Deck 14: Retailing, Direct Marketing, and Wholesaling

Question 1

The primary product offered by the department stores is convenience.

Answer 1

False

Question 2

Wholesaling is the final part of the marketing process in which exchanges are entered into for personal, family, or household purposes.

Answer 2

False

Question 3

Department stores are characterized by wide product mixes.

Answer 3

True

Question 4

Warehouse showrooms are able to sell products at low prices by passing some of their marketing functions on to consumers.

Question 5

Specialty retailing is a form of selling by description in that buyers usually do not see the actual product until it arrives.

Question 6

Some purchasing by consumers is an end in itself-for example, when it is done to escape boredom.

Question 7

Most department stores are shopping stores.

Question 8

New store formats and technological advances are making the retail environment highly dynamic and competitive.

Question 9

Extreme-value stores are a fraction of the size of conventional discount stores.

Question 10

Community shopping centers are also known as strip malls.

Question 11

Discount stores are distinctive in that they usually are very service oriented.

Question 12

Dollar General is an example of an extreme-value store.

Question 13

Retailing includes all transactions in which the buyer intends to consume the product through personal, family, or household use.

Question 14

Factory outlet stores exist to compete with traditional retailers.

Question 15

Retailers form an important link in the marketing channel because they are both marketers and customers.

Question 16

Warehouse clubs are able to offer a broad range of merchandise because their product lines are shallow and their sales volumes high.

Question 17

The coordination of selling efforts within a community shopping center is usually minimal.

Question 18

Supermarkets specialize in selling shopping products.

Question 19

Specialty retailers carry a broad product mix with deep product lines.

Question 20

Appliances are an example of a major product line commonly carried by discount stores.

Question 21

Within the same franchising organization, all franchisees pay the same amount for the same services.

Question 22

Most factory outlet shopping centers seek to locate in prime retail, metropolitan areas.

Question 23

Direct-response marketing is the performance of marketing-related activities by telephone.

Question 24

Less than half of all goods are exchanged through wholesaling institutions.

Question 25

Catalog marketing is one of the more flexible types of direct marketing.

Question 26

Wholesaling involves all transactions in which products are bought for resale, for use in making other products, or for general business operations.

Question 27

A retail store usually can position its image so that it is universally acceptable to all market segments.

Question 28

Direct selling is the most expensive form of retailing.

Question 29

Exterior atmospheric elements include the appearance of the storefront, display windows, store entrance, and amount of traffic congestion.

Question 30

Franchisees do not pay to use the franchiser's name.

Question 31

Virtual fit uses technology that lets shoppers see how a product might look on them.

Question 32

An example of a nonstore retailer is a vending machine.

Question 33

Wholesalers do not engage in selling to reseller, government, or institutional users.

Question 34

A franchise is an arrangement in which a supplier grants dealers the right to sell products in exchange for some type of consideration.

Question 35

Direct marketing is the selling of products outside the confines of a retail facility.

Question 36

The franchiser supplies the labor and capital in the franchise relationship.

Question 37

Telemarketing is often combined with other marketing efforts.

Question 38

Franchised outlets are generally less successful than independently-owned businesses.

Question 39

Webrooming occurs when customers look at products in stores and then purchase them online.

Question 40

Store atmospherics are used to create emotional effects that enhance the probability of purchasing.

Question 41

Agents and brokers perform more functions than limited-service wholesalers.

Question 42

Wholesalers rarely handle credit for retailers and producers.

Question 43

General-merchandise wholesalers are full-service merchant wholesalers who carry only a few product lines.

Question 44

Typical limited-service wholesalers are rack jobbers, truck wholesalers, specialty-line wholesalers, and cash-and-carry wholesalers.

Question 45

Truck wholesalers are usually classified as limited-service wholesalers because they offer a limited line of products.

Question 46

Most manufacturers' agents prefer to work for one manufacturer at a time to avoid conflicts of interest.

Question 47

A cash-and-carry wholesaler provides transportation, delivers products directly to customers, and places products on the retailer's shelves.

Question 48

Wholesalers perform marketing functions only for the retailers below them in the channel of distribution.

Question 49

Mail-order wholesalers are limited-function wholesalers who sell through catalogs to retailers and organizational customers.

Question 50

Limited-service wholesalers provide only some marketing services and specialize in a few functions.

Question 51

Full-service merchant wholesalers are either general merchandise wholesalers or specialty-line wholesalers.

Question 52

Selling agents have control over the marketing efforts of manufacturers and may be used in place of a marketing department.

Question 53

Commission merchants tend to have relatively broad powers concerning prices and terms of sales.

Question 54

Distribution of all goods requires wholesaling activities, whether or not a wholesaling institution is involved.

Question 55

The classification of wholesalers in the text is based solely on the performance of marketing activities.

Question 56

Cash-and-carry wholesalers draw most of their customers from large retailers and industrial firms.

Question 57

Merchant wholesalers assume risks of ownership.

Question 58

General-line wholesalers are a type of full-service merchant wholesaler.

Question 59

Agents represent either buyers or sellers on a temporary basis.

Question 60

By buying in large quantities and delivering to customers in smaller lots, a wholesaler may perform physical distribution activities more efficiently than a producer.

Question 61

A small self-service store that is open long hours and carries a narrow product assortment in convenient locations is best described as a

A)discount store.
B)department store.
C)convenience store.
D)supermarket.
E)category killer.

Question 62

If a store has areas for men's apparel, women's apparel, housewares, cosmetics, and jewelry and competes mostly on the basis of service, it is most likely a(n)

A)niche retailer.
B)department store.
C)specialty retailer.
D)superstore.
E)category killer.

Question 63

Walmart, Macy's, Nordstrom, and Toys "R" Us are examples of

A)manufacturers.
B)merchant wholesalers.
C)end-users.
D)agents.
E)retailers.

Question 64

Retailers play a major role in creating all of the following except

A)possession utility.
B)place utility.
C)form utility.
D)spatial utility.
E)time utility.

Question 65

Ollie's is a regional self-service retail store that sells name-brand electronics, tools, housewares, and sporting goods at low prices. Ollie's is an example of a

A)department store.
B)discount store.
C)warehouse showroom.
D)specialty store.
E)superstore.

Question 66

Which of the following was developed in 1927 to supply milk, eggs, and other products for customers replenishing their iceboxes?

A)Supermarkets
B)Convenience stores
C)Discount stores
D)Department stores
E)Specialty stores

Question 67

As discount stores improve their services and atmosphere as well as raise their prices, the distinction between discount stores and ____ is becoming blurred.

A)superstores
B)supermarkets
C)specialty stores
D)department stores
E)category killers

Question 68

Extreme-value stores tend to sell

A)commodities.
B)brand-name merchandise.
C)a manufacturer's runoffs.
D)name brand, nonperishable items.
E)grocery products.

Question 69

Retailing is best characterized as

A)large organizations that carry wide and deep product mixes.
B)transactions in which the buyer intends to consume the product through personal, family, or household use.
C)arrangements whereby a supplier grants a dealer the right to sell its products.
D)transactions in which the purchaser intends to use the product for resale or for business operations.
E)exchanges that take place only in a store or service establishment.

Question 70

Collin gets a shopping list from his wife. On the list are a potted plant, fresh salmon, vitamins, bread, milk, and a birthday cake. To make just one stop to save time, Collin should go to a(n)

A)convenience store.
B)category killer.
C)specialty store.
D)specialty retailer.
E)supermarket.

Question 71

A retail establishment that offers a variety of product lines that are stocked in considerable depth is best classified as a

A)warehouse club.
B)specialty retailer.
C)general-merchandise retailer.
D)limited-line retailer.
E)category killer.

Question 72

The use of multiple distribution channels that complement organizations' brick-and-mortar stores with websites, catalogs, and apps where consumers can research products, read other buyers' reviews, and make actual purchases is known as

A)multichannel retailing.
B)dual retailing.
C)multimedia retailing.
D)dual distribution.
E)multi-wholesaling.

Question 73

A retailer is an organization that purchases products for the purpose of reselling them to

A)other retail organizations.
B)the government.
C)ultimate consumers.
D)wholesalers.
E)nonprofit organizations.

Question 74

Compared with other types of retailers, department stores compete mainly on the basis of

A)customer services.
B)low prices.
C)a very deep assortment of a few specific products.
D)high sales volume.
E)catalog sales.

Question 75

Nordstrom, Macy's, and JCPenney are all considered

A)department stores.
B)discount stores.
C)off-price retailers.
D)specialty retailers.
E)category killers.

Question 76

Self-service, general merchandise stores such as Kmart are known as

A)discount stores.
B)warehouse showrooms.
C)catalog showrooms.
D)superstores.
E)specialty retailers.

Question 77

Which type of retailer generally accepts lower margins than traditional retailers in exchange for higher sales volume?

A)Department stores
B)Traditional specialty retailers
C)Warehouse showrooms
D)Direct marketers
E)Discount stores

Question 78

Bill works for a company that buys snacks such as chips, cookies, and candy in bulk from manufacturers. Bill's company then repackages them and sells them to vending companies that have vending machines at government institutions. Bill most likely works for a(an) ___, while the vending machine company is a(an) _____.

A)wholesaler; retailer
B)wholesaler; broker
C)broker; retailer
D)broker; agent
E)agent; retailer

Question 79

The broker's primary function is to bring the buyer and seller together and assist in negotiating an exchange.

Question 80

Sales offices differ from sales branches in that sales offices may offer credit, deliver goods, and give promotional assistance.