Deck 13: Retailing and Wholesaling

Question 1

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

Answer 1

E

Question 2

The ability to shop over the Internet 24 hours a day, 7 days a week provides consumers with __________ utility.

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

Answer 2

B

Question 3

The overlay of sound, video, and 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

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

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

Question 5

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 6

Retailing refers to 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 7

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 8

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 9

The Sports Authority is a sporting goods superstore that provides year-round inventory of equipment for just about any sport you can name. 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 10

Walmart's $469 billion in sales in 2012 surpassed the gross domestic product of all but __________ countries for that same year.

A)5
B)12
C)18
D)29
E)55

Question 11

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 12

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)JCPenney
E)Bloomingdale

Question 13

The revolutionary new __________ resembles a pair of eyeglasses that has both the capability for voice recognition and a small screen capable of displaying information that may help wearers with their shopping experiences as they engage in the purchase decision process.

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

Question 14

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.To consumers, the value of retailing is in the form of utilities provided.

Question 15

At the Christmas Tree Shop, customers can shop for Christmas gifts at any time of 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

The __________ provided by retailers create value for consumers.

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

Question 17

Albertson's 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 18

All of the following are examples of marketers developing products and services that use augmented reality EXCEPT:

A)clothing retailers allow consumers to take pictures of themselves and then superimpose images of clothing on them.
B)IBM created an app that enables smartphone users to take a picture of a product they are interested in, then displaying information about that item on the screen based on their preferences (price, nutritional value, etc.).
C)IKEA's new catalog allows consumer to access 3D models and videos through a tablet image recognition app.
D)Aurasma has developed pattern recognition software that can identify real-world objects, which then activates animations for consumers to view.
E)Apple's iTV allows viewers to take a picture or video of themselves and then places it in an online, holographic reality TV programs, such as Survivor.

Question 19

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 20

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 21

When Home Depot switched its in-store light fixture displays to compact fluorescent light and LED light 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

Aeon, Carrefour, Tesco, and Metro Group are

A)sizeable 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)historically important companies that developed consumer selling systems, though none still exist today.

Question 23

One way to assess the importance of retailing to the U.S. and global economies is to measure the

A)price asked for any one item.
B)cost of goods sold.
C)people employed in retailing.
D)net return on capital.
E)progress towards eliminating of global boundaries.

Question 24

A method of classification that describes how many different types of products a retailer 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 25

One of the most common forms of retail ownership is the __________ owned by a person.

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

Question 26

__________ 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)U.S. Green Retail Association
E)Leadership in Energy and Environmental Design (LEED)

Question 27

Walmart reduced waste in packaging by 3,500 tons by __________.

A)purchasing more merchandise from U.S. manufacturers
B)requiring its toy suppliers to trim one square inch of packaging from their lines
C)shipping with airline carriers which provide superior handline
D)identifying products that can be shipped without packaging materials
E)using natural gas-powered delivery vehicles that reduce emissions

Question 28

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)multi-national cartel

Question 29

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

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

Question 30

Retailers may decide to pursue a third-party environmental certification because consumers want to purchase products from those retailers that have similar __________.

A)offerings
B)ideologies
C)risk tolerance
D)locations
E)pricing strategies

Question 31

Level of service is used to classify retailers. Three levels of service are: __________-, limited-, and full-service retailers.

A)self
B)non
C)minimal
D)fair
E)upon request

Question 32

One way to assess the importance of retailing to the U.S. and global economies is to measure the

A)price asked for any one item.
B)cost of goods sold.
C)net return on capital.
D)annual sales of retailers.
E)progress towards eliminating of global boundaries.

Question 33

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)multi-national cartel

Question 34

There are three key methods of classifying retail operations. These include:

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 35

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 36

Most of the 1.1 million retail establishments in the United States, including hardware stores, convenience stores, clothing stores, and computer and software stores, are considered __________.

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

Question 37

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

A)dual ownership
B)industry consortium
C)retailing cooperative
D)multi-national cartel
E)corporate chain

Question 38

Which of the following is a commonly used method of classifying retail outlets?

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

Question 39

One method of classification for retailers describes whether an organization is self-, limited-, or full-__________.

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

Question 40

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 41

In a(n) __________, an individual or firm contracts with a parent company to set up a business or retail outlet.

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

Question 42

For what type of contractual system does a parent company provide assistance in selecting the location, setting up the store or facility, advertising, and training personnel?

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

Question 43

There are two general types of franchises:

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 44

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 45

In retailing, a form of ownership that involves multiple outlets under common ownership is referred to as a(n)

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

Question 46

Which method of classifying retail outlets would be 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

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 non-binding cooperatives.
C)wholesaler-sponsored voluntary chains, non-binding cooperatives, and franchises.
D)dual ownership agreements, industry consortiums, and multi-national cartels.
E)non-binding, binding, and in perpetuity.

Question 48

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 49

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.
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 50

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

A)individual
B)conglomerate
C)consortium
D)chain
E)cooperative

Question 51

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 like 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 52

Franchising is a type of __________.

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

Question 53

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 54

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 55

As a franchisor, Radio Shack 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

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 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

Neighborhood grocers that ban together with several other independent grocers who all agree to buy their goods directly from food manufacturers is a(n)

A)retailer-sponsored cooperative.
B)consortium system.
C)administrative system.
D)conglomerate system.
E)collaborate chain.

Question 59

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 60

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 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

Ford dealerships 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 63

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

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

Question 64

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)complete-service retailers
E)upscale-service retailers

Question 65

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

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

Question 66

McDonald's, Radio Shack, and Subway are examples of __________.

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

Question 67

Target recently introduced its Target REDcard, where cardholders receive 5% back for each purchase. Target also allows customers to return merchandise within 30 days but 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 68

Redbox (see photo above) provides video rental 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 69

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.Three levels of service are: self-service, limited-service, and full-service.

Question 70

Many airlines now have terminals that allow you to check yourself in for your flight electronically upon your arrival at the airport. This is an example of what level of service?

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

Question 71

Warehouse clubs and grocery stores that require customers to scan and bag their own items provide what level of retail service?

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

Question 72

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

A)Marley Coffee.
B)Shop24.
C)Target.
D)Redbox.
E)Costco.

Question 73

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)reduced-service
C)minimal-service
D)self-service
E)full-service

Question 74

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(n) __________.

A)exclusive-service retailer
B)limited-service retailer
C)full-service retailer
D)premium-service retailer
E)complete-service retailer

Question 75

Compared to the business-format franchise, the franchisor provides a few general guidelines to the franchisee in a

A)corporate chain franchise.
B)manufacturing franchise.
C)product-distribution franchise.
D)general service franchise.
E)business franchise venturE.In product-distribution franchising, the franchisor provides a few general guidelines and the franchisee is much more independent.

Question 76

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.Text term definition - business-format franchise.

Question 77

Subway is a popular __________.

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

Question 78

By selling franchises, an organization __________ the cost of expansion and __________ its control compared to other growth options.

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

Question 79

Loehmann's is an upscale, off-price specialty retailer that sells name-brand designer fashions. A few salespeople are around to help in select places, but customers are basically on their own to find what they need and bring it to checkout. Loehmann's provides its consumers with

A)full-service.
B)limited service.
C)self-service.
D)restricted service.
E)functional servicE.Customers are responsible for most shopping activities when visiting limited service retailers like Loehmann's, although sales people are available in some departments.

Question 80

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