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-leader

Question 2

The three key methods of classifying retail operations are

Accepted Answer

A)  method of operation, revenues generated, and merchandise line.
B)  form of ownership, method of operation, and merchandise line.
C)  form of ownership, level of service, and merchandise line.
D)  level of service, merchandise line, and revenues generated.
E)  merchandise line, form of ownership, and revenues generated.

Question 3

The value added dimension of the retail positioning matrix includes elements such as location, product reliability, and

Accepted Answer

A)  prestige.
B)  price.
C)  market share.
D)  number of employees.
E)  level of service.

Question 4

Which form of retail outlet would most likely offer customers convenience, quality personal service, and lifestyle compatibility?

Accepted Answer

A)  corporate chain
B)  independent retailer
C)  administered system
D)  contractual system
E)  sole incorporation

Question 5

All of the following are reasons direct-mail and catalog retailing are attractive except

Accepted Answer

A)  they can create customer value by providing a fast and convenient means of making a purchase.
B)  they can serve as a tool to encourage consumers to visit a website, a social media page, or even a store.
C)  their paper costs and postal rates have declined, making them less expensive to send.
D)  they can eliminate the cost of a store and clerks.
E)  they can improve marketing efficiency through segmentation and targeting.

Question 6

Which of the following statements about outlet stores is false?

Accepted Answer

A)  Outlets allow retailers to sell excess merchandise and still maintain an image of offering merchandise at full price in their primary store.
B)  The recessionary economic climate has increased demand for this type of off-price retailing.
C)  Increasingly, retailers are offering merchandise made expressly for the outlet division.
D)  Manufacturers use outlet stores to clear excess merchandise.
E)  Outlet stores attract customers who want a "corner store" environment.

Question 7

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 entertainment

Question 8

Explain the dimensions of the retail positioning matrix, and give an example of a store that would be located in each quadrant of the matrix.

Accepted Answer

The retail positioning matrix is a matri...

Question 9

Staples is a specialty discount retailer that focuses on one type of product-office supplies. Staples is an example of a

Accepted Answer

A)  hypermarket.
B)  superstore.
C)  category killer.
D)  department store.
E)  focused merchandise stores.

Question 10

Which type of outlet is most likely in its maturity stage of the retail life cycle?

Accepted Answer

A)  single-price stores
B)  value retail centers
C)  online retailers
D)  business-district retailers
E)  convenience stores

Question 11

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-service

Question 12

The largest inventory of wedding dresses in the Southeast can be found at Low's Bridal and Formal in Brinkley, Arkansas. From December 26 to January 16, a prospective bride shopping at Low's can find gowns once priced at $6,000 for $2,999 and $800 gowns for $399. The reduced prices of these gowns are reflected in which retail pricing strategy?

Accepted Answer

A)  markdowns
B)  original markups
C)  future markups
D)  inventory shrinkages
E)  net markups

Question 13

Most stores today are near several others in one of five settings: the central business district, the community shopping center, the regional shopping center, the power center, or the

Accepted Answer

A)  suburban downtown.
B)  strip mall.
C)  exurb value center.
D)  rural micromall.
E)  urban megacenter.

Question 14

A limited-service wholesaler that performs all channel functions and sells on consignment to retailers, which means it retains the title to the products displayed and bills retailers only for the merchandise sold, is a

Accepted Answer

A)  truck jobber.
B)  transport vendor.
C)  rack jobber.
D)  cash and carry wholesaler.
E)  drop shipper.

Question 15

Many fast-food retailers, including McDonald's and Burger King, have followed a predictable pattern of how new forms of retail outlets enter the marketplace. McDonald's has evolved from a relatively simple restaurant with low margins, low prices, limited product offerings, and low institutional status to a worldwide chain with higher margins, high status, and a diverse menu of products. This evolution of McDonald's restaurants is consistent with the

Accepted Answer

A)  slow to fast-food restaurant evolutionary cycle.
B)  revolution of retailing.
C)  retail life cycle.
D)  fast-food retail sequence.
E)  wheel of retailing.

Question 16

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.

Question 17

Retailers that advocate an everyday fair pricing strategy may not offer the lowest prices but try to create value for customers. What decision factor becomes important in this situation?

Accepted Answer

A)  brand name of the product
B)  product benefits
C)  convenience
D)  perceived quality
E)  the total buying experience

Question 18

A wholesaler that carries a narrow range of products and performs all channel functions is referred to as a

Accepted Answer

A)  general merchandise wholesaler.
B)  truck jobber.
C)  specialty merchandise wholesaler.
D)  rack jobber.
E)  drop shipper.

Question 19

Some experts suggest that television shopping programs are becoming a modern version of __________ by combining elements of reality TV programs, talk shows, and infomercials.

Accepted Answer

A)  augmented reality
B)  door-to-door retailing
C)  telemarketing
D)  direct-response wholesaling
E)  indirect selling

Question 20

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.

Exam 16: Retailing and Wholesaling

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

Correct Answer
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Correct Answer
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Most stores today are near several others in one of five settings: the central business district, the community shopping center, the regional shopping center, the power center, or the

Correct Answer
verified

Correct Answer
verified

Staples is a specialty discount retailer that focuses on one type of product-office supplies. Staples is an example of a

Correct Answer
verified

A limited-service wholesaler that performs all channel functions and sells on consignment to retailers, which means it retains the title to the products displayed and bills retailers only for the merchandise sold, is a

Correct Answer
verified

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 Answer
verified

Explain the dimensions of the retail positioning matrix, and give an example of a store that would be located in each quadrant of the matrix.

Correct Answer
verified
The retail positioning matrix is a matri...
View Answer

Which type of outlet is most likely in its maturity stage of the retail life cycle?

Correct Answer
verified

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

Correct Answer
verified

Retailers that advocate an everyday fair pricing strategy may not offer the lowest prices but try to create value for customers. What decision factor becomes important in this situation?

Correct Answer
verified

All of the following are reasons direct-mail and catalog retailing are attractive except

Correct Answer
verified

The value added dimension of the retail positioning matrix includes elements such as location, product reliability, and

Correct Answer
verified

Some experts suggest that television shopping programs are becoming a modern version of __________ by combining elements of reality TV programs, talk shows, and infomercials.

Correct Answer
verified

Which of the following statements about outlet stores is false?

Correct Answer
verified

A wholesaler that carries a narrow range of products and performs all channel functions is referred to as a

Correct Answer
verified

The three key methods of classifying retail operations are

Correct Answer
verified

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 Answer
verified

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

Correct Answer
verified

Which form of retail outlet would most likely offer customers convenience, quality personal service, and lifestyle compatibility?

Correct Answer
verified

Exam 16: Retailing and Wholesaling

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

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Most stores today are near several others in one of five settings: the central business district, the community shopping center, the regional shopping center, the power center, or the

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Staples is a specialty discount retailer that focuses on one type of product-office supplies. Staples is an example of a

Correct AnswerverifiedShow Answer

A limited-service wholesaler that performs all channel functions and sells on consignment to retailers, which means it retains the title to the products displayed and bills retailers only for the merchandise sold, is a

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

Explain the dimensions of the retail positioning matrix, and give an example of a store that would be located in each quadrant of the matrix.

Correct AnswerverifiedThe retail positioning matrix is a matri...View AnswerShow Answer

Which type of outlet is most likely in its maturity stage of the retail life cycle?

Correct AnswerverifiedShow Answer

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

Retailers that advocate an everyday fair pricing strategy may not offer the lowest prices but try to create value for customers. What decision factor becomes important in this situation?

Correct AnswerverifiedShow Answer

All of the following are reasons direct-mail and catalog retailing are attractive except

Correct AnswerverifiedShow Answer

The value added dimension of the retail positioning matrix includes elements such as location, product reliability, and

Correct AnswerverifiedShow Answer

Some experts suggest that television shopping programs are becoming a modern version of __________ by combining elements of reality TV programs, talk shows, and infomercials.

Correct AnswerverifiedShow Answer

Which of the following statements about outlet stores is false?

Correct AnswerverifiedShow Answer

A wholesaler that carries a narrow range of products and performs all channel functions is referred to as a

Correct AnswerverifiedShow Answer

The three key methods of classifying retail operations are

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

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

Correct AnswerverifiedShow Answer

Which form of retail outlet would most likely offer customers convenience, quality personal service, and lifestyle compatibility?

Correct AnswerverifiedShow Answer

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verified
The retail positioning matrix is a matri...
View Answer

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verified

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