Question 1

Explain the difference between a hypermarket and a supercenter.

Accepted Answer

The hypermarket is a form of scrambled merchandising that has been successful in Europe, based on a simple concept: offer "everything under one roof," eliminating the need to stop at more than one location. These hypermarkets are large stores (more than 200,000 square feet). The stores provide variety, quality, and low price for food and general merchandise. The average number of products carried ranges from 20,000 to 80,000 and one store will likely have annual revenues of $100 million. A supercenter is a variation of the hypermarket that is popular in the United States. In the United States, shoppers were uncomfortable with the huge size of hypermarkets, so they developed the supercenter, a variation of the hypermarket. A supercenter combines a typical merchandise store with a full-size grocery. The average number of products carried is 35,000, and one store location will likely have annual revenues of $60 million.

Question 2

The battle for market share is usually fought directly before the __________ stage, and some competitors drop out of the market.

Accepted Answer

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

Question 3

In the late 1950s, Pierre Martineau described __________ as "the way in which the store is defined in the shopper's mind."

Accepted Answer

A) size 
B) location 
C) product mix 
D) image 
E) anchor store 
A) size 
B) location 
C) product mix 
D) image 
E) anchor store D

Question 4

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

Question 5

Meijer operates a chain of hypermarkets headquartered in Michigan, which means it

Accepted Answer

A) engages in no intertype competition. 
B) is a disintermediator. 
C) uses scrambled merchandising. 
D) can also be referred to as a category killer. 
E) uses dual distribution. 
A) engages in no intertype competition. 
B) is a disintermediator. 
C) uses scrambled merchandising. 
D) can also be referred to as a category killer. 
E) uses dual distribution.

Question 6

According to the textbook, recent research indicates that the timing of __________ might affect future sales because frequent promotions increase consumers' ability to remember regular prices.

Accepted Answer

A) seasonal markdowns 
B) original markups 
C) future markups 
D) maintained markups 
E) markdowns 
A) seasonal markdowns 
B) original markups 
C) future markups 
D) maintained markups 
E) markdowns

Question 7

In the retail life cycle, __________ is the stage of emergence of a retail outlet, with a sharp departure from existing competition.

Accepted Answer

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

Question 8

Multichannel retailers are retailers that

Accepted Answer

A) sell different products through entirely different channels. 
B) sell through different channels under different brand names. 
C) utilize strategic and tactical wholesalers. 
D) utilize and integrate a combination of traditional store formats and nonstore formats. 
E) combine two channels for their offerings: one for products and the other for services. 
A) sell different products through entirely different channels. 
B) sell through different channels under different brand names. 
C) utilize strategic and tactical wholesalers. 
D) utilize and integrate a combination of traditional store formats and nonstore formats. 
E) combine two channels for their offerings: one for products and the other for services.

Question 9

What future changes may be expected in retailing?

Accepted Answer

Retailers in the future are likely to co

Question 10

Briefly describe the three ways retail outlets can be classified.

Accepted Answer

Retail outlets can be classified in thre

Question 11

Retailers that integrate and leverage their stores, catalogs, and websites have seen

Accepted Answer

A) a sizable increase in yearly sales from individual customers. 
B) a small increase in yearly sales from aggregate target market segments. 
C) no difference in yearly sales from individual customers. 
D) a decrease in yearly sales from individual customers. 
E) a large decrease in yearly sales from individual customers. 
A) a sizable increase in yearly sales from individual customers. 
B) a small increase in yearly sales from aggregate target market segments. 
C) no difference in yearly sales from individual customers. 
D) a decrease in yearly sales from individual customers. 
E) a large decrease in yearly sales from individual customers.

Question 12

Cash and carry wholesalers

Accepted Answer

A) handle bulky items such as lumber, bricks, and telephone poles. 
B) handle perishable items such as flowers, baked goods, and deli meats. 
C) handle office supplies, electrical supplies, hardware products, and groceries. 
D) are a kind of full-service wholesaler. 
E) lease vending machines to merchants and refill them as needed on a cash only basis. 
A) handle bulky items such as lumber, bricks, and telephone poles. 
B) handle perishable items such as flowers, baked goods, and deli meats. 
C) handle office supplies, electrical supplies, hardware products, and groceries. 
D) are a kind of full-service wholesaler. 
E) lease vending machines to merchants and refill them as needed on a cash only basis.

Question 13

There are two general types of franchises: business-format franchises and __________ franchises.

Accepted Answer

A) product-distribution 
B) general service 
C) manufacturing 
D) distribution 
E) venture 
A) product-distribution 
B) general service 
C) manufacturing 
D) distribution 
E) venture

Question 14

Cash and carry wholesalers

Accepted Answer

A) furnish the racks or shelves that display merchandise in retail stores, perform all channel functions, and sell on consignment to retailers. 
B) take title to merchandise but sell only to buyers that call on them, pay cash for merchandise, and furnish their own transportation for merchandise. 
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 racks or shelves that display merchandise in retail stores, perform all channel functions, and sell on consignment to retailers. 
B) take title to merchandise but sell only to buyers that call on them, pay cash for merchandise, and furnish their own transportation for merchandise. 
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 15

Which of the following stores are most likely to be anchor stores at a regional shopping center?

Accepted Answer

A) Old Navy, Abercrombie & Fitch, and Kay-Bee toy store 
B) Hickory Farms, a locally owned jewelry store, and Radio Shack 
C) an antique store, Dollar General, and a bakery 
D) Sears, Macy's, and JCPenney 
E) a Hallmark shop, a sporting goods consignment store, and a Barnes & Noble bookstore 
A) Old Navy, Abercrombie & Fitch, and Kay-Bee toy store 
B) Hickory Farms, a locally owned jewelry store, and Radio Shack 
C) an antique store, Dollar General, and a bakery 
D) Sears, Macy's, and JCPenney 
E) a Hallmark shop, a sporting goods consignment store, and a Barnes & Noble bookstore

Question 16

Briefly describe the three levels of service offered by retail outlets.

Accepted Answer

Retail outlets generally offer three lev

Question 17

Walmart recently introduced "Site-to-Store" service that

Accepted Answer

A) offers shoppers a virtual reality shopping experience from their home computers. 
B) allows customers to order online and receive free same-day pickup at a local store. 
C) provides free shipping to customers if they order $50 or more of selected items. 
D) allows customers to shop in-store using virtual personal shoppers. 
E) allows customers to attend online auctions for Walmart overstock or seasonal items that are being discontinued to make room for new inventory. 
A) offers shoppers a virtual reality shopping experience from their home computers. 
B) allows customers to order online and receive free same-day pickup at a local store. 
C) provides free shipping to customers if they order $50 or more of selected items. 
D) allows customers to shop in-store using virtual personal shoppers. 
E) allows customers to attend online auctions for Walmart overstock or seasonal items that are being discontinued to make room for new inventory.

Question 18

Wholesalers that own the merchandise they sell but do not physically handle, stock, or deliver it are referred to as

Accepted Answer

A) cash and carry wholesalers. 
B) rack jobbers. 
C) truck jobbers. 
D) manufacturer's representatives. 
E) drop shippers. 
A) cash and carry wholesalers. 
B) rack jobbers. 
C) truck jobbers. 
D) manufacturer's representatives. 
E) drop shippers.

Question 19

The marketing metrics related to a retailer's finances include all of the following except

Accepted Answer

A) the markdown percentage. 
B) inventory carrying costs. 
C) the return on sales. 
D) the gross margin. 
E) the sales per employee. 
A) the markdown percentage. 
B) inventory carrying costs. 
C) the return on sales. 
D) the gross margin. 
E) the sales per employee.

Question 20

The acronym RFID stands for

Accepted Answer

A) retail franchise identification designation. 
B) required financial identification. 
C) radar frequency identification. 
D) radio frequency identification. 
E) retail federation of independent department stores. 
A) retail franchise identification designation. 
B) required financial identification. 
C) radar frequency identification. 
D) radio frequency identification. 
E) retail federation of independent department stores.

Exam 16: Retailing and Wholesaling

Explain the difference between a hypermarket and a supercenter.

The battle for market share is usually fought directly before the __________ stage, and some competitors drop out of the market.

In the late 1950s, Pierre Martineau described __________ as "the way in which the store is defined in the shopper's mind."

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

Meijer operates a chain of hypermarkets headquartered in Michigan, which means it

According to the textbook, recent research indicates that the timing of __________ might affect future sales because frequent promotions increase consumers' ability to remember regular prices.

In the retail life cycle, __________ is the stage of emergence of a retail outlet, with a sharp departure from existing competition.

Multichannel retailers are retailers that

What future changes may be expected in retailing?

Briefly describe the three ways retail outlets can be classified.

Retailers that integrate and leverage their stores, catalogs, and websites have seen

Cash and carry wholesalers

There are two general types of franchises: business-format franchises and __________ franchises.

Cash and carry wholesalers

Which of the following stores are most likely to be anchor stores at a regional shopping center?

Briefly describe the three levels of service offered by retail outlets.

Walmart recently introduced "Site-to-Store" service that

Wholesalers that own the merchandise they sell but do not physically handle, stock, or deliver it are referred to as

The marketing metrics related to a retailer's finances include all of the following except

The acronym RFID stands for

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

Financial Aspects of Marketing

Building an Effective Marketing Plan

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