Question 1

Neighborhood grocers that work together with several other independent grocers that all agree to buy their goods directly from food manufacturers is

Accepted Answer

A)  a retailer-sponsored cooperative.
B)  a consortium system.
C)  an administrative system.
D)  a conglomerate system.
E)  a contractual horizontal marketing system.F) C) and D)
G) B) and E)

Question 2

Merchant wholesalers are independently owned firms that __________ the merchandise they handle.

Accepted Answer

A)  take title to
B)  broker
C)  act as agents for
D)  break bulk and repackage
E)  do not deliverF) B) and D)
G) A) and B)

Question 3

Loblaws, a Canadian supermarket, features fruits and vegetables piled high on tables that have umbrellas. The idea behind this arrangement was to give Loblaws "a market feel." In terms of the retailing mix, this tactic is related to

Accepted Answer

A)  pricing.
B)  goods and services factor.
C)  communication.
D)  merchandise.
E)  location.F) A) and E)
G) C) and D)

Question 4

What is category management and when is it used?

Accepted Answer

Category management is used to manage th...

Question 5

McDonald's, 7-Eleven, and Subway are examples of

Accepted Answer

A)  product-distribution franchises.
B)  business franchise venture.
C)  business-format franchises.
D)  manufacturing franchises.
E)  general service franchise.F) B) and E)
G) None of the above

Question 6

Manufacturers' agent refers to agents who

Accepted Answer

A)  represent a single producer and carry all products in the producer's lines.
B)  work for several producers and carry noncompetitive, complementary merchandise in an exclusive territory.
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)  own the merchandise they sell but do not physically handle, stock, or deliver it.
E)  furnish the racks or shelves that display merchandise in retail stores, perform all channel functions, and sell on consignment to retailers.F) None of the above
G) A) and C)

Question 7

Intertype competition refers to competition between

Accepted Answer

A)  very similar types of retail outlets that results from a single-product/single-line merchandising policy.
B)  retailers when the types of items they sell are virtually indistinguishable from one another.
C)  national and generic brands that are sold side by side in a retail outlet.
D)  retailers located in separate quadrants of the retail positioning matrix.
E)  very dissimilar types of retail outlets that practice scrambled merchandising.F) A) and D)
G) B) and E)

Question 8

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)  the latter can bargain with a manufacturer to obtain product volume discounts on orders, which can be passed on to consumers in terms of lower prices.
D)  there are multiple outlets, each with its own varied merchandise and different management policies.
E)  merchandise is arranged and displayed by professional designers making their shopping experience less stressful.F) A) and B)
G) C) and E)

Question 9

The degree of service provided to the customer from self-, limited-, and full-service retailers is referred to as

Accepted Answer

A)  involvement.
B)  level of service.
C)  service commitment.
D)  customer obligation.
E)  degree of commitment.F) A) and E)
G) A) and D)

Question 10

A financial indicator used to compare the increase in sales of stores that have been open for the same period of time is referred to as

Accepted Answer

A)  return in investment.
B)  percentage of markup.
C)  gross profit.
D)  sales per square foot.
E)  same-store sales growth.F) A) and B)
G) A) and D)

Question 11

A unique broker that acts in many ways like a manufacturer's agent is a food broker, representing buyers and sellers in the grocery industry. Food brokers differ from conventional brokers because they act on behalf of producers on a permanent basis and

Accepted Answer

A)  receive a commission for their services.
B)  are paid a flat fee for each time the shelves are stocked.
C)  are paid by both the buyer and seller separately depending upon the size of the order.
D)  are paid a commission by the buyer and a bonus by the seller.
E)  are paid a flat fee by both the buyer and seller, but receive a bonus based upon the percentage of increased sales by quarter.F) A) and B)
G) B) and D)

Question 12

The __________ is a financial term that measures the dollars added to the cost the retailer paid for a product to arrive at the initial selling price.

Accepted Answer

A)  maintained markup
B)  original markup
C)  return on investment
D)  markup
E)  markdownF) B) and C)
G) B) and D)

Question 13

What is off-price retailing? Identify and give an example of the three variations of off-price retailing.

Accepted Answer

Off-price retailing involves selling bra...

Question 14

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

Accepted Answer

Retailing is an important marketing acti...

Question 15

Merchants such as Burlington Coat Factory sell brand-name merchandise at lower than regular prices. This means that it is using

Accepted Answer

A)  an off-price retailing strategy.
B)  a markdown pricing strategy.
C)  an everyday fair pricing strategy.
D)  an everyday low pricing strategy.
E)  a maintained markdown pricing strategy.F) D) and E)
G) C) and E)

Question 16

The 4.8 million vending machines currently operating in the United States generate more than __________ in annual sales.

Accepted Answer

A)  $359 million
B)  $985 million
C)  $3.8 billion
D)  $19.5 billion
E)  $46 billionF) B) and D)
G) B) and E)

Question 17

Prices in vending machines tend to be higher because

Accepted Answer

A)  machines are placed in low-demand traffic areas.
B)  maintenance, operating, and leasing costs are high.
C)  only small unit volume items are sold.
D)  customary pricing requires certain coin and currency amounts regardless of the normal retailer markup.
E)  few people buy from vending machines.F) All of the above
G) A) and E)

Question 18

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

Question 19

A variation of off-price retailing includes

Accepted Answer

A)  discount wholesalers.
B)  outlet stores.
C)  discount retailers.
D)  supercenters.
E)  hypermarkets.F) A) and D)
G) B) and D)

Question 20

A __________ most likely would use truck jobbers to distribute its products.

Accepted Answer

A)  clothing manufacturer
B)  manufacturer of electric generators
C)  leather goods importer
D)  pharmaceutical company
E)  meat processing plantF) B) and E)
G) A) and B)

Exam 16: Retailing and Wholesaling

A variation of off-price retailing includes

Correct AnswerverifiedShow Answer

Neighborhood grocers that work together with several other independent grocers that all agree to buy their goods directly from food manufacturers is

Correct AnswerverifiedShow Answer

Prices in vending machines tend to be higher because

Correct AnswerverifiedShow Answer

The __________ is a financial term that measures the dollars added to the cost the retailer paid for a product to arrive at the initial selling price.

Correct AnswerverifiedShow Answer

A financial indicator used to compare the increase in sales of stores that have been open for the same period of time is referred to as

Correct AnswerverifiedShow Answer

The degree of service provided to the customer from self-, limited-, and full-service retailers is referred to as

Correct AnswerverifiedShow Answer

What is category management and when is it used?

Correct AnswerverifiedCategory management is used to manage th...View AnswerShow Answer

Intertype competition refers to competition between

Correct AnswerverifiedShow Answer

What is off-price retailing? Identify and give an example of the three variations of off-price retailing.

Correct AnswerverifiedOff-price retailing involves selling bra...View AnswerShow 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

Loblaws, a Canadian supermarket, features fruits and vegetables piled high on tables that have umbrellas. The idea behind this arrangement was to give Loblaws "a market feel." In terms of the retailing mix, this tactic is related to

Correct AnswerverifiedShow Answer

Manufacturers' agent refers to agents who

Correct AnswerverifiedShow Answer

The 4.8 million vending machines currently operating in the United States generate more than __________ in annual sales.

Correct AnswerverifiedShow Answer

A __________ most likely would use truck jobbers to distribute its products.

Correct AnswerverifiedShow Answer

Merchant wholesalers are independently owned firms that __________ the merchandise they handle.

Correct AnswerverifiedShow Answer

Merchants such as Burlington Coat Factory sell brand-name merchandise at lower than regular prices. This means that it is using

Correct AnswerverifiedShow Answer

A unique broker that acts in many ways like a manufacturer's agent is a food broker, representing buyers and sellers in the grocery industry. Food brokers differ from conventional brokers because they act on behalf of producers on a permanent basis and

Correct AnswerverifiedShow Answer

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

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

Consumers benefit in dealing with retail corporate chains because

Correct AnswerverifiedShow Answer

McDonald's, 7-Eleven, and Subway are examples of

Correct AnswerverifiedShow Answer

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Category management is used to manage th...
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Correct Answer
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Off-price retailing involves selling bra...
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Retailing is an important marketing acti...
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Correct Answer
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Correct Answer
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