Question 1

Which of these is an example of nonstore retailing?

Accepted Answer

A)  hypermarkets 
B)  supercenters 
C)  shopping centers 
D)  direct selling 
E)  general merchandise stores 
A)  hypermarkets 
B)  supercenters 
C)  shopping centers 
D)  direct selling 
E)  general merchandise stores

Question 2

The three basic types of contractual systems are

Accepted Answer

A)  retailer-sponsored cooperatives, wholesaler-sponsored voluntary chains, and franchises. 
B)  dual ownership agreements, industry consortiums, and nonbinding cooperatives. 
C)  wholesaler-sponsored voluntary chains, nonbinding cooperatives, and franchises. 
D)  dual ownership agreements, industry consortiums, and multinational cartels. 
E)  nonbinding, binding, and in perpetuity. 
A)  retailer-sponsored cooperatives, wholesaler-sponsored voluntary chains, and franchises. 
B)  dual ownership agreements, industry consortiums, and nonbinding cooperatives. 
C)  wholesaler-sponsored voluntary chains, nonbinding cooperatives, and franchises. 
D)  dual ownership agreements, industry consortiums, and multinational cartels. 
E)  nonbinding, binding, and in perpetuity.

Question 3

By selling franchises, an organization ________ the cost of expansion and ________ its control compared to owning its own retail outlets.

Accepted Answer

A)  increases; increases 
B)  increases; reduces 
C)  reduces; increases 
D)  increases; retains almost all 
E)  reduces; reduces 
A)  increases; increases 
B)  increases; reduces 
C)  reduces; increases 
D)  increases; retains almost all 
E)  reduces; reduces

Question 4

Scrambled merchandising refers to

Accepted Answer

A)  displaying merchandise throughout a store rather than keeping all similar items together in rows on a shelf or point-of-purchase displays. 
B)  offering several unrelated product lines in a single store. 
C)  changing the position in which items are displayed in a store to create customer interest in a variety of product lines. 
D)  offering several related product lines in multiple stores. 
E)  offering several related product lines in a single store. 
A)  displaying merchandise throughout a store rather than keeping all similar items together in rows on a shelf or point-of-purchase displays. 
B)  offering several unrelated product lines in a single store. 
C)  changing the position in which items are displayed in a store to create customer interest in a variety of product lines. 
D)  offering several related product lines in multiple stores. 
E)  offering several related product lines in a single store.

Question 5

A retailer bought a collectible Precious Moments figurine for $26. She sets the initial selling price at $60. The final selling price was $52. What was the maintained markup?

Accepted Answer

A)  $112 
B)  $52 
C)  $26 
D)  $34 
E)  $86 
A)  $112 
B)  $52 
C)  $26 
D)  $34 
E)  $86

Question 6

The description of how new forms of retail outlets enter the market is referred to as the

Accepted Answer

A)  retail life cycle. 
B)  product life cycle. 
C)  wheel of retailing. 
D)  retail life matrix. 
E)  retail continuum. 
A)  retail life cycle. 
B)  product life cycle. 
C)  wheel of retailing. 
D)  retail life matrix. 
E)  retail continuum.

Question 7

Limited- and single-line stores are often referred to as

Accepted Answer

A)  specialty outlets. 
B)  general merchandise stores. 
C)  scrambled merchandise stores. 
D)  intertype outlets. 
E)  hypermarkets. 
A)  specialty outlets. 
B)  general merchandise stores. 
C)  scrambled merchandise stores. 
D)  intertype outlets. 
E)  hypermarkets.

Question 8

Level of service is used to describe the degree of service provided to the customer. Three levels of service are provided by self-, ________, and full-service retailers.

Accepted Answer

A)  limited- 
B)  total- 
C)  involvement- 
D)  obligation- 
E)  fixed- 
A)  limited- 
B)  total- 
C)  involvement- 
D)  obligation- 
E)  fixed-

Question 9

A form of ownership that involves multiple outlets under common ownership is referred to as

Accepted Answer

A)  a corporate chain. 
B)  a consumer cooperative. 
C)  a contractual system. 
D)  an independent retailer. 
E)  an administered system. 
A)  a corporate chain. 
B)  a consumer cooperative. 
C)  a contractual system. 
D)  an independent retailer. 
E)  an administered system.

Question 10

A store chain is looking for a wholesaler to furnish its health and beauty display shelves, perform all channel functions, and sell to it on consignment. Which of these would be the wisest wholesaler choice for its requirements?

Accepted Answer

A)  a rack jobber 
B)  a truck jobber 
C)  a cash and carry wholesaler 
D)  a desk jobber 
E)  a drop shipper 
A)  a rack jobber 
B)  a truck jobber 
C)  a cash and carry wholesaler 
D)  a desk jobber 
E)  a drop shipper

Question 11

What are the current trends in retailing?

Accepted Answer

Two current trends in retailing-the grow

Question 12

Impressions of the corporation that operates the store, the category or type of store, the product categories in the store, the brands in each category, merchandise and service quality, and the marketing activities of the store all contribute to a retail store's

Accepted Answer

A)  prices. 
B)  image. 
C)  emotive appeal. 
D)  name. 
E)  measurable attributes. 
A)  prices. 
B)  image. 
C)  emotive appeal. 
D)  name. 
E)  measurable attributes.

Question 13

Retail corporate chains benefit consumers in part because

Accepted Answer

A)  corporate chains have more experience than other forms of retailers. 
B)  consumers can own stock in the same company where they shop since corporate chain stock must be publicly traded. 
C)  consumers can establish a credit history more easily than with other forms of retailers. 
D)  chains have multiple outlets with similar merchandise and consistent management policies. 
E)  consumers have less stress in making decisions since merchandise is arranged and displayed by professional designers. 
A)  corporate chains have more experience than other forms of retailers. 
B)  consumers can own stock in the same company where they shop since corporate chain stock must be publicly traded. 
C)  consumers can establish a credit history more easily than with other forms of retailers. 
D)  chains have multiple outlets with similar merchandise and consistent management policies. 
E)  consumers have less stress in making decisions since merchandise is arranged and displayed by professional designers.

Question 14

A wholesaler that carries a narrow range of products and performs all channel functions is referred to as a

Accepted Answer

A)  general merchandise wholesaler. 
B)  truck jobber. 
C)  specialty merchandise wholesaler. 
D)  rack jobber. 
E)  drop shipper. 
A)  general merchandise wholesaler. 
B)  truck jobber. 
C)  specialty merchandise wholesaler. 
D)  rack jobber. 
E)  drop shipper.

Question 15

Retailing that occurs outside a retail outlet, such as through direct marketing, direct selling, and automatic vending, is referred to as

Accepted Answer

A)  limited-line retailing. 
B)  nonstore retailing. 
C)  scrambled merchandising. 
D)  a hypermarket. 
E)  intertype competition. 
A)  limited-line retailing. 
B)  nonstore retailing. 
C)  scrambled merchandising. 
D)  a hypermarket. 
E)  intertype competition.

Question 16

Figure 16-10
-According to Figure 16-10 above, C represents which stage of the retail life cycle?

Accepted Answer

A)  decline 
B)  stabilization 
C)  expansion 
D)  maturity 
E)  accelerated development 
A)  decline 
B)  stabilization 
C)  expansion 
D)  maturity 
E)  accelerated development

Question 17

Figure 16-10
-According to Figure 16-10 above, B represents which stage of the retail life cycle?

Accepted Answer

A)  growth 
B)  introduction 
C)  expansion 
D)  maturity 
E)  accelerated development 
A)  growth 
B)  introduction 
C)  expansion 
D)  maturity 
E)  accelerated development

Question 18

Rack jobbers are wholesalers that

Accepted Answer

A)  furnish the shelves that display merchandise in retail stores, perform all channel functions, and sell on consignment to retailers. 
B)  own the merchandise they sell and have retailers store it in their warehouses. 
C)  own the merchandise they sell but do not physically handle, stock, or deliver it. 
D)  have a small warehouse from which they stock their trucks for distribution to retailers. 
E)  work for several producers and carry noncompetitive, complementary merchandise in an exclusive territory. 
A)  furnish the shelves that display merchandise in retail stores, perform all channel functions, and sell on consignment to retailers. 
B)  own the merchandise they sell and have retailers store it in their warehouses. 
C)  own the merchandise they sell but do not physically handle, stock, or deliver it. 
D)  have a small warehouse from which they stock their trucks for distribution to retailers. 
E)  work for several producers and carry noncompetitive, complementary merchandise in an exclusive territory.

Question 19

The marketing metrics related to a retailer's finances include all of these except which?

Accepted Answer

A)  the markdown percentage 
B)  inventory carrying costs 
C)  the return on sales 
D)  the gross margin 
E)  the sales per employee 
A)  the markdown percentage 
B)  inventory carrying costs 
C)  the return on sales 
D)  the gross margin 
E)  the sales per employee

Question 20

Sally Beauty Supply sells products for hair, skin, and nail care as well as cosmetics. It is most likely classified as which retail variation based on the considerable assortment of beauty and personal care products it carries?

Accepted Answer

A)  single-line 
B)  full-service 
C)  full-line 
D)  limited-service 
E)  limited-line 
A)  single-line 
B)  full-service 
C)  full-line 
D)  limited-service 
E)  limited-line

Exam 16: Retailing and Wholesaling

Which of these is an example of nonstore retailing?

The three basic types of contractual systems are

By selling franchises, an organization ________ the cost of expansion and ________ its control compared to owning its own retail outlets.

Scrambled merchandising refers to

A retailer bought a collectible Precious Moments figurine for $26. She sets the initial selling price at $60. The final selling price was $52. What was the maintained markup?

The description of how new forms of retail outlets enter the market is referred to as the

Limited- and single-line stores are often referred to as

Level of service is used to describe the degree of service provided to the customer. Three levels of service are provided by self-, ________, and full-service retailers.

A form of ownership that involves multiple outlets under common ownership is referred to as

A store chain is looking for a wholesaler to furnish its health and beauty display shelves, perform all channel functions, and sell to it on consignment. Which of these would be the wisest wholesaler choice for its requirements?

What are the current trends in retailing?

Impressions of the corporation that operates the store, the category or type of store, the product categories in the store, the brands in each category, merchandise and service quality, and the marketing activities of the store all contribute to a retail store's

Retail corporate chains benefit consumers in part because

A wholesaler that carries a narrow range of products and performs all channel functions is referred to as a

Retailing that occurs outside a retail outlet, such as through direct marketing, direct selling, and automatic vending, is referred to as

Figure 16-10 -According to Figure 16-10 above, C represents which stage of the retail life cycle?

Figure 16-10 -According to Figure 16-10 above, B represents which stage of the retail life cycle?

Rack jobbers are wholesalers that

The marketing metrics related to a retailer's finances include all of these except which?

Sally Beauty Supply sells products for hair, skin, and nail care as well as cosmetics. It is most likely classified as which retail variation based on the considerable assortment of beauty and personal care products it carries?

Creating Customer Relationships and Value Through Marketing

Developing Successful Organizational and Marketing Strategies

Scanning the Marketing Environment

Ethical and Social Responsibility for Sustainable Marketing

Understanding Consumer Behavior

Understanding Organizations As Customers

Understanding and Reaching Global Consumers and Markets

Marketing Research: From Customer Insights to Actions

Market Segmentation, Targeting, and Positioning

Developing New Products and Services

Managing Successful Products, Services, and Brands

Services Marketing

Building the Price Foundation

Arriving at the Final Price

Managing Marketing Channels and Supply Chains

Integrated Marketing Communications and Direct Marketing

Advertising, Sales Promotion, and Public Relations

Using Social Media and Mobile Marketing to Connect With Consumers

Personal Selling and Sales Management

Implementing Interactive and Multi-Channel Marketing

Pulling It All Together: the Strategic Marketing Proces

Building an Effective Marketing Plan

Financial Aspects of Marketing

Filters

By selling franchises, an organization the cost of expansion and its control compared to owning its own retail outlets.