Question 1

Which type of retail ownership is owned and operated by an individual but is licensed by a larger supporting organization?

Accepted Answer

This describes a franchise.

Question 2

Around the world,most retailers are _____,operating one or a few stores in their community,owned by a single person or partnership and not operated as part of a larger retail institution.

Accepted Answer

Independent retail outlets are owned by a single person or partnership and not operated as part of a larger retail institution.

Question 3

_____ is the joint effort of all channel members to create a channel that serves customers and creates a competitive advantage.

Accepted Answer

This is the definition of channel partnering,which is also called channel cooperation.

Question 4

Paul operates Kayak.com,a company that allows customers to efficiently search company databases and find the best airline and hotel deals all over the Web.Kayak does not make bookings but rather provides recommendations for the best travel plans.Travel providers pay Kayak a commission for most customers who click through to their sites.Paul wants his users to have as short and sweet an experience on Kayak as possible.Time is of the essence in responding to any customer question,especially in this day where airfare can increase dramatically in just a couple of hours.Paul is devoted to:

Accepted Answer

The Internet is an alternative channel for delivering these deals.Kayak is a service organization.

Question 5

Which of the following intermediaries sell mainly to consumers?

Accepted Answer

Retailers are firms that sell mainly to consumers.

Question 6

Each department in a department store is usually treated as a different _____ center and central management sets broad policies about the types of merchandise carried and prices.

Accepted Answer

Each department in a department store is treated as a separate buying center

Question 7

Which of the following statements about specialty stores is true?

Accepted Answer

Customers usually consider price to be of secondary importance in their selection of a specialty store.Customers at specialty stores are very concerned with the distinctiveness of the merchandise or the store's physical appearance.Specialty stores provide a low-risk testing ground for new products.A typical specialty store carries a narrower assortment of specialty merchandise than department stores.

Question 8

Horizontal channel conflict occurs most often when manufacturers practice:

Accepted Answer

Horizontal conflict occurs when more than one channel is used to handle the same brand.

Question 9

_____ is defined as all activities directly related to the sale of goods and services to the ultimate consumer for personal,nonbusiness use or consumption.

Accepted Answer

This is the definition of retailing.

Question 10

James wants to open a small store that caters to the model railroad hobbyist.The store would sell model trains,scenery,accessories,and books on the subject of model railroading.Which of the following types of stores would most likely support an effective launch of his business idea?

Accepted Answer

Specialty stores specialize in a given type of merchandise.

Question 11

Housing several departments under one roof,a _____ carries a wide variety of shopping and specialty goods,including apparel,cosmetics,housewares,electronics,and sometimes furniture.

Accepted Answer

Department stores house several departments under one roof.

Question 12

Channel conflict that occurs between different levels in a marketing channel is referred to as:

Accepted Answer

This describes vertical conflict,which typically occurs between the manufacturer and wholesaler or between the manufacturer and retailer.

Question 13

The number of different varieties of fishing lures carried by the Angler's Store refers to the store's:

Accepted Answer

Breadth and depth refers to product assortment.

Question 14

You are responsible for physical distribution of your company's service and should focus on:

Accepted Answer

Service industries are customer oriented and must manage intangible services by minimizing wait times,managing service capacity,improving service delivery,and establishing channel-wide network coherence.

Question 15

Jim's Bike Shop sells bicycles for the serious racer to the casual cyclist.Jim's also sells biking gear and clothing. Jim is the sole owner of the store,so in terms of ownership,his store would be classified as a(n):

Accepted Answer

Independent retailer stores are owned by a single person or partnership and not operated as part of a larger retail institution.

Question 16

_____ shows how much the retailer makes as a percentage of sales after the cost of goods sold is subtracted.

Accepted Answer

This is the definition of gross margin.

Question 17

Retail establishments are generally classified according to all of the following EXCEPT:

Accepted Answer

The four elements used to classify retail establishments are its ownership,level of service,product assortment,and price.

Question 18

Fairway is a chain of retail outlets in Iowa,Minnesota,Nebraska,and Illinois that are described as large,departmentalized,self-service stores that specialize in food and limited nonfood items.Fairway stores are:

Accepted Answer

The key factors are the emphasis on food and the size of the stores.

Question 19

Which type of retail store specializes in a given type of merchandise?

Accepted Answer

This is the definition of a specialty store.

Question 20

A Target store is an example of a(n):

Accepted Answer