Question 1

Off-price stores that attract customers who want very low prices but in a "corner store" environment rather than a large supercenter experience are referred to as

Accepted Answer

A)  extreme-value retailers. 
B)  hypermarkets. 
C)  warehouse clubs. 
D)  outlet stores. 
E)  everyday value retailers. 
A)  extreme-value retailers. 
B)  hypermarkets. 
C)  warehouse clubs. 
D)  outlet stores. 
E)  everyday value retailers.

Question 2

Gas stations, supermarkets, and airlines that have automated check-out or check-in terminals are providing what level of retail service?

Accepted Answer

A)  full-service 
B)  limited-service 
C)  customized-service 
D)  self-service 
E)  automated-service 
A)  full-service 
B)  limited-service 
C)  customized-service 
D)  self-service 
E)  automated-service

Question 3

The largest inventory of wedding dresses in the Southeast can be found at Low's Bridal and Formal in Brinkley, Arkansas. From December 26 to January 16, a prospective bride shopping at Low's can find gowns once priced at $6,000 for $2,999 and $800 gowns for $399. The reduced prices of these gowns are reflected in which retail pricing strategy?

Accepted Answer

A)  markdowns 
B)  original markups 
C)  future markups 
D)  inventory shrinkages 
E)  net markups 
A)  markdowns 
B)  original markups 
C)  future markups 
D)  inventory shrinkages 
E)  net markups

Question 4

Intertype competition refers to competition between

Accepted Answer

A)  very similar types of retail outlets that results from a single-product/single-line merchandising policy. 
B)  retailers when the types of items they sell are virtually indistinguishable from one another. 
C)  national and generic brands that are sold side by side in a retail outlet. 
D)  retailers located in separate quadrants of the retail positioning matrix. 
E)  very dissimilar types of retail outlets that practice scrambled merchandising. 
A)  very similar types of retail outlets that results from a single-product/single-line merchandising policy. 
B)  retailers when the types of items they sell are virtually indistinguishable from one another. 
C)  national and generic brands that are sold side by side in a retail outlet. 
D)  retailers located in separate quadrants of the retail positioning matrix. 
E)  very dissimilar types of retail outlets that practice scrambled merchandising.

Question 5

Explain the relationship between a franchisee and a franchisor.

Accepted Answer

In a franchise system, an individual or

Question 6

Which type of outlet is most likely in its early growth stage of the retail life cycle?

Accepted Answer

A)  single-price stores 
B)  catalog retailers 
C)  supermarkets 
D)  general stores 
E)  automated (no check-out) stores 
A)  single-price stores 
B)  catalog retailers 
C)  supermarkets 
D)  general stores 
E)  automated (no check-out) stores

Question 7

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

Accepted Answer

A)  the cost of carrying inventory 
B)  the inventory turnover 
C)  the average number of items per transaction 
D)  the number of returns 
E)  the average length of a store visit 
A)  the cost of carrying inventory 
B)  the inventory turnover 
C)  the average number of items per transaction 
D)  the number of returns 
E)  the average length of a store visit

Question 8

Your local Target retailer carries a variety of different items. You can find everything ranging from socks and electronics to baby items and groceries. This is an example of the ________ carried by Target.

Accepted Answer

A)  breadth of product line 
B)  depth of product line 
C)  variety of brand extension 
D)  breadth of product class 
E)  product mix 
A)  breadth of product line 
B)  depth of product line 
C)  variety of brand extension 
D)  breadth of product class 
E)  product mix

Question 9

General merchandise wholesalers

Accepted Answer

A)  carry a broad assortment of merchandise and perform all channel functions. 
B)  own the merchandise they sell but do not physically handle, stock, or deliver it. 
C)  have a small warehouse from which they stock their trucks for distribution to retailers. 
D)  work for several producers, carry noncompetitive, complementary merchandise in an exclusive territory, and use over-the-road transportation for all product deliveries. 
E)  deal exclusively with small low-cost consumer products that are distributed to a select number of large retail chains. 
A)  carry a broad assortment of merchandise and perform all channel functions. 
B)  own the merchandise they sell but do not physically handle, stock, or deliver it. 
C)  have a small warehouse from which they stock their trucks for distribution to retailers. 
D)  work for several producers, carry noncompetitive, complementary merchandise in an exclusive territory, and use over-the-road transportation for all product deliveries. 
E)  deal exclusively with small low-cost consumer products that are distributed to a select number of large retail chains.

Question 10

Which type of outlet is most likely in its decline stage of the retail life cycle?

Accepted Answer

A)  single-price stores 
B)  single-brand stores 
C)  online retailers 
D)  business district retailers 
E)  convenience stores 
A)  single-price stores 
B)  single-brand stores 
C)  online retailers 
D)  business district retailers 
E)  convenience stores

Question 11

All activities involved in selling, renting, and providing products and services to ultimate consumers for personal, family, or household use are referred to as

Accepted Answer

A)  manufacturing. 
B)  retailing. 
C)  wholesaling. 
D)  facilitating. 
E)  logistics. 
A)  manufacturing. 
B)  retailing. 
C)  wholesaling. 
D)  facilitating. 
E)  logistics.

Question 12

Walmart has developed a sophisticated inventory management and cost control system that allows rapid price changes for each product in the store. The firm also uses technologies such as ________ to improve the quality of information available about the shopping experience in their stores .

Accepted Answer

A)  radio frequency identification (RFI
D)  tags 
B)  encapsulation techniques 
C)  bar code scanners 
D)  nanotechnology 
E)  cookies 
A)  radio frequency identification (RFI
D)  tags 
B)  encapsulation techniques 
C)  bar code scanners 
D)  nanotechnology 
E)  cookies

Question 13

When retailers set prices on new models or styles of products, the price of existing models often is ________ to quickly sell them.

Accepted Answer

A)  benchmarked 
B)  off-priced 
C)  value-added 
D)  marked down 
E)  maintained 
A)  benchmarked 
B)  off-priced 
C)  value-added 
D)  marked down 
E)  maintained

Question 14

Both market share and profit achieve their greatest growth rates during which stage of the retail life cycle?

Accepted Answer

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

Question 15

Albertsons Grocery Store accepts debit and credit cards as well as cash and checks for purchases. Its acceptance of various forms of payment provides its customers with ________ utility.

Accepted Answer

A)  time 
B)  place 
C)  possession 
D)  form 
E)  public 
A)  time 
B)  place 
C)  possession 
D)  form 
E)  public

Question 16

The level of service that requires the customers themselves perform many functions during the purchase process is

Accepted Answer

A)  full-service. 
B)  limited-service. 
C)  self-service. 
D)  customized-service. 
E)  automated-service. 
A)  full-service. 
B)  limited-service. 
C)  self-service. 
D)  customized-service. 
E)  automated-service.

Question 17

Which of these statements best describes the key difference between merchant wholesalers and agents and brokers?

Accepted Answer

A)  Merchant wholesalers don't perform all channel functions, whereas agents and brokers do. 
B)  Agents and brokers only deal with consumer channels. 
C)  Agents and brokers make their profits based on the sales of merchandise they own, while merchant wholesalers make profits based on fees paid for their services. 
D)  Merchant wholesalers take title to merchandise, whereas agents and brokers do not. 
E)  Agents and brokers take title to merchandise, whereas merchant wholesalers do not. 
A)  Merchant wholesalers don't perform all channel functions, whereas agents and brokers do. 
B)  Agents and brokers only deal with consumer channels. 
C)  Agents and brokers make their profits based on the sales of merchandise they own, while merchant wholesalers make profits based on fees paid for their services. 
D)  Merchant wholesalers take title to merchandise, whereas agents and brokers do not. 
E)  Agents and brokers take title to merchandise, whereas merchant wholesalers do not.

Question 18

A retail outlet that focuses on one type of product at very competitive or discount prices and often dominates the market is referred to as a

Accepted Answer

A)  general merchandise store. 
B)  value outlet. 
C)  hypermarket. 
D)  category killer. 
E)  department store. 
A)  general merchandise store. 
B)  value outlet. 
C)  hypermarket. 
D)  category killer. 
E)  department store.

Question 19

Consumers often view central business district shopping as less convenient because of the lack of parking, higher crime rates, and

Accepted Answer

A)  outdated stores. 
B)  a lack of ambience. 
C)  fewer quality restaurants. 
D)  few public restrooms. 
E)  exposure to the weather. 
A)  outdated stores. 
B)  a lack of ambience. 
C)  fewer quality restaurants. 
D)  few public restrooms. 
E)  exposure to the weather.

Question 20

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 planned to sell them for $100 each. Recently, however, sales have been a bit slow. Jane decides to reduce the price for the frames to $80. What is her maintained markup in dollar terms?

Accepted Answer

A)  $100 
B)  $20 
C)  $44 
D)  $64 
E)  $0 
A)  $100 
B)  $20 
C)  $44 
D)  $64 
E)  $0

Exam 16: Retailing and Wholesaling

Off-price stores that attract customers who want very low prices but in a "corner store" environment rather than a large supercenter experience are referred to as

Gas stations, supermarkets, and airlines that have automated check-out or check-in terminals are providing what level of retail service?

Intertype competition refers to competition between

Explain the relationship between a franchisee and a franchisor.

Which type of outlet is most likely in its early growth stage of the retail life cycle?

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

Your local Target retailer carries a variety of different items. You can find everything ranging from socks and electronics to baby items and groceries. This is an example of the ________ carried by Target.

General merchandise wholesalers

Which type of outlet is most likely in its decline stage of the retail life cycle?

All activities involved in selling, renting, and providing products and services to ultimate consumers for personal, family, or household use are referred to as

Walmart has developed a sophisticated inventory management and cost control system that allows rapid price changes for each product in the store. The firm also uses technologies such as ________ to improve the quality of information available about the shopping experience in their stores .

When retailers set prices on new models or styles of products, the price of existing models often is ________ to quickly sell them.

Both market share and profit achieve their greatest growth rates during which stage of the retail life cycle?

Albertsons Grocery Store accepts debit and credit cards as well as cash and checks for purchases. Its acceptance of various forms of payment provides its customers with ________ utility.

The level of service that requires the customers themselves perform many functions during the purchase process is

Which of these statements best describes the key difference between merchant wholesalers and agents and brokers?

A retail outlet that focuses on one type of product at very competitive or discount prices and often dominates the market is referred to as a

Consumers often view central business district shopping as less convenient because of the lack of parking, higher crime rates, and

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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