Question 1

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

Accepted Answer

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

Question 2

Intermediaries that work for several producers and carry noncompetitive, complementary merchandise in an exclusive territory are referred to as

Accepted Answer

A)  selling agents.
B)  line brokers.
C)  distribution brokers.
D)  manufacturers' agents.
E)  brokers.F) None of the above
G) C) and D)

Question 3

Walmart's $485 billion in sales in 2014 surpassed the gross domestic product of all but __________ countries for that same year.

Accepted Answer

A)  five
B)  12
C)  18
D)  38
E)  55F) A) and B)
G) A) and C)

Question 4

Retail outlets, like products, experience the process of growth and decline, which is referred to as the

Accepted Answer

A)  retail life cycle.
B)  wheel of retailing.
C)  product life cycle.
D)  retail continuum.
E)  retail life matrix.F) A) and B)
G) C) and D)

Question 5

Which of the following statements regarding corporate chains is most accurate?

Accepted Answer

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.F) None of the above
G) B) and E)

Question 6

Explain the relationship between a franchisee and a franchisor.

Accepted Answer

In a franchise system, an individual or ...

Question 7

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) A) and B)
G) A) and D)

Question 8

Most stores today are near several others in one of five settings: the central business district, the community shopping center, the strip mall, the power center, or the

Accepted Answer

A)  exurb value center.
B)  urban megacenter.
C)  suburban downtown.
D)  regional shopping center.
E)  rural micromall.F) B) and C)
G) A) and E)

Question 9

Briefly describe the two general types of franchises.

Accepted Answer

Franchises can be classified in two gene...

Question 10

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

Accepted Answer

A)  limited-line stores.
B)  general merchandise stores.
C)  scrambled merchandise stores.
D)  hypermarkets.
E)  intertype outlets.F) All of the above
G) A) and B)

Question 11

The four major types of limited-service merchant wholesalers are drop shippers, rack jobbers, truck jobbers, and

Accepted Answer

A)  machine vendors.
B)  credit line wholesalers.
C)  transport vendors.
D)  cash and carry wholesalers.
E)  container transport vendors.F) A) and B)
G) C) and D)

Question 12

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) B) and E)
G) A) and B)

Question 13

The four stages of the retail life cycle are

Accepted Answer

A)  introduction, growth, maturity, and decline.
B)  awareness, inquiry, alternative evaluation, and purchase.
C)  early growth, accelerated development, maturity, and decline.
D)  innovation, standardization, adaptation, and obsolescence.
E)  innovation, adaptation, imitation, and obsolescence.F) C) and D)
G) None of the above

Question 14

Selling on consignment to retailers, which means they retain the title to the products displayed and bill retailers only for the merchandise sold, is characteristic of which limited-service wholesaler?

Accepted Answer

A)  truck jobbers
B)  transport vendors
C)  rack jobbers
D)  cash and carry wholesalers
E)  drop shippersF) C) and E)
G) A) and C)

Question 15

The T.J. Maxx HomeGoods retailer uses __________ pricing practice.

Accepted Answer

A)  a markdown
B)  a maintained markup
C)  a gross margin
D)  a manufactured suggested retail
E)  an off-price retailF) D) and E)
G) None of the above

Question 16

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

Accepted Answer

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

Question 17

A community shopping center is a

Accepted Answer

A)  suburban mall containing up to 100 stores that draws customer from a 5- to 10-mile radius.
B)  cluster of stores in a downtown area.
C)  cluster of stores that serves people who are within a 5- to 10-minute drive.
D)  collection of category killers usually located outside a major amusement park or attraction.
E)  retail location that typically has one primary store (usually a department store branch)  with 20 to 40 smaller outlets serving a population of consumers who are within a 10- to 20-minute drive.F) C) and E)
G) C) and D)

Question 18

The term truck jobbers refers to 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) B) and C)
G) All of the above

Question 19

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

Accepted Answer

A)  exclusive-service retailers.
B)  limited-service retailers.
C)  full-service retailers.
D)  full-domain retailers.
E)  upscale retailers.F) A) and E)
G) A) and B)

Question 20

Boston Pizza wants to determine how effective its retail space is compared to other pizza establishments in the local area. The calculation for this indicator is arrived at by determining the __________ for its store and comparing it against the same indicator for all of the other local pizza outlets.

Accepted Answer

A)  same-store gross margin
B)  same-store sales growth
C)  sales per square foot
D)  net profit
E)  same-store net present valueF) A) and E)
G) B) and E)

Exam 16: Retailing and Wholesaling

Briefly describe the two general types of franchises.

Correct Answer
verified
Franchises can be classified in two gene...
View Answer

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

Correct Answer
verified

Correct Answer
verified

The T.J. Maxx HomeGoods retailer uses __________ pricing practice.

Correct Answer
verified

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

Correct Answer
verified

Which of the following statements regarding corporate chains is most accurate?

Correct Answer
verified

Intermediaries that work for several producers and carry noncompetitive, complementary merchandise in an exclusive territory are referred to as

Correct Answer
verified

A community shopping center is a

Correct Answer
verified

The four major types of limited-service merchant wholesalers are drop shippers, rack jobbers, truck jobbers, and

Correct Answer
verified

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

Correct Answer
verified

Explain the relationship between a franchisee and a franchisor.

Correct Answer
verified
In a franchise system, an individual or ...
View Answer

Retail outlets, like products, experience the process of growth and decline, which is referred to as the

Correct Answer
verified

The four stages of the retail life cycle are

Correct Answer
verified

The term truck jobbers refers to wholesalers that

Correct Answer
verified

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

Correct Answer
verified

Walmart's $485 billion in sales in 2014 surpassed the gross domestic product of all but __________ countries for that same year.

Correct Answer
verified

Selling on consignment to retailers, which means they retain the title to the products displayed and bill retailers only for the merchandise sold, is characteristic of which limited-service wholesaler?

Correct Answer
verified

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

Correct Answer
verified

Most stores today are near several others in one of five settings: the central business district, the community shopping center, the strip mall, the power center, or the

Correct Answer
verified

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

Correct Answer
verified

Exam 16: Retailing and Wholesaling

Briefly describe the two general types of franchises.

Correct AnswerverifiedFranchises can be classified in two gene...View AnswerShow Answer

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

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

The T.J. Maxx HomeGoods retailer uses __________ pricing practice.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Which of the following statements regarding corporate chains is most accurate?

Correct AnswerverifiedShow Answer

Intermediaries that work for several producers and carry noncompetitive, complementary merchandise in an exclusive territory are referred to as

Correct AnswerverifiedShow Answer

A community shopping center is a

Correct AnswerverifiedShow Answer

The four major types of limited-service merchant wholesalers are drop shippers, rack jobbers, truck jobbers, and

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Explain the relationship between a franchisee and a franchisor.

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

Retail outlets, like products, experience the process of growth and decline, which is referred to as the

Correct AnswerverifiedShow Answer

The four stages of the retail life cycle are

Correct AnswerverifiedShow Answer

The term truck jobbers refers to wholesalers that

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Walmart's $485 billion in sales in 2014 surpassed the gross domestic product of all but __________ countries for that same year.

Correct AnswerverifiedShow Answer

Selling on consignment to retailers, which means they retain the title to the products displayed and bill retailers only for the merchandise sold, is characteristic of which limited-service wholesaler?

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Most stores today are near several others in one of five settings: the central business district, the community shopping center, the strip mall, the power center, or the

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Correct Answer
verified
Franchises can be classified in two gene...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
In a franchise system, an individual or ...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
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