Question 1

The retailing mix includes all of the following except which?

Accepted Answer

A)   merchandise
B)   target market
C)   retail pricing
D)   store location
E)   retail communicationF) A) and C)
G) A) and E)

Question 2

As a franchisor, 7-Eleven would assist a franchisee in selecting the store location, setting up the store, advertising, and

Accepted Answer

A)   developing the marketing program.
B)   training personnel.
C)   offering performance bonuses.
D)   ordering and restocking inventory.
E)   paying insurance and legal fees.F) D) and E)
G) A) and D)

Question 3

QVC is a television home shopping network. It generates sales of more than $8 billion from its 60 million customers by

Accepted Answer

A)   directing customers to purchase through its Mall of America retail store.
B)   broadcasting live 12 hours a day 365 days a year.
C)   offering more than 770 products each week on a 24-hour-a-day broadcast.
D)   offering overstocked items from retailers at a fraction of the original cost.
E)   running live podcasts and live streaming over the Internet.F) A) and D)
G) B) and D)

Question 4

Briefly describe the two general types of franchises.

Accepted Answer

Franchises can be classified in two gene...

Question 5

A common financial indicator of how effectively retail space is used to generate revenue can be calculated by determining

Accepted Answer

A)   net sales.
B)   markdown percentage.
C)   market share.
D)   sales per square foot.
E)   transactions per customer.F) B) and E)
G) B) and C)

Question 6

Which of the following statements best describes the key difference between merchant wholesalers and agents and brokers?

Accepted Answer

A)   Merchant wholesalers don't perform all channel functions, whereas agents and brokers do.
B)   Agents and brokers only deal with consumer channels.
C)   Agents and brokers make their profits based on the sales of merchandise they own, while merchant wholesalers make profits based on fees paid for their services.
D)   Merchant wholesalers take title to merchandise, whereas agents and brokers do not.
E)   Agents and brokers take title to merchandise, whereas merchant wholesalers do not.F) C) and D)
G) C) and E)

Question 7

Consumers benefit in dealing with retail corporate chains because

Accepted Answer

A)   corporate chains have more experience than other forms of retailers.
B)   consumers can own stock in the same company where they shop since corporate chain stock must be publicly traded.
C)   chains can bargain with a manufacturer to obtain product volume discounts on orders, which can be passed on to consumers in terms of lower prices.
D)   there are multiple outlets, each with its own varied merchandise and different management policies.
E)   merchandise is arranged and displayed by professional designers making their shopping experience less stressful.F) A) and E)
G) None of the above

Question 8

A strip mall is a

Accepted Answer

A)   suburban mall containing up to 100 stores that draws customer from a 5- to 10-mile radius.
B)   cluster of stores in a downtown area.
C)   retail location that typically has one primary store (usually a department store branch)  with 20 to 40 smaller outlets serving a population of consumers who are within a 10- to 20-minute drive.
D)   cluster of neighborhood stores designed to serve people within a 5- to 10-minute drive.
E)   collection of category killers usually located outside a major amusement park or attraction.F) B) and E)
G) B) and D)

Question 9

Bloomingdale's stores are part of the Macy's

Accepted Answer

A)   corporate chain.
B)   consumer cooperative.
C)   contractual system.
D)   retail conglomerate.
E)   administered system.F) A) and B)
G) C) and E)

Question 10

The battle for market share is usually fought directly before the ________ stage, and some competitors drop out of the market.

Accepted Answer

A)   decline
B)   growth
C)   maturity
D)   harvest
E)   introduction phaseF) B) and C)
G) B) and D)

Question 11

Vending machines are no longer limited by the need for cash. In Japan, South Korea, and the Philippines, consumers use mobile phones that transmit payments to vending machines wirelessly. This is an example of how vending machines can provide which type of utility?

Accepted Answer

A)   time
B)   place
C)   possession
D)   product
E)   formF) A) and E)
G) A) and B)

Question 12

Specialty merchandise wholesalers

Accepted Answer

A)   carry a broad assortment of merchandise and perform all channel functions.
B)   own the merchandise they sell but do not physically handle, stock, or deliver it.
C)   offer a relatively narrow range of products but have an extensive assortment within the product lines carried.
D)   work for several producers, carry noncompetitive, complementary merchandise in an exclusive territory, and use over-the-road transportation for all product deliveries.
E)   deal exclusively with small low-cost consumer goods that are distributed to a select number of large retail chains.F) A) and E)
G) A) and B)

Question 13

When setting prices for merchandise, retailers must decide on the markup, the markdown, and the ________ for markdowns.

Accepted Answer

A)   relevance
B)   necessity
C)   percentage
D)   timing
E)   consequenceF) A) and B)
G) None of the above

Question 14

Research shows that the caliber and kind of ________ delivered by retailers is a major source of retailer differentiation.

Accepted Answer

A)   communication management
B)   psychographic rewards
C)   distribution pattern
D)   in-store promotional appeal
E)   shopping experienceF) B) and E)
G) A) and B)

Question 15

Multichannel retailers are retailers that

Accepted Answer

A)   sell different products through entirely different channels.
B)   sell through different channels under different brand names.
C)   utilize strategic and tactical wholesalers.
D)   utilize and integrate a combination of traditional store formats and nonstore formats.
E)   combine two channels for their offerings: one for products and the other for services.F) D) and E)
G) A) and D)

Question 16

The marketing metrics related to a retailer's customers include all of the following except which?

Accepted Answer

A)   the number of customers per day or per hour
B)   the average length of a store visit
C)   markdown percentage
D)   the average transaction size per customer
E)   the number of transactions per customerF) All of the above
G) None of the above

Question 17

Stores like Dillard's, Macy's, and Neiman Marcus carry a wide range of different types of products but not an extensive number of items within each type. These retailers are known as

Accepted Answer

A)   limited-line stores.
B)   scrambled merchandise stores.
C)   hypermarkets.
D)   intertype outlets.
E)   general merchandise stores.F) C) and E)
G) All of the above

Question 18

Briefly describe the three levels of service offered by retail outlets.

Accepted Answer

Retail outlets generally offer three lev...

Question 19

Kohl's is a moderately priced retailer that sells name-brand fashions and home goods. A few salespeople are available in the jewelry department, but customers are responsible for most of their shopping activities. Kohl's provides its consumers with

Accepted Answer

A)   full service.
B)   limited service.
C)   self-service.
D)   restricted service.
E)   functional service.F) A) and B)
G) C) and E)

Question 20

All of the following are advantages of online shopping except which?

Accepted Answer

A)   personal contact
B)   24-hour access
C)   the ability to comparison shop
D)   in-home privacy
E)   varietyF) C) and D)
G) A) and B)

Exam 13: Retailing and Wholesaling

Specialty merchandise wholesalers

Correct AnswerverifiedShow Answer

Bloomingdale's stores are part of the Macy's

Correct AnswerverifiedShow Answer

Kohl's is a moderately priced retailer that sells name-brand fashions and home goods. A few salespeople are available in the jewelry department, but customers are responsible for most of their shopping activities. Kohl's provides its consumers with

Correct AnswerverifiedShow Answer

The battle for market share is usually fought directly before the ________ stage, and some competitors drop out of the market.

Correct AnswerverifiedShow Answer

Briefly describe the three levels of service offered by retail outlets.

Correct AnswerverifiedRetail outlets generally offer three lev...View AnswerShow Answer

Stores like Dillard's, Macy's, and Neiman Marcus carry a wide range of different types of products but not an extensive number of items within each type. These retailers are known as

Correct AnswerverifiedShow Answer

A strip mall is a

Correct AnswerverifiedShow Answer

Research shows that the caliber and kind of ________ delivered by retailers is a major source of retailer differentiation.

Correct AnswerverifiedShow Answer

As a franchisor, 7-Eleven would assist a franchisee in selecting the store location, setting up the store, advertising, and

Correct AnswerverifiedShow Answer

Briefly describe the two general types of franchises.

Correct AnswerverifiedFranchises can be classified in two gene...View AnswerShow Answer

All of the following are advantages of online shopping except which?

Correct AnswerverifiedShow Answer

QVC is a television home shopping network. It generates sales of more than $8 billion from its 60 million customers by

Correct AnswerverifiedShow Answer

Which of the following statements best describes the key difference between merchant wholesalers and agents and brokers?

Correct AnswerverifiedShow Answer

Consumers benefit in dealing with retail corporate chains because

Correct AnswerverifiedShow Answer

Vending machines are no longer limited by the need for cash. In Japan, South Korea, and the Philippines, consumers use mobile phones that transmit payments to vending machines wirelessly. This is an example of how vending machines can provide which type of utility?

Correct AnswerverifiedShow Answer

When setting prices for merchandise, retailers must decide on the markup, the markdown, and the ________ for markdowns.

Correct AnswerverifiedShow Answer

The marketing metrics related to a retailer's customers include all of the following except which?

Correct AnswerverifiedShow Answer

A common financial indicator of how effectively retail space is used to generate revenue can be calculated by determining

Correct AnswerverifiedShow Answer

The retailing mix includes all of the following except which?

Correct AnswerverifiedShow Answer

Multichannel retailers are retailers that

Correct AnswerverifiedShow Answer

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Retail outlets generally offer three lev...
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Franchises can be classified in two gene...
View Answer

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