Question 1

Sony calls it SOMO, "sell-one, make one". Relate SOMO to the need to keep inventory costs low.

Accepted Answer

Inventory levels represent a major cost.It is not cost-effective to carry enough stock to fill all customer orders immediately.The ultimate answer to carrying near-zero inventory is to build for order,not for stock.As long as customers do not need the item immediately,everyone can save money.

Question 2

A storeless retailer serving a specific clientele who are entitled to buy from a list of retailers that have agreed to give discounts in return for membership represents which kind of nonstore retailing?

Accepted Answer

A)  multi-level selling 
B)  buying service 
C)  automatic vending 
D)  network marketing 
E)  direct marketing 
A)  multi-level selling 
B)  buying service 
C)  automatic vending 
D)  network marketing 
E)  direct marketing B

Question 3

The three elements of the services mix for retailers includes pre-purchase, post-purchase, and ________ services.

Accepted Answer

A)  transition zone 
B)  target marketing 
C)  breadth and depth 
D)  ancillary 
E)  direct product profitability 
A)  transition zone 
B)  target marketing 
C)  breadth and depth 
D)  ancillary 
E)  direct product profitability D

Question 4

A "brand" developed by a retailer and/or wholesaler that is only available in selected retail outlets is called a ________ brand.

Accepted Answer

A)  private label 
B)  national 
C)  household 
D)  premium 
E)  selective 
A)  private label 
B)  national 
C)  household 
D)  premium 
E)  selective

Question 5

A stock reorder point of 10 means that reordering the product when stock falls to

Accepted Answer

A)  100 units. 
B)  10 units. 
C)  10 hours to delivery. 
D)  10 days after the first of the month. 
E)  10% of max inventory level. 
A)  100 units. 
B)  10 units. 
C)  10 hours to delivery. 
D)  10 days after the first of the month. 
E)  10% of max inventory level.

Question 6

Companies who sell products door-to-door or at home sales parties are engaging in ________.

Accepted Answer

A)  franchising 
B)  direct-response marketing 
C)  corporate selling 
D)  network marketing 
E)  direct marketing 
A)  franchising 
B)  direct-response marketing 
C)  corporate selling 
D)  network marketing 
E)  direct marketing

Question 7

Fine specialty retailers most likely fall into the ________ group with respect to margins and volume.

Accepted Answer

A)  low-volume, mixed markup 
B)  low-volume, low-markup 
C)  high-volume, high-markup 
D)  mixed markup, high-volume 
E)  high-markup, lower-volume 
A)  low-volume, mixed markup 
B)  low-volume, low-markup 
C)  high-volume, high-markup 
D)  mixed markup, high-volume 
E)  high-markup, lower-volume

Question 8

In deciding on the method or means of transportation, shippers consider such criteria as speed, frequency, ________, capability, availability, traceability, and costs.

Accepted Answer

A)  air versus ground 
B)  dependability 
C)  gypsy truckers 
D)  branded name truckers 
E)  costs per mile 
A)  air versus ground 
B)  dependability 
C)  gypsy truckers 
D)  branded name truckers 
E)  costs per mile

Question 9

Every company must store finished goods until they are sold. What are the three different types of warehouses available?

Accepted Answer

Storage warehouses store goods for moder

Question 10

Wholesalers-distributors have faced mounting pressure in recent years. They have had to develop appropriate strategic responses. One major drive has been to increase ________ productivity by managing their inventories and receivables better.

Accepted Answer

A)  buying practices 
B)  asset 
C)  product assortment 
D)  products 
E)  personnel 
A)  buying practices 
B)  asset 
C)  product assortment 
D)  products 
E)  personnel

Question 11

Integrated logistics systems (ILS), involves materials management, ________, and physical distribution, abetted by information technology.

Accepted Answer

A)  information flow systems 
B)  cash flow systems 
C)  channel systems 
D)  product management systems 
E)  material flow systems 
A)  information flow systems 
B)  cash flow systems 
C)  channel systems 
D)  product management systems 
E)  material flow systems

Question 12

The retailer must decide on product-assortment breadth and

Accepted Answer

A)  store location. 
B)  selection. 
C)  depth. 
D)  layout. 
E)  prices. 
A)  store location. 
B)  selection. 
C)  depth. 
D)  layout. 
E)  prices.

Question 13

The choice of transportation methods of distribution have just negligible effects on the prices charged for the product and therefore marketers need not be overly involved in this process.

Accepted Answer

A) True 
 B)False

Question 14

Retailers can locate their stores in the central business district, a regional shopping centre, a ________, a shopping strip, or within a larger store.

Accepted Answer

A)  freestanding 
B)  strip malls 
C)  community shopping centre 
D)  suburbia 
E)  town centres 
A)  freestanding 
B)  strip malls 
C)  community shopping centre 
D)  suburbia 
E)  town centres

Question 15

The Canadian Franchise Association estimates that franchise businesses account for roughly 40 percent of all retail transactions.

Accepted Answer

A) True 
 B)False

Question 16

In the confrontation between manufacturers' and private brands, retailers have many advantages and increasing market power. What are some of the other factors affecting or weakening the national brands?

Accepted Answer

Consumers are more price sensitive today

Question 17

You and your best friend are considering opening a retail store. You have identified your target market and location. Now you must decide on the format. You are pressing for a store that offers leftover goods, overruns and irregular merchandise sold at less than full retail. This is a description of a(n) ________ retailer.

Accepted Answer

A)  superstore 
B)  off-price retailer 
C)  self-service 
D)  limited service 
E)  discount store 
A)  superstore 
B)  off-price retailer 
C)  self-service 
D)  limited service 
E)  discount store

Question 18

Dell requires that each customer order a computer and pay for it in advance. What is their inventory strategy?

Accepted Answer

A)  Running cost optimization 
B)  Near-zero inventory 
C)  Carrying costs 
D)  Bottleneck 
E)  Reorder point management 
A)  Running cost optimization 
B)  Near-zero inventory 
C)  Carrying costs 
D)  Bottleneck 
E)  Reorder point management

Question 19

Electronic shopping is a type of ________.

Accepted Answer

A)  direct marketing 
B)  direct selling 
C)  network marketing 
D)  multilevel selling 
E)  corporate selling 
A)  direct marketing 
B)  direct selling 
C)  network marketing 
D)  multilevel selling 
E)  corporate selling

Question 20

Nonstore retailing falls into four major categories. Which of the following involves telemarketing, television direct-response marketing, and electronic shopping?

Accepted Answer

A)  direct selling 
B)  internet sales 
C)  buying service 
D)  direct marketing 
E)  automatic vending 
A)  direct selling 
B)  internet sales 
C)  buying service 
D)  direct marketing 
E)  automatic vending

Exam 16: Managing Retailing, Wholesaling, and Logistics

Sony calls it SOMO, "sell-one, make one". Relate SOMO to the need to keep inventory costs low.

A storeless retailer serving a specific clientele who are entitled to buy from a list of retailers that have agreed to give discounts in return for membership represents which kind of nonstore retailing?

The three elements of the services mix for retailers includes pre-purchase, post-purchase, and ________ services.

A "brand" developed by a retailer and/or wholesaler that is only available in selected retail outlets is called a ________ brand.

A stock reorder point of 10 means that reordering the product when stock falls to

Companies who sell products door-to-door or at home sales parties are engaging in ________.

Fine specialty retailers most likely fall into the ________ group with respect to margins and volume.

In deciding on the method or means of transportation, shippers consider such criteria as speed, frequency, ________, capability, availability, traceability, and costs.

Every company must store finished goods until they are sold. What are the three different types of warehouses available?

Wholesalers-distributors have faced mounting pressure in recent years. They have had to develop appropriate strategic responses. One major drive has been to increase ________ productivity by managing their inventories and receivables better.

Integrated logistics systems (ILS), involves materials management, ________, and physical distribution, abetted by information technology.

The retailer must decide on product-assortment breadth and

The choice of transportation methods of distribution have just negligible effects on the prices charged for the product and therefore marketers need not be overly involved in this process.

Retailers can locate their stores in the central business district, a regional shopping centre, a ________, a shopping strip, or within a larger store.

The Canadian Franchise Association estimates that franchise businesses account for roughly 40 percent of all retail transactions.

In the confrontation between manufacturers' and private brands, retailers have many advantages and increasing market power. What are some of the other factors affecting or weakening the national brands?

Dell requires that each customer order a computer and pay for it in advance. What is their inventory strategy?

Electronic shopping is a type of ________.

Nonstore retailing falls into four major categories. Which of the following involves telemarketing, television direct-response marketing, and electronic shopping?

Defining Marketing for the 21st Century

Developing Marketing Strategies and Plans

Collecting Information and Forecasting Demand

Conducting Marketing Research

Creating Long term Loyalty Relationships

Analyzing Consumer Markets

Analyzing Business Markets

Identifying Market Segments and Targets

Creating Brand Equity

Crafting the Brand Position

Competitive Dynamics

Setting Product Strategy

Designing and Managing Services

Developing Pricing Strategies and Programs

Designing and Managing Integrated Marketing Channels

Designing and Managing Integrated Marketing Communications

Managing Mass Communications: Advertising, Sales Promotions, Events and Experiences, and Public Relations

Managing Personal Communications: Direct and Interactive Marketing, Word of Mouth, and Personal Selling

Introducing New Marketing Offerings

Tapping into Global Markets

Managing a Holistic Marketing Organization

Filters