Question 1

Nonstore retailing falls into four major categories.Which of the following is NOT one of the four nonstore retailing categories?

Accepted Answer

A) Buying service 
B) Internet sales 
C) Automatic vending 
D) Direct marketing 
E) Direct selling

Question 2

Explain what is meant by the term "store atmosphere" and why it is important for retailers to have a distinctive atmosphere.

Accepted Answer

The answer of Explain what is meant by the term...

Question 3

Manufacturers typically do not sell directly to retailers or final consumers.They choose to use wholesalers because wholesalers are more efficient at certain functions.What functions are these?

Accepted Answer

The answer of Manufacturers typically do not sell directly to...

Question 4

Integrated logistics systems (ILS)involves materials management,________,and physical distribution,aided by information technology.

Accepted Answer

A) information flow systems 
B) material flow systems 
C) cash flow systems 
D) product management systems 
E) none of the above

Question 5

Franchising accounts for more than $1 trillion of annual U.S.sales and nearly one-third of all retail transactions.Franchises are distinguished by three characteristics,which are: (1)The franchisee pays for the right to be part of the system: (2)the franchisor provides its franchisees with a system for doing business;and (3)________.

Accepted Answer

A) the franchisor controls all actions of the franchisee including hiring and marketing decisions 
B) the franchisee has unlimited freedom to change the operation once he/she pays the upfront charges 
C) the franchisor owns a trade or service mark and licenses it to franchisees in return for royalty payments 
D) the franchisor receives a percentage of sales from the franchisee for the right to belong 
E) none of the above

Question 6

In your restaurant you offer a wide variety of dishes and are open for breakfast,lunch,and dinner.In terms of product assortment,you can claim that your restaurant has a product assortment that has ________.

Accepted Answer

A) a narrow focus and narrow target market 
B) appeal to all consumers 
C) location and variety 
D) variety and long hours 
E) breadth and depth

Question 7

In deciding on the method or means of transportation,shippers consider such criteria as speed,frequency,________,capability,availability,traceability,and costs.

Accepted Answer

A) air versus ground 
B) gypsy truckers 
C) dependability 
D) branded name truckers 
E) costs per mile

Question 8

The order-to-payment cycle is the elapsed time between an order's receipt,delivery,and payment by the customer.

Accepted Answer

A) True 
 B)False

Question 9

The company that you work for has outlined the following to its customers: Our on-time deliveries will be set at 95%;ordering and billing accuracy will be at a minimum of 98%;and we will establish four warehouses to serve the United States.These policies relate to ________.

Accepted Answer

A) customer responsiveness 
B) targeted marketing 
C) integrated logistics systems 
D) market logistics 
E) supply chain management

Question 10

You are interviewing for a job after graduation with a wholesaler.In your preparation for the interview,you discover that the wholesaler carries over 10,000 stockkeeping units,maintains a sales force,makes store door deliveries,and provides management and research assistance to retailers.You are interviewing with a ________ wholesaler.

Accepted Answer

A) specialized 
B) rack jobber 
C) full-service 
D) cash and carry 
E) merchant

Question 11

Choosing a market-logistics system calls for examining the total cost (M)associated with different proposed systems and selecting the system that minimizes it,where T (total freight costs)+ FW (total fixed warehouse cost)+ VW (total variable warehouse costs)is expressed as M = T + FW + VW.

Accepted Answer

A) True 
 B)False

Question 12

Retailers are facing increasing competition from other manufacturer-to-consumer distribution channels.A retailer must develop a product-differentiation strategy.The author suggests seven product-differentiation strategies.List and explain these seven.

Accepted Answer

The answer of Retailers are facing increasing competition from other...

Question 13

Retailers can assess a particular store's sales effectiveness by looking at (1)the number of people passing by on an average day; (2)the _________; (3)the percentage of those entering who buy;and (4)the average amount spent per sale.

Accepted Answer

A) percentage of customers who bought merchandise on "sale" 
B) total units sold per day 
C) total dollar sales per day 
D) percentage of those who buy full-price merchandise 
E) percentage who enter the store

Question 14

Integrated logistics systems involves materials management,material flow systems,and electronic distribution.

Accepted Answer

A) True 
 B)False

Question 15

The services mix afforded to retailers is a key tool for differentiating one store from another.Briefly explain the three services mixes available to retailers.

Accepted Answer

The answer of The services mix afforded to retailers is...

Question 16

At some stock level point,management must reorder product to refill the inventory to an acceptable level.This point is called the ________.

Accepted Answer

A) order (reorder)point 
B) inventory 
C) minimum inventory level 
D) inventory carrying costs 
E) none of the above

Question 17

In a franchising system,individual franchisees are ________.

Accepted Answer

A) a tightly knit group of enterprises whose systematic operations are planned,directed,and controlled by the franchisor 
B) regional managers of corporately owned facilities 
C) employees working in front-line service roles for the entrepreneur 
D) independent businesspeople who have the freedom to develop their own processes,brands,and images,facilitated by a retailing cooperative 
E) none of the above

Question 18

Retailers are generally eager to stock new products,making it difficult for manufacturers to keep older,but proven brands on the shelves.

Accepted Answer

A) True 
 B)False

Question 19

________ cost increases at an accelerating rate as the customer-service level approaches 100%.

Accepted Answer

A) Delivery 
B) Promotion 
C) Inventory 
D) Merchandising 
E) Storage

Question 20

Wal-Mart's Ol'Roy dog food has surpassed Nestlé's Purina brand as the top-selling dog chow.Ol'Roy is an example of a ________.

Accepted Answer

A) generic 
B) national brand 
C) franchise 
D) copy-cat brand 
E) private-label brand

Exam 16: Managing Retailing, wholesaling, and Logistics

Nonstore retailing falls into four major categories.Which of the following is NOT one of the four nonstore retailing categories?

Explain what is meant by the term "store atmosphere" and why it is important for retailers to have a distinctive atmosphere.

Manufacturers typically do not sell directly to retailers or final consumers.They choose to use wholesalers because wholesalers are more efficient at certain functions.What functions are these?

Integrated logistics systems (ILS) involves materials management,________,and physical distribution,aided by information technology.

In your restaurant you offer a wide variety of dishes and are open for breakfast,lunch,and dinner.In terms of product assortment,you can claim that your restaurant has a product assortment that has ________.

In deciding on the method or means of transportation,shippers consider such criteria as speed,frequency,________,capability,availability,traceability,and costs.

The order-to-payment cycle is the elapsed time between an order's receipt,delivery,and payment by the customer.

The company that you work for has outlined the following to its customers: Our on-time deliveries will be set at 95%;ordering and billing accuracy will be at a minimum of 98%;and we will establish four warehouses to serve the United States.These policies relate to ________.

Choosing a market-logistics system calls for examining the total cost (M)associated with different proposed systems and selecting the system that minimizes it,where T (total freight costs)+ FW (total fixed warehouse cost)+ VW (total variable warehouse costs)is expressed as M = T + FW + VW.

Retailers are facing increasing competition from other manufacturer-to-consumer distribution channels.A retailer must develop a product-differentiation strategy.The author suggests seven product-differentiation strategies.List and explain these seven.

Retailers can assess a particular store's sales effectiveness by looking at (1) the number of people passing by on an average day; (2) the _________; (3) the percentage of those entering who buy;and (4) the average amount spent per sale.

Integrated logistics systems involves materials management,material flow systems,and electronic distribution.

The services mix afforded to retailers is a key tool for differentiating one store from another.Briefly explain the three services mixes available to retailers.

At some stock level point,management must reorder product to refill the inventory to an acceptable level.This point is called the ________.

In a franchising system,individual franchisees are ________.

Retailers are generally eager to stock new products,making it difficult for manufacturers to keep older,but proven brands on the shelves.

________ cost increases at an accelerating rate as the customer-service level approaches 100%.

Wal-Mart's Ol'Roy dog food has surpassed Nestlé's Purina brand as the top-selling dog chow.Ol'Roy is an example of a ________.