Question 1

Rack jobbers are wholesalers that

Accepted Answer

A) furnish the shelves that display merchandise in retail stores,perform all channel functions,and sell on consignment to retailers. 
B) own the merchandise they sell and have retailers store it in their warehouses. 
C) own the merchandise they sell but do not physically handle,stock,or deliver it. 
D) have a small warehouse from which they stock their trucks for distribution to retailers. 
E) work for several producers and carry noncompetitive,complementary merchandise in an exclusive territory. 
A) furnish the shelves that display merchandise in retail stores,perform all channel functions,and sell on consignment to retailers. 
B) own the merchandise they sell and have retailers store it in their warehouses. 
C) own the merchandise they sell but do not physically handle,stock,or deliver it. 
D) have a small warehouse from which they stock their trucks for distribution to retailers. 
E) work for several producers and carry noncompetitive,complementary merchandise in an exclusive territory.

Question 2

One method of classification categorizes a retailer as self-,limited-,or full-

Accepted Answer

A) involvement. 
B) assortment. 
C) management. 
D) service. 
E) ownership. 
A) involvement. 
B) assortment. 
C) management. 
D) service. 
E) ownership.

Question 3

A method of classification that describes how many different types of products a store carries and in what assortment is referred to as a

Accepted Answer

A) product mix. 
B) service level. 
C) product variety. 
D) store composition. 
E) merchandise line. 
A) product mix. 
B) service level. 
C) product variety. 
D) store composition. 
E) merchandise line.

Question 4

Emphasizing consistently low prices and eliminating most markdowns is referred to as

Accepted Answer

A) low-margin pricing. 
B) everyday low pricing. 
C) everyday fair pricing. 
D) value-based pricing. 
E) maintained pricing. 
A) low-margin pricing. 
B) everyday low pricing. 
C) everyday fair pricing. 
D) value-based pricing. 
E) maintained pricing.

Question 5

A limited-service wholesaler that performs all channel functions and sells on consignment to retailers,which means it retains the title to the products displayed and bills retailers only for the merchandise sold,is a

Accepted Answer

A) truck jobber. 
B) transport vendor. 
C) rack jobber. 
D) cash and carry wholesaler. 
E) drop shipper. 
A) truck jobber. 
B) transport vendor. 
C) rack jobber. 
D) cash and carry wholesaler. 
E) drop shipper.

Question 6

A markdown refers to

Accepted Answer

A) the difference between the final selling price and the retailer's cost. 
B) the amount the manufacturer adds to achieve the desired suggested retail price. 
C) discounting a product when it does not sell at the original price and an adjustment is necessary. 
D) the lowest price to which a retailer can reduce a sales ticket and still make a profit. 
E) the net margin. 
A) the difference between the final selling price and the retailer's cost. 
B) the amount the manufacturer adds to achieve the desired suggested retail price. 
C) discounting a product when it does not sell at the original price and an adjustment is necessary. 
D) the lowest price to which a retailer can reduce a sales ticket and still make a profit. 
E) the net margin.

Question 7

The use of specialty catalogs from firms such as IKEA,Crate and Barrel,and L.L.Bean have been affected by all of the following factors except which?

Accepted Answer

A) The possibility of the U.S.Postal Service reducing delivery to five days a week. 
B) Higher paper costs,an increase in postage rates,and the possibility of the U.S.Postal Service reducing delivery to five days a week. 
C) The growing interest in do-not-mail legislation. 
D) The concern for "green" mailings and catalogs. 
E) The growing influence of television home shopping. 
A) The possibility of the U.S.Postal Service reducing delivery to five days a week. 
B) Higher paper costs,an increase in postage rates,and the possibility of the U.S.Postal Service reducing delivery to five days a week. 
C) The growing interest in do-not-mail legislation. 
D) The concern for "green" mailings and catalogs. 
E) The growing influence of television home shopping.

Question 8

Direct-mail and catalog retailing are examples of

Accepted Answer

A) nonstore retailing. 
B) intertype retailing. 
C) online retailing. 
D) print-media retailing. 
E) dual retailing. 
A) nonstore retailing. 
B) intertype retailing. 
C) online retailing. 
D) print-media retailing. 
E) dual retailing.

Question 9

Store layout,colors,lighting,and music are all considered part of a store's retail

Accepted Answer

A) sensory management plan. 
B) measurable attributes. 
C) antecedent attributes. 
D) emotive appeal. 
E) atmosphere. 
A) sensory management plan. 
B) measurable attributes. 
C) antecedent attributes. 
D) emotive appeal. 
E) atmosphere.

Question 10

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 the 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 11

The horizontal dimension of the retail positioning matrix is

Accepted Answer

A) depth of product line. 
B) value added. 
C) relative market share. 
D) breadth of product line. 
E) stage in the retail life cycle. 
A) depth of product line. 
B) value added. 
C) relative market share. 
D) breadth of product line. 
E) stage in the retail life cycle.

Question 12

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 13

The analytical tool that positions retail outlets in terms of the breadth of their product line and value added,such as location,product reliability,or prestige,is the

Accepted Answer

A) growth share matrix. 
B) MAC framework. 
C) market-product grid. 
D) retail positioning matrix. 
E) wheel of retailing. 
A) growth share matrix. 
B) MAC framework. 
C) market-product grid. 
D) retail positioning matrix. 
E) wheel of retailing.

Question 14

Brokers are independent firms or individuals who

Accepted Answer

A) represent a single producer and are responsible for the entire marketing function of that producer. 
B) work for several producers and carry noncompetitive,complementary merchandise in an exclusive territory. 
C) take title to merchandise but sell only to buyers that call on them,pay cash for merchandise,and furnish their own transportation for the merchandise. 
D) own the merchandise they sell but do not physically handle,stock,or deliver it. 
E) bring buyers and sellers together to make sales. 
A) represent a single producer and are responsible for the entire marketing function of that producer. 
B) work for several producers and carry noncompetitive,complementary merchandise in an exclusive territory. 
C) take title to merchandise but sell only to buyers that call on them,pay cash for merchandise,and furnish their own transportation for the merchandise. 
D) own the merchandise they sell but do not physically handle,stock,or deliver it. 
E) bring buyers and sellers together to make sales.

Question 15

A drugstore that sells pharmaceuticals,beauty aids,camera equipment,nonperishable groceries,and small hardware items is an example of a retailer using

Accepted Answer

A) multiple distribution channels. 
B) full service. 
C) scrambled merchandising. 
D) intertype competition. 
E) dual channel marketing. 
A) multiple distribution channels. 
B) full service. 
C) scrambled merchandising. 
D) intertype competition. 
E) dual channel marketing.

Question 16

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 17

A business in Kansas City,Missouri,looking to rent office space should use a(n)________ to help it locate the most suitable space at the best possible rate.

Accepted Answer

A)  selling agent 
B)  manufacturer's representative 
C)  manufacturer's agent 
D)  administrator 
E)  broker 
A)  selling agent 
B)  manufacturer's representative 
C)  manufacturer's agent 
D)  administrator 
E)  broker

Question 18

Which of the following is a commonly used method of retail outlet classification?

Accepted Answer

A) service versus product 
B) type of merchandise line 
C) proportion of national versus private label brands carried 
D) revenues generated 
E) profitability 
A) service versus product 
B) type of merchandise line 
C) proportion of national versus private label brands carried 
D) revenues generated 
E) profitability

Question 19

The three commonly used terms to describe levels of service in retailing are

Accepted Answer

A) self-service,limited-service,and full-service. 
B) retailer-service,sales-service,and customer-service. 
C) self-service,automated-service,and online-service. 
D) limited-service,full-service,and automated-service. 
E) wholesaler-service,retailer-service,and customer-service. 
A) self-service,limited-service,and full-service. 
B) retailer-service,sales-service,and customer-service. 
C) self-service,automated-service,and online-service. 
D) limited-service,full-service,and automated-service. 
E) wholesaler-service,retailer-service,and customer-service.

Question 20

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

Accepted Answer

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

Exam 16: Retailing and Wholesaling

Rack jobbers are wholesalers that

One method of classification categorizes a retailer as self-,limited-,or full-

A method of classification that describes how many different types of products a store carries and in what assortment is referred to as a

Emphasizing consistently low prices and eliminating most markdowns is referred to as

A limited-service wholesaler that performs all channel functions and sells on consignment to retailers,which means it retains the title to the products displayed and bills retailers only for the merchandise sold,is a

A markdown refers to

The use of specialty catalogs from firms such as IKEA,Crate and Barrel,and L.L.Bean have been affected by all of the following factors except which?

Direct-mail and catalog retailing are examples of

Store layout,colors,lighting,and music are all considered part of a store's retail

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 the it best provide?

The horizontal dimension of the retail positioning matrix is

The analytical tool that positions retail outlets in terms of the breadth of their product line and value added,such as location,product reliability,or prestige,is the

Brokers are independent firms or individuals who

A drugstore that sells pharmaceuticals,beauty aids,camera equipment,nonperishable groceries,and small hardware items is an example of a retailer using

Data analytics benefits retailers by

A business in Kansas City,Missouri,looking to rent office space should use a(n)________ to help it locate the most suitable space at the best possible rate.

Which of the following is a commonly used method of retail outlet classification?

The three commonly used terms to describe levels of service in retailing are

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

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Developing Successful Organizational and Marketing Strategies

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Ethical and Social Responsibility for Sustainable Marketing

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