

The retailer's product assortment should differentiate the retailer while matching target shoppers' expectations.

Question 77

Retailing includes all the activities involved in selling products or services for industrial and business use.

Question 78

Retailers must first segment and define their target markets and then decide how they will position themselves in these markets.

Question 79

Independent off-price retailers purchase merchandise at rates that are susbtantially higher than the regular wholesale rates.

Question 80

JP Wholesalers is one of the largest wholesalers of wooden furnishings in the country.Recently,the company opened a chain of stores called JP Designer Homes that became popular owing to the good reputation the company had as a wholesaler.The company then began acquiring smaller retail chains and consolidated its position in the market.Which of the following trends is reflected in this scenario?

A)the movement toward self-service retailing
B)the decline of superstores
C)the decline of the voluntary chain
D)the rise of franchise organizations
E)the blurring of distinctions between retailers and wholesalers