Question 1

A major potential problem associated with franchising for the franchisor is that _____.

Accepted Answer

A) money is obtained when goods are delivered,rather than when they are sold 
B) franchisees as owners have less incentive to work hard than employees 
C) it is difficult to set up and enforce franchise qualifications 
D) poorly performing franchises can undermine both consumer and investor confidence 
A) money is obtained when goods are delivered,rather than when they are sold 
B) franchisees as owners have less incentive to work hard than employees 
C) it is difficult to set up and enforce franchise qualifications 
D) poorly performing franchises can undermine both consumer and investor confidence D

Question 2

In most situations,leased departments have been used by existing retailers to _____.

Accepted Answer

A) deepen their merchandise assortment to customers 
B) generate cash flow due to centralized checkouts 
C) improve the store's overall image 
D) broaden their merchandise or service offerings into product categories on the fringe of their business 
A) deepen their merchandise assortment to customers 
B) generate cash flow due to centralized checkouts 
C) improve the store's overall image 
D) broaden their merchandise or service offerings into product categories on the fringe of their business D

Question 3

Due to the intangible nature of services and the need for standardization of image,business format franchising is more appropriate for service sponsor-retailer arrangements than product/trademark franchising.

Accepted Answer

A) True 
 B)False  True

Question 4

In an independent vertical marketing system,manufacturers seek out wholesalers,who seek out retailers to stock and sell products.

Accepted Answer

A) True 
 B)False

Question 5

The type of retailer with the largest percent of total retail franchise sales is _____.

Accepted Answer

A) gasoline service stations 
B) hotels and motels 
C) restaurants 
D) auto and truck dealers 
A) gasoline service stations 
B) hotels and motels 
C) restaurants 
D) auto and truck dealers

Question 6

A business format franchise most closely resembles which vertical marketing system alternative?

Accepted Answer

A) independent vertical marketing system 
B) partially integrated vertical marketing system 
C) fully integrated vertical marketing system 
D) dual vertical marketing system 
A) independent vertical marketing system 
B) partially integrated vertical marketing system 
C) fully integrated vertical marketing system 
D) dual vertical marketing system

Question 7

Retailing is best characterized by which of the following?

Accepted Answer

A) independent ownership dominating sales 
B) franchise organizations dominating sales 
C) ease of entry into the marketplace 
D) vertical marketing systems being fully integrated 
A) independent ownership dominating sales 
B) franchise organizations dominating sales 
C) ease of entry into the marketplace 
D) vertical marketing systems being fully integrated

Question 8

A benefit of franchising to a franchisor is _____.

Accepted Answer

A) the ability to develop a national presence with less franchisor investment than ownership 
B) lack of uniformity 
C) total channel control 
D) intrafranchise competition 
A) the ability to develop a national presence with less franchisor investment than ownership 
B) lack of uniformity 
C) total channel control 
D) intrafranchise competition

Question 9

Franchisors can exclude franchisees from or limit their involvement in the strategic planning process through _____.

Accepted Answer

A) franchisor training 
B) franchisor troubleshooting 
C) limiting purchases to the franchisor or approved vendors 
D) quantity purchases 
A) franchisor training 
B) franchisor troubleshooting 
C) limiting purchases to the franchisor or approved vendors 
D) quantity purchases

Question 10

While chains account for about 30 percent of all retail establishments,they account for what percent of total retail sales?

Accepted Answer

A) 30 
B) 50 
C) 75 
D) 90 
A) 30 
B) 50 
C) 75 
D) 90

Question 11

Which of the following is not a structural arrangement involving retail franchisees?

Accepted Answer

A) manufacturer-retailer 
B) vertical marketing system 
C) service sponsor-retailer 
D) wholesaler-retailer 
A) manufacturer-retailer 
B) vertical marketing system 
C) service sponsor-retailer 
D) wholesaler-retailer

Question 12

Retailers can possess channel control through _____.

Accepted Answer

A) franchising 
B) fair trade legislation 
C) private brands 
D) tying contracts 
A) franchising 
B) fair trade legislation 
C) private brands 
D) tying contracts

Question 13

Centralized buying enables chain retailers to receive quantity discounts,greater bargaining power,and better fit with local market needs.

Accepted Answer

A) True 
 B)False

Question 14

A retailer generates channel control by attaining brand loyalty for its goods and converting it to store loyalty.This retailer is utilizing _____.

Accepted Answer

A) private brands 
B) franchising 
C) bargaining power in negotiations 
D) a fully integrated vertical marketing system 
A) private brands 
B) franchising 
C) bargaining power in negotiations 
D) a fully integrated vertical marketing system

Question 15

Increased coordination among channel members is a major advantage of clear channel roles to all channel members.

Accepted Answer

A) True 
 B)False

Question 16

Many leases in leased departments can be terminated on very short notice (as little as 60 days)by the leasor.This gives the leasor _____.

Accepted Answer

A) decreased bargaining power 
B) increased bargaining power 
C) protection under fair practice laws 
D) additional revenue 
A) decreased bargaining power 
B) increased bargaining power 
C) protection under fair practice laws 
D) additional revenue

Question 17

Uniformity of retail image is not a problem for _____.

Accepted Answer

A) independent retailers 
B) chains 
C) franchises 
D) leased department lessees 
A) independent retailers 
B) chains 
C) franchises 
D) leased department lessees

Question 18

An independent retailer generally can match the bargaining power of a large chain or franchisor in negotiating with suppliers.

Accepted Answer

A) True 
 B)False

Question 19

The most common form of vertical marketing system is _____.

Accepted Answer

A) independent vertical marketing system 
B) partially integrated marketing system 
C) fully integrated marketing system 
D) a retail cooperative 
A) independent vertical marketing system 
B) partially integrated marketing system 
C) fully integrated marketing system 
D) a retail cooperative

Question 20

Channel control is greatest for manufacturers/service sponsors in _____.

Accepted Answer

A) a fully integrated marketing system 
B) business format franchising 
C) product/trademark franchising 
D) an independent marketing system 
A) a fully integrated marketing system 
B) business format franchising 
C) product/trademark franchising 
D) an independent marketing system

A major potential problem associated with franchising for the franchisor is that _____.

In most situations,leased departments have been used by existing retailers to _____.

Due to the intangible nature of services and the need for standardization of image,business format franchising is more appropriate for service sponsor-retailer arrangements than product/trademark franchising.

In an independent vertical marketing system,manufacturers seek out wholesalers,who seek out retailers to stock and sell products.

The type of retailer with the largest percent of total retail franchise sales is _____.

A business format franchise most closely resembles which vertical marketing system alternative?

Retailing is best characterized by which of the following?

A benefit of franchising to a franchisor is _____.

Franchisors can exclude franchisees from or limit their involvement in the strategic planning process through _____.

While chains account for about 30 percent of all retail establishments,they account for what percent of total retail sales?

Which of the following is not a structural arrangement involving retail franchisees?

Retailers can possess channel control through _____.

Centralized buying enables chain retailers to receive quantity discounts,greater bargaining power,and better fit with local market needs.

A retailer generates channel control by attaining brand loyalty for its goods and converting it to store loyalty.This retailer is utilizing _____.

Increased coordination among channel members is a major advantage of clear channel roles to all channel members.

Many leases in leased departments can be terminated on very short notice (as little as 60 days)by the leasor.This gives the leasor _____.

Uniformity of retail image is not a problem for _____.

An independent retailer generally can match the bargaining power of a large chain or franchisor in negotiating with suppliers.

The most common form of vertical marketing system is _____.

Channel control is greatest for manufacturers/service sponsors in _____.

An Introduction to Retailing

Building and Sustaining Relationships in Retailing

Strategic Planning in Retailing

Retail Institutions by Store-Based Strategy

Web, Nonstore-Based, and Other Forms of Nontraditional Retailing

Identifying and Understanding Consumers

Information Gathering and Processing in Retailing

Trading-Area Analysis

Site Selection

Retail Organization and Human Resource Management

Operations Management: Financial Dimensions

Operations Management: Operational Dimensions

Developing Merchandise Plans

Implementing Merchandise

Financial Merchandise Management

Pricing in Retailing

Establishing and Maintaining a Retail Image

Promotional Strategy

Integrating and Controlling the Retail Strategy

Filters

Exam 4: Retail Institutions by Ownership

A major potential problem associated with franchising for the franchisor is that _____.

In most situations,leased departments have been used by existing retailers to _____.

Due to the intangible nature of services and the need for standardization of image,business format franchising is more appropriate for service sponsor-retailer arrangements than product/trademark franchising.

In an independent vertical marketing system,manufacturers seek out wholesalers,who seek out retailers to stock and sell products.

The type of retailer with the largest percent of total retail franchise sales is _____.

A business format franchise most closely resembles which vertical marketing system alternative?

Retailing is best characterized by which of the following?

A benefit of franchising to a franchisor is _____.

Franchisors can exclude franchisees from or limit their involvement in the strategic planning process through _____.

While chains account for about 30 percent of all retail establishments,they account for what percent of total retail sales?

Which of the following is not a structural arrangement involving retail franchisees?

Retailers can possess channel control through _____.

Centralized buying enables chain retailers to receive quantity discounts,greater bargaining power,and better fit with local market needs.

A retailer generates channel control by attaining brand loyalty for its goods and converting it to store loyalty.This retailer is utilizing _____.

Increased coordination among channel members is a major advantage of clear channel roles to all channel members.

Many leases in leased departments can be terminated on very short notice (as little as 60 days)by the leasor.This gives the leasor _____.

Uniformity of retail image is not a problem for _____.

An independent retailer generally can match the bargaining power of a large chain or franchisor in negotiating with suppliers.

The most common form of vertical marketing system is _____.

Channel control is greatest for manufacturers/service sponsors in _____.

An Introduction to Retailing

Building and Sustaining Relationships in Retailing

Strategic Planning in Retailing

Retail Institutions by Store-Based Strategy

Web, Nonstore-Based, and Other Forms of Nontraditional Retailing

Identifying and Understanding Consumers

Information Gathering and Processing in Retailing

Trading-Area Analysis

Site Selection

Retail Organization and Human Resource Management

Operations Management: Financial Dimensions

Operations Management: Operational Dimensions

Developing Merchandise Plans

Implementing Merchandise

Financial Merchandise Management

Pricing in Retailing

Establishing and Maintaining a Retail Image

Promotional Strategy

Integrating and Controlling the Retail Strategy

Filters