Question 1

Vending machines are no longer limited by the need for cash.In Japan,South Korea,and the Philippines,consumers use mobile phones that transmit payments to vending machines wirelessly.This is an example of how vending machines can provide which type of utility?

Accepted Answer

The answer of Vending machines are no longer limited by...

Question 2

An IKEA mail order catalog is an example of __________ retailing.

Accepted Answer

The IKEA mail order catalog is an example of nonstore retailing because it allows customers to purchase products without physically visiting a brick-and-mortar store location.

Question 3

All of the following are reasons why direct mail and catalog retailing are attractive EXCEPT:

Accepted Answer

The statement "their paper costs and postal rates have declined, making them less expensive to send" is true and is, in fact, one of the reasons why direct mail and catalog retailing are attractive. Therefore, option C is not the correct answer.

Question 4

Vending machines are popular with consumers;recent consumer satisfaction research indicates that __________ percent of consumers believe purchasing from a vending machine is equal to or superior to a store purchase.

Accepted Answer

The question indicates that recent consumer satisfaction research has been conducted to determine what percent of consumers consider purchasing from a vending machine equal to or superior to a store purchase. The answer with the highest percentage listed is E) 82, which means that 82 percent of consumers indicated that they considered buying from a vending machine to be equal to or better than buying from a store.

Question 5

Which of the following is an example of nonstore retailing?

Accepted Answer

Vending machines are an example of nonstore retailing, as they allow customers to purchase products without entering a physical store location.

Question 6

Vending machines are an example of __________.

Accepted Answer

Vending machines are an example of nonstore retailing, which refers to the sale of goods and services without the need for a physical storefront or location.

Question 7

Retailing that occurs outside a retail outlet,such as through direct marketing,direct selling,and automatic vending,is referred to as __________.

Accepted Answer

Nonstore retailing refers to retailing that occurs outside a retail outlet, such as through direct marketing, direct selling, and automatic vending. The other choices are not related to nonstore retailing.

Question 8

Direct-mail and catalog retailing are examples of __________.

Accepted Answer

Direct-mail and catalog retailing involve the sale of products outside of a traditional brick-and-mortar store, making them examples of nonstore retailing.

Question 9

Prices in vending machines tend to be higher because

Accepted Answer

Vending machines require maintenance, regular stocking, and leasing costs. These expenses ultimately result in higher prices for the items sold in vending machines.

Question 10

Intertype competition refers to competition between

Accepted Answer

Intertype competition occurs when retailers of different types (e.g., supermarkets and department stores) compete by offering similar products, often due to a scrambled merchandising policy.

Question 11

About 31 percent of the products sold from vending machines are __________.

Accepted Answer

The answer of About 31 percent of the products sold...

Question 12

All of the following are forms of nonstore retailing EXCEPT:

Accepted Answer

Factory outlets are considered a form of store-based retailing, as they require physical locations where customers can visit to make purchases. The other options listed (direct selling, television home shopping, online retailing, and telemarketing) are all forms of nonstore retailing, as they allow customers to make purchases without physically visiting a store.

Question 13

Fresh-cut flowers that only used to be available from florists can now be purchased at neighborhood supermarkets.This is an example of __________.

Accepted Answer

Intertype competition occurs when retailers of different types, such as supermarkets and florists, sell similar products, like fresh-cut flowers, competing for the same customers.

Question 14

Many supermarkets have in-store restaurants where a customer can buy prepared meals to take home or eat there.Supermarkets and restaurants that provide these same kinds of meals are engaged in __________ competition.

Accepted Answer

The answer of Many supermarkets have in-store restaurants where a...

Question 15

Consider Figure 16-A above.This image MOST LIKELY represents the __________,which shows that very dissimilar types of retail outlets can compete with each other as a result of a scrambled merchandising policy.

Accepted Answer

The image in Figure 16-A represents intertype competition where dissimilar types of retail outlets can compete with each other as a result of a scrambled merchandising policy. The wheel of retailing describes the process of a new type of retailer entering the market as a low-price, low-status operator and then gradually evolving into a higher-priced, higher-status establishment. The retail positioning framework is a tool for identifying where a retailer stands in the market based on perceived value and price. The retail competitive cycle refers to the various stages of competition that retailers go through, ranging from growth to decline. The multichannel retail competitive map is a tool to analyze the competitive landscape of various retailers that offer multiple channels to their customers. Therefore, option C is the best choice.

Question 16

The 5.4 million vending machines currently operating in the United States generate more than __________ in annual sales.

Accepted Answer

According to the information provided, the vending machines in the United States generate more than $19 billion in annual sales, therefore option D is the correct answer.

Question 17

Which form of retailing is Best Buy now using in airports to distribute its mobile phone and computer accessories,digital cameras,flash drives,and other consumer electronics?

Accepted Answer

The answer of Which form of retailing is Best Buy...

Question 18

The average U.S.household now receives __________ direct-mail items or catalogs each week.

Accepted Answer

According to the Direct Marketing Association, the average U.S. household receives 24 direct-mail items or catalogs each week.

Question 19

A supercenter refers to

Accepted Answer

A supercenter is a large retail store that combines a typical merchandise store with a full-size grocery store. It is usually operated by a big-box retailer, such as Walmart or Target, and offers a wide range of products including groceries, clothing, electronics, and household goods.

Question 20

Competition for the same or similar type of product or service between very dissimilar types of retail outlets that results from a scrambled merchandising policy is referred to as __________.

Accepted Answer

Intertype competition occurs when diverse retailers such as drugstores, supermarkets, and discount stores begin to sell similar products to compete with each other. This happens because of a scrambled merchandising policy, which involves retailers offering goods and services that don't normally belong in their product mix. As a result, competition intensifies between the retailers who sell similar products, resulting in intertype competition. Mixed merchandising refers to retailers selling different types of products that are related or complementary to their core offerings. Dual distribution means a manufacturer or wholesaler using multiple channels to distribute its products. Multi-service merchandising isn't a recognized term in retailing.

Quiz 16: Retailing and Wholesaling