Question 1

Match each item to the statement or sentence listed below.
a.stock-keeping unit (SKU)
b.markup
c.markdown
d.retail convergence
e.scrambled merchandising
f.atmospherics
g.selling agent
h.general-merchandise retailer
i.category killer
j.rack jobber
k.merchant wholesaler
l.commission merchant
m.limited-line store
n.retailing
o.mass merchandiser
p.wholesaler
q.direct marketing
-To identify varying items within a product line, retailers refer to a specific product offering as a(n) _____.
2.An auction house is an example of a(n) _____.
3.The _____ is the amount a retailer adds to the cost of a product.
4.A(n) _____ takes title to the goods it handles.
5.The amount by which a retailer reduces the original selling price is called the _____.
6.A(n) _____ is a wholesaler that markets specialized lines of merchandise to retailers.
7.describes a situation in which similar merchandise is available from multiple retailers.
8.Best Buy Electronics store is an example of a(n) _____.
9.is a retailing practice of combining dissimilar product lines.
10.Internet marketing, vending machines, and telemarketing are examples of _____.
11.describe a store's physical characteristics and amenities that attract customers and satisfy their shopping needs.
12.A(n) _____ typically exerts full authority over pricing decisions and promotional outlays.
13.The distribution channel for interacting directly with the consumer is the _____ channel.
14.Customers find a large assortment of products within one product line or a few related lines in a(n) _____.
15.A(n) _____ emphasizes lower prices for well-known brand-name products, high product turnover, and limited services.
16.A(n) _____ takes title to the goods it handles and sells those products primarily to retailers or business users.
17.A retailer that carries a large number and variety of product lines stocked in depth is called a(n) _____.

Accepted Answer

1.A 
2.L 
3.B 
4.K 
5.C 
6.J 
7.D 
8.I 
9.E 
10.Q 
11.F 
12.G 
13.N 
14.M 
15.O 
16.P 
17.H

Question 2

Which of the following is a major component of direct marketing?

Accepted Answer

A)   direct response retailing
B)   online retailing
C)   telemarketing
D)   direct mail C

Question 3

Large advertising expenditures, volume purchasing, and sales training are all hallmarks of the independent retailer.

Accepted Answer

A) True 
 B)False  False

Question 4

Best Buy Electronics store and Toys "R" Us, retailers that combine large selections and low prices on single product lines, are known as category killers.

Accepted Answer

A) True 
 B)False

Question 5

What is scrambled merchandising? Provide a descriptive example.

Accepted Answer

The answer of What is scrambled merchandising? Provide a descriptive...

Question 6

The wheel of retailing describes the cycle of stores moving back and forth from rural/suburban areas to urban areas, based on the shifting trends in demographics.

Accepted Answer

A) True 
 B)False

Question 7

What must a retailer do after identifying a target market?

Accepted Answer

A)   develop marketing strategies to attract chosen customers to its stores
B)   get sufficient funding to change all displays and store decor
C)   contact new suppliers to purchase products that fit their target
D)   develop new pricing strategies to increase their prestigious image and value

Question 8

Needs and preferences of the target market, offerings of competitors, and the profitability of each product line and category are all factors included in the choice of the perfect merchandising mix for a retailer.

Accepted Answer

A) True 
 B)False

Question 9

What is a retail establishment that carries a wide variety of product lines, all stocked in some depth, referred to as?

Accepted Answer

A)   general-merchandise retailer
B)   mass merchandiser
C)   specialty store
D)   shopping store

Question 10

How are independent retailers able to compete with other types of retailers?

Accepted Answer

A)   through individual and specialized buying power
B)   through retail cooperatives
C)   through limited numbers
D)   through inflexible operating hours

Question 11

Many grocery stores practise scrambled merchandising, offering garden plants, toys, and even lawn mowers as seasonal items to broaden their opportunity to make a sale.

Accepted Answer

A) True 
 B)False

Question 12

Walmart is an example of a category killer since it offers a wide range of merchandise at low prices.

Accepted Answer

A) True 
 B)False

Question 13

In Canada, cash-and-carry wholesalers are increasing in popularity.

Accepted Answer

A) True 
 B)False

Question 14

Advantage Sales & Marketing (ASM), a wholesale intermediary, represents national food manufacturers and is mainly responsible for sales and merchandising at the retail level, as well as providing feedback to the manufacturers.ASM does NOT take title, nor does it deliver products.How can this company best be described?

Accepted Answer

A)   as a manufacturer's representative
B)   as a commission merchant
C)   as a selling agent
D)   as a drop shipper

Question 15

What is IKEA (home furnishings and housewares) an example of?

Accepted Answer

A)   superstore
B)   limited-line store
C)   regional shopping store
D)   anchor store

Question 16

At what type of stores do consumers usually compare prices, assortments, and quality levels of competing outlets before making purchase decisions?

Accepted Answer

A)   department stores
B)   mass merchandisers
C)   specialty stores
D)   shopping stores

Question 17

How has retail activity shifted over the past several decades?

Accepted Answer

A)   away from suburban shopping centres and toward downtown retail districts
B)   away from residential neighbourhoods and toward industrial areas
C)   away from downtown retail districts and toward suburban shopping centres
D)   away from large cities and toward smaller towns

Question 18

What is it called when a retailer tries to convince a customer to buy a higher-priced item than he or she had originally intended?

Accepted Answer

A)   personal promotion
B)   one-on-one persuasion
C)   selling up
D)   value-added selling

Question 19

What is the unique kind of limited-line retailer that offers wide selection and low prices in a single product line?

Accepted Answer

A)   the value store
B)   the price killer
C)   the category killer
D)   the scrambled retailer

Question 20

What is the amount called that a retailer adds to the product's cost to determine the selling price?

Accepted Answer

A)   overhead expenses
B)   markup
C)   markdown
D)   the return on investment objective

Exam 12: Retailers Wholesalers and Direct Marketers

Which of the following is a major component of direct marketing?

Large advertising expenditures, volume purchasing, and sales training are all hallmarks of the independent retailer.

Best Buy Electronics store and Toys "R" Us, retailers that combine large selections and low prices on single product lines, are known as category killers.

What is scrambled merchandising? Provide a descriptive example.

The wheel of retailing describes the cycle of stores moving back and forth from rural/suburban areas to urban areas, based on the shifting trends in demographics.

What must a retailer do after identifying a target market?

Needs and preferences of the target market, offerings of competitors, and the profitability of each product line and category are all factors included in the choice of the perfect merchandising mix for a retailer.

What is a retail establishment that carries a wide variety of product lines, all stocked in some depth, referred to as?

How are independent retailers able to compete with other types of retailers?

Many grocery stores practise scrambled merchandising, offering garden plants, toys, and even lawn mowers as seasonal items to broaden their opportunity to make a sale.

Walmart is an example of a category killer since it offers a wide range of merchandise at low prices.

In Canada, cash-and-carry wholesalers are increasing in popularity.

What is IKEA (home furnishings and housewares) an example of?

At what type of stores do consumers usually compare prices, assortments, and quality levels of competing outlets before making purchase decisions?

How has retail activity shifted over the past several decades?

What is it called when a retailer tries to convince a customer to buy a higher-priced item than he or she had originally intended?

What is the unique kind of limited-line retailer that offers wide selection and low prices in a single product line?

What is the amount called that a retailer adds to the product's cost to determine the selling price?