Deck 13: Retailing and Wholesaling

Question 1

Which of the following would be considered a service retailer?

A) factory outlets
B) supermarkets
C) jewelry stores
D) restaurants
E) gas stations

Answer 1

D

Question 2

Which type of retailer usually carries more specialty goods at high prices and is more likely to provide customers with assistance in every phase of the shopping process?

A) self-service retailer
B) limited-service retailer
C) full-service retailer
D) independent retailer
E) off-price retailer

Answer 2

C

Question 3

Which type of store carries a wide variety of product lines and has been squeezed in recent years between more focused and flexible specialty stores on the one hand and more efficient, lower-priced discounters on the other?

A) warehouse clubs
B) department store
C) factory outlet
D) merchant wholesaler
E) category specialist

Answer 3

B

Question 4

Which type of store is much larger than regular supermarkets and offers a large assortment of routinely purchased food products, nonfood items, and services?

A) off-price retailer
B) specialty store
C) factory outlet
D) superstore
E) convenience store

Question 5

A ________ is a small store, located near a residential area, that is open long hours seven days a week and carries a limited line of high-turnover goods.

A) convenience store
B) chain store
C) department store
D) supermarket
E) hypermarket

Question 6

________ includes all the activities involved in selling products or services directly to final consumers for their personal, nonbusiness use.

A) Franchising
B) Retailing
C) Brokering
D) Wholesaling
E) Disintermediation

Question 7

At Neiman Marcus, a first-class department store, customers shop for high-end products and they are assisted in every phase of the shopping process. Neiman Marcus is a ________.

A) self-service retailer
B) limited-service retailer
C) full-service retailer
D) specialty store
E) superstore

Question 8

________ involves using in-store promotions and advertising to extend brand equity to "the last mile" and encourage favorable point-of-purchase decisions.

A) Ambush marketing
B) Shopper marketing
C) Bait-and-switch advertising
D) Affinity marketing
E) Narrowcasting

Question 9

________ is a type of service offered by those retailers who serve customers that are willing to perform their own "locate-compare-select" process in order to save money.

A) Limited-service
B) Self-service
C) Full-service
D) Specialty-service
E) Wholesaling

Question 10

________ are retailers that offer sales assistance because they carry more shopping goods about which customers might need information.

A) Self-service retailers
B) Full-service retailers
C) Off-price retailers
D) Limited-service retailers
E) Specialty-service retailers

Question 11

________ are facing slow sales growth because of slower population growth, increased competition, and the rapid growth of out-of-home eating.

A) Warehouse clubs
B) Off-price retailers
C) Discount stores
D) Supermarkets
E) Factory outlets

Question 12

________ sell standard merchandise at lower prices by accepting lower margins and selling higher volume.

A) Merchant wholesalers
B) Discount stores
C) Full-service retailers
D) Limited-service retailers
E) Factory outlets

Question 13

The early ________ cut expenses by offering few services and operating in warehouse-like facilities in low-rent, heavily traveled districts.

A) department stores
B) hypermarkets
C) discount stores
D) supermarkets
E) full-service retailers

Question 14

Which type of retailer is most likely to require its employees to focus most on assisting customers as they shop?

A) self-service retailer
B) full-service retailer
C) off-price retailer
D) limited-service retailer
E) convenience retailer

Question 15

Today, ________ are flourishing due to the increased use of market segmentation and market targeting.

A) chain stores
B) specialty stores
C) superstores
D) discount stores
E) off-price stores

Question 16

________ retailers in the United States are growing faster than product retailers.

A) Discount
B) Merchant
C) Service
D) Specialty
E) Off-price

Question 17

Which of the following is the most frequently visited type of retail store?

A) convenience store
B) department store
C) superstore
D) supermarket
E) off-price retailer

Question 18

Which type of store carries a deep assortment of a particular product line, has knowledgeable staff, and can be viewed as a giant specialty store?

A) category killer
B) convenience store
C) factory outlet
D) warehouse club
E) off-price retailer

Question 19

Specialty stores carry ________ with ________ within them.

A) only convenience products; shallow assortments
B) narrow product lines; deep assortments
C) narrow product lines; shallow assortments
D) wide product lines; shallow assortments
E) wide product lines; deep assortments

Question 20

Home Depot and PetSmart are examples of ________.

A) factory outlets
B) warehouse clubs
C) superstores
D) off-price retailers
E) category killers

Question 21

Daizy's is a shop which carries only plus-size clothing. According to this information, Daizy's differentiates itself from its competitors based on ________.

A) service mix
B) pricing
C) product assortment
D) store atmosphere
E) distribution strategy

Question 22

Which of the following is an off-price retailer that sells a limited selection of brand-name grocery items, appliances, clothing, and other goods at deep discounts to members who pay annual membership fees?

A) warehouse club
B) service retailer
C) convenience store
D) hypermarket
E) superstore

Question 23

Press conferences, speeches, store openings, special events, newsletters, and store magazines are examples of ________ activities used by retailers to promote themselves.

A) public relations
B) sales promotions
C) personal selling
D) affinity marketing
E) social marketing

Question 24

________ were the main form of retail clusters until the 1950s.

A) Strip malls
B) Discount stores
C) Independent off-price retailers
D) Central business districts
E) Regional shopping malls

Question 25

________ are manufacturer-owned and operated stores which offer prices as low as 50 percent below retail on a wide range of mostly surplus, discounted, or irregular items.

A) Category killers
B) Factory outlets
C) Specialty stores
D) Superstores
E) Power centers

Question 26

Which of the following statements best represents a contractual association between a manufacturer, wholesaler, or service organization and independent businesspeople who buy the right to own and operate one or more units in the system represented by the contract?

A) corporate chain
B) franchise
C) voluntary chain
D) retailer cooperative
E) warehouse club

Question 27

________ have filled the ultra low-price, high-volume gap by buying at less-than-regular wholesale prices and charging consumers less than retail.

A) Off-price retailers
B) Specialty stores
C) Convenience stores
D) Chain stores
E) Supercenters

Question 28

Which of the following is most likely gained by stores that cluster together?

A) decreased competition
B) increased customer pulling power
C) compliance with franchise agreements
D) creation of retailer cooperatives
E) standardization of the service mix

Question 29

McDonald's, Subway, and Pizza Hut are all examples of ________.

A) voluntary chains
B) retailer cooperatives
C) franchises
D) category killers
E) power centers

Question 30

Independent Grocers Alliance, Do-It Best, Western Auto, and True Value are examples of ________.

A) franchise organizations
B) warehouse clubs
C) voluntary chains
D) category killers
E) wholesale clubs

Question 31

A large retailer of home improvement and construction products offers "how-to" classes for do-it-yourselfers, featuring instructions on how to complete home improvement projects using products sold at its stores. This is an example of how the retailer has differentiated itself through its ________.

A) product assortment
B) services mix
C) segmentation
D) atmosphere
E) pricing

Question 32

In recent years, service differentiation among retailers has ________.

A) increased at a steady rate
B) decreased
C) stayed the same
D) increased exponentially
E) tripled

Question 33

A ________ is a group of retail businesses built on a site that is planned, developed, owned, and managed as a unit.

A) warehouse club
B) franchise
C) shopping center
D) supermarket
E) hypermarket

Question 34

A ________ is a wholesaler-sponsored group of independent retailers that engages in group buying and common merchandising.

A) voluntary chain
B) retailer cooperative
C) franchise
D) wholesale club
E) warehouse club

Question 35

________ are two or more outlets that are commonly owned and controlled.

A) Corporate chains
B) Convenience stores
C) Off-price retailers
D) Independent off-price retailers
E) Power centers

Question 36

An ideal price policy scenario for retailers would be to achieve ________ while charging ________.

A) low volume; high markups
B) low volume; low markups
C) high volume; high markups
D) high volume; low markups
E) high volume; zero markups

Question 37

Sears, Target, and Kroger are examples of ________.

A) voluntary chains
B) retailer cooperatives
C) corporate chains
D) franchise organizations
E) warehouse clubs

Question 38

As a result of the great success of corporate chains, many independent stores choose to band together in either a voluntary chain or a(n) ________.

A) factory outlet
B) retailer cooperative
C) wholesale club
D) warehouse club
E) convenience cooperative

Question 39

Which of the following is NOT a type of off-price retailer?

A) independent
B) factory outlet
C) warehouse club
D) category killer
E) wholesale club

Question 40

In-store demonstrations, displays, sales, and loyalty programs are examples of ________.

A) direct marketing
B) sales promotion
C) public relations
D) personal selling
E) affinity marketing

Question 41

________ buy mostly from producers and sell to retailers and industrial consumers.

A) Warehouse clubs
B) Factory outlets
C) Wholesalers
D) Discount stores
E) Megaretailers

Question 42

Touch-screen kiosks, handheld shopping assistants, interactive dressing-room mirrors and virtual sales associates are all examples of how retailers use technology to ________.

A) maintain inventory costs
B) send information between stores
C) meet consumers' expectations
D) produce more accurate forecasts
E) interact with suppliers

Question 43

A ________ contains between 15 and 50 retail stores, including a department or variety store, a supermarket, specialty stores, professional offices, and sometimes a bank.

A) community shopping center
B) neighborhood shopping center
C) strip mall
D) regional shopping center
E) power center

Question 44

Which term refers to looking at merchandise at a traditional store and then purchasing the merchandise online?

A) pop-up shopping
B) wheel-of-retailing
C) off-price retailing
D) showrooming
E) wholesaling

Question 45

Neighborhood shopping centers are also known as ________.

A) power centers
B) lifestyle centers
C) warehouse clubs
D) strip malls
E) regional shopping centers

Question 46

Most shopping centers are ________.

A) strip malls
B) regional shopping malls
C) community shopping centers
D) lifestyle centers
E) power centers

Question 47

________ is known as the merging of consumers, products, prices, and retailers.

A) Retail conglomeration
B) Consumer convergence
C) Price merging
D) Retail convergence
E) Retail clustering

Question 48

A ________ contains from 50 to 100 stores, is like a covered mini-downtown, and attracts customers from a wide area.

A) community shopping center
B) neighborhood shopping center
C) central business district
D) regional shopping center
E) strip mall

Question 49

Which of the following wholesaler's channel functions is demonstrated when a buyer receives quicker delivery because wholesalers are located closer than producers?

A) financing
B) transportation
C) buying and assortment building
D) warehousing
E) risk bearing

Question 50

Which of the following wholesaler's channel functions is demonstrated when a wholesaler's sales force helps a manufacturer to reach many small customers at a low cost?

A) bulk-breaking
B) selling and promoting
C) buying and assortment building
D) risk bearing
E) rackjobbing

Question 51

A ________ generally contains between 5 and 15 stores. It is close and convenient for consumers, usually contains a supermarket, perhaps a discount store, and several service stores such as dry cleaner, drugstore, and hardware store.

A) regional shopping center
B) community shopping center
C) neighborhood shopping center
D) warehouse club
E) factory outlet

Question 52

A small, open-air mall with upscale stores, convenient locations, and nonretail activities, such as a playground, skating rink, hotel, dining establishments, and a movie theater, is an example of a(n) ________.

A) regional shopping center
B) lifestyle center
C) community shopping center
D) franchise
E) power center

Question 53

Which of the following wholesaler's channel functions is demonstrated when a wholesaler holds inventories and thereby reduces inventory holding costs and risks of suppliers and customers ?

A) financing
B) transporting
C) buying and assortment building
D) warehousing
E) bulk breaking

Question 54

Which of the following is NOT one of a wholesaler's channel functions?

A) financing
B) risk bearing
C) transportation
D) off-price retailing
E) bulk breaking

Question 55

Target recently opened temporary shops to celebrate limited-run collections by Jason Wu in Toronto and Missoni in New York. These temporary shops are examples of ________

A) lifestyle centers
B) pop-up stores
C) warehouse clubs
D) strip malls
E) category killers

Question 56

According to the concept of ________, new retailing forms often begin as low-margin, low-price, low-status operations to challenge established retailers. Such retailers then become successful, and eventually become like the conventional retailers they replaced.

A) ambush marketing
B) flash sales
C) wheel-of-retailing
D) warehousing
E) product life cycle

Question 57

________ are huge unenclosed shopping centers consisting of a long strip of retail stores, including at least one large, freestanding anchor store like Walmart. Each store has its own entrance with parking directly in front for shoppers who wish to visit only one store.

A) Shopping malls
B) Power centers
C) Superstores
D) Chain stores
E) Regional shopping centers

Question 58

________ includes all activities involved in selling goods and services to those buying for resale or business use.

A) Wholesaling
B) Retailing
C) Franchising
D) Discounting
E) Showrooming

Question 59

With their size and buying power, ________ can offer better merchandise selections, good service, and strong price savings to consumers.

A) convenience stores
B) franchises
C) megaretailers
D) power centers
E) lifestyle centers

Question 60

Many retailers are now experimenting with limited-time shops that let them promote their brands to seasonal shoppers and create buzz in busy areas. Which of the following terms best represents such shops?

A) power centers
B) strip malls
C) pop-up stores
D) category killers
E) lifestyle centers

Question 61

Overstock.com, a Web seller that buys furniture, clothing, electronics, and more from a variety of producers at less-than-regular wholesale prices and then charges customers less than retail, is a(n) ________.

A) specialty store
B) off-price retailer
C) factory outlet
D) wholesale club
E) category killer

Question 62

________ are wholesalers who serve grocery and drug retailers, mostly in nonfood items. They price the goods, keep them fresh, set up point-of-purchase displays, and keep inventory records.

A) Purchasing agents
B) Rack jobbers
C) Drop shippers
D) Cash-and-carry wholesalers
E) Manufacturers' agents

Question 63

Which of the following wholesaler's channel functions is exemplified by buying in carload lots and then dividing these lots into small quantities?

A) warehousing
B) transportation
C) risk bearing
D) bulk breaking
E) selling and promoting

Question 64

A(n) ________ does not take title to goods and represents buyers or sellers on a more permanent basis than a broker.

A) full-service wholesaler
B) industrial distributor
C) agent
D) retailer
E) cash-and-carry wholesaler

Question 65

________ are a type of limited-service wholesalers who carry a limited line of semiperishable merchandise (such as milk, bread, snack foods), which is sold for cash as deliveries are made to supermarkets, small groceries, or hotels.

A) Industrial distributors
B) Wholesale merchants
C) Full-service wholesalers
D) Truck jobbers
E) Purchasing agents

Question 66

Springfield, a convenience store, has recently begun to redesign and restock its stores to offer a more upscale environment with products such as house wines and fresh foods. This information indicates that Springfield has most likely changed its ________.

A) positioning
B) price strategy
C) service level
D) corporate identity
E) organizational structure

Question 67

GameStop sells only video games and systems, offering a narrow product line with a deep assortment within that line. GameStop is a(n) ________.

A) department store
B) convenience store
C) category killer
D) specialty store
E) off-price retailer

Question 68

________ are the largest group of wholesalers. They include two broad types: full-service wholesalers and limited-service wholesalers.

A) Brokers
B) Manufacturer sellers
C) Manufacturers' agents
D) Merchant wholesalers
E) Selling agents

Question 69

7-Eleven, Stop-N-Go, and Circle K are examples of ________.

A) department stores
B) convenience stores
C) category killers
D) specialty stores
E) supermarkets

Question 70

Cabela's stores are as much natural history museums for outdoor enthusiasts as they are retail outlets. This information indicates that Cabela's is practicing ________.

A) wholesaling
B) nonstore retailing
C) shopper marketing
D) experiential shopping
E) showrooming

Question 71

Which of the following terms best describes a large, low-cost, low-margin, high-volume, self-service store that carries a wide variety of grocery and household products?

A) convenience store
B) supermarket
C) specialty store
D) warehouse club
E) factory outlet

Question 72

The lighting in Jake's Steak Restaurant is dim. The chairs are covered in leather and each table is covered with a white linen cloth. The colors are limited to earth tones with an occasional splash of red. Patrons cannot hear any kitchen noises, only a pleasant melody that seems familiar but unrecognizable. The smells are extraordinarily varied. This is a description of the restaurant's ________.

A) promotions
B) target
C) atmosphere
D) services mix
E) product assortment

Question 73

Big and Tall Men's Shop carries men's clothing in larger sizes; this allows the store to ________ other stores.

A) align itself with
B) differentiate itself from
C) cluster with
D) affect the store atmosphere of
E) converge with

Question 74

A(n) ________ brings buyers and sellers together and assists in negotiations.

A) agent
B) broker
C) retailer
D) wholesaler
E) industrial distributor

Question 75

________ are a type of limited-service wholesalers who do not carry inventory or handle a product. They typically operate in bulk industries, such as coal, lumber, and heavy equipment.

A) Wholesale merchants
B) Industrial distributors
C) Cash-and-carry wholesalers
D) Rack jobbers
E) Drop shippers

Question 76

What is the most common type of agent wholesaler?

A) wholesale merchant
B) industrial distributor
C) limited-service wholesaler
D) manufacturers' representative
E) truck jobber

Question 77

Which type of wholesaler sells to manufacturers rather than to retailers?

A) industrial distributor
B) full-service wholesaler
C) cash-and-carry wholesaler
D) wholesale merchant
E) limited-service wholesaler

Question 78

Today's large, progressive wholesalers have successfully reacted to rising costs by ________.

A) relocating to low-rent, low-tax areas
B) investing in information technology systems
C) investing less money in expensive machinery
D) reducing their markup rates
E) reducing promotional activities

Question 79

________ are agents who take physical possession of products and negotiate sales. They deal mostly with agricultural marketing.

A) Industrial distributors
B) Cash-and-carry wholesalers
C) Purchasing officers
D) Rack jobbers
E) Commission merchants

Question 80

________ and ________ do not take title to goods, and they perform only a few channel functions.

A) Full-service wholesalers; limited-service wholesalers
B) Brokers; agents
C) Industrial distributors; cash-and-carry wholesalers
D) Cash-and-carry wholesalers; industrial distributors
E) Rack jobbers; off-price retailers