Question 1

"Pop-up" stores let retailers promote brands to seasonal shoppers for a limited time.

Accepted Answer

A) True 
 B)False

Question 2

Supercenters retail grocery items as well as a huge selection of nonfood merchandise.

Accepted Answer

A) True 
 B)False

Question 3

________ are unbranded,plainly packaged,less expensive versions of common products such as soy sauce,paper towels,and canned fruits.

Accepted Answer

A) Generics 
B) National brands 
C) Franchisees 
D) Copy-cat brands 
E) Private labels 
A) Generics 
B) National brands 
C) Franchisees 
D) Copy-cat brands 
E) Private labels

Question 4

Mal's father and grandfather ran Reynold's,a general store.When Mal inherited the store,the town was expanding rapidly and a number of multinational franchisors showed interest in entering the town.Mal wants to turn Reynold's into a franchise of Blue Sun,a fast-food chain.What benefits can Mal gain from this move?

Accepted Answer

Student answers may vary.
As the franchi

Question 5

Which of the following is true for franchisees?

Accepted Answer

A) The franchisee is paid by the franchisor to be part of the franchise system. 
B) The franchisee licenses a trade mark to the franchisor. 
C) The franchisee must change its operations to suit those of the franchisor's. 
D) The franchisee collects royalty payments from the franchisor. 
E) The franchisee owns the trade or service mark. 
A) The franchisee is paid by the franchisor to be part of the franchise system. 
B) The franchisee licenses a trade mark to the franchisor. 
C) The franchisee must change its operations to suit those of the franchisor's. 
D) The franchisee collects royalty payments from the franchisor. 
E) The franchisee owns the trade or service mark.

Question 6

An independent retailer using a central buying organization and joint promotion efforts with other retailers is part of a ________.

Accepted Answer

A) corporate chain store 
B) voluntary chain 
C) retailer cooperative 
D) merchandising conglomerate 
E) franchise organization 
A) corporate chain store 
B) voluntary chain 
C) retailer cooperative 
D) merchandising conglomerate 
E) franchise organization

Question 7

________ includes all the activities in selling goods or services to those who buy for resale or business use.

Accepted Answer

A) Retailing 
B) Wholesaling 
C) Procurement 
D) Promoting 
E) Warehousing 
A) Retailing 
B) Wholesaling 
C) Procurement 
D) Promoting 
E) Warehousing

Question 8

E&OE is looking to reduce its inventory costs for all its products.The company realizes that its inventory depends on the setup costs of its various products.How do setup costs affect E&OE's inventory costs?

Accepted Answer

As inventory draws down,management must

Question 9

In what ways does franchising benefit the franchisor? In what ways does it benefit the franchisee?

Accepted Answer

Franchising benefits both the franchisor

Question 10

________ refers to buying large carload lots and dividing them into smaller units before shipping them out to consumers.

Accepted Answer

A) Bulk breaking 
B) Containerization 
C) Wholesaling 
D) Warehousing 
E) Broking 
A) Bulk breaking 
B) Containerization 
C) Wholesaling 
D) Warehousing 
E) Broking

Question 11

A factory outlet is an example of a(n)________ retailer.

Accepted Answer

A) off-price 
B) specialty 
C) discount 
D) department 
E) catalog 
A) off-price 
B) specialty 
C) discount 
D) department 
E) catalog

Question 12

E&OE is trying to minimize its inventory costs,which are extremely high.The company has realized that it can achieve this by maintaining a near-zero inventory and producing only once a product is ordered.Which of the following will be true for E&OE?

Accepted Answer

A) Short production runs will be more expensive than longer ones. 
B) Setup and order-processing costs will be high. 
C) The order point will be high. 
D) Order-processing costs will be lower than the inventory-carrying costs. 
E) E&OE can reduce the average cost per unit by producing a long run. 
A) Short production runs will be more expensive than longer ones. 
B) Setup and order-processing costs will be high. 
C) The order point will be high. 
D) Order-processing costs will be lower than the inventory-carrying costs. 
E) E&OE can reduce the average cost per unit by producing a long run.

Question 13

ShoeZone is a shoe retailer with outlets across the country.The company is trying to reduce its inventory and warehousing costs,but needs to keep delivery speeds as short as possible.What can ShoeZone do to achieve this?

Accepted Answer

More stocking locations mean goods can b

Question 14

Which of the following is true for retailing?

Accepted Answer

A) Manufacturers are not considered to be retailers as they are engaged in producing the product. 
B) Vending machines are considered to be retailing only if they are located within stores. 
C) Retailing deals only with goods;it does not include services. 
D) Selling from a consumer's home is direct selling,but not retailing. 
E) Wholesalers are only considered to be retailers if they are selling to final consumers. 
A) Manufacturers are not considered to be retailers as they are engaged in producing the product. 
B) Vending machines are considered to be retailing only if they are located within stores. 
C) Retailing deals only with goods;it does not include services. 
D) Selling from a consumer's home is direct selling,but not retailing. 
E) Wholesalers are only considered to be retailers if they are selling to final consumers.

Question 15

Electronic shelf labeling allows retailers to ________.

Accepted Answer

A) check inventory levels instantaneously 
B) order electronically from suppliers 
C) run continual promotional messages 
D) advertise sales and special offers 
E) change price levels instantaneously 
A) check inventory levels instantaneously 
B) order electronically from suppliers 
C) run continual promotional messages 
D) advertise sales and special offers 
E) change price levels instantaneously

Question 16

Which of the following is true for direct product profitability analysis?

Accepted Answer

A) It is highly correlated with the gross margin on a product. 
B) It is negligible compared to the gross margin on a product. 
C) It bears little relation to the gross margin on a product. 
D) It is significantly lower than the gross margin on a product. 
E) It is exactly the same as the gross margin on a product. 
A) It is highly correlated with the gross margin on a product. 
B) It is negligible compared to the gross margin on a product. 
C) It bears little relation to the gross margin on a product. 
D) It is significantly lower than the gross margin on a product. 
E) It is exactly the same as the gross margin on a product.

Question 17

Order-processing costs must be compared with inventory-carrying costs because the larger the average stock carried,the higher the inventory-carrying costs.

Accepted Answer

A) True 
 B)False

Question 18

________ costs for a manufacturer consist of setup costs and running costs.

Accepted Answer

A) Inventory-carrying 
B) Containerization 
C) Wholesaling 
D) Order-processing 
E) Transportation 
A) Inventory-carrying 
B) Containerization 
C) Wholesaling 
D) Order-processing 
E) Transportation

Question 19

A franchise organization is a corporate retail organization.

Accepted Answer

A) True 
 B)False

Question 20

In the corporate headquarters of a supermarket chain,________ are responsible for developing brand assortments and listening to salespersons' presentations.

Accepted Answer

A) central buyers 
B) brokers 
C) specialist buyers 
D) agents 
E) specialized wholesalers 
A) central buyers 
B) brokers 
C) specialist buyers 
D) agents 
E) specialized wholesalers

Exam 16: Managing Retailing,wholesaling,and Logistics

"Pop-up" stores let retailers promote brands to seasonal shoppers for a limited time.

Supercenters retail grocery items as well as a huge selection of nonfood merchandise.

________ are unbranded,plainly packaged,less expensive versions of common products such as soy sauce,paper towels,and canned fruits.

Which of the following is true for franchisees?

An independent retailer using a central buying organization and joint promotion efforts with other retailers is part of a ________.

________ includes all the activities in selling goods or services to those who buy for resale or business use.

E&OE is looking to reduce its inventory costs for all its products.The company realizes that its inventory depends on the setup costs of its various products.How do setup costs affect E&OE's inventory costs?

In what ways does franchising benefit the franchisor? In what ways does it benefit the franchisee?

________ refers to buying large carload lots and dividing them into smaller units before shipping them out to consumers.

A factory outlet is an example of a(n)________ retailer.

E&OE is trying to minimize its inventory costs,which are extremely high.The company has realized that it can achieve this by maintaining a near-zero inventory and producing only once a product is ordered.Which of the following will be true for E&OE?

ShoeZone is a shoe retailer with outlets across the country.The company is trying to reduce its inventory and warehousing costs,but needs to keep delivery speeds as short as possible.What can ShoeZone do to achieve this?

Which of the following is true for retailing?

Electronic shelf labeling allows retailers to ________.

Which of the following is true for direct product profitability analysis?

Order-processing costs must be compared with inventory-carrying costs because the larger the average stock carried,the higher the inventory-carrying costs.

________ costs for a manufacturer consist of setup costs and running costs.

A franchise organization is a corporate retail organization.

In the corporate headquarters of a supermarket chain,________ are responsible for developing brand assortments and listening to salespersons' presentations.

Defining Marketing for the New Realities

Developing Marketing Strategies and Plans

Gathering Information and Forecasting Demand

Conducting Marketing Research

Creating Customer Value,satisfaction,and Loyalty

Analyzing Consumer Markets

Analyzing Business Markets

Identifying Market Segments and Targets

Creating Brand Equity

Crafting the Brand Positioning

Competitive Dynamics

Setting Product Strategy

Designing and Managing Services

Developing Pricing Strategies and Programs

Designing and Managing Marketing Channels and Value Networks

Designing and Managing Integrated Marketing Communications

Managing Mass Communications: Advertising, sales Promotions, events, and Public Relations

Managing Digital Communications: Online, social Media, and Mobile

Managing Personal Communications: Direct and Database Marketing and Personal Selling

Introducing New Market Offerings

Tapping Into Global Markets

Managing a Holistic Marketing Organization

Filters