Question 1

Which of these statements regarding direct selling is most accurate?

Accepted Answer

A)   Unlike other forms of nonstore retailing, direct selling takes place in the business market.
B)   Direct selling is found exclusively in the United States.
C)   Direct selling succeeds in part because it provides customers with a social shopping experience.
D)   Direct sales have been declining rapidly in the United States since the 1980s.
E)   By definition, direct selling can only take place in a home.F) A) and E)
G) B) and C)

Question 2

Which type of wholesaler offers a relatively narrow range of products but has an extensive assortment within the product lines carried?

Accepted Answer

A)   general merchandise wholesaler
B)   limited-service wholesaler
C)   cash and carry wholesaler
D)   specialty merchandise wholesaler
E)   drop shipperF) B) and E)
G) A) and B)

Question 3

Which of these statements regarding telemarketing is most accurate?

Accepted Answer

A)   Shopping bots are computers that place automated or "robo" (i.e., robotic)  telemarketing calls.
B)   Direct mail is typically viewed as a more efficient means of targeting consumers than telemarketing.
C)   Telemarketing has become more effective as a result of the National Please-Do-Call registry legislation.
D)   Consumer privacy, industry standards, and ethical guidelines have become important issues.
E)   Many firms are considering shifting their direct-mail and door-to-door budgets to telemarketing techniques.F) A) and C)
G) B) and C)

Question 4

A method of classification that describes how many different types of products a store carries and in what assortment is referred to as a

Accepted Answer

A)   product mix.
B)   service level.
C)   product variety.
D)   store composition.
E)   merchandise line.F) D) and E)
G) A) and B)

Question 5

The largest percentage of products sold from vending machines are

Accepted Answer

A)   candy.
B)   personal care items.
C)   movies and videos.
D)   cold beverages.
E)   food.F) None of the above
G) C) and D)

Question 6

The activities related to managing the store and the merchandise in the store, which includes retail pricing, store location, retail communication, and merchandise are referred to as the

Accepted Answer

A)   wheel of retailing.
B)   distribution mix.
C)   retail life cycle.
D)   retailing mix.
E)   retail store positioning.F) A) and B)
G) C) and E)

Question 7

A limited-service wholesaler that furnishes shelves that display merchandise in stores, performs all channel functions, and sells on consignment to retailers is referred to as a

Accepted Answer

A)   stack loader.
B)   rack jobber.
C)   drop shipper.
D)   desk jobber.
E)   truck jobber.F) D) and E)
G) B) and C)

Question 8

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

Question 9

Outlets where customers are responsible for most shopping activities, although salespeople are available in some departments, would be classified as ________ retail outlets.

Accepted Answer

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

Question 10

Figure 16-9
-According to Figure 16-9 above, if D represents the entry of new forms of the outlet into categories where older ones exist, where would you typically find the highest prices, margins, and status?

Accepted Answer

A)   A
B)   B
C)   C
D)   D
E)   A & DF) B) and C)
G) None of the above

Question 11

A manufacturer's sales office

Accepted Answer

A)   works for several producers and carries noncompetitive, complementary merchandise in an exclusive territory.
B)   takes title to merchandise but sells only to buyers that call on them, pay cash for merchandise, and furnish their own transportation for the merchandise.
C)   carries a producer's inventory, performs the functions of a full-service wholesaler, and is an alternative to a merchant wholesaler.
D)   does not carry inventory, typically performs a sales function, and is an alternative to agents and brokers.
E)   brings buyers and sellers together to make sales.F) A) and D)
G) D) and E)

Question 12

A 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 is referred to as

Accepted Answer

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

Question 13

One variation of off-price retailing is

Accepted Answer

A)   discount wholesalers.
B)   outlet stores.
C)   discount retailers.
D)   supercenters.
E)   hypermarkets.F) C) and D)
G) A) and B)

Question 14

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) C) and D)
G) A) and C)

Question 15

Describe the retail life cycle.

Accepted Answer

The retail life cycle describes the proc...

Question 16

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

Accepted Answer

A)   DSW shoe store
B)   Macy's department store
C)   7-Eleven convenience store
D)   Walmart
E)   Lamborghini automobile dealerF) A) and D)
G) A) and E)

Question 17

All of these are forms of nonstore retailing except which?

Accepted Answer

A)   direct selling
B)   television home shopping
C)   factory outlets
D)   online retailing
E)   telemarketingF) None of the above
G) A) and E)

Question 18

Key target markets for Mall of America are

Accepted Answer

A)   the interstate market and discount shoppers.
B)   shoppers who seek mainstream experiences and bargain hunters.
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 D)
G) B) and E)

Question 19

Texas-based Whole Foods supermarkets target people who want to eat healthy. The stores use placards throughout, which tell shoppers about the farmers who grew and harvested the various products sold. This use of signage to provide consumer information is a part of which element of the retailing mix?

Accepted Answer

A)   communication
B)   pricing
C)   merchandise
D)   goods and services factor
E)   locationF) A) and D)
G) A) and E)

Question 20

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

Exam 16: Retailing and Wholesaling

A limited-service wholesaler that furnishes shelves that display merchandise in stores, performs all channel functions, and sells on consignment to retailers is referred to as a

Correct AnswerverifiedShow Answer

Which of these statements regarding telemarketing is most accurate?

Correct AnswerverifiedShow Answer

One variation of off-price retailing is

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

The largest percentage of products sold from vending machines are

Correct AnswerverifiedShow Answer

Key target markets for Mall of America are

Correct AnswerverifiedShow Answer

Outlets where customers are responsible for most shopping activities, although salespeople are available in some departments, would be classified as ________ retail outlets.

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

Correct AnswerverifiedShow Answer

Which type of wholesaler offers a relatively narrow range of products but has an extensive assortment within the product lines carried?

Correct AnswerverifiedShow Answer

Describe the retail life cycle.

Correct AnswerverifiedThe retail life cycle describes the proc...View AnswerShow Answer

Which of these statements regarding direct selling is most accurate?

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A manufacturer's sales office

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A 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 is referred to as

Correct AnswerverifiedShow Answer

A method of classification that describes how many different types of products a store carries and in what assortment is referred to as a

Correct AnswerverifiedShow Answer

All of these are forms of nonstore retailing except which?

Correct AnswerverifiedShow Answer

Figure 16-9 -According to Figure 16-9 above, if D represents the entry of new forms of the outlet into categories where older ones exist, where would you typically find the highest prices, margins, and status?

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

The activities related to managing the store and the merchandise in the store, which includes retail pricing, store location, retail communication, and merchandise are referred to as the

Correct AnswerverifiedShow Answer

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

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The retail life cycle describes the proc...
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