Question 1

The __________ is a financial term that measures the dollars added to the cost the retailer paid for a product to arrive at the initial selling price.

Accepted Answer

A) maintained markup 
B) original markup 
C) return on investment 
D) markup 
E) markdown 
A) maintained markup 
B) original markup 
C) return on investment 
D) markup 
E) markdown

Question 2

What is category management and when is it used?

Accepted Answer

Category management is used to manage th

Question 3

Prices in vending machines tend to be higher because

Accepted Answer

A) machines are placed in low-demand traffic areas. 
B) maintenance, operating, and leasing costs are high. 
C) only small unit volume items are sold. 
D) customary pricing requires certain coin and currency amounts regardless of the normal retailer markup. 
E) few people buy from vending machines. 
A) machines are placed in low-demand traffic areas. 
B) maintenance, operating, and leasing costs are high. 
C) only small unit volume items are sold. 
D) customary pricing requires certain coin and currency amounts regardless of the normal retailer markup. 
E) few people buy from vending machines.

Question 4

Consumers benefit in dealing with retail corporate chains because

Accepted Answer

A) corporate chains have more experience than other forms of retailers. 
B) they can own stock in the same company where they shop since corporate chain stock must be publicly traded. 
C) the latter can bargain with a manufacturer to obtain product volume discounts on orders, which can be passed on to consumers in terms of lower prices. 
D) there are multiple outlets, each with its own varied merchandise and different management policies. 
E) merchandise is arranged and displayed by professional designers making their shopping experience less stressful. 
A) corporate chains have more experience than other forms of retailers. 
B) they can own stock in the same company where they shop since corporate chain stock must be publicly traded. 
C) the latter can bargain with a manufacturer to obtain product volume discounts on orders, which can be passed on to consumers in terms of lower prices. 
D) there are multiple outlets, each with its own varied merchandise and different management policies. 
E) merchandise is arranged and displayed by professional designers making their shopping experience less stressful.

Question 5

A unique broker that acts in many ways like a manufacturer's agent is a food broker, representing buyers and sellers in the grocery industry. Food brokers differ from conventional brokers because they act on behalf of producers on a permanent basis and

Accepted Answer

A) receive a commission for their services. 
B) are paid a flat fee for each time the shelves are stocked. 
C) are paid by both the buyer and seller separately depending upon the size of the order. 
D) are paid a commission by the buyer and a bonus by the seller. 
E) are paid a flat fee by both the buyer and seller, but receive a bonus based upon the percentage of increased sales by quarter. 
A) receive a commission for their services. 
B) are paid a flat fee for each time the shelves are stocked. 
C) are paid by both the buyer and seller separately depending upon the size of the order. 
D) are paid a commission by the buyer and a bonus by the seller. 
E) are paid a flat fee by both the buyer and seller, but receive a bonus based upon the percentage of increased sales by quarter.

Question 6

McDonald's, 7-Eleven, and Subway are examples of

Accepted Answer

A) product-distribution franchises. 
B) business franchise venture. 
C) business-format franchises. 
D) manufacturing franchises. 
E) general service franchise. 
A) product-distribution franchises. 
B) business franchise venture. 
C) business-format franchises. 
D) manufacturing franchises. 
E) general service franchise.

Question 7

The 4.8 million vending machines currently operating in the United States generate more than __________ in annual sales.

Accepted Answer

A) $359 million 
B) $985 million 
C) $3.8 billion 
D) $19.5 billion 
E) $46 billion 
A) $359 million 
B) $985 million 
C) $3.8 billion 
D) $19.5 billion 
E) $46 billion

Question 8

Merchant wholesalers are independently owned firms that __________ the merchandise they handle.

Accepted Answer

A) take title to 
B) broker 
C) act as agents for 
D) break bulk and repackage 
E) do not deliver 
A) take title to 
B) broker 
C) act as agents for 
D) break bulk and repackage 
E) do not deliver

Question 9

Intertype competition refers to competition between

Accepted Answer

A) very similar types of retail outlets that results from a single-product/single-line merchandising policy. 
B) retailers when the types of items they sell are virtually indistinguishable from one another. 
C) national and generic brands that are sold side by side in a retail outlet. 
D) retailers located in separate quadrants of the retail positioning matrix. 
E) very dissimilar types of retail outlets that practice scrambled merchandising. 
A) very similar types of retail outlets that results from a single-product/single-line merchandising policy. 
B) retailers when the types of items they sell are virtually indistinguishable from one another. 
C) national and generic brands that are sold side by side in a retail outlet. 
D) retailers located in separate quadrants of the retail positioning matrix. 
E) very dissimilar types of retail outlets that practice scrambled merchandising.

Question 10

Loblaws, a Canadian supermarket, features fruits and vegetables piled high on tables that have umbrellas. The idea behind this arrangement was to give Loblaws "a market feel." In terms of the retailing mix, this tactic is related to

Accepted Answer

A) pricing. 
B) goods and services factor. 
C) communication. 
D) merchandise. 
E) location. 
A) pricing. 
B) goods and services factor. 
C) communication. 
D) merchandise. 
E) location.

Question 11

Manufacturers' agent refers to agents who

Accepted Answer

A) represent a single producer and carry all products in the producer's lines. 
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 merchandise. 
D) own the merchandise they sell but do not physically handle, stock, or deliver it. 
E) furnish the racks or shelves that display merchandise in retail stores, perform all channel functions, and sell on consignment to retailers. 
A) represent a single producer and carry all products in the producer's lines. 
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 merchandise. 
D) own the merchandise they sell but do not physically handle, stock, or deliver it. 
E) furnish the racks or shelves that display merchandise in retail stores, perform all channel functions, and sell on consignment to retailers.

Question 12

What is the value of retailing for consumers and the economy?

Accepted Answer

Retailing is an important marketing acti

Question 13

Godiva Chocolatier invites consumers to stop by one of its stores for an unforgettable experience, including delectable chocolates, decorative gift collections, and unrivaled customer care. What type of retail service is Godiva offering?

Accepted Answer

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

Question 14

The degree of service provided to the customer from self-, limited-, and full-service retailers is referred to as

Accepted Answer

A) involvement. 
B) level of service. 
C) service commitment. 
D) customer obligation. 
E) degree of commitment. 
A) involvement. 
B) level of service. 
C) service commitment. 
D) customer obligation. 
E) degree of commitment.

Question 15

Neighborhood grocers that work together with several other independent grocers that all agree to buy their goods directly from food manufacturers is

Accepted Answer

A) a retailer-sponsored cooperative. 
B) a consortium system. 
C) an administrative system. 
D) a conglomerate system. 
E) a contractual horizontal marketing system. 
A) a retailer-sponsored cooperative. 
B) a consortium system. 
C) an administrative system. 
D) a conglomerate system. 
E) a contractual horizontal marketing system.

Question 16

A variation of off-price retailing includes

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 17

A financial indicator used to compare the increase in sales of stores that have been open for the same period of time is referred to as

Accepted Answer

A) return in investment. 
B) percentage of markup. 
C) gross profit. 
D) sales per square foot. 
E) same-store sales growth. 
A) return in investment. 
B) percentage of markup. 
C) gross profit. 
D) sales per square foot. 
E) same-store sales growth.

Question 18

A __________ most likely would use truck jobbers to distribute its products.

Accepted Answer

A) clothing manufacturer 
B) manufacturer of electric generators 
C) leather goods importer 
D) pharmaceutical company 
E) meat processing plant 
A) clothing manufacturer 
B) manufacturer of electric generators 
C) leather goods importer 
D) pharmaceutical company 
E) meat processing plant

Question 19

What is off-price retailing? Identify and give an example of the three variations of off-price retailing.

Accepted Answer

Off-price retailing involves selling bra

Question 20

Merchants such as Burlington Coat Factory sell brand-name merchandise at lower than regular prices. This means that it is using

Accepted Answer

A) an off-price retailing strategy. 
B) a markdown pricing strategy. 
C) an everyday fair pricing strategy. 
D) an everyday low pricing strategy. 
E) a maintained markdown pricing strategy. 
A) an off-price retailing strategy. 
B) a markdown pricing strategy. 
C) an everyday fair pricing strategy. 
D) an everyday low pricing strategy. 
E) a maintained markdown pricing strategy.

Exam 16: Retailing and Wholesaling

The __________ is a financial term that measures the dollars added to the cost the retailer paid for a product to arrive at the initial selling price.

What is category management and when is it used?

Prices in vending machines tend to be higher because

Consumers benefit in dealing with retail corporate chains because

A unique broker that acts in many ways like a manufacturer's agent is a food broker, representing buyers and sellers in the grocery industry. Food brokers differ from conventional brokers because they act on behalf of producers on a permanent basis and

McDonald's, 7-Eleven, and Subway are examples of

The 4.8 million vending machines currently operating in the United States generate more than __________ in annual sales.

Merchant wholesalers are independently owned firms that __________ the merchandise they handle.

Intertype competition refers to competition between

Loblaws, a Canadian supermarket, features fruits and vegetables piled high on tables that have umbrellas. The idea behind this arrangement was to give Loblaws "a market feel." In terms of the retailing mix, this tactic is related to

Manufacturers' agent refers to agents who

What is the value of retailing for consumers and the economy?

Godiva Chocolatier invites consumers to stop by one of its stores for an unforgettable experience, including delectable chocolates, decorative gift collections, and unrivaled customer care. What type of retail service is Godiva offering?

The degree of service provided to the customer from self-, limited-, and full-service retailers is referred to as

Neighborhood grocers that work together with several other independent grocers that all agree to buy their goods directly from food manufacturers is

A variation of off-price retailing includes

A financial indicator used to compare the increase in sales of stores that have been open for the same period of time is referred to as

A __________ most likely would use truck jobbers to distribute its products.

What is off-price retailing? Identify and give an example of the three variations of off-price retailing.

Merchants such as Burlington Coat Factory sell brand-name merchandise at lower than regular prices. This means that it is using

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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