Question 1

Staples is a giant retailer that concentrates on selling office supplies. Staples is an example of a(n)________.

Accepted Answer

A)  ambush marketer 
B)  supercenter 
C)  megamarketer 
D)  category killer 
E)  guerilla marketer 
A)  ambush marketer 
B)  supercenter 
C)  megamarketer 
D)  category killer 
E)  guerilla marketer

Question 2

Supermarket chain Reynold's is considering stocking a number of private-label products in order to offer customers the lowest possible prices. Explain how this strategy could benefit the company.

Accepted Answer

Student answers may vary.
Private brands

Question 3

A brand developed by a retailer and/or wholesaler that is available only in selected retail outlets is called a ________ brand.

Accepted Answer

A)  generic 
B)  franchisee 
C)  marque 
D)  national 
E)  private-label 
A)  generic 
B)  franchisee 
C)  marque 
D)  national 
E)  private-label

Question 4

The order-processing cost per unit increases with the number of units ordered because the order costs are spread over more units.

Accepted Answer

A) True 
 B)False

Question 5

Retailing includes all the activities involved in selling goods or services directly to final consumers.

Accepted Answer

A) True 
 B)False

Question 6

If setup costs are high, the manufacturer can produce the item often, and the average cost per item is stable and equal to the running costs.

Accepted Answer

A) True 
 B)False

Question 7

If the shipper owns its own truck or air fleet, it becomes a ________.

Accepted Answer

A)  containerized carrier 
B)  private carrier 
C)  contract carrier 
D)  common carrier 
E)  diversified carrier 
A)  containerized carrier 
B)  private carrier 
C)  contract carrier 
D)  common carrier 
E)  diversified carrier

Question 8

Which of the following is true for distributor brands?

Accepted Answer

A)  They sell at higher volumes than national brands and are also known as generics. 
B)  They are usually sold at higher prices than national brands because production costs are higher. 
C)  They are always of better quality than national brands as production is strictly monitored. 
D)  Distributor brands can be sold at lower prices yet generate a higher profit margin because of their lower cost structure. 
E)  Advertising and sales promotion costs for distributor brands are much higher than those for national brands. 
A)  They sell at higher volumes than national brands and are also known as generics. 
B)  They are usually sold at higher prices than national brands because production costs are higher. 
C)  They are always of better quality than national brands as production is strictly monitored. 
D)  Distributor brands can be sold at lower prices yet generate a higher profit margin because of their lower cost structure. 
E)  Advertising and sales promotion costs for distributor brands are much higher than those for national brands.

Question 9

________ includes all the activities in selling goods or services directly to final consumers for personal,
Nonbusiness use.

Accepted Answer

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

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

List and explain the four service levels offered by retailers.

Accepted Answer

Retailers meet widely different consumer

Question 12

The trucking firm hired by your transportation manager provides a trucking service between the city of Sacramento and the surrounding towns on a regular schedule and at fixed prices. The trucking firm saves transportation costs by transporting the goods using trains as well as trucks, instead of trucks alone. Your transportation manager has hired a(n)________.

Accepted Answer

A)  airship carrier 
B)  airtruck carrier 
C)  trainship carrier 
D)  fishyback carrier 
E)  piggyback carrier 
A)  airship carrier 
B)  airtruck carrier 
C)  trainship carrier 
D)  fishyback carrier 
E)  piggyback carrier

Question 13

EDLP can lead to lower advertising costs and higher retail profits.

Accepted Answer

A) True 
 B)False

Question 14

Which of the following is an ancillary service offered by retailers?

Accepted Answer

A)  accepting orders over the telephone 
B)  advertising and window displays 
C)  delivery to the customer's doorstep 
D)  general information 
E)  alterations and tailoring 
A)  accepting orders over the telephone 
B)  advertising and window displays 
C)  delivery to the customer's doorstep 
D)  general information 
E)  alterations and tailoring

Question 15

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 16

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 17

A ________ is a storeless retailer serving a specific clientele-usually employees of large organizations-who are authorized to buy from a list of retailers that have agreed to give discounts in return for inclusion on the list.

Accepted Answer

A)  direct-selling vendor 
B)  direct marketing vendor 
C)  buying service 
D)  automatic vendor 
E)  corporate retailer 
A)  direct-selling vendor 
B)  direct marketing vendor 
C)  buying service 
D)  automatic vendor 
E)  corporate retailer

Question 18

________ serve bulk industries such as coal, lumber, and heavy equipment, assuming title and risk from the time an order is accepted to its delivery.

Accepted Answer

A)  Producers' cooperatives 
B)  Cash and carry wholesalers 
C)  Truck wholesalers 
D)  Drop shippers 
E)  Rack jobbers 
A)  Producers' cooperatives 
B)  Cash and carry wholesalers 
C)  Truck wholesalers 
D)  Drop shippers 
E)  Rack jobbers

Question 19

Jayne runs a small grocery store in a small town. As there are only few customers, the store does not require to stock goods in large quantities. Explain why sourcing products from a wholesaler will be beneficial for Jayne.

Accepted Answer

Student answers may vary.
Wholesalers ar

Question 20

Which of the following types of retailing generally entails the highest costs?

Accepted Answer

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

Exam 16: Managing Retailing, Wholesaling, and Logistics

Staples is a giant retailer that concentrates on selling office supplies. Staples is an example of a(n)________.

Supermarket chain Reynold's is considering stocking a number of private-label products in order to offer customers the lowest possible prices. Explain how this strategy could benefit the company.

A brand developed by a retailer and/or wholesaler that is available only in selected retail outlets is called a ________ brand.

The order-processing cost per unit increases with the number of units ordered because the order costs are spread over more units.

Retailing includes all the activities involved in selling goods or services directly to final consumers.

If setup costs are high, the manufacturer can produce the item often, and the average cost per item is stable and equal to the running costs.

If the shipper owns its own truck or air fleet, it becomes a ________.

Which of the following is true for distributor brands?

________ includes all the activities in selling goods or services directly to final consumers for personal, Nonbusiness use.

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

List and explain the four service levels offered by retailers.

EDLP can lead to lower advertising costs and higher retail profits.

Which of the following is an ancillary service offered by retailers?

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

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.

A ________ is a storeless retailer serving a specific clientele-usually employees of large organizations-who are authorized to buy from a list of retailers that have agreed to give discounts in return for inclusion on the list.

________ serve bulk industries such as coal, lumber, and heavy equipment, assuming title and risk from the time an order is accepted to its delivery.

Jayne runs a small grocery store in a small town. As there are only few customers, the store does not require to stock goods in large quantities. Explain why sourcing products from a wholesaler will be beneficial for Jayne.

Which of the following types of retailing generally entails the highest costs?

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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