Question 1

The vertical dimension of the retail positioning matrix is

Accepted Answer

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

Question 2

The major difference between an off-price retailer and a discount store is that off-price retailers purchase merchandise from manufacturers ________ and discount stores buy from wholesalers

Accepted Answer

A) that are trying to offload returned or slightly irregular inventory;selling new but inexpensive merchandise. 
B) at below wholesale prices;and charge a high initial price with the full intent of taking markdowns later. 
C) at below wholesale prices;at full price but take less of a markup. 
D) at various price points;at the lowest price points possible. 
E) that are part of a retailing cooperative;that are part of a wholesaling cooperative. 
A) that are trying to offload returned or slightly irregular inventory;selling new but inexpensive merchandise. 
B) at below wholesale prices;and charge a high initial price with the full intent of taking markdowns later. 
C) at below wholesale prices;at full price but take less of a markup. 
D) at various price points;at the lowest price points possible. 
E) that are part of a retailing cooperative;that are part of a wholesaling cooperative.

Question 3

Family Dollar,Dollar General,and the Dollar Tree are examples of which type of retailer?

Accepted Answer

A) warehouse club 
B) hypermarket 
C) outlet store 
D) everyday value retailer 
E) extreme-value retailer 
A) warehouse club 
B) hypermarket 
C) outlet store 
D) everyday value retailer 
E) extreme-value retailer

Question 4

What is category management and when is it used?

Accepted Answer

Category management is used to manage th

Question 5

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 6

Costco requires customers to perform many shopping functions during the purchasing process and all nonessential customer services have been eliminated.What level of service does Costco offer?

Accepted Answer

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

Question 7

There are three general forms of retail ownership: contractual system,independent retailer,and

Accepted Answer

A) dual ownership. 
B) industry consortium. 
C) retailing cooperative. 
D) multinational cartel. 
E) corporate chain. 
A) dual ownership. 
B) industry consortium. 
C) retailing cooperative. 
D) multinational cartel. 
E) corporate chain.

Question 8

Figure 16-9
  
-According to Figure 16-9 above,Box A represents the stage in the wheel of retailing when a retail outlet starts with

Accepted Answer

A) low prices,high margins,and high status. 
B) mixed prices,mixed margins,and mixed status. 
C) low prices,low margins,and low status. 
D) moderate prices,high margins,and high status. 
E) high prices,low margins,and mixed status. 
A) low prices,high margins,and high status. 
B) mixed prices,mixed margins,and mixed status. 
C) low prices,low margins,and low status. 
D) moderate prices,high margins,and high status. 
E) high prices,low margins,and mixed status.

Question 9

Which method of retail outlet classification is most appropriate for describing franchise operations?

Accepted Answer

A) form of ownership 
B) level of service 
C) merchandise line 
D) method of operation 
E) revenues generated 
A) form of ownership 
B) level of service 
C) merchandise line 
D) method of operation 
E) revenues generated

Question 10

A strip mall is a

Accepted Answer

A) suburban mall containing up to 100 stores that draws customer from a 5- to 10-mile radius. 
B) cluster of stores in a downtown area. 
C) retail location that typically has one primary store (usually a department store branch)with 20 to 40 smaller outlets serving a population of consumers who are within a 10- to 20-minute drive. 
D) cluster of neighborhood stores designed to serve people within a 5- to 10-minute drive. 
E) collection of category killers usually located outside a major amusement park or attraction. 
A) suburban mall containing up to 100 stores that draws customer from a 5- to 10-mile radius. 
B) cluster of stores in a downtown area. 
C) retail location that typically has one primary store (usually a department store branch)with 20 to 40 smaller outlets serving a population of consumers who are within a 10- to 20-minute drive. 
D) cluster of neighborhood stores designed to serve people within a 5- to 10-minute drive. 
E) collection of category killers usually located outside a major amusement park or attraction.

Question 11

Three common forms of off-price retailers are

Accepted Answer

A) warehouse clubs,factory outlet stores,and hypermarkets. 
B) warehouse clubs,factory outlets,and single-price or extreme-value retailer. 
C) factory outlets,single-price retailers,online auction services. 
D) factory outlets,supercenters,hypermarkets. 
E) extreme value retailers,buying clubs,online auction services. 
A) warehouse clubs,factory outlet stores,and hypermarkets. 
B) warehouse clubs,factory outlets,and single-price or extreme-value retailer. 
C) factory outlets,single-price retailers,online auction services. 
D) factory outlets,supercenters,hypermarkets. 
E) extreme value retailers,buying clubs,online auction services.

Question 12

Figure 16-10
  
-According to Figure 16-10 above,market share reaches its highest level during which stage of the retail life cycle?

Accepted Answer

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

Question 13

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

Accepted Answer

A) single-price stores 
B) online retailers 
C) supermarkets 
D) general stores 
A) single-price stores 
B) online retailers 
C) supermarkets 
D) general stores

Question 14

General merchandise stores such as Walmart,Kmart,and Target are usually considered ________ retailers.

Accepted Answer

A) exclusive-service 
B) minimal-service 
C) self-service 
D) full-service 
E) limited-service 
A) exclusive-service 
B) minimal-service 
C) self-service 
D) full-service 
E) limited-service

Question 15

One variation of off-price retailing is

Accepted Answer

A) discount wholesalers. 
B) outlet stores. 
C) discount retailers. 
D) supercenters. 
E) hypermarkets. 
A) discount wholesalers. 
B) outlet stores. 
C) discount retailers. 
D) supercenters. 
E) hypermarkets.

Question 16

Dick's Sporting Goods is most likely classified as which retail variation based on its considerable assortment (depth)of a related line of items?

Accepted Answer

A) single-line 
B) full-service 
C) full-line 
D) limited-service 
E) limited-line 
A) single-line 
B) full-service 
C) full-line 
D) limited-service 
E) limited-line

Question 17

Which of the following retailers is one of the largest hypermarkets in the world?

Accepted Answer

A) Alibaba 
B) Kroger 
C) Carrefour 
D) Kmart 
E) Home Depot 
A) Alibaba 
B) Kroger 
C) Carrefour 
D) Kmart 
E) Home Depot

Question 18

Accelerated development in the retail life cycle is similar to which stage in the product life cycle?

Accepted Answer

A) introduction 
B) maturity 
C) decline 
D) growth 
E) harvest 
A) introduction 
B) maturity 
C) decline 
D) growth 
E) harvest

Question 19

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 will sell these for $100 each.What is her markup in dollar terms?

Accepted Answer

A) $136 
B) $64 
C) $72 
D) $360 
E) $10 
A) $136 
B) $64 
C) $72 
D) $360 
E) $10

Question 20

Companies such as Avon,Fuller Brush,Mary Kay,and World Book are examples of firms that use

Accepted Answer

A) interface marketing. 
B) flex marketing. 
C) direct selling. 
D) interactive selling. 
E) responsive selling. 
A) interface marketing. 
B) flex marketing. 
C) direct selling. 
D) interactive selling. 
E) responsive selling.

Exam 16: Retailing and Wholesaling

The vertical dimension of the retail positioning matrix is

The major difference between an off-price retailer and a discount store is that off-price retailers purchase merchandise from manufacturers ________ and discount stores buy from wholesalers

Family Dollar,Dollar General,and the Dollar Tree are examples of which type of retailer?

What is category management and when is it used?

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

Costco requires customers to perform many shopping functions during the purchasing process and all nonessential customer services have been eliminated.What level of service does Costco offer?

There are three general forms of retail ownership: contractual system,independent retailer,and

Figure 16-9 -According to Figure 16-9 above,Box A represents the stage in the wheel of retailing when a retail outlet starts with

Which method of retail outlet classification is most appropriate for describing franchise operations?

A strip mall is a

Three common forms of off-price retailers are

Figure 16-10 -According to Figure 16-10 above,market share reaches its highest level during which stage of the retail life cycle?

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

General merchandise stores such as Walmart,Kmart,and Target are usually considered ________ retailers.

One variation of off-price retailing is

Dick's Sporting Goods is most likely classified as which retail variation based on its considerable assortment (depth)of a related line of items?

Which of the following retailers is one of the largest hypermarkets in the world?

Accelerated development in the retail life cycle is similar to which stage in the product life cycle?

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 will sell these for $100 each.What is her markup in dollar terms?

Companies such as Avon,Fuller Brush,Mary Kay,and World Book are examples of firms that use

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 Multichannel Marketing

Pulling It All Together: the Strategic Marketing Process

Writing Successful Marketing and Business Plans: Tips and Guidelines

Financial Statements and Ratios

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