Question 1

Markdowns can be used to

Accepted Answer

A)  increase competition with other retailers in the immediate vicinity.
B)  placate dissatisfied customers.
C)  enhance customer perceptions of product quality.
D)  increase demand for complementary products.
E)  create a sense of urgency among repeat buyers.F) C) and D)
G) A) and B)

Question 2

Drop shippers

Accepted Answer

A)  own the merchandise they sell but do not physically handle,stock,or deliver it.
B)  perform all channel functions,and sell on consignment to retailers.
C)  take title to merchandise but sell only to buyers who call on them,pay cash for merchandise,and furnish their own transportation for merchandise.
D)  have a small warehouse from which they stock their trucks for distribution to retailers.
E)  work for several producers and carry noncompetitive,complementary merchandise in an exclusive territory.F) None of the above
G) A) and D)

Question 3

QVC is a television home shopping network.It generates sales of more than $8 billion from its 70 million customers by

Accepted Answer

A)  restricting purchases only through its Mall of America studio.
B)  broadcasting live twelve hours a day 365 days a year.
C)  offering more than 1,150 products each week.
D)  offering overstocked items from retailers at a fraction of the original cost.
E)  running live podcasts and live streaming over the InternetF) A) and D)
G) B) and E)

Question 4

A business in Kansas City,Missouri,looking to rent office space should use a(n) __________ to help it locate the most suitable space at the best possible rate.

Accepted Answer

A)  selling agent
B)  manufacturer's representative
C)  manufacturer's agent
D)  administrator
E)  brokerF) B) and C)
G) C) and E)

Question 5

A department store recently replaced its fabric-covered chairs with oversized leather couches.This was most likely done to

Accepted Answer

A)  reduce the need to constantly reupholster.
B)  create a sense of a more natural environment.
C)  create a more masculine ambiance for male shoppers.
D)  make mothers shopping with small children less nervous.
E)  encourage customers to linger longer.F) None of the above
G) A) and D)

Question 6

A limited-service wholesaler who performs all channel functions and sells on consignment to retailers,which means it retains the title to the products displayed and bills retailers only for the merchandise sold,is a _________.

Accepted Answer

A)  truck jobber
B)  transport vendor
C)  rack jobber
D)  cash and carry wholesaler
E)  drop shipperF) A) and D)
G) B) and E)

Question 7

Usage of specialty catalogs,like those from firms like IKEA,Crate and Barrel,and L.L.Bean have been affected by all of the following factors EXCEPT:

Accepted Answer

A)  influence of larger retailers as their marketing activities have increased the number and variety of products consumers purchase through direct mail and catalogs.
B)  higher paper costs,an increase in postage rates,and the possibility of the U.S.Postal Service reducing delivery to five days a week.
C)  the growing interest in do-not-mail legislation.
D)  the concern for "green" mailings and catalogs.
E)  the growing influence of television home catalog shopping where consumers view the products they're interested in and then order those they want over the telephone.F) C) and E)
G) All of the above

Question 8

Vending machines are popular with consumers;recent consumer satisfaction research indicates that __________ percent of consumers believe purchasing from a vending machine is equal to or superior to a store purchase.

Accepted Answer

A)  15
B)  27
C)  49
D)  63
E)  82F) C) and D)
G) A) and B)

Question 9

Outlets such as the Checkers Drive-In Restaurant (see the photo above) ,typically enter the wheel of retailing as

Accepted Answer

A)  low status,low-margin stores.
B)  high status,high-margin stores.
C)  moderate status,low-margin stores.
D)  high price,high-margin stores.
E)  mixed price,mixed status stores.F) C) and E)
G) B) and C)

Question 10

According to Figure 16-9 above,"A" represents the stage in the wheel of retailing when a retail outlet starts with

Accepted Answer

A)  low prices,high margins,and high status.
B)  mixed prices,mixed margins,and mixed status.
C)  low prices,low margins,and low status.
D)  moderate prices,high margins,and high status.
E)  high prices,low margins,and mixed status.F) B) and C)
G) A) and B)

Question 11

Cash and carry wholesalers refer to wholesalers who

Accepted Answer

A)  furnish the racks or shelves that display merchandise in retail stores,perform all channel functions,and sell on consignment to retailers.
B)  take title to merchandise but sell only to buyers who call on them,pay cash for merchandise,and furnish their own transportation for merchandise.
C)  own the merchandise they sell but do not physically handle,stock,or deliver it.
D)  have a small warehouse from which they stock their trucks for distribution to retailers.
E)  work for several producers and carry noncompetitive,complementary merchandise in an exclusive territory.F) B) and D)
G) A) and E)

Question 12

In the retail life cycle,__________ is the stage of emergence of a retail outlet,with a sharp departure from existing competition.

Accepted Answer

A)  decline
B)  maturity
C)  introduction
D)  early growth
E)  accelerated developmentF) A) and C)
G) A) and B)

Question 13

Aeon,Carrefour,Tesco,and Metro Group are

Accepted Answer

A)  sizeable wholesalers that handle products for the world's largest retailers.
B)  new Internet start-ups that have the potential to impact the U.S.economy.
C)  large retailers outside of the United States.
D)  large distributors of business products.
E)  historic companies that developed consumer selling systems,though none of them exist today.F) C) and D)
G) All of the above

Question 14

Figure 16-9 above shows the wheel of retailing,which indicates that retail outlets typically go through changes with the passage of time.What characteristics in the wheel of retailing does "B" represent?

Accepted Answer

A)  low prices,low margins,low status.
B)  higher prices,higher margins,and higher status.
C)  low prices,high margins,and high status.
D)  stable prices,low margins,and stable status.
E)  moderate prices,high margins,and high status.F) C) and D)
G) B) and E)

Question 15

According to Figure 16-10 above,"D" represents which stage of the retail life cycle?

Accepted Answer

A)  deceleration
B)  early growth
C)  accelerated development
D)  maturity
E)  declineF) A) and D)
G) None of the above

Question 16

Retailers that utilize and integrate a combination of traditional store formats and nonstore formats are referred to as __________.

Accepted Answer

A)  multichannel retailers
B)  scrambled merchandisers
C)  mixed-brand retailers
D)  dual distribution retailers
E)  mixed-channel retailersF) A) and C)
G) A) and E)

Question 17

McDonald's,Radio Shack,and Subway are examples of __________.

Accepted Answer

A)  product-distribution franchises
B)  business franchise venture
C)  business-format franchises
D)  manufacturing franchises
E)  general service franchiseF) A) and D)
G) A) and E)

Question 18

In the telemarketing industry,issues such as __________,ethical guidelines,and industry standards have become a topic of discussion among consumers,Congress,the Federal Trade Commission (FTC) ,and businesses.

Accepted Answer

A)  competitive antics
B)  coercion tactics
C)  freedom of speech
D)  language issues
E)  consumer privacyF) A) and E)
G) B) and D)

Question 19

The __________ provided by retailers create value for consumers.

Accepted Answer

A)  utilities
B)  wholesaling functions
C)  outsourcing
D)  profits
E)  synergiesF) C) and D)
G) B) and E)

Question 20

Target recently introduced its Target REDcard,where cardholders receive 5% back for each purchase.Target also allows customers to return merchandise within 30 days but still does not offer alteration services.Target offers what level of service to its customers?

Accepted Answer

A)  full-service
B)  self-service
C)  automated-service
D)  limited-service
E)  customized serviceF) C) and E)
G) C) and D)

Exam 16: Retailing and Wholesaling

In the retail life cycle,__________ is the stage of emergence of a retail outlet,with a sharp departure from existing competition.

Correct AnswerverifiedShow Answer

A limited-service wholesaler who performs all channel functions and sells on consignment to retailers,which means it retains the title to the products displayed and bills retailers only for the merchandise sold,is a _________.

Correct AnswerverifiedShow Answer

According to Figure 16-10 above,"D" represents which stage of the retail life cycle?

Correct AnswerverifiedShow Answer

The __________ provided by retailers create value for consumers.

Correct AnswerverifiedShow Answer

McDonald's,Radio Shack,and Subway are examples of __________.

Correct AnswerverifiedShow Answer

Aeon,Carrefour,Tesco,and Metro Group are

Correct AnswerverifiedShow Answer

A department store recently replaced its fabric-covered chairs with oversized leather couches.This was most likely done to

Correct AnswerverifiedShow Answer

Figure 16-9 above shows the wheel of retailing,which indicates that retail outlets typically go through changes with the passage of time.What characteristics in the wheel of retailing does "B" represent?

Correct AnswerverifiedShow Answer

Cash and carry wholesalers refer to wholesalers who

Correct AnswerverifiedShow Answer

A business in Kansas City,Missouri,looking to rent office space should use a(n) __________ to help it locate the most suitable space at the best possible rate.

Correct AnswerverifiedShow Answer

QVC is a television home shopping network.It generates sales of more than $8 billion from its 70 million customers by

Correct AnswerverifiedShow Answer

In the telemarketing industry,issues such as __________,ethical guidelines,and industry standards have become a topic of discussion among consumers,Congress,the Federal Trade Commission (FTC) ,and businesses.

Correct AnswerverifiedShow Answer

Retailers that utilize and integrate a combination of traditional store formats and nonstore formats are referred to as __________.

Correct AnswerverifiedShow Answer

Drop shippers

Correct AnswerverifiedShow Answer

Markdowns can be used to

Correct AnswerverifiedShow Answer

Usage of specialty catalogs,like those from firms like IKEA,Crate and Barrel,and L.L.Bean have been affected by all of the following factors EXCEPT:

Correct AnswerverifiedShow Answer

Vending machines are popular with consumers;recent consumer satisfaction research indicates that __________ percent of consumers believe purchasing from a vending machine is equal to or superior to a store purchase.

Correct AnswerverifiedShow Answer

According to Figure 16-9 above,"A" represents the stage in the wheel of retailing when a retail outlet starts with

Correct AnswerverifiedShow Answer

Target recently introduced its Target REDcard,where cardholders receive 5% back for each purchase.Target also allows customers to return merchandise within 30 days but still does not offer alteration services.Target offers what level of service to its customers?

Correct AnswerverifiedShow Answer

Outlets such as the Checkers Drive-In Restaurant (see the photo above) ,typically enter the wheel of retailing as

Correct AnswerverifiedShow Answer

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