Question 1

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

Accepted Answer

The text states that large and progressive wholesalers have successfully reacted to rising costs by investing in information technology systems.

Question 2

Wholesalers fall into three major groups: merchant wholesalers, brokers and agents, and megawholesalers.

Accepted Answer

Wholesalers typically fall into two major groups: merchant wholesalers and brokers and agents. Megawholesalers is not a commonly recognized category in the classification of wholesalers.

Question 3

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

Accepted Answer

Specialty stores often focus on offering unique and specialized products that may not be available in other retail stores. As a result, pricing decisions of specialty stores are typically based on high markups on a low volume of products. This allows the store to maintain its uniqueness and exclusivity while also generating enough revenue to cover its operating costs.

Question 4

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

Accepted Answer

This is the transportation function of wholesalers, which involves physically moving and delivering products to customers. Wholesalers often have distribution centers located closer to buyers than producers, which allows for quicker delivery times.

Question 5

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.

Accepted Answer

Casey's practices everyday low pricing, which means they offer low prices consistently rather than relying on occasional discounts or sales.

Question 6

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

Accepted Answer

The retailer's product assortment needs to be distinguishable and needs to meet target shoppers' expectations to attract and retain customers.

Question 7

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?

Accepted Answer

Wayne Wholesaling is primarily concerned with providing management services and advice to retailers, such as training salespeople and improving store layouts, which falls under the category of management services.

Question 8

The rise of megaretailers has shifted the balance of power between retailers and producers. Since megaretailers have access to numerous consumers, they have significant power when dealing with manufacturers.

Accepted Answer

Megaretailers have significant power over manufacturers due to their wide access to consumers.

Question 9

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 ________.

Accepted Answer

Carleese is setting up temporary boutiques, which are commonly known as pop-up stores. These stores are designed to create a sense of urgency and exclusivity, as they are only available for a limited time.

Question 10

Grace and her fiancé visit several furniture stores in and around their hometown of Milwaukee. They use their smartphones to capture information about manufacturers and pricing, and ultimately decide to purchase their favorite items online. This is referred to as ________.

Accepted Answer

Showrooming is the practice of visiting brick-and-mortar stores to examine merchandise firsthand but then purchasing the merchandise online. In this scenario, Grace and her fiancé visit furniture stores in person but ultimately decide to purchase their favorite items online, which is an example of showrooming.

Question 11

Posco, a limited-service retail chain with 130 stores across the country, is seeking to improve its standing in the market. Since its operations are widespread, altering the store atmosphere significantly is not feasible because of the costs involved. Similarly, upgrading the stores to full-service retail chains would require a large investment of time, effort, and employee training. Assuming that many of Posco's private-label brands are bringing in large revenues, what strategy could Posco Retail use to differentiate itself while matching target shoppers' expectations?

Accepted Answer

The answer of Posco, a limited-service retail chain with 130...

Question 12

Amex Retail, the country's largest and oldest retail chain, was recently recognized as one of the most influential companies in the United States. The company aims to capitalize on this opportunity by implementing major marketing activities to capture the attention of consumers, politicians, and environmentalists. The company was one of the first to do away with plastic bags, and the public relations division is contemplating the adoption of additional green retailing practices. Would this move reflect sound business tactics? What other measures can Amex Retail take in this direction?

Accepted Answer

The answer of Amex Retail, the country's largest and oldest...

Question 13

Describe the promotion tools used by retailers.

Accepted Answer

The answer of Describe the promotion tools used by retailers....

Question 14

Differentiate between power centers and lifestyle centers.

Accepted Answer

The answer of Differentiate between power centers and lifestyle centers....

Question 15

Retail convergence most likely leads to ________.

Accepted Answer

Retail convergence refers to the tendency of retailers from different categories to sell similar products in order to attract a broader range of customers. This often leads to reduced differentiation among products and services, as retailers may end up offering similar items in terms of quality, price, and features. As a result, customers may find it harder to distinguish between different brands and choose between them.

Question 16

Which of the following is an impact of the Great Recession on retailing trends?

Accepted Answer

The Great Recession led to tighter consumer spending patterns as people became more cautious with their money and prioritized their spending.

Answer: D
 As a result of tighter consumer spending patterns during the Great Recession, retail life cycles became longer as people held onto their products for a longer period of time. This meant retailers had to adapt to this trend and adjust their strategies accordingly.

Therefore, the correct choices are C and D.

Question 17

Electronics Storage is a wholesaler that holds inventories, thereby reducing carrying costs and risks for both suppliers and customers. Which channel function does Electronics Storage primarily provide?

Accepted Answer

Electronics Storage primarily provides the function of warehousing, where they hold inventories and reduce carrying costs and risks for both suppliers and customers.

Question 18

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

Accepted Answer

Wholesaling refers to the selling of goods and services to those who buy them for resale or business use, which includes all activities involved in selling these products. Sole sourcing, franchising, crowdsourcing, and showrooming do not necessarily involve selling goods and services to those buying for resale or business use.

Question 19

Three types of shopping centers are regional shopping centers, community shopping centers, and neighborhood shopping centers or strip malls. Describe how they differ from each other.

Accepted Answer

The answer of Three types of shopping centers are regional...

Question 20

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

Accepted Answer

Selling and promoting is demonstrated when a wholesaler's sales force helps a manufacturer reach many small customers at a low cost. This function involves promoting the manufacturer's products and selling them to retailers or other customers. It helps the manufacturer reach a larger customer base and increase sales without having to incur the cost of a dedicated sales force.

Quiz 11: Retailing and Wholesaling