Question 1

Which of the following types of retail stores almost always avoids price competition?

Accepted Answer

A)  specialty store 
B)  off-price retailer 
C)  supermarket 
D)  category-killer store 
E)  warehouse club 
A)  specialty store 
B)  off-price retailer 
C)  supermarket 
D)  category-killer store 
E)  warehouse club

Question 2

Which types of firms are currently engaged in online retailing?

Accepted Answer

A)  merchants that specialize in one product category 
B)  merchants that specialize in one brand of product 
C)  existing merchants that are trying to reach ultimate consumers through a new medium 
D)  new merchants that must create consumer awareness of their websites where they offer products for sale 
E)  all of the above 
A)  merchants that specialize in one product category 
B)  merchants that specialize in one brand of product 
C)  existing merchants that are trying to reach ultimate consumers through a new medium 
D)  new merchants that must create consumer awareness of their websites where they offer products for sale 
E)  all of the above

Question 3

Why have many supermarkets added various nonfood items to their product assortments?

Accepted Answer

A)  to de-emphasize customer service 
B)  to counter competitive pressure from Wal-Mart and other giant discount chains 
C)  to reduce inventory turnover 
D)  to move away from price competition 
E)  to do all of the above 
A)  to de-emphasize customer service 
B)  to counter competitive pressure from Wal-Mart and other giant discount chains 
C)  to reduce inventory turnover 
D)  to move away from price competition 
E)  to do all of the above

Question 4

Which of the following market segments is LEAST likely to regularly shop at a warehouse club?

Accepted Answer

A)  credit union members 
B)  independent motel owners 
C)  college students 
D)  high school guidance counselors 
E)  federal government employees 
A)  credit union members 
B)  independent motel owners 
C)  college students 
D)  high school guidance counselors 
E)  federal government employees

Question 5

Last week Loretta was invited to a party during which the hostess brought out Michele Baratta jewelry for her guests to look at and buy. Loretta experienced:

Accepted Answer

A)  in-store retailing. 
B)  catalog retailing. 
C)  direct selling. 
D)  automatic vending. 
E)  off-price retailing. 
A)  in-store retailing. 
B)  catalog retailing. 
C)  direct selling. 
D)  automatic vending. 
E)  off-price retailing.

Question 6

Which of the following statements about retailing is True?

Accepted Answer

A)  By definition, sales made by farmers or manufacturers are not retail sales. 
B)  It is difficult to become a retailer. 
C)  Retailing is done only through retail stores. 
D)  Small retailers have the same buying, promotion, staffing, and expense control strategies as large retailers. 
E)  None of the above statements about retailing is True. 
A)  By definition, sales made by farmers or manufacturers are not retail sales. 
B)  It is difficult to become a retailer. 
C)  Retailing is done only through retail stores. 
D)  Small retailers have the same buying, promotion, staffing, and expense control strategies as large retailers. 
E)  None of the above statements about retailing is True.

Question 7

A _____ _____ is a combined retailing and wholesaling institution with a very broad but very shallow  product assortment, extremely low prices, and few customer services.

Accepted Answer

The answer of A _____ _____ is a combined retailing...

Question 8

In a _____ _____ _____ _____, independently owned firms join together under a contract specifying how  they will operate.

Accepted Answer

contractua

Question 9

Suits, shorts, swimsuits, and underwear are classified as ______, while refrigerators, televisions, and sofas are classified as _____.

Accepted Answer

A)  soft goods; hard goods 
B)  low-margin; high margin 
C)  low ROI; high ROI 
D)  hard goods; soft goods 
E)  high margin; low margin 
A)  soft goods; hard goods 
B)  low-margin; high margin 
C)  low ROI; high ROI 
D)  hard goods; soft goods 
E)  high margin; low margin

Question 10

Which of the following statements about off-price retailers is True?

Accepted Answer

A)  Factory outlets are a special type of off-price retailer. 
B)  Off-price retailers typically offer few customer services. 
C)  Off-price retailers feature narrow, but deep product assortments. 
D)  To the extent possible, off-price retailers focus on well-known producers' brands. 
E)  All of the above statements about off-price retailers are True. 
A)  Factory outlets are a special type of off-price retailer. 
B)  Off-price retailers typically offer few customer services. 
C)  Off-price retailers feature narrow, but deep product assortments. 
D)  To the extent possible, off-price retailers focus on well-known producers' brands. 
E)  All of the above statements about off-price retailers are True.

Question 11

How does a businessperson benefit when he or she buys a franchise?

Accepted Answer

A)  The franchisee can modify the franchisor's proven format. 
B)  The franchisee relies on his or her own common sense in making strategic decisions. 
C)  The franchisee is required to make no initial investment. 
D)  The franchisor provides assistance in deciding on site location, layout, and promotions. 
E)  Franchisors often predict high revenues and profits. 
A)  The franchisee can modify the franchisor's proven format. 
B)  The franchisee relies on his or her own common sense in making strategic decisions. 
C)  The franchisee is required to make no initial investment. 
D)  The franchisor provides assistance in deciding on site location, layout, and promotions. 
E)  Franchisors often predict high revenues and profits.

Question 12

Subway, 7-Eleven, Sylvan Learning Center, and Arthur Murray School of Dance are all examples of  _____ _____ franchising.

Accepted Answer

The answer of Subway, 7-Eleven, Sylvan Learning Center, and Arthur...

Question 13

Off-price retailers typically sell both manufacturers' and private brands.

Accepted Answer

A) True 
 B)False

Question 14

Which of the following statements about franchising is True?

Accepted Answer

A)  Franchisees seldom provide any marketing assistance. 
B)  Interest in franchising is declining. 
C)  In business format franchising, the franchisor, by definition, is always a manufacturer. 
D)  Franchising is a form of horizontal integration. 
E)  None of the above statements is True. 
A)  Franchisees seldom provide any marketing assistance. 
B)  Interest in franchising is declining. 
C)  In business format franchising, the franchisor, by definition, is always a manufacturer. 
D)  Franchising is a form of horizontal integration. 
E)  None of the above statements is True.

Question 15

How do supercenters differ from the more traditional discount stores?

Accepted Answer

A)  Supercenters look more like warehouses. 
B)  Supercenters have lower markups. 
C)  Supercenters have lower operating costs. 
D)  Supercenters have lower gross margins. 
E)  Supercenters offer a broader assortment of merchandise. 
A)  Supercenters look more like warehouses. 
B)  Supercenters have lower markups. 
C)  Supercenters have lower operating costs. 
D)  Supercenters have lower gross margins. 
E)  Supercenters offer a broader assortment of merchandise.

Question 16

You would most likely find a manufacturer's excess output, seconds, inventory remaining at the end of a season, and irregular merchandise being sold at a(n):

Accepted Answer

A)  off-price retailer. 
B)  department store. 
C)  warehouse club. 
D)  specialty store. 
E)  convenience store. 
A)  off-price retailer. 
B)  department store. 
C)  warehouse club. 
D)  specialty store. 
E)  convenience store.

Question 17

Don Quijote is a leading Japanese discount retailer. As a discount retailer, Don Quijote would probably:

Accepted Answer

A)  only sell wearing apparel. 
B)  be unable to successfully compete against department stores. 
C)  have a very narrow product assortment. 
D)  offer relatively few customer services. 
E)  have a very deep product mix. 
A)  only sell wearing apparel. 
B)  be unable to successfully compete against department stores. 
C)  have a very narrow product assortment. 
D)  offer relatively few customer services. 
E)  have a very deep product mix.

Question 18

Various forms of management assistance are provided to franchisees prior to as well as after opening the business. Which of the following is an example of typical management assistance provided by franchisors?

Accepted Answer

A)  site selection 
B)  store layout guidance 
C)  technical and management training 
D)  inventory control systems 
E)  all of the above 
A)  site selection 
B)  store layout guidance 
C)  technical and management training 
D)  inventory control systems 
E)  all of the above

Question 19

Which of the following is an example of a retailing activity?

Accepted Answer

A)  Pamela peddles fresh vegetables at the Winchester flea market. 
B)  Cynthia markets silk flowers for cemeteries to customers who visit her beauty salon. 
C)  Chenoa vends hot dogs at a baseball park. 
D)  Sandra sells software for surfing the Internet to students. 
E)  All of the above are examples of retailing activities. 
A)  Pamela peddles fresh vegetables at the Winchester flea market. 
B)  Cynthia markets silk flowers for cemeteries to customers who visit her beauty salon. 
C)  Chenoa vends hot dogs at a baseball park. 
D)  Sandra sells software for surfing the Internet to students. 
E)  All of the above are examples of retailing activities.

Question 20

Y100 is the Japanese version of the Dollar Tree stores in the United States. The Japanese retail chain sells all merchandise for 100 yen (about $.80). Y100 would be classified as a:

Accepted Answer

A)  supercenter. 
B)  limited-line store. 
C)  specialty store. 
D)  discount store. 
E)  category-killer. 
A)  supercenter. 
B)  limited-line store. 
C)  specialty store. 
D)  discount store. 
E)  category-killer.

Exam 15: Retailing

Which of the following types of retail stores almost always avoids price competition?

Which types of firms are currently engaged in online retailing?

Why have many supermarkets added various nonfood items to their product assortments?

Which of the following market segments is LEAST likely to regularly shop at a warehouse club?

Last week Loretta was invited to a party during which the hostess brought out Michele Baratta jewelry for her guests to look at and buy. Loretta experienced:

Which of the following statements about retailing is True?

A _____ _____ is a combined retailing and wholesaling institution with a very broad but very shallow product assortment, extremely low prices, and few customer services.

In a _____ _____ _____ _____, independently owned firms join together under a contract specifying how they will operate.

Suits, shorts, swimsuits, and underwear are classified as ______, while refrigerators, televisions, and sofas are classified as _____.

Which of the following statements about off-price retailers is True?

How does a businessperson benefit when he or she buys a franchise?

Subway, 7-Eleven, Sylvan Learning Center, and Arthur Murray School of Dance are all examples of _____ _____ franchising.

Off-price retailers typically sell both manufacturers' and private brands.

Which of the following statements about franchising is True?

How do supercenters differ from the more traditional discount stores?

You would most likely find a manufacturer's excess output, seconds, inventory remaining at the end of a season, and irregular merchandise being sold at a(n):

Don Quijote is a leading Japanese discount retailer. As a discount retailer, Don Quijote would probably:

Various forms of management assistance are provided to franchisees prior to as well as after opening the business. Which of the following is an example of typical management assistance provided by franchisors?

Which of the following is an example of a retailing activity?

Y100 is the Japanese version of the Dollar Tree stores in the United States. The Japanese retail chain sells all merchandise for 100 yen (about $.80). Y100 would be classified as a:

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Product Planning and Development

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A _ _ is a combined retailing and wholesaling institution with a very broad but very shallow product assortment, extremely low prices, and few customer services.

In a ___ _ _ ___, independently owned firms join together under a contract specifying how they will operate.

Suits, shorts, swimsuits, and underwear are classified as __, while refrigerators, televisions, and sofas are classified as _.

Subway, 7-Eleven, Sylvan Learning Center, and Arthur Murray School of Dance are all examples of _ _ franchising.