Question 1

The key goal for retailers in the accelerated development phase of the retail life cycle is to

Accepted Answer

A)  recover start-up costs.
B)  establish a dominant position in the fight for market share.
C)  delay entering the decline stage of the retail life cycle.
D)  find ways of discouraging customers from moving to low-margin, mass-volume outlets.
E)  establish a retail concept that is a sharp departure from existing competition.F) B) and E)
G) A) and B)

Question 2

-Outlets such as the In-N-Out Restaurant (see the photo above) , typically enter the wheel of retailing with

Accepted Answer

A)  limited menus and limited service.
B)  extensive menus and expansive service.
C)  extensive menus and self-service.
D)  high prices and novel menu items.
E)  high prices and expansive serviceF) C) and D)
G) All of the above

Question 3

Experts suggest that online retailers should think of their websites as __________ if they are to attract and retain customers.

Accepted Answer

A)  cash cows
B)  dynamic billboards
C)  virtual reality stores
D)  traditional retail stores
E)  online entertainmentF) A) and B)
G) A) and C)

Question 4

Retail outlets, like products, experience the process of growth and decline, which is referred to as the

Accepted Answer

A)  retail life cycle.
B)  wheel of retailing.
C)  product life cycle.
D)  retail continuum.
E)  retail life matrix.F) A) and B)
G) C) and D)

Question 5

Unlike merchant wholesalers, agents, and brokers, manufacturers' branches and sales offices are __________ that perform wholesaling activities.

Accepted Answer

A)  independent distribution managers
B)  independent intermediary channels
C)  wholly-owned extensions of the producer
D)  wholly-owned extensions of the distributor
E)  wholly-owned extensions of the retailerF) A) and B)
G) C) and E)

Question 6

The amount added to the cost the retailer paid for a product to reach the final selling price is referred to as a(n)  __________.

Accepted Answer

A)  markup
B)  markdown
C)  original markup
D)  maintained markup
E)  gross marginF) A) and D)
G) A) and C)

Question 7

Drop shippers

Accepted Answer

A)  own the merchandise they sell but do not physically handle, stock, or deliver it.
B)  perform all channel functions, and sell on consignment to retailers.
C)  take title to merchandise but sell only to buyers who call on them, pay cash for merchandise, and furnish their own transportation for merchandise.
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) All of the above
G) C) and D)

Question 8

Briefly describe the advantages to the retailer and to the customer of the independent retailer.

Accepted Answer

Advantages to the retailer inc...

Question 9

When retailers set prices on new models or styles of products, the price of existing models often is __________ to quickly sell them.

Accepted Answer

A)  marked up
B)  off-priced
C)  value-added
D)  marked down
E)  maintainedF) B) and D)
G) A) and B)

Question 10

Cash and carry wholesalers refer to wholesalers who

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)  take title to merchandise but sell only to buyers who call on them, pay cash for merchandise, and furnish their own transportation for merchandise.
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) A) and C)

Question 11

-According to Figure 13-5 above, B represents which stage of the retail life cycle?

Accepted Answer

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

Question 12

Another term for gross margin is __________.

Accepted Answer

A)  original markup
B)  markdown
C)  return on sales
D)  discounted price
E)  maintained markupF) A) and B)
G) A) and E)

Question 13

At which level of service would the customer perform the least number of functions?

Accepted Answer

A)  exclusive-service
B)  minimal-service
C)  self-service
D)  limited-service
E)  full-serviceF) A) and B)
G) C) and D)

Question 14

Franchising is a type of __________.

Accepted Answer

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

Question 15

Growth in the direct-selling industry is the result of two trends: (1)  there is a growing number of companies that are using direct selling to reach consumers who prefer one-on-one customer service and a social shopping experience rather than online shipping or big discount stores and (2)

Accepted Answer

A)  many direct selling retailers are expanding into markets outside of the United States.
B)  increased gas prices and traffic congestion are causing people to want stores to deliver products to them.
C)  the pendulum is beginning to swing back to more mothers (and fathers)  staying home during the day with children, making direct selling more convenient.
D)  the purchase or lease of real estate to build physical retail stores is becoming prohibitive.
E)  graduating business students are finding it more difficult to find a traditional sales position and like the idea of being their own bosses.F) C) and D)
G) A) and B)

Question 16

One of the biggest problems online retailers face is that nearly two-thirds of online shoppers make it to "checkout" and then leave the website to compare shipping costs and prices on other sites. Of the shoppers who leave, __________ do not return.

Accepted Answer

A)  30%
B)  40%
C)  50%
D)  60%
E)  70%F) A) and C)
G) None of the above

Question 17

A maintained markup refers to

Accepted Answer

A)  the difference between the final selling price and the retailer's cost.
B)  the amount subtracted from the cost the retailer paid for a product to reach the initial selling price.
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) None of the above
G) B) and C)

Question 18

Vending machines are no longer limited by the need for cash. In Japan, South Korea, and the Philippines, consumers use mobile phones that transmit payments to vending machines wirelessly. This is an example of how vending machines can provide which type of utility?

Accepted Answer

A)  time
B)  place
C)  possession
D)  product
E)  formF) A) and B)
G) A) and E)

Question 19

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 B)
G) All of the above

Question 20

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

Accepted Answer

A)  vending machines
B)  salespeople with mobile carts
C)  mall-scale traditional retail stores
D)  salespeople wearing Best Buy uniforms with products in backpacks
E)  free-standing kiosks staffed with knowledgeable sales personnelF) None of the above
G) B) and E)

Exam 13: Retailing and Wholesaling

Cash and carry wholesalers refer to wholesalers who

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Growth in the direct-selling industry is the result of two trends: (1) there is a growing number of companies that are using direct selling to reach consumers who prefer one-on-one customer service and a social shopping experience rather than online shipping or big discount stores and (2)

Correct AnswerverifiedShow Answer

Unlike merchant wholesalers, agents, and brokers, manufacturers' branches and sales offices are __________ that perform wholesaling activities.

Correct AnswerverifiedShow Answer

One of the biggest problems online retailers face is that nearly two-thirds of online shoppers make it to "checkout" and then leave the website to compare shipping costs and prices on other sites. Of the shoppers who leave, __________ do not return.

Correct AnswerverifiedShow Answer

Retail outlets, like products, experience the process of growth and decline, which is referred to as the

Correct AnswerverifiedShow Answer

-According to Figure 13-5 above, B represents which stage of the retail life cycle?

Correct AnswerverifiedShow Answer

When retailers set prices on new models or styles of products, the price of existing models often is __________ to quickly sell them.

Correct AnswerverifiedShow Answer

At which level of service would the customer perform the least number of functions?

Correct AnswerverifiedShow Answer

Drop shippers

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A maintained markup refers to

Correct AnswerverifiedShow Answer

Briefly describe the advantages to the retailer and to the customer of the independent retailer.

Correct AnswerverifiedAdvantages to the retailer inc...View AnswerShow Answer

Another term for gross margin is __________.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Experts suggest that online retailers should think of their websites as __________ if they are to attract and retain customers.

Correct AnswerverifiedShow Answer

The key goal for retailers in the accelerated development phase of the retail life cycle is to

Correct AnswerverifiedShow Answer

-Outlets such as the In-N-Out Restaurant (see the photo above) , typically enter the wheel of retailing with

Correct AnswerverifiedShow Answer

The amount added to the cost the retailer paid for a product to reach the final selling price is referred to as a(n) __________.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Franchising is a type of __________.

Correct AnswerverifiedShow Answer

Vending machines are no longer limited by the need for cash. In Japan, South Korea, and the Philippines, consumers use mobile phones that transmit payments to vending machines wirelessly. This is an example of how vending machines can provide which type of utility?

Correct AnswerverifiedShow Answer

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Advantages to the retailer inc...
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