Question 1

The difference between the retailer's cost and the initial selling price is referred to as the

Accepted Answer

A)  net margin. 
B)  maintained markup. 
C)  markdown 
D)  differential markup. 
E)  original markup. 
A)  net margin. 
B)  maintained markup. 
C)  markdown 
D)  differential markup. 
E)  original markup.

Question 2

Multichannel retailers are retailers that

Accepted Answer

A)  sell different products through entirely different channels. 
B)  sell through different channels under different brand names. 
C)  utilize strategic and tactical wholesalers. 
D)  utilize and integrate a combination of traditional store formats and nonstore formats. 
E)  combine two channels for their offerings: one for products and the other for services. 
A)  sell different products through entirely different channels. 
B)  sell through different channels under different brand names. 
C)  utilize strategic and tactical wholesalers. 
D)  utilize and integrate a combination of traditional store formats and nonstore formats. 
E)  combine two channels for their offerings: one for products and the other for services.

Question 3

Discounting generally takes place during which stage of the retail life cycle?

Accepted Answer

A)  early growth 
B)  accelerated development 
C)  decline 
D)  maturity 
E)  early growth and maturity 
A)  early growth 
B)  accelerated development 
C)  decline 
D)  maturity 
E)  early growth and maturity

Question 4

Which type of wholesaler traditionally sells hosiery, toys, and health and beauty items?

Accepted Answer

A)  cash and carry wholesalers 
B)  truck jobbers 
C)  general merchandise wholesalers 
D)  rack jobbers 
E)  drop shippers 
A)  cash and carry wholesalers 
B)  truck jobbers 
C)  general merchandise wholesalers 
D)  rack jobbers 
E)  drop shippers

Question 5

Explain why direct mail and catalogs are an attractive form of retailing.

Accepted Answer

Direct-mail and catalog retailing are "t

Question 6

The calculation for same-store sales growth is

Accepted Answer

A)  Total sales ÷ Selling area in square feet. 
B)  (Store sales in year 3 ÷ Store sales in year 1). 
C)  Store sales in year 1 ÷ (Store sales in year 2 - Store sales in year 1). 
D)  (Store sales in year 2 - Store sales in year 1). ÷ Store sales in year 1. 
E)  Store 1 square feet ÷ Store 2 square feet. 
A)  Total sales ÷ Selling area in square feet. 
B)  (Store sales in year 3 ÷ Store sales in year 1). 
C)  Store sales in year 1 ÷ (Store sales in year 2 - Store sales in year 1). 
D)  (Store sales in year 2 - Store sales in year 1). ÷ Store sales in year 1. 
E)  Store 1 square feet ÷ Store 2 square feet.

Question 7

Timing is an important element of markdowns. Those retailers who take a markdown as soon as sales fall off most likely are doing so to

Accepted Answer

A)  placate dissatisfied customers. 
B)  enhance customer perceptions of product quality. 
C)  free up valuable selling space and cash. 
D)  create an image as a cutting-edge retailer. 
E)  react to the entry of a new competitor. 
A)  placate dissatisfied customers. 
B)  enhance customer perceptions of product quality. 
C)  free up valuable selling space and cash. 
D)  create an image as a cutting-edge retailer. 
E)  react to the entry of a new competitor.

Question 8

Some experts suggest that television shopping programs are becoming a modern version of ________ by combining elements of reality TV programs, talk shows, and infomercials.

Accepted Answer

A)  augmented reality 
B)  door-to-door retailing 
C)  telemarketing 
D)  direct-response wholesaling 
E)  indirect selling 
A)  augmented reality 
B)  door-to-door retailing 
C)  telemarketing 
D)  direct-response wholesaling 
E)  indirect selling

Question 9

A regional shopping center refers to a

Accepted Answer

A)  retail cluster in a downtown area. 
B)  retail location that typically has one primary store and about 20 to 40 smaller outlets, and serves a population base of about 100,000. 
C)  cluster of stores that serves people who are within a 5- to 10-minute drive and serves a population base of under 30,000. 
D)  group of 50 to 150 stores that typically attracts customers who live or work within a 5- to 10-mile range, often containing two or three anchor stores. 
E)  retail cluster of stores in uptown areas. 
A)  retail cluster in a downtown area. 
B)  retail location that typically has one primary store and about 20 to 40 smaller outlets, and serves a population base of about 100,000. 
C)  cluster of stores that serves people who are within a 5- to 10-minute drive and serves a population base of under 30,000. 
D)  group of 50 to 150 stores that typically attracts customers who live or work within a 5- to 10-mile range, often containing two or three anchor stores. 
E)  retail cluster of stores in uptown areas.

Question 10

Sales per square foot is calculated by dividing

Accepted Answer

A)  profit margin by selling area in square feet. 
B)  gross profit by selling area in square feet. 
C)  total sales by selling area in square feet. 
D)  return on investment by selling area in square feet. 
E)  net sales by selling area in square feet. 
A)  profit margin by selling area in square feet. 
B)  gross profit by selling area in square feet. 
C)  total sales by selling area in square feet. 
D)  return on investment by selling area in square feet. 
E)  net sales by selling area in square feet.

Question 11

Wholesalers that carry a broad assortment of merchandise and perform all channel functions are referred to as a

Accepted Answer

A)  limited-line wholesaler. 
B)  drop shipper. 
C)  rack jobber. 
D)  specialty merchandise wholesaler. 
E)  general merchandise wholesaler. 
A)  limited-line wholesaler. 
B)  drop shipper. 
C)  rack jobber. 
D)  specialty merchandise wholesaler. 
E)  general merchandise wholesaler.

Question 12

Bloomingdale's stores are part of the Macy's

Accepted Answer

A)  corporate chain. 
B)  consumer cooperative. 
C)  contractual system. 
D)  retail conglomerate. 
E)  administered system. 
A)  corporate chain. 
B)  consumer cooperative. 
C)  contractual system. 
D)  retail conglomerate. 
E)  administered system.

Question 13

Similar to the West Edmonton Mall in Alberta, Canada, with shopping, restaurants, hotels, and a theme park, the Mall of America is a variation of

Accepted Answer

A)  a central business district. 
B)  a regional shopping center. 
C)  an entertainment district. 
D)  a destination mall concept. 
E)  an anchored mall. 
A)  a central business district. 
B)  a regional shopping center. 
C)  an entertainment district. 
D)  a destination mall concept. 
E)  an anchored mall.

Question 14

Unlike merchant wholesalers, agents, and brokers, manufacturers' branches and sales offices are ________ that perform wholesaling activities.

Accepted Answer

A)  independent distribution managers 
B)  independent intermediary channels 
C)  wholly owned extensions of the producer 
D)  wholly owned extensions of the distributor 
E)  wholly owned extensions of the retailer 
A)  independent distribution managers 
B)  independent intermediary channels 
C)  wholly owned extensions of the producer 
D)  wholly owned extensions of the distributor 
E)  wholly owned extensions of the retailer

Question 15

An IKEA mail order catalog is an example of ________ retailing.

Accepted Answer

A)  intrusive 
B)  intertype 
C)  scrambled 
D)  nonstore 
E)  hypermarket 
A)  intrusive 
B)  intertype 
C)  scrambled 
D)  nonstore 
E)  hypermarket

Question 16

Large shopping areas often contain two or three ________ stores, which are well-known national or regional stores such as Nordstrom, Saks Fifth Avenue, and Bloomingdale's.

Accepted Answer

A)  power 
B)  mega 
C)  anchor 
D)  value 
E)  outlet 
A)  power 
B)  mega 
C)  anchor 
D)  value 
E)  outlet

Question 17

Using the telephone to interact with and sell directly to consumers is referred to as

Accepted Answer

A)  digital marketing. 
B)  telemarketing. 
C)  solicitation marketing. 
D)  telecommerce. 
E)  direct selling. 
A)  digital marketing. 
B)  telemarketing. 
C)  solicitation marketing. 
D)  telecommerce. 
E)  direct selling.

Question 18

Enterprise car rental agency differentiates itself from other similar agencies by providing a delivery service. This delivery service is particularly valuable to someone who has been left stranded without transportation. By making it easy to rent temporary transportation, Enterprise is emphasizing which utility?

Accepted Answer

A)  form 
B)  product 
C)  service 
D)  possession 
E)  convenience 
A)  form 
B)  product 
C)  service 
D)  possession 
E)  convenience

Question 19

Aeon, Carrefour, Tesco, and Metro Group are

Accepted Answer

A)  sizable wholesalers that handle products for the world's largest retailers. 
B)  new Internet start-ups that have the potential to impact the U.S. economy. 
C)  large retailers outside of the United States. 
D)  large distributors of business products. 
E)  historic companies that developed consumer selling systems, though none of them exist today. 
A)  sizable wholesalers that handle products for the world's largest retailers. 
B)  new Internet start-ups that have the potential to impact the U.S. economy. 
C)  large retailers outside of the United States. 
D)  large distributors of business products. 
E)  historic companies that developed consumer selling systems, though none of them exist today.

Question 20

Explain the global impact of retailing.

Accepted Answer

Retailing is important to the U.S. and g

Exam 16: Retailing and Wholesaling

The difference between the retailer's cost and the initial selling price is referred to as the

Multichannel retailers are retailers that

Discounting generally takes place during which stage of the retail life cycle?

Which type of wholesaler traditionally sells hosiery, toys, and health and beauty items?

Explain why direct mail and catalogs are an attractive form of retailing.

The calculation for same-store sales growth is

Timing is an important element of markdowns. Those retailers who take a markdown as soon as sales fall off most likely are doing so to

Some experts suggest that television shopping programs are becoming a modern version of ________ by combining elements of reality TV programs, talk shows, and infomercials.

A regional shopping center refers to a

Sales per square foot is calculated by dividing

Wholesalers that carry a broad assortment of merchandise and perform all channel functions are referred to as a

Bloomingdale's stores are part of the Macy's

Similar to the West Edmonton Mall in Alberta, Canada, with shopping, restaurants, hotels, and a theme park, the Mall of America is a variation of

Unlike merchant wholesalers, agents, and brokers, manufacturers' branches and sales offices are ________ that perform wholesaling activities.

An IKEA mail order catalog is an example of ________ retailing.

Large shopping areas often contain two or three ________ stores, which are well-known national or regional stores such as Nordstrom, Saks Fifth Avenue, and Bloomingdale's.

Using the telephone to interact with and sell directly to consumers is referred to as

Aeon, Carrefour, Tesco, and Metro Group are

Explain the global impact of retailing.

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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