Deck 13: Retailing and Wholesaling

Question 1

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 1

D

Question 2

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

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

Answer 2

B

Question 3

Wells Fargo is one of the best-run banks in the United States.It reaches retail customers through 8,700 stores,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

Answer 3

C

Question 4

The __________ provided by retailers create value for consumers.

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

Question 5

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 6

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 7

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 8

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 9

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 the Sports Authority best provide?

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

Question 10

Target sends messages about special offers to ________ wearers who are near its stores,directs them toward sales items once inside,and allows shoppers to initiate payment simply by holding the device near a payment terminal.

A) Apple Watch
B) Amazon Echo
C) Fitbit Flex
D) Google Glass
E) Foursquare's FourEyes

Question 11

Which of the following 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 12

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 13

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 14

The overlay of stored images or graphics with the real-world environment creates what type of reality for wearers of future smart contact lenses?

A) virtual
B) cognitive
C) augmented
D) apparent
E) ultimate

Question 15

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 16

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 17

CarMax dealers have adopted a "no-hassle,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 18

Walmart's $482 billion in sales in 2015 surpassed the gross domestic product of all but __________ countries for that same year.

A) 5
B) 12
C) 18
D) 25
E) 55

Question 19

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

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

Question 20

__________ resembles a pair of eyeglasses with a small display screen visible to the wearer.Image and voice recognition capabilities allow retail clerks to check manuals for technical information,verify stock inventories,place orders,or even check out customers from anywhere in the store.

A) Apple Watch
B) Facebook Vision
C) EyeTap Goggles
D) Google Glass
E) Foursquare's FourEyes

Question 21

Independent retailers account for most of the __________ retail establishments in the United States. A.50,000
B)90,000
C)500,000
D)900,000
E)1.1 million

Question 22

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 23

Which of the following is a commonly used method of retail outlet classification?

A) service versus product
B) form of ownership
C) proportion of national versus private label brands carried
D) revenues generated
E) profitability

Question 24

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 25

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 26

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 27

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 28

One of the most common forms of retail ownership is the __________ owned by a person.

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

Question 29

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 30

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

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

Question 31

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 32

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 33

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 34

Which of the following 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 35

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 36

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 37

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 38

According to the textbook,__________ provides third-party certification and offers guidance for retailers implementing new environmentally sound practices.

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

Question 39

Consumers benefit in dealing with retail corporate chains because

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

Question 40

Most of the 1.1 million retail establishments in the United States,including hardware stores,convenience stores,clothing stores,and computer and software stores,are considered A.corporate chains.
B)contractual systems.
C)independent retailers.
D)conglomerates.
E)multinationals.

Question 41

Anytime Fitness is a popular

A) business-format franchise.
B) product-distribution franchise.
C) operations franchise venture.
D) manufacturing franchise.
E) general service franchise.

Question 42

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 43

The two general types of franchises are

A) product-format franchises and distribution franchises.
B) business-format franchises and manufacturing franchises.
C) venture franchises and general service franchises.
D) manufacturing franchises and venture franchises.
E) business-format franchises and product-distribution franchises.

Question 44

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 45

A franchise where the franchisor provides step-by-step procedures for most aspects of the business is known as a

A) business-format franchise.
B) product-distribution franchise.
C) business franchise venture.
D) manufacturing franchise.
E) general service franchise.

Question 46

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 47

McDonald's,7-Eleven,and Anytime Fitness are examples of

A) product-distribution franchises.
B) business franchise venture.
C) business-format franchises.
D) manufacturing franchises.
E) general service franchise.

Question 48

Ford dealerships represent which type of franchise?

A) business-format franchise
B) manufacturing franchise
C) general service franchise
D) product-distribution franchise
E) business franchise venture

Question 49

As a franchisor,7-Eleven 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 50

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) a retail-sponsored cooperative
D) a franchise system
E) a corporate system

Question 51

Neighborhood grocers that work together with several other independent grocers that all agree to buy their goods directly from food manufacturers is

A) a retailer-sponsored cooperative.
B) a consortium system.
C) an administrative system.
D) a conglomerate system.
E) a contractual horizontal marketing system.

Question 52

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 53

Independently owned stores that band together to act like 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 54

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 55

There are two general types of franchises: business-format franchises and __________ franchises.

A) product-distribution
B) general service
C) manufacturing
D) distribution
E) venture

Question 56

A franchise where the franchiser provides a few general guidelines and more independence to the franchisee is known as a

A) business-format franchise.
B) manufacturing franchise.
C) product-distribution franchise.
D) general service franchise.
E) business franchise venture.

Question 57

Franchising is a type of

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

Question 58

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 products.

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

Question 59

As a business format franchisor,McDonald's provides to the franchisee step-by-step procedures for most aspects of the business and

A) an easy resale mechanism back to the franchisor.
B) guaranteed access to competent suppliers and interested customers.
C) complete maintenance the property.
D) guidelines for the most likely decisions a franchisee will face.
E) discipline for dishonest employees.

Question 60

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 61

All of the following retailers provide self-service to their customers except which?

A) Zipcar
B) Shop24
C) Target
D) Redbox
E) Costco

Question 62

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 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

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 65

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 66

Redbox has 35,000 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) limited-service
B) non-service
C) reduced-service
D) self-service
E) restricted-service

Question 67

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 68

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) a semi-service retailer.

Question 69

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

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

Question 70

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 71

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 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 72

Loehmann's is an upscale,specialty retailer that sells name-brand designer fashions.A few salespeople are available for selected departments,but customers are responsible for most of their shopping activities.Loehmann's provides its consumers with

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

Question 73

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) exclusive-service
C) limited-service
D) self-service
E) specialty-service

Question 74

Gas stations,supermarkets,and airlines that have unstaffed 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 75

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 76

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 77

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 78

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 79

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 80

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 would be considered

A) an exclusive-service retailer.
B) a limited-service retailer.
C) a full-service retailer.
D) an upscale retailer.
E) a limited-domain retailer.