Question 1

A voluntary chain is a wholesaler-sponsored group of independent retailers that engages in group buying and common merchandising.

Accepted Answer

A) True 
 B)False

Question 2

Off-price retailers pay regular wholesale prices for their merchandise but maintain low prices by accepting lower margins and selling higher volume.

Accepted Answer

A) True 
 B)False

Question 3

Explain how Whole Foods is able to compete against Walmart.

Accepted Answer

The answer of Explain how Whole Foods is able to...

Question 4

In-store demonstrations, displays, sales, and loyalty programs are examples of ________.

Accepted Answer

A)  direct marketing 
B)  sales promotion 
C)  public relations 
D)  personal selling 
E)  affinity marketing

Question 5

McDonald's, Subway, and Pizza Hut are all examples of ________.

Accepted Answer

A)  voluntary chains 
B)  retailer cooperatives 
C)  franchises 
D)  category killers 
E)  power centers

Question 6

Home Depot and PetSmart are examples of ________.

Accepted Answer

A)  factory outlets 
B)  warehouse clubs 
C)  superstores 
D)  off-price retailers 
E)  category killers

Question 7

________ have filled the ultra low-price, high-volume gap by buying at less-than-regular wholesale prices and charging consumers less than retail.

Accepted Answer

A)  Off-price retailers 
B)  Specialty stores 
C)  Convenience stores 
D)  Chain stores 
E)  Supercenters

Question 8

Which type of retailer is most likely to require its employees to focus most on assisting customers as they shop?

Accepted Answer

A)  self-service retailer 
B)  full-service retailer 
C)  off-price retailer 
D)  limited-service retailer 
E)  convenience retailer

Question 9

Self-service retailers serve customers who are willing to perform their own locate-compare-select process to save time or money.

Accepted Answer

A) True 
 B)False

Question 10

A discount store buys at less-than-regular wholesale prices and charges consumers less than retail.

Accepted Answer

A) True 
 B)False

Question 11

Refer to the scenario below to answer the following questions.
In the 1970s, Shipshewana was only a small town with a hardware store, a grain mill, a shoe store, a small restaurant, and a grocery store. Over the next two decades, the small town transformed into an international tourist attraction, attracting thousands of tourists who were intrigued by the lifestyle of Shipshewana's largest population-the Amish.
Ben and Mary Miller, having grown up within the Amish faith, decided to capitalize on their town's popularity and their woodworking skills. Their shop, Indiana Wood, began with a small display of handmade hickory rocking chairs, Ben Miller's specialty. But within a few months, the display at Indiana Wood included picnic tables, flower boxes, and small handmade novelty items. No other shop offers the same.
Mary Miller decorated the shop's display room with authentic Amish décor and eventually hired three Amish friends to sew and embroider napkins and other textiles as per customer requests. In addition, two women from the Amish community sought permission from the Millers to display home-baked pastries and jellies on Tuesdays and Wednesdays, when Shipshewana attracts swarms of visitors to its flea market on the south edge of town. The Millers also hired four more people to help customers throughout the purchasing process and to provide the required product related information to the customers.
"Shipshewana is full of specialty shops," Mary Miller stated. "People don't come here to buy things made in China or Taiwan. They want real, Amish-made goods."
-Which of the following would be the most logical way for Indiana Wood to expand?

Accepted Answer

A)  establishing an online presence 
B)  pursuing retail convergence 
C)  implementing RFID inventory tracking 
D)  establishing a community-gathering environment in the store 
E)  joining a producers' cooperative

Question 12

What constitutes retail convergence?

Accepted Answer

The answer of What constitutes retail convergence?...

Question 13

Superstores are much larger than regular supermarkets and offer a large assortment of routinely purchased food products, nonfood items, and services.

Accepted Answer

A) True 
 B)False

Question 14

________ are a type of limited-service wholesalers who do not carry inventory or handle a product. They typically operate in bulk industries, such as coal, lumber, and heavy equipment.

Accepted Answer

A)  Wholesale merchants 
B)  Industrial distributors 
C)  Cash-and-carry wholesalers 
D)  Rack jobbers 
E)  Drop shippers

Question 15

________ are a type of limited-service wholesalers who carry a limited line of semiperishable merchandise (such as milk, bread, snack foods), which is sold for cash as deliveries are made to supermarkets, small groceries, or hotels.

Accepted Answer

A)  Industrial distributors 
B)  Wholesale merchants 
C)  Full-service wholesalers 
D)  Truck jobbers 
E)  Purchasing agents

Question 16

Compare and contrast specialty stores and convenience stores.

Accepted Answer

The answer of Compare and contrast specialty stores and convenience...

Question 17

Which type of store is much larger than regular supermarkets and offers a large assortment of routinely purchased food products, nonfood items, and services?

Accepted Answer

A)  off-price retailer 
B)  specialty store 
C)  factory outlet 
D)  superstore 
E)  convenience store

Question 18

Which of the following is NOT one of a wholesaler's channel functions?

Accepted Answer

A)  financing 
B)  risk bearing 
C)  transportation 
D)  off-price retailing 
E)  bulk breaking

Question 19

________ are the largest group of wholesalers. They include two broad types: full-service wholesalers and limited-service wholesalers.

Accepted Answer

A)  Brokers 
B)  Manufacturer sellers 
C)  Manufacturers' agents 
D)  Merchant wholesalers 
E)  Selling agents

Question 20

________ are huge unenclosed shopping centers consisting of a long strip of retail stores, including at least one large, freestanding anchor store like Walmart. Each store has its own entrance with parking directly in front for shoppers who wish to visit only one store.

Accepted Answer

A)  Shopping malls 
B)  Power centers 
C)  Superstores 
D)  Chain stores 
E)  Regional shopping centers

Exam 13: Retailing and Wholesaling

A voluntary chain is a wholesaler-sponsored group of independent retailers that engages in group buying and common merchandising.

Off-price retailers pay regular wholesale prices for their merchandise but maintain low prices by accepting lower margins and selling higher volume.

Explain how Whole Foods is able to compete against Walmart.

In-store demonstrations, displays, sales, and loyalty programs are examples of ________.

McDonald's, Subway, and Pizza Hut are all examples of ________.

Home Depot and PetSmart are examples of ________.

________ have filled the ultra low-price, high-volume gap by buying at less-than-regular wholesale prices and charging consumers less than retail.

Which type of retailer is most likely to require its employees to focus most on assisting customers as they shop?

Self-service retailers serve customers who are willing to perform their own locate-compare-select process to save time or money.

A discount store buys at less-than-regular wholesale prices and charges consumers less than retail.

What constitutes retail convergence?

Superstores are much larger than regular supermarkets and offer a large assortment of routinely purchased food products, nonfood items, and services.

________ are a type of limited-service wholesalers who do not carry inventory or handle a product. They typically operate in bulk industries, such as coal, lumber, and heavy equipment.

________ are a type of limited-service wholesalers who carry a limited line of semiperishable merchandise (such as milk, bread, snack foods) , which is sold for cash as deliveries are made to supermarkets, small groceries, or hotels.

Compare and contrast specialty stores and convenience stores.

Which type of store is much larger than regular supermarkets and offers a large assortment of routinely purchased food products, nonfood items, and services?

Which of the following is NOT one of a wholesaler's channel functions?

________ are the largest group of wholesalers. They include two broad types: full-service wholesalers and limited-service wholesalers.

________ are huge unenclosed shopping centers consisting of a long strip of retail stores, including at least one large, freestanding anchor store like Walmart. Each store has its own entrance with parking directly in front for shoppers who wish to visit only one store.