Question 1

huge shopping strip with multiple anchor (or national) stores is referred to as a __________.

Accepted Answer

A)   central business district
B)   regional shopping center
C)   community shopping center
D)   strip mall
E)   power centerF) A) and D)
G) A) and E)

Question 2

Nordstrom Rack and the Gap Factory Store allow retailers to sell excess merchandise and still maintain an image of offering merchandise at full price in their primary stores.These retailers are referred to as __________.

Accepted Answer

A)   extreme value retailers
B)   warehouse clubs
C)   discount houses
D)   outlet stores
E)   community shopping centersF) All of the above
G) C) and D)

Question 3

_________ distinguishes retail outlets based on whether independent retailers,corporate chains,or contractual systems own the outlet.

Accepted Answer

A)   product involvement
B)   service level
C)   merchandise line
D)   product assortment
E)   form of ownershipF) A) and C)
G) A) and B)

Question 4

Retailing is an important marketing activity.Not only do producers and consumers meet through retailing actions,but retailing also creates __________.

Accepted Answer

A)   the nation's largest source of tax revenues
B)   the largest source of charitable contributions
C)   limited utilities for consumers
D)   customer value
E)   a sense of communityF) A) and D)
G) B) and D)

Question 5

channel intermediary that does not carry inventory,typically performs only a sales function,and is an alternative to agents and brokers is referred to as a __________.

Accepted Answer

A)   brokering agent
B)   cash and carry wholesalers
C)   manufacturer's sales office
D)   manufacturer's branch office
E)   merchant wholesalersF) None of the above
G) A) and E)

Question 6

Loehmann's is an upscale,off-price specialty retailer for name-brand designer fashions.Loehmann's provides consumers with

Accepted Answer

A)   full-service.
B)   limited service.
C)   self- service.
D)   restricted service.
E)   functional service.F) C) and E)
G) B) and E)

Question 7

Wholesalers who take title to merchandise but sell only to buyers who call on them,pay cash for merchandise,and furnish their own transportation for merchandise are referred to as __________.

Accepted Answer

A)   rack jobbers
B)   truck jobbers
C)   transport vendors
D)   cash and carry wholesalers
E)   drop shippersF) All of the above
G) B) and E)

Question 8

Direct selling is likely to continue to have strong growth in markets

Accepted Answer

A)   in which people prefer not to have a social shopping experience.
B)   where convenience is not especially important.
C)   in which consumers are knowledgeable shoppers.
D)   where there is a lack of effective distribution channels.
E)   that have an excellent infrastructure.F) None of the above
G) C) and D)

Question 9

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

Question 10

description of how new retail outlets enter the market is referred to as the __________.

Accepted Answer

A)   retail life cycle
B)   product life cycle
C)   wheel of retailing
D)   retail life matrix
E)   retail continuumF) A) and B)
G) All of the above

Question 11

department store recently replaced its fabric-covered chairs with oversized leather couches.This was most likely done to

Accepted Answer

A)   reduce the need to constantly reupholster.
B)   create a more natural environment.
C)   create a more masculine ambiance for male shoppers.
D)   make mothers shopping with small children less nervous.
E)   encourage customers to linger longer.F) B) and D)
G) B) and C)

Question 12

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) A) and C)
G) A) and E)

Question 13

Wells Fargo is one of the best-run banks in the United States.It reaches retail customers through 9,000 stores,a worldwide network of 12,000 ATMs,and its online banking service.Which utility does Wells Fargo best provide?

Accepted Answer

A)   time
B)   possession
C)   place
D)   form
E)   performanceF) None of the above
G) C) and E)

Question 14

the late 1950s,Pierre Martineau described __________ as "the way in which the store is defined in the shopper's mind."

Accepted Answer

A)   size
B)   location
C)   product mix
D)   image
E)   anchor storeF) A) and E)
G) None of the above

Question 15

of America has verbalized its __________ strategy with the slogan,"A place for fun!"

Accepted Answer

A)   retail mix
B)   wheel of retailing
C)   retail life cycle
D)   distribution
E)   retail positioningF) None of the above
G) C) and D)

Question 16

Which of the following statements regarding direct selling is most accurate?

Accepted Answer

A)   Unlike other forms of nonstore retailing, direct selling takes place in the business market.
B)   Direct selling is found exclusively in the United States.
C)   Direct selling succeeds because it provides customers with convenience and personalized service.
D)   Direct sales have been declining rapidly in the United States since the 1980s.
E)   By definition, direct selling can only take place in a home.F) C) and E)
G) A) and B)

Question 17

limited-service wholesaler who performs all channel functions,and sells on consignment to retailers,which means they retain the title to the products displayed and bill 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 shipperF) B) and C)
G) A) and E)

Question 18

Direct Selling Association reports that the number of companies using direct selling has __________ in the past five years.

Accepted Answer

A)   increased by 10 percent
B)   increased by 30 percent
C)   increased by 50 percent
D)   decreased by 20 percent
E)   decreased by 40 percentF) A) and E)
G) C) and E)

Question 19

There are two general types of franchises:

Accepted Answer

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

Question 20

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

Exam 16: Retailing and Wholesaling

department store recently replaced its fabric-covered chairs with oversized leather couches.This was most likely done to

Correct AnswerverifiedShow Answer

Retailing is an important marketing activity.Not only do producers and consumers meet through retailing actions,but retailing also creates __________.

Correct AnswerverifiedShow Answer

manufacturer's sales office

Correct AnswerverifiedShow Answer

Which of the following statements regarding direct selling is most accurate?

Correct AnswerverifiedShow Answer

description of how new retail outlets enter the market is referred to as the __________.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

the late 1950s,Pierre Martineau described __________ as "the way in which the store is defined in the shopper's mind."

Correct AnswerverifiedShow Answer

Loehmann's is an upscale,off-price specialty retailer for name-brand designer fashions.Loehmann's provides consumers with

Correct AnswerverifiedShow Answer

limited-service wholesaler who performs all channel functions,and sells on consignment to retailers,which means they retain the title to the products displayed and bill retailers only for the merchandise sold is a _________.

Correct AnswerverifiedShow Answer

_________ distinguishes retail outlets based on whether independent retailers,corporate chains,or contractual systems own the outlet.

Correct AnswerverifiedShow Answer

Nordstrom Rack and the Gap Factory Store allow retailers to sell excess merchandise and still maintain an image of offering merchandise at full price in their primary stores.These retailers are referred to as __________.

Correct AnswerverifiedShow Answer

There are two general types of franchises:

Correct AnswerverifiedShow Answer

huge shopping strip with multiple anchor (or national) stores is referred to as a __________.

Correct AnswerverifiedShow Answer

channel intermediary that does not carry inventory,typically performs only a sales function,and is an alternative to agents and brokers is referred to as a __________.

Correct AnswerverifiedShow Answer

of America has verbalized its __________ strategy with the slogan,"A place for fun!"

Correct AnswerverifiedShow Answer

Wholesalers who take title to merchandise but sell only to buyers who call on them,pay cash for merchandise,and furnish their own transportation for merchandise are referred to as __________.

Correct AnswerverifiedShow Answer

Direct selling is likely to continue to have strong growth in markets

Correct AnswerverifiedShow Answer

Wells Fargo is one of the best-run banks in the United States.It reaches retail customers through 9,000 stores,a worldwide network of 12,000 ATMs,and its online banking service.Which utility does Wells Fargo best provide?

Correct AnswerverifiedShow Answer

Direct Selling Association reports that the number of companies using direct selling has __________ in the past five years.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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