Deck 12: Retailers Wholesalers and Direct Marketers

Question 1

When developing a retail strategy, what task should be completed first?

A) determining a merchandising strategy
B) selecting a target market
C) establishing customer-service standards
D) outlining a promotional strategy

Answer 1

B

Question 2

Which of the following types of utility do retailers NOT create?

A) form utility
B) ownership utility
C) place utility
D) time utility

Answer 2

A

Question 3

What type of shopping centre serves at least 250 000 people within a 30-minute driving-time radius and usually houses several major department stores in addition to as many as 200 smaller stores?

A) a neighbourhood shopping centre
B) a regional shopping centre
C) a power centre
D) a community shopping centre

Answer 3

B

Question 4

What type of shopping centre averages 300 000 square feet and seeks to offer a combination of shopping, entertainment, and restaurants in an attractive environment preserving the intimacy of neighbourhood retailing?

A) power centre
B) lifestyle centre
C) local mall
D) downtown boutique

Question 5

According to the wheel of retailing, how does a new type of retailer gain a competitive foothold?

A) by charging lower prices and offering better service
B) by charging higher prices and offering better service
C) by charging lower prices and offering reduced services
D) by charging higher prices and offering reduced services

Question 6

Which of the following will a retailer's customer-service strategy NOT depend on?

A) store size
B) inventory sources
C) customer expectations
D) services offered by competitors

Question 7

What does the basic objective of all customer services focus on?

A) reducing operational expenses
B) surpassing competitors' service offerings
C) ensuring employees are happy and motivated
D) attracting and retaining target customers

Question 8

What results from the combination of all retailing mix components?

A) a store's retail economy
B) a store's projections of sales
C) a store's retail prestige
D) a store's retail image

Question 9

What type of shopping centre serves 20 000 to 100 000 people in a trade area extending a few kilometres from its location and contains anywhere from 10 to 30 retail stores, often with a department store serving as the primary tenant?

A) a neighbourhood shopping centre
B) a regional shopping centre
C) a power centre
D) a community shopping centre

Question 10

What marketing channel member directly determines the prices consumers pay?

A) the wholesaler
B) the producer or supplier
C) the shopping centre
D) the retailer

Question 11

What kind of product line do department stores favour that has lead them to eliminate product categories such as toys, appliances, and furniture from their merchandise assortment?

A) product lines that create a more prestigious image
B) product lines that have greater profitability
C) product lines that directly compete with the competition
D) product lines that cannot be purchased online

Question 12

What are the activities involved in selling merchandise to ultimate consumers known as?

A) consumer selling
B) B2G marketing
C) retailing
D) wholesaling

Question 13

What do the prices charged by a retailer reflect?

A) the retailer's marketing objectives and policies
B) the retailer's desire to serve the public
C) the retailer's approach to mass media
D) the retailer's location strategy

Question 14

Which of the following retailers is an exception to the wheel of retailing?

A) discount stores
B) grocery stores
C) online retailers
D) convenience food stores

Question 15

Aside from the services performed by the retailer, what determines the amount of markup a retailer adds to the product's cost?

A) overhead expenses
B) the inventory turnover rate
C) advertising costs
D) the return on investment objective

Question 16

What are retailers developing when they consider factors such as general product categories, specific product lines, specific products within lines, and the depth and width of its assortments?

A) their "geographic fit"
B) their target market
C) their pricing strategy
D) their merchandising strategy

Question 17

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

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

Question 18

Aside from a nonrefundable fee, what do some grocery retailers demand from manufacturers in order to secure shelf space for new products?

A) stockkeeping unit (SKU)
B) merchandise credit
C) slotting allowance
D) promotional allowance

Question 19

What must a retailer do after identifying a target market?

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 20

How has retail activity shifted over the past several decades?

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 21

What is a department store?

A) a series of limited-line retail stores that benefit from close proximity to one another
B) a supermarket of product lines offering the lowest price possible
C) a large display of rooms that contain samples of products stored in a warehouse
D) a series of limited-line or specialty stores gathered under one roof

Question 22

What type of retailers provide a combination of product lines, services, and reputation that result in consumers' willingness to expend considerable effort to shop there?

A) specialty retailers
B) shopping stores
C) superstores
D) discount stores

Question 23

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?

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

Question 24

What type of stores, facing high operating costs, have fought back against increasing competition by closing certain departments and becoming more decentralized?

A) extended supermarkets
B) catalogue retailers
C) hypermarkets
D) department stores

Question 25

From the retailer point of view, which of the following BEST describes the characteristic of a store's exterior appearance, including architectural design, window displays, signs, and entryways?

A) it is a major cost factor in the pricing of the goods sold by a store
B) it helps to identify the retailer and attract its target market
C) It generally has little effect on the retailer's image
D) It should be different from one store of the same chain to another to provide variety

Question 26

What type of retailers experience relatively high operating costs, averaging in the range of 45 to 60 percent of sales?

A) department stores
B) hypermarkets
C) customized specialty shops
D) convenience stores

Question 27

The Running Room carries footwear and athletic gear aimed at the runner or outdoor enthusiast.What is this retail store classified as?

A) a shopping store
B) a specialty store
C) a lifestyle store
D) an image store

Question 28

What type of store is identified by having a wide variety of services, such as charge accounts, delivery, gift wrapping, and generous return policies?

A) department store
B) variety store
C) service store
D) convenience store

Question 29

Which of the following retailers is NOT considered to be a category killer?

A) Best Buy electronics
B) Zellers department store
C) Chapters bookstore
D) Home Depot home improvement stores

Question 30

Which of the following could retailers NOT be classified by?

A) form of ownership
B) shopping effort expended by customers
C) services provided to customers
D) geographic location

Question 31

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

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

Question 32

What is the easiest method for classifying retailers?

A) by form of ownership
B) by shopping effort expended by customers
C) by services provided to customers
D) by geographic location

Question 33

What are the physical characteristics and amenities of a retail store called that attract customers and satisfy their shopping needs?

A) atmospherics
B) point-of-sale closure
C) environmental psychographics
D) elements of place satisfaction

Question 34

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

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

Question 35

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

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

Question 36

What do chain stores often benefit from?

A) economies of scale
B) decentralized ownership
C) highly variable product lines
D) limited media selection

Question 37

What type of retailer requires you to become a member?

A) warehouse club
B) scrambled merchandiser
C) catalogue retailer
D) hypermarket

Question 38

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

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

Question 39

A retailer informs a customer that the flashlight he just purchased requires batteries, which the store has available for sale.What is this an example of?

A) cross-selling
B) reminding
C) customer service
D) suggestion selling

Question 40

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

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

Question 41

What are hypermarkets?

A) smaller versions of supercentres-they average 180,000 square feet to the supercentres' 245,000 square feet
B) stores that began their history selling mostly appliances but now sell soft goods, foods, and furniture
C) giant, one-stop shopping facilities that offer wide selections of grocery and general merchandise at discount prices
D) stores that promote to their customers using direct mail and sell from showrooms that display samples

Question 42

What is the phenomenon in retailing in which similar merchandise is available from multiple retail outlets, distinguished by price more than any other factor, known as?

A) scrambled merchandising
B) wholesale concentration
C) mail-order proliferation
D) retail convergence

Question 43

What are independent wholesaling intermediaries called that take title to the goods they sell?

A) buying offices
B) merchant wholesalers
C) manufacturer-owned sales offices
D) retailer-owned cooperatives

Question 44

What is the innovative retailer that offers its customer the greatest selection of grocery and general merchandise products at discount prices?

A) the hypermarket
B) the supermarket
C) the warehouse club
D) the specialty store

Question 45

What has made classifying retailers increasingly difficult?

A) direct selling
B) mass merchandising
C) retail convergence
D) TV home selling

Question 46

Which of the following is NOT a characteristic of discount houses?

A) less customer service
B) lower prices
C) deeper product lines
D) less atmospherics

Question 47

Customers that cannot afford to pay cash for purchases made directly from the manufacturer are granted credit from a wholesale intermediary to purchase those same products from its warehouse.What marketing function is the wholesaler performing?

A) production
B) selling
C) risk taking
D) financing

Question 48

What is the basic distinction between a company's sales branches and its sales offices?

A) Sales branches carry inventory and process orders to customers from available stock.
B) Sales branches are manufacturer-owned, whereas sales offices are not.
C) Sales branches are always national, whereas sales offices are always local.
D) Sales branches are used only for services, whereas sales offices are used only for physical goods.

Question 49

Which of the following retailers follows scrambled merchandising to the greatest degree?

A) Home Depot
B) Best Buy
C) Shoppers Drug Mart
D) Sears

Question 50

How do wholesalers create place utility?

A) by providing prompt delivery
B) by extending credit to product manufacturers
C) by providing a sales force to call upon potential suppliers
D) by undertaking free product design and customization

Question 51

Which of the following are independent wholesaling intermediaries?

A) agents and brokers that take title for the goods
B) intermediaries that may or may not take title
C) producers that retain title after the sale of the goods
D) sales branches that sell directly to the end user

Question 52

Which of the following are NOT ways that wholesaling intermediaries can impact the marketing of products?

A) buying, creating utility, and lowering marketing costs for producers
B) production, quality assurance, and legal liability
C) storing, transporting, selling, and title transfer
D) market information, financing, and risk taking

Question 53

Where are a growing number of off-price retailers concentrating in?

A) outlet malls
B) stand-alone superstores
C) suburban malls
D) small specialty shops

Question 54

Which of the following is an example of scrambled merchandising?

A) a grocery store carrying canned goods, fresh fish, tropical fruits, and bulk grains
B) a jewellery store carrying rings, watches, TVs, electronic games, and DVDs
C) a drug store carrying prescription drugs, over-the-counter medications, and health care items
D) a shoe store carrying shoes, shoe polish, socks, and leather bags

Question 55

What type of retail store stocks only designer labels or well-known, brand-name clothing at prices equal to or below regular wholesale?

A) the supercentre
B) the off-price retailer
C) the department store
D) the variety store

Question 56

What is scrambled merchandising?

A) increasing the number of dissimilar product lines
B) offering a mixed set of retail price levels
C) offering a variety of alternative methods of payment
D) providing mixed hours of operation at different outlets

Question 57

Which of the following is NOT an example of a merchant wholesaler?

A) a food broker calling on mass merchandisers
B) a truck jobber restocking the snack aisle in a grocery store
C) an industrial distributor selling accessory equipment
D) a rack jobber servicing a truck stop with inexpensive impulse items

Question 58

What purpose does the sales branch, a manufacturer-owned facility, have?

A) It provides space for permanent showrooms and exhibits, which manufactures rent to market their goods.
B) It does not carry inventory, but serves as a regional office for a manufacturer's sales personnel.
C) It manufactures and packages goods to the order of its customers.
D) It carries inventory and processes orders from customers from available stock.

Question 59

Which of the following is an example of possession utility?

A) vending machine transaction
B) beauty salon service
C) auto rental
D) college education

Question 60

What types of utility are wholesaling intermediaries creating when they make a product available at a convenient location at the moment it is needed?

A) possession and location
B) ownership and form
C) place and time
D) time and possession

Question 61

What are the two broad categories of independent wholesaling intermediaries?

A) contract agents and wholesalers
B) full-function intermediaries and exclusive-function intermediaries
C) brokers and agents
D) merchant wholesalers, and agents and brokers

Question 62

What is direct-response retailing called that runs promotions on TV networks to sell merchandise through telephone orders?

A) automatic selling
B) computerized selling
C) home shopping
D) out-of-home selling

Question 63

Which of the following is an example of an agent or broker?

A) an intermediary that creates a centralized location where manufacturers can exhibit their products full-time
B) an intermediary that provides small quantities of products in a self-service manner
C) an intermediary that takes freight cars of soy beans to a central market to negotiate sales
D) an intermediary that delivers snack products to grocery and convenience stores, restaurants, hotel chains, and warehouse clubs

Question 64

What is the purpose of a merchandise mart?

A) to provide space for permanent showrooms and exhibits, which manufacturers rent to market their goods
B) to gather buyers and sellers in one location and allow potential buyers to inspect merchandise before submitting competitive purchase offers
C) to accept orders from customers and forward those orders to manufacturers that ship the goods directly to the customers
D) to distribute physical or online catalogues to retail, business, and institutional customers

Question 65

Who is the wholesaling intermediary that operates on a one-time basis for either sellers or buyers of such products as real estate, frozen foods, and used machinery?

A) the selling agent
B) the broker
C) the auction house
D) the drop shipper

Question 66

Who is the agent that predominates in agricultural marketing?

A) the truck wholesaler
B) the broker
C) the selling agent
D) the commission merchant

Question 67

Retailing in North American began with the establishment of trading posts like the Hudson's Bay Company.

Question 68

Retailers, both large and small, perform the major distribution channel activities that result in the creation of time, place, and ownership utilities.

Question 69

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?

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

Question 70

Which of the following is a characteristic of mail-order wholesalers?

A) They are involved in bringing buyers and sellers together.
B) They use catalogues to contact retail or industrial customers
C) They carry no inventory, provide no credit, and do not take title to the goods..
D) They comprise a very small percentage of full-scale merchant wholesalers.

Question 71

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

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

Question 72

Who is the intermediary MOST commonly used in the distribution of such products as tobacco, used cars, artwork, fur, livestock, and fruit?

A) the broker
B) the auction house
C) the commission merchant
D) the selling agent

Question 73

Which of the following is NOT one of the four categories of limited-function merchant wholesalers?

A) cash-and-carry wholesaler
B) truck jobber
C) mail-order wholesaler
D) rack jobber

Question 74

Why might retailer-owned buying groups perform wholesale functions?

A) to disband cooperative chains
B) in order to develop a shortage of wholesalers of all types
C) to boost lack of support received by merchant wholesalers
D) to reduce their costs

Question 75

What are the wholesale intermediaries that deliver Frito-Lay snack products to stores called?

A) retail specialists
B) rack jobbers
C) truck wholesalers
D) cash-and-carry wholesalers

Question 76

What is the major difference between a selling agent and a manufacturer's representative?

A) A selling agent represents several manufacturers, but a manufacturer's representative represents only one manufacturer.
B) A selling agent is paid on a commission basis, but a manufacturer's representative is remunerated on an annual basis.
C) A selling agent serves as an independent marketing department for a manufacturer, while a manufacturer may hire several manufacturers' representatives.
D) A selling agent is paid on an annual basis, but a manufacturer's representative is paid on a commission basis.

Question 77

What is a mail-order wholesaler?

A) a limited-function merchant wholesaler that distributes catalogues instead of sending sales representatives to contact customers
B) an agent that exerts full authority over pricing decisions and promotional outlays, and even provides financial assistance for the manufacturer
C) a limited-function merchant wholesaler that performs most wholesaling functions via the Internet
D) a limited-function wholesaler that accepts orders from customers and forwards these to manufacturers that ship the products direct to the customer

Question 78

Which of the following is an example of nonstore retailing?

A) self-service retailing
B) e-tailing
C) catalogue showrooms
D) mass merchandising

Question 79

Why do selling agents act as independent marketing departments?

A) because they can assume responsibility for pricing, promotional outlays, and financing
B) because they typically operate in industries such as real estate, frozen foods, and used machinery
C) because they are common on the Internet
D) because they typically function as departments within regular full-service wholesalers

Question 80

Which country has the widest array of products available for sale in vending machines?

A) United States
B) Germany
C) Japan
D) Canada