Deck 16: Retailing and Wholesaling

Question 1

The revolutionary new __________ resembles a pair of eyeglasses with a small display screen visible to the wearer. Image and voice recognition capabilities allow retail clerks to check manuals for technical information, verify stock inventories, place orders, or even check out customers from anywhere in the store.

A)Apple iWatch
B)Facebook Vision
C)EyeTap Goggles
D)Google Glass
E)Foursquare's FourEyes

Answer 1

D

Question 2

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.

Answer 2

A

Question 3

The overlay of stored images or graphics with the real-world environment creates what type of reality for wearers of these new Google Glass digital eyeglasses?

A)virtual
B)cognitive
C)augmented
D)apparent
E)ultimate

Answer 3

C

Question 4

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 5

Walmart's $485 billion in sales in 2014 surpassed the gross domestic product of all but __________ countries for that same year.

A)five
B)12
C)18
D)38
E)55

Question 6

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 7

The __________ provided by retailers create value for consumers.

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

Question 8

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

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

Question 9

The smallest dollar amount of retail sales in the United States is generated by

A)automotive dealers.
B)food and beverage stores.
C)sporting goods, book, and music stores.
D)electronic stores.
E)furniture and home furnishing stores.

Question 10

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

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

Question 11

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.

Question 12

Albertsons Supermarket 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 13

The greatest dollar amount of retail sales in the United States is generated by

A)food and beverage stores.
B)sporting goods, books, and music stores.
C)electronic stores.
D)automotive dealers.
E)furniture and home furnishing stores.

Question 14

The Sports Authority is a sporting goods superstore that provides year-round inventory of equipment for just about any sport. Even during the off-season, equipment for seasonal sports is available at the Sports Authority. Which utility does the Sports Authority best provide?

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

Question 15

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 16

A restaurant that offers food made exactly to each customer's preference is providing __________ utility.

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

Question 17

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 18

Wells Fargo is one of the best-run banks in the United States. It reaches retail customers through 9,000 stores, a worldwide network of 12,000 ATMs, and its online banking service. Which utility does Wells Fargo best provide?

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

Question 19

CarMax dealers have adopted a "no-hassle, 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 20

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

Question 21

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 22

There are three general forms of retail ownership: independent retailer, corporate chain, and

A)dual ownership.
B)industry consortium.
C)retailing cooperative.
D)contractual system.
E)multinational cartel.

Question 23

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 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

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 26

One method of classification describes whether a retailer is self-, limited-, or full-

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

Question 27

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 28

Most of the 1.1 million retail establishments in the United States are considered

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

Question 29

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 30

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 31

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 32

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

A)service versus product
B)form of ownership
C)proportion of national versus private label brands carried
D)revenues generated
E)profitability

Question 33

The __________ distinguishes retail outlets based on whether independent retailers, corporate chains, or contractual systems own the outlet.

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

Question 34

Three __________ are provided by self-, limited-, and full-service retailers.

A)levels of distribution
B)levels of involvement
C)levels of service
D)service commitments
E)merchandise lines

Question 35

The degree of service provided to the customer from self-, limited-, and full-service retailers is referred to as

A)involvement.
B)level of service.
C)service commitment.
D)customer obligation.
E)degree of commitment.

Question 36

There are three general forms of retail ownership: contractual system, corporate chain, and

A)dual ownership.
B)industry consortium.
C)retailing cooperative.
D)independent retailer.
E)multinational cartel.

Question 37

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 38

The most common form of retail ownership is the

A)corporate chain model.
B)consumer cooperative model.
C)contractual system of group shareholdings.
D)independent retailer owned by an individual.
E)administered systems chain.

Question 39

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 chain.
E)a cooperative.

Question 40

Independent retailers account for most of the __________ retail establishments in the United States.

A)50,000
B)90,000
C)500,000
D)900,000
E)1.1 million

Question 41

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 42

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)the latter 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 43

Bloomingdale's stores are part of __________ corporate chain.

A)Dillard's
B)Macy's
C)Target's
D)Walmart's
E)Saks Fifth Avenue's

Question 44

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 45

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 46

McDonald's, 7-Eleven, and Subway are examples of

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

Question 47

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 48

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 49

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 50

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 51

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 52

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 53

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 54

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 55

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 56

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 57

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 58

Franchising is a type of

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

Question 59

Walmart has developed a sophisticated inventory management and cost control system that allows rapid price changes for each product in the store. The firm also uses technologies such as __________ to improve the quality of information available about products.

A)radio frequency identification
B)encapsulation techniques
C)bar code scanners
D)nanotechnology
E)cookies

Question 60

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 61

As a business-format franchisor, McDonald's provides step-by-step procedures for most aspects of the business and

A)provides an accounting system to pay the franchisee bills promptly.
B)shops for the best food values.
C)maintains the property.
D)guidelines for the most likely decisions a franchisee will face.
E)disciplines dishonest employees.

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)full-domain retailers.
E)upscale retailers.

Question 63

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 still does not offer alteration services. 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 64

Organizations that decide to franchise (franchisors) have __________ expansion costs accompanied by __________ control, compared to owning their own retail outlets.

A)greater; greater
B)reduced; reduced
C)greater; reduced
D)reduced; greater
E)greater; about the same

Question 65

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 66

The three commonly used terms to describe levels of service 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 67

Subway is a popular

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

Question 68

Off-price retailers, warehouse clubs, and grocery stores that require customers to bag their groceries provide what level of retail service?

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

Question 69

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 70

Specialty stores and department stores, which provide many services to their customers, are frequently categorized by which level of service?

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

Question 71

Franchising is attractive for the franchisee because

A)it gives the franchisee complete control over the delivery and presentation of merchandise.
B)the license fees paid to the franchisor are the only fees the franchisee pays.
C)it relieves the franchisee from any company or product liabilities.
D)it offers the franchisee the opportunity to enter into a well-known, established business where managerial advice is provided.
E)the franchisee is completely his or her own boss.

Question 72

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 73

Ford and Coca-Cola 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 74

Loehmann's is an upscale, specialty retailer that sells name-brand designer fashions. A few salespeople are available for selected departments, but customers are responsible for most of their shopping activities. Loehmann's provides its consumers with

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

Question 75

A number of U.S.-based retail chains use special checkout lanes and terminals instead of clerks. This is an example of what level of service?

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

Question 76

All of the following retailers provide self-service to their customers except

A)Zipcar.
B)Shop24.
C)Target.
D)Redbox.
E)Costco.

Question 77

A franchise where the franchiser provides a few general guidelines 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 78

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 79

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

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

Question 80

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.