Question 1

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

Accepted Answer

A)  Sam's Streamliners used a drop shipper for its subway cars.
B)  Amy's Amazing Appetizers used a rack jobber for its frozen apricot aperitifs.
C)  Hannah's Hardware used a rack jobber for its hinges.
D)  Shayna's Superior Supplies used a desk jobber for its staplers.
E)  Nova's Novelties uses a truck jobber for its never-needs-a-battery night lights.F) A) and D)
G) A) and C)

Question 2

Which form of retailing is Best Buy using in airports to distribute its cell phone and computer accessories, digital cameras, flash drives, and other consumer electronics?

Accepted Answer

A)  vending machines
B)  salespeople with mobile carts
C)  small-scale traditional retail stores
D)  salespeople wearing Best Buy uniforms with products in backpacks
E)  free-standing kiosks manned with knowledgeable sales personnelF) A) and B)
G) C) and D)

Question 3

A specialty retail store carries a broad selection of small kitchen appliances.It has an informed staff and will even gift-wrap your purchases free of charge.It also offers a shop for repairs should your appliances need maintenance.This store offers _________.

Accepted Answer

A)  exclusive service
B)  economies-of-scale service
C)  self-service
D)  limited service
E)  full-serviceF) D) and E)
G) A) and E)

Question 4

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

Accepted Answer

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

Question 5

Which of the following is a commonly used method of classifying retail outlets?

Accepted Answer

A)  proportion of national brands carried
B)  service versus product
C)  form of ownership
D)  revenue generated
E)  profitabilityF) A) and B)
G) A) and C)

Question 6

Your local Hallmark retailer carries thousands of greeting cards.You can find cards for a twin birthday, for name day, from my cat to yours and many other unique titles.This is an example of the __________ your Hallmark retailer carries.

Accepted Answer

A)  depth of product line
B)  breadth of product line
C)  variety of product line
D)  versatility of product line
E)  product mixF) A) and E)
G) B) and C)

Question 7

Another term for maintained markup is _________.

Accepted Answer

A)  original markup
B)  sustained markup
C)  markdown
D)  gross margin
E)  discount priceF) A) and B)
G) All of the above

Question 8

Independently owned firms that take title to the merchandise they handle are referred to as

Accepted Answer

A)  brokers.
B)  agencies.
C)  virtual retailer.
D)  merchant wholesalers.
E)  merchant manufacturers.F) None of the above
G) A) and E)

Question 9

Walmart and Home Depot emphasize consistently low prices and eliminate most markdowns with a strategy called

Accepted Answer

A)  low-margin.
B)  value based.
C)  everyday low pricing.
D)  everyday fair pricing.
E)  consistency pricing.F) A) and D)
G) A) and B)

Question 10

Which of the following statements describes the key difference between merchant wholesalers and agents and brokers?

Accepted Answer

A)  Merchant wholesalers don't perform all channel functions and agents and brokers do.
B)  Agents and brokers only deal with consumer channels.
C)  Agents and brokers make their profits based on the sales of merchandise they own, while merchant wholesalers make profits based on fees paid for their services.
D)  Merchant wholesalers take title to merchandise and agents and brokers do not.
E)  Agents and brokers take title to merchandise and merchant wholesalers do not.F) B) and D)
G) D) and E)

Question 11

The four major types of limited-service merchant wholesalers are rack jobbers, cash and carry wholesalers, truck jobbers, and _________.

Accepted Answer

A)  machine vendors
B)  drop shippers
C)  credit line wholesalers
D)  transport vendors
E)  container transport vendorsF) C) and D)
G) A) and B)

Question 12

Regional shopping centers refer to

Accepted Answer

A)  retail clusters in downtown areas.
B)  retail site locations that typically have one primary store and often about 20 to 40 smaller outlets and that serve a population base of about 100,000.
C)  clusters of stores that serve people who are within a 5-to 10-minute drive and live in a population base under 30,000.
D)  50 to 150 stores that typically attract customers who live or work within a 5-to 10-mile range, often containing two or three anchor stores.
E)  large stores (over 100,000 square feet)  which offer a mix of about 40 percent food products and 60 percent general merchandise items.F) B) and E)
G) C) and E)

Question 13

Retailers that utilize and integrate a combination of traditional store formats and nonstore formats such catalogs, televisions, and online retailing, are referred to as _________.

Accepted Answer

A)  multichannel retailers
B)  scrambled merchandisers
C)  mixed-brand retailers
D)  piggy-back retailers
E)  mixed-channel retailersF) All of the above
G) A) and B)

Question 14

Using the telephone to interact with and sell directly to consumers is referred to as _________.

Accepted Answer

A)  telemarketing
B)  digital marketing
C)  interface marketing
D)  direct contact marketing
E)  "on-the-wire" marketingF) B) and E)
G) B) and C)

Question 15

As a business-format franchisor, McDonald's provides step-by-step procedures for most aspects of the business and

Accepted Answer

A)  provides an accounting system to pay the franchisee bills promptly.
B)  shops for the best food values.
C)  maintains the property.
D)  guidelines for the most likely decisions a franchisee will face.
E)  disciplines dishonest employees.F) None of the above
G) B) and C)

Question 16

Wholesalers who simply solicit orders from retailers and other wholesalers and have the merchandise shipped directly from a producer to a buyer are referred to as _________.

Accepted Answer

A)  cash and carry wholesalers
B)  rack jobbers
C)  drop shippers
D)  truck jobbers
E)  manufacturer's representativesF) B) and D)
G) All of the above

Question 17

Your local Target retailer carries variety of different items.You can find anything ranging from socks, CD's, baby items to groceries and much more.This is an example of the __________ carried by Target.

Accepted Answer

A)  depth of product line
B)  breadth of product line
C)  variety of product line
D)  versatility of product line
E)  product mixF) D) and E)
G) A) and C)

Question 18

An indicator of how effectively retail space is used to generate revenue is called _________.

Accepted Answer

A)  return in investment
B)  percentage of markup
C)  gross profit
D)  sales per square foot
E)  same store sales growthF) A) and B)
G) A) and C)

Question 19

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

Accepted Answer

A)  decline
B)  maturity
C)  early growth
D)  accelerated development
E)  early growth and maturityF) C) and E)
G) D) and E)

Question 20

Strip mall refers to

Accepted Answer

A)  suburban mall containing up to 100 stores that draws customer from a 5-to 10-mile radius.
B)  a cluster of stores in a downtown area.
C)  retail site location that typically has one primary store and often about 20 to 40 smaller outlets and serves a population of consumers who are within a 10-to 20-minute drive.
D)  cluster of neighborhood stores 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 D)
G) A) and B)

Exam 14: Retailing and Wholesaling

Your local Hallmark retailer carries thousands of greeting cards.You can find cards for a twin birthday, for name day, from my cat to yours and many other unique titles.This is an example of the __________ your Hallmark retailer carries.

Correct AnswerverifiedShow Answer

Which of the following statements describes the key difference between merchant wholesalers and agents and brokers?

Correct AnswerverifiedShow Answer

Which form of retailing is Best Buy using in airports to distribute its cell phone and computer accessories, digital cameras, flash drives, and other consumer electronics?

Correct AnswerverifiedShow Answer

Wholesalers who simply solicit orders from retailers and other wholesalers and have the merchandise shipped directly from a producer to a buyer are referred to as _________.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

The four major types of limited-service merchant wholesalers are rack jobbers, cash and carry wholesalers, truck jobbers, and _________.

Correct AnswerverifiedShow Answer

A specialty retail store carries a broad selection of small kitchen appliances.It has an informed staff and will even gift-wrap your purchases free of charge.It also offers a shop for repairs should your appliances need maintenance.This store offers _________.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Independently owned firms that take title to the merchandise they handle are referred to as

Correct AnswerverifiedShow Answer

Strip mall refers to

Correct AnswerverifiedShow Answer

As a business-format franchisor, McDonald's provides step-by-step procedures for most aspects of the business and

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Using the telephone to interact with and sell directly to consumers is referred to as _________.

Correct AnswerverifiedShow Answer

Walmart and Home Depot emphasize consistently low prices and eliminate most markdowns with a strategy called

Correct AnswerverifiedShow Answer

Retailers that utilize and integrate a combination of traditional store formats and nonstore formats such catalogs, televisions, and online retailing, are referred to as _________.

Correct AnswerverifiedShow Answer

Regional shopping centers refer to

Correct AnswerverifiedShow Answer

Which of the following is a commonly used method of classifying retail outlets?

Correct AnswerverifiedShow Answer

Your local Target retailer carries variety of different items.You can find anything ranging from socks, CD's, baby items to groceries and much more.This is an example of the __________ carried by Target.

Correct AnswerverifiedShow Answer

An indicator of how effectively retail space is used to generate revenue is called _________.

Correct AnswerverifiedShow Answer

Another term for maintained markup is _________.

Correct AnswerverifiedShow Answer

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