Marketing Chapter 13 Retailing and Wholesaling

______, the world's second largest retailer after Wal-Mart, has embarked on an aggressive mission to extend its role as a leading international retailer. A) McDonald's B) Target C) Carrefour D) Ikea E) Costco

Carrefour

______ includes all activities involved in selling goods and services to those buying for resale or business use. A) Wholesaling B) Retailing C) Franchising D) Discounting E) Disintermediation

Wholesaling

McDonald's, Subway, and Pizza Hut are all examples of a ______. A) voluntary chain B) retailer cooperative C) franchise D) full-service retailer E) power center

franchise

______, or manufacturers, representative, represent a buyer or seller on a more permanent basis. A) Brokers B) Franchises C) Agents D) Retailers E) Intermediaries

Agents

Most ______ retailers are significantly behind ______ retailers in global expansion. A) African; Peruvian B) European; American C) American; European and Asian D) Asian; American E) Asian; African

American; European and Asian

Which of the following describes a way that Costco and Wal-Mart are similar? A) Both are warehouse clubs. B) Both target the same affluent market. C) Both offer a similar assortment of products. D) Both use everyday low pricing. E) Both market a very limited number of generic-priced food, household, and apparel lines.

Both use everyday low pricing.

_______ and _______ do not take title to goods, and they perform only a few channel functions. A) Full-service wholesalers; limited-service wholesalers B) Brokers; agents C) Branches; offices D) Power centers; independent wholesalers E) Independent wholesalers; off-price retailers

Brokers; agents

______ were the main form of retail cluster until the 1950s A) Department stores B) Discount stores C) Independent off-price retailers D) Central business districts E) Independent stores

Central business districts

______ are two or more outlets that are commonly owned and controlled. A) Chain stores B) Convenience stores C) Off-price retailers D) Independent off-price retailers E) Power centers

Chain stores

______ sell standard merchandise at lower prices by accepting lower prices by accepting lower margins and selling higher volume. A) Merchant wholesalers B) Discount stores C) Full-service retailers D) Limited-service retailers E) Factory outlets

Discount stores

______ are sometimes several stores grouped together. These stores offer prices as low as 50 percent below retail on a wide range of mostly surplus, discounted, or irregular items. A) Category killers B) Factory outlets C) Specialty stores D) Superstores E) Power centers

Factory outlets

______, which buy at less-than-regular wholesale price and charge consumers less than retail, are independently owned and run or are divisions of larger retail corporations. A) Discount stores B) Warehouse clubs C) Superstores D) Independent off-price retailers E) Full-service retailers

Independent off-price retailers

______, such as Sears, provide more sales assistance because they carry more shopping goods about which customers need information. Their increased operating costs result in higher prices. A) Self-service retailers B) Full-service retailers C) Off-price retailers D) Limited-service retailers E) Specialty-service retailers

Limited-service retailers

______ are the largest group of wholesalers. The group can be divided into the two broad types of full-service and limited-service. A) Brokers B) Manufacturers sellers C) Agents D) Merchant wholesalers E) Specialty wholesalers

Merchant wholesalers

______ have filled the ultralow-priced, high-volume gap by buying at less-than-regular prices and charging consumers less than retail. A) Off-price retailers B) Discount stores C) Convenience stores D) Chain stores E) Limited-service retailers

Off-price retailers

The original warehouse store chain, ______, began in 1976. A) Sam's Club B) Price Club C) T G & Y D) Ben Franklin's E) Costco

Price Club

______ includes all the activities involved in selling products or services directly to final consumers for their personal, nonbusiness use. A) Franchising B) Retailing C) Brokering D) Wholesaling E) Disintermediation

Retailing

______ is the basis of all discount operations and is typically used by sellers of convenience goods. Retailers offering this level of service require customers to perform their own "locate-compare-select" process in order to save money. A) Limited-service B) Self-service C) Full-service D)Specialty-service E) Wholesaling

Self-service

______ retailers in the United States are growing faster than product retailers. A) Discount B) Merchant C) Service D) Specialty E) Off-price

Service

_______ carry narrow product lines with deep assortments within those lines. A) Chain stores B) Specialty stores C) Convenience stores D) Discount stores E) Off-price stores

Specialty stores

______ are facing slow sales growth because of slower population growth, increased competition, and the rapid growth of out-of-home eating. A) Convenience stores B) Department stores C) Chain stores D) Supermarkets E) Hypermarkets

Supermarkets

Which of the following may be true about shoppers who prefer to shop at "lifestyle centers"? A) They prefer inexpensive atmospheres. B) They prefer upscale stores. C) They prefer out-of-the-way locations. D) They rarely dine out. E) They are motivate by deals on last year's merchandise and seconds.

They prefer upscale stores.

______ operate in warehouse-like facilities, sell a limited selection of items, and offer few frills. Customers pay annual membership fees and are able to purchase goods at deep discounts. A) Warehouse clubs B) Independent off-price retailers C) Factory outlets D) Discount stores E) Superstores

Warehouse clubs

______ buy mostly from producers and sell to retailers and industrial consumers. A) Independents B) Factory outlets C) Wholesalers D) Discount stores E) Megaretailers

Wholesalers

A(n) ______ brings buyers and sellers together and assists in negotiations. A) agent B) broker C) retailer D) wholesaler E) retail convergence

broker

In order to ______, wholesalers can propose automatic reordering systems, set up management-training and advising systems, or even sponsor a voluntary chain. A) define their target markets B) identify more profitable customers C) determine product and service assortments D) build better relationships with customers E) settle on pricing

build better relationships with customers

You own a independent store in your neighborhood. You still like to offer fresh seafood in your meat display case. Which type of wholesaler might best serve you? A) cash-and-carry wholesaler B) rack jobber C) drop shipper D) mail-order wholesaler E) agents and brokers

cash-and-carry wholesaler

Which type of store carries a deep assortment, has knowledgeable staff, and might actually be viewed as a giant specialty store? A) category killer B) chain C) factory outlet D) shopping center E) independent

category killer

Which of the following is NOT one of the main types of off-price retailers? A) independents B) factory outlets C) warehouse clubs D) category killers E) membership warehouses

category killers

Which of the following is most likely the greatest factor in the increasingly short life cycle of new retail forms? A) changes in technology B) economic swings C) import and export regulations D) stagnating retail convergence E) global expansion of major retailers

changes in technology

More growth in online retailing is expected from ______ retailers than other retail types. A) click-and-brick B) click-only C) brick-and-mortar D) independent E) franchised

click-and-brick

A ______ contains between 15 and 40 retail stores, including a department or variety store, a supermarket, specialty stores, professional offices, and sometimes a bank. A) community shopping center B) neighborhood shopping center C) strip mall D) regional shopping center E) power center

community shopping center

Convergence means greater _____ for retailers and greater difficulty in ______ offerings. A) differentiation; pricing B) sales; differentiating C) profit margins; sales D) competition; differentiating E) branding; differentiating

competition; differentiating

Which of the following has NOT contributed to the growth of online business? A) easier-to-use Web sites B) more interesting and attractive Web sites C) concerns about online privacy and security D) improved online services E) increasingly sophisticated search engines

concerns about online privace and security

Merchandising ______ are corporations that combine several different retailing forms under central ownership. A) conglomerates B) agents C) brokers D) franchises E) independents

conglomerates

Which type of small store carries a limited line of high-turnover convenience goods and makes most of its revenues from cigarette, beverage, and gasoline sales? A) convenience B) chain C) department D) supermarket E) hypermarket

convenience

7-Eleven, Stop-N-Go, and Circle K, small stores that traditionally have had a primary market of young, blue-collar men, are examples of ______. A) department stores B) convenience stores C) category killers D) specialty stores E) supermarkets

convenience stores

Services retailers include all of the following EXCEPT ______ A) hotels and motels B) airlines C) movie theaters D) bowling alleys E) convenience stores

convenience stores

Service differentiation among retailers has ______. A) increased B) decreased C) stayed the same D) franchised E) tripled

decreased

A retailer may fail because it tries to provide "something for everyone" and ends up satisfying no market well. Successful retailers ______ their target markets well and position themselves strongly. A) increase B) franchise C) wholesale D) define E) position

define

Like retailers, wholesalers must ______ their target markers and ______ themselves effectively, for they cannot serve everyone. A) define; position B) position; define C) discount; franchise D) franchise; discount E) identify; compare

define; position

Unit retailers ______ and ______ their markets, they cannot make consistent decisions about product assortment, services, pricing, advertising, store décor, or any of the other decisions that must support their positions. A) compete with; positions B) target; compete with C) define; profile D) limit; serve E) divest; eliminate

define; profile

Which type of store carries a wide variety of product lines and differentiates itself through service, but 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? A) chain B) department C) factory outlet D) merchant wholesaler E) independents

department

A growing number of outlet malls now feature brands such as Coach, Polo Ralph Lauren, Dolce & Gabbana, and Giorgio Armani, causing ______ to protest to the manufacturers of these brands. A) membership warehouses B) agents C) brokers D) department E) factory outlets

department stores

Big and Tall Men's Shop carries goods in larger sizes; this allows the store to ______ other stores. A) compete with B) differentiate itself from C) cluster with D) affect the store atmosphere of E) converge with

differentiate itself from

Early ______ cut expenses by offering few services and operating in warehouse-like facilities in low-rent, heavily traveled districts. A) chain stores B) department stores C) discount stores D) off-price retailers E) full-service retailers

discount stores

Which of the following types of retailers is most likely to practice everyday low pricing (EDLP)? A) discount stores B) convenience stores C) category killers D) limited-service retailers E) department stores

discount stores

Retail convergence is a merging of all of the following EXCEPT ______. A) consumers B) employees C) products D) prices E) retailers

employees

Kiera Roselli, a general merchandise wholesaler, constantly looks for better ways to meet the needs of her suppliers and target customers. She knows that her business adds value by increasing the efficiency and effectiveness of the ______. A) retail process B) entire marketing channel C) warehousing system D) target market E) retail customer

entire marketing channel

Savvy wholesalers realize that their only reason for existence comes from increasing the efficiency and effectiveness of the ______. A) retailer B) industry C) distribution system D) end customer E) entire marketing channel

entire marketing channel

Manufacturers send last year's merchandise and seconds to ______, while they send new merchandise to department stores. A) convenience stores B) chain stores C) factory outlets D) retailers E) power centers

factory outlets

Of the following, what would most retailers consider to be the most important factor in retailing success? A) fair prices B) good atmospheres C) helpful employees D) location E) service

fair prices

The main difference between ______ organizations and other contractual systems is that these systems are normally base on some unique product or service. A) voluntary chain B) retailer cooperative C) franchise D) agent E) warehouse-club

franchise

At Neiman Marcus, a first-class department store, customers shop for specialty products and have come to expect assistance in every phase of the shopping process. Neiman Marcus is a ______. A) self-service retailer B) limited-service retailer C) full-service retailer D) specialty store E) power center

full-service retailer

Which of the following retailers likely require the most emphasis on salespeople to assist customers? A) self-service retailers B) full-service retailers C) off-price retailers D) limited-service retailers E) megaretailers

full-service retailers

Which type of stores usually carry more specialty goods for which customers like to be "waited on" and have much higher operating costs, which are passes along to the customer? A) self-service stores B) category killer stores C) full-service stores D) independent stores E) specialty-service retailers

full-service stores

While all retailers would like to achieve ______ while charging ______, the two seldom happen together. A) low volume; high markups B) low volume; low markups C) high volume; high markups D) high volume; low markups E) high volume; cut-rate markups

high volume; high markups

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 ______. A) self-service retailing B) experiential retailing C) high-low pricing D) everyday low pricing E) retail convergence

high-low pricing

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) ______. A) discount store B) independent off-price retailer C) factory outlet D) wholesale club E) category killer

independent off-price retailer

Which type of wholesaler sells primarily to manufacturers rather than to retailers? A) wholesale merchants B) industrial distributors C) cash-and-carry wholesalers D) rack jobbers E) drop shippers

industrial distributors

Today's large, progressive wholesalers have successfully reacted to rising costs by ______. A) relocating in low-rent, low-tax areas B) investing in information technology systems C) investing less money in expensive machinery D) increasing their markup E) reducing promotional activities

investing in information technology systems

A ______ is a smaller mall with upscale stores, convenient locations, and expensive atmosphere. It is typically located near affluent residential neighborhoods. A) regional shopping center B) lifestyle center C) community shopping center D) franchise E) power center

lifestyle center

Carey David's wholesale company helps retailers train salesclerks, improve store layouts and displays, and set up inventory control systems. The channel function Cary David's is providing is ______. A) buying and assortment building B) selling and promotion services C) risk bearing services D) marketing information E) management services and advice

management sevices and advice

Touch-screen kiosks, customer-loyalty cards, handheld shopping assistants, and self-scanning checkout systems are all examples of how retailers use technology to ______. A) maintain inventory costs B) send information between stores C) meet consumers' expectations D) produce more accurate forecasts E) interact with suppliers

meet consumers expectations

Specialty stores carry ______ with _______ within them. A) convenience items; mostly staples B) narrow product lines; deep assortments C) narrow product lines; shallow assortments D) wide product lines; shallow assortments E) wide product lines; deep assortments

narrow product lines; deep assortments

Retail assortments are looking more and more alike because ______. A) customers today are more focused on service differentiation B) national-brand manufacturers have place their products almost everywhere C) market segmentation has proved ineffective D) stores are clustered together to increase their customer pulling power E) more stores are practicing "experiential retailing"

national-brand manufacturers have placed their products almost everywhere

In recent years, ______ has/have been growing fast. This includes selling to final consumers through direct mail, catalogs, telephone, and the Internet. A) specialty stores B) shopping centers C) superstores D) nonstore retailing E) e-commerce

nonstore retailing

Mail-order, phone, and online shopping are all examples of ______. A) the wheel-of-retailing concept B) nonstore retailing C) off-price retailing D) full-service retailing E) wholesaling

nonstore retailing

Which of the following is NOT one of the wholesaler's channel functions? A) financing B) risk bearing C) providing market information D) off-price retailing E) bulk-breaking

off-price retailing

7-Eleven has recently begun to redesign and restock its stores to offer a more upscale environment and products, such as house wines and fresh foods. 7-Eleven has changes its ______. A) positioning B) wholesaler C) service level D) size E) relative prices

positioning

In the battle for "share of stomachs," some supermarkets are cutting costs and attempting to compete more effectively with food discounters, while other are moving upscale, providing improved store environments and higher-quality food offerings. These two different strategies represent differences in ______. A) positioning B) place decisions C) retail convergence D) retail technology E) wholesaling

positioning

Today's trend in retail clusters is toward ______, huge unenclosed shopping centers consisting of a long strip of retail stores, including at least one large, freestanding anchor store like Wal-Mart. Each store has its own entrance with parking directly in front for shoppers who wish to visit only one store. A) shopping malls B) power centers C) superstores D) chain stores E) regional shopping centers

power centers

Which type of limited-service wholesaler is owned by farmers who assemble farm produce to sell in local markets? A) cash-and-carry wholesaler B) drop slipper C) rack jobber D) producer's cooperative E) truck jobber

producer's cooperative

A retailer's ______ should differentiate the retailer while matching target shoppers' expectations. One strategy is to offer merchandise that no other competitor carries. A) agent B) broker C) product assortment D) environment E) distribution strategy

product assortment

Costco's surprise offerings of seconds, overstocks, and closeouts, occasionally including diamonds, is an example of how a retailer can differentiate itself through ______. A) product assortment B) services mix C) experiential retailing D) store atmosphere E) high-low pricing

product assortment

Many wholesalers are not ______ minded; they are behind the times in personal selling, seeing selling as a single salesperson talking to a single customer instead of as a team effort. A) absent B) promotion C) management D) franchise E) customer

promotion

Press conferences and speeches, store openings, special events, newsletters, magazines, and public service activities are examples of ways retailers use ______. A) public relations B) sales promotions C) personal selling D) the wheel-of-retailing concept E) retail convergence

public relations

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? A) cash-and-carry wholesaler B) rack jobber C) drop shipper D) mail-order wholesaler E) agents and brokers

rack jobber

A ______ contains from 40 to 200 stores, is like a covered mini-downtown, and attracts customers from a wide area. A) community shopping center B) neighborhood shopping center C) strip mall D) regional shopping center E) power center

regional shopping center

The merging of consumers, products, prices, and retailers is called ______. A) retail conglomeration B) consumer convergence C) price merging D) retail convergence E) retail clustering

retail convergence

As a result of the great success of corporate chains, many independent stores chose to band together in either a voluntary chain or a(n) ______. A) factory outlet B) retailer cooperative C) independent off-price retailer D) warehouse club E) convenience cooperative

retailer cooperative

In-store demonstrations, displays, contests, and visiting celebrities are examples of ______. A) franchises B) sales promotions C) agent promotions D) broker promotions E) product life-cycling

sales promotions

Which wholesaler's channel function is demonstrated when a wholesaler's sales force helps a manufacturer to reach many small customers at a low cost? A) bulk-breaking B) selling and promoting C) buying and assortment building D) warehousing E) rackjobbing

selling and promoting

Home Depot offers "how-to" classes for do-it-yourselfers, featuring instructions on how to complete home improvement products sold at its stores. This is an example of how Home Depot has differentiated itself through its ______. A) product assortment B) services mix C) segmentation D) atmosphere E) targeting

services mix

A _____ is a group of retail businesses planned, developed, owned, and managed as a unit. A) merchant wholesaler B) franchise C) shopping center D) supermarket E) hypermarket

shopping center

GameStop sells video games and systems, offering a narrow product line with a deep assortment within that line. GameStop is a ______. A) department store B) convenience store C) category killer D) specialty store E) off-price retailer

specialty store

Which of the following is NOT one of the major classifications of wholesalers? A) merchant wholesalers B) agents C) manufacturers sales branches and offices D) specialty wholesalers E) brokers

specialty wholesalers

Most shopping centers are ______ containing between 5 and 15 stores; they are close and convenient for customers. A) community shopping centers B) power centers C) strip malls D) lifestyle centers E) factory outlets

strip malls

Which type of retailer tends to be the most frequently shopped? A) convenience stores B) department stores C) superstores D) supermarkets E) off-price retailers

supermarkets

The rise of huge mass merchandisers and specialty superstores, along with retail mergers and acquisitions, has created a core group of very large and very powerful ______. A) category killers B) franchises C) superpower megaretailers D) power centers E) lifestyle centers

superpower megaretailers

Which type of store is much larger than regular supermarkets and offers a large assortment of routinely purchase food products, nonfood items, and services? A) category killer B) chain C) factory outlet D) superstore E) off-price

superstore

SuperValu, traditionally classified as a food wholesaler, has recently started or acquired several retail food chains of its own, including Albertsons, Jewel-Osco, and Cub Foods. Which of the following trends is the an example of? A) movement toward self-service retailing B) the growing domination of superstores C) the decline of the voluntary chain D) retail convergence E) the blurring of distinctions between retailers and wholesalers

the blurring of distinctions between retailers and wholesalers

Why do stores cluster together? A) to decrease competition B) to increase their customer pulling power C) to take advantage of tax breaks D) to create retailer cooperatives E) to standardize the service mix

to increase their customer pulling power

Which wholesaler's channel function is demonstrated when a buyer receives quicker delivery because wholesalers are located closer than producers? A) financing B) transportation C) buying and assortment building D) warehousing E) risk bearing

warehousing

Which wholesaler's channel function is demonstrated when a wholesaler reduces inventory holding costs and risks to suppliers and customers? A) financing B) transporting C) buying and assortment D) warehousing E) bulk breaking

warehousing

According to the ______ concept, new retailing forms often begin as low-margin, low-price, low-status operations to challenge established retailers, then become successful, and eventually take the place of the established retailers they had challenged. A) agent B) broker C) wheel-of-retailing D) warehousing E) product life cycle

wheel-of-retailing