Question 1

Private label or store brands are also known as generics.

Accepted Answer

A) True 
 B)False

Question 2

Mal's father and grandfather ran Reynold's, a general store in the town of Bayswater. 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 3

H&A is a retail chain that specializes in selling goods at very low prices. To achieve this, it stocks a very narrow assortment of basic necessities and offers customers a "no-frills" shopping experience. H&A is an example of a(n)________ store.

Accepted Answer

A)  off-price 
B)  specialty 
C)  hard-discount 
D)  superstore 
E)  convenience 
A)  off-price 
B)  specialty 
C)  hard-discount 
D)  superstore 
E)  convenience

Question 4

Wholesalers exclude manufacturers and farmers because they are engaged primarily in production,
but include retailers, as they are selling to the end consumer.

Accepted Answer

A) True 
 B)False

Question 5

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 6

Skincare company E&OE retails its products through standalone stores or through its own stores within malls. The management uses this method so that customers are sure of finding only E&OE products at the stores and the brand image remains strong. In this scenario, what can E&OE do to generate consumer interest while retaining its exclusivity?

Accepted Answer

Student answers may vary.
E&OE can do an

Question 7

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 8

Which of the following is a prepurchase service offered by retailers?

Accepted Answer

A)  accepting orders over the telephone 
B)  shipping the product 
C)  delivery to the customer's doorstep 
D)  general information 
E)  interior decoration of the retail outlet 
A)  accepting orders over the telephone 
B)  shipping the product 
C)  delivery to the customer's doorstep 
D)  general information 
E)  interior decoration of the retail outlet

Question 9

________ sell and deliver a limited line of semiperishable goods to supermarkets, grocery stores, hospitals, restaurants, and hotels.

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 10

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. What can Sandy's do to justify this move?

Accepted Answer

Student answers may vary.
To justify the

Question 11

Companies who sell products door-to-door or at home sales parties are engaging in ________.

Accepted Answer

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

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 more only once a product is ordered. Which of the following is true for E&OE?

Accepted Answer

A)  Inventory costs are lower than order-processing costs. 
B)  Running costs are higher than inventory-carrying costs. 
C)  Setup costs for the products are low. 
D)  Order-processing costs are high. 
E)  Order-processing costs are lower than setup costs. 
A)  Inventory costs are lower than order-processing costs. 
B)  Running costs are higher than inventory-carrying costs. 
C)  Setup costs for the products are low. 
D)  Order-processing costs are high. 
E)  Order-processing costs are lower than setup costs.

Question 13

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 14

Postpurchase services include shipping and delivery, gift wrapping, adjustments and returns.

Accepted Answer

A) True 
 B)False

Question 15

Department stores only face competition from other department stores as other retailing forms are not a threat to their sales and profitability.

Accepted Answer

A) True 
 B)False

Question 16

The ________ marketing sales system works by recruiting independent businesspeople who act as distributors.

Accepted Answer

A)  catalog 
B)  multilevel 
C)  direct-response 
D)  corporate 
E)  direct 
A)  catalog 
B)  multilevel 
C)  direct-response 
D)  corporate 
E)  direct

Question 17

List some recent trends in retailing.

Accepted Answer

The recent trends in retail include the

Question 18

Which of the following is true for franchisors?

Accepted Answer

A)  The franchisor has to pay the franchisee to be part of the franchise system. 
B)  The franchisor licenses the trade mark from the franchisee. 
C)  The franchisor must change its operations to suit those of the franchisee's. 
D)  The franchisor collects royalty payments from the franchisee. 
E)  The franchisor pays start-up costs for the franchisee. 
A)  The franchisor has to pay the franchisee to be part of the franchise system. 
B)  The franchisor licenses the trade mark from the franchisee. 
C)  The franchisor must change its operations to suit those of the franchisee's. 
D)  The franchisor collects royalty payments from the franchisee. 
E)  The franchisor pays start-up costs for the franchisee.

Question 19

Which of the following is considered a wholesaler?

Accepted Answer

A)  retailers 
B)  brokers 
C)  producers 
D)  manufacturers 
E)  farmers 
A)  retailers 
B)  brokers 
C)  producers 
D)  manufacturers 
E)  farmers

Question 20

Give one example of a retailer that uses stand-alone stores as opposed to stores located in malls. Why do you think retailers opt for this channel?

Accepted Answer

Student answers may vary.
Retailers may

Private label or store brands are also known as generics.

H&A is a retail chain that specializes in selling goods at very low prices. To achieve this, it stocks a very narrow assortment of basic necessities and offers customers a "no-frills" shopping experience. H&A is an example of a(n)________ store.

Wholesalers exclude manufacturers and farmers because they are engaged primarily in production, but include retailers, as they are selling to the end consumer.

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.

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

Which of the following is a prepurchase service offered by retailers?

________ sell and deliver a limited line of semiperishable goods to supermarkets, grocery stores, hospitals, restaurants, and hotels.

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. What can Sandy's do to justify this move?

Companies who sell products door-to-door or at home sales parties are engaging in ________.

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 more only once a product is ordered. Which of the following is true for E&OE?

Which of the following is true for franchisees?

Postpurchase services include shipping and delivery, gift wrapping, adjustments and returns.

Department stores only face competition from other department stores as other retailing forms are not a threat to their sales and profitability.

The ________ marketing sales system works by recruiting independent businesspeople who act as distributors.

List some recent trends in retailing.

Which of the following is true for franchisors?

Which of the following is considered a wholesaler?

Give one example of a retailer that uses stand-alone stores as opposed to stores located in malls. Why do you think retailers opt for this channel?

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

Filters

Exam 16: Managing Retailing, Wholesaling, and Logistics

Private label or store brands are also known as generics.

H&A is a retail chain that specializes in selling goods at very low prices. To achieve this, it stocks a very narrow assortment of basic necessities and offers customers a "no-frills" shopping experience. H&A is an example of a(n)________ store.

Wholesalers exclude manufacturers and farmers because they are engaged primarily in production, but include retailers, as they are selling to the end consumer.

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.

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

Which of the following is a prepurchase service offered by retailers?

________ sell and deliver a limited line of semiperishable goods to supermarkets, grocery stores, hospitals, restaurants, and hotels.

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. What can Sandy's do to justify this move?

Companies who sell products door-to-door or at home sales parties are engaging in ________.

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 more only once a product is ordered. Which of the following is true for E&OE?

Which of the following is true for franchisees?

Postpurchase services include shipping and delivery, gift wrapping, adjustments and returns.

Department stores only face competition from other department stores as other retailing forms are not a threat to their sales and profitability.

The ________ marketing sales system works by recruiting independent businesspeople who act as distributors.

List some recent trends in retailing.

Which of the following is true for franchisors?

Which of the following is considered a wholesaler?

Give one example of a retailer that uses stand-alone stores as opposed to stores located in malls. Why do you think retailers opt for this channel?

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

Filters