Ch 13
55) ________ includes all activities involved in selling goods and services to those buying for resale or business use.
A) Wholesaling
15) Which type of store carries a deep assortment of a particular product line, has knowledgeable staff, and can be viewed as a giant specialty store?
A) category killer
42) A ________ contains between 15 and 50 retail stores, including a department or variety store, a supermarket, specialty stores, professional offices, and sometimes a bank.
A) community shopping center
77) Springfield, a convenience store, has recently begun to redesign and restock its stores to offer a more upscale environment with products such as house wines and fresh foods. This information indicates that Springfield has most likely changed its ________.
A) positioning
37) Press conferences, speeches, store openings, special events, newsletters, and store magazines are examples of ________ activities used by retailers to promote themselves.
A) public relations
85) You own a small independent retail store in your neighborhood. You want to offer fresh seafood, milk, and bread in your store. In this case which of the following types of wholesalers will serve you the best?
A) truck jobber
27) A ________ is a wholesaler-sponsored group of independent retailers that engages in group buying and common merchandising.
A) voluntary chain
24) Which of the following is an off-price retailer that sells a limited selection of brand-name grocery items, appliances, clothing, and other goods at deep discounts to members who pay annual membership fees?
A) warehouse club
112) The life cycle of new retail forms is getting longer.
Answer: FALSE
102) Off-price retailers pay regular wholesale prices for their merchandise but maintain low prices by accepting lower margins and selling higher volume.
Answer: FALSE
103) A discount store buys at less-than-regular wholesale prices and charges consumers less than retail.
Answer: FALSE
108) Retailers first must position themselves in a market and then decide how they will define the target customers in these markets.
Answer: FALSE
109) A neighborhood shopping center has from 50 to more than 100 stores.
Answer: FALSE
111) Power centers tend to be smaller than lifestyle centers.
Answer: FALSE
113) Retail convergence means lower competition for retailers and lower difficulty in differentiating the product assortments of different types of retailers.
Answer: FALSE
115) Many shoppers now check out merchandise online and then buy it at brick-and-mortar stores. This process is called showrooming.
Answer: FALSE
106) A voluntary chain is a wholesaler-sponsored group of independent retailers that engages in group buying and common merchandising.
Answer: TRUE
118) In an automated warehouse, orders are fed directly from the retailer's information system to the wholesaler's, and the items are picked up by mechanical devices and taken to a shipping platform where they are assembled.
Answer: TRUE
101) Category killers are giant specialty stores that carry a very deep assortment of a particular line.
Answer: TRUE
104) Independent off-price retailers either are independently owned and run or are divisions of larger retail corporations.
Answer: TRUE
105) Corporate chains are two or more outlets that are commonly owned and controlled.
Answer: TRUE
107) In a retailer cooperative, independent retailers band together to set up a jointly owned, central wholesale operation and conduct joint merchandising and promotion efforts.
Answer: TRUE
110) A community shopping center contains between 15 and 50 retail stores.
Answer: TRUE
114) Megaretailers have shifted the balance of power between retailers and producers, giving retailers more power.
Answer: TRUE
116) Green retailing yields both top- and bottom-line benefits.
Answer: TRUE
117) Like retailers, wholesalers must decide on product and service assortments, prices, promotion, and place.
Answer: TRUE
98) Superstores are much larger than regular supermarkets and offer a large assortment of routinely purchased food products, nonfood items, and services.
Answer: TRUE
64) ________ and ________ do not take title to goods, and they perform only a few channel functions.
B) Brokers; agents
19) ________ sell standard merchandise at lower prices by accepting lower margins and selling higher volume.
B) Discount stores
23) ________ are manufacturer-owned and operated stores which offer prices as low as 50 percent below retail on a wide range of mostly surplus, discounted, or irregular items.
B) Factory outlets
46) ________ are huge unenclosed shopping centers consisting of a long strip of retail stores, including at least one large, freestanding anchor store like Walmart. Each store has its own entrance with parking directly in front for shoppers who wish to visit only one store.
B) Power centers
83) Which of the following is most likely true about shoppers who prefer to shop at "lifestyle centers"?
B) They prefer upscale stores.
65) A(n) ________ brings buyers and sellers together and assists in negotiations.
B) broker
74) 7-Eleven, Stop-N-Go, and Circle K are examples of ________.
B) convenience stores
32) In recent years, service differentiation among retailers has ________.
B) decreased
10) Which type of store carries a wide variety of product lines and has been squeezed in recent years between more focused and flexible specialty stores on the one hand and more efficient, lower-priced discounters on the other?
B) department store
29) Which of the following statements best represents a contractual association between a manufacturer, wholesaler, or service organization and independent businesspeople who buy the right to own and operate one or more units in the system represented by the contract?
B) franchise
7) Which type of retailer is most likely to require its employees to focus most on assisting customers as they shop?
B) full-service retailer
38) Which of the following is most likely gained by stores that cluster together?
B) increased customer pulling power
72) Today's large, progressive wholesalers have successfully reacted to rising costs by ________.
B) investing in information technology systems
47) A small, open-air mall with upscale stores, convenient locations, and nonretail activities, such as a playground, skating rink, hotel, dining establishments, and a movie theater, is an example of a(n) ________.
B) lifestyle center
9) Specialty stores carry ________ with ________ within them.
B) narrow product lines; deep assortments
76) Overstock.com, a Web seller that buys furniture, clothing, electronics, and more from a variety of producers at less-than-regular wholesale prices and then charges customers less than retail, is a(n) ________.
B) off-price retailer
49) Target recently opened temporary shops to celebrate limited-run collections by Jason Wu in Toronto and Missoni in New York. These temporary shops are examples of ________
B) pop-up stores
86) You own a neighborhood grocery store and would like to have non-food items delivered, priced, displayed and inventoried by a wholesaler. You do not want to purchase title to the goods. Which type of wholesaler best fits your needs?
B) rack jobber
26) As a result of the great success of corporate chains, many independent stores choose to band together in either a voluntary chain or a(n) ________.
B) retailer cooperative
36) In-store demonstrations, displays, sales, and loyalty programs are examples of ________.
B) sales promotion
75) Which of the following terms best describes a large, low-cost, low-margin, high-volume, self-service store that carries a wide variety of grocery and household products?
B) supermarket
56) ________ buy mostly from producers and sell to retailers and industrial consumers.
C) Wholesalers
66) A(n) ________ does not take title to goods and represents buyers or sellers on a more permanent basis than a broker.
C) agent
90) The authentic Amish décor of Indiana Wood's contributes to the store's ________.
C) atmosphere
30) Sears, Target, and Kroger are examples of ________.
C) corporate chains
20) The early ________ cut expenses by offering few services and operating in warehouse-like facilities in low-rent, heavily traveled districts.
C) discount stores
28) McDonald's, Subway, and Pizza Hut are all examples of ________.
C) franchises
5) Which type of retailer usually carries more specialty goods at high prices and is more likely to provide customers with assistance in every phase of the shopping process?
C) full-service retailer
54) Touch-screen kiosks, handheld shopping assistants, interactive dressing-room mirrors and virtual sales associates are all examples of how retailers use technology to ________.
C) meet consumers' expectations
50) With their size and buying power, ________ can offer better merchandise selections, good service, and strong price savings to consumers.
C) megaretailers
43) A ________ generally contains between 5 and 15 stores. It is close and convenient for consumers, usually contains a supermarket, perhaps a discount store, and several service stores such as dry cleaner, drugstore, and hardware store.
C) neighborhood shopping center
33) Daizy's is a shop which carries only plus-size clothing. According to this information, Daizy's differentiates itself from its competitors based on ________.
C) product assortment
40) A ________ is a group of retail businesses built on a site that is planned, developed, owned, and managed as a unit.
C) shopping center
31) Independent Grocers Alliance, Do-It Best, Western Auto, and True Value are examples of ________.
C) voluntary chains
81) Which of the following best describes a similarity between Costco and Walmart?
D) Both use everyday low pricing.
39) ________ were the main form of retail clusters until the 1950s.
D) Central business districts
52) ________ is known as the merging of consumers, products, prices, and retailers.
D) Retail convergence
61) Which of the following wholesaler's channel functions is exemplified by buying in carload lots and then dividing these lots into small quantities?
D) bulk breaking
78) Cabela's stores are as much natural history museums for outdoor enthusiasts as they are retail outlets. This information indicates that Cabela's is practicing ________.
D) experiential shopping
63) What is the most common type of agent wholesaler?
D) manufacturers' representative
58) Which of the following is NOT one of a wholesaler's channel functions?
D) off-price retailing
41) A ________ contains from 50 to 100 stores, is like a covered mini-downtown, and attracts customers from a wide area.
D) regional shopping center
17) Which of the following would be considered a service retailer?
D) restaurants
53) Which term refers to looking at merchandise at a traditional store and then purchasing the merchandise online?
D) showrooming
73) GameStop sells only video games and systems, offering a narrow product line with a deep assortment within that line. GameStop is a(n) ________.
D) specialty store
45) Neighborhood shopping centers are also known as ________.
D) strip malls
12) Which of the following is the most frequently visited type of retail store?
D) supermarket
14) Which type of store is much larger than regular supermarkets and offers a large assortment of routinely purchased food products, nonfood items, and services?
D) superstore
70) ________ are agents who take physical possession of products and negotiate sales. They deal mostly with agricultural marketing.
E) Commission merchants
69) ________ are a type of limited-service wholesalers who do not carry inventory or handle a product. They typically operate in bulk industries, such as coal, lumber, and heavy equipment.
E) Drop shippers
16) Home Depot and PetSmart are examples of ________.
E) category killers
84) Carey David's wholesale company helps retailers train salesclerks, improve store layouts and displays, and set up inventory control systems. According to this information, which of the following wholesaler's channel functions is provided by Cary David?
E) management services and advice
60) Which of the following wholesaler's channel functions is demonstrated when a buyer receives quicker delivery because wholesalers are located closer than producers?
B) transportation
25) ________ are two or more outlets that are commonly owned and controlled
A) Corporate chains
21) ________ have filled the ultra low-price, high-volume gap by buying at less-than-regular wholesale prices and charging consumers less than retail
A) Off-price retailers
13) A ________ is a small store, located near a residential area, that is open long hours seven days a week and carries a limited line of high-turnover goods.
A) convenience store
87) Tony Pool Chemical Co. purchased 144 buckets of chlorine tablets over the Internet from Chemical Inc. Then Chemical Inc. placed the order with the manufacturer, and the manufacturer then transported the tablets directly to the Tony Pool store. In this case, Chemical Inc. is an example of a ________.
A) drop shipper
91) Which of the following would be the most logical way for Indiana Wood to expand?
A) establishing an online presence
89) Indiana Wood can be best classified as a(n) ________.
A) full-service retailer
67) Which type of wholesaler sells to manufacturers rather than to retailers?
A) industrial distributor
44) Most shopping centers are ________.
A) strip malls
100) Supermarkets are located near residential areas and are open long hours, seven days a week; they carry a limited line of high-turnover goods.
Answer: FALSE
94) Department stores carry narrow product lines with deep assortments within those lines.
Answer: FALSE
92) Wholesaling includes all the activities involved in selling products or services directly to final consumers for their personal, nonbusiness use.
Answer: FALSE
97) In recent years, convenience stores have redesigned their stores to closely focus on serving their primary target market made up of young, blue-collar men.
Answer: FALSE
99) Supermarkets sell a limited selection of goods at deep discounts to consumers who pay membership fees.
Answer: FALSE
93) Shopper marketing involves focusing the entire marketing process—from product and brand development to logistics, promotion, and merchandising—toward turning shoppers into buyers at the point of sale.
Answer: TRUE
95) Self-service retailers serve customers who are willing to perform their own locate-compare-select process to save time or money.
Answer: TRUE
96) Full-service stores usually carry more specialty goods for which customers need or want assistance or advice.
Answer: TRUE
71) ________ are wholesalers who serve grocery and drug retailers, mostly in nonfood items. They price the goods, keep them fresh, set up point-of-purchase displays, and keep inventory records.
B) Rack jobbers
1) ________ includes all the activities involved in selling products or services directly to final consumers for their personal, nonbusiness use.
B) Retailing
3) ________ is a type of service offered by those retailers who serve customers that are willing to perform their own "locate-compare-select" process in order to save money.
B) Self-service
2) ________ involves using in-store promotions and advertising to extend brand equity to "the last mile" and encourage favorable point-of-purchase decisions.
B) Shopper marketing
79) Big and Tall Men's Shop carries men's clothing in larger sizes; this allows the store to ________ other stores.
B) differentiate itself from
57) Which of the following wholesaler's channel functions is demonstrated when a wholesaler's sales force helps a manufacturer to reach many small customers at a low cost?
B) selling and promoting
34) A large retailer of home improvement and construction products offers "how-to" classes for do-it-yourselfers, featuring instructions on how to complete home improvement projects using products sold at its stores. This is an example of how the retailer has differentiated itself through its ________.
B) services mix
8) Today, ________ are flourishing due to the increased use of market segmentation and market targeting.
B) specialty stores
88) ________ perform a role similar to that of brokers or agents but are part of the buyer's organization.
C) Purchasing officers
18) ________ retailers in the United States are growing faster than product retailers.
C) Service
80) The lighting in Jake's Steak Restaurant is dim. The chairs are covered in leather and each table is covered with a white linen cloth. The colors are limited to earth tones with an occasional splash of red. Patrons cannot hear any kitchen noises, only a pleasant melody that seems familiar but unrecognizable. The smells are extraordinarily varied. This is a description of the restaurant's ________.
C) atmosphere
6) At Neiman Marcus, a first-class department store, customers shop for high-end products and they are assisted in every phase of the shopping process. Neiman Marcus is a ________.
C) full-service retailer
35) An ideal price policy scenario for retailers would be to achieve ________ while charging ________.
C) high volume; high markups
82) Macy's department stores carry a wide range of product lines, including clothing, jewelry, kitchenware, and home furnishings. Macy's typically charges a relatively high markup, but also holds frequent sales and price promotions, in particular offering discounts to customers who use a Macy's credit card. Macy's uses ________.
C) high-low pricing
48) Many retailers are now experimenting with limited-time shops that let them promote their brands to seasonal shoppers and create buzz in busy areas. Which of the following terms best represents such shops?
C) pop-up stores
51) According to the concept of ________, new retailing forms often begin as low-margin, low-price, low-status operations to challenge established retailers. Such retailers then become successful, and eventually become like the conventional retailers they replaced.
C) wheel-of-retailing
4) ________ are retailers that offer sales assistance because they carry more shopping goods about which customers might need information.
D) Limited-service retailers
62) ________ are the largest group of wholesalers. They include two broad types: full-service wholesalers and limited-service wholesalers.
D) Merchant wholesalers
11) ________ are facing slow sales growth because of slower population growth, increased competition, and the rapid growth of out-of-home eating.
D) Supermarkets
68) ________ are a type of limited-service wholesalers who carry a limited line of semiperishable merchandise (such as milk, bread, snack foods), which is sold for cash as deliveries are made to supermarkets, small groceries, or hotels.
D) Truck jobbers
22) Which of the following is NOT a type of off-price retailer?
D) category killer
59) Which of the following wholesaler's channel functions is demonstrated when a wholesaler holds inventories and thereby reduces inventory holding costs and risks of suppliers and customers ?
D) warehousing