MK 3010 - Chapter 12 Practice Quiz

Which of the following is true of a franchise operation? - A franchisor pays commission to the retail franchise holder - A retail franchise holder plans the marketing strategy for the franchisor - A franchise holder needs to strictly follow franchise rules established by the franchisor - A franchise arrangement is free of any contracts - A franchisor benefits from the image established by a retail franchise holder

A franchise holder needs to strictly follow franchise rules established by the franchisor

Which of the following statements about different types of wholesalers is false? - Manufacturers' agents usually represent noncompeting manufacturers - Selling agents almost have complete control of pricing, selling, and advertising - Agent wholesalers generally provide more services than limited-function wholesalers - Brokers usually have a temporary relationship with the buyer and seller - Agent wholesalers are common in international trade

Agent wholesalers generally provide more services than limited-function wholesalers

Franchisors - leave it to retail franchise holders to carry out the strategy in their own units - often help franchise holders by providing purchasing power and promotion support - usually receive fees and commissions from the franchise holder - reduce the risk of starting a new retailing business because a good strategy has already been developed and tested - All of these alternatives are correct for franchisors

All of these alternatives are correct for franchisors

Which of the following statements is true in the context of "differences in retailing in different nations"? - Online shopping behavior is similar considerably across countries - Consumers in less-developed nations often do not have the income to support mass distribution - Online retailing is more popular in emerging markets than in developed nations - Slow growth in their home country prompts most large retail chains to stay out of international markets - New retailing approaches that succeed in one part of the world are often not easily accepted in other countries

Consumers in less-developed nations often do not have the income to support mass distribution

Which of the following statements is not likely to be true of a fast food restaurant franchise? - The franchisor receives sales commissions from individual franchise holders - Each franchise holder is required by its contract to strictly adhere to a set of franchise rules - Retail franchise holders are not responsible for carrying out a marketing strategy - The holders of the individual franchises pay fees to the franchisor - Each franchise holder benefits from the reputation established by the main franchisor

Retail franchise holders are not responsible for carrying out a marketing strategy

Which of the following is the best example of a single-line or limited-line store? - an online grocery store that home delivers - a vending machine that sells upscale items - a local store that carries convenience items - a national chain that sells only athletic footwear - a supercenter that sells homogenous shopping items

a national chain that sells only athletic footwear

Which of the following businesses is least likely to own the products it sells? - a general-line wholesaler for electronics - a merchant wholesaler for building hardware - an auction company specializing in original art - a specialty wholesaler for office supplies - a cash-and-carry wholesaler for manufacturing firms

an auction company specializing in original art

Specialty shops - are also referred to as supercenters - are known for the distinctiveness of their line and the superior services offered - generally use a mass-marketing approach - stock anything that they can sell in a reasonable quantity - carry a broad assortment of products, like department stores

are known for the distinctiveness of their line and the superior services offered

Department stores - have been experiencing a drastic increase in their share of retail business - are usually strong in customer services - offer limited product lines - aim at a carefully defined, small target market - usually cater only to organizational buyers

are usually strong in customer services

Manufacturers' sales branches - have extremely low sales per branch - are warehouses that producers set up at separate locations away from their factories - have to regularly pay commission to the producers - are retail sales branches that are located within the factory premises - account for the highest percentage of wholesale establishments in the United States

are warehouses that producers set up at separate locations away from their factories

Automatic vending machines attract customers primarily because of their - lack of competition - breadth of selection - convenience - superior marketing - low prices

convenience

Rusty's Auto Parts is a retail firm that owns and manages twelve stores in Wisconsin. Rusty's Auto Parts sounds like a - value chain - category captain - brand leader - channel captain - corporate chain

corporate chain

Wholesaling is primarily concerned with the activities of those establishments that sell - directly to end users through the Internet - only commodity goods and not consumer products - products in bulk to final consumers - goods to retailers and other merchants - solely to government units in small quantities

goods to retailers and other merchants

A supercenter - is another name for a "category killer" - essentially refers to a specialty store - is another name for a niche-merchandiser - is concerned with providing all of the customer's routine needs at a low price - operate no-frills, members-only stores that offer homogenous shopping items at low prices

is concerned with providing all of the customer's routine needs at a low price

Kiara owns a corner convenience store. In one aisle there is a display of about 30 different greeting cards for sale. The display is actually maintained by a ________ that ensures it is kept stocked with seasonally appropriate cards. - rack jobber - truck wholesaler - mill supply house - broker - drop-shipper

jack robber

The idea underlying the mass-merchandising concept is that - specialized packaging and premium pricing are necessary to appeal to larger markets - unique product assortments help increase the brand value of wholesalers - demand in a geographical area is fixed, so it is necessary to follow a "buy high and sell high" philosophy - low prices should be offered to get faster turnover and greater sales volume - products should be bought at a lower price and sold at a higher price to attract high returns

low prices should be offered to get faster turnover and greater sales volume

The "wheel of retailing" theory suggests that - retailing activities are superior to wholesaling activities as there is greater proximity with end users - new types of retailers enter as low-price operators and eventually begin to offer more services and charge higher prices - the largest retailers have a greater chance to survive in a fast-moving economy - retailers should always offer high prices to get faster turnover and greater sales volumes - retailing profits tend to be cyclical and follow a fixed pattern

new types of retailers enter as low-price operators and eventually begin to offer more services and charge higher prices

Phillips and Sanchez is a retailer that operates a national chain of home furnishings stores. It has designed a website and a suite of apps that enable customers to shop seamlessly online, storing the items in their cart and their search history and making them available across multiple devices. When customers make an online purchase, the website and apps let them choose between having the products delivered to their homes or made available for pickup at one of Phillips and Sanchez's locations. These are examples of a(n) ________ strategy. - onmichannel - showrooming - big data - scrambled merchandising - webrooming

omnichannel

Which of the following is an advantage that shopping at a physical store has over shopping online? - simpler price and product feature comparison - personal help and interaction - anytime and anywhere access - availability of reviews from customers who have already used the product - wider product assortment

personal help and interaction

A(n) ______ is a group of independent retailers that pool purchasing and marketing expenses to increase efficiency. - retailers' cooperative - franchise operation - open group - voluntary chain - discretionary chain

retailers' cooperative

Retailers that carry any product line that they feel they can sell profitably are engaging in - equity selling - specialty retailing - scrambled merchandising - niche marketing - product upgrading

scrambled merchandising

Which of the following measures how quickly inventory sells and is an indication of the health of a retailer? - cluster analysis - stockturn rate - return on investment - market share - supplier scorecard

stockturn rate

When a customer buys a pack of Trident chewing gum from a 7-11 store instead of a Shell gas station, - the Shell station benefits - Trident suffers - the Shell gas station suffers - wholesalers make more profits - wholesalers lose sales

the Shell gas station suffers

Which of the following best describes what "retailing" involves? - All of these alternatives describe what retailing involves - the sale of products to final consumers - the sale of consumer products to wholesalers and retailers - the performance of all merchandising activities except promotion and pricing - the sale of goods in bulk to both organizational buyers and end users

the sale of products to final consumers

In developing a marketing strategy, the most important thing for a retailer to consider is - which products are in the highest demand in their area - the best way to promote their business to their target market - how to lay out their store or stores to be most convenient for shoppers - how much people are willing to pay for the products that the retailer stocks - why the members of their target market buy where they do

why the members of their target market buy where they do