Chapter 14: Practice Test

The entire range of products stocked by a retailer is its _______.

Merchandise mix

Convience stores, barber shops, hair stylists, manicurists, delies, and other small specialy stores tend to located their facilities in ________________ in order to target consumers living nearby, attracting consumers who are primarily interested in a combination of convenience and lower prices.

Neighborhood centers

Stores such as Family Dollar and Dollar General tend to located their facilities in ________________ in order to target consumers living nearby, attracting consumers who are primarily interested in a combination of convenience and lower prices.

Neighborhood centers

___________ include stores such as Ross Dress For Less, Dress Barn, T.J. Maxx, DSW Designer Shoe Warehouse, and Marshall's.

Off‐price retailers

____________ has evolved to reduce some of the more egregious aspects of traditional door-to-door selling. With this form of selling, salespeople recruit prospects to host get-togethers at their homes or their places of work.

Party plan selling

Which of the following is not a response by supermarkets to improve their profit margins?

Reduced reliance on techology to cut costs

Which of the following is not a response by supermarkets to improve their profit margins?

Reduced reliance on techology to cut costs reduced reliance on vendor assistance to help manage inventory and restock shelves

Which of the following is not a form of non-store retailing?

Social network selling

____________ offer substantial discounts and probably the best selection of brands for the types of products they merchandise. The retailing strategy is to attract customers through relatively lower-priced offerings and broader selections, thereby eliminating the competition.

Specialty stores

___________ include all activities involved in the marketing and distribution of goods and services from one business to other businesses.

Wholesaling

A _____ is an independent agent wholesaling middleman that brings buyers and sellers together and provides marketing information to both parties.

broker

The manager of the San Francisco Seafood Company knows the market for its Talapia is geographically quite large. Price and supply conditions vary considerably from season to season. Since San Francisco Seafood can sell its Talpia only a few months each year, it does not need continuous market representation. The Talapia producers should use a:

broker

Best Buy (consumer appliances and electronics), Staples (office supplies, furniture, computers, and software), Home Depot (home building supplies and equipment), and Bed Bath & Beyond (home decorating products) are classified as _________ .

catergory killers

_________ are owned and operated by corporate chains and carry a broad mix of product lines organized by "departments." Examples include JC Penney, Nordstrom's, Sears, Dillard's, and Macy's.

department stores

Which of the following is not an advantage of coporate chain stores over smaller independent retailers?

greater flexibility in operational decision‐making at the individual store level

The supermarket form of retailing normally commands profit margines, on average, of:

less than 5%

____________ are slowly dying and probably will be phased out incrementally as consumer demand shifts in favor of the greater convenience of e-commerce and preferences for smaller, local retail facilities over big-box retailers.

supercenters

The majority of retailing establishments in the US today are:

Independent retailers

Lowe's, Home Depot, Staples, Target, Walmart, Barnes & Noble, Bally's or LA Fitness Health Clubs, PETSMART, Old Navy, Best Buy, Bed, Bath & Beyond, and Toys-R-Us are typical are typically located in ____________.

Power centers

____________ are large un-enclosed shopping centers that are normally anchored by large category killers and off-price retailers rather than traditional department stores.

Power centers

Joe Duncan sells a wide assortment of "emergency" home repair items (fuses, electrical tape, small packets of nails) to grocery and convenience stores. He owns the products he handles, provides the shelves and stocks the display, and monitors the inventory for his customers. Joe is a:

Rack jobber

America's largest ___________ is the Mall of America, located outside of Minneapolis. The mall contains over 800 stores, including 100 restaurants and nightclubs. The mall also hosts a theme park, hotels, miniature golf courses, and water slides.

Regional center

The Galleria in Dallas is anchored by a Westin Hotel, has an ice-skating rink, offers a fivescreen cinema, and is populated by more than 200 select retail department stores, specialty stores, and restaurants for its patrons to visit. The Galleria is a ____________.

Regional center

____________ includes all activities involved in selling goods and services to ultimate consumers for their own personal use.

Retailing

_______________ exist and operate as the last link in supply chains, primarily making sales to ultimate consumers.

Retailing intermediaries

Amazon.com sells products via the Internet predominantly to ultimate consumers for their own personal or household use. Amazon is a(n) __________.

Retailing intermediary

Smaller independent retailers face high failure rates. Which of the following is NOT among the possible actions can cut down on the odds of failure for these smaller retailers?

Seek to become part of an established network marketing system

A _____ essentially substitutes for a manufacturer's marketing department by marketing the firm's entire output.

Selling agent

Sophie Taylor sells the entire output of several small companies based in Colorado Springs' Tech Center. Each of the companies designs and produces computer components. Sophie has almost complete control of all marketing activites since the engineers who started the companies lack marketing experience and want to focus on what they do best --- inventing things. Sophie is paid a substantial commission on all sales. She is a:

Selling agent

A full-service wholesaler in Dallas takes title to the products it stocks and sells i.e. a complete line of home repair products for small, independently owned hardware stores. This wholesaler is a:

Specialty (limited line) wholesaler

Retailers like The Gap, Victoria's Secret, Bath & Body Works, or Barnes & Noble Booksellers, Hardrock Café, Red Lobster, and On The Border are classified as:

Specialty stores

____________ attempt to avoid price competition, prefering instead to differentiate themselves by precisely targeting customer segments with narrow and deep assortemts of specialized product lines and by providing superior customer service and friendly, knowledgeable and even highly attractive sales staff.

Specialty stores

Vending is a relatively expensive form of retailing due to costs associated with all of the following except ____________.

Spoilage of products not purchased before their expiration date.

additional services such as fast food restaurants, dry cleaning, banking, check cashing, automobile servicing, and optical centers.

Supercenters

Albertsons, Kroger's, Safeway, H.E.B., and A&P are nationally located corporate chains of ______________ .

Supermarkets

Department stores are facing serious competition from discount stores and category killers that offer the same or similar merchandise at lower prices. Which of the following actions are being taken by some department stores, such as Nordstrom, to combat these inroads?

Target upscale shoppers who are less price‐elastic Focus on higher margin products such as clothing, jewelry, and cosmetics Individual departments may operate as upscale specialty stores stressing enhanced "atmospherics." All of the above are being employed

The main difference between agent middlemen and merchant wholesalers is:

That agent middlemen do not own the products they sell‐‐while merchant wholesalers do.

A producer has a few territories where many big customers are concentrated, but most of its target customers are spread all over the country.

The company should use its own sales branches in the concentrated territories and agents, probabaly manufacturers' agents, in the others‐‐assuming the concentrated territories are large enough to support sales branches.

With respect to telemarketing, which of the following techniques are employed for idenfying potential prospects?

Cold‐calling from existing phone lists. Random digit dialing Lists of current or past customers Lists purchased from third party vendors All of the above

Chain stores with 11 or more retail units or locations are technically called as ______________ .

Corporate chains

______________ typically are well-financed and centrally operated. Their size and financial strength provides them with significant scale economies in purchasing and operations.

Corporate chains

____________ offer a full range of services including credit, delivery, generous return privileges, hair salons, travel services, automobile insurance, and (occasionally)restaurants. Sales personnel are expected to be helpful, courteous, and knowledgeable. Each department in inside the store operates as an autonomous unit that is responsible for its own buying, merchandising, revenue,and profits.

Department stores

Direct mail, telemarketing, on-line marketing, and direct response advertising are all components of ___________ .

Direct marketing

Bell and Howell advertises its high intensity flashlights regularly on TV and encourages consumers to place orders via the telephone, paying with their credit cards. Bell and Howell is employing ________ .

Direct response advertising

Lillian Vernon began her catalog empire with an advertisement for her purses in Seventeen magazine. Young ladies were encouraged to place orders via the telephone or mail. Lilian Vernon was employing _______.

Direct response advertising

Time Life regularly airs TV commercials promoting books, DVDs, and CDs. Consumers are shown 1-800 numbers and encouraged to use credit cards to make purchases. Time-Life is employing ___________.

Direct response advertising

Which of the following is true about how direct selling differs from direct marketing?

Direct selling is limited to face‐to‐face contact sales using door‐to‐door selling and party plan selling

All of the following are characteristics of direct selling except ___________.

Direct selling is the cheapest form of selling because no retail store‐front is required

Walmart, Kmart, Target, Big Lots, Dollar Tree, Dollar General, and Family Dollar are all classified as ___________ .

Discount stores

Steve Johnson sells fiberglass resins and fiberglass fabrics to the many small sailboat manufacturers in Florida. He takes title to the products but does not handle them. Instead, the materials are shipped directly from the producer to the sailboat manufacturers. Steve is a:

Drop shipper

A retail store's __________ include building architecture and storefront, parking, landscaping,surrounding buildings, and the general drive-by appearance that contribute to the consumer's initial image of the store.

External Atmospherics

Grapevine Mills, located just outside of Dallas, TX is a fully enclosed 1.5 million square foot mall. The huge facility houses more than 200 well-known manufacturer and retail outlets, off-price retailers and unique specialty stores. In addition to a food court, the mall houses a variety of theme restaurants including Rainforest Cafe, Dick Clark's American Bandstand Grill, and the Eerie World Cafe. Grapevine Mills is classified as a _________.

Factory outlet mall

Which of the following is a distinct advantage of the smaller indepdent retailer over its coporate chain store competitors?

Greater flexibility in operational decision‐making at the individual store level

Door-to-door selling and party plan selling are both examples of ________ .

direct selling

provided in shallow, but reasonable, depth. Product lines are organized by departments, few services are provided, the retail setting is austere, and prices are set low to attract price-sensitive consumers.

discount stores

Which of the following is not among the actions that category killers such as Best Buy have taken to effectively compete with department stores and internet retailers, such as Amazon?

improved merchandising by expanding the merchandise mix

The inventory numbers given to products stocked by retailers are called:

stock Keeping Units

A retail store's _____________ include the decor, merchandise arrangement and crowding, general layout, background music, color schemes, scents, acoustics and noise levels, lighting, and cleanliness of stores.

Internal atmospherics

Old Smokie, Inc. is a small producer of specialty equipment for smoking meats. The company does not have its own sales force and has just introduced a cooker which smokes meats 50% faster. The cooker will most likely be distributed by a:

Manufacturers' agent

Retailers work hard to design in-store sensory environments that postively affect one or more of the consumers' five senses in order to increase the likelihood of a positive emotional experience. These retailers are focusing on creating positive __________.

Internal atmospherics

____________ specialize in specific product lines, often carrying only a single line. The merchandise mixes are described as "narrow" and "deep."

Limited line retailers

Jane Tuttle calls on the many gift shops at Estes Park, Colorado and sells a variety of unique decorative glass items, wind chimes, and picture frames produced by the companies that he represents. The store owners order from Jane rather than from the different manufacturers she represents. Apparently, Jane is a:

Manufacturers' agent

Merchant wholesalers:

Are independently owned firms that engage primarily in wholesaling and take title to products being distributed.

The primary benefit to consumers when buying from a vending machine is:

Convenience

Joe's Electronics Supply stocks electronic repair parts and related supplies and tools from various producers. Joe's sells primarily to small electronic repair shops throughout the country that only want to order one or two items at a time. Orders are usually shipped out on UPS trucks. It appears that Joe's is a

Limited line (specialty) wholesaler

As practiced today, telemarketing is used for which of the following?

Making sales via the telephone Engaging in customer service and relationship management Gathering customer information Prospecting for new customers All of the above

Sandra Locke sells gluten-free specialty food products to grocery wholesalers and large retail grocery chains in Tampa. She sells for several manufacturers with noncompeting lines of gluten-free foods and earns a 4% sales commission. Sandra does not own or inventory the products she sells. Evidently, Sandra is a: neither handles nor owns the products she sells.

Manufacturers' agent

The number of different product lines carried by a retailer is its ________ .

Merchandise breath

Mary Kay, Tupperware, Stanley Home Products and Magic Chef all expemplify which form of direct selling?

Party-planning selling

The primary factor that distinguishes between a merchant wholesaler and an agent is:

The wholesaler takes title; the agent does not.

Factory outlet malls usually are located in outlying, rural areas in order to:

To avoid conflict with traditional retailers located in regional and power centers that may sell the same brands.

____ carry a selected line of perishable products and deliver them by trucks to retail stores.

Truck jobbers

Machines that dispense products, video game machines, and bank ATMs all illustrate which form of retailing?

Vending

_____________ are large-scale, member-only, mass merchandisers that combine cash and carry wholesaling with discount retailing.

Warehouse clubs

The major distinction between a retail and a wholesale transaction is:

Whether the product will be used by an organization or by a consumer.

Whether a given transaction is classified as a wholesale sale or as a retail sale essentially depends on:

Whether the product will be used by an organization or by a consumer. (correct)

Grainger Worldwide buys a wide range of industrial products (mainly maintenance, repair, and operating supplies) from manufacturers and resells these products to other business users. When making sales to its customers, Grainger is engaged in _____________.

Wholesaleing

Grainger Worldwide buys a wide range of industrial products (mainly maintenance, repair, and operating supplies) from manufacturers and resells these products to other business users. Grainger is a _____________ .

Wholesaling intermediary

When Jon Jones decided to sell 10 acres of land, he contacted Leona Anderson. She showed the land to a potential buyer who wanted to build a home on the site, explained the market conditions for land in the area, and helped negotiate the terms of the sale. She left the final decision about the sale up to Titus and the young couple. Smalley is most likely a:

broker

Wells Fargo provides the financial services that allow supply chain members (wholesaling and retailering intermediaries) to establish and operate their businesses. In this context, Wells Fargo is a(n) ________.

facilitating agent

Transportation firms, such as trucking companies and railroads, assist other supply chain members (producers, wholesalers, and retailers) by transporting products from point of production to point of consumption. In the context of supply chains, these transportation firms are called _________.

facilitating agents

Warehouses run by third party operators provide access to long-term and short-term specialized storage and inventory management facilities. In the context of supply chains, these warehousing firms are called _________.

facilitating agents

The classification system for in-store retailers employed in the text is based on the ______________ of the retailer.

merchandise mix

____________ occurs when products are not sold from fixed retail facilities and consist of four basic types: direct selling, telemarketing, direct marketing, and vending.

non-store retailing

A national grocery store chain has decided to sell an assortment of hobby, gardening, and cook books. Buyers in the chain's main office are not certain what to stock because they think that consumers in different areas of the country will probably be interested in different books. The store managers have said they don't know what to order either. The chain should probably get help from a:

rack jobber