Question 1

Consumers often use the prices of __________ items, such as a can of Coke, to form an overall impression of the store's prices.

Accepted Answer

A)  stoplight
B)  point-of-purchase
C)  value-based
D)  signpost
E)  loss-leaderF) A) and B)
G) A) and C)

Question 2

Bakery items, dairy products, and meat that are sold for cash in their original packages are traditionally sold by which type of wholesaler?

Accepted Answer

A)  rack jobbers
B)  drop shippers
C)  cash and carry wholesalers
D)  truck jobbers
E)  general merchandise wholesalersF) B) and C)
G) A) and D)

Question 3

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 who call on them, pays cash for merchandise, and furnishes 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) All of the above
G) None of the above

Question 4

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

Accepted Answer

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

Question 5

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 jobberF) A) and E)
G) C) and D)

Question 6

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

Question 7

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

Question 8

Walmart reduced waste in packaging by 3,500 tons by __________.

Accepted Answer

A)  purchasing more merchandise from U.S. manufacturers
B)  requiring its toy suppliers to trim one square inch of packaging from their lines
C)  shipping with airline carriers which provide superior handline
D)  identifying products that can be shipped without packaging materials
E)  using natural gas-powered delivery vehicles that reduce emissionsF) B) and C)
G) A) and C) B

Question 9

In response to the changes in the United States, many direct sellers are implementing a __________ strategy by expanding into other countries with their current product lines.

Accepted Answer

A)  market development
B)  market penetration
C)  accelerated development
D)  product development
E)  diversificationF) None of the above
G) B) and D)

Question 10

Timing is an important element of markdowns. Those retailers who take a markdown as soon as sales fall off are most likely 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 competitorF) B) and E)
G) A) and E)

Question 11

Another name for a manufacturer's agent is a __________.

Accepted Answer

A)  manufacturer's desk jobber
B)  manufacturer's transport vendor
C)  manufacturer's representative
D)  manufacturer's broker
E)  manufacturer's rack jobberF) A) and E)
G) C) and D)

Question 12

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

Question 13

Merchant wholesalers are independently owned firms that __________ the merchandise they handle.

Accepted Answer

A)  take title to
B)  broker
C)  break bulk and repackage
D)  do not deliver
E)  act as agents forF) D) and E)
G) C) and D)

Question 14

General merchandise stores such as Walmart, Kmart, and Target are usually considered __________ retailers.

Accepted Answer

A)  exclusive-service
B)  minimal-service
C)  self-service
D)  full-service
E)  limited-serviceF) A) and D)
G) None of the above

Question 15

At the Christmas Tree Shop, customers can shop for Christmas gifts at any time of year. What type of utility primarily does this store provide for its customers?

Accepted Answer

A)  place and conformance
B)  possession and form
C)  form
D)  performance
E)  timeF) B) and C)
G) C) and D)

Question 16

A unique broker that acts in many ways like a manufacturer's agent is a food broker, representing buyers and sellers in the grocery industry. Food brokers differ from conventional brokers because they act on behalf of producers on a permanent basis and

Accepted Answer

A)  receive a commission for their services.
B)  are paid a flat fee for each time the shelves are stocked.
C)  are paid by both the buyer and seller separately depending upon the size of the order.
D)  are paid a commission by the buyer and a bonus by the seller.
E)  are paid a flat fee by both the buyer and seller, but receive a bonus based upon the percentage of increased sales by quarter.F) C) and E)
G) B) and E)

Question 17

Which of the following are most likely to be the anchor stores at a regional shopping center?

Accepted Answer

A)  Old Navy, Abercrombie & Fitch, and Kay-Bee toy store
B)  Hickory Farms, Kay Jewelers, and Radio Shack
C)  Foot Locker, Dollar General, and a 7-11
D)  Sears, Macy's, and JCPenney
E)  Hallmark, Pac Sun, and a Barnes & Noble bookstoreF) B) and E)
G) C) and D)

Question 18

A franchise where the franchisor provides step-by-step procedures for most aspects of the business is known as a

Accepted Answer

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

Question 19

To increase the demand for complementary products, the price of a product often is

Accepted Answer

A)  marked up.
B)  marked down.
C)  off-priced.
D)  value-subtracted.
E)  maintained.F) None of the above
G) A) and B)

Question 20

Mall of America has four __________ stores: Nordstrom, Macy's, Bloomingdale's, and Sears.

Accepted Answer

A)  strip mall
B)  local competitor
C)  broker
D)  retailing mix
E)  anchorF) D) and E)
G) C) and E) E

Exam 13: Retailing and Wholesaling

Consumers often use the prices of __________ items, such as a can of Coke, to form an overall impression of the store's prices.

Correct AnswerverifiedShow Answer

Bakery items, dairy products, and meat that are sold for cash in their original packages are traditionally sold by which type of wholesaler?

Correct AnswerverifiedShow Answer

A manufacturer's sales office

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Walmart reduced waste in packaging by 3,500 tons by __________.

Correct AnswerverifiedB

In response to the changes in the United States, many direct sellers are implementing a __________ strategy by expanding into other countries with their current product lines.

Correct AnswerverifiedShow Answer

Timing is an important element of markdowns. Those retailers who take a markdown as soon as sales fall off are most likely doing so to __________.

Correct AnswerverifiedShow Answer

Another name for a manufacturer's agent is a __________.

Correct AnswerverifiedShow Answer

Another name for a drop shipper is a __________.

Correct AnswerverifiedShow Answer

Merchant wholesalers are independently owned firms that __________ the merchandise they handle.

Correct AnswerverifiedShow Answer

General merchandise stores such as Walmart, Kmart, and Target are usually considered __________ retailers.

Correct AnswerverifiedShow Answer

At the Christmas Tree Shop, customers can shop for Christmas gifts at any time of year. What type of utility primarily does this store provide for its customers?

Correct AnswerverifiedShow Answer

A unique broker that acts in many ways like a manufacturer's agent is a food broker, representing buyers and sellers in the grocery industry. Food brokers differ from conventional brokers because they act on behalf of producers on a permanent basis and

Correct AnswerverifiedShow Answer

Which of the following are most likely to be the anchor stores at a regional shopping center?

Correct AnswerverifiedShow Answer

A franchise where the franchisor provides step-by-step procedures for most aspects of the business is known as a

Correct AnswerverifiedA

To increase the demand for complementary products, the price of a product often is

Correct AnswerverifiedShow Answer

Mall of America has four __________ stores: Nordstrom, Macy's, Bloomingdale's, and Sears.

Correct AnswerverifiedE

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B

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