Question 1

Off-price retailing refers to the

Accepted Answer

A)  differences between the final selling price and the retailer's cost.
B)  sale of brand name merchandise at lower than regular prices.
C)  sale of merchandise at maintained markups.
D)  amount added by the manufacturer to achieve the desired suggested retail price.
E)  reduction in retail price usually expressed as the gross margin.F) A) and C)
G) A) and D)

Question 2

Which of the following 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 because it provides customers with convenience and personalized service.
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 D)
G) A) and C)

Question 3

Markdowns can be used to

Accepted Answer

A)  increase competition with other retailers in the immediate vicinity.
B)  placate dissatisfied customers.
C)  enhance customer perceptions of product quality.
D)  increase demand for complementary products.
E)  create a sense of urgency among repeat buyers.F) C) and D)
G) A) and B)

Question 4

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) D) and E)
G) C) and E)

Question 5

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 anchor.
D)  the economic center.
E)  the historic commerce district.F) A) and B)
G) B) and C)

Question 6

Offering several unrelated product lines in a single store is referred to as

Accepted Answer

A)  intertype competition.
B)  multiple distribution.
C)  scrambled merchandising.
D)  a department store.
E)  a specialty outlet.F) A) and B)
G) A) and C)

Question 7

Independent retailers account for most of the __________ retail establishments in the United States.

Accepted Answer

A)  50,000
B)  90,000
C)  500,000
D)  900,000
E)  1.1 millionF) B) and D)
G) A) and C)

Question 8

Bloomingdale's stores are part of __________ corporate chain.

Accepted Answer

A)  Dillard's
B)  Macy's
C)  Target's
D)  Walmart's
E)  Saks Fifth Avenue'sF) D) and E)
G) B) and C)

Question 9

Discounting generally takes place during which stage of the retail life cycle?

Accepted Answer

A)  early growth
B)  accelerated development
C)  decline
D)  maturity
E)  early growth and maturityF) A) and E)
G) All of the above

Question 10

Sales per square foot is calculated by dividing

Accepted Answer

A)  profit margin by selling area in square feet.
B)  gross profit by selling area in square feet.
C)  total sales by selling area in square feet.
D)  return on investment by selling area in square feet.
E)  net sales by selling area in square feet.F) A) and E)
G) D) and E)

Question 11

All of the following are characteristics of warehouse clubs except

Accepted Answer

A)  customers are attracted by the ultra-low prices and surprise deals on selected merchandise.
B)  the stores are used to clear excess merchandise.
C)  customers must pay an annual membership fee.
D)  the stores carry 4,000 to 8,000 items.
E)  the stores are rather stark outlets with no elaborate displays.F) A) and C)
G) B) and E)

Question 12

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

Accepted Answer

A)  truck jobbers.
B)  machine vendors.
C)  credit line wholesalers.
D)  transport vendors.
E)  container transport vendors.F) B) and E)
G) None of the above

Question 13

Which of the following firms has made the wisest wholesaler choice for its product?

Accepted Answer

A)  Hannah's Hardware uses a rack jobber for its hammers.
B)  Fiona's Floral uses a truck jobber for its cut roses.
C)  Sam's Coal Country uses a truck jobber for its subway cars.
D)  Shayna's Superior Supplies uses a desk jobber for its staplers.
E)  Josh's Jackhammers uses a rack jobber for its hard hats.F) None of the above
G) A) and E)

Question 14

All of the following are forms of nonstore retailing except

Accepted Answer

A)  direct selling.
B)  television home shopping.
C)  factory outlets.
D)  online retailing.
E)  telemarketing.F) A) and B)
G) A) and C)

Question 15

Explain what a markdown is and its timing (i.e., when a retailer uses it).

Accepted Answer

A markdown involves discounting a produc...

Question 16

Because consumers often use price as an indicator of product quality, what decision factor becomes important in this situation?

Accepted Answer

A)  store image
B)  value
C)  convenience
D)  product benefits
E)  maintained priceF) B) and D)
G) D) and E)

Question 17

A retail outlet that focuses on one type of product at very competitive or discount prices and often dominates the market is referred to as a

Accepted Answer

A)  general merchandise store.
B)  value outlet.
C)  hypermarket.
D)  category killer.
E)  department store.F) C) and E)
G) A) and B)

Question 18

Nordstrom Rack and the Gap Factory Store allow retailers to sell excess merchandise and still maintain an image of offering merchandise at full price in their primary stores. These are referred to as

Accepted Answer

A)  extreme value retailers.
B)  warehouse clubs.
C)  discount houses.
D)  outlet stores.
E)  community shopping centers.F) A) and D)
G) B) and E)

Question 19

The ability to shop over the Internet 24 hours a day, seven days a week, provides consumers with __________ utility.

Accepted Answer

A)  form
B)  time
C)  convenience
D)  possession
E)  performanceF) B) and C)
G) C) and D)

Question 20

The Sports Authority is a sporting goods superstore that provides year-round inventory of equipment for just about any sport. Even during the off-season, equipment for seasonal sports is available at the Sports Authority. Which utility does the Sports Authority best provide?

Accepted Answer

A)  time
B)  convenience
C)  possession
D)  form
E)  performanceF) B) and D)
G) None of the above

Exam 16: Retailing and Wholesaling

A retail outlet that focuses on one type of product at very competitive or discount prices and often dominates the market is referred to as a

Correct AnswerverifiedShow Answer

Bloomingdale's stores are part of __________ corporate chain.

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Nordstrom Rack and the Gap Factory Store allow retailers to sell excess merchandise and still maintain an image of offering merchandise at full price in their primary stores. These are referred to as

Correct AnswerverifiedShow Answer

Which of the following statements regarding direct selling is most accurate?

Correct AnswerverifiedShow Answer

Markdowns can be used to

Correct AnswerverifiedShow Answer

Off-price retailing refers to the

Correct AnswerverifiedShow Answer

Sales per square foot is calculated by dividing

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The ability to shop over the Internet 24 hours a day, seven days a week, provides consumers with __________ utility.

Correct AnswerverifiedShow Answer

Explain what a markdown is and its timing (i.e., when a retailer uses it).

Correct AnswerverifiedA markdown involves discounting a produc...View AnswerShow Answer

Discounting generally takes place during which stage of the retail life cycle?

Correct AnswerverifiedShow Answer

Offering several unrelated product lines in a single store is referred to as

Correct AnswerverifiedShow Answer

All of the following are forms of nonstore retailing except

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

All of the following are characteristics of warehouse clubs except

Correct AnswerverifiedShow Answer

Which of the following firms has made the wisest wholesaler choice for its product?

Correct AnswerverifiedShow Answer

Independent retailers account for most of the __________ retail establishments in the United States.

Correct AnswerverifiedShow Answer

Because consumers often use price as an indicator of product quality, what decision factor becomes important in this situation?

Correct AnswerverifiedShow Answer

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

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 Sports Authority is a sporting goods superstore that provides year-round inventory of equipment for just about any sport. Even during the off-season, equipment for seasonal sports is available at the Sports Authority. Which utility does the Sports Authority best provide?

Correct AnswerverifiedShow Answer

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A markdown involves discounting a produc...
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