Question 1

Another name for an extreme-value retailer is

Accepted Answer

A)   specialty outlet.
B)   single-price retailer.
C)   hypermarket.
D)   outlet store.
E)   warehouse club.F) A) and E)
G) B) and E)

Question 2

When setting prices for merchandise,retailers must decide on the markup,the markdown,and the ________ for markdowns.

Accepted Answer

A)  relevance
B)  necessity
C)  percentage
D)  timing
E)  consequenceF) None of the above
G) B) and C)

Question 3

The acronym RFID stands for

Accepted Answer

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

Question 4

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.

Accepted Answer

A)  product items
B)  depth of product line
C)  breadth of product line
D)  versatility of product family
E)  variety of product mixF) A) and D)
G) None of the above

Question 5

Independent firms or individuals whose principal function is to bring buyers and sellers together to make sales are referred to as

Accepted Answer

A)  manufacturers' agents.
B)  brokers
C)  selling agents.
D)  manufacturer's branches.
E)  manufacturer's sales offices.F) A) and E)
G) All of the above

Question 6

Higher paper costs,increased postage rates,the growing interest in do-not-mail legislation,and concern for "green" mailings have resulted in

Accepted Answer

A)  a switch to online catalogs and direct-to-customer e-mail advertisements.
B)  the use of thinner,lightweight paper products.
C)  a focus on proven customers or specialty catalogs for market niches.
D)  the banning of "junk" mail by a growing number of environmentally concerned communities.
E)  a resurgence in nonautomated telemarketing.F) All of the above
G) A) and C)

Question 7

Briefly describe the advantages of being an independent retailer and the benefits an independent retailer can offer customers.

Accepted Answer

Advantages to the retailer inc...

Question 8

All of the following are reasons direct-mail and catalog retailing are attractive except which?

Accepted Answer

A)  They can create customer value by providing a fast and convenient means of making a purchase.
B)  They can serve as an element of a multichannel strategy designed to encourage consumers to visit a website,a social media page,or even a store.
C)  Their paper costs and postal rates have declined,making them less expensive to send.
D)  They can eliminate the cost of a store and clerks.
E)  They can improve marketing efficiency through segmentation and targeting.F) D) and E)
G) None of the above

Question 9

Explain the relationship between a franchisee and a franchisor.

Accepted Answer

In a franchise system,an individual or f...

Question 10

Figure 16-10
 
-According to Figure 16-10 above,D represents which stage of the retail life cycle?

Accepted Answer

A)  decline
B)  stabilization
C)  obsolescence
D)  maturity
E)  accelerated developmentF) A) and E)
G) A) and B)

Question 11

Fresh-cut flowers that were once only available from florists can now be purchased at neighborhood supermarkets.This is an example of

Accepted Answer

A)  dysfunctional competition.
B)  mixed-line merchandising.
C)  multi-product marketing.
D)  intertype competition.
E)  dual distribution.F) C) and D)
G) D) and E)

Question 12

T.J.Maxx,where prices are low but selection is unpredictable,uses a(n) ________ pricing practice.

Accepted Answer

A)   markdown
B)   maintained markup
C)   gross margin
D)   manufactured suggested retail
E)   off-price retailF) A) and E)
G) A) and B)

Question 13

Truck jobbers are wholesalers that

Accepted Answer

A)  furnish the racks or shelves that display merchandise in retail stores,perform all channel functions,and sell on consignment to retailers.
B)  store all the merchandise they sell in their trucks.
C)  own the merchandise they sell but do not physically handle,stock,or deliver it.
D)  have a small warehouse from which they stock their trucks for distribution to retailers.
E)  work for several producers,carry noncompetitive,complementary merchandise in an exclusive territory,and use over-the-road transportation for all product deliveries.F) A) and E)
G) B) and E)

Question 14

QVC is a television home shopping network.It generates sales of more than $8 billion from its 60 million customers by

Accepted Answer

A)  directing customers to purchase through its Mall of America retail store.
B)  broadcasting live 12 hours a day,365 days a year.
C)  offering more than 770 products each week on a 24-hour-a-day broadcast.
D)  offering overstocked items from retailers at a fraction of the original cost.
E)  running live podcasts and live streaming over the Internet.F) A) and B)
G) D) and E)

Question 15

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

Accepted Answer

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

Question 16

While a large percentage of the losses from retail shrinkage come from shoplifting,an almost equal amount is due to

Accepted Answer

A)  employee theft.
B)  insurance fraud.
C)  deceptive advertising.
D)  personnel training.
E)  unredeemed rebates.F) A) and E)
G) B) and E)

Question 17

Figure 16-8
 
-Which of the following retailers would best fit in quadrant B shown in the retail positioning matrix,Figure 16-8 above?

Accepted Answer

A)  Kmart
B)  Bloomingdale's department store
C)  7-Eleven convenience store
D)  Payless ShoeSource
E)  Lamborghini automobile dealerF) C) and D)
G) A) and B)

Question 18

Bloomingdale's stores are part of the Macy's

Accepted Answer

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

Question 19

Which of the following is a type of full-service merchant wholesaler?

Accepted Answer

A)  cash and carry wholesaler
B)  rack jobbers
C)  truck jobbers
D)  specialty merchandise wholesaler
E)  drop shippersF) B) and E)
G) B) and D)

Question 20

A retailer bought a collectible Precious Moments figurine for $26.She sets the initial selling price at $60.The final selling price was $52.What was the original markup?

Accepted Answer

A)  $86
B)  $13
C)  $78
D)  $34
E)  $112F) C) and D)
G) B) and D)

Exam 16: Retailing and Wholesaling

Bloomingdale's stores are part of the Macy's

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Another name for an extreme-value retailer is

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Explain the relationship between a franchisee and a franchisor.

Correct AnswerverifiedIn a franchise system,an individual or f...View AnswerShow Answer

Independent firms or individuals whose principal function is to bring buyers and sellers together to make sales are referred to as

Correct AnswerverifiedShow Answer

Figure 16-10 -According to Figure 16-10 above,D represents which stage of the retail life cycle?

Correct AnswerverifiedShow Answer

Fresh-cut flowers that were once only available from florists can now be purchased at neighborhood supermarkets.This is an example of

Correct AnswerverifiedShow Answer

Which of the following is a type of full-service merchant wholesaler?

Correct AnswerverifiedShow Answer

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.

Correct AnswerverifiedShow Answer

T.J.Maxx,where prices are low but selection is unpredictable,uses a(n) ________ pricing practice.

Correct AnswerverifiedShow Answer

All of the following are reasons direct-mail and catalog retailing are attractive except which?

Correct AnswerverifiedShow Answer

Higher paper costs,increased postage rates,the growing interest in do-not-mail legislation,and concern for "green" mailings have resulted in

Correct AnswerverifiedShow Answer

When setting prices for merchandise,retailers must decide on the markup,the markdown,and the ________ for markdowns.

Correct AnswerverifiedShow Answer

While a large percentage of the losses from retail shrinkage come from shoplifting,an almost equal amount is due to

Correct AnswerverifiedShow Answer

Truck jobbers are wholesalers that

Correct AnswerverifiedShow Answer

Briefly describe the advantages of being an independent retailer and the benefits an independent retailer can offer customers.

Correct AnswerverifiedAdvantages to the retailer inc...View AnswerShow Answer

Figure 16-8 -Which of the following retailers would best fit in quadrant B shown in the retail positioning matrix,Figure 16-8 above?

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

QVC is a television home shopping network.It generates sales of more than $8 billion from its 60 million customers by

Correct AnswerverifiedShow Answer

The acronym RFID stands for

Correct AnswerverifiedShow Answer

A retailer bought a collectible Precious Moments figurine for $26.She sets the initial selling price at $60.The final selling price was $52.What was the original markup?

Correct AnswerverifiedShow Answer

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In a franchise system,an individual or f...
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Advantages to the retailer inc...
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