Question 1

Data analytics benefits retailers by

Accepted Answer

A)  accurately predicting changes in the external environment. 
B)  allowing merchants to provide personalized, real-time messaging and promotions. 
C)  eliminating the need for wholesaling and the associated markups that raise prices. 
D)  shortening the retail life cycle. 
E)  improving sales per square foot or same-store sales growth by providing access to alternate channels. 
A)  accurately predicting changes in the external environment. 
B)  allowing merchants to provide personalized, real-time messaging and promotions. 
C)  eliminating the need for wholesaling and the associated markups that raise prices. 
D)  shortening the retail life cycle. 
E)  improving sales per square foot or same-store sales growth by providing access to alternate channels.

Question 2

Depth of product line refers to

Accepted Answer

A)  the percentage of goods stored as inventory. 
B)  the variety of different product items a store carries. 
C)  variations in price and color on specific items in a store. 
D)  the assortment of each item carried by a store. 
E)  the number of different product classes owned by a corporate chain. 
A)  the percentage of goods stored as inventory. 
B)  the variety of different product items a store carries. 
C)  variations in price and color on specific items in a store. 
D)  the assortment of each item carried by a store. 
E)  the number of different product classes owned by a corporate chain.

Question 3

Independent retailers account for most of the ________ retail establishments in the United States.

Accepted Answer

A)  50,000 
B)  90,000 
C)  900,000 
D)  1.8 million 
E)  3.8 million 
A)  50,000 
B)  90,000 
C)  900,000 
D)  1.8 million 
E)  3.8 million

Question 4

A unique broker that acts in many ways like a manufacturer's agent is a food broker, representing buyers and sellers in the grocery industry. Food brokers differ from conventional brokers because they act on behalf of producers on a permanent basis and

Accepted Answer

A)  receive a commission for their services. 
B)  are paid a flat fee for each time the shelves are stocked. 
C)  are paid by both the buyer and seller separately depending upon the size of the order. 
D)  are paid a commission by the buyer and a bonus by the seller. 
E)  are paid a flat fee by both the buyer and seller, but receive a bonus based upon the percentage of increased sales by quarter. 
A)  receive a commission for their services. 
B)  are paid a flat fee for each time the shelves are stocked. 
C)  are paid by both the buyer and seller separately depending upon the size of the order. 
D)  are paid a commission by the buyer and a bonus by the seller. 
E)  are paid a flat fee by both the buyer and seller, but receive a bonus based upon the percentage of increased sales by quarter.

Question 5

Jane Westerlund owns a small retail picture frame store in a local strip mall. She just bought 10 picture frames from a promising woodworker for $36 each. Based on market conditions, she will sell these for $100 each. What is her markup in dollar terms?

Accepted Answer

A)  $136 
B)  $64 
C)  $72 
D)  $360 
E)  $10 
A)  $136 
B)  $64 
C)  $72 
D)  $360 
E)  $10

Question 6

Intermediaries that represent a single producer and are responsible for the entire marketing function of that producer are referred to as

Accepted Answer

A)  brokers. 
B)  line brokers. 
C)  selling agents. 
D)  distribution brokers. 
E)  manufacturers' agents. 
A)  brokers. 
B)  line brokers. 
C)  selling agents. 
D)  distribution brokers. 
E)  manufacturers' agents.

Question 7

Nordstrom stores typically have 50 percent more salespeople on the floor than other retailers with stores of similar sizes. Its salespeople are renowned for their professional and personalized attention to customers. Nordstrom offers a wide variety of services, including on-site alterations and tailoring, a seven-days-a-week customer service line, live chat line with beauty, design, and wedding specialists and would be considered

Accepted Answer

A)  an exclusive-service retailer. 
B)  a limited-service retailer. 
C)  a full-service retailer. 
D)  an above-market service retailer. 
E)  a preferred-service retailer. 
A)  an exclusive-service retailer. 
B)  a limited-service retailer. 
C)  a full-service retailer. 
D)  an above-market service retailer. 
E)  a preferred-service retailer.

Question 8

Explain the difference between a markup, an original markup, and a maintained markup.

Accepted Answer

In setting prices for merchandise, retai

Question 9

Stores that carry a considerable assortment (depth) of a related line of items are referred to as

Accepted Answer

A)  limited-line stores. 
B)  general merchandise stores. 
C)  scrambled merchandise stores. 
D)  hypermarkets. 
E)  intertype outlets. 
A)  limited-line stores. 
B)  general merchandise stores. 
C)  scrambled merchandise stores. 
D)  hypermarkets. 
E)  intertype outlets.

Question 10

The marketing managers at Omaha Steaks used airlines' databases to mail a special offer to frequent flyers. Eight weeks after shipping the steaks to the frequent flyers who responded to the offer, the company's salespeople followed up by telephoning customers to ask for new orders. This is an example of which types of nonstore retailing?

Accepted Answer

A)  direct selling and telemarketing 
B)  direct mail and telemarketing 
C)  telemarketing and online retailing 
D)  online retailing and direct mail 
E)  direct mail and direct selling 
A)  direct selling and telemarketing 
B)  direct mail and telemarketing 
C)  telemarketing and online retailing 
D)  online retailing and direct mail 
E)  direct mail and direct selling

Question 11

All of these are reasons direct-mail and catalog retailing are attractive except which?

Accepted Answer

A)  They can create customer value by providing a fast and convenient means of making a purchase. 
B)  They can serve as an element of a multichannel strategy designed to encourage consumers to visit a website, a social media page, or even a store. 
C)  Their paper costs and postal rates have declined, making them less expensive to send. 
D)  They can eliminate the cost of a store and clerks. 
E)  They can improve marketing efficiency through segmentation and targeting. 
A)  They can create customer value by providing a fast and convenient means of making a purchase. 
B)  They can serve as an element of a multichannel strategy designed to encourage consumers to visit a website, a social media page, or even a store. 
C)  Their paper costs and postal rates have declined, making them less expensive to send. 
D)  They can eliminate the cost of a store and clerks. 
E)  They can improve marketing efficiency through segmentation and targeting.

Question 12

Dick's Sporting Goods is a leading sports retailer that provides year-round inventory of equipment for just about any sport. Even during the off-season, equipment for seasonal sports is available at Dick's. Which utility does it best provide?

Accepted Answer

A)  time 
B)  convenience 
C)  possession 
D)  form 
E)  performance 
A)  time 
B)  convenience 
C)  possession 
D)  form 
E)  performance

Question 13

The battle for market share is usually fought directly before the ________ stage, and some competitors drop out of the market.

Accepted Answer

A)  decline 
B)  growth 
C)  maturity 
D)  harvest 
E)  introduction phase 
A)  decline 
B)  growth 
C)  maturity 
D)  harvest 
E)  introduction phase

Question 14

Retailers such as Williams-Sonoma that sell products through retail stores, catalogs, and online are examples of

Accepted Answer

A)  intertype competitors. 
B)  multichannel retailers. 
C)  vertically integrated retailers. 
D)  scrambled merchandisers. 
E)  dual distributors. 
A)  intertype competitors. 
B)  multichannel retailers. 
C)  vertically integrated retailers. 
D)  scrambled merchandisers. 
E)  dual distributors.

Question 15

Which of these statements regarding corporate chains is most accurate?

Accepted Answer

A)  Corporate chains cannot bargain with a manufacturer to obtain product volume discounts due to federal anticompetitive legislation-the Clayton Act as amended by the Sherman Act. 
B)  Corporate chains generally own most if not all of their suppliers-a practice known as forward integration-so they can save distribution costs. 
C)  Consumers have fewer choices in merchandise since all buying decisions are made by a decentralized buying committee. 
D)  Corporate chains offer the least benefit to consumers since they are the farthest removed from the ultimate consumer. 
E)  Corporate chains are multiple outlets under common ownership. 
A)  Corporate chains cannot bargain with a manufacturer to obtain product volume discounts due to federal anticompetitive legislation-the Clayton Act as amended by the Sherman Act. 
B)  Corporate chains generally own most if not all of their suppliers-a practice known as forward integration-so they can save distribution costs. 
C)  Consumers have fewer choices in merchandise since all buying decisions are made by a decentralized buying committee. 
D)  Corporate chains offer the least benefit to consumers since they are the farthest removed from the ultimate consumer. 
E)  Corporate chains are multiple outlets under common ownership.

Question 16

Research indicates that the timing of ________ might affect future sales because frequent promotions increase consumers' ability to remember regular prices.

Accepted Answer

A)  seasonal markdowns 
B)  original markups 
C)  future markups 
D)  maintained markups 
E)  markdowns 
A)  seasonal markdowns 
B)  original markups 
C)  future markups 
D)  maintained markups 
E)  markdowns

Question 17

Most stores today are near several others in one of five settings that include all of these except which?

Accepted Answer

A)  the regional shopping center 
B)  the strip mall 
C)  the old-town district 
D)  the central business district 
E)  the power center 
A)  the regional shopping center 
B)  the strip mall 
C)  the old-town district 
D)  the central business district 
E)  the power center

Question 18

Figure 16-9
-According to Figure 16-9 above, Box A represents the stage in the wheel of retailing when a retail outlet starts with

Accepted Answer

A)  low prices, high margins, and high status. 
B)  mixed prices, mixed margins, and mixed status. 
C)  low prices, low margins, and low status. 
D)  moderate prices, high margins, and high status. 
E)  high prices, low margins, and mixed status. 
A)  low prices, high margins, and high status. 
B)  mixed prices, mixed margins, and mixed status. 
C)  low prices, low margins, and low status. 
D)  moderate prices, high margins, and high status. 
E)  high prices, low margins, and mixed status.

Question 19

Figure 16-8
-Which of these retailers would best fit in quadrant B shown in the retail positioning matrix, Figure 16-8 above?

Accepted Answer

A)  H&M clothing store 
B)  Bloomingdale's department store 
C)  7-Eleven convenience store 
D)  DSW shoe store 
E)  Lamborghini automobile dealer 
A)  H&M clothing store 
B)  Bloomingdale's department store 
C)  7-Eleven convenience store 
D)  DSW shoe store 
E)  Lamborghini automobile dealer

Question 20

Briefly describe the three levels of service offered by retail outlets.

Accepted Answer

Retail outlets generally offer three lev

Exam 16: Retailing and Wholesaling

Data analytics benefits retailers by

Depth of product line refers to

Independent retailers account for most of the ________ retail establishments in the United States.

A unique broker that acts in many ways like a manufacturer's agent is a food broker, representing buyers and sellers in the grocery industry. Food brokers differ from conventional brokers because they act on behalf of producers on a permanent basis and

Jane Westerlund owns a small retail picture frame store in a local strip mall. She just bought 10 picture frames from a promising woodworker for $36 each. Based on market conditions, she will sell these for $100 each. What is her markup in dollar terms?

Intermediaries that represent a single producer and are responsible for the entire marketing function of that producer are referred to as

Explain the difference between a markup, an original markup, and a maintained markup.

Stores that carry a considerable assortment (depth) of a related line of items are referred to as

All of these are reasons direct-mail and catalog retailing are attractive except which?

Dick's Sporting Goods is a leading sports retailer that provides year-round inventory of equipment for just about any sport. Even during the off-season, equipment for seasonal sports is available at Dick's. Which utility does it best provide?

The battle for market share is usually fought directly before the ________ stage, and some competitors drop out of the market.

Retailers such as Williams-Sonoma that sell products through retail stores, catalogs, and online are examples of

Which of these statements regarding corporate chains is most accurate?

Research indicates that the timing of ________ might affect future sales because frequent promotions increase consumers' ability to remember regular prices.

Most stores today are near several others in one of five settings that include all of these except which?

Figure 16-9 -According to Figure 16-9 above, Box A represents the stage in the wheel of retailing when a retail outlet starts with

Figure 16-8 -Which of these retailers would best fit in quadrant B shown in the retail positioning matrix, Figure 16-8 above?

Briefly describe the three levels of service offered by retail outlets.

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

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