Question 1

As a result of the great success of corporate chains,many independent stores chose to band together in one of two forms of contractual associations: a voluntary chain or a(n)________.

Accepted Answer

A) factory outlet 
B) retailer cooperative 
C) independent off-price retailer 
D) warehouse club 
E) value retail center

Question 2

PennyLane Retailers believe in a do-it-yourself approach and their stores are designed for consumers who are willing to perform their own locate-compare-select process.PennyLane Retailers provide an example of full-service retailers.

Accepted Answer

A) True 
 B)False

Question 3

Which of the following contractual systems is distinguished by the fact that it is normally based on some unique product or service?

Accepted Answer

A) voluntary chain 
B) retailer cooperative 
C) franchise 
D) independent 
E) warehousing

Question 4

McPherson's,an ice cream joint,recently entered into an agreement by which it allowed independent businesspeople at select stores and locations across the country to sell its famous ice creams and milk shakes for a monetary consideration.This agreement created a(n)________ type of contractual retail association.

Accepted Answer

A) corporate chain 
B) voluntary chain 
C) franchise organization 
D) independent intermediary 
E) retailer cooperative

Question 5

When compared to merchant wholesalers,brokers or agents ________.

Accepted Answer

A) perform greater functions 
B) do not take title to goods 
C) deal only in services, and not products 
D) do not engage in any negotiation regarding the wholesale deals 
E) work on multiple product lines and rarely specialize in working in one product category

Question 6

Which of the following types of stores is much larger than regular supermarkets and offers a large assortment of routinely purchased food products,nonfood items,and services?

Accepted Answer

A) discount stores 
B) specialty stores 
C) factory outlets 
D) superstores 
E) off-price outlets

Question 7

________ sell standard merchandise at lower prices by accepting lower margins and selling higher volume.

Accepted Answer

A) Convenience stores 
B) Discount stores 
C) Full-service retailers 
D) Designer shops 
E) Specialty stores

Question 8

Which of the following statements is true with regard to shopping centers?

Accepted Answer

A) Shopping centers function at the neighborhood level, rather than at the regional or community level. 
B) Shopping centers typically contain provisions for many nonretail activities, such as a playground, skating rink, hotel, dining establishments, and a movie theater. 
C) Shopping centers are groups of retail businesses built on a site that is planned, developed, owned, and managed as a unit. 
D) Shopping centers usually contain exclusive brands and specialty stores, rather than convenience stores or department stores. 
E) Shopping centers are identical to lifestyle centers in terms of their size, services, and nature.

Question 9

Explain how wholesalers have been able to use technology to cut costs.

Accepted Answer

The answer of Explain how wholesalers have been able to...

Question 10

Crunch and Munch is the country's favorite fast-food vendor selling fried chicken.Over the years,the company has diversified into providing a larger variety of snacks like hot dogs,burritos,and burgers,but consumers still consider it to be the best seller of fried chicken.Many parties have approached Crunch and Munch with offers to buy the company,but Crunch and Munch continues to operate through its stores and franchise outlets.Would you consider franchising as a good contractual system for Crunch and Munch? If yes,why?

Accepted Answer

The answer of Crunch and Munch is the country's favorite...

Question 11

In a retailer cooperative,independent retailers contract with each other to set up a central buying operation and conduct joint promotional efforts.

Accepted Answer

A) True 
 B)False

Question 12

A broker brings buyers and sellers together and assists in negotiation.

Accepted Answer

A) True 
 B)False

Question 13

JP Wholesalers is one of the largest wholesalers of wooden furnishings in the country.Recently,the company opened a chain of stores called JP Designer Homes that became popular owing to the good reputation the company had as a wholesaler.The company then began acquiring smaller retail chains and consolidated its position in the market.Which of the following trends is reflected in this scenario?

Accepted Answer

A) the movement toward self-service retailing 
B) the decline of superstores 
C) the decline of the voluntary chain 
D) the rise of franchise organizations 
E) the blurring of distinctions between retailers and wholesalers

Question 14

Which of the following examples reflects the wheel-of-retailing concept?

Accepted Answer

A) Akido, started as a retail store for luxury clothing and accessories in Japan, was recently in the news for being acquired by an Italian designer label. 
B) Marty's, one of the country's largest retailers, has scaled its operations down and is running as a chain of department stores owing to scarcity of funds. 
C) Wills and McCoons, started as a large-scale store retailing upmarket brands, has included local brands and unbranded goods following the recession. 
D) Val-You, a chain of retail stores that started with small stores charging modest prices for its products, has become a full-service retail chain with high operating costs and prices. 
E) Lee Retailers, a super specialty retail chain stocking fine wines, cheese, and other goods has included a large number of quick-selling processed foods to retain its fast-depleting market share.

Question 15

Campbell is one of the oldest retailers in the country.While the service offered at the stores is fairly mediocre,Campbell is famous for surprise offerings of seconds,overstocks,and closeouts-occasionally including expensive gadgets and jewelry.On the other hand,Posco Retail is a new chain of retail stores that is known for encouraging customers to ask questions or consult service representatives in the process of making purchase decisions.From the scenario,it is evident that ________.

Accepted Answer

A) Posco Retail fails to differentiate itself from its competitors on the basis of the variable of services mix 
B) Campbell Retail requires no efforts to differentiate itself from others as it is an established retail chain 
C) the only attempt that Campbell Retail makes to differentiate themselves is through experiential retailing 
D) Campbell Retail has not been able to differentiate itself on the basis of the variable of product assortment 
E) the variable of services mix is better utilized by Posco Retail to differentiate itself when compared to Campbell Retail

Question 16

Bensons is a specialty store selling the finest home linen made from raw materials imported from Asian countries.Bensons pricing decision would be aimed at low markups on a high volume of products they retail.

Accepted Answer

A) True 
 B)False

Question 17

Describe the differences between corporate chains and franchises.

Accepted Answer

The answer of Describe the differences between corporate chains and...

Question 18

Which of the following channel functions of wholesalers is demonstrated when a wholesaler's sales force helps a manufacturer reach many small customers at a low cost?

Accepted Answer

A) bulk breaking 
B) selling and promoting 
C) buying and assortment building 
D) warehousing 
E) risk bearing

Question 19

Retailers must first segment and define their target markets and then decide how they will position themselves in these markets.

Accepted Answer

A) True 
 B)False

Question 20

Which of the following types of limited-service wholesalers is owned by farmers who assemble farm produce to sell in local markets?

Accepted Answer

A) cash-and-carry wholesalers 
B) drop shippers 
C) rack jobbers 
D) producers' cooperatives 
E) truck jobbers

Exam 11: Retailing and Wholesaling

As a result of the great success of corporate chains,many independent stores chose to band together in one of two forms of contractual associations: a voluntary chain or a(n) ________.

PennyLane Retailers believe in a do-it-yourself approach and their stores are designed for consumers who are willing to perform their own locate-compare-select process.PennyLane Retailers provide an example of full-service retailers.

Which of the following contractual systems is distinguished by the fact that it is normally based on some unique product or service?

When compared to merchant wholesalers,brokers or agents ________.

Which of the following types of stores is much larger than regular supermarkets and offers a large assortment of routinely purchased food products,nonfood items,and services?

________ sell standard merchandise at lower prices by accepting lower margins and selling higher volume.

Which of the following statements is true with regard to shopping centers?

Explain how wholesalers have been able to use technology to cut costs.

In a retailer cooperative,independent retailers contract with each other to set up a central buying operation and conduct joint promotional efforts.

A broker brings buyers and sellers together and assists in negotiation.

Which of the following examples reflects the wheel-of-retailing concept?

Bensons is a specialty store selling the finest home linen made from raw materials imported from Asian countries.Bensons pricing decision would be aimed at low markups on a high volume of products they retail.

Describe the differences between corporate chains and franchises.

Which of the following channel functions of wholesalers is demonstrated when a wholesaler's sales force helps a manufacturer reach many small customers at a low cost?

Retailers must first segment and define their target markets and then decide how they will position themselves in these markets.

Which of the following types of limited-service wholesalers is owned by farmers who assemble farm produce to sell in local markets?