Question 1

Another name for a drop shipper is a

Accepted Answer

A)  drop runner.
B)  desk jobber.
C)  transport vendor.
D)  container transport vendor.
E)  stock jobber.F) A) and D)
G) C) and E)

Question 2

Aeon, Carrefour, Tesco, and Metro Group are

Accepted Answer

A)  sizable wholesalers that handle products for the world's largest retailers.
B)  new Internet start-ups that have the potential to impact the U.S. economy.
C)  large retailers outside of the United States.
D)  large distributors of business products.
E)  historic companies that developed consumer selling systems, though none of them exist today.F) B) and D)
G) B) and E)

Question 3

An approach to managing the assortment of merchandise in which a manager is assigned the responsibility for selecting all products that consumers in a market segment might view as substitutes for each other, with the objective of maximizing sales and profits in the category, is referred to as

Accepted Answer

A)  category capacity.
B)  product management.
C)  retail inventory category.
D)  category management.
E)  automated inventory control.F) D) and E)
G) B) and E)

Question 4

Scrambled merchandising refers to

Accepted Answer

A)  displaying merchandise throughout a store rather than keeping all similar items together in rows on a shelf or point-of-purchase displays.
B)  offering several unrelated product lines in a single store.
C)  changing the position in which items are displayed in a store to create customer interest in a variety of product lines.
D)  offering several related product lines in multiple stores.
E)  offering several related product lines in a single store.F) A) and B)
G) B) and D)

Question 5

As 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) All of the above
G) D) and E)

Question 6

__________ exists if multiple retail channels become complementary through a series of touch points with consumers.

Accepted Answer

A)  Multiretail marketing
B)  Shopper marketing
C)  Omnichannel retailing
D)  Retail positioning
E)  The wheel of retailingF) C) and D)
G) D) and E)

Question 7

Another term for maintained markup is

Accepted Answer

A)  original markup.
B)  maintained markup.
C)  markdown.
D)  gross margin.
E)  net margin.F) A) and B)
G) All of the above

Question 8

A number of U.S.-based retail chains use special checkout lanes and terminals instead of clerks. This is an example of what level of service?

Accepted Answer

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

Question 9

All activities involved in selling, renting, and providing products and services to ultimate consumers for personal, family, or household use are referred to as

Accepted Answer

A)  manufacturing.
B)  retailing.
C)  wholesaling.
D)  facilitating.
E)  logistics.F) B) and C)
G) C) and D)

Question 10

Online retail purchases by consumers can be the result of several very different approaches, including (1)  using a shopping "bot" to search for a product at locations with the best price, (2)  participating in an online auction, (3)  going directly to online malls, and (4)  __________.

Accepted Answer

A)  paying dues to become a member of an online discount service
B)  becoming a secret shopper
C)  participating in a buying cooperative
D)  using direct selling
E)  becoming a member of a research group that evaluates new productsF) A) and E)
G) A) and D)

Question 11

Retailing mix refers to the activities related to managing the store and the merchandise in the store, which includes

Accepted Answer

A)  product, price, promotion, and place.
B)  the four utilities of time, form, possession, and place.
C)  the colors, sizes, shapes, and perceived value of the store's products.
D)  retail pricing, store location, retail communication, and merchandise.
E)  selection of store location, selection of merchandise, hiring and training of employees, and promotion of both the store and products.F) C) and E)
G) D) and E)

Question 12

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

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 an actual "brick" retail store 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) D) and E)
G) A) and B)

Question 13

The greatest dollar amount of retail sales in the United States is generated by

Accepted Answer

A)  food and beverage stores.
B)  sporting goods, books, and music stores.
C)  electronic stores.
D)  automotive dealers.
E)  furniture and home furnishing stores.F) C) and D)
G) B) and C)

Question 14

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 that 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) D) and E)
G) B) and C)

Question 15

A form of ownership that involves multiple outlets under common ownership is referred to as

Accepted Answer

A)  a corporate chain.
B)  a consumer cooperative.
C)  a contractual system.
D)  an independent retailer.
E)  an administered system.F) C) and D)
G) A) and D)

Question 16

Bakery items, dairy products, and meat that are sold for cash in their original packages are traditionally sold by which type of wholesaler?

Accepted Answer

A)  rack jobbers
B)  drop shippers
C)  cash and carry wholesalers
D)  truck jobbers
E)  general merchandise wholesalersF) D) and E)
G) A) and D)

Question 17

Specialty stores and department stores, which provide many services to their customers, are frequently categorized by which level of service?

Accepted Answer

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

Question 18

The three commonly used terms to describe levels of service are

Accepted Answer

A)  self-service, limited-service, and full-service.
B)  retailer-service, sales-service, and customer-service.
C)  self-service, automated-service, and online-service.
D)  limited-service, full-service, and automated-service.
E)  wholesaler-service, retailer-service, and customer-service.F) None of the above
G) A) and B)

Question 19

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

Accepted Answer

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

Question 20

The average U.S. household now receives __________ direct-mail items or catalogs each week.

Accepted Answer

A)  18
B)  24
C)  34
D)  39
E)  29F) A) and B)
G) A) and D)

Exam 16: Retailing and Wholesaling

Bakery items, dairy products, and meat that are sold for cash in their original packages are traditionally sold by which type of wholesaler?

Correct AnswerverifiedShow Answer

The average U.S. household now receives __________ direct-mail items or catalogs each week.

Correct AnswerverifiedShow Answer

All activities involved in selling, renting, and providing products and services to ultimate consumers for personal, family, or household use are referred to as

Correct AnswerverifiedShow Answer

The three commonly used terms to describe levels of service are

Correct AnswerverifiedShow Answer

Another term for maintained markup is

Correct AnswerverifiedShow Answer

Retailing mix refers to the activities related to managing the store and the merchandise in the store, which includes

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Specialty stores and department stores, which provide many services to their customers, are frequently categorized by which level of service?

Correct AnswerverifiedShow Answer

An approach to managing the assortment of merchandise in which a manager is assigned the responsibility for selecting all products that consumers in a market segment might view as substitutes for each other, with the objective of maximizing sales and profits in the category, is referred to as

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Aeon, Carrefour, Tesco, and Metro Group are

Correct AnswerverifiedShow Answer

Online retail purchases by consumers can be the result of several very different approaches, including (1) using a shopping "bot" to search for a product at locations with the best price, (2) participating in an online auction, (3) going directly to online malls, and (4) __________.

Correct AnswerverifiedShow Answer

Scrambled merchandising refers to

Correct AnswerverifiedShow Answer

A form of ownership that involves multiple outlets under common ownership is referred to as

Correct AnswerverifiedShow Answer

The greatest dollar amount of retail sales in the United States is generated by

Correct AnswerverifiedShow Answer

Drop shippers

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

A number of U.S.-based retail chains use special checkout lanes and terminals instead of clerks. This is an example of what level of service?

Correct AnswerverifiedShow Answer

__________ exists if multiple retail channels become complementary through a series of touch points with consumers.

Correct AnswerverifiedShow Answer

Another name for a drop shipper is a

Correct AnswerverifiedShow Answer

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