Question 1

Superstores,supermarkets,hypermarkets,and warehouse clubs are represented in the world's top 10 retailers.

Accepted Answer

A) True 
 B)False  True

Question 2

Which statement best explains the increasing power of major retailers over manufacturers?

Accepted Answer

A)  Grocery stores are growing faster than warehouse clubs due to the push to eat locally. 
B)  Today's retail buyers rely on CRP systems to purchase and maintain balanced inventories. 
C)  Manufacturers have the ability to threaten retailers with insufficient quantities of name brand products. 
D)  Suppliers introduce numerous products each year and have to offer promotional allowances to gain shelf space. 
E)  Online retailers are commonly involved in the illegal act of diverting products to out-of-channel distributors. 
A)  Grocery stores are growing faster than warehouse clubs due to the push to eat locally. 
B)  Today's retail buyers rely on CRP systems to purchase and maintain balanced inventories. 
C)  Manufacturers have the ability to threaten retailers with insufficient quantities of name brand products. 
D)  Suppliers introduce numerous products each year and have to offer promotional allowances to gain shelf space. 
E)  Online retailers are commonly involved in the illegal act of diverting products to out-of-channel distributors. D

Question 3

What are the challenges associated with globalizing a retail operation? Given these difficulties,why do retailers continue to attempt globalization?

Accepted Answer

It remains difficult to expand a retail operation across national boundaries,because of (1)the need for quality real estate locations on which to build stores; (2)the demand for physical logistics operations comparable to those in the home country to source and distribute product; (3)the need to develop supplier relationships in new markets,or to internationalize home market suppliers; (4)differences in zoning,pricing,taxation,hours of operation,labor,and hiring,and operational choices that must reflect other regulations in each market; and (5)the need to offer locally attractive products,packaged and positioned in a culturally sensitive manner.Despite these difficulties,retailers have little choice but to globalize (or at least internationalize)their operations,driven by slowing growth in their home markets and the overwhelming attractiveness of developing overseas markets.

Question 4

All of the following most likely indicate that a direct selling organization is legitimate EXCEPT ________.

Accepted Answer

A)  having low entry barriers 
B)  clarifying the firm's code of ethics 
C)  paying for the recruitment of downline members 
D)  basing rewards mostly on product and service sales 
E)  accepting any unsold merchandise for a partial refund 
A)  having low entry barriers 
B)  clarifying the firm's code of ethics 
C)  paying for the recruitment of downline members 
D)  basing rewards mostly on product and service sales 
E)  accepting any unsold merchandise for a partial refund

Question 5

When determining a retail positioning strategy,what are the cost-side and demand-side decisions that must be made?

Accepted Answer

A retail positioning strategy involves b

Question 6

Leah is holding a party at her home for the purpose of demonstrating and selling Mary Kay cosmetics.Leah receives a 10% commission from Mary Kay for every sale she makes.Leah is most likely engaged in ________.

Accepted Answer

A)  targeting 
B)  positioning 
C)  cold calling 
D)  direct selling 
E)  grey marketing 
A)  targeting 
B)  positioning 
C)  cold calling 
D)  direct selling 
E)  grey marketing

Question 7

All of the following are strategies used by Zara EXCEPT ________.

Accepted Answer

A)  making small amounts of products at one time 
B)  owning the firm's logistics and trucking operations 
C)  maintaining strict reordering and shipping schedules 
D)  investing in multiple production facilities around the world 
E)  introducing new styles and product lines on a frequent basis 
A)  making small amounts of products at one time 
B)  owning the firm's logistics and trucking operations 
C)  maintaining strict reordering and shipping schedules 
D)  investing in multiple production facilities around the world 
E)  introducing new styles and product lines on a frequent basis

Question 8

What are the three primary routes to market? What challenges does a retailer or manufacturer face when using multiple retail routes?

Accepted Answer

There are three routes to market: (1)the

Question 9

Why are pyramid schemes illegal?

Accepted Answer

A)  Firms engage in the online sale of products and services. 
B)  Firms receive customer payments without selling products. 
C)  Individuals are actively recruited to fill direct sales positions. 
D)  Salespeople are overly persistent when trying to gain big sales. 
E)  Sales recruits lack the business knowledge and skills to be ethical. 
A)  Firms engage in the online sale of products and services. 
B)  Firms receive customer payments without selling products. 
C)  Individuals are actively recruited to fill direct sales positions. 
D)  Salespeople are overly persistent when trying to gain big sales. 
E)  Sales recruits lack the business knowledge and skills to be ethical.

Question 10

What is most likely suggested by the significant increase in retail e-commerce sales?

Accepted Answer

A)  Retailers are able to conduct efficient bulk breaking. 
B)  Cost-side factors are consistent across markets. 
C)  High profits stem from customer service. 
D)  Consumers demand spatial convenience. 
E)  Positioning relies on product assortment. 
A)  Retailers are able to conduct efficient bulk breaking. 
B)  Cost-side factors are consistent across markets. 
C)  High profits stem from customer service. 
D)  Consumers demand spatial convenience. 
E)  Positioning relies on product assortment.

Question 11

Patty's Party Place ordered five cases of Valentine's Day balloons from a Chinese manufacturer.Patty's purchased the balloons at a cost of ten cents per balloon and will sell them at a cost of $.50/each.Which term best describes the transaction between Patty's and the Chinese manufacturer?

Accepted Answer

A)  direct sale 
B)  retail sale 
C)  niche sale 
D)  consumer sale 
E)  wholesale sale 
A)  direct sale 
B)  retail sale 
C)  niche sale 
D)  consumer sale 
E)  wholesale sale

Question 12

The SG&A-to-net sales percentage for Target is 20.1% and 9.9% for Costco.Which statement best explains this difference?

Accepted Answer

A)  Costco has greater gross sales than Target. 
B)  Target provides less bulk breaking than Costco. 
C)  Costco pays sales representatives less than Target. 
D)  Target invests more in customer service than Costco. 
E)  Costco balances low prices with less customer service than Target. 
A)  Costco has greater gross sales than Target. 
B)  Target provides less bulk breaking than Costco. 
C)  Costco pays sales representatives less than Target. 
D)  Target invests more in customer service than Costco. 
E)  Costco balances low prices with less customer service than Target.

Question 13

Temporary wholesale price cuts cause many retailers to engage in forward buying,which involves buying more product than needed and creating stockpiles.

Accepted Answer

A) True 
 B)False

Question 14

When developing the best combination of waiting and delivery service outputs,a retailer must determine how damaging an out-of-stock situation would be.

Accepted Answer

A) True 
 B)False

Question 15

All of the following are tools that suggest the growing channel power of retailers EXCEPT _______.

Accepted Answer

A)  failure fees 
B)  service outputs 
C)  forward buying 
D)  private branding 
E)  slotting allowances 
A)  failure fees 
B)  service outputs 
C)  forward buying 
D)  private branding 
E)  slotting allowances

Question 16

Which term refers to the activities involved in selling goods and services to ultimate consumers for their personal consumption?

Accepted Answer

A)  segmenting 
B)  positioning 
C)  marketing 
D)  targeting 
E)  retailing 
A)  segmenting 
B)  positioning 
C)  marketing 
D)  targeting 
E)  retailing

Question 17

Jiffy Oil Change purposefully seeks locations that are near busy shopping areas so that car owners can shop while waiting for their car repair to be finished.Which service output is most likely a focus of Jiffy's retail strategy?

Accepted Answer

A)  spatial convenience 
B)  product variety 
C)  customer service 
D)  product assortment 
E)  bulk breaking 
A)  spatial convenience 
B)  product variety 
C)  customer service 
D)  product assortment 
E)  bulk breaking

Question 18

The clothing retailer H&M keeps margins low and turnover high by ________.

Accepted Answer

A)  outsourcing production 
B)  relying on local suppliers 
C)  using third-party designers 
D)  investing in vertical integration 
E)  managing advertising expenditures 
A)  outsourcing production 
B)  relying on local suppliers 
C)  using third-party designers 
D)  investing in vertical integration 
E)  managing advertising expenditures

Question 19

Which type of retailer most likely has a positioning strategy characterized by extremely high spatial convenience,moderate product assortment,and narrow product variety?

Accepted Answer

A)  mail order/catalog 
B)  department store 
C)  category killer 
D)  specialty store 
E)  hypermarket 
A)  mail order/catalog 
B)  department store 
C)  category killer 
D)  specialty store 
E)  hypermarket

Question 20

In most low-price retailing systems,both margins and inventory turnover rates are typically high.

Accepted Answer

A) True 
 B)False

Superstores,supermarkets,hypermarkets,and warehouse clubs are represented in the world's top 10 retailers.

Which statement best explains the increasing power of major retailers over manufacturers?

What are the challenges associated with globalizing a retail operation? Given these difficulties,why do retailers continue to attempt globalization?

All of the following most likely indicate that a direct selling organization is legitimate EXCEPT ________.

When determining a retail positioning strategy,what are the cost-side and demand-side decisions that must be made?

Leah is holding a party at her home for the purpose of demonstrating and selling Mary Kay cosmetics.Leah receives a 10% commission from Mary Kay for every sale she makes.Leah is most likely engaged in ________.

All of the following are strategies used by Zara EXCEPT ________.

What are the three primary routes to market? What challenges does a retailer or manufacturer face when using multiple retail routes?

Why are pyramid schemes illegal?

What is most likely suggested by the significant increase in retail e-commerce sales?

Patty's Party Place ordered five cases of Valentine's Day balloons from a Chinese manufacturer.Patty's purchased the balloons at a cost of ten cents per balloon and will sell them at a cost of $.50/each.Which term best describes the transaction between Patty's and the Chinese manufacturer?

The SG&A-to-net sales percentage for Target is 20.1% and 9.9% for Costco.Which statement best explains this difference?

Temporary wholesale price cuts cause many retailers to engage in forward buying,which involves buying more product than needed and creating stockpiles.

When developing the best combination of waiting and delivery service outputs,a retailer must determine how damaging an out-of-stock situation would be.

All of the following are tools that suggest the growing channel power of retailers EXCEPT _______.

Which term refers to the activities involved in selling goods and services to ultimate consumers for their personal consumption?

Jiffy Oil Change purposefully seeks locations that are near busy shopping areas so that car owners can shop while waiting for their car repair to be finished.Which service output is most likely a focus of Jiffy's retail strategy?

The clothing retailer H&M keeps margins low and turnover high by ________.

Which type of retailer most likely has a positioning strategy characterized by extremely high spatial convenience,moderate product assortment,and narrow product variety?

In most low-price retailing systems,both margins and inventory turnover rates are typically high.

Understanding Channel Strategies

End-User Analysis: Segmenting and Targeting

Channel Analysis: Auditing Marketing Channels

Make Versus Buy Channel Analysis

Designing Channel Structures and Strategies

Wholesaling Structures and Strategies

Franchising Structures and Strategies

Emerging Channel Structures and Strategies

Managing Channel Power

Managing Channel Conflict

Managing Channel Relationships

Managing Channel Policies and Legalities

Managing Channel Logistics

Filters

Exam 6: Retailing Structures and Strategies

Superstores,supermarkets,hypermarkets,and warehouse clubs are represented in the world's top 10 retailers.

Which statement best explains the increasing power of major retailers over manufacturers?

What are the challenges associated with globalizing a retail operation? Given these difficulties,why do retailers continue to attempt globalization?

All of the following most likely indicate that a direct selling organization is legitimate EXCEPT ________.

When determining a retail positioning strategy,what are the cost-side and demand-side decisions that must be made?

Leah is holding a party at her home for the purpose of demonstrating and selling Mary Kay cosmetics.Leah receives a 10% commission from Mary Kay for every sale she makes.Leah is most likely engaged in ________.

All of the following are strategies used by Zara EXCEPT ________.

What are the three primary routes to market? What challenges does a retailer or manufacturer face when using multiple retail routes?

Why are pyramid schemes illegal?

What is most likely suggested by the significant increase in retail e-commerce sales?

Patty's Party Place ordered five cases of Valentine's Day balloons from a Chinese manufacturer.Patty's purchased the balloons at a cost of ten cents per balloon and will sell them at a cost of $.50/each.Which term best describes the transaction between Patty's and the Chinese manufacturer?

The SG&A-to-net sales percentage for Target is 20.1% and 9.9% for Costco.Which statement best explains this difference?

Temporary wholesale price cuts cause many retailers to engage in forward buying,which involves buying more product than needed and creating stockpiles.

When developing the best combination of waiting and delivery service outputs,a retailer must determine how damaging an out-of-stock situation would be.

All of the following are tools that suggest the growing channel power of retailers EXCEPT _______.

Which term refers to the activities involved in selling goods and services to ultimate consumers for their personal consumption?

Jiffy Oil Change purposefully seeks locations that are near busy shopping areas so that car owners can shop while waiting for their car repair to be finished.Which service output is most likely a focus of Jiffy's retail strategy?

The clothing retailer H&M keeps margins low and turnover high by ________.

Which type of retailer most likely has a positioning strategy characterized by extremely high spatial convenience,moderate product assortment,and narrow product variety?

In most low-price retailing systems,both margins and inventory turnover rates are typically high.

Understanding Channel Strategies

End-User Analysis: Segmenting and Targeting

Channel Analysis: Auditing Marketing Channels

Make Versus Buy Channel Analysis

Designing Channel Structures and Strategies

Wholesaling Structures and Strategies

Franchising Structures and Strategies

Emerging Channel Structures and Strategies

Managing Channel Power

Managing Channel Conflict

Managing Channel Relationships

Managing Channel Policies and Legalities

Managing Channel Logistics

Filters