Question 1

Which type of outlet is most likely in its early growth stage of the retail life cycle?

Accepted Answer

A)  single-price stores
B)  online retailers
C)  supermarkets
D)  general storesE) B) and D)
F) B) and C)

Question 2

Carla's Cards uses a __________ to sell and market the entire line of greeting cards. It designs promotional plans, sets prices, determines distribution policies, and makes recommendations to Carla on product strategy.

Accepted Answer

A)  manufacturer's agent
B)  broker
C)  manufacturer's branch office
D)  manufacturer's sales office
E)  selling agentF) C) and D)
G) D) and E)

Question 3

Vending machines are popular with consumers; recent consumer satisfaction research indicates that __________ percent of consumers believe purchasing from a vending machine is equal to or superior to a store purchase.

Accepted Answer

A)  67
B)  88
C)  49
D)  63
E)  82F) C) and D)
G) B) and C)

Question 4

A business in Kansas City, Missouri, looking to rent office space should use __________ to help it locate the most suitable space at the best possible rate.

Accepted Answer

A)  a selling agent
B)  a manufacturer's representative
C)  a manufacturer's agent
D)  an administrator
E)  a brokerF) B) and D)
G) B) and C)

Question 5

Impressions of the corporation that operates the store, the category or type of store, the product categories in the store, the brands in each category, merchandise and service quality, and the marketing activities of the store all contribute to the store's

Accepted Answer

A)  prices.
B)  image.
C)  emotive appeal.
D)  name.
E)  measurable attributes.F) A) and D)
G) A) and E)

Question 6

Currently, the three largest television home shopping programs in the United States are

Accepted Answer

A)  QVC, HSN, and ShopNBC.
B)  Shop at Home, QVC, and HSN.
C)  Direct Shopper, Shop at Home, and ShopNBC.
D)  ValueVision, Shop at Home, and QVC.
E)  Shop America, Direct shopper, and J.S. Global.F) None of the above
G) A) and B)

Question 7

The National Retail Federation estimates that about __________ percent of retail shrinkage is due to employee theft.

Accepted Answer

A)  64
B)  14
C)  34
D)  44
E)  24F) A) and B)
G) B) and C)

Question 8

The wheel of retailing refers to

Accepted Answer

A)  the life cycle of most consumer products sold by retailers.
B)  the diffusion of types of retailers for a new product.
C)  the progression of retail locations an outlet goes through.
D)  the description of how new forms of retail outlets enter the market.
E)  the description of retail management philosophies.F) A) and B)
G) A) and C)

Question 9

When developing retailing strategies, marketers use what is called the retailing mix, which includes

Accepted Answer

A)  products, services, promotions, and retail communication.
B)  promotions, publicity, and press releases.
C)  retail pricing, store location, retail communication, and merchandise.
D)  physical environment, people, process, and productivity.
E)  direct mail, online stores, traditional stores, and outlet stores.F) D) and E)
G) B) and C)

Question 10

General 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)  have a small warehouse from which they stock their trucks for distribution to retailers.
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 products that are distributed to a select number of large retail chains.F) C) and D)
G) A) and B)

Question 11

The smallest dollar amount of retail sales in the United States is generated by

Accepted Answer

A)  automotive dealers.
B)  food and beverage stores.
C)  sporting goods, book, and music stores.
D)  electronic stores.
E)  furniture and home furnishing stores.F) C) and D)
G) A) and B)

Question 12

Which method of retail outlet classification is most appropriate for describing franchise operations?

Accepted Answer

A)  form of ownership
B)  level of service
C)  merchandise line
D)  method of operation
E)  revenues generatedF) A) and E)
G) A) and B)

Question 13

A drugstore that sells pharmaceuticals, beauty aids, camera equipment, nonperishable grocery items, and automobile motor oil is an example of a retailer using

Accepted Answer

A)  multiple distribution channels.
B)  full service.
C)  scrambled merchandising.
D)  intertype competition.
E)  dual channel marketing.F) All of the above
G) A) and E)

Question 14

The two general types of franchises are

Accepted Answer

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

Question 15

The West Edmonton Mall in Alberta, Canada, is a conglomerate of more than 800 stores, the world's largest indoor amusement park, more than 100 restaurants, a movie complex, and two hotels. This retail complex is the largest example of

Accepted Answer

A)  a regional shopping center.
B)  an urban microcenter.
C)  a megaplex.
D)  a hypermarket.
E)  a supercenter.F) A) and E)
G) C) and D)

Question 16

Key targets for Mall of America are

Accepted Answer

A)  the interstate market and discount shoppers.
B)  shoppers who seek mainstream experiences.
C)  large numbers of similar retailers to maintain a consistent retail profile.
D)  budget-conscious travelers and time-poor shoppers.
E)  the local market and tourists.F) A) and E)
G) All of the above

Question 17

An indicator used to compare the increase in sales of stores that have been open for the same period of time is called

Accepted Answer

A)  market share of each store.
B)  same-store sales growth.
C)  sales per square foot of each store.
D)  gross sales per store.
E)  net profit per store.F) C) and D)
G) B) and E)

Question 18

Timing is an important element of markdowns. Those retailers who take a markdown as soon as sales fall off most likely are doing so to

Accepted Answer

A)  placate dissatisfied customers.
B)  enhance customer perceptions of product quality.
C)  free up valuable selling space and cash.
D)  create an image as a cutting-edge retailer.
E)  react to the entry of a new competitor.F) B) and E)
G) All of the above

Question 19

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

Accepted Answer

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

Question 20

In the telemarketing industry, issues such as __________, ethical guidelines, and industry standards have become a topic of discussion among consumers, Congress, the Federal Trade Commission (FTC) , and businesses.

Accepted Answer

A)  competitive antics
B)  coercion tactics
C)  freedom of speech
D)  language issues
E)  consumer privacyF) B) and E)
G) B) and C)

Exam 16: Retailing and Wholesaling

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

Correct AnswerverifiedShow Answer

A drugstore that sells pharmaceuticals, beauty aids, camera equipment, nonperishable grocery items, and automobile motor oil is an example of a retailer using

Correct AnswerverifiedShow Answer

The National Retail Federation estimates that about __________ percent of retail shrinkage is due to employee theft.

Correct AnswerverifiedShow Answer

The West Edmonton Mall in Alberta, Canada, is a conglomerate of more than 800 stores, the world's largest indoor amusement park, more than 100 restaurants, a movie complex, and two hotels. This retail complex is the largest example of

Correct AnswerverifiedShow Answer

Key targets for Mall of America are

Correct AnswerverifiedShow Answer

When developing retailing strategies, marketers use what is called the retailing mix, which includes

Correct AnswerverifiedShow Answer

In the telemarketing industry, issues such as __________, ethical guidelines, and industry standards have become a topic of discussion among consumers, Congress, the Federal Trade Commission (FTC) , and businesses.

Correct AnswerverifiedShow Answer

Which method of retail outlet classification is most appropriate for describing franchise operations?

Correct AnswerverifiedShow Answer

An indicator used to compare the increase in sales of stores that have been open for the same period of time is called

Correct AnswerverifiedShow Answer

Currently, the three largest television home shopping programs in the United States are

Correct AnswerverifiedShow Answer

The two general types of franchises are

Correct AnswerverifiedShow Answer

Which type of outlet is most likely in its early growth stage of the retail life cycle?

Correct AnswerverifiedShow Answer

A business in Kansas City, Missouri, looking to rent office space should use __________ to help it locate the most suitable space at the best possible rate.

Correct AnswerverifiedShow Answer

Vending machines are popular with consumers; recent consumer satisfaction research indicates that __________ percent of consumers believe purchasing from a vending machine is equal to or superior to a store purchase.

Correct AnswerverifiedShow Answer

The smallest dollar amount of retail sales in the United States is generated by

Correct AnswerverifiedShow Answer

Timing is an important element of markdowns. Those retailers who take a markdown as soon as sales fall off most likely are doing so to

Correct AnswerverifiedShow Answer

The wheel of retailing refers to

Correct AnswerverifiedShow Answer

Impressions of the corporation that operates the store, the category or type of store, the product categories in the store, the brands in each category, merchandise and service quality, and the marketing activities of the store all contribute to the store's

Correct AnswerverifiedShow Answer

General merchandise wholesalers

Correct AnswerverifiedShow Answer

Carla's Cards uses a __________ to sell and market the entire line of greeting cards. It designs promotional plans, sets prices, determines distribution policies, and makes recommendations to Carla on product strategy.

Correct AnswerverifiedShow Answer

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