Question 1

Wholly owned extensions of the producer that perform wholesaling activities are referred to as

Accepted Answer

A) general merchandise wholesalers. 
B) cash and carry wholesalers. 
C) agents and brokers. 
D) manufacturer's branch or sales offices. 
E) merchant wholesalers. 
A) general merchandise wholesalers. 
B) cash and carry wholesalers. 
C) agents and brokers. 
D) manufacturer's branch or sales offices. 
E) merchant wholesalers.

Question 2

At the Christmas Tree Shop,customers can shop for Christmas gifts and decor at any time of the year.What type of utility does this store provide for its customers?

Accepted Answer

A) place and conformance 
B) possession and form 
C) form 
D) performance 
E) time 
A) place and conformance 
B) possession and form 
C) form 
D) performance 
E) time

Question 3

The wholesalers that perform all channel functions and are found in the health foods,automotive parts,and seafood industries would be

Accepted Answer

A) specialty wholesalers. 
B) full-line wholesalers. 
C) limited wholesalers. 
D) universal wholesalers. 
E) cash and carry wholesalers. 
A) specialty wholesalers. 
B) full-line wholesalers. 
C) limited wholesalers. 
D) universal wholesalers. 
E) cash and carry wholesalers.

Question 4

Your neighborhood dry cleaner or florist is likely to be categorized as an independent retailer.This means it is owned by a(n)

Accepted Answer

A) individual. 
B) conglomerate. 
C) consortium. 
D) corporate chain. 
E) cooperative. 
A) individual. 
B) conglomerate. 
C) consortium. 
D) corporate chain. 
E) cooperative.

Question 5

The description of how new forms of retail outlets enter the market is referred to as the

Accepted Answer

A) retail life cycle. 
B) product life cycle. 
C) wheel of retailing. 
D) retail life matrix. 
E) retail continuum. 
A) retail life cycle. 
B) product life cycle. 
C) wheel of retailing. 
D) retail life matrix. 
E) retail continuum.

Question 6

According to the text,________ provides third-party certification and offers guidance for retailers implementing new environmentally sound practices.

Accepted Answer

A) the Environmental Protection Agency 
B) the U.S.Chamber of Commerce-Environmental Division 
C) Green Cross International 
D) the U.S.Green Retail Association 
E) Leadership in Energy and Environmental Design (LEE
D)  
A) the Environmental Protection Agency 
B) the U.S.Chamber of Commerce-Environmental Division 
C) Green Cross International 
D) the U.S.Green Retail Association 
E) Leadership in Energy and Environmental Design (LEE
D)

Question 7

Level of service is used to describe the degree of service provided to the customer.Three levels of service are provided by self-,________,and full-service retailers.

Accepted Answer

A) limited- 
B) total- 
C) involvement- 
D) obligation- 
E) fixed- 
A) limited- 
B) total- 
C) involvement- 
D) obligation- 
E) fixed-

Question 8

One way neighborhood grocers can take advantage of volume discounts commonly available to corporate chains is to

Accepted Answer

A) purchase a franchise membership. 
B) become a subsidiary of a larger supermarket chain such as Kroger. 
C) join a professional merchant association and hire food brokers to negotiate lower prices for produce and dry goods. 
D) create a grocery networking system to exchange coupon vouchers. 
E) participate in a retailer-sponsored cooperative with other independent grocers. 
A) purchase a franchise membership. 
B) become a subsidiary of a larger supermarket chain such as Kroger. 
C) join a professional merchant association and hire food brokers to negotiate lower prices for produce and dry goods. 
D) create a grocery networking system to exchange coupon vouchers. 
E) participate in a retailer-sponsored cooperative with other independent grocers.

Question 9

A markup refers to

Accepted Answer

A) the difference between the final selling price and how the customer values the product. 
B) selling brand name merchandise at lower than regular prices. 
C) the amount added to the cost the retailer paid for a product to reach the final selling price. 
D) the difference between the retail cost and initial selling price. 
E) the reduction in retail price,usually expressed as a percentage equal to the amount reduced,divided by the original price,and then multiplied by 100. 
A) the difference between the final selling price and how the customer values the product. 
B) selling brand name merchandise at lower than regular prices. 
C) the amount added to the cost the retailer paid for a product to reach the final selling price. 
D) the difference between the retail cost and initial selling price. 
E) the reduction in retail price,usually expressed as a percentage equal to the amount reduced,divided by the original price,and then multiplied by 100.

Question 10

All of the following are forms of nonstore retailing except which?

Accepted Answer

A) direct selling 
B) television home shopping 
C) factory outlets 
D) online retailing 
E) telemarketing 
A) direct selling 
B) television home shopping 
C) factory outlets 
D) online retailing 
E) telemarketing

Question 11

Saks Fifth Avenue is an upscale retailer that offers designer brand women's apparel,fragrances,jewelry,and leather accessories.The retailer relies on superior service to sell its products and to retain its customers.Saks Fifth Avenue would be classified as a(n)

Accepted Answer

A)  exclusive-service retailer. 
B)  limited-service retailer. 
C)  full-service retailer. 
D)  premium-service retailer. 
E)  semi-service retailer. 
A)  exclusive-service retailer. 
B)  limited-service retailer. 
C)  full-service retailer. 
D)  premium-service retailer. 
E)  semi-service retailer.

Question 12

The difference between the retailer's cost and the initial selling price is referred to as the

Accepted Answer

A) net margin. 
B) maintained markup. 
C) markdown 
D) differential markup. 
E) original markup. 
A) net margin. 
B) maintained markup. 
C) markdown 
D) differential markup. 
E) original markup.

Question 13

Retailers that advocate an everyday fair pricing strategy may not offer the lowest prices but try to create value for customers using which of these?

Accepted Answer

A) customer service 
B) product benefits 
C) convenience 
D) perceived quality 
E) maintained price 
A) customer service 
B) product benefits 
C) convenience 
D) perceived quality 
E) maintained price

Question 14

What type of contractual system describes a situation in which assistance in selecting the location,setting up the store or facility,advertising,and training personnel is provided by the parent company?

Accepted Answer

A) administered system 
B) conglomerate system 
C) franchise system 
D) vertical integrated system 
E) retail-sponsored cooperative 
A) administered system 
B) conglomerate system 
C) franchise system 
D) vertical integrated system 
E) retail-sponsored cooperative

Question 15

A retailer bought a collectible Precious Moments figurine for $26.She sets the initial selling price at $60.The final selling price was $52.What was the maintained markup?

Accepted Answer

A) $112 
B) $52 
C) $26 
D) $34 
E) $86 
A) $112 
B) $52 
C) $26 
D) $34 
E) $86

Question 16

In response to the changes in the United States,many direct sellers are implementing a ________ strategy by expanding into other countries with their current product lines.

Accepted Answer

A) market development 
B) market penetration 
C) accelerated development 
D) product development 
E) diversification 
A) market development 
B) market penetration 
C) accelerated development 
D) product development 
E) diversification

Question 17

Many fast-food retailers,including McDonald's and Burger King,have followed a predictable pattern of how new forms of retail outlets enter the marketplace.McDonald's has evolved from a relatively simple restaurant with low margins,low prices,limited product offerings,and low institutional status to a worldwide chain with higher margins,high status,and a diverse menu of products.This evolution of McDonald's restaurants is consistent with the

Accepted Answer

A) slow to fast-food restaurant evolutionary cycle. 
B) revolution of retailing. 
C) retail life cycle. 
D) fast-food retail sequence. 
E) wheel of retailing. 
A) slow to fast-food restaurant evolutionary cycle. 
B) revolution of retailing. 
C) retail life cycle. 
D) fast-food retail sequence. 
E) wheel of retailing.

Question 18

Which type of store gives shoppers the greatest variety of merchandise?

Accepted Answer

A) a hypermarket 
B) a specialty clothing store 
C) a limited-line gift store 
D) a clothing outlet 
E) a discount store 
A) a hypermarket 
B) a specialty clothing store 
C) a limited-line gift store 
D) a clothing outlet 
E) a discount store

Question 19

Experts suggest that online retailers should think of their websites as ________ if they are to attract and retain customers.

Accepted Answer

A) cash cows 
B) dynamic billboards 
C) virtual reality stores 
D) traditional retail stores 
E) online entertainment 
A) cash cows 
B) dynamic billboards 
C) virtual reality stores 
D) traditional retail stores 
E) online entertainment

Question 20

A central business district refers to

Accepted Answer

A) a suburban mall that contains up to 100 stores and draws customer from 5 to 10 miles away. 
B) the oldest retailing setting,located in a community's downtown area. 
C) a retail location that typically has one primary store and about 20 to 40 smaller outlets,and serves a population base of about 100,000. 
D) a cluster of stores that serves people who are within a 5- to 10-minute drive and serves a population base of under 30,000. 
E) a collection of large stores over 100,000 square feet that offers a mix of about 40 percent food products and 60 percent general merchandise items. 
A) a suburban mall that contains up to 100 stores and draws customer from 5 to 10 miles away. 
B) the oldest retailing setting,located in a community's downtown area. 
C) a retail location that typically has one primary store and about 20 to 40 smaller outlets,and serves a population base of about 100,000. 
D) a cluster of stores that serves people who are within a 5- to 10-minute drive and serves a population base of under 30,000. 
E) a collection of large stores over 100,000 square feet that offers a mix of about 40 percent food products and 60 percent general merchandise items.

Exam 16: Retailing and Wholesaling

Wholly owned extensions of the producer that perform wholesaling activities are referred to as

At the Christmas Tree Shop,customers can shop for Christmas gifts and decor at any time of the year.What type of utility does this store provide for its customers?

The wholesalers that perform all channel functions and are found in the health foods,automotive parts,and seafood industries would be

Your neighborhood dry cleaner or florist is likely to be categorized as an independent retailer.This means it is owned by a(n)

The description of how new forms of retail outlets enter the market is referred to as the

According to the text,________ provides third-party certification and offers guidance for retailers implementing new environmentally sound practices.

Level of service is used to describe the degree of service provided to the customer.Three levels of service are provided by self-,________,and full-service retailers.

One way neighborhood grocers can take advantage of volume discounts commonly available to corporate chains is to

A markup refers to

All of the following are forms of nonstore retailing except which?

Saks Fifth Avenue is an upscale retailer that offers designer brand women's apparel,fragrances,jewelry,and leather accessories.The retailer relies on superior service to sell its products and to retain its customers.Saks Fifth Avenue would be classified as a(n)

The difference between the retailer's cost and the initial selling price is referred to as the

Retailers that advocate an everyday fair pricing strategy may not offer the lowest prices but try to create value for customers using which of these?

What type of contractual system describes a situation in which assistance in selecting the location,setting up the store or facility,advertising,and training personnel is provided by the parent company?

A retailer bought a collectible Precious Moments figurine for $26.She sets the initial selling price at $60.The final selling price was $52.What was the maintained markup?

In response to the changes in the United States,many direct sellers are implementing a ________ strategy by expanding into other countries with their current product lines.

Which type of store gives shoppers the greatest variety of merchandise?

Experts suggest that online retailers should think of their websites as ________ if they are to attract and retain customers.

A central business district refers to

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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