Question 1

Since franchises are owned by independent business people, franchisors seldom force them to follow suggested marketing plans and procedures.

Accepted Answer

A) True 
 B)False

Question 2

A speciality store is not only a type of store, but also a method of retail operation. Describe the speciality store strategy. Then name three speciality stores.

Accepted Answer

The answer of A speciality store is not only a...

Question 3

Wholesalers are feeling the pressure from a variety of environmental changes including retailers' preference for direct dealing with suppliers and the availability of new technologies for ordering.

Accepted Answer

A) True 
 B)False

Question 4

Mini Case 14- 1
Elliott and Robin want to open a store and call it The Hamilton Home Shop. They have decided that it will feature household items such as decorative vases and planters, sheets and towels, bathroom accessories, and pictures. Their offerings will change from week to week depending on what's available from their wholesalers. Initially, they plan to sell irregulars and factory overruns, but they are flexible. Elliott has a real knack for spotting items others admire. People are always telling him what good taste he has. They must, however, be careful about how they spend the small amount of capital they have. One of their goals is to find an inexpensive location.
Once the store is up and operational, they hope they can use their cash flow to meet expenses. They plan to have no more than two full- time employees other than themselves and possibly some part- time help as the need arises. Customers will be allowed to make their own selections, but either Elliott or Robin will be there if they request some advice. Elliott and Robin plan on letting their customers use credit cards. They also feel it is important to have a generous merchandise return policy. Because Elliott and Robin are retailing novices, they want to join a retail organisation for advice and support and to share the costs of promotions. Elliott and Robin think that word- of- mouth will be their most powerful advertising tool. They expect to attract customers that appreciate the merchandise found at major department stores and mall speciality stores, but who would like the
lower prices.
-Refer to Mini Case 14- 1. Elliott and Robin should join what type of retail organisation?

Accepted Answer

A)  merchandising conglomerate 
B)  consumer cooperative 
C)  voluntary chain 
D)  retailer cooperative 
E)  wholesaler- sponsored cooperative

Question 5

_________are essentially specialists who locate buyers or sellers, bring the two parties together, and assist in negotiation.

Accepted Answer

A)  Manufacturer's agents 
B)  Brokers 
C)  Wholesale merchants 
D)  Commission merchants 
E)  all of the above

Question 6

Drop shippers sell bulky goods like coal and timber from their inventory.

Accepted Answer

A) True 
 B)False

Question 7

Two or more outlets that are commonly owned and controlled, have central buying and merchandising, and sell similar lines of merchandise are known as:

Accepted Answer

A)  corporate chain stores. 
B)  hypermarkets. 
C)  catalogue showrooms. 
D)  megamarkets. 
E)  merchandise marts.

Question 8

A regional shopping centre is a shopping mall located in regional or rural Australia.

Accepted Answer

A) True 
 B)False

Question 9

Off- price retailers such as factory outlet stores and outlet malls benefited from the decision of many discount chains to "trade up."

Accepted Answer

A) True 
 B)False

Question 10

Hardware retailer, Bunnings, offers its customers Do- It- Yourself (DIY) seminars at weekends and during holiday periods. These seminars, which are free of charge, cover a wide range of topics -from building a dog kennel to caring for fruit trees. These DIY seminars are an example of:

Accepted Answer

A)  peripheral service. 
B)  experiential service. 
C)  primary service. 
D)  supplementary service. 
E)  core service.

Question 11

As a general rule, discount stores sell sub- standard merchandise using weekly discounts and specials.

Accepted Answer

A) True 
 B)False

Question 12

Category killers can be identified as a type of retailer that offers low prices but does not offer many choices within each category of product line being sold.

Accepted Answer

A) True 
 B)False

Question 13

The manufacturer- owned wholesaling operation that carries merchandise stocks is known as a:

Accepted Answer

A)  manufacturer's agent. 
B)  sales branch. 
C)  sales office. 
D)  branch office. 
E)  purchasing office.

Question 14

Independent retailers who join together to form their own wholesaling operation and conduct joint merchandising and promotional activities are called a:

Accepted Answer

A)  hyperchain. 
B)  voluntary chain. 
C)  purchasing cooperative. 
D)  retailer cooperative. 
E)  wholesaler cooperative.

Question 15

Consumers who value such factors as location, ease of access, and non- traditional store hours more than large assortments and lower prices are MORE likely to purchase in:

Accepted Answer

A)  hypermarkets. 
B)  discount stores. 
C)  shopping stores. 
D)  convenience stores. 
E)  department stores.

Question 16

Speciality stores and "first- class" department stores are most likely to employ:

Accepted Answer

A)  limited- service. 
B)  low- service. 
C)  full- service. 
D)  self- service. 
E)  none of the above

Question 17

The Adelaide Wine Company is preparing to open a new territory with which it is completely unfamiliar. The firm, which hopes to enter the market as quickly and inexpensively as possible, is most likely to utilise:

Accepted Answer

A)  manufacturer's agents. 
B)  selling agents. 
C)  purchasing agents. 
D)  commission merchants. 
E)  none of the above

Question 18

Shopping centres have grown from small neighbourhood strips to malls housing 100 or more stores. Their numbers have proliferated and their environments have become more extravagant. What is the likely future of this form of retailing?

Accepted Answer

The answer of Shopping centres have grown from small neighbourhood...

Question 19

A women's clothing store would be an example of a limited- line store.

Accepted Answer

A) True 
 B)False

Question 20

The set of activities involved in selling goods and services to those buying for resale or business use is termed:

Accepted Answer

A)  retailing. 
B)  exchange. 
C)  wholesaling. 
D)  procurement. 
E)  brokering.

Exam 14: Retailing and Wholesaling

Since franchises are owned by independent business people, franchisors seldom force them to follow suggested marketing plans and procedures.

A speciality store is not only a type of store, but also a method of retail operation. Describe the speciality store strategy. Then name three speciality stores.

Wholesalers are feeling the pressure from a variety of environmental changes including retailers' preference for direct dealing with suppliers and the availability of new technologies for ordering.

_________are essentially specialists who locate buyers or sellers, bring the two parties together, and assist in negotiation.

Drop shippers sell bulky goods like coal and timber from their inventory.

Two or more outlets that are commonly owned and controlled, have central buying and merchandising, and sell similar lines of merchandise are known as:

A regional shopping centre is a shopping mall located in regional or rural Australia.

Off- price retailers such as factory outlet stores and outlet malls benefited from the decision of many discount chains to "trade up."

Hardware retailer, Bunnings, offers its customers Do- It- Yourself (DIY) seminars at weekends and during holiday periods. These seminars, which are free of charge, cover a wide range of topics -from building a dog kennel to caring for fruit trees. These DIY seminars are an example of:

As a general rule, discount stores sell sub- standard merchandise using weekly discounts and specials.

Category killers can be identified as a type of retailer that offers low prices but does not offer many choices within each category of product line being sold.

The manufacturer- owned wholesaling operation that carries merchandise stocks is known as a:

Independent retailers who join together to form their own wholesaling operation and conduct joint merchandising and promotional activities are called a:

Consumers who value such factors as location, ease of access, and non- traditional store hours more than large assortments and lower prices are MORE likely to purchase in:

Speciality stores and "first- class" department stores are most likely to employ:

The Adelaide Wine Company is preparing to open a new territory with which it is completely unfamiliar. The firm, which hopes to enter the market as quickly and inexpensively as possible, is most likely to utilise:

Shopping centres have grown from small neighbourhood strips to malls housing 100 or more stores. Their numbers have proliferated and their environments have become more extravagant. What is the likely future of this form of retailing?

A women's clothing store would be an example of a limited- line store.

The set of activities involved in selling goods and services to those buying for resale or business use is termed: