Question 1

Franchising is attractive for the franchisee because

Accepted Answer

A)   it gives the franchisee complete control over the delivery and presentation of merchandise.
B)   the license fees paid to the franchisor are the only fees the franchisee pays.
C)   it relieves the franchisee from any company or product liabilities.
D)   it offers the franchisee the opportunity to enter into a well-known, established business where managerial advice is provided.
E)   the franchisee is completely his or her own boss.F) All of the above
G) A) and B)

Question 2

Fresh-cut flowers that were once only available from florists can now be purchased at neighborhood supermarkets. This is an example of

Accepted Answer

A)   dysfunctional competition.
B)   mixed-line merchandising.
C)   multi-product marketing.
D)   intertype competition.
E)   dual distribution.F) A) and B)
G) D) and E)

Question 3

The ability to shop over the Internet 24 hours a day, seven days a week, provides consumers with ________ utility.

Accepted Answer

A)   form
B)   time
C)   convenience
D)   possession
E)   performanceF) C) and E)
G) B) and D)

Question 4

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-serviceF) None of the above
G) A) and C)

Question 5

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) All of the above

Question 6

What type of contractual system describes a situation in which assistance in selecting the location, setting up the store or facility, advertising, and training personnel is provided by the parent company?

Accepted Answer

A)   administered system
B)   conglomerate system
C)   franchise system
D)   vertical integrated system
E)   retail-sponsored cooperativeF) A) and C)
G) C) and D)

Question 7

Godiva Chocolatier invites consumers to stop by one of its stores for an unforgettable experience, including delectable chocolates, decorative gift collections, and unrivaled customer care. What type of retail service is Godiva offering?

Accepted Answer

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

Question 8

The music played in the grocery store has a slow tempo to get shoppers to stay longer and hopefully put more items in their cart. Music is part of the grocery store's

Accepted Answer

A)   atmosphere.
B)   sensory management plan.
C)   psychological attributes.
D)   personality type.
E)   sociological profile.F) B) and D)
G) B) and C)

Question 9

Figure 16-8
-Which of these retailers would best fit in quadrant D shown in the retail positioning matrix, Figure 16-8 above?

Accepted Answer

A)   Walmart
B)   Dillard's department store
C)   7-Eleven convenience store
D)   DSW shoe store
E)   Tiffany & Co.F) A) and B)
G) A) and E)

Question 10

A wholly owned extension of the producer 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 wholesaler.
C)   manufacturer's sales office.
D)   manufacturer's branch office.
E)   merchant wholesaler.F) A) and E)
G) B) and D)

Question 11

One way neighborhood grocers can take advantage of volume discounts commonly available to corporate chains is to

Accepted Answer

A)   purchase a franchise membership.
B)   become a subsidiary of a larger supermarket chain such as Kroger.
C)   join a professional merchant association and hire food brokers to negotiate lower prices for produce and dry goods.
D)   create a grocery networking system to exchange coupon vouchers.
E)   participate in a retailer-sponsored cooperative with other independent grocers.F) B) and C)
G) C) and D)

Question 12

Higher paper costs, increased postage rates, the growing interest in do-not-mail legislation, and concern for "green" mailings have resulted in

Accepted Answer

A)   a switch to online catalogs and direct-to-customer e-mail advertisements.
B)   the use of thinner, lightweight paper products.
C)   a focus on proven customers or specialty catalogs for market niches.
D)   the banning of "junk" mail by a growing number of environmentally concerned communities.
E)   a resurgence in nonautomated telemarketing.F) All of the above
G) None of the above

Question 13

What is the retailing mix?

Accepted Answer

In developing retailing strategy, manage...

Question 14

Growth in the direct-selling industry is the result of two developments: direct-selling retailers have expanded 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.F) B) and C)
G) A) and E)

Question 15

The sales of products and services to consumers through personal interactions and demonstrations in their homes or offices is referred to as

Accepted Answer

A)   direct selling.
B)   person-to-person sales.
C)   face-to-face selling.
D)   direct-response selling.
E)   customized selling.F) A) and B)
G) All of the above

Question 16

The marketing metrics related to a retailer's customers include all of these except which?

Accepted Answer

A)   the number of customers per day or per hour
B)   the average length of a store visit
C)   markdown percentage
D)   the average transaction size per customer
E)   the number of transactions per customerF) A) and C)
G) A) and B)

Question 17

________ carries 3,700 to 8,000 items and usually stocks just one brand of appliance or food product.

Accepted Answer

A)   A warehouse club
B)   A single-price retailer
C)   An extreme value retailer
D)   A hypermarket
E)   A supercenterF) A) and B)
G) A) and C)

Question 18

What is the value of retailing for consumers and the economy?

Accepted Answer

Retailing is an important marketing acti...

Question 19

The retail positioning matrix is an analytical tool that

Accepted Answer

A)   positions retail outlets in terms of the breadth of product line and value added.
B)   identifies the best location for building or leasing a retail store.
C)   identifies the specific customer base served by all stores within a given radius.
D)   identifies the most likely target market for a retail outlet based upon its size.
E)   identifies the elements of the retailing mix.F) B) and C)
G) B) and E)

Question 20

In the past, television home shopping programs have attracted mostly

Accepted Answer

A)   18- to 34-year-old men.
B)   25- to 34-year-old women.
C)   35- to 54-year-old men.
D)   35- to 64-year-old women.
E)   12- to 17-year-old boys.F) B) and C)
G) A) and E)

Exam 16: Retailing and Wholesaling

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

Correct AnswerverifiedShow Answer

Figure 16-8 -Which of these retailers would best fit in quadrant D shown in the retail positioning matrix, Figure 16-8 above?

Correct AnswerverifiedShow Answer

What is the retailing mix?

Correct AnswerverifiedIn developing retailing strategy, manage...View AnswerShow Answer

Higher paper costs, increased postage rates, the growing interest in do-not-mail legislation, and concern for "green" mailings have resulted in

Correct AnswerverifiedShow Answer

________ carries 3,700 to 8,000 items and usually stocks just one brand of appliance or food product.

Correct AnswerverifiedShow Answer

The ability to shop over the Internet 24 hours a day, seven days a week, provides consumers with ________ utility.

Correct AnswerverifiedShow Answer

Growth in the direct-selling industry is the result of two developments: direct-selling retailers have expanded into markets outside the United States, and

Correct AnswerverifiedShow Answer

What type of contractual system describes a situation in which assistance in selecting the location, setting up the store or facility, advertising, and training personnel is provided by the parent company?

Correct AnswerverifiedShow Answer

The music played in the grocery store has a slow tempo to get shoppers to stay longer and hopefully put more items in their cart. Music is part of the grocery store's

Correct AnswerverifiedShow Answer

The marketing metrics related to a retailer's customers include all of these except which?

Correct AnswerverifiedShow Answer

A wholly owned extension of the producer 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

Godiva Chocolatier invites consumers to stop by one of its stores for an unforgettable experience, including delectable chocolates, decorative gift collections, and unrivaled customer care. What type of retail service is Godiva offering?

Correct AnswerverifiedShow Answer

One way neighborhood grocers can take advantage of volume discounts commonly available to corporate chains is to

Correct AnswerverifiedShow Answer

The retail positioning matrix is an analytical tool that

Correct AnswerverifiedShow Answer

What is the value of retailing for consumers and the economy?

Correct AnswerverifiedRetailing is an important marketing acti...View AnswerShow Answer

Fresh-cut flowers that were once only available from florists can now be purchased at neighborhood supermarkets. This is an example of

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

Franchising is attractive for the franchisee because

Correct AnswerverifiedShow Answer

The sales of products and services to consumers through personal interactions and demonstrations in their homes or offices is referred to as

Correct AnswerverifiedShow Answer

In the past, television home shopping programs have attracted mostly

Correct AnswerverifiedShow Answer

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In developing retailing strategy, manage...
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Retailing is an important marketing acti...
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