Question 1

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 2

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

Accepted Answer

A) True 
 B)False

Question 3

________ 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

Question 4

Beyond the optimal order quantity, total cost per unit increases because ________.

Accepted Answer

A)  inventory-carrying cost per unit increases 
B)  inventory-carrying cost per unit decreases 
C)  order-processing cost per unit increases 
D)  order-processing cost per unit increases though inventory cost decreases 
E)  inventory-processing cost per unit falls slowly 
A)  inventory-carrying cost per unit increases 
B)  inventory-carrying cost per unit decreases 
C)  order-processing cost per unit increases 
D)  order-processing cost per unit increases though inventory cost decreases 
E)  inventory-processing cost per unit falls slowly

Question 5

The elapsed time between an order's receipt, delivery, and payment is called the ________.

Accepted Answer

A)  variable-costs-to-payment cycle 
B)  product-to-payment cycle 
C)  inventory-to-sale cycle 
D)  order-to-inventory cycle 
E)  order-to-payment cycle 
A)  variable-costs-to-payment cycle 
B)  product-to-payment cycle 
C)  inventory-to-sale cycle 
D)  order-to-inventory cycle 
E)  order-to-payment cycle

Question 6

A retailer cooperative is a retail firm that is owned by its customers.

Accepted Answer

A) True 
 B)False

Question 7

The growth of "house brands" has skyrocketed in recent years. What benefits do intermediaries receive from sponsoring their own brands?

Accepted Answer

A private label brand (also called a res

Question 8

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 9

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 10

Electronic shelf labeling allows retailers to check inventory levels instantaneously.

Accepted Answer

A) True 
 B)False

Question 11

As inventory draws down, management must know at what stock level to place a new order. This
stock level is called the order point.

Accepted Answer

A) True 
 B)False

Question 12

Which of the following is an example of direct marketing?

Accepted Answer

A)  E&OE sells its herbal skincare products exclusively through its stand-alone stores. 
B)  TCJ is a telemarketing firm that sells products from a number of different suppliers. 
C)  Jayne's sells most of its products to customers through home sales parties. 
D)  J3 is a storeless retailer that organizes the retail activity of the employees of four firms. 
E)  Reynold's tries to minimize its staff costs by installing vending machines in its stores. 
A)  E&OE sells its herbal skincare products exclusively through its stand-alone stores. 
B)  TCJ is a telemarketing firm that sells products from a number of different suppliers. 
C)  Jayne's sells most of its products to customers through home sales parties. 
D)  J3 is a storeless retailer that organizes the retail activity of the employees of four firms. 
E)  Reynold's tries to minimize its staff costs by installing vending machines in its stores.

Question 13

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 14

Sandy's Stores is a small chain of grocery stores located in a few neighboring towns. The stores have always been largely self-service, but the company is considering making a switch to full-service stores. Offer reasons why Sandy's should stick with its current system.

Accepted Answer

Student answers may vary.
As Sandy's is

Question 15

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 16

How would merchant wholesaler HCN operate?

Accepted Answer

Merchant wholesalers are indep

Question 17

Inventory cost increases at an accelerating rate as the customer-service level approaches 100 percent.

Accepted Answer

A) True 
 B)False

Question 18

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

Accepted Answer

A) True 
 B)False

Question 19

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

Accepted Answer

A) True 
 B)False

Question 20

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

Accepted Answer

A) True 
 B)False

Exam 16: Managing Retailing, Wholesaling, and Logistics

Which of the following is true for retailing?

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

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

Beyond the optimal order quantity, total cost per unit increases because ________.

The elapsed time between an order's receipt, delivery, and payment is called the ________.

A retailer cooperative is a retail firm that is owned by its customers.

The growth of "house brands" has skyrocketed in recent years. What benefits do intermediaries receive from sponsoring their own brands?

Which of the following is true of store retailers?

Electronic shelf labeling allows retailers to check inventory levels instantaneously.

As inventory draws down, management must know at what stock level to place a new order. This stock level is called the order point.

Which of the following is an example of direct marketing?

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

Sandy's Stores is a small chain of grocery stores located in a few neighboring towns. The stores have always been largely self-service, but the company is considering making a switch to full-service stores. Offer reasons why Sandy's should stick with its current system.

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

How would merchant wholesaler HCN operate?

Inventory cost increases at an accelerating rate as the customer-service level approaches 100 percent.

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

"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.

Defining Marketing for the 21st Century

Developing Marketing Strategies and Plans

Collecting Information and Forecasting Demand

Conducting Marketing Research

Creating Long-Term Loyalty Relationships

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 Integrated Marketing Channels

Designing and Managing Integrated Marketing Communications

Managing Mass Communications: Advertising, Sales Promotions, Events and Experiences, and Public Relations

Managing Personal Communications: Direct and Interactive Marketing, Word of Mouth, and Personal Selling

Introducing New Market Offerings

Tapping into Global Markets

Managing a Holistic Marketing Organization for the Long Run

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