Deck 13: Retailing and Wholesaling

Question 1

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

A) Franchising
B) Retailing
C) Brokering
D) Wholesaling
E) Disintermediation

Answer 1

Retailing

Question 2

________ is the basis of all discount operations and is typically used by sellers of convenience goods.Retailers offering this level of service require customers to perform their own "locate-compare-select" process in order to save money.

A) Limited-service
B) Self-service
C) Full-service
D) Specialty-service
E) Wholesaling

Answer 2

Self-service

Question 3

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

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

Answer 3

full-service retailer

Question 4

Which type of small store carries a limited line of high-turnover convenience goods and makes most of its revenues from cigarette,beverage,and gasoline sales?

A) convenience
B) chain
C) department
D) supermarket
E) hypermarket

Question 5

Although _________ have been very successful in Europe and other world markets,they have met with little success in the United States,China,and Southeast Asia.

A) discount stores
B) convenience stores
C) hypermarkets
D) specialty stores
E) factory outlets

Question 6

Specialty stores carry ________ with ________ within them.

A) convenience items; mostly staples
B) narrow product lines; deep assortments
C) narrow product lines; shallow assortments
D) wide product lines; shallow assortments
E) wide product lines; deep assortments

Question 7

Early ________ cut expenses by offering few services and operating in warehouse-like facilities in low-rent,heavily traveled districts.

A) chain stores
B) factory outlet malls
C) discount stores
D) off-price retailers
E) full-service retailers

Question 8

Which type of store carries a deep assortment,has knowledgeable staff,and might actually be viewed as a giant specialty store?

A) category killer
B) chain
C) factory outlet
D) shopping center
E) independent

Question 9

In recent years,________ has been growing fast.This includes selling to final consumers through direct mail,catalogs,telephone,and the Internet.

A) social marketing
B) shopper marketing
C) franchising
D) non-store retailing
E) e-commerce

Question 10

Which type of stores usually carry more specialty goods for which customers like to be "waited on" and have much higher operating costs,which are passed along to the customer?

A) self-service stores
B) category killer stores
C) full-service stores
D) independent stores
E) specialty-service retailers

Question 11

Which of the following types of retailers likely requires their employees to focus most on assisting customers as they shop?

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

Question 12

Service retailers include all of the following EXCEPT ________.

A) hotels and motels
B) airlines
C) movie theaters
D) bowling alleys
E) convenience stores

Question 13

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

A) category killer
B) chain
C) factory outlet
D) superstore
E) off-price

Question 14

________ are flourishing due to increased use of market segmentation and market targeting.

A) Chain stores
B) Specialty stores
C) Superstores
D) Discount stores
E) Off-price stores

Question 15

________ such as BHG provide more sales assistance because they carry more shopping goods about which customers need information.Their increased operating costs result in higher prices.

A) Self-service retailers
B) Full-service retailers
C) Off-price retailers
D) Limited-service retailers
E) Specialty-service retailers

Question 16

Which type of store carries a wide variety of product lines and differentiates itself through service,but has been squeezed in recent years between more focused and flexible specialty stores on the one hand and more efficient,lower-priced discounters on the other?

A) chain
B) department
C) factory outlet
D) merchant wholesaler
E) independents

Question 17

Which type of retailer tends to be the most frequently shopped?

A) convenience stores
B) department stores
C) superstores
D) supermarkets
E) off-price retailers

Question 18

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

A) Off-price retailers
B) Discount stores
C) Convenience stores
D) Chain stores
E) Limited-service retailers

Question 19

________ sell standard merchandise at lower prices by accepting lower margins and selling higher volume.

A) Merchant wholesalers
B) Discount stores
C) Full-service retailers
D) Limited-service retailers
E) Factory outlets

Question 20

________ are facing slow sales growth because of slower population growth,increased competition,and the rapid growth of out-of-home eating.

A) Convenience stores
B) Department stores
C) Chain stores
D) Supermarkets
E) Hypermarkets

Question 21

Press conferences,speeches,store openings,special events,newsletters,magazines,and public service activities are examples of ways retailers use ________.

A) public relations
B) sales promotions
C) personal selling
D) the wheel-of-retailing concept
E) retail convergence

Question 22

The main difference between ________ organizations and other contractual systems is that these systems are normally based on some unique product or service.

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

Question 23

Service differentiation among retailers has ________.

A) increased
B) eroded
C) stayed the same
D) franchised
E) tripled

Question 24

Retail assortments are looking more and more alike because ________.

A) customers today are more focused on service differentiation
B) national-brand manufacturers have placed their products almost everywhere
C) market segmentation has proved ineffective
D) stores are clustered together to increase their customer pulling power
E) more stores are practicing "experiential retailing"

Question 25

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

A) Chain stores
B) Convenience stores
C) Off-price retailers
D) Independent off-price retailers
E) Power centers

Question 26

________ were the main form of retail cluster until the 1950s.

A) Department stores
B) Discount stores
C) Independent off-price retailers
D) Central business districts
E) Independent stores

Question 27

Why do stores cluster together?

A) to decrease competition
B) to increase their customer pulling power
C) to take advantage of franchise agreements
D) to create retailer cooperatives
E) to standardize the service mix

Question 28

In retailing there are three levels of service.They are self-service,limited service,and ________.

A) fast service
B) unlimited service
C) full service
D) A, B, and C
E) None of the above.

Question 29

________,which buy at less-than-regular wholesale prices and charge consumers less than retail,are independently owned and run or are divisions of larger retail corporations.

A) Discount stores
B) Warehouse clubs
C) Superstores
D) Independent off-price retailers
E) Full-service retailers

Question 30

As a result of the great success of corporate chains,many independent stores choose to band together in either a voluntary chain or a(n)________.

A) factory outlet
B) retailer cooperative
C) independent off-price retailer
D) warehouse club
E) convenience cooperative

Question 31

________ are sometimes several stores grouped together.These stores offer prices as low as 50 percent below retail on a wide range of mostly surplus,discounted,or irregular items.

A) Category killers
B) Factory outlets
C) Specialty stores
D) Superstores
E) Power centers

Question 32

In-store demonstrations,displays,contests,and visiting celebrities are examples of ________.

A) franchises
B) sales promotions
C) agent promotions
D) broker promotions
E) product life-cycling

Question 33

________ operate in warehouse-like facilities,sell a limited selection of items,and offer few frills.Customers pay annual membership fees and are able to purchase goods at deep discounts.

A) Warehouse clubs
B) Independent off-price retailers
C) Factory outlets
D) Discount stores
E) Superstores

Question 34

Until retailers ________ and ________ their markets,they cannot make consistent decisions about product assortment,services,pricing,advertising,store décor,or any of the other decisions that must support their positions.

A) compete with; position
B) target; compete with
C) define; profile
D) limit; serve
E) divest; eliminate

Question 35

Costco's surprise offerings of seconds,overstocks,and closeouts,occasionally including diamonds,is an example of how a retailer can differentiate itself through ________.

A) product assortment
B) services mix
C) experiential retailing
D) store atmosphere
E) high-low pricing

Question 36

Which of the following is NOT one of the main types of off-price retailers?

A) independents
B) factory outlets
C) warehouse clubs
D) category killers
E) membership warehouses

Question 37

A retailer may fail because it tries to provide "something for everyone" and ends up satisfying no market well.Successful retailers ________ their target markets well and position themselves strongly.

A) increase
B) franchise
C) wholesale
D) define
E) position

Question 38

A retailer's ________ should differentiate the retailer while matching target shoppers' expectations.One strategy is to offer merchandise that no other competitor carries.

A) agent
B) broker
C) product assortment
D) environment
E) distribution strategy

Question 39

Some retailers invite customers to ask questions or consult service representatives in person or via phone or keyboard.This is an example of a ________.

A) product assortment
B) services mix
C) segmentation
D) atmosphere
E) targeting

Question 40

McDonald's and Subway are both examples of a ________.

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

Question 41

Touch-screen kiosks,customer-loyalty cards,handheld shopping assistants,and self-scanning checkout systems are all examples of how retailers use technology to ________.

A) maintain inventory costs
B) send information between stores
C) meet consumers' expectations
D) produce more accurate forecasts
E) interact with suppliers

Question 42

Retail convergence is a merging of all of the following EXCEPT ________.

A) consumers
B) employees
C) products
D) prices
E) retailers

Question 43

A ________ contains between 15 and 40 retail stores,including a department or variety store,a supermarket,specialty stores,professional offices,and sometimes a bank.

A) community shopping center
B) neighborhood shopping center
C) strip mall
D) regional shopping center
E) power center

Question 44

_____________ have increased rapidly during the past few years to challenge traditional indoor malls.

A) Regional shopping centers
B) Lifestyle centers
C) Community shopping centers
D) Franchisees
E) Power centers

Question 45

A ________ is a smaller mall with upscale stores,convenient locations,and an expensive atmosphere.It is typically located near affluent residential neighborhoods.

A) regional shopping center
B) lifestyle center
C) community shopping center
D) franchise
E) power center

Question 46

Convergence means greater ________ for retailers and greater difficulty in ________ offerings.

A) differentiating; pricing
B) sales; differentiating
C) profit margins; sales
D) competition; differentiating
E) branding; differentiating

Question 47

The merging of consumers,products,prices,and retailers is called ________.

A) retail conglomeration
B) consumer convergence
C) price merging
D) retail convergence
E) retail clustering

Question 48

Most shopping centers are ________ containing between 5 and 15 stores; they are close and convenient for consumers.

A) community shopping centers
B) power centers
C) strip malls
D) lifestyle centers
E) factory outlets

Question 49

Most ________ retailers are significantly behind ________ retailers in global expansion.

A) African; Peruvian
B) European; American
C) American; European and Asian
D) Asian; American
E) Asian; African

Question 50

________ buy mostly from producers and sell to retailers and industrial consumers.

A) Independents
B) Factory outlets
C) Wholesalers
D) Discount stores
E) Megaretailers

Question 51

According to the ________ concept,new retailing forms often begin as low-margin,low-price,low-status operations to challenge established retailers,then become successful,and eventually take the place of the established retailers they had challenged.

A) agent
B) broker
C) wheel-of-retailing
D) warehousing
E) product life cycle

Question 52

____________ offer superior information systems and buying power,these giant retailers have better merchandise selection,good service,and offer strong price savings to consumers.

A) Category killers
B) Franchises
C) Mega-retailers
D) Power centers
E) Lifestyle centers

Question 53

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

A) bulk-breaking
B) selling and promoting
C) buying and assortment building
D) warehousing
E) rackjobbing

Question 54

Which of the following has NOT contributed to the growth of online business?

A) easier-to-use Web sites
B) more interesting and attractive Web sites
C) concerns about online privacy and security
D) improved online service
E) increasingly sophisticated search engines

Question 55

Today's trend in retail clusters is toward ________,huge unenclosed shopping centers consisting of a long strip of retail stores,including at least one large,freestanding anchor store like Wal-mart.Each store has its own entrance with parking directly in front for shoppers who wish to visit only one store.

A) shopping malls
B) power centers
C) superstores
D) chain stores
E) regional shopping centers

Question 56

A ________ contains from 40 to 200 stores,is like a covered mini-downtown,and attracts customers from a wide area.

A) community shopping center
B) neighborhood shopping center
C) strip mall
D) regional shopping center
E) power center

Question 57

Mail-order,phone,and online shopping are all examples of ________.

A) shopper marketing
B) non-store retailing
C) off-price retailing
D) full-service retailing
E) wholesaling

Question 58

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

A) merchant wholesaler
B) franchise
C) shopping center
D) supermarket
E) hypermarket

Question 59

________,the world's second largest retailer after Wal-mart,has embarked on an aggressive mission to extend its role as a leading international retailer.

A) McDonald's
B) Target
C) Carrefour
D) IKEA
E) Costco

Question 60

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

A) Wholesaling
B) Retailing
C) Franchising
D) Discounting
E) Disintermediation

Question 61

In response to slow growth in their domestic markets,many wholesalers are ________.

A) contracting their international business
B) increasing their international business
C) divesting themselves of costly technologies
D) lengthening the marketing channel
E) reducing elaborate promotional efforts

Question 62

7-Eleven,Cheers and Circle K,small stores that traditionally have had an image of a "truck stop" where men go to buy beer,cigarettes,and magazines,are examples of ________.

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

Question 63

Like retailers,wholesalers must ________ their target markets and ________ themselves effectively,for they cannot serve everyone.

A) define; position
B) position; define
C) discount; franchise
D) franchise; discount
E) identify; compare

Question 64

Savvy wholesalers realize that their only reason for existence comes from increasing the efficiency and effectiveness of the ________.

A) retailer
B) industry
C) distribution system
D) end customer
E) entire marketing channel

Question 65

Which of the following is NOT one of a wholesaler's channel functions?

A) financing
B) risk bearing
C) providing market information
D) off-price retailing
E) bulk-breaking

Question 66

A retailer's price policy must fit its target market,product,service assortment,competition and __________.

A) positioning
B) place decisions
C) retail convergence
D) retail technology
E) wholesaling

Question 67

In order to ________,wholesalers can propose automatic reordering systems,set up management-training and advising systems,or even sponsor a voluntary chain.

A) define their target markets
B) identify more profitable customers
C) determine product and service assortments
D) build better relationships with customers
E) negotiate pricing

Question 68

Which of the following is NOT one of the major classifications of wholesalers?

A) merchant wholesalers
B) agents
C) manufacturers' sales branches and offices
D) specialty wholesalers
E) brokers

Question 69

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) category killer
D) specialty store
E) off-price retailer

Question 70

Which wholesaler's channel function is demonstrated when a buyer receives quicker delivery because wholesalers are located closer than producers?

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

Question 71

Which wholesaler's channel function is demonstrated when a wholesaler reduces inventory holding costs and risks to suppliers and customers?

A) financing
B) transporting
C) buying and assortment building
D) warehousing
E) bulk breaking

Question 72

Today's large,progressive wholesalers have successfully reacted to rising costs by ________.

A) relocating in low-rent, low-tax areas
B) investing in information technology systems
C) investing less money in expensive machinery
D) increasing their markup
E) reducing promotional activities

Question 73

________,or manufacturers' representatives,represent a buyer or seller on a more permanent basis.

A) Brokers
B) Franchises
C) Agents
D) Retailers
E) Intermediaries

Question 74

________ and ________ do not take title to goods,and they perform only a few channel functions.

A) Full-service wholesalers; limited-service wholesalers
B) Brokers; agents
C) Branches; offices
D) Power centers; independent wholesalers
E) Independent wholesalers; off-price retailers

Question 75

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

A) Brokers
B) Manufacturer sellers
C) Agents
D) Merchant wholesalers
E) Specialty wholesalers

Question 76

A 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 77

Which type of wholesaler sells primarily to manufacturers rather than to retailers?

A) wholesale merchants
B) industrial distributors
C) cash-and-carry wholesalers
D) rack jobbers
E) drop shippers

Question 78

Which type of limited-service wholesaler is owned by farmers who assemble farm produce to sell in local markets?

A) cash-and-carry wholesaler
B) drop shipper
C) rack jobber
D) producer's cooperative
E) truck jobber

Question 79

7-Eleven has recently begun to redesign and restock its stores to offer a more upscale environment and products,such as house wines and fresh foods.7-Eleven has changed its ________.

A) positioning
B) wholesaler
C) service level
D) size
E) relative prices

Question 80

A(n)________ brings buyers and sellers together and assists in negotiations.

A) agent
B) broker
C) retailer
D) wholesaler
E) retail convergence