Marketing Test 5
On average, supermarkets receive ___ cents of every sales dollar for the functions they perform.
25
On average, furniture stores and bookstores receive ___ cents of every sales dollar for the functions they perform.
40
Which wholesaler receives goods on consignment, accumulates them from local markets, and arranges for their sale in a central market location?
A commission merchant
Which of these illustrates channel cooperation?
A manufacturer granting a wholesaler credit for all sales in its territory, whether or not initiated by the wholesaler
Which statement concerning selling agents is NOT correct?
A manufacturer may employ multiple selling agents, such as one for each product line.
Which of these illustrates channel conflict?
A retailer making late payments to a vendor
Which of these is a form of manufacturer/service provider wholesaling?
A sales office
Which of these is NOT an example of a merchant wholesaler?
A selling agent
High-value, perishable, and emergency goods dominate which transportation form?
Airways
Which statement concerning balanced tenancy is NOT correct?
Balanced tenancy planning occurs in both shopping centers and shopping districts.
Which statement concerning vending machines is correct?
Beverages and food items comprise the overwhelming majority of vending machine sales.
Which type of warehouse allows a firm to delay the payment of taxes until goods are sold?
Bonded
Which statement concerning cash-and-carry wholesaling is NOT correct?
Cash-and-carry wholesalers provide retailer members with prototype store designs, common promotional materials, and a common business name.
Which form of specialty store draws customers from a very wide geographic area?
Category killer
Which store location type is synonymous with the term "downtown?"
Central business district
Which of these is NOT a channel member?
Competitors
Which of these is NOT a channel function?
Customer contact
Which statement concerning department stores is NOT correct?
Department stores sell a deep variety of inexpensive and popularly priced merchandise.
No independent intermediaries are used in which type of distribution channel?
Direct
Which statement concerning direct marketing is NOT correct?
Direct selling is a form of direct marketing.
Which is the only merchant wholesaler that does NOT take physical possession of goods?
Drop shipper
Which of these wholesalers is NOT an agent or broker?
Drop shipper
Which wholesaler does NOT have warehouse facilities?
Drop shipper
Which of these wholesalers does NOT have storage facilities?
Drop shippers
A firm can most effectively implement a differentiated market segmentation strategy with which distribution strategy?
Dual channel of distribution
Which statement concerning independent retailers is NOT correct?
Due to their size, independent retailers have complex retail organizations.
Which statement concerning waterways is NOT correct?
Few new technological developments have affected waterway transportation.
Which of these reflects the major consumer appeal of a convenience store?
Fill-in merchandise
Joint advertising programs and the use of prototype store designs are common characteristics of which wholesaling format?
Franchise wholesalers
A common business format is often a characteristic of which two wholesaling formats?
Franchise wholesalers and wholesale cooperatives
In which wholesaling format are independent retailers likely to affiliate with an existing wholesaler?
Franchise wholesaling
Which of these is NOT a transportation service company?
Freight forwarders
Which specialized transportation form receives profits on the basis of the difference between carload (cl) and less than carload (lcl) rates?
Freight forwarders
The use of self-service, shopping carts, and lower-rent locations characterize which general merchandise-based retailer?
Full-line discount store
Which type of wholesale channel should be considered when a manufacturer/ service provider seeks an individual wholesaler that can perform the broadest range of distribution tasks?
Full-service merchant wholesalers
Which of these attributes best characterizes a combination store?
General merchandise that accounts for 25 to 40 percent of overall sales
Which wholesaler has a wide range of goods, but limited depth in each product line?
General-merchandise wholesaler
Which of the following is a major distribution planning function?
Inventory Management
Which store location type is LEAST able to attract consumers?
Isolated store
A producer of personal computers that desires to assume responsibility for all wholesaling tasks should undertake which form of wholesaling?
Manufacturer/service provider wholesaling
Which type of wholesale channel should be considered when a firm has a small group of large and geographically concentrated customers, and when rapid expansion is not a major goal of the firm?
Manufacturer/service provider wholesaling
Which of the following works for a number of noncompeting manufacturers?
Manufacturers'/service providers' agents
Which form of retail institution features the most austere atmosphere?
Membership warehouse club
Which of these is a characteristic of a manufacturer's/service provider's sales office?
No inventory is carried.
Which of the following activities best illustrates a manufacturer selling to the wholesaler?
Offering a large seasonal discount
Which of these reflects the major consumer appeal of a conventional supermarket?
One-stop grocery shopping
High fashion leadership, a broad and deep assortment, and the ability to generate customer traffic for a shopping district or shopping center are characteristics of which type of retail institution?
Traditional department store
Which retailer type has the greatest assortment?
Traditional department store
Which merchant wholesaler delivers merchandise but does NOT offer trade credit?
Truck/wagon wholesalers
The largest retailer in the world is
Wal-Mart.
Which wholesale format is owned by its member firms?
Wholesale cooperative
Which of these are major characteristics of intensive distribution?
Widespread market coverage and limited channel control
When a firm seeks to ship out 95 percent of its orders within five hours of receipt, it is involved with
a distribution standard.
An important characteristic of a direct channel of distribution is
a high level of channel control.
A central component to relationship marketing is
a long-term relationship among distribution intermediaries.
In a cold canvass form of direct selling,
a salesperson calls people or knocks on doors to find customers.
Retailers can attempt to increase their sales volume by
a. using one-stop shopping appeals. b. encouraging more family members to go shopping. c. increasing customer shopping frequency. d.all of the above.
Which type of independent wholesaler does NOT take title to goods?
agent
Computerized-checkout systems are used to increase retailer efficiency by
aiding in ordering appropriate products.
With a contractual channel arrangement,
all the terms regarding distribution tasks, prices, and other factors are clearly specified in writing for each member.
In a leased department operation,
an outside party rents retail space from a retail store operator.
Exterior, general interior, store layout, and interior displays are the basic components of a store's
atmosphere
Manufacturers'/service providers' agents sell only noncompetitive products to
avoid a conflict of interest among their manufacturers/service providers.
The major difference between agents and brokers is that agents are more likely to
be employed on a permanent basis.
Immediate product availability and low prices are the major competitive advantages of
cash-and-carry wholesalers.
A hypermarket can be classified as a form of
combination store.
From the perspective of a manufacturer/service provider, a major advantage of the use of agents and brokers (as opposed to merchant wholesalers) is that agents and brokers are
compensated on the basis of their sales performance.
The assorting element of the sorting process enables
consumers to have a broad selection of products.
Nonstore retailing consists of
direct marketing, vending machines, and direct selling.
Convenience for customers, coverage of a wide geographic area, and the ability to reach additional market segments are key characteristics of
direct marketing.
Video kiosks are a form of
direct marketing.
The order volume corresponding to the lowest sum of order-processing and inventory-holding costs is known as the
economic order quantity.
Channel members are able to exchange data via computer hookups through
electronic data interchange (EDI).
Which carrier is excused from legal restrictions and must only comply with safety rules?
exempt
A major limitation of the use of waterways is the limited season for shipment.
f
A manufacturer may have to develop consumer demand through a pushing strategy to encourage intermediaries to stock a new product.
f
A single manufacturer may employ multiple selling agents.
f
A supercenter is a form of department store.
f
Administered channel arrangements are typically longer than contractual channel arrangements.
f
Agents (brokers) are compensated on the basis of trade discounts from list prices, as well as quantity and seasonal discounts.
f
All wholesalers provide warehousing and delivery facilities.
f
Computerized checkouts have no impact on the need for price marking of merchandise.
f
Exclusive distribution can be characterized by broad market coverage (wide channels).
f
Final consumers are considered to be a distribution intermediary.
f
Full-service merchant wholesalers can be divided into general merchandise, specialty merchandise, cash-and-carry, and drop shipper types.
f
In a pulling strategy, the various firms in a distribution channel cooperate in the promotional efforts for a product.
f
Independent intermediaries are used in a direct channel of distribution.
f
Isolated store locations are most suitable for small retailers that have not yet developed high levels of consumer recognition and that require low-cost retail facilities.
f
Manufacturers' desire for brand loyalty and retailers' desire for store loyalty often result in channel cooperation.
f
Manufacturers'/service providers' agents usually assume responsibility for marketing the entire output of a manufacturer/service provider.
f
Nonstore retailing is comprised of vending machines, direct marketing, and flea market locations.
f
On average, full-service merchant wholesalers and limited-service merchant wholesalers receive the same compensation.
f
Retail franchising provides independent retailers with services (such as site location, management training, and promotional support) that are common to large chain organizations.
f
Selling to a wholesaler places a manufacturer's/supplier's sales emphasis on the final consumer.
f
Specialty-merchandise (limited-line) wholesalers seek to be the sole source of goods for the general-merchandise retailers which they serve.
f
Specialty-merchandise wholesalers usually handle a wide and shallow product line.
f
The concept of independent wholesalers being "in the middle" refers to their not knowing whether their allegiance should be to themselves or to their franchise holder.
f
The economic order quantity (EOQ) formula attempts to minimize inventory-holding costs.
f
The large amount of credit purchases contributes to the high average value of a retail transaction.
f
The major difference between agents and brokers is due to the commission arrangement used.
f
The major retailer in a neighborhood business district is a department store.
f
The purchase of goods and services by a contractor for the ultimate sale to final customers fits within the definition of wholesaling.
f
The smallest diversified food-based retailer in terms of average square footage per store is a combination store.
f
The sorting process consists of acquiring a broad range of products to offer the final consumer the convenience of one-stop shopping.
f
The term "direct selling" is synonymous with "direct marketing."
f
The total-cost approach to distribution is often used to justify the use of pipelines as a transportation alternative.
f
Too low an inventory turnover can cause a firm to lose quantity discounts or to be out of stock.
f
Total retail sales revenues are higher than total wholesale sales revenues.
f
Which type of warehouse allows a firm to use inventory as collateral for a loan?
field
Wholesaling includes all of the following channel members EXCEPT
final consumers.
In a just-in-time (JIT) inventory system,
firms order frequently and in lower quantities.
A diversified supermarket selling a broad range of food and nonfood items is a
food-based superstore.
In retail franchising, the franchisor usually receives payments in the form of
franchise fees and royalties.
Merchant wholesalers can be further classified as
full service and limited service.
Transportation service companies
handle shipments of small and moderate-sized packages.
A supercenter in the United States is known as a ___ in Europe.
hypermarket
A major benefit to a lessor of a leased department operation is
increased store traffic.
A major advantage of vertical integration (such as a manufacturer operating a factory outlet store) is that it
increases control over other channel members.
High failure rates, inadequate resources, and the highest degree of competition characterize which retail organizational format?
independents
A keiretsu is a(n)
integrated network of suppliers, manufacturers, and resellers.
In comparison to the distribution channel for final goods, the distribution channel for industrial goods
is more prone to use team selling.
Channel length refers to the
levels of independent members along a distribution channel.
The broad range of activities concerned with efficiently delivering raw materials, parts, semifinished items, and finished products to designated places, at designated times, and in proper condition constitutes
logistics
The three broad categories of wholesaling are
manufacturer/service provider wholesaling, merchant wholesaling, and agents and brokers.
A firm seeking to vertically integrate (such as a manufacturer's undertaking retail responsibilities through ownership) should utilize
manufacturer/service provider wholesaling.
Complementary products of multiple manufacturers/service providers are distributed in exclusive sales territories by
manufacturers'/service providers' agents.
Channel width refers to the
number of independent channel members at any stage of distribution.
The period from the date of an order until the date items are ready to sell or use is the
order lead time.
A benefit of retail franchising to a franchisor is that
owner-operators are heavily motivated.
Wholesale cooperatives are most popular in (for)
ownership
The basic difference between franchise wholesaling and wholesale cooperatives is based on
ownership.
Functional discounts reflect deductions from list price for
performing storage, shipping, and other jobs.
What type of warehouse is most appropriate for a firm with stable inventory levels throughout the year?
private
The major objective of inventory management is to
provide a continuous flow of goods.
Merchant wholesalers can be differentiated from other forms of wholesalers in that they
purchase, take title, and take possession of products.
Which wholesaler is most likely to sell nonfood items to supermarkets?
rack jobber
The U.S. transportation form with the largest share of ton miles shipped is
railroads
At least one or two department stores and up to 100 or more smaller stores comprise a
regional shopping center.
The majority of retail sales are made through
retail chains.
The integrated combination of hours, location, assortment, service, advertising, prices, and other factors retailers employ is referred to as the
retail store strategy mix.
When manufacturers, wholesalers, and service sponsors sell goods and services to final consumers for personal, family, or household use, they are engaged in
retailing
If a retailer adds product lines that are unrelated to each other and the firm's original business, it is involved with
scrambled merchandising.
A broker's fee is generally paid by the
seller
Vertical integration (such as a manufacturer operating a factory outlet store) enables the manufacturer to
shorten its distribution channel.
Retail chains are characterized by
specialization, standardization, and elaborate control systems.
A category killer is a form of
specialty store.
The number of times during a stated period (usually one year) that the average inventory on hand is sold is known as
stock turnover
A combination store that integrates an economy supermarket with a discount department store is a
supercenter.
The food-oriented retailer with the largest average store size and the broadest product mix is a
supercenter.
Price policy, conditions of sale, territorial rights, the services/responsibility mix, and contract length and conditions of termination are clearly outlined in
supplier/distribution intermediary contracts.
A category killer is a form of specialty store.
t
A common restrictive covenant in most retail shopping centers - restrictions as to merchandise that can be sold by each retailer - relates to balanced tenancy.
t
A department store is more diversified than a specialty store.
t
A firm can best appeal to multiple market segments through a dual channel of distribution.
t
A good or service can be sold through two or more levels of wholesalers.
t
A key factor in relationship marketing is the long-term nature of relationships in distribution.
t
A major distinction between traditional department stores and full-line discount stores is the presence of fashion leadership and the greater importance of apparel in department stores.
t
A manufacturer that sells through its wholesalers needs to concentrate its sales efforts on final consumers.
t
A product typically moves from exclusive to intensive distribution as it passes from the introduction to the growth stages in the product life cycle.
t
A supplier/distribution intermediary contract covers such factors as pricing, conditions of sale, territorial rights, the services/responsibility mix, contract length, and conditions of termination.
t
A wholesaler can act as a retailer when it sells products directly to the final consumer.
t
Annual U.S. retail store sales exceed $10 trillion.
t
As contrasted with final consumer products, industrial products are more likely to be marketed through distinct intermediaries that specialize in industrial products.
t
Car dealers and antique stores often seek out string locations due to the compatibility of offerings by competitors.
t
Cash-and-carry wholesalers are often used by firms for fill-in merchandise as an alternative to their regular wholesaler.
t
Channel width may be reduced through horizontal integration (such as a wholesaler purchasing a competing wholesaler).
t
Commission merchants can negotiate prices with buyers, provided that the prices are not below the sellers' stated minimums
t
Containerization greatly facilitates the efficiency of intermodal shipping.
t
Despite the development and use of the dollar-bill changer, sales of products in vending machines remain concentrated in beverages and food items.
t
Drop shippers are the only merchant wholesalers that do not have facilities for storing the goods that they sell.
t
Food brokers, like manufacturers'/service providers' agents, operate in specific geographic locations and work for a limited number of producers/manufacturers.
t
General-merchandise (full-line) wholesalers usually provide close to one-stop shopping for their customers.
t
Government parcel post, private parcel, and specialized express companies are the three major forms of transportation service companies.
t
Impulse sales are particularly important to retailers.
t
In a leased department, the leased department operator benefits from the store traffic and the prestige of the lessor.
t
In direct marketing, a seller first communicates with consumers via nonpersonal media; the customer then orders merchandise via mail, telephone, or PC.
t
Intermediaries are typically compensated through the use of both functional discounts and commissions.
t
Keiretsus can be either vertical or horizontal.
t
Manufacturer/service provider wholesaling is most likely to occur if customers are few in number and important in terms of sales potential.
t
Manufacturer/service provider wholesaling is most likely to occur when a manufacturer/service provider seeks to totally control the development and implementation of its distribution strategy.
t
Manufacturers and final consumers are considered to be channel members.
t
Many leased departments specialize in goods and services in which the lessor has little expertise (such as fine jewelry or photographic studios).
t
Membership warehouse clubs appeal to both final and organizational consumers.
t
Merchant wholesalers may be either full service or limited service.
t
Merchant wholesalers purchase, take title, and take possession of products for further resale.
t
Of the major transportation forms, pipelines carry the narrowest range of products.
t
Outsourcing is an important decision in formulating the total delivered product.
t
Rack jobbers provide generous trade credit terms to their customers.
t
Scrambled merchandising results in the broadening of a retailer's product mix.
t
Stock turnover can be calculated in terms of units or dollars.
t
The United States, Europe, and Japan account for the majority of the world's mail-order business
t
The four basic components of store atmosphere are image, advertising, store sales personnel, and catalogs.
t
The retail categories of "chain," "franchise," and "convenience store" are not mutually exclusive.
t
The smallest category of wholesalers in terms of both sales and number of establishments is agents and brokers.
t
The sorting process makes one-stop shopping possible for final consumers.
t
The three broad wholesaling categories are manufacturer/service provider wholesaling, merchant wholesaling, and agents and brokers.
t
The transportation form with the lowest per-mile cost may have the highest total costs (according to the total-cost approach) because of the slowness of shipments.
t
The use of independent wholesalers allows a manufacturer to reach small accounts that it could not profitably reach through manufacturer/service provider wholesaling.
t
The wheel of retailing theory seeks to explain retail institutional change in terms of the importance of cost leadership of innovators.
t
There are two components to a value chain: the value chain itself and the value delivery chain.
t
To retailers, a just-in-time inventory system is known as a quick response inventory system.
t
While chains account for just 25 percent of all U.S. retail units, they account for over half of all retail sales.
t
Wholesale activities by a manufacturer or service provider can be undertaken through sales and/or branch offices.
t
Wholesale cooperatives can be either producer- or retailer-owned.
t
The sorting process enables
the conflicting goals of manufacturers and consumers to be resolved.
With an administered channel arrangement,
the dominant firm in the distribution process plans the marketing program and itemizes and coordinates each member's duties.
A wholesaler can best protect itself from premature termination from a manufacturer through a contract provision stating
the length of the supplier/distribution intermediary contract.
Selling through the wholesaler means that
the retailer or final consumer is the object of manufacturers'/service providers' interest.
The transportation method with the lowest shipping cost may not be selected due to its high inventory-carrying costs. This illustrates
the total-cost approach.
In a pushing strategy,
the various firms in a distribution channel cooperate in marketing a product.
Selling to the wholesaler means that
the wholesaler is viewed as a customer who must be researched and satisfied.
Wholesalers' being "in the middle" means that
wholesalers don't know who should receive their loyalty: their manufacturer/service providers or their own customers.
Retailers are carrying labor-saving devices, lengthening store hours, and expanding catalog and phone sales efforts so as to better attract
working women.
Which wholesaler assumes responsibility for marketing the entire output of a manufacturer?
Selling agents
Which of these retailers has the deepest product assortment?
Specialty store
Which merchant wholesaler has a narrow, but deep product mix?
Specialty-merchandise wholesaler
Which wholesale function is NOT provided by selling agents?
Taking title to products
Which statement concerning a value delivery chain is NOT correct?
The consumer is not a part of a value delivery chain.
Which of these are major characteristics of exclusive distribution?
The highest degree of channel control, but limited sales potential
Which of these is NOT a major recent wholesaling trend?
The increased percentage of wholesale sales by manufacturer wholesalers
Which statement concerning the value chain is NOT correct?
The parties in a value chain typically have common goals.
Which of these activities is NOT considered part of retailing?
The sale of a car to a corporation for use by top executives
Which of these activities does NOT involve a wholesaling transaction?
The sales of pharmaceuticals to final consumers for self-testing
Which of these is a characteristic of a manufacturer's/service provider's branch office?
The sales office includes facilities for warehousing and selling goods.
Which statement concerning motor carriers is NOT correct?
The trucking industry has not yet been deregulated
Which statement concerning airways is NOT correct?
The use of airways generally requires the use of regional warehouses.
The concept that retail innovators appear as low-cost operators is central to which retail theory?
The wheel of retailing
Which statement concerning drop shippers is correct?
They arrange direct shipments from suppliers to customers.
Which of the following is generally NOT considered a function of all wholesalers?
To take title and possession of goods
Which type of store location is centrally owned and managed, and based on balanced tenancy?
Planned shopping center
With which distribution approach would a company first seek to generate final consumer demand and then secure dealer support?
Pulling strategy
Which wholesaler sells self-service merchandise on the basis of consignment sales?
Rack jobber
Which statement concerning railroads is correct?
Railroads often ship items that are too heavy for motor carriers.
A set business format, the use of an established name, strict operating controls, and motivated owner-operators are major characteristics of which form of retail institution?
Retail franchising
Which of these statements concerning wholesaling is NOT correct?
Retail sales revenues are higher than wholesale sales revenues.
Which unplanned shopping area generally contains at least one branch department store and a broad grouping of specialty and convenience stores?
Secondary business district
Which unplanned shopping area is bounded by the intersection of two major streets but has less assortment and a smaller trading area than a central business district?
Secondary business district