Question 1

Explain the several activities of market logistics.

Accepted Answer

The first is sales forecasting,on the ba

Question 2

Wholesalers pay less attention to promotion,atmosphere,and location because they are dealing with business customers rather than final consumers.

Accepted Answer

A) True 
 B)False

Question 3

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.Why shouldn't Mal go the franchise route?

Accepted Answer

Student answers may vary.
Most franchise

Question 4

Supermarket chain Reynold's is considering making a switch to stocking almost exclusively private-label products in order to offer customers the lowest prices.Offer reasons why Reynold's should think twice before opting to stock exclusively private-label products.

Accepted Answer

Student answers may vary.
Reynold's shou

Question 5

In order to clearly differentiate themselves from competitors,retailers must keep merchandise and prices always consistent.

Accepted Answer

A) True 
 B)False

Question 6

A stock order point of 10 means ordering the product ________.

Accepted Answer

A) every 10 days 
B) when stock falls to 10 units 
C) every 10 units 
D) when stock falls to 9 units 
E) in batches of 10 items 
A) every 10 days 
B) when stock falls to 10 units 
C) every 10 units 
D) when stock falls to 9 units 
E) in batches of 10 items

Question 7

A large staff,along with a higher proportion of specialty goods and slower-moving items and many services,are usually features of ________ retailing.

Accepted Answer

A) self-service 
B) self-selection 
C) limited service 
D) full-service 
E) limited-selection 
A) self-service 
B) self-selection 
C) limited service 
D) full-service 
E) limited-selection

Question 8

HCN recently introduced a product that the distributor considers a "bottleneck" item.What is the risk/opportunity relationship for bottleneck items?

Accepted Answer

A) low risk,mediocre opportunity 
B) low risk,high opportunity 
C) low risk,low opportunity 
D) high risk,mediocre opportunity 
E) high risk,low opportunity 
A) low risk,mediocre opportunity 
B) low risk,high opportunity 
C) low risk,low opportunity 
D) high risk,mediocre opportunity 
E) high risk,low opportunity

Question 9

Through ______________,wholesalers hold inventories,thereby reducing inventory costs and risks to suppliers and customers.

Accepted Answer

A) selling and promoting 
B) buying and assortment building 
C) warehousing 
D) risk bearing 
E) transportation 
A) selling and promoting 
B) buying and assortment building 
C) warehousing 
D) risk bearing 
E) transportation

Question 10

Larger Asian department stores have established their own hypermarkets and discount outlets as a defensive strategy against foreign chains.

Accepted Answer

A) True 
 B)False

Question 11

List and explain the four service levels offered by retailers.

Accepted Answer

Retailers meet widely different consumer

Question 12

In the ________ type of retailing,customers usually find their own goods,although they can ask salespeople for assistance.

Accepted Answer

A) self-service 
B) self-selection 
C) full-service 
D) limited service 
E) limited-selection 
A) self-service 
B) self-selection 
C) full-service 
D) limited service 
E) limited-selection

Question 13

In your neighborhood there is a small men's store that has a limited selection of clothing,but the selection that is carried is of very high quality and price.Services include free alterations and tailoring,personalized record keeping,and free dry cleaning.The inside of the store has deep leather chairs and couches and thick pile carpet.Upon entering the store,a customer feels "special and rich." In terms of differentiation,what is this retailer trying to communicate by its decorations and service level?

Accepted Answer

A) differentiation based on services mix and atmosphere 
B) differentiation based on prepurchase services 
C) differentiation based on postpurchase services and atmosphere 
D) differentiation based on ancillary services and atmosphere 
E) differentiation based on prepurchase and postpurchase services 
A) differentiation based on services mix and atmosphere 
B) differentiation based on prepurchase services 
C) differentiation based on postpurchase services and atmosphere 
D) differentiation based on ancillary services and atmosphere 
E) differentiation based on prepurchase and postpurchase services

Question 14

In ________,a salesperson goes to the home of a host who has invited friends,demonstrates the products and takes orders.

Accepted Answer

A) catalog marketing 
B) franchising 
C) direct-response selling 
D) network marketing 
E) direct marketing 
A) catalog marketing 
B) franchising 
C) direct-response selling 
D) network marketing 
E) direct marketing

Question 15

An item described as low-risk and low-opportunity is a ________.

Accepted Answer

A) nuisance item 
B) bottleneck item 
C) variable item 
D) critical item 
E) commodity 
A) nuisance item 
B) bottleneck item 
C) variable item 
D) critical item 
E) commodity

Question 16

American businessman King Gillette pioneered the sales model in which razor handles were given away for free or sold at a loss,but sales of disposable razor blades were very profitable.This is known as the _______ model.

Accepted Answer

A) two-tiered pricing 
B) predatory pricing 
C) cross selling 
D) loss leading 
E) product churning 
A) two-tiered pricing 
B) predatory pricing 
C) cross selling 
D) loss leading 
E) product churning

Question 17

Low prices on some items serve as traffic builders or loss leaders for retailers.

Accepted Answer

A) True 
 B)False

Question 18

Which of the following is true of store retailers?

Accepted Answer

A) A hard-discount store offers a wider merchandise mix than discount stores at higher prices. 
B) A discount store offers leftover goods,overruns,and irregular merchandise sold at less than retail. 
C) A specialty store generally stocks a very narrow product line. 
D) An extreme value store generally has a broad selection of high-markup,brand-name goods. 
E) A catalog showroom is a large,low-cost,low-margin,high-volume,self-service store. 
A) A hard-discount store offers a wider merchandise mix than discount stores at higher prices. 
B) A discount store offers leftover goods,overruns,and irregular merchandise sold at less than retail. 
C) A specialty store generally stocks a very narrow product line. 
D) An extreme value store generally has a broad selection of high-markup,brand-name goods. 
E) A catalog showroom is a large,low-cost,low-margin,high-volume,self-service store.

Question 19

Explain how wholesalers differ from retailers.

Accepted Answer

First,wholesalers pay less attention to

Question 20

________ consists of putting goods in boxes or trailers that are easy to transfer between two transportation modes.

Accepted Answer

A) Containerization 
B) Haulage 
C) Inventory carrying 
D) Order processing 
E) Warehousing 
A) Containerization 
B) Haulage 
C) Inventory carrying 
D) Order processing 
E) Warehousing

Exam 16: Managing Retailing,wholesaling,and Logistics

Explain the several activities of market logistics.

Wholesalers pay less attention to promotion,atmosphere,and location because they are dealing with business customers rather than final consumers.

Supermarket chain Reynold's is considering making a switch to stocking almost exclusively private-label products in order to offer customers the lowest prices.Offer reasons why Reynold's should think twice before opting to stock exclusively private-label products.

In order to clearly differentiate themselves from competitors,retailers must keep merchandise and prices always consistent.

A stock order point of 10 means ordering the product ________.

A large staff,along with a higher proportion of specialty goods and slower-moving items and many services,are usually features of ________ retailing.

HCN recently introduced a product that the distributor considers a "bottleneck" item.What is the risk/opportunity relationship for bottleneck items?

Through ______________,wholesalers hold inventories,thereby reducing inventory costs and risks to suppliers and customers.

Larger Asian department stores have established their own hypermarkets and discount outlets as a defensive strategy against foreign chains.

List and explain the four service levels offered by retailers.

In the ________ type of retailing,customers usually find their own goods,although they can ask salespeople for assistance.

In ________,a salesperson goes to the home of a host who has invited friends,demonstrates the products and takes orders.

An item described as low-risk and low-opportunity is a ________.

American businessman King Gillette pioneered the sales model in which razor handles were given away for free or sold at a loss,but sales of disposable razor blades were very profitable.This is known as the _______ model.

Low prices on some items serve as traffic builders or loss leaders for retailers.

Which of the following is true of store retailers?

Explain how wholesalers differ from retailers.

________ consists of putting goods in boxes or trailers that are easy to transfer between two transportation modes.

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

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