Question 1

Which of the following is a commonly used method of retail outlet classification?

Accepted Answer

A)  service versus product
B)  form of ownership
C)  proportion of national versus private label brands carried
D)  revenues generated
E)  profitabilityF) B) and E)
G) A) and B)

Question 2

Jane Westerlund owns a small retail picture frame store in a local strip mall. She just bought 10 picture frames from a promising woodworker for $36 each. Based on market conditions, she will sell these for $100 each. Recently, however, sales have been a bit slow. Jane decides to reduce the price for the frames to $80. What is her maintained markup in dollar terms?

Accepted Answer

A)  $100
B)  $20
C)  $44
D)  $64
E)  $0F) C) and D)
G) B) and E)

Question 3

Walmart has developed a sophisticated inventory management and cost control system that allows rapid price changes for each product in the store. The firm also uses technologies such as __________ to improve the quality of information available about products.

Accepted Answer

A)  radio frequency identification
B)  encapsulation techniques
C)  bar code scanners
D)  nanotechnology
E)  cookiesF) A) and D)
G) A) and C)

Question 4

Which of the following is an example of nonstore retailing?

Accepted Answer

A)  hypermarkets
B)  supercenters
C)  shopping centers
D)  vending machines
E)  general merchandise storesF) A) and E)
G) All of the above

Question 5

There are three general forms of retail ownership: contractual system, corporate chain, and

Accepted Answer

A)  dual ownership.
B)  industry consortium.
C)  retailing cooperative.
D)  independent retailer.
E)  multinational cartel.F) B) and E)
G) C) and D)

Question 6

During which stage of the retail life cycle do companies establish multiple outlets?

Accepted Answer

A)  decline
B)  maturity
C)  accelerated development
D)  introduction
E)  early growthF) B) and D)
G) B) and C)

Question 7

The most common form of retail ownership is the

Accepted Answer

A)  corporate chain model.
B)  consumer cooperative model.
C)  contractual system of group shareholdings.
D)  independent retailer owned by an individual.
E)  administered systems chain.F) A) and D)
G) None of the above

Question 8

Not every suburban store is located in a shopping mall. Many neighborhoods have clusters of stores, referred to as a strip mall, to serve people who are within a 5- to 10-minute drive. Unlike the larger shopping centers, the composition of these stores usually

Accepted Answer

A)  is unplanned.
B)  includes national anchor stores.
C)  is restricted to privately owned specialty stores.
D)  is mainly fast-food restaurants.
E)  includes amusement or theme parks.F) D) and E)
G) B) and C)

Question 9

A retail location that typically has one primary store (usually a department store branch)  with 20 to 40 smaller outlets serving a population of consumers who are within a 10- to 20-minute drive is referred to as

Accepted Answer

A)  a power center.
B)  a regional shopping center.
C)  a community shopping center.
D)  a central business district.
E)  an urban megacenter.F) B) and D)
G) D) and E)

Question 10

Retailers that utilize and integrate a combination of traditional store formats and nonstore formats are referred to as

Accepted Answer

A)  multichannel retailers.
B)  scrambled merchandisers.
C)  mixed-brand retailers.
D)  dual distribution retailers.
E)  mixed-channel retailers.F) C) and D)
G) A) and E)

Question 11

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) A) and B)
G) None of the above

Question 12

There are three general forms of retail ownership: contractual system, independent retailer, and

Accepted Answer

A)  dual ownership.
B)  industry consortium.
C)  retailing cooperative.
D)  multinational cartel.
E)  corporate chain.F) A) and B)
G) A) and C)

Question 13

To continue to be successful, Mall of America must

Accepted Answer

A)  focus mostly on attracting suitable employees.
B)  keep a huge and diverse portfolio of retailers and attractions in the mall.
C)  refine and focus the retail mix to create a more consistent purchasing experience.
D)  promote its location as a key feature.
E)  reduce the variety of retailers to contain the costs of appealing to a wide range of customers.F) All of the above
G) A) and E)

Question 14

A manufacturer's branch office

Accepted Answer

A)  carries a producer's inventory and performs the functions of a full-service wholesaler.
B)  performs a sales function as an option to agents and brokers.
C)  works for several producers and carries noncompetitive, complementary merchandise in an exclusive territory.
D)  takes title to merchandise but sells only to buyers that call on them, pay cash for merchandise, and furnish their own transportation for the merchandise.
E)  brings buyers and sellers together to make sales.F) A) and C)
G) B) and D)

Question 15

Explain how the wheel of retailing works.

Accepted Answer

The wheel of retailing describes how new...

Question 16

The four utilities offered to consumers through retailing are

Accepted Answer

A)  convenience, performance, possession, and form.
B)  time, place, possession, and form.
C)  product, price, place, and promotion.
D)  people, productivity, process, and physical environment.
E)  convenience, consistency, competition, and choice.F) A) and D)
G) B) and E)

Question 17

Regional shopping center refers to a

Accepted Answer

A)  retail cluster in a downtown area.
B)  retail location that typically has one primary store and about 20 to 40 smaller outlets, and serves a population base of about 100,000.
C)  cluster of stores that serves people who are within a 5- to 10-minute drive and serves a population base of under 30,000.
D)  group of 50 to 150 stores that typically attracts customers who live or work within a 5- to 10-mile range, often containing two or three anchor stores.
E)  retail cluster of stores in uptown areas.F) None of the above
G) A) and B)

Question 18

Consumers benefit in dealing with retail corporate chains because

Accepted Answer

A)  corporate chains have more experience than other forms of retailers.
B)  they can own stock in the same company where they shop since corporate chain stock must be publicly traded.
C)  they can establish a credit history more easily than with other forms of retailers.
D)  there are multiple outlets with similar merchandise and consistent management policies.
E)  they have less stress in making decisions since merchandise is arranged and displayed by professional designers.F) B) and E)
G) A) and B)

Question 19

Markdown refers to

Accepted Answer

A)  the difference between the final selling price and the retailer's cost.
B)  the amount the manufacturer adds to achieve the desired suggested retail price.
C)  discounting a product when it does not sell at the original price and an adjustment is necessary.
D)  the lowest price to which a retailer can reduce a sales ticket and still make a profit.
E)  the net margin.F) B) and E)
G) C) and D)

Question 20

The amount added to the cost the retailer paid for a product to reach the final selling price is referred to as

Accepted Answer

A)  a markup.
B)  a markdown.
C)  an original markup.
D)  a maintained markup.
E)  a cost-plus markup.F) A) and B)
G) D) and E)

Exam 16: Retailing and Wholesaling

A manufacturer's branch office

Correct Answer
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Explain how the wheel of retailing works.

Correct Answer
verified
The wheel of retailing describes how new...
View Answer

The four utilities offered to consumers through retailing are

Correct Answer
verified

Retailers that utilize and integrate a combination of traditional store formats and nonstore formats are referred to as

Correct Answer
verified

The amount added to the cost the retailer paid for a product to reach the final selling price is referred to as

Correct Answer
verified

Markdown refers to

Correct Answer
verified

Consumers benefit in dealing with retail corporate chains because

Correct Answer
verified

The most common form of retail ownership is the

Correct Answer
verified

Regional shopping center refers to a

Correct Answer
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During which stage of the retail life cycle do companies establish multiple outlets?

Correct Answer
verified

A retail location that typically has one primary store (usually a department store branch) with 20 to 40 smaller outlets serving a population of consumers who are within a 10- to 20-minute drive is referred to as

Correct Answer
verified

Not every suburban store is located in a shopping mall. Many neighborhoods have clusters of stores, referred to as a strip mall, to serve people who are within a 5- to 10-minute drive. Unlike the larger shopping centers, the composition of these stores usually

Correct Answer
verified

Which of the following is a commonly used method of retail outlet classification?

Correct Answer
verified

There are three general forms of retail ownership: contractual system, corporate chain, and

Correct Answer
verified

Walmart has developed a sophisticated inventory management and cost control system that allows rapid price changes for each product in the store. The firm also uses technologies such as __________ to improve the quality of information available about products.

Correct Answer
verified

There are three general forms of retail ownership: contractual system, independent retailer, and

Correct Answer
verified

Correct Answer
verified

Which of the following is an example of nonstore retailing?

Correct Answer
verified

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

Correct Answer
verified

To continue to be successful, Mall of America must

Correct Answer
verified

Exam 16: Retailing and Wholesaling

A manufacturer's branch office

Correct AnswerverifiedShow Answer

Explain how the wheel of retailing works.

Correct AnswerverifiedThe wheel of retailing describes how new...View AnswerShow Answer

The four utilities offered to consumers through retailing are

Correct AnswerverifiedShow Answer

Retailers that utilize and integrate a combination of traditional store formats and nonstore formats are referred to as

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

Correct AnswerverifiedShow Answer

Markdown refers to

Correct AnswerverifiedShow Answer

Consumers benefit in dealing with retail corporate chains because

Correct AnswerverifiedShow Answer

The most common form of retail ownership is the

Correct AnswerverifiedShow Answer

Regional shopping center refers to a

Correct AnswerverifiedShow Answer

During which stage of the retail life cycle do companies establish multiple outlets?

Correct AnswerverifiedShow Answer

A retail location that typically has one primary store (usually a department store branch) with 20 to 40 smaller outlets serving a population of consumers who are within a 10- to 20-minute drive is referred to as

Correct AnswerverifiedShow Answer

Not every suburban store is located in a shopping mall. Many neighborhoods have clusters of stores, referred to as a strip mall, to serve people who are within a 5- to 10-minute drive. Unlike the larger shopping centers, the composition of these stores usually

Correct AnswerverifiedShow Answer

Which of the following is a commonly used method of retail outlet classification?

Correct AnswerverifiedShow Answer

There are three general forms of retail ownership: contractual system, corporate chain, and

Correct AnswerverifiedShow Answer

Walmart has developed a sophisticated inventory management and cost control system that allows rapid price changes for each product in the store. The firm also uses technologies such as __________ to improve the quality of information available about products.

Correct AnswerverifiedShow Answer

There are three general forms of retail ownership: contractual system, independent retailer, and

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Which of the following is an example of nonstore retailing?

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

To continue to be successful, Mall of America must

Correct AnswerverifiedShow Answer

Correct Answer
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Correct Answer
verified
The wheel of retailing describes how new...
View Answer

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