Question 1

Why do stores cluster together?

Accepted Answer

A) to decrease competition 
B) to increase their customer pulling power 
C) to take advantage of tax breaks 
D) to create franchise organizations 
E) to standardize product assortment 
A) to decrease competition 
B) to increase their customer pulling power 
C) to take advantage of tax breaks 
D) to create franchise organizations 
E) to standardize product assortment

Question 2

Which of the following differentiates between an outlet mall and a value-retail center?

Accepted Answer

A) An outlet mall stocks convenience goods, while a value-retail center sells luxury goods. 
B) An outlet mall sells its products on par with the retail prices, while a value-retail center charges rates that are slightly below the retail prices. 
C) An outlet mall consists primarily of the manufacturers' outlets, while a value-retail center combines manufacturers' outlets with off-price retail stores and department store clearance outlets. 
D) An outlet mall is managed by buying and selling agents, while a value-retail center has employees who belong to the manufacturer's organization as bonafide employees. 
E) An outlet mall is a type of off-price retailing, while a value-retail center is an example of designer shops that have high markups and low volume. 
A) An outlet mall stocks convenience goods, while a value-retail center sells luxury goods. 
B) An outlet mall sells its products on par with the retail prices, while a value-retail center charges rates that are slightly below the retail prices. 
C) An outlet mall consists primarily of the manufacturers' outlets, while a value-retail center combines manufacturers' outlets with off-price retail stores and department store clearance outlets. 
D) An outlet mall is managed by buying and selling agents, while a value-retail center has employees who belong to the manufacturer's organization as bonafide employees. 
E) An outlet mall is a type of off-price retailing, while a value-retail center is an example of designer shops that have high markups and low volume.

Question 3

Posco Retail is a limited-service retail chain with over a hundred stores across the country which is seeking to improve its standing in the market.Since its operations are widespread,altering the store atmosphere significantly may not be feasible because of the costs involved.Similarly,upgrading the stores to a full-service retail chain requires large investments of time,effort,and lost man hours in training.Assuming that many of Posco Retail's private-label brands are bringing in large revenues,what strategy could Posco Retail use to differentiate itself while matching target shoppers' expectations?

Accepted Answer

(Students' answers may vary.The answer g

Question 4

Retail convergence means greater competition for retailers and greater difficulty in differentiating offerings.

Accepted Answer

A) True 
 B)False

Question 5

In the case of ________ customers pay annual membership fees and are able to purchase goods at deep discounts.

Accepted Answer

A) warehouse clubs 
B) independent off-price retailers 
C) factory outlets 
D) specialty stores 
E) superstores 
A) warehouse clubs 
B) independent off-price retailers 
C) factory outlets 
D) specialty stores 
E) superstores

Question 6

________ represent buyers or sellers on a more permanent basis than brokers.

Accepted Answer

A) Distributors 
B) Franchisees 
C) Agents 
D) Retailers 
E) Intermediaries 
A) Distributors 
B) Franchisees 
C) Agents 
D) Retailers 
E) Intermediaries

Question 7

Explain how wholesalers add value for a producer.

Accepted Answer

Wholesalers add value by performing one

Question 8

Category killers carry a deep assortment of a particular product line and have a knowledgeable staff.

Accepted Answer

A) True 
 B)False

Question 9

Cash-and-carry wholesalers provide full service,beginning from sourcing the raw material and ending with delivery.

Accepted Answer

A) True 
 B)False

Question 10

Flax is a chain of stores that carries several product lines including clothing,home furnishing,and household goods,with each line operated as a separate department dedicated to the motto of customer satisfaction.Flax is most likely a(n)________.

Accepted Answer

A) self-service retailer 
B) limited-service retailer 
C) full-service retailer 
D) basic-service retailer 
E) off-price retailer 
A) self-service retailer 
B) limited-service retailer 
C) full-service retailer 
D) basic-service retailer 
E) off-price retailer

Question 11

Campbell Retail is one of the oldest retailers in the country with a characteristic no-frills look to all its stores.While the service offered at Campbell stores is fairly mediocre,Campbell Retail is famous for surprise offerings of seconds,overstocks,and closeouts-occasionally including expensive gadgets and jewelry.Which of the following statements,if true,would strengthen the argument that Campbell Retail should use product assortment,rather than the variables of services mix and store atmosphere to differentiate its services?

Accepted Answer

A) Campbell Retail is the only company that offers limited-service retailing among its competitors. 
B) Campbell has stores in 132 locations across the country with many of these locations housing multiple stores. 
C) Campbell Retail believes that modifying its stores to incorporate the notion of experiential retailing is imperative because all of its new competitors have better ratings on the variable for store atmosphere. 
D) Campbell Retail has numerous private-label brands that enjoy substantial brand loyalty in the minds of its customers. 
E) Campbell Retail possesses highly qualified manpower that helps its limited service approach to retailing. 
A) Campbell Retail is the only company that offers limited-service retailing among its competitors. 
B) Campbell has stores in 132 locations across the country with many of these locations housing multiple stores. 
C) Campbell Retail believes that modifying its stores to incorporate the notion of experiential retailing is imperative because all of its new competitors have better ratings on the variable for store atmosphere. 
D) Campbell Retail has numerous private-label brands that enjoy substantial brand loyalty in the minds of its customers. 
E) Campbell Retail possesses highly qualified manpower that helps its limited service approach to retailing.

Question 12

Specialty stores are characterized by the ________.

Accepted Answer

A) sale of convenience and staple items 
B) narrow product lines with deep assortments 
C) wide range of products and categories 
D) lowest prices for a wide range of goods 
E) practice of everyday low pricing 
A) sale of convenience and staple items 
B) narrow product lines with deep assortments 
C) wide range of products and categories 
D) lowest prices for a wide range of goods 
E) practice of everyday low pricing

Question 13

Customers at Carat,a premium jewelry store,are encouraged to call and take an appointment before a visit so that a customer service representative is assigned to them.These representatives help every customer make a purchase that meets his or her needs and budget after considering numerous options.The different styles,carat values,and special features of the jewelry are explained to each customer to aid the purchase decision.Carat is a ________.

Accepted Answer

A) self-service retailer 
B) limited-service retailer 
C) full-service retailer 
D) basic-service retailer 
E) value-retail store 
A) self-service retailer 
B) limited-service retailer 
C) full-service retailer 
D) basic-service retailer 
E) value-retail store

Question 14

McPherson's,an ice cream joint,recently entered into an agreement by which it allowed independent businesspeople at select stores and locations across the country to sell its famous ice creams and milk shakes for a monetary consideration.The argument that the agreement was a franchise agreement is strengthened by the fact that ________.

Accepted Answer

A) McPherson's is a part of a corporate chain that prevents it from forming business alliances autonomously 
B) McPherson's is a department store that is trying to avoid the wheel-of-retailing 
C) McPherson's products are in the introductory stage of the product life cycle 
D) McPherson's is a company that enjoys substantial goodwill and security in the market 
E) McPherson's competitors have entirely different product lines and mixes 
A) McPherson's is a part of a corporate chain that prevents it from forming business alliances autonomously 
B) McPherson's is a department store that is trying to avoid the wheel-of-retailing 
C) McPherson's products are in the introductory stage of the product life cycle 
D) McPherson's is a company that enjoys substantial goodwill and security in the market 
E) McPherson's competitors have entirely different product lines and mixes

Question 15

A department store is characterized by a ________.

Accepted Answer

A) narrow product line 
B) product line that primarily stocks specialty goods 
C) predatory pricing strategy 
D) deep assortment in every single product category 
E) product line-up of clothing, home furnishings, and household goods 
A) narrow product line 
B) product line that primarily stocks specialty goods 
C) predatory pricing strategy 
D) deep assortment in every single product category 
E) product line-up of clothing, home furnishings, and household goods

Question 16

McDonald's,Subway,and Pizza Hut are all examples of ________ organizations.

Accepted Answer

A) voluntary 
B) retailer cooperative 
C) franchise 
D) no-service 
E) corporate chain 
A) voluntary 
B) retailer cooperative 
C) franchise 
D) no-service 
E) corporate chain

Question 17

________ includes all the activities involved in selling products or services directly to final consumers for their personal,nonbusiness use.

Accepted Answer

A) Sole sourcing 
B) Retailing 
C) Manufacturing 
D) Supplying 
E) Segmentation 
A) Sole sourcing 
B) Retailing 
C) Manufacturing 
D) Supplying 
E) Segmentation

Question 18

What is retailing? Explain the concept of shopper marketing.

Accepted Answer

Retailing includes all the activities in

Question 19

Jacob Kendler works in the wholesale business for specific types of industrial goods needed in the automobile industry.Jacob's job involves locating and contacting potential buyers and sellers and facilitating the negotiation process.Which of the following,if true,would strengthen the argument that Jacob works as an agent,and not a merchant wholesaler?

Accepted Answer

A) Jacob runs an independently owned business. 
B) Jacob is an employee of an organization producing automobiles. 
C) Jacob represents his company but is not liable for any damage or low-quality goods. 
D) Jacob works in a highly specialized market and does not venture into other product categories. 
E) Jacob provides a full set of services ranging from locating sellers to delivering goods. 
A) Jacob runs an independently owned business. 
B) Jacob is an employee of an organization producing automobiles. 
C) Jacob represents his company but is not liable for any damage or low-quality goods. 
D) Jacob works in a highly specialized market and does not venture into other product categories. 
E) Jacob provides a full set of services ranging from locating sellers to delivering goods.

Question 20

Purchasing officers differ from purchasing agents in that ________.

Accepted Answer

A) purchasing officers handle nonperishable items only 
B) purchasing agents take title to the goods 
C) purchasing officers are a part of the buyer's organization 
D) purchasing agents are not obliged to negotiate for best prices of goods 
E) purchasing agents have the contractual authority to sell a manufacturer's entire output 
A) purchasing officers handle nonperishable items only 
B) purchasing agents take title to the goods 
C) purchasing officers are a part of the buyer's organization 
D) purchasing agents are not obliged to negotiate for best prices of goods 
E) purchasing agents have the contractual authority to sell a manufacturer's entire output

Why do stores cluster together?

Which of the following differentiates between an outlet mall and a value-retail center?

Retail convergence means greater competition for retailers and greater difficulty in differentiating offerings.

In the case of ________ customers pay annual membership fees and are able to purchase goods at deep discounts.

________ represent buyers or sellers on a more permanent basis than brokers.

Explain how wholesalers add value for a producer.

Category killers carry a deep assortment of a particular product line and have a knowledgeable staff.

Cash-and-carry wholesalers provide full service,beginning from sourcing the raw material and ending with delivery.

Flax is a chain of stores that carries several product lines including clothing,home furnishing,and household goods,with each line operated as a separate department dedicated to the motto of customer satisfaction.Flax is most likely a(n)________.

Specialty stores are characterized by the ________.

A department store is characterized by a ________.

McDonald's,Subway,and Pizza Hut are all examples of ________ organizations.

________ includes all the activities involved in selling products or services directly to final consumers for their personal,nonbusiness use.

What is retailing? Explain the concept of shopper marketing.

Purchasing officers differ from purchasing agents in that ________.

Marketing Creating and Capturing Customer Value

Company and Marketing Strategy: Partnering to Build Customer Relationships

Analyzing the Marketing Environment

Managing Marketing Information to Gain Customer Insights

Understanding Consumer and Business Buyer Behavior

Customer-Driven Marketing Strategy: Creating Value for Target Customers

Product,Services,and Brands: Building Customer Value

Developing New Products and Managing the Product Life Cycle

Pricing: Understanding and Capturing Customer Value

Marketing Channels Delivering Customer Value

Communicating Customer Value

Personal Selling and Sales Promotion

Direct and Online Marketing: Building Direct Customer Relationships

The Global Marketplace

Sustainable Marketing: Social Responsibility and Ethics

Filters

Exam 11: Retailing and Wholesaling

Why do stores cluster together?

Which of the following differentiates between an outlet mall and a value-retail center?

Retail convergence means greater competition for retailers and greater difficulty in differentiating offerings.

In the case of ________ customers pay annual membership fees and are able to purchase goods at deep discounts.

________ represent buyers or sellers on a more permanent basis than brokers.

Explain how wholesalers add value for a producer.

Category killers carry a deep assortment of a particular product line and have a knowledgeable staff.

Cash-and-carry wholesalers provide full service,beginning from sourcing the raw material and ending with delivery.

Flax is a chain of stores that carries several product lines including clothing,home furnishing,and household goods,with each line operated as a separate department dedicated to the motto of customer satisfaction.Flax is most likely a(n)________.

Specialty stores are characterized by the ________.

A department store is characterized by a ________.

McDonald's,Subway,and Pizza Hut are all examples of ________ organizations.

________ includes all the activities involved in selling products or services directly to final consumers for their personal,nonbusiness use.

What is retailing? Explain the concept of shopper marketing.

Purchasing officers differ from purchasing agents in that ________.

Marketing Creating and Capturing Customer Value

Company and Marketing Strategy: Partnering to Build Customer Relationships

Analyzing the Marketing Environment

Managing Marketing Information to Gain Customer Insights

Understanding Consumer and Business Buyer Behavior

Customer-Driven Marketing Strategy: Creating Value for Target Customers

Product,Services,and Brands: Building Customer Value

Developing New Products and Managing the Product Life Cycle

Pricing: Understanding and Capturing Customer Value

Marketing Channels Delivering Customer Value

Communicating Customer Value

Personal Selling and Sales Promotion

Direct and Online Marketing: Building Direct Customer Relationships

The Global Marketplace

Sustainable Marketing: Social Responsibility and Ethics

Filters