Question 1

Dick's Sporting Goods is a leading sports retailer that provides year-round inventory of equipment for just about any sport.Even during the off-season,equipment for seasonal sports is available at Dick's.Which utility does the Sports Authority best provide?

Accepted Answer

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

Question 2

Which of the following statements regarding corporate chains is most accurate?

Accepted Answer

A)   Corporate chains cannot bargain with a manufacturer to obtain product volume discounts due to federal anticompetitive legislation-the Clayton Act as amended by the Sherman Act.
B)   Corporate chains generally own most if not all of their suppliers-a practice known as forward integration-so they can save distribution costs.
C)   Consumers have fewer choices in merchandise since all buying decisions are made by a decentralized buying committee.
D)   Corporate chains offer the least benefit to consumers since they are the farthest removed from the ultimate consumer.
E)   Corporate chains are multiple outlets under common ownership.F) C) and D)
G) A) and C)

Question 3

Another name for a drop shipper is a

Accepted Answer

A)   drop runner.
B)   desk jobber.
C)   transport vendor.
D)   container transport vendor.
E)   stock jobber.F) B) and D)
G) C) and D)

Question 4

Costco requires customers to perform many shopping functions during the purchasing process and all nonessential customer services have been eliminated.What level of service does Costco offer?

Accepted Answer

A)   limited-service
B)   full-service
C)   customized-service
D)   self-service
E)   restricted-serviceF) All of the above
G) A) and C)

Question 5

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

Question 6

Wholesalers that have a small warehouse from which they stock their trucks for distribution to retailers are referred to as

Accepted Answer

A)   cash and carry wholesalers.
B)   truck jobbers.
C)   rack jobbers.
D)   drop shippers.
E)   manufacturer's representatives.F) D) and E)
G) B) and D)

Question 7

Your local Target retailer carries a variety of different items.You can find everything ranging from socks and DVDs to baby items and groceries.This is an example of the __________ carried by Target.

Accepted Answer

A)   breadth of product line
B)   depth of product line
C)   variety of brand extension
D)   breadth of product class
E)   product mixF) A) and C)
G) C) and D)

Question 8

The wholesalers most prevalent in the hardware,drug,and clothing industries are

Accepted Answer

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

Question 9

Accelerated development in the retail life cycle is similar to which stage in the product life cycle?

Accepted Answer

A)   introduction
B)   maturity
C)   decline
D)   growth
E)   harvestF) A) and C)
G) B) and E)

Question 10

Walmart has developed a sophisticated inventory management and cost control system that allows rapid price changes for each product in the store.The firm also uses technologies such as __________ to improve the quality of information available about products.

Accepted Answer

A)   radio frequency identification
B)   encapsulation techniques
C)   bar code scanners
D)   nanotechnology
E)   cookiesF) A) and E)
G) B) and D)

Question 11

The __________ provided by retailers create value for consumers.

Accepted Answer

A)   utilities
B)   wholesaling functions
C)   outsourcing functions
D)   profits
E)   synergiesF) A) and B)
G) B) and C)

Question 12

Consumers often view central business district shopping as less convenient because of the lack of parking,higher crime rates,and

Accepted Answer

A)   outdated stores.
B)   a lack of ambience.
C)   fewer quality restaurants.
D)   few public restrooms.
E)   exposure to the weather.F) C) and D)
G) C) and E)

Question 13

Anytime Fitness is a popular

Accepted Answer

A)   business-format franchise.
B)   product-distribution franchise.
C)   operations franchise venture.
D)   manufacturing franchise.
E)   general service franchise.F) B) and E)
G) A) and E)

Question 14

Online retail purchases by consumers can be the result of several very different approaches,including going directly to online malls,paying dues to become a member of an online discount service,and

Accepted Answer

A)   becoming a secret shopper.
B)   participating in a buying cooperative.
C)   using direct selling.
D)   shopping via vending machine.
E)   participating in an online auction.F) A) and E)
G) All of the above

Question 15

The acronym RFID stands for

Accepted Answer

A)   retail franchise identification designation.
B)   required financial identification.
C)   radar frequency identification.
D)   radio frequency identification.
E)   retail federation of independent department stores.F) None of the above
G) B) and E)

Question 16

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

Question 17

Truck jobbers refers to wholesalers that

Accepted Answer

A)   furnish the racks or shelves that display merchandise in retail stores, perform all channel functions, and sell on consignment to retailers.
B)   store all the merchandise they sell in their trucks.
C)   own the merchandise they sell but do not physically handle, stock, or deliver it.
D)   have a small warehouse from which they stock their trucks for distribution to retailers.
E)   work for several producers, carry noncompetitive, complementary merchandise in an exclusive territory, and use over-the-road transportation for all product deliveries.F) All of the above
G) B) and D)

Question 18

Managing the breadth and depth of merchandise available from many manufacturers requires retail buyers who are

Accepted Answer

A)   efficient and effective managers.
B)   familiar with the needs of the target market.
C)   experienced shoppers.
D)   familiar with retail inventory management.
E)   product champions.F) D) and E)
G) A) and B)

Question 19

Retailing that occurs outside a retail outlet,such as through direct marketing,direct selling,and automatic vending,is referred to as

Accepted Answer

A)   limited-line retailing.
B)   nonstore retailing.
C)   scrambled merchandising.
D)   a hypermarket.
E)   intertype competition.F) B) and E)
G) A) and B)

Question 20

There are two general types of franchises: business-format franchises and __________ franchises.

Accepted Answer

A)   product-distribution
B)   general service
C)   manufacturing
D)   distribution
E)   ventureF) None of the above
G) B) and C)

Exam 13: Retailing and Wholesaling

The __________ provided by retailers create value for consumers.

Correct AnswerverifiedShow Answer

The acronym RFID stands for

Correct AnswerverifiedShow Answer

The wholesalers most prevalent in the hardware,drug,and clothing industries are

Correct AnswerverifiedShow Answer

Managing the breadth and depth of merchandise available from many manufacturers requires retail buyers who are

Correct AnswerverifiedShow Answer

Retailing that occurs outside a retail outlet,such as through direct marketing,direct selling,and automatic vending,is referred to as

Correct AnswerverifiedShow Answer

Accelerated development in the retail life cycle is similar to which stage in the product life cycle?

Correct AnswerverifiedShow Answer

There are two general types of franchises: business-format franchises and __________ franchises.

Correct AnswerverifiedShow Answer

Online retail purchases by consumers can be the result of several very different approaches,including going directly to online malls,paying dues to become a member of an online discount service,and

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

Dick's Sporting Goods is a leading sports retailer that provides year-round inventory of equipment for just about any sport.Even during the off-season,equipment for seasonal sports is available at Dick's.Which utility does the Sports Authority best provide?

Correct AnswerverifiedShow Answer

A maintained markup is

Correct AnswerverifiedShow Answer

Walmart has developed a sophisticated inventory management and cost control system that allows rapid price changes for each product in the store.The firm also uses technologies such as __________ to improve the quality of information available about products.

Correct AnswerverifiedShow Answer

Another name for a drop shipper is a

Correct AnswerverifiedShow Answer

Anytime Fitness is a popular

Correct AnswerverifiedShow Answer

Truck jobbers refers to wholesalers that

Correct AnswerverifiedShow Answer

Your local Target retailer carries a variety of different items.You can find everything ranging from socks and DVDs to baby items and groceries.This is an example of the __________ carried by Target.

Correct AnswerverifiedShow Answer

Wholesalers that have a small warehouse from which they stock their trucks for distribution to retailers are referred to as

Correct AnswerverifiedShow Answer

Consumers often view central business district shopping as less convenient because of the lack of parking,higher crime rates,and

Correct AnswerverifiedShow Answer

Which of the following statements regarding corporate chains is most accurate?

Correct AnswerverifiedShow Answer

Costco requires customers to perform many shopping functions during the purchasing process and all nonessential customer services have been eliminated.What level of service does Costco offer?

Correct AnswerverifiedShow Answer

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