Deck 16: Retailing and Wholesaling

Question 1

Five of the 40 largest businesses in the United States are retailers-Walmart, Amazon, Costco, Home Depot, and

A) Kohl's.
B) Target
C) Best Buy.
D) JC Penney.
E) Bloomingdale's

Answer 1

B

Question 2

Subway restaurants that offer sandwiches made exactly to each customer's preference are providing ________ utility.

A) time
B) place
C) possession
D) form
E) process

Answer 2

D

Question 3

The ________ provided by retailers create value for consumers.

A) utilities
B) wholesaling functions
C) outsourcing functions
D) profits
E) synergies

Answer 3

A

Question 4

The ability to shop over the Internet 24 hours a day, seven days a week, provides consumers with ________ utility.

A) form
B) time
C) convenience
D) possession
E) performance

Question 5

Retailing is an important marketing activity. Not only do producers and consumers meet through retailing actions, but retailing also creates

A) the nation's largest source of tax revenues.
B) the largest source of charitable contributions.
C) limited utilities for consumers.
D) customer value.
E) a sense of community.

Question 6

Albertsons Grocery Store accepts debit and credit cards as well as cash and checks for purchases. Its acceptance of various forms of payment provides its customers with ________ utility.

A) time
B) place
C) possession
D) form
E) public

Question 7

Outside the United States, large retailers include ________ in Japan, Carrefour in France, Metro Group in Germany, and Tesco in Britain.

A) Aeon
B) Toshei
C) Seebi
D) Goshen
E) Toshi

Question 8

CarMax dealers have adopted a "no-haggle" sales policy that eliminates the need for negotiating. Instead, all customers are offered the same price. Test drives, financing, trade-ins, and leasing are all offered to encourage customers to purchase a car. Which utility does CarMax best provide?

A) product
B) form
C) convenience
D) service
E) possession

Question 9

The greatest dollar amount of retail sales in the United States is generated by

A) food and beverage stores.
B) sporting goods, hobby, book, and music stores.
C) electronic stores.
D) motor vehicle and parts dealers.
E) furniture and home furnishing stores.

Question 10

Of these categories, the smallest dollar amount of retail sales in the United States is generated by

A) motor vehicle and parts dealers.
B) food and beverage stores.
C) sporting goods, hobby, music, and book stores.
D) gasoline stations.
E) building material and garden stores.

Question 11

All activities involved in selling, renting, and providing products and services to ultimate consumers for personal, family, or household use are referred to as

A) manufacturing.
B) retailing.
C) wholesaling.
D) facilitating.
E) logistics.

Question 12

Enterprise car rental agency differentiates itself from other similar agencies by providing a delivery service. This delivery service is particularly valuable to someone who has been left stranded without transportation. By making it easy to rent temporary transportation, Enterprise is emphasizing which utility?

A) form
B) product
C) service
D) possession
E) convenience

Question 13

The four utilities offered to consumers through retailing are

A) convenience, performance, possession, and form.
B) time, place, possession, and form.
C) product, price, place, and promotion.
D) people, productivity, process, and physical environment.
E) convenience, consistency, competition, and choice.

Question 14

Wells Fargo is one of the largest banks in the United States. It reaches retail customers through 5,000 retail branches, a worldwide network of 13,000 ATMs, and its online banking service. Which utility does Wells Fargo best provide?

A) time
B) possession
C) place
D) form
E) performance

Question 15

Walmart's $514 billion in sales in 2018 surpassed the gross domestic product of all but ________ countries for that same year.

A) 5
B) 12
C) 18
D) 24
E) 36

Question 16

Since Generation Z is interested in ________, mall stores such as American Eagle Outfitters and Levi Strauss have tailors to add patches, paint, embossing, and monogram stitching.

A) quality
B) environmentalism
C) fast fashion
D) personalization
E) fair trade

Question 17

Which of these is one of the largest retailers in the United States?

A) Hallmark
B) Procter & Gamble
C) Merck
D) Home Depot
E) Johnson and Johnson

Question 18

At the Christmas Tree Shop, customers can shop for Christmas gifts and decor at any time of the year. What type of utility does this store provide for its customers?

A) place and conformance
B) possession and form
C) form
D) performance
E) time

Question 19

Dick's Sporting Goods is a leading sports retailer that provides year-round inventory of equipment for just about any sport. Even during the off-season, equipment for seasonal sports is available at Dick's. Which utility does it best provide?

A) time
B) convenience
C) possession
D) form
E) performance

Question 20

Retailing includes all activities involved in the

A) selling, renting, and providing of products and services to ultimate consumers for personal, family, or household use.
B) selling of tangible products to ultimate consumers for personal, family, or household use.
C) selling of tangible products to ultimate consumers for personal, household, or industrial use.
D) selling, renting, leasing, or reselling of products and services to ultimate consumers or small industrial users.
E) selling, renting, and providing of products and services without retaining the title to these offerings.

Question 21

Which of these is a commonly used method of retail outlet classification?

A) service versus goods
B) level of service
C) proportion of national versus private label brands carried
D) revenues generated
E) profitability

Question 22

There are three general forms of retail ownership: contractual system, independent retailer, and

A) dual ownership.
B) industry consortium.
C) retailing cooperative.
D) multinational cartel.
E) corporate chain.

Question 23

Your neighborhood dry cleaner or florist is likely to be categorized as an independent retailer. This means it is owned by

A) an individual.
B) a conglomerate.
C) a consortium.
D) a corporate chain.
E) a cooperative.

Question 24

Which form of retail outlet would most likely offer customers convenience, quality personal service, and lifestyle compatibility?

A) corporate chain
B) independent retailer
C) administered system
D) contractual system
E) sole incorporation

Question 25

Which of these statements regarding corporate chains is most accurate?

A) Corporate chains cannot bargain with a manufacturer to obtain product volume discounts due to federal anticompetitive legislation-the Clayton Act as amended by the Sherman Act.
B) Corporate chains generally own most if not all of their suppliers-a practice known as forward integration-so they can save distribution costs.
C) Consumers have fewer choices in merchandise since all buying decisions are made by a decentralized buying committee.
D) Corporate chains offer the least benefit to consumers since they are the farthest removed from the ultimate consumer.
E) Corporate chains are multiple outlets under common ownership.

Question 26

The three key methods of classifying retail operations are

A) method of operation, revenues generated, and merchandise line.
B) form of ownership, method of operation, and merchandise line.
C) form of ownership, level of service, and merchandise line.
D) level of service, merchandise line, and revenues generated.
E) merchandise line, form of ownership, and revenues generated.

Question 27

The sustainability and environmental responsibility trend has become so important that evaluates eight indicators of environmental performance to provide annual "green rankings" of large companies.

A) the Environmental Protection Agency
B) the U.S. Chamber of Commerce-Environmental Division
C) Green Cross International
D) Newsweek
E) Leadership in Energy and Environmental Design (LEED)

Question 28

Bloomingdale's stores are part of the Macy's

A) corporate chain.
B) consumer cooperative.
C) contractual system.
D) retail conglomerate.
E) administered system.

Question 29

The ________ distinguishes types of retail outlets, with independent retailers, corporate chains, or contractual systems being the three general forms.

A) wheel of retailing
B) service level
C) merchandise line
D) product assortment
E) form of ownership

Question 30

Level of service is used to describe the degree of service provided to the customer. Three levels of service are provided by self-, ________, and full-service retailers.

A) limited-
B) total-
C) involvement-
D) obligation-
E) fixed-

Question 31

Independent retailers account for most of the ________ retail establishments in the United States.

A) 50,000
B) 90,000
C) 900,000
D) 1.8 million
E) 3.8 million

Question 32

A method of classification that describes how many different types of products a store carries and in what assortment is referred to as a

A) product mix.
B) service level.
C) product variety.
D) store composition.
E) merchandise line.

Question 33

One method of classification categorizes a retailer as self-, limited-, or full-

A) involvement.
B) assortment.
C) management.
D) service.
E) ownership.

Question 34

When Home Depot switched its in-store light fixture displays to compact fluorescent light and LED bulbs, painted the roofs of its stores white, and installed solar panels, it reduced its energy use by ________ percent.

A) 5
B) 10
C) 15
D) 20
E) 25

Question 35

Most of the 3.8 million retail establishments in the United States, including hardware stores, convenience stores, clothing stores, and electronics stores, are considered

A) corporate chains.
B) contractual systems.
C) independent retailers.
D) conglomerates.
E) multinationals.

Question 36

Retail corporate chains benefit consumers in part because

A) corporate chains have more experience than other forms of retailers.
B) consumers can own stock in the same company where they shop since corporate chain stock must be publicly traded.
C) consumers can establish a credit history more easily than with other forms of retailers.
D) chains have multiple outlets with similar merchandise and consistent management policies.
E) consumers have less stress in making decisions since merchandise is arranged and displayed by professional designers.

Question 37

Consumers benefit in dealing with retail corporate chains because

A) corporate chains have more experience than other forms of retailers.
B) consumers can own stock in the same company where they shop since corporate chain stock must be publicly traded.
C) chains can bargain with a manufacturer to obtain product volume discounts on orders, which can be passed on to consumers in terms of lower prices.
D) there are multiple outlets, each with its own varied merchandise and different management policies.
E) merchandise is arranged and displayed by professional designers making their shopping experience less stressful.

Question 38

A form of ownership that involves multiple outlets under common ownership is referred to as

A) a corporate chain.
B) a consumer cooperative.
C) a contractual system.
D) an independent retailer.
E) an administered system.

Question 39

One of the most common forms of retail ownership is the ________ owned by an individual.

A) corporate chain
B) consumer cooperative
C) contractual system
D) independent retailer
E) administered systems

Question 40

Aeon, Carrefour, Tesco, and Metro Group are

A) sizable wholesalers that handle products for the world's largest retailers.
B) new Internet start-ups that have the potential to impact the U.S. economy.
C) large retailers outside of the United States.
D) large distributors of business products.
E) historic companies that developed consumer selling systems, though none of them exist today.

Question 41

The acronym RFID stands for

A) retail franchise identification designation.
B) required financial identification.
C) radar frequency identification.
D) radio frequency identification.
E) retail federation of independent department stores.

Question 42

In ________, an individual or firm contracts with a parent company to set up a business or retail outlet.

A) an administered system
B) a vertically integrated chain
C) aretail-sponsored cooperative
D) afranchise system
E) acorporate system

Question 43

What type of contractual system describes a situation in which assistance in selecting the location, setting up the store or facility, advertising, and training personnel is provided by the parent company?

A) administered system
B) conglomerate system
C) franchise system
D) vertical integrated system
E) retail-sponsored cooperative

Question 44

Independently owned stores that band together to gain benefits of a chain are referred to as

A) corporate chains.
B) cooperative marketing systems.
C) contractual systems.
D) regional shopping centers.
E) self-service systems.

Question 45

Franchising is a type of

A) administered system.
B) contractual system.
C) vertically integrated chain.
D) retail-sponsored cooperative.
E) corporate system.

Question 46

The three commonly used terms to describe levels of service in retailing are

A) self-service, limited-service, and full-service.
B) retailer-service, sales-service, and customer-service.
C) self-service, automated-service, and online-service.
D) limited-service, full-service, and automated-service.
E) wholesaler-service, retailer-service, and customer-service.

Question 47

Costco requires customers to perform many shopping functions during the purchasing process and all nonessential customer services have been eliminated. What level of service does Costco offer?

A) limited-service
B) full-service
C) customized-service
D) self-service
E) restricted-service

Question 48

By selling franchises, an organization ________ the cost of expansion and ________ its control compared to owning its own retail outlets.

A) increases; increases
B) increases; reduces
C) reduces; increases
D) increases; retains almost all
E) reduces; reduces

Question 49

Franchising is attractive for the franchisee because

A) it gives the franchisee complete control over the delivery and presentation of merchandise.
B) the license fees paid to the franchisor are the only fees the franchisee pays.
C) it relieves the franchisee from any company or product liabilities.
D) it offers the franchisee the opportunity to enter into a well-known, established business where managerial advice is provided.
E) the franchisee is completely his or her own boss.

Question 50

Redbox has 40,000 kiosks throughout the United States for movie and video game rental and it operates without a single clerk. What level of service does this retailer offer?

A) full-service
B) self-service
C) limited-service
D) customized-service
E) functional-service

Question 51

Which method of retail outlet classification is most appropriate for describing franchise operations?

A) form of ownership
B) level of service
C) merchandise line
D) method of operation
E) revenues generated

Question 52

Walmart has developed a sophisticated inventory management and cost control system that allows rapid price changes for each product in the store. The firm also uses technologies such as ________ to improve the quality of information available about the shopping experience in their stores .

A) radio frequency identification (RFID) tags
B) encapsulation techniques
C) bar code scanners
D) nanotechnology
E) cookies

Question 53

General merchandise stores such as Walmart, Kmart, and Target are usually considered ________ retailers.

A) exclusive-service
B) minimal-service
C) self-service
D) full-service
E) limited-service

Question 54

The level of service that requires the customers themselves perform many functions during the purchase process is

A) full-service.
B) limited-service.
C) self-service.
D) customized-service.
E) automated-service.

Question 55

The three basic types of contractual systems are

A) retailer-sponsored cooperatives, wholesaler-sponsored voluntary chains, and franchises.
B) dual ownership agreements, industry consortiums, and nonbinding cooperatives.
C) wholesaler-sponsored voluntary chains, nonbinding cooperatives, and franchises.
D) dual ownership agreements, industry consortiums, and multinational cartels.
E) nonbinding, binding, and in perpetuity.

Question 56

Which of these retailers provide self-service to their customers?

A) Zipcar
B) Footlocker
C) Target
D) 7-11
E) Apple

Question 57

One way neighborhood grocers can take advantage of volume discounts commonly available to corporate chains is to

A) purchase a franchise membership.
B) become a subsidiary of a larger supermarket chain such as Kroger.
C) join a professional merchant association and hire food brokers to negotiate lower prices for produce and dry goods.
D) create a grocery networking system to exchange coupon vouchers.
E) participate in a retailer-sponsored cooperative with other independent grocers.

Question 58

Gas stations, supermarkets, and airlines that have automated check-out or check-in terminals are providing what level of retail service?

A) full-service
B) limited-service
C) customized-service
D) self-service
E) automated-service

Question 59

As a franchisor, Orangetheory Fitness would assist a franchisee in selecting the store location, setting up the store, advertising, and

A) developing the marketing program.
B) training personnel.
C) offering performance bonuses.
D) ordering and restocking inventory.
E) paying insurance and legal fees.

Question 60

Outlets where customers are responsible for most shopping activities, although salespeople are available in some departments, would be classified as ________ retail outlets.

A) limited-service
B) exclusive-service
C) minimal-service
D) self-service
E) full-service

Question 61

Kohl's is a moderately priced retailer that sells name-brand fashions and home goods. A few salespeople are available in the jewelry department, but customers are responsible for most of their shopping activities. Kohl's provides its consumers with

A) full service.
B) limited service.
C) self-service.
D) restricted service.
E) functional service.

Question 62

Nordstrom stores typically have 50 percent more salespeople on the floor than other retailers with stores of similar sizes. Its salespeople are renowned for their professional and personalized attention to customers. Nordstrom offers a wide variety of services, including on-site alterations and tailoring, a seven-days-a-week customer service line, live chat line with beauty, design, and wedding specialists and would be considered

A) an exclusive-service retailer.
B) a limited-service retailer.
C) a full-service retailer.
D) an above-market service retailer.
E) a preferred-service retailer.

Question 63

Most specialty stores and department stores, which provide many services to their customers, are considered to be

A) exclusive-service retailers.
B) limited-service retailers.
C) full-service retailers.
D) unlimited-service retailers.
E) exhaustive-service retailers.

Question 64

Depth of product line refers to

A) the percentage of goods stored as inventory.
B) the variety of different product items a store carries.
C) variations in price and color on specific items in a store.
D) the assortment of each item carried by a store.
E) the number of different product classes owned by a corporate chain.

Question 65

Nike offers shoes for men, women, and children in many sizes and widths. It offers running, cross training, walking, golf, and other types of shoes. This is an example of the ________ that Nike offers to its customers through its own stores or other retailers such as Foot Locker.

A) product items
B) depth of product line
C) breadth of product line
D) versatility of product family
E) variety of product mix

Question 66

Godiva Chocolatier invites consumers to stop by one of its stores for an unforgettable experience, including delectable chocolates, decorative gift collections, and unrivaled customer care. What type of retail service is Godiva offering?

A) full service
B) limited service
C) self-service
D) restricted service
E) functional service

Question 67

The variety of different items a store carries is referred to as the

A) retailing mix.
B) depth of product line.
C) breadth of product line.
D) width of product line.
E) length of product line.

Question 68

A Woman's Place is a retail store, created and staffed by women, that offers products and services relating to maternity needs. For expectant mothers, it offers advice and personal shopping services, help with hair and/or make-up problems, and free delivery. A Woman's Place is an example of ________ retailer.

A) a franchise
B) a self-service
C) a limited-service
D) a full-service
E) an upscale

Question 69

Stores that carry a considerable assortment (depth) of a related line of items are referred to as

A) limited-line stores.
B) general merchandise stores.
C) scrambled merchandise stores.
D) hypermarkets.
E) intertype outlets.

Question 70

A large assortment of each item within a product line in a store is referred to as

A) product span.
B) breadth of product line.
C) length of product line.
D) width of product line.
E) depth of product line.

Question 71

Retail outlets vary by their merchandise lines, the key distinction being the ________ of the items offered to customers.

A) scope and span
B) breadth and depth
C) breadth and inventory
D) scope and inventory
E) range and span

Question 72

Saks Fifth Avenue is an upscale retailer that offers designer brand women's apparel, fragrances, jewelry, and leather accessories. The retailer relies on superior service to sell its products and to retain its customers. Saks Fifth Avenue would be classified as

A) an exclusive-service retailer.
B) a limited-service retailer.
C) a full-service retailer.
D) a premium-service retailer.
E) an augmented-service retailer.

Question 73

Your local Target retailer carries a variety of different items. You can find everything ranging from socks and electronics to baby items and groceries. This is an example of the ________ carried by Target.

A) breadth of product line
B) depth of product line
C) variety of brand extension
D) breadth of product class
E) product mix

Question 74

Your local Hallmark retailer carries thousands of greeting cards. You can find cards for a twin birthday, graduation, from my cat to yours, and many other unique occasions. This is an example of the ________ that the Hallmark retailer carries.

A) depth of product line
B) breadth of product line
C) height of product line
D) length of product line
E) width of product line

Question 75

At which level of service would the customer be expected to perform the least number of functions?

A) automated service
B) minimal service
C) self-service
D) limited service
E) full service

Question 76

Williams-Sonoma is a specialty store that caters to customers who like to cook at home. It offers free cooking classes, has frequent demonstrations by cookbook authors, and has employees who are knowledgeable about food preparation. The sales staff helps customers make their selections. Williams-Sonoma is ________ retailer.

A) an exclusive-service
B) a full-service
C) an upscale-service
D) a self-service
E) a limited-service

Question 77

Dick's Sporting Goods stores carry considerable depth in sports equipment ranging from weight-lifting accessories to running shoes. Dick's Sporting Goods is most likely classified as which retail variation based on this large assortment in related sporting goods categories?

A) single-line
B) full-service
C) full-line
D) limited-service
E) limited-line

Question 78

Stores that carry tremendous depth in one primary line of merchandise are referred to as

A) hypermarkets.
B) intertype outlets.
C) scrambled merchandise stores.
D) limited-line stores.
E) single-line stores.

Question 79

Target recently introduced its Target REDcard, where cardholders receive 5 percent back for each purchase. Target also allows customers to return merchandise within 30 days but still does not offer alteration or fitting services. Target offers what level of service to its customers?

A) full service
B) self-service
C) automated service
D) limited service
E) customized service

Question 80

Sally Beauty Supply sells products for hair, skin, and nail care as well as cosmetics. It is most likely classified as which retail variation based on the considerable assortment of beauty and personal care products it carries?

A) single-line
B) full-service
C) full-line
D) limited-service
E) limited-line