Deck 16: Retailing and Wholesaling

Question 1

Retailing's economic value is represented by the annual sales of retailers and __________.

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

Answer 1

C

Question 2

Figure 16-2
shown in Figure 16-2 above,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

Answer 2

D

Question 3

__________ provided by retailers create value for consumers.

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

Answer 3

A

Question 4

Figure 16-2
shown in Figure 16-2 above,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, books, and music stores
D) electronic stores
E) furniture and home furnishing stores

Question 5

Retailing's economic value is represented by the people employed in retailing as well as by

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

Question 6

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 7

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

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

Question 8

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 9

do retailers like location-based apps such as Foursquare?

A) they use audio and video to communicate a message
B) all consumers demand technology-based offerings today
C) they are free
D) they attract consumers who are not price sensitive
E) they provide an opportunity to personalize offerings to potential customers

Question 10

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 11

ability to shop over the Internet 24/7 provides consumers with __________ utility.

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

Question 12

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 13

Location-based social networking apps such as Foursquare reward customers for

A) using minutes on their mobile phones.
B) shopping online.
C) responding to TV ads.
D) reporting their locations and visiting stores.
E) answering customer service surveys on their mobile phones.

Question 14

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 15

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 16

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 17

Foursquare,Gowalla,Booyah,Brightkite,and Loopt are

A) multiplayer video games.
B) advertising agencies.
C) location-based social networking apps for smartphones.
D) names of new phones targeted at college students.
E) restaurants with new food concepts.

Question 18

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

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

Question 19

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 20

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 21

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 assortment
D) store composition
E) merchandise line

Question 22

of the 30 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

Question 23

Home Depot switched its in-store light fixture displays to compact fluorescent light bulbs it saved __________ per year.

A) $16 million
B) $24 million
C) $29 million
D) $31 million
E) $42 million

Question 24

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 25

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 26

method of classification that describes the degree of service provided to the customer is referred to as _________.

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

Question 27

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 28

There are three key methods of classifying retail operations

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 29

Retailers have come to realize that consumers want products that are consistent with their personal values and

A) foreign regulations.
B) meet third party certifications.
C) they want to purchase them from retailers with similar values.
D) cost less.
E) social image.

Question 30

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 31

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 32

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 33

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 34

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 35

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

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

Question 36

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) commitment
C) involvement
D) obligation
E) pledge

Question 37

Walmart's $421 billion in sales in 2010 surpassed the gross domestic product of all but __________ countries for that same year.

A) 5
B) 12
C) 18
D) 29
E) 50

Question 38

Target has taken the "green" concept to its advertising agency and requires

A) the use of the Green Certified Retail Operations Guide.
B) that all vehicles produce no emissions.
C) a "green" logo appears at the end of the ad.
D) that waste from shooting new commercials be recycled or composted.
E) an environmental impact report each month.

Question 39

requiring its toy suppliers to trim one square-inch of packaging from its lines,Walmart reduced packaging by __________ tons.

A) 3,000
B) 3,500
C) 4,000
D) 4,500
E) 5,000

Question 40

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 41

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) corporation
E) cooperative

Question 42

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 43

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

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

Question 44

Franchising is a type of __________.

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

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 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 with varied merchandise and independent management policies.
E) merchandise is arranged and displayed by professional designers making their shopping experience less stressful.

Question 46

way neighborhood grocers can take advantage of volume discounts commonly available to 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 47

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

A) Corporate chains usually avoid using centralized decision-making.
B) Corporate chains generally own most if not all of their suppliers so they do not have to negotiate for price.
C) Consumers have fewer choices in merchandise since all buying decisions are made unilaterally.
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 48

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 49

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 50

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 51

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 52

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 53

Bloomingdale's stores are all part of __________ corporate chain.

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

Question 54

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 55

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

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

Question 56

There are two general types of franchises:

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

Question 57

Neighborhood grocers that ban together with several other independent grocers who all agree to buy their goods directly from food manufacturers are a form of

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

Question 58

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

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

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

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 61

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 62

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

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

Question 63

General merchandise stores such as Walmart,Kmart,and Target are usually considered __________ outlets.

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

Question 64

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 65

number of U.S.-based retail chains have begun using lines and terminals that do not use clerks.This is an example of what level of retail service?

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

Question 66

McDonald's,Radio Shack,and Subway are all _________.

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

Question 67

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 68

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 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 69

Loehmann's is an upscale,off-price specialty retailer for name-brand designer fashions.Loehmann's provides consumers with

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

Question 70

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 71

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 72

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 73

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 74

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

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

Question 75

Subway is one of the fastest growing __________.

A) product-distribution franchises
B) corporate chains
C) business-format franchises
D) independently owned retailers
E) horizontal marketing systems

Question 76

Subway is a popular __________.

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

Question 77

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 about the same
E) reduces; reduces

Question 78

three commonly used terms to describe levels of service are

A) self-service, limited-service, and full-service.
B) self-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 79

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 80

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