Question 1

Why do stores cluster together?

Accepted Answer

A) to increase their customer pulling power 
B) to decrease competition 
C) to create retailer cooperatives 
D) to standardize the service mix 
E) to take advantage of franchise agreements

Question 2

Power centers are decreasing in number.

Accepted Answer

A) True 
 B)False

Question 3

SuperValu,traditionally classified as a food wholesaler,has recently started or acquired several retail food chains of its own,including Albertsons,Jewel- Osco,and Cub Foods.Which of the following trends is this an example of?

Accepted Answer

A) the decline of the voluntary chain 
B) movement toward self- service retailing 
C) the blurring of distinctions between retailers and wholesalers 
D) the growing domination of superstores 
E) retail convergence

Question 4

The lighting in Jake's Steak Restaurant is muted.The chairs are covered in leather and solid enough to last a lifetime,and each table is covered with a white linen cloth.The colors are limited to earth tones with an occasional splash of red.Patrons can not hear any kitchen noises,only a pleasant melody that seems familiar but unrecognizable.The smells are extraordinarily varied.This is a description of the restaurant's _ .

Accepted Answer

A) target 
B) services mix 
C) atmosphere 
D) product assortment 
E) promotions

Question 5

Describe the differences between chain stores and franchises.

Accepted Answer

The answer of Describe the differences between chain stores and...

Question 6

Retail convergence is a merging of all of the following EXCEPT .

Accepted Answer

A) consumers 
B) employees 
C) products 
D) retailers 
E) prices

Question 7

GameStop sells video games and systems,offering a narrow product line with a deep assortment within that line.GameStop is a(n).

Accepted Answer

A) convenience store 
B) specialty store 
C) category killer 
D) off- price retailer 
E) department store

Question 8

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 are intrigued with 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 per customer request.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.
"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 is most critical to Indiana Wood's success?

Accepted Answer

A) store atmosphere 
B) services mix 
C) price 
D) differentiation 
E) place

Question 9

What are three advantages a chain has over an independent retailer?

Accepted Answer

The answer of What are three advantages a chain has...

Question 10

Today's large,progressive wholesalers have successfully reacted to rising costs by .

Accepted Answer

A) relocating in low- rent,low- tax areas 
B) increasing their markup 
C) investing in information technology systems 
D) reducing promotional activities 
E) investing less money in expensive machinery

Question 11

While all retailers would like to achieve while charging ,the two seldom happen together.

Accepted Answer

A) high volume;high markups 
B) high volume;cut- rate markups 
C) high volume;low markups 
D) low volume;high markups 
E) low volume;low markups

Question 12

A retailer may fail because it tries to provide "something for everyone" and ends up satisfying no market well.Successful retailers their target markets well and position themselves strongly.

Accepted Answer

A) position 
B) franchise 
C) define 
D) increase 
E) wholesale

Question 13

and _ do not take title to goods,and they perform only a few channel functions.

Accepted Answer

A) Power centers;independent wholesalers 
B) Independent wholesalers;off- price retailers 
C) Brokers;agents 
D) Full- service wholesalers;limited- service wholesalers 
E) Branches;offices

Question 14

Marketers who use shopper marketing use the retail store itself as an important marketing medium.

Accepted Answer

A) True 
 B)False

Question 15

Why would a producer use wholesalers rather than selling directly to retailers or consumers?

Accepted Answer

The answer of Why would a producer use wholesalers rather...

Question 16

You own an independent store in your neighborhood.You still like to offer fresh seafood in your meat display case.Which type of wholesaler might best serve you?

Accepted Answer

A) rack jobber 
B) mail- order wholesaler 
C) drop shipper 
D) agents and brokers 
E) cash- and- carry wholesaler

Question 17

Which of the following types of retailers likely requires their employees to focus most on assisting customers as they shop?

Accepted Answer

A) full- service retailers 
B) megaretailers 
C) off- price retailers 
D) self- service retailers 
E) limited- service retailers

Question 18

How have department stores responded to increased competition by specialty stores?

Accepted Answer

The answer of How have department stores responded to increased...

Question 19

Home Depot offers "how- to" classes for do- it- yourselfers,featuring instructions on how to complete home improvement projects using products sold at its stores.This is an example of how Home Depot has differentiated itself through its .

Accepted Answer

A) atmosphere 
B) services mix 
C) targeting 
D) product assortment 
E) segmentation

Question 20

Mail- order,phone,and online shopping are all examples of _.

Accepted Answer

A) off- price retailing 
B) full- service retailing 
C) shopper marketing 
D) nonstore retailing 
E) wholesaling

Exam 13: Retailing and Wholesaling