Question 1

Retailing is an important marketing activity. Not only do producers and consumers meet through retailing actions, but retailing also creates

Accepted Answer

A)   the nation's largest source of tax revenues.
B)   the largest source of charitable contributions.
C)   limited utilities for consumers.
D)   customer value.
E)   a sense of community.F) A) and B)
G) A) and C)

Question 2

The wholesalers that perform all channel functions and are found in the health foods, automotive parts, and seafood industries would be

Accepted Answer

A)   specialty wholesalers.
B)   full-line wholesalers.
C)   limited wholesalers.
D)   universal wholesalers.
E)   cash and carry wholesalers.F) C) and E)
G) A) and B)

Question 3

Your neighborhood dry cleaner or florist is likely to be categorized as an independent retailer. This means it is owned by

Accepted Answer

A)   an individual.
B)   a conglomerate.
C)   a consortium.
D)   a corporate chain.
E)   a cooperative.F) A) and B)
G) A) and C)

Question 4

Saks Fifth Avenue is an upscale retailer that offers designer brand women's apparel, fragrances, jewelry, and leather accessories. The retailer relies on superior service to sell its products and to retain its customers. Saks Fifth Avenue would be classified as

Accepted Answer

A)   an exclusive-service retailer.
B)   a limited-service retailer.
C)   a full-service retailer.
D)   a premium-service retailer.
E)   an augmented-service retailer.F) B) and E)
G) A) and E)

Question 5

The vertical dimension of the retail positioning matrix is

Accepted Answer

A)   depth of product line.
B)   relative market share.
C)   retail sales.
D)   breadth of product line.
E)   stage in the retail life cycle.F) A) and B)
G) D) and E)

Question 6

At which level of service would the customer be expected to perform the least number of functions?

Accepted Answer

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

Question 7

Which type of outlet is most likely in its accelerated development stage of the retail life cycle?

Accepted Answer

A)   single-price stores
B)   department stores
C)   supermarkets
D)   business-district retailers
E)   convenience storesF) None of the above
G) A) and B)

Question 8

Which of these is a type of utility created by online shopping?

Accepted Answer

A)   time
B)   price
C)   product
D)   process
E)   promotionF) A) and B)
G) A) and D)

Question 9

Brokers are independent firms or individuals who

Accepted Answer

A)   represent a single producer and are responsible for the entire marketing function of that producer.
B)   work for several producers and carry noncompetitive, complementary merchandise in an exclusive territory.
C)   take title to merchandise but sell only to buyers that call on them, pay cash for merchandise, and furnish their own transportation for the merchandise.
D)   own the merchandise they sell but do not physically handle, stock, or deliver it.
E)   bring buyers and sellers together to make sales.F) A) and C)
G) A) and D)

Question 10

The analytical tool that positions retail outlets in terms of the breadth of their product line and value added, such as location, product reliability, or prestige, is the

Accepted Answer

A)   growth share matrix.
B)   MAC framework.
C)   market-product grid.
D)   retail positioning matrix.
E)   wheel of retailing.F) A) and D)
G) A) and E)

Question 11

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

Question 12

The value added dimension of the retail positioning matrix includes elements such as product reliability, prestige, and

Accepted Answer

A)   level of service.
B)   market share.
C)   location.
D)   price.
E)   number of employees.F) A) and B)
G) A) and C)

Question 13

Sales of goods and services to consumers through personal interactions and demonstrations in their homes or offices is referred to as direct selling, or

Accepted Answer

A)   person-to-person sales.
B)   interactive selling.
C)   door-to-door retailing.
D)   individual promotion.
E)   customized selling.F) A) and E)
G) A) and D)

Question 14

Which of these is one of the largest retailers in the United States?

Accepted Answer

A)   Hallmark
B)   Procter & Gamble
C)   Merck
D)   Home Depot
E)   Johnson and JohnsonF) D) and E)
G) B) and E)

Question 15

The oldest retail setting, located in the community's downtown area, is referred to as

Accepted Answer

A)   the central business district.
B)   main street.
C)   the community square.
D)   the economic center.
E)   the historic commerce district.F) A) and E)
G) None of the above

Question 16

A strip mall 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)   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.
D)   cluster of neighborhood stores designed to serve people within a 5- to 10-minute drive.
E)   collection of category killers usually located outside a major amusement park or attraction.F) A) and C)
G) A) and B)

Question 17

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) All of the above
G) A) and D)

Question 18

A common financial indicator of how effectively retail space is used to generate revenue can be calculated by determining

Accepted Answer

A)   net sales.
B)   markdown percentage.
C)   market share.
D)   sales per square foot.
E)   transactions per customer.F) All of the above
G) None of the above

Question 19

Redbox has 40,000 kiosks throughout the United States for movie and video game rental and it operates without a single clerk. What level of service does this retailer offer?

Accepted Answer

A)   full-service
B)   self-service
C)   limited-service
D)   customized-service
E)   functional-serviceF) A) and E)
G) B) and E)

Question 20

The wheel of retailing is

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 E)
G) C) and D)

Exam 16: Retailing and Wholesaling

Redbox has 40,000 kiosks throughout the United States for movie and video game rental and it operates without a single clerk. What level of service does this retailer offer?

Correct AnswerverifiedShow Answer

Retailing is an important marketing activity. Not only do producers and consumers meet through retailing actions, but retailing also creates

Correct AnswerverifiedShow Answer

At which level of service would the customer be expected to perform the least number of functions?

Correct AnswerverifiedShow Answer

Saks Fifth Avenue is an upscale retailer that offers designer brand women's apparel, fragrances, jewelry, and leather accessories. The retailer relies on superior service to sell its products and to retain its customers. Saks Fifth Avenue would be classified as

Correct AnswerverifiedShow Answer

The wholesalers that perform all channel functions and are found in the health foods, automotive parts, and seafood industries would be

Correct AnswerverifiedShow Answer

Your neighborhood dry cleaner or florist is likely to be categorized as an independent retailer. This means it is owned by

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

The vertical dimension of the retail positioning matrix is

Correct AnswerverifiedShow Answer

Which of these is one of the largest retailers in the United States?

Correct AnswerverifiedShow Answer

A strip mall is a

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

Sales of goods and services to consumers through personal interactions and demonstrations in their homes or offices is referred to as direct selling, or

Correct AnswerverifiedShow Answer

The value added dimension of the retail positioning matrix includes elements such as product reliability, prestige, and

Correct AnswerverifiedShow Answer

The wheel of retailing is

Correct AnswerverifiedShow Answer

A common financial indicator of how effectively retail space is used to generate revenue can be calculated by determining

Correct AnswerverifiedShow Answer

Which type of outlet is most likely in its accelerated development stage of the retail life cycle?

Correct AnswerverifiedShow Answer

Brokers are independent firms or individuals who

Correct AnswerverifiedShow Answer

The oldest retail setting, located in the community's downtown area, is referred to as

Correct AnswerverifiedShow Answer

Which of these is a type of utility created by online shopping?

Correct AnswerverifiedShow Answer

The analytical tool that positions retail outlets in terms of the breadth of their product line and value added, such as location, product reliability, or prestige, is the

Correct AnswerverifiedShow Answer

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