Question 1

As a franchisor, 7-Eleven would assist a franchisee in selecting the store location, setting up the store, advertising, and

Accepted Answer

A)  developing the marketing program.
B)  training personnel.
C)  offering performance bonuses.
D)  ordering and restocking inventory.
E)  paying insurance and legal fees.F) A) and C)
G) None of the above

Question 2

A group of 50 to 150 stores that typically attract customers who live or work within a 5- to 10-mile range, often containing two or three anchor stores, is referred to as

Accepted Answer

A)  a power center.
B)  a regional shopping center.
C)  a strip mall.
D)  a central business district.
E)  an urban megacenter.F) A) and C)
G) A) and B)

Question 3

A supercenter is

Accepted Answer

A)  an auto service center that sells and leases cars as well as repairs them.
B)  a type of specialty outlet.
C)  a store that combines a typical merchandise store with a full-size grocery store.
D)  a mall with more than 100 stores and several important anchor stores.
E)  a store one step larger than a hypermarket.F) None of the above
G) B) and E)

Question 4

Which type of wholesaler traditionally sells hosiery, toys, and health and beauty items?

Accepted Answer

A)  cash and carry wholesalers
B)  truck jobbers
C)  general merchandise wholesalers
D)  rack jobbers
E)  drop shippersF) A) and D)
G) None of the above

Question 5

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 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) A) and B)
G) A) and C)

Question 6

Hypermarket refers to

Accepted Answer

A)  a category killer that specializes in electronics.
B)  a form of intertype competition consisting of general merchandise stores.
C)  a shopping mall anchored by four or more department stores such as Sears or Nordstrom.
D)  a form of limited-service outlets focusing on general merchandise like that offered in department stores.
E)  a form of scrambled merchandising, which consists of large stores (with more than 200,000 square feet) , that offer everything in a single outlet, eliminating the need for consumers to shop at more than one location.F) B) and C)
G) B) and E)

Question 7

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) B) and C)
G) A) and C)

Question 8

A maintained markup is

Accepted Answer

A)  the difference between the final selling price and the retailer's cost.
B)  the initial selling price minus the amount paid by the retailer.
C)  the amount the manufacturer adds to achieve the desired suggested retail price.
D)  the net margin.
E)  the highest price listed for the product.F) B) and C)
G) A) and B)

Question 9

Depth of product line refers to

Accepted Answer

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.F) A) and E)
G) B) and D)

Question 10

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

Accepted Answer

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

Question 11

An off-price retailer that requires customers to purchase an annual membership card for the privilege of shopping at the store is referred to as

Accepted Answer

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

Question 12

Coal, lumber, and chemicals, which are sold in extremely large quantities, are traditionally sold by which type of wholesaler?

Accepted Answer

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

Question 13

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.

Accepted Answer

A)  5
B)  10
C)  15
D)  20
E)  25F) C) and D)
G) All of the above

Question 14

Specialty merchandise wholesalers

Accepted Answer

A)  carry a broad assortment of merchandise and perform all channel functions.
B)  own the merchandise they sell but do not physically handle, stock, or deliver it.
C)  offer a relatively narrow range of products but have an extensive assortment within the product lines carried.
D)  work for several producers, carry noncompetitive, complementary merchandise in an exclusive territory, and use over-the-road transportation for all product deliveries.
E)  deal exclusively with small low-cost consumer goods that are distributed to a select number of large retail chains.F) None of the above
G) A) and E)

Question 15

A store chain is looking for a wholesaler to furnish its health and beauty display shelves, perform all channel functions, and sell to it on consignment. Which of the following would be the wisest wholesaler choice for its requirements?

Accepted Answer

A)  a rack jobber
B)  a truck jobber
C)  a cash and carry wholesaler
D)  a desk jobber
E)  a drop shipperF) None of the above
G) A) and B)

Question 16

The complementary role of different communication and delivery channels is referred to as

Accepted Answer

A)  the cumulative effect.
B)  the primary effect.
C)  the cross-over effect.
D)  the complementary effect.
E)  the influence effect.F) A) and B)
G) All of the above

Question 17

Wholly owned extensions of the producer that perform wholesaling activities are referred to as

Accepted Answer

A)  general merchandise wholesalers.
B)  cash and carry wholesalers.
C)  agents and brokers.
D)  manufacturer's branch or sales offices.
E)  merchant wholesalers.F) B) and E)
G) B) and D)

Question 18

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

Accepted Answer

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

Question 19

One of the biggest problems online retailers face is that nearly two-thirds of online shoppers make it to "checkout" and then leave the website to compare shipping costs and prices on other sites. Of the shoppers who leave, __________ percent do not return.

Accepted Answer

A)  30
B)  70
C)  50
D)  60
E)  40F) A) and E)
G) C) and E)

Question 20

Large shopping areas often contain two or three __________ stores, which are well-known national or regional stores such as Sears, Saks Fifth Avenue, and Bloomingdale's.

Accepted Answer

A)  power
B)  mega
C)  anchor
D)  value
E)  outletF) D) and E)
G) A) and B)

Exam 16: Retailing and Wholesaling

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.

Correct AnswerverifiedShow Answer

A maintained markup is

Correct AnswerverifiedShow Answer

One of the biggest problems online retailers face is that nearly two-thirds of online shoppers make it to "checkout" and then leave the website to compare shipping costs and prices on other sites. Of the shoppers who leave, __________ percent do not return.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Which type of wholesaler traditionally sells hosiery, toys, and health and beauty items?

Correct AnswerverifiedShow Answer

A store chain is looking for a wholesaler to furnish its health and beauty display shelves, perform all channel functions, and sell to it on consignment. Which of the following would be the wisest wholesaler choice for its requirements?

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

Specialty merchandise wholesalers

Correct AnswerverifiedShow Answer

The complementary role of different communication and delivery channels is referred to as

Correct AnswerverifiedShow Answer

Depth of product line refers to

Correct AnswerverifiedShow Answer

Wholly owned extensions of the producer that perform wholesaling activities are referred to as

Correct AnswerverifiedShow Answer

Hypermarket refers to

Correct AnswerverifiedShow Answer

As a franchisor, 7-Eleven would assist a franchisee in selecting the store location, setting up the store, advertising, and

Correct AnswerverifiedShow Answer

Large shopping areas often contain two or three __________ stores, which are well-known national or regional stores such as Sears, Saks Fifth Avenue, and Bloomingdale's.

Correct AnswerverifiedShow Answer

A group of 50 to 150 stores that typically attract customers who live or work within a 5- to 10-mile range, often containing two or three anchor stores, is referred to as

Correct AnswerverifiedShow Answer

An off-price retailer that requires customers to purchase an annual membership card for the privilege of shopping at the store is referred to as

Correct AnswerverifiedShow Answer

Coal, lumber, and chemicals, which are sold in extremely large quantities, are traditionally sold by which type of wholesaler?

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow 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

A supercenter is

Correct AnswerverifiedShow Answer

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