Question 1

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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 the product does not sell at the original price. 
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 the product does not sell at the original price. 
D)  the lowest price to which a retailer can reduce a sales ticket and still make a profit. 
E)  the net margin.

Question 2

is a television home shopping network.It generates sales of more than $7 billion from its 60 million customers by

Accepted Answer

A)  restricting purchases only through its Mall of America studio. 
B)  broadcasting live twelve hours a day 365 days a year. 
C)  offering more than 1,150 products each week. 
D)  offering overstocked items from retailers at a fraction of the original cost. 
E)  running live podcasts and live streaming over the Internet 
A)  restricting purchases only through its Mall of America studio. 
B)  broadcasting live twelve hours a day 365 days a year. 
C)  offering more than 1,150 products each week. 
D)  offering overstocked items from retailers at a fraction of the original cost. 
E)  running live podcasts and live streaming over the Internet

Question 3

Freightfinder.com is an Internet company that is called a "go-between." If a trucker needs to find a load for a particular trade lane,he or she can visit this site,list the price and available truck space,and find a company that needs a shipment moved.Since the purpose of this website is to put buyer and sellers together so that a sale can be made,this website can be categorized as a__________.

Accepted Answer

A)  broker 
B)  selling agent 
C)  manufacturer's representative 
D)  manufacturer's agent 
E)  administrator 
A)  broker 
B)  selling agent 
C)  manufacturer's representative 
D)  manufacturer's agent 
E)  administrator

Question 4

Prices in vending machines tend to be higher because

Accepted Answer

A)  machines are placed in high 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 high 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 5

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

Question 6

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 7

Intangibles such as a sense of belonging,excitement,style,or warmth are considered to be __________ of a store's image.

Accepted Answer

A)  functional qualities 
B)  sociological qualities 
C)  psychological attributes 
D)  antecedent attributes 
E)  personality elements 
A)  functional qualities 
B)  sociological qualities 
C)  psychological attributes 
D)  antecedent attributes 
E)  personality elements

Question 8

of the 30 largest businesses in the United States are retailers-Walmart,Costco,Home Depot,and _________.

Accepted Answer

A)  Sears 
B)  Target 
C)  Best Buy 
D)  JC Penney 
E)  Bloomingdale 
A)  Sears 
B)  Target 
C)  Best Buy 
D)  JC Penney 
E)  Bloomingdale

Question 9

While it is possible for a multichannel retailer to somewhat cannibalize its catalog business with its online retailing,the positive tradeoff is

Accepted Answer

A)  there is greater product awareness. 
B)  online retailing is a greater relationship-building medium. 
C)  an online transaction costs about half as much to process as a catalog order. 
D)  consumers make more impulse buys. 
E)  online retailing can provide the consumer with a more tangible decision-making tool. 
A)  there is greater product awareness. 
B)  online retailing is a greater relationship-building medium. 
C)  an online transaction costs about half as much to process as a catalog order. 
D)  consumers make more impulse buys. 
E)  online retailing can provide the consumer with a more tangible decision-making tool.

Question 10

are vending machine prices often higher than those in a retail store?

Accepted Answer

Vending machine maintenance,op

Question 11

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)  warehouse clubs 
E)  business-district retailers 
A)  single-price stores 
B)  online retailers 
C)  supermarkets 
D)  warehouse clubs 
E)  business-district retailers

Question 12

local Safeway grocery store is likely to be categorized according to what form of ownership,level of service,or merchandise line?

Accepted Answer

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

Question 13

is category management and when is it used?

Accepted Answer

Category management is used to manage th

Question 14

Another term for maintained markup is __________.

Accepted Answer

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

Question 15

Foursquare,Gowalla,Booyah,Brightkite,and Loopt are

Accepted Answer

A)  multiplayer video games. 
B)  advertising agencies. 
C)  location-based social networking apps for smartphones. 
D)  names of new phones targeted at college students. 
E)  restaurants with new food concepts. 
A)  multiplayer video games. 
B)  advertising agencies. 
C)  location-based social networking apps for smartphones. 
D)  names of new phones targeted at college students. 
E)  restaurants with new food concepts.

Question 16

Explain why direct mail is an attractive form of retailing

Accepted Answer

Direct mail retailing is attractive beca

Question 17

Sales per square foot is calculated by

Accepted Answer

A)  dividing total sales by selling area in square feet. 
B)  dividing profit margin by selling area in square feet. 
C)  dividing gross profit by selling area in square feet. 
D)  dividing return on investment by selling area in square feet. 
E)  dividing net sales by selling area in square feet. 
A)  dividing total sales by selling area in square feet. 
B)  dividing profit margin by selling area in square feet. 
C)  dividing gross profit by selling area in square feet. 
D)  dividing return on investment by selling area in square feet. 
E)  dividing net sales by selling area in square feet.

Question 18

Online retail purchases by consumers can be the result of several very different approaches,which include: (1)using a shopping "bot" to search for a product at the best price; (2)participating in an online auction; (3)going directly to online malls; and (4)

Accepted Answer

A)  paying dues to become a member of an online discount service. 
B)  becoming a secret shopper. 
C)  participating in a buying cooperative. 
D)  becoming a PURL. 
E)  becoming a member of a research group that evaluates new products. 
A)  paying dues to become a member of an online discount service. 
B)  becoming a secret shopper. 
C)  participating in a buying cooperative. 
D)  becoming a PURL. 
E)  becoming a member of a research group that evaluates new products.

Question 19

term truck jobbers refers to wholesalers who

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)  store all the merchandise they sell in their trucks. 
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, carry noncompetitive, complementary merchandise in an exclusive territory, and use over-the-road transportation for all product deliveries. 
A)  furnish the racks or shelves that display merchandise in retail stores, perform all channel functions, and sell on consignment to retailers. 
B)  store all the merchandise they sell in their trucks. 
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, carry noncompetitive, complementary merchandise in an exclusive territory, and use over-the-road transportation for all product deliveries.

Question 20

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.

Exam 16: Retailing and Wholesaling

markdown refers to

is a television home shopping network.It generates sales of more than $7 billion from its 60 million customers by

Prices in vending machines tend to be higher because

Which of the following is an example of nonstore retailing?

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

Intangibles such as a sense of belonging,excitement,style,or warmth are considered to be __________ of a store's image.

of the 30 largest businesses in the United States are retailers-Walmart,Costco,Home Depot,and _________.

While it is possible for a multichannel retailer to somewhat cannibalize its catalog business with its online retailing,the positive tradeoff is

are vending machine prices often higher than those in a retail store?

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

local Safeway grocery store is likely to be categorized according to what form of ownership,level of service,or merchandise line?

is category management and when is it used?

Another term for maintained markup is __________.

Foursquare,Gowalla,Booyah,Brightkite,and Loopt are

Explain why direct mail is an attractive form of retailing

Sales per square foot is calculated by

Online retail purchases by consumers can be the result of several very different approaches,which include: (1)using a shopping "bot" to search for a product at the best price; (2)participating in an online auction; (3)going directly to online malls; and (4)

term truck jobbers refers to wholesalers who

Multichannel retailers are retailers that

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