Question 1

A general-line wholesaler would be expected to carry a ____ product mix.

Accepted Answer

A) wide and deep 
B) wide and shallow 
C) narrow and shallow 
D) wide 
E) narrow and deep

Question 2

A retail strategy of managing groups of similar, often substitutable products produced by different manufacturers is called

Accepted Answer

A) category management. 
B) scrambled merchandising. 
C) line extensions. 
D) aggregate management. 
E) wheel of retailing.

Question 3

A channel member that markets all of a manufacturer's goods, has authority over price, promotion, and distribution, but does not take title to the product is a

Accepted Answer

A) general-line wholesaler. 
B) selling agent. 
C) commission merchant. 
D) manufacturers' agent. 
E) broker.

Question 4

Brianna owns and operates a gift and interior store called The Gingerbread House. She works hard to put together beautiful arrangements and displays throughout the store and always features a burning scented candle and light music. She hopes these efforts will encourage her customers to buy more. Brianna is focusing on

Accepted Answer

A) atmospherics. 
B) retail positioning. 
C) location. 
D) scrambled merchandising. 
E) value-pricing.

Question 5

In franchising, which of the following is not a benefit that the franchiser gains?

Accepted Answer

A) The franchiser can gain more rapid product distribution. 
B) The franchiser can acquire capital more quickly for expanding production. 
C) The franchiser gains more control over how the franchisees operate the establishments. 
D) The franchiser benefits from the fact that franchisees tend to be highly motivated to succeed, which in turn leads to higher sales and higher royalties. 
E) All of these are benefits for the franchiser.

Question 6

Scenario 16.2
Use the following to answer the questions.
Lands' End offers clothing and accessories for all members of the typical household. For many years, the products were sold only through catalogs. Later, they were available through the company on its Internet website. In the past few years, Lands' End has partnered with Sears to offer selected Lands' End products inside of Sears retail stores. This move by Lands' End has been criticized by some marketers because it was thought that the Lands' End products were superior in quality to those that are available in Sears stores. Additionally, the products available in Sears stores include Craftsman tools, lawn care equipment, and household appliances, which are not Lands' End types of product lines. This may create mixed messages about Lands' End to prospective customers.
-Refer to Scenario 16.2. When Lands' End sells its products through a catalog or the Internet, it is most likely a(an) ____, selling through ____.

Accepted Answer

A) off-price retailer; direct marketing 
B) mass merchandiser; retail outlets 
C) retailer; direct marketing 
D) specialty retailer; retail outlets 
E) category killer; direct marketing

Question 7

Location is important to a retailer because

Accepted Answer

A) suppliers charge more to service stores in certain trading areas. 
B) a desirable location appeals to consumers' emotions. 
C) location is the major determinant of store image. 
D) location determines the trading area from which the store must draw its customers. 
E) convenient location is an essential customer service element.

Question 8

Kroger, Safeway, and Publix are all considered

Accepted Answer

A) superstores. 
B) groceries. 
C) department stores. 
D) supermarkets. 
E) food stores.

Question 9

The primary advantage of automatic vending as a form of retailing is that

Accepted Answer

A) it offers a low-cost, personal method of selling products. 
B) it provides a continuous service to consumers. 
C) since vending machines must be serviced frequently, the products they sell are always fresh. 
D) vending machines require very few repairs. 
E) it eliminates the need for sales personnel.

Question 10

A difference between manufacturers' agents and selling agents is that

Accepted Answer

A) selling agents have little control over the marketing mix of the manufacturers they represent. 
B) selling agents represent retailers. 
C) manufacturers' agents do not offer retailers aid in advertising or promotional material. 
D) selling agents do not have the territorial restrictions that manufacturers' agents do. 
E) selling agents represent wholesalers.

Question 11

Alison lives in a remote area of Montana, where few good roads exist. She runs a small retail store specializing in western attire. Due to her remote location, Alison is most likely to obtain the merchandise for her store from

Accepted Answer

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

Question 12

In Cara's hometown, there is a mall with a small Sears store, a Macy's department store, a couple of fast food restaurants, a few specialty shops, and some convenience stores. The mall features seasonal sidewalks sales and boat shows. This mall is most likely a ____ shopping center.

Accepted Answer

A) neighborhood 
B) national 
C) regional 
D) community 
E) city

Question 13

Mark Bradley's company takes orders from its collection of retail customers and arranges the shipment of goods directly from manufacturers or other wholesalers to its customers' businesses. Mark is operating as a

Accepted Answer

A) mail-order wholesaler. 
B) drop shipper. 
C) desk wholesaler. 
D) truck jobber. 
E) specialty-line wholesaler.

Question 14

Matt's girlfriend tells him she wants a cashmere sweater for Christmas. Matt decides to go to a store that provides the best possible selection of sweaters. His best choice would be to shop at a ____ store.

Accepted Answer

A) department 
B) catalog 
C) discount 
D) traditional specialty 
E) convenience

Question 15

Which of the following was developed in 1927 to supply milk, eggs, and other products for customers replenishing their ice boxes?

Accepted Answer

A) Supermarkets 
B) Convenience stores 
C) Discount stores 
D) Department stores 
E) Specialty stores

Question 16

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.

Question 17

What situations would benefit from using a selling agent?

Accepted Answer

The answer of What situations would benefit from using a...

Question 18

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 lush tropical plants and aquarium represent the ____ of the Rain Forest Cafe, while the opportunity to Build-a-Dino is an example of ____.

Accepted Answer

A) atmospherics; product lines 
B) retail positioning; customer segmentation 
C) scrambled merchandising; retail positioning 
D) atmospherics; scrambled merchandising 
E) store image; retail positioning

Question 19

Brad operates a wholesale company that specializes in providing a wide variety of services to its customers, which are all restaurants. He carries a wide assortment of restaurant equipment and cookware. Brad's business is a

Accepted Answer

A) general merchandise wholesaler. 
B) rack jobber. 
C) general-line wholesaler. 
D) specialty-line wholesaler. 
E) limited-service wholesaler.

Question 20

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.

Exam 16: Retailing, Direct Marketing, and Wholesaling