Question 1

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

Accepted Answer

Wholesalers buy in bulk from producers and sell in smaller quantities to retailers and industrial consumers. Warehouse clubs and factory outlets sell directly to consumers, discount stores sell directly to consumers and sometimes buy from wholesalers, and megaretailers may buy directly from producers or use a combination of wholesalers and direct purchasing.

Question 2

Touch-screen kiosks, handheld shopping assistants, interactive dressing-room mirrors and virtual sales associates are all examples of how retailers use technology to ________.

Accepted Answer

These technological tools are used to enhance the customer shopping experience and provide more personalized and interactive experiences, which aligns with meeting consumers' expectations.

Question 3

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

Accepted Answer

The answer of A ________ contains between 15 and 50...

Question 4

Which term refers to looking at merchandise at a traditional store and then purchasing the merchandise online?

Accepted Answer

Showrooming is the act of examining merchandise in a traditional store and then buying it from an online retailer, usually at a lower price.

Question 5

Neighborhood shopping centers are also known as ________.

Accepted Answer

Neighborhood shopping centers are also known as strip malls, as they typically consist of a small group of stores connected by a common walkway or parking area. Power centers are larger outdoor shopping centers, lifestyle centers focus on high-end retail and dining experiences, warehouse clubs are membership-based stores, and regional shopping centers are large malls with many anchor stores and a wide variety of retailers.

Question 6

Most shopping centers are ________.

Accepted Answer

The answer of Most shopping centers are ________.
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Question 7

________ is known as the merging of consumers, products, prices, and retailers.

Accepted Answer

Retail convergence refers to the process of coming together of different retailers, products, prices and consumers. It can also refer to the merging of physical stores and online shopping channels.

Question 8

A ________ contains from 50 to 100 stores, is like a covered mini-downtown, and attracts customers from a wide area.

Accepted Answer

A regional shopping center typically contains 50 to 100 stores and attracts customers from a wider area than a neighborhood shopping center or strip mall. It is also often enclosed and designed to resemble a mini-downtown. Community shopping centers are smaller than regional ones and may serve a specific geographic area, while a central business district typically has a mix of retail, office, and other commercial uses.

Question 9

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

Accepted Answer

This is an example of the transportation function of wholesalers, as they are able to provide quicker and more efficient delivery due to their proximity to buyers.

Question 10

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

Accepted Answer

Selling and promoting is the function where the wholesaler helps the manufacturer to reach many small customers at a low cost through their sales force. This function involves promoting the product, persuading customers to buy it, and negotiating terms of sale. The other options do not directly relate to this function.

Question 11

A ________ generally contains between 5 and 15 stores. It is close and convenient for consumers, usually contains a supermarket, perhaps a discount store, and several service stores such as dry cleaner, drugstore, and hardware store.

Accepted Answer

A neighborhood shopping center fits the description given in the question, with a smaller number of stores and a focus on convenient, everyday needs. Regional shopping centers are larger and offer a wider range of shopping and entertainment options, while warehouse clubs and factory outlets are focused on bulk goods or discounted retail, respectively. A community shopping center may or may not fit the description depending on its size and offerings.

Question 12

A small, open-air mall with upscale stores, convenient locations, and nonretail activities, such as a playground, skating rink, hotel, dining establishments, and a movie theater, is an example of a(n) ________.

Accepted Answer

A lifestyle center is a small, open-air mall that caters to upscale customers and offers nonretail activities in addition to high-end stores. It is designed to create a unique shopping and entertainment experience for customers. Regional shopping centers, community shopping centers, and power centers typically focus primarily on retail shopping, while franchises are a type of business ownership model.

Question 13

Which of the following wholesaler's channel functions is demonstrated when a wholesaler holds inventories and thereby reduces inventory holding costs and risks of suppliers and customers ?

Accepted Answer

The function of holding inventories and reducing inventory holding costs and risks is a warehousing function.

Question 14

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

Accepted Answer

Off-price retailing (selling goods below the regular retail price) is not a typical channel function of a wholesaler, whereas financing, risk bearing, transportation, and bulk breaking are common functions.

Question 15

Target recently opened temporary shops to celebrate limited-run collections by Jason Wu in Toronto and Missoni in New York. These temporary shops are examples of ________

Accepted Answer

The temporary shops opened by Target are examples of pop-up stores, which are temporary retail spaces that are set up to capitalize on a trend or event. In this case, Target set up the temporary shops to promote limited-run collections by Jason Wu and Missoni.

Question 16

According to the concept of ________, new retailing forms often begin as low-margin, low-price, low-status operations to challenge established retailers. Such retailers then become successful, and eventually become like the conventional retailers they replaced.

Accepted Answer

The concept described in the question is known as the wheel-of-retailing. This theory suggests that new retailing forms often begin as low-margin, low-price, low-status operations to challenge established retailers. As these new retailers become successful, they add more services and improve their facilities, eventually becoming like the conventional retailers they replaced. This process continues as new low-status retailers challenge the improved retailers, and the cycle repeats itself.

Question 17

________ are huge unenclosed shopping centers consisting of a long strip of retail stores, including at least one large, freestanding anchor store like Walmart. Each store has its own entrance with parking directly in front for shoppers who wish to visit only one store.

Accepted Answer

The description matches that of a power center, which is a type of shopping center consisting of a long strip of retail stores, including at least one large, freestanding anchor store like Walmart, and each store has its own entrance with parking directly in front for shoppers who wish to visit only one store.

Question 18

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

Accepted Answer

Wholesaling refers to the selling of goods and services to those who buy for resale or business use. This involves activities such as bulk buying, assembling, and distribution to retailers or business customers. Retailing, on the other hand, is the selling of goods and services directly to consumers for personal consumption. Franchising refers to a business model where a company (franchisor) grants the right to use its brand name and business model to independent business owners (franchisees). Discounting is the offering of lower prices to customers as a strategy to attract sales, while showrooming is the act of checking out products in a physical store before buying them online.

Question 19

With their size and buying power, ________ can offer better merchandise selections, good service, and strong price savings to consumers.

Accepted Answer

Megaretailers are known for their large size and strong buying power, which allows them to offer a wider selection of merchandise, good service, and competitive prices to consumers. Convenience stores, franchises, power centers, and lifestyle centers may also offer some of these benefits, but none of them are as well-suited to do so as megaretailers.

Question 20

Many retailers are now experimenting with limited-time shops that let them promote their brands to seasonal shoppers and create buzz in busy areas. Which of the following terms best represents such shops?

Accepted Answer

Pop-up stores are temporary retail spaces that are set up for a limited period of time, often for a season or a specific event, to promote a brand, test a new market, or create a sense of urgency among shoppers. They are often located in busy areas such as shopping districts, malls, or public spaces, and can be used to generate buzz, build customer engagement, and test new products or services. Unlike traditional stores, pop-up stores are designed to be low-cost, low-risk, and flexible, allowing retailers to experiment with new ideas and reach new audiences without committing to a long-term lease or investment.

Quiz 13: Retailing and Wholesaling