Question 1

The most common form of retail ownership is the

Accepted Answer

A) corporate chain model. 
B) consumer cooperative model. 
C) contractual system of group shareholdings. 
D) independent retailer owned by an individual. 
E) administered systems chain. 
A) corporate chain model. 
B) consumer cooperative model. 
C) contractual system of group shareholdings. 
D) independent retailer owned by an individual. 
E) administered systems chain.

Question 2

To continue to be successful, Mall of America must

Accepted Answer

A) focus mostly on attracting suitable employees. 
B) keep a huge and diverse portfolio of retailers and attractions in the mall. 
C) refine and focus the retail mix to create a more consistent purchasing experience. 
D) promote its location as a key feature. 
E) reduce the variety of retailers to contain the costs of appealing to a wide range of customers. 
A) focus mostly on attracting suitable employees. 
B) keep a huge and diverse portfolio of retailers and attractions in the mall. 
C) refine and focus the retail mix to create a more consistent purchasing experience. 
D) promote its location as a key feature. 
E) reduce the variety of retailers to contain the costs of appealing to a wide range of customers.

Question 3

Regional shopping center refers to a

Accepted Answer

A) retail cluster in a downtown area. 
B) retail location that typically has one primary store and about 20 to 40 smaller outlets, and serves a population base of about 100,000. 
C) cluster of stores that serves people who are within a 5- to 10-minute drive and serves a population base of under 30,000. 
D) group of 50 to 150 stores that typically attracts customers who live or work within a 5- to 10-mile range, often containing two or three anchor stores. 
E) retail cluster of stores in uptown areas. 
A) retail cluster in a downtown area. 
B) retail location that typically has one primary store and about 20 to 40 smaller outlets, and serves a population base of about 100,000. 
C) cluster of stores that serves people who are within a 5- to 10-minute drive and serves a population base of under 30,000. 
D) group of 50 to 150 stores that typically attracts customers who live or work within a 5- to 10-mile range, often containing two or three anchor stores. 
E) retail cluster of stores in uptown areas.

Question 4

Direct selling is likely to continue to have strong growth in markets

Accepted Answer

A) in which people prefer not to have a social shopping experience. 
B) where convenience is not especially important. 
C) in which consumers are knowledgeable shoppers. 
D) where there is a lack of effective distribution channels. 
E) that have an excellent infrastructure. 
A) in which people prefer not to have a social shopping experience. 
B) where convenience is not especially important. 
C) in which consumers are knowledgeable shoppers. 
D) where there is a lack of effective distribution channels. 
E) that have an excellent infrastructure.

Question 5

There are three general forms of retail ownership: contractual system, corporate chain, and

Accepted Answer

A) dual ownership. 
B) industry consortium. 
C) retailing cooperative. 
D) independent retailer. 
E) multinational cartel. 
A) dual ownership. 
B) industry consortium. 
C) retailing cooperative. 
D) independent retailer. 
E) multinational cartel.

Question 6

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 four utilities offered to consumers through retailing are

Accepted Answer

A) convenience, performance, possession, and form. 
B) time, place, possession, and form. 
C) product, price, place, and promotion. 
D) people, productivity, process, and physical environment. 
E) convenience, consistency, competition, and choice. 
A) convenience, performance, possession, and form. 
B) time, place, possession, and form. 
C) product, price, place, and promotion. 
D) people, productivity, process, and physical environment. 
E) convenience, consistency, competition, and choice.

Question 8

Walmart has developed a sophisticated inventory management and cost control system that allows rapid price changes for each product in the store. The firm also uses technologies such as __________ to improve the quality of information available about products.

Accepted Answer

A) radio frequency identification 
B) encapsulation techniques 
C) bar code scanners 
D) nanotechnology 
E) cookies 
A) radio frequency identification 
B) encapsulation techniques 
C) bar code scanners 
D) nanotechnology 
E) cookies

Question 9

Not every suburban store is located in a shopping mall. Many neighborhoods have clusters of stores, referred to as a strip mall, to serve people who are within a 5- to 10-minute drive. Unlike the larger shopping centers, the composition of these stores usually

Accepted Answer

A) is unplanned. 
B) includes national anchor stores. 
C) is restricted to privately owned specialty stores. 
D) is mainly fast-food restaurants. 
E) includes amusement or theme parks. 
A) is unplanned. 
B) includes national anchor stores. 
C) is restricted to privately owned specialty stores. 
D) is mainly fast-food restaurants. 
E) includes amusement or theme parks.

Question 10

Retailers that utilize and integrate a combination of traditional store formats and nonstore formats are referred to as

Accepted Answer

A) multichannel retailers. 
B) scrambled merchandisers. 
C) mixed-brand retailers. 
D) dual distribution retailers. 
E) mixed-channel retailers. 
A) multichannel retailers. 
B) scrambled merchandisers. 
C) mixed-brand retailers. 
D) dual distribution retailers. 
E) mixed-channel retailers.

Question 11

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 12

A manufacturer's branch office

Accepted Answer

A) carries a producer's inventory and performs the functions of a full-service wholesaler. 
B) performs a sales function as an option to agents and brokers. 
C) works for several producers and carries noncompetitive, complementary merchandise in an exclusive territory. 
D) takes title to merchandise but sells only to buyers that call on them, pay cash for merchandise, and furnish their own transportation for the merchandise. 
E) brings buyers and sellers together to make sales. 
A) carries a producer's inventory and performs the functions of a full-service wholesaler. 
B) performs a sales function as an option to agents and brokers. 
C) works for several producers and carries noncompetitive, complementary merchandise in an exclusive territory. 
D) takes title to merchandise but sells only to buyers that call on them, pay cash for merchandise, and furnish their own transportation for the merchandise. 
E) brings buyers and sellers together to make sales.

Question 13

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

Accepted Answer

A) service versus product 
B) form of ownership 
C) proportion of national versus private label brands carried 
D) revenues generated 
E) profitability 
A) service versus product 
B) form of ownership 
C) proportion of national versus private label brands carried 
D) revenues generated 
E) profitability

Question 14

Explain how the wheel of retailing works.

Accepted Answer

The wheel of retailing describes how new

Question 15

During which stage of the retail life cycle do companies establish multiple outlets?

Accepted Answer

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

Question 16

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. Recently, however, sales have been a bit slow. Jane decides to reduce the price for the frames to $80. What is her maintained markup in dollar terms?

Accepted Answer

A) $100 
B) $20 
C) $44 
D) $64 
E) $0 
A) $100 
B) $20 
C) $44 
D) $64 
E) $0

Question 17

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) they can establish a credit history more easily than with other forms of retailers. 
D) there are multiple outlets with similar merchandise and consistent management policies. 
E) they have less stress in making decisions since merchandise is arranged and displayed by professional designers. 
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) they can establish a credit history more easily than with other forms of retailers. 
D) there are multiple outlets with similar merchandise and consistent management policies. 
E) they have less stress in making decisions since merchandise is arranged and displayed by professional designers.

Question 18

The amount added to the cost the retailer paid for a product to reach the final selling price is referred to as

Accepted Answer

A) a markup. 
B) a markdown. 
C) an original markup. 
D) a maintained markup. 
E) a cost-plus markup. 
A) a markup. 
B) a markdown. 
C) an original markup. 
D) a maintained markup. 
E) a cost-plus markup.

Question 19

A 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 is referred to as

Accepted Answer

A) a power center. 
B) a regional shopping center. 
C) a community shopping center. 
D) a central business district. 
E) an urban megacenter. 
A) a power center. 
B) a regional shopping center. 
C) a community shopping center. 
D) a central business district. 
E) an urban megacenter.

Question 20

Which of the following is an example of nonstore retailing?

Accepted Answer

A) hypermarkets 
B) supercenters 
C) shopping centers 
D) vending machines 
E) general merchandise stores 
A) hypermarkets 
B) supercenters 
C) shopping centers 
D) vending machines 
E) general merchandise stores

Exam 16: Retailing and Wholesaling

The most common form of retail ownership is the

To continue to be successful, Mall of America must

Regional shopping center refers to a

Direct selling is likely to continue to have strong growth in markets

There are three general forms of retail ownership: contractual system, corporate chain, and

Markdown refers to

The four utilities offered to consumers through retailing are

Walmart has developed a sophisticated inventory management and cost control system that allows rapid price changes for each product in the store. The firm also uses technologies such as __________ to improve the quality of information available about products.

Not every suburban store is located in a shopping mall. Many neighborhoods have clusters of stores, referred to as a strip mall, to serve people who are within a 5- to 10-minute drive. Unlike the larger shopping centers, the composition of these stores usually

Retailers that utilize and integrate a combination of traditional store formats and nonstore formats are referred to as

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

A manufacturer's branch office

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

Explain how the wheel of retailing works.

During which stage of the retail life cycle do companies establish multiple outlets?

Consumers benefit in dealing with retail corporate chains because

The amount added to the cost the retailer paid for a product to reach the final selling price is referred to as

A 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 is referred to as

Which of the following is an example of nonstore retailing?

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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