Question 1

Through the years,drugstores have added more unrelated products to their product mix,such as lawn care supplies,food items,housewares,and small appliances.This illustrates which of the following retail strategy issues?

Accepted Answer

A)  Atmospheric application
B)  Product line combination
C)  Scrambled merchandising
D)  Value-pricing
E)  Brand extension C

Question 2

Lucas is planning a distribution strategy for his business.He is considering using direct marketing,direct selling,and automatic vending,which are all examples of ____ retailing.

Accepted Answer

A)  off-premise
B)  portfolio
C)  nonstore
D)  off-price
E)  direct C

Question 3

Off-price retailers feature

Accepted Answer

A)  deep discounts,few customer services,and central checkouts.
B)  sales expertise,wide selections,and low prices.
C)  overstocks,designer brands,and moderate prices.
D)  a narrow product range and enormous product availability.
E)  cash only sales and few customer services. A

Question 4

Victor knows that if he decides to buy a franchise,he will most likely have to supply

Accepted Answer

A)  management know-how and labor.
B)  buildings and daily operations.
C)  marketing assistance and management know-how.
D)  a percentage of total sales and expertise.
E)  labor and daily operations.

Question 5

Which of the following wholesalers never take actual possession of the goods?

Accepted Answer

A)  Drop shippers
B)  Cash-and-carry wholesalers
C)  Truck jobbers
D)  Mail-order wholesalers
E)  Rack jobbers

Question 6

Kevin is talking with Peter about purchasing a Wendy's franchise.Peter tells Kevin that one of the major advantages of franchising for him to consider is the

Accepted Answer

A)  higher start-up costs.
B)  greater freedom it provides.
C)  individuality it offers.
D)  higher success rate for franchises.
E)  gross margin it provides.

Question 7

Aidan is getting ready to move to campus for his freshman year of college.To get the products he needs for his dorm room,he goes to a store that sells household goods such as plastic containers,sheets,and towels.The store also sells items such as shampoo,deodorant,and toothpaste.Aidan has most likely gone to a(n)

Accepted Answer

A)  discount stores.
B)  superstores.
C)  supermarkets.
D)  department stores.
E)  warehouse clubs.

Question 8

In order to justify direct-response marketing,a product really needs to be priced above

Accepted Answer

A)  $50.
B)  $10.
C)  $5.
D)  $20.
E)  $100.

Question 9

Independent intermediaries that represent two or more sellers and usually offer customers complete product lines in a restricted territory are called

Accepted Answer

A)  commission merchants.
B)  manufacturers' agents.
C)  selling agents.
D)  truck wholesalers.
E)  brokers.

Question 10

Veronica Montez works for Bicardi at a location away from the manufacturing plants.She provides wholesale services to wholesale and retail customers,but her facility does not carry inventory.Veronica works at a

Accepted Answer

A)  sales branch.
B)  manufacturers' agency.
C)  sales office.
D)  retail outlet.
E)  commission brokerage.

Question 11

All of the following are examples of full-service wholesalers except

Accepted Answer

A)  general merchandise wholesalers.
B)  mail-order wholesalers.
C)  rack jobbers.
D)  general-line wholesalers.
E)  specialty-line wholesalers.

Question 12

Chandra has extensive contacts in the real estate business and brings together buyers and sellers.Although she assumes no risks,she can offer specialized knowledge about real estate.Chandra is a

Accepted Answer

A)  commission merchant.
B)  selling agent.
C)  broker.
D)  specialty salesperson.
E)  sales branch agent.

Question 13

Stores that buy manufacturers' seconds,overruns,returns,and off-season production runs at below wholesale prices.These firms resell this merchandise to consumers at deep discounts,and are called

Accepted Answer

A)  category killers.
B)  off-price retailers.
C)  specialty retailers.
D)  hypermarkets.
E)  discount retailers.

Question 14

Which type of retailer generally accepts lower margins than traditional retailers in exchange for higher sales volume?

Accepted Answer

A)  Department stores
B)  Traditional specialty retailers
C)  Warehouse showrooms
D)  Direct marketers
E)  Discount stores

Question 15

Scenario 16.1
Use the following to answer the questions.
Landry Restaurants,Inc.owns a number of different franchised restaurants,including the Rain Forest Cafe and their recent addition,the T-Rex Cafe.Both the Rain Forest and T-Rex restaurants differentiate themselves from their competitors by offering a unique dining experience.At the Rain Forest Cafe you can dine under a ceiling of lush tropical forest plants while you are viewing the enormous aquarium with exotic fish.Periodically,the rain forest explodes with the sound of waterfalls and birds.Giant stuffed monkeys,parrots,and other jungle creatures are planted within the landscape.The Rain Forest Cafe also contains a gift shop,where customers can purchase t-shirts,hats,and other items emblazoned with the Rain Forest logo.The newer T-Rex Cafe has a similar approach to the uniqueness of the dining experience.The T-Rex Cafe offers guests a hands-on prehistoric experience,including educational,interactive computer screens.Customers can also pan for precious gems and fossils in Discovery Creek or feast on food from the Kitchen of Fire.The T-Rex Cafe also has a gift shop,where customers can purchase items with the T-Rex logo or build their very own stuffed dinosaur,through "Build-a-Dino" by the "Build-a-Bear" franchise.
-Refer to Scenario 16.1.The unique dining experiences offered by the Rain Forest Cafe and T-Rex Cafe represent the strategic issue of ____ addressed by the restaurants.

Accepted Answer

A)  retail location
B)  product mix
C)  retail positioning
D)  the wheel of retailing
E)  customer segmentation

Question 16

Ollies' is a regional self-service retail store that sells name-brand electronics,tools,housewares,and sporting goods at low prices.Ollies' is an example of a

Accepted Answer

A)  department store.
B)  discount store.
C)  warehouse showroom.
D)  specialty store.
E)  superstore.

Question 17

Kelly Cramer sees a lovely pair of earrings on a television network and calls a toll-free number to order them,paying with her credit card.This is an example of

Accepted Answer

A)  online retailing.
B)  television home shopping.
C)  telemarketing.
D)  direct-response marketing.
E)  catalog marketing.

Question 18

Taylor works for a company that buys snacks such as chips,cookies,and candy in bulk from manufacturers.Taylor's company then repackages them and sells them to vending companies who have vending machines at government institutions.Taylor most likely works for a(an)___,while the vending machine company is a(an)_____.

Accepted Answer

A)  Wholesaler;retailer
B)  Wholesaler;broker
C)  Broker;retailer
D)  Broker;agent
E)  Agent;retailer

Question 19

Walmart,Macy's,Nordstrom's,and Toys "R" Us are examples of

Accepted Answer

A)  manufacturers.
B)  merchant wholesalers.
C)  end-users.
D)  agents.
E)  retailers.

Question 20

Which of the following is not a common feature of a warehouse club?

Accepted Answer

A)  Concrete floors
B)  Wide aisles
C)  Good customer service
D)  Large packages
E)  Low price per unit

Exam 16: Retailing, direct Marketing, and Wholesaling