Deck 12: Retailing and Wholesaling

Question 1

Which of the following conditions increases the chances of a retailer opting to be categorized as a self-service retailer?

A)when consumers need warranty information about shopping goods
B)when customers are willing to conduct their own locate-compare-select process
C)when the store offers luxury products at highly affordable prices
D)when customers are looking for a narrow product line with a deep assortment
E)when the store has been converted into a designer shop from a department store

Answer 1

B

Question 2

Which term refers to a giant specialty store with a very deep assortment of a particular product line?

A)category killer
B)convenience store
C)factory outlet
D)department store
E)independent store

Answer 2

A

Question 3

________ refers to the activities involved in selling products or services directly to final consumers for their personal, nonbusiness use.

A)Sole sourcing
B)Retailing
C)Manufacturing
D)Procurement
E)Warehousing

Answer 3

B

Question 4

Pawz is a larger retailer that specializes in pet products and services such as pet food, accessories, grooming, toys, and medical treatment. Pawz also has animals available for adoption at all of its many stores located across the nation. Pawz is most likely an example of a ________.

A)convenience store
B)pop-up store
C)category killer
D)lifestyle centre
E)supermarket

Question 5

Stores that provide moderate sales assistance because they carry shopping goods about which customers need a moderate level of information are called ________ retailers.

A)self-service
B)full-service
C)off-price
D)limited-service
E)convenience

Question 6

Which of the following is a type of off-price retailer?

A)specialty store
B)full-service retailer
C)discount store
D)warehouse club
E)supermarket

Question 7

________ refer to retailers that sell standard merchandise at lower prices by accepting lower margins and selling higher volume.

A)Convenience stores
B)Discount stores
C)Full-service retailers
D)Designer shops
E)Specialty stores

Question 8

A convenience store ________.

A)markets to segments comprised mostly of white-collar workers
B)stocks narrow product lines that have wide, deep assortments
C)carries a limited line of high-turnover goods for consumer self-service
D)involves high operation costs due to full-service customer assistance
E)is a multi-channel food and discount retailer that targets niche markets

Question 9

Which type of retailer typically carries deep product assortments of narrow product lines?

A)self-service retailers
B)specialty stores
C)warehouse clubs
D)discount stores
E)factory outlets

Question 10

Allstocks.com is an online retailer that buys furniture, clothing, electronics, and more from a variety of producers at less-than-regular wholesale prices. Allstocks then charges customers less than retail. Allstocks is an example of a(n)________.

A)specialty retailer
B)independent off-price retailer
C)departmental retailer
D)full-service retailer
E)category killer

Question 11

Which type of store is much larger than a regular supermarket and offers a large assortment of routinely purchased food products, nonfood items, and services?

A)discount stores
B)specialty stores
C)factory outlets
D)superstores
E)off-price outlets

Question 12

GameStop, a video game retailer, offers a deep assortment of video games and video game consoles. GameStop is best described as a(n)________.

A)department store
B)supermarket
C)specialty store
D)discount store
E)off-price retailer

Question 13

________ have filled the ultralow-price, high-volume gap by buying at less-than-regular wholesale prices and charging consumers less than retail.

A)Off-price retailers
B)Specialty stores
C)Convenience stores
D)Designer shops
E)Full-service retailers

Question 14

Flax is a chain of stores that carries several product lines including clothing, home furnishings, and household appliances. Each line is operated as a separate department, and employees are available to assist and advise customers in every phase of the shopping process. Flax is most likely a ________.

A)self-service retailer
B)category killer
C)full-service retailer
D)supermarket
E)pop-up store

Question 15

Which types of stores are characterized by specialty goods for which customers need assistance and higher operating costs that are passed along to customers as higher prices?

A)self-service stores
B)convenience stores
C)full-service stores
D)discount stores
E)off-price stores

Question 16

Jones & Company, a major retail chain across the United States, offers a wide range of consumer goods such as clothing, furniture, home appliances, cosmetics, jewellery, and food. Jones & Company is best described as a ________.

A)supermarket
B)department store
C)specialty store
D)pop-up store
E)category killer

Question 17

Customers at Carat, a premium jewellery store, are encouraged to make an appointment before a visit so that a customer service representative is assigned to them. These representatives help every customer make a purchase that meets his or her needs and budget after considering numerous options. The different styles and special features of the jewellery are explained to each customer to aid the purchase decision. In this case, Carat is an example of a(n)________.

A)self-service retailer
B)off-price retailer
C)full-service retailer
D)supermarket
E)convenience store

Question 18

Department stores are most likely characterized by ________.

A)narrow product lines
B)specialty goods and services
C)predatory pricing strategies
D)deep assortments of luxury brands
E)wide varieties of product lines

Question 19

Which of the following statements is true of retailing?

A)All retail stores are full-service retail stores.
B)A department store has a narrow product line with a deep assortment.
C)The largest type of retail outlet is a supermarket.
D)Services like hotels, banks, airlines, restaurants, colleges, and hospitals can be retailed.
E)A feature common to all types of retail stores is the use of the everyday low pricing strategy.

Question 20

Specialty stores are characterized by ________.

A)the sale of convenience and staple items
B)narrow product lines with deep assortments
C)a wide range of products and categories
D)low prices on a wide range of goods
E)routinely purchased food products and services

Question 21

Power centres are characterized by the ________.

A)lack of an anchor store
B)sale of exclusive brands only
C)provision of individual entrances to each store
D)provision for nonretail activities, such as playgrounds
E)absence of any pricing strategies for differentiation

Question 22

Which term refers to a wholesaler-sponsored group of independent retailers that engages in group buying and common merchandising?

A)factory outlet mall
B)retailer cooperative
C)corporate chain
D)warehouse club
E)voluntary chain

Question 23

Dina loves branded apparel and accessories but cannot afford to buy them too often. Fortunately, Dina lives close to an off-price retail store that is owned and operated by a famous brand. The company utilizes this store to sell its surplus, discontinued, or irregular goods at significantly lower costs. The retail store is best referred to as a ________.

A)category killer
B)factory outlet
C)specialty store
D)superstore
E)power centre

Question 24

Barry's is a chain of retail stores that stocks a large variety of goods and practices high-low pricing. This means that Barry's is likely to ________.

A)have low volume and low markups
B)charge low prices constantly
C)offer numerous sales or discounts
D)compete on the basis of price rather than product or service quality
E)use predatory pricing to eliminate competition

Question 25

________ refer to two or more outlets that are commonly owned and controlled.

A)Corporate chains
B)Factory stores
C)Specialty stores
D)Designer shops
E)Warehouse clubs

Question 26

What is most likely the first major marketing decision that a retailer must take?

A)positioning
B)targeting
C)segmentation
D)differentiation
E)promoting

Question 27

Retail convergence most likely leads to ________.

A)reduced differentiation
B)reduced competition
C)increased sales
D)increased profit margins
E)reduced advertising costs

Question 28

Rhonda recently entered into a contractual agreement with StellarCutz, a national chain of affordable, walk-in hair salons. Under the agreement, Rhonda uses the StellarCutz trade name and receives support from StellarCutz in terms of business methods and processes. Rhonda paid a start-up fee to StellarCutz and will pay annual licensing fees for the use of the StellarCutz brand. Which of the following best describes Rhonda's business?

A)franchise
B)factory outlet
C)superstore
D)acquisition
E)joint agreement

Question 29

McPherson's, an ice cream retailer, recently entered into an agreement that allows independent businesspeople at select stores and locations across the country to sell its famous ice creams and milk shakes for a monetary consideration. Which type of contractual retail association is described in the above example?

A)corporate chain
B)voluntary chain
C)franchise organization
D)independent retailer
E)retailer cooperative

Question 30

Which contractual system is distinguished by the fact that it is normally based on some unique product or service?

A)voluntary chain
B)retailer cooperative
C)franchise
D)corporate chain
E)warehouse club

Question 31

A ________ refers to a group of retail businesses built on a site that is planned, developed, owned, and managed as a unit.

A)pop-up store
B)shopping centre
C)warehouse
D)category killer
E)convenience store

Question 32

________ are off-price retailers that operate in huge facilities offering few frills but ultra-low prices and surprise deals on selected branded merchandise.

A)Warehouse clubs
B)Department stores
C)Convenience stores
D)Specialty stores
E)Superstores

Question 33

Which of the following statements is true of shopping centres?

A)Most shopping centres function at the regional level rather than at the neighborhood level.
B)Shopping centres typically contain only those stores that target a niche market segment of high income groups.
C)Shopping centres are groups of retail businesses built on a site that is planned, developed, owned, and managed as a unit.
D)Shopping centres usually contain exclusive brands and specialty stores rather than convenience stores or department stores.
E)Shopping centres are huge superstores that offer a deep assortment of a particular product line.

Question 34

A ________ contains between 15 and 50 retail stores, including a department or variety store, a supermarket, specialty stores, professional offices, and sometimes a bank.

A)community shopping centre
B)warehouse club
C)superstore
D)neighborhood shopping centre
E)regional shopping mall

Question 35

An off-price retailing operation that is owned and operated by a manufacturer and normally carries the manufacturer's surplus, discontinued, or irregular goods is called a ________.

A)category killer
B)factory outlet
C)specialty store
D)superstore
E)warehouse club

Question 36

The Toby's chain of first-class department stores carries a wide range of product lines, including clothing, jewellery, kitchenware, and home furnishings. Toby's typically charge higher prices on an everyday basis and then holds frequent sales and price promotions to increase store traffic. Toby's most likely uses ________.

A)self-service retailing
B)experiential retailing
C)high-low pricing
D)everyday low pricing
E)franchise retailing

Question 37

A ________ is a small open-air mall with upscale stores, convenient locations, and nonretail activities such as a playground, dining establishments, and a movie theater.

A)regional shopping centre
B)lifestyle centre
C)community shopping centre
D)power centre
E)warehouse club

Question 38

Which of the following is most likely the greatest factor in the increasingly short life cycle of new retail forms?

A)changes in technology
B)economic swings
C)import and export regulations
D)stagnating retail convergence
E)global expansion of major retailers

Question 39

Carleese, a leading fashion brand, sets up small temporary boutiques across numerous locations during its year-end sale, promoting its outdated products at half the price. These temporary boutiques are referred to as ________.

A)power centres
B)franchises
C)shopping centres
D)pop-up stores
E)category killers

Question 40

Venture Zone, a hiking and climbing equipment retailer, has a rock climbing wall inside the store so that consumers can test products prior to purchase. Venture Zone most likely differentiates itself from its competitors through ________.

A)everyday low pricing
B)predatory pricing
C)self-service retailing
D)experiential retailing
E)franchising

Question 41

________ are the largest group of wholesalers and can be divided into two broad types of wholesalers: full-service and limited-service.

A)Brokers
B)Retailers
C)Agent wholesalers
D)Merchant wholesalers
E)Manufacturers' agents

Question 42

Which of the following is not a good practice in social media for retailing?

A)monitor the conversations
B)identify a pool of influencers who can spread the right message
C)incentivize influencers to spread the right message
D)create a social media account and then ignore it
E)develop a relationship with the influencers

Question 43

Most retailers believe that ________.

A)the Internet is a fad
B)social media is unreliable
C)online retail offers an additional channel to increase reach and sales
D)online retail is an additional channel to provide information but not sales
E)the cost of doing business on the Internet is not justified by sales

Question 44

At Neiman Marcus, a first-class department store, customers shop for specialty products and have come to expect assistance in every phase of the shopping process. Neiman Marcus is a ________.

A)self-service retailer
B)limited-service retailer
C)full-service retailer
D)specialty store
E)power centre

Question 45

________ includes all the activities involved in selling goods and services to those buying them for resale or business use.

A)Wholesaling
B)Sole sourcing
C)Franchising
D)Crowdsourcing
E)Showrooming

Question 46

Retailers use digital technologies to ________.

A)provide a more personalized shopping experience
B)keep certain consumers out of the store
C)charge higher prices
D)avoid customer feedback and complaints
E)eliminate transportation costs

Question 47

Which of the following is true about trends in wholesaling?

A)New laws prevent wholesalers from having their own retailing operations.
B)Value-added customer relationships have been replaced by control systems.
C)Merchant wholesalers are decreasing in number and relevance.
D)The demand for lower prices and higher quality has increased.
E)Bulk breaking is increasingly popular and necessary.

Question 48

All of the following are trends in Canadian retail except ________.

A)experiential retailing
B)enhanced use of in-store technology
C)increased gift card usage
D)social media and mobile
E)rapid growth of malls

Question 49

Which wholesaler channel function helps reduce the inventory holding costs and risks of suppliers and customers?

A)showrooming
B)assortment building
C)warehousing
D)financing
E)transporting

Question 50

Wholesalers most likely discourage less-profitable customers by ________.

A)increasing product promotions
B)carrying exclusive product lines
C)overseeing inventory control systems
D)adding service charges to small purchase orders
E)requiring smaller orders to lower transportation costs

Question 51

According to the text, today's large and progressive wholesalers have successfully reacted to rising costs by ________.

A)relocating to low-rent, low-tax areas
B)investing in information technology systems
C)eliminating the need for brokers and agents
D)increasing customer service responsibilities
E)reducing promotional and personal selling activities

Question 52

Which of the following channel functions of wholesalers is demonstrated when a buyer receives quicker delivery because wholesalers are located closer than are producers?

A)buying and assortment building
B)financing
C)transportation
D)risk bearing
E)warehousing

Question 53

JP Wholesalers is one of the largest wholesalers of wooden furnishings in the country. Recently, the company opened a chain of stores called JP Designer Homes that has become popular due to the good reputation the company has as a wholesaler. The company has now started acquiring smaller retail chains and consolidating its position in the market. Which of the following trends is reflected in this scenario?

A)the shift toward self-service retailing
B)the decline of superstores and megastores
C)the decline of the voluntary chain distribution method
D)the rise of franchise organizations and joint partnerships
E)the blurring of distinctions between retailers and wholesalers

Question 54

Checking out products in traditional stores and purchasing them online is referred to as ________.

A)warehousing
B)wholesaling
C)retailing
D)franchising
E)showrooming

Question 55

Wayne Wholesaling fulfills many channel functions for its customers. The company mainly focuses on helping retailers to train their salespeople, improve store layouts, and set up inventory control systems. Based on this description, which channel function is provided by Wayne Wholesaling?

A)buying and assortment building
B)selling and promoting
C)risk bearing services
D)market information services
E)management services and advice

Question 56

GameStop sells video games and systems, offering a narrow product line with a deep assortment within that line. GameStop is a(n)________.

A)department store
B)convenience store
C)specialty store
D)category killer
E)off-price retailer

Question 57

C & G Retail, a chain of local supermarkets, procures all its goods directly from the producers' factories. This type of wholesaling is usually done in ________.

A)corporate broker branches
B)manufacturers' offices
C)value-retail centres
D)warehouse clubs
E)factory outlet malls

Question 58

Hamilton Wholesaling, an electronics wholesaling firm, provides many services to customers including buying, storing, and transporting expensive and delicate electronics equipment. Hamilton takes title of ownership to all goods that the firm handles. Hamilton is most likely a(n)________.

A)wholesaling broker
B)merchant wholesaler
C)agent wholesaler
D)manufacturer's agent
E)manufacturer's representative

Question 59

In Canada, online retail growth rates are ________.

A)decreasing rapidly
B)decreasing modestly
C)increasing modestly
D)increasing at a double-digit rate every year
E)not changing

Question 60

Which wholesaler channel function is demonstrated when a wholesaler's sales force helps a manufacturer reach many small customers at a low cost?

A)bulk breaking
B)selling and promoting
C)buying and assortment building
D)warehousing
E)risk bearing

Question 61

Casey's is a large supermarket that practices everyday low pricing. Therefore, consumers should expect few discounts or sales if shopping at Casey's regularly.

Question 62

McDonald's, Subway, and Pizza Hut are all examples of a ________.

A)voluntary chain
B)retailer cooperative
C)franchise
D)full-service retailer
E)power centre

Question 63

Independent off-price retailers purchase merchandise at rates that are substantially higher than regular wholesale rates.

Question 64

In a retailer cooperative, independent retailers band together to set up a jointly owned, central wholesale operation and conduct joint merchandising and promotion efforts.

Question 65

Department stores carry narrow product lines with deep assortments within those lines.

Question 66

The retailer's product assortment should be distinguishable and also match target shoppers' expectations.

Question 67

Retailers cannot make consistent decisions about product assortment and pricing until they define and profile their markets.

Question 68

Off-price retailers can be found in all areas, from food, clothing, and electronics to no-frills banking and discount brokerages.

Question 69

Category killers are superstores that carry a deep assortment of a particular product line.

Question 70

Venns is a chain of department stores that has become more focused in recent years and now stocks only exclusive labels of designer home accessories. Venns has transformed itself into a chain of pop-up stores.

Question 71

Retailers are businesses whose sales come primarily from retailing.

Question 72

Convenience stores are much larger than regular supermarkets and offer a large assortment of routinely purchased food products, nonfood items, and services.

Question 73

7-Eleven, Stop-N-Go, and Macs, small stores that traditionally have had a primary market of young, blue-collar men, are examples of ________.

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

Question 74

A growing number of outlet malls now feature upscale brands such as Coach, Polo Ralph Lauren, Dolce & Gabbana, and Giorgio Armani. Which of the following are most likely to protest about this trend to the manufacturers of these brands?

A)membership warehouses
B)agents
C)brokers
D)department stores
E)factory outlets

Question 75

A majority of shoppers who buy products at traditional stores first check them out online.

Question 76

Voluntary chains are normally based on one unique product or a specific trade name.

Question 77

Pricing decisions of specialty stores are typically based on low markups on a high volume of products.

Question 78

Overstock.com, a web seller that buys furniture, clothing, electronics, and more from a variety of producers at less-than-regular wholesale prices and then charges customers less than retail, is a(n)________.

A)discount store
B)independent off-price retailer
C)factory outlet
D)wholesale club
E)category killer

Question 79

Factory outlet malls combine manufacturers' outlets with off-price retail stores and department store clearance outlets.

Question 80

PennyLane Retailers believe in a do-it-yourself approach, and their stores are designed for consumers who are willing to perform their own locate-compare-select process. PennyLane is an example of a full-service retailer.