Question 1

Independently owned stores that band together to act like a chain are referred to as

Accepted Answer

A)   corporate chains.
B)   cooperative marketing systems.
C)   contractual systems.
D)   regional shopping centers.
E)   self-service systems.F) All of the above
G) D) and E)

Question 2

Which of the following is a type of full-service merchant wholesaler?

Accepted Answer

A)   cash and carry wholesaler
B)   rack jobbers
C)   truck jobbers
D)   specialty merchandise wholesaler
E)   drop shippersF) A) and B)
G) D) and E)

Question 3

Rack jobbers are wholesalers that

Accepted Answer

A)   furnish the shelves that display merchandise in retail stores, perform all channel functions, and sell on consignment to retailers.
B)   own the merchandise they sell and have retailers store it in their warehouses.
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 and carry noncompetitive, complementary merchandise in an exclusive territory.F) A) and B)
G) D) and E)

Question 4

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

Accepted Answer

A markdown involves discounting a produc...

Question 5

Intermediaries that represent a single producer and are responsible for the entire marketing function of that producer are referred to as

Accepted Answer

A)   brokers.
B)   line brokers.
C)   selling agents.
D)   distribution brokers.
E)   manufacturers' agents.F) D) and E)
G) All of the above

Question 6

A customer was unable to go to the store on her own to buy gifts for the holidays.She contacted a Pampered Chef representative who came to her home,showed her not only catalogs but actual products,answered all her questions,and had all the customer's gifts sorted and delivered.This is an example of

Accepted Answer

A)   interface marketing.
B)   flex marketing.
C)   direct selling.
D)   interactive selling.
E)   responsive selling.F) None of the above
G) All of the above

Question 7

Growth in the direct-selling industry is the result of two trends: direct-selling retailers are expanding into markets outside the United States,and

Accepted Answer

A)   increased gas prices and traffic congestion are causing people to want the store to deliver the products to them.
B)   the pendulum is beginning to swing back to more mothers (and fathers)  staying home during the day with children, making direct selling more convenient.
C)   the cost of purchasing or leasing real estate to build an actual "brick" retail store is becoming prohibitive.
D)   graduating business students are finding it more difficult to find a traditional sales position and like the idea of being their own bosses.
E)   some consumers prefer one-on-one customer service and a social shopping experience rather than online shopping or big discount stores.F) A) and B)
G) A) and D)

Question 8

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 C)
G) B) and D)

Question 9

The retailing mix includes all of the following except which?

Accepted Answer

A)   merchandise
B)   target market
C)   retail pricing
D)   store location
E)   retail communicationF) D) and E)
G) A) and B)

Question 10

Companies such as Avon,Fuller Brush,Mary Kay,and World Book are examples of firms that use

Accepted Answer

A)   interface marketing.
B)   flex marketing.
C)   direct selling.
D)   interactive selling.
E)   responsive selling.F) C) and D)
G) None of the above

Question 11

A markdown refers to

Accepted Answer

A)   the difference between the final selling price and the retailer's cost.
B)   the amount the manufacturer adds to achieve the desired suggested retail price.
C)   discounting a product when it does not sell at the original price and an adjustment is necessary.
D)   the lowest price to which a retailer can reduce a sales ticket and still make a profit.
E)   the net margin.F) C) and D)
G) A) and D)

Question 12

In __________,an individual or firm contracts with a parent company to set up a business or retail outlet.

Accepted Answer

A)   an administered system
B)   a vertically integrated chain
C)   a retail-sponsored cooperative
D)   a franchise system
E)   a corporate systemF) A) and C)
G) A) and B)

Question 13

Wholesalers that own the merchandise they sell but do not physically handle,stock,or deliver it are referred to as

Accepted Answer

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

Question 14

A retailer bought a collectible Precious Moments figurine for $26. She sets the initial selling price at $60. The final selling price was $52. What was the maintained markup?

Accepted Answer

A)   $112
B)   $52 
C)   $26
D)   $34 
E)   $86 F) A) and B)
G) C) and D)

Question 15

Most specialty stores and department stores,which provide many services to their customers,are considered to be

Accepted Answer

A)   exclusive-service retailers.
B)   limited-service retailers.
C)   full-service retailers.
D)   unlimited-service retailers.
E)   exhaustive-service retailers.F) All of the above
G) A) and E)

Question 16

Neighborhood grocers that work together with several other independent grocers that all agree to buy their goods directly from food manufacturers is

Accepted Answer

A)   a retailer-sponsored cooperative.
B)   a consortium system.
C)   an administrative system.
D)   a conglomerate system.
E)   a contractual horizontal marketing system.F) B) and E)
G) A) and D)

Question 17

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) D) and E)

Question 18

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) A) and E)
G) A) and D)

Question 19

Subway restaurants that offer sandwiches made exactly to each customer's preference are providing __________ utility.

Accepted Answer

A)   time
B)   place
C)   possession
D)   form
E)   processF) A) and E)
G) A) and D)

Question 20

________ can benefit retailers by helping them to predict shopping behavior,provide personalized,real-time messaging and promotions,and track customer needs.

Accepted Answer

A)   Data analytics
B)   Brokers
C)   Telemarketing
D)   Multichannel retailing
E)   Shopper marketingF) None of the above
G) B) and E)

Exam 13: Retailing and Wholesaling

Wholesalers that own the merchandise they sell but do not physically handle,stock,or deliver it are referred to as

Correct AnswerverifiedShow Answer

Intermediaries that represent a single producer and are responsible for the entire marketing function of that producer are referred to as

Correct AnswerverifiedShow Answer

Rack jobbers are wholesalers that

Correct AnswerverifiedShow Answer

Growth in the direct-selling industry is the result of two trends: direct-selling retailers are expanding into markets outside the United States,and

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

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

Companies such as Avon,Fuller Brush,Mary Kay,and World Book are examples of firms that use

Correct AnswerverifiedShow Answer

In __________,an individual or firm contracts with a parent company to set up a business or retail outlet.

Correct AnswerverifiedShow Answer

The retailing mix includes all of the following except which?

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Subway restaurants that offer sandwiches made exactly to each customer's preference are providing __________ utility.

Correct AnswerverifiedShow Answer

Which of the following is a type of full-service merchant wholesaler?

Correct AnswerverifiedShow Answer

________ can benefit retailers by helping them to predict shopping behavior,provide personalized,real-time messaging and promotions,and track customer needs.

Correct AnswerverifiedShow Answer

Independently owned stores that band together to act like a chain are referred to as

Correct AnswerverifiedShow Answer

A markdown refers to

Correct AnswerverifiedShow Answer

A retailer bought a collectible Precious Moments figurine for $26. She sets the initial selling price at $60. The final selling price was $52. What was the maintained markup?

Correct AnswerverifiedShow Answer

Most specialty stores and department stores,which provide many services to their customers,are considered to be

Correct AnswerverifiedShow Answer

A customer was unable to go to the store on her own to buy gifts for the holidays.She contacted a Pampered Chef representative who came to her home,showed her not only catalogs but actual products,answered all her questions,and had all the customer's gifts sorted and delivered.This is an example of

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Neighborhood grocers that work together with several other independent grocers that all agree to buy their goods directly from food manufacturers is

Correct AnswerverifiedShow Answer

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A markdown involves discounting a produc...
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