MM Chap 13

Which of the following is an example of direct marketing?

TCJ is a telemarketing firm that sells products from a number of different suppliers.

Which of the following is a prepurchase service offered by retailers?

accepting orders over the telephone

Which of the following is the strongest differentiator for brick-and-mortar stores who want to emphasize their superiority over online retailers?

the shopping experience

Which of the following wholesaler functions reduces inventory costs and risks to suppliers and customers?

warehousing

A reorder point of 10 means ordering the product ________.

when stock falls to 10 units

________ are unbranded, plainly packaged, less expensive versions of common products such as spaghetti, paper towels, and canned peaches.

Generics

________ includes planning the infrastructure to meet demand, then implementing and controlling the physical flows of materials and final goods from points of origin to points of use to meet customer requirements at a profit.

Market logistics

An example of a restaurant with a narrow and deep assortment is a ________.

delicatessen

Which of the following is a postpurchase service offered by retailers?

delivery to the customer's doorstep

A store selling expensive artwork and luxury goods typically falls into the ________ group with respect to margins and volume.

high-markup, low-volume

Discount stores typically fall into the ________ group with respect to margins and volume.

high-volume, low-markup

Optimal order quantities exist when the curves for the order-processing cost per unit and inventory-carrying cost per unit ________.

intersect

If the shipper owns its own truck or air fleet, it becomes a ________ carrier

private

Walmart developed the Ol'Roy brand of dog food to sell only in its stores. Ol'Roy is an example of a ________.

private label

A brand developed by a retailer and/or wholesaler that is available only in selected retail outlets is called a ________ brand.

private-label

The owner of supermarket chain Reynold's wants to offer nonfood items such as greeting cards and magazines. However, Reynold's does not want to take care of setting up displays and maintaining inventory records. Which of the following types of wholesalers can help Reynold's meet customer demand while minimizing costs?

rack jobbers

Which of the following is TRUE of brokers?

Brokers bring buyers and sellers together and assist in negotiation.

________ refers to buying large carload lots and dividing them into smaller units before shipping them out to consumers.

Bulk breaking

Which of the following is an example of a limited-service retailer?

CLO's offers a number of merchandise-return privileges, customers need information and assistance while shopping.

________ consists of putting goods in boxes or trailers that are easy to transfer between two transportation modes.

Containerization

Which of the following is an example of retailing?

Praxis International sells products to consumers directly through the Internet.

Which of the following is TRUE for the retail industry?

Retailers are experimenting with "pop-up" stores that let them create buzz.

________ includes all the activities in selling goods or services directly to final consumers for personal, nonbusiness use.

Retailing

Which of the following is TRUE for distributor brands?

They can generate a higher profit margin because of their lower cost structure

________ includes all the activities in selling goods or services to those who buy for resale or business use.

Wholesaling

Why would a retailer measure direct product profitability (DPP)?

because handling costs can make products less profitable

Which of the following is considered a wholesaler?

broker

A(n) ________ is a storeless retailer serving a specific clientele-usually employees of large organizations-who are authorized to buy from a list of retailers that have agreed to give discounts in return for inclusion on the list.

buying service

Stores are using ________ to measure a product's handling costs from the time it reaches the warehouse until a customer buys it in the retail store.

direct product profitability (DPP)

A large staff, along with a higher proportion of specialty goods and slower-moving items and many services, are usually features of ________ retailing

full-service

Which of the following is an ancillary service offered by retailers?

general information

In addition to its store brands and nationally well-known brands of detergents, Reynold's also carries much cheaper varieties of detergents that are not advertised and have little-known names. They are often manufactured from lower-quality ingredients and save on packaging and advertising costs. These are known as ________.

generics

Most retailers will put low prices on some items in order to increase traffic to the store. These low-priced products are known as ________.

loss leaders

Companies that sell products door-to-door or at home sales parties are engaging in ________.

network marketing

A factory outlet is an example of a(n) ________ retailer.

off-price

The elapsed time between an order's receipt, delivery, and payment is called the ________ cycle.

order-to-payment

An independent retailer using a central buying organization and joint promotion efforts with other retailers is part of a ________.

retailer cooperative

Discount stores that try to keep prices as low as possible are more likely to function using ________ operations.

self-service

Because shelf space is scarce, many supermarkets now charge a ________ for accepting a new brand, to cover the cost of listing and stocking it.

slotting fee

E&OE produces and markets its own brand of skincare products using herbal remedies and natural ingredients through stand-alone stores as well as an online portal. E&OE is a(n) ________ retailer.

specialty