Chapter 16 - Practice Problems

Who provides the environment in which exchanges with ultimate consumers occur? a) Retailers b) Wholesalers c) Catalogers d) Telemarketers e) Producers

a) Retailers

Which type of retail outlet can have up to 200,000 square feet? a) Superstores b) Supermarkets c) Discount stores d) Department stores e) Category killers

a) Superstores

Compared with other types of retailers, department stores compete mainly on the basis of a) customer services. b) low prices. c) a very deep assortment of a few specific products. d) high sales volume. e) catalog sales.

a) customer services.

Nordstrom's, Macy's, and JC Penney's are all considered a) department stores. b) discount stores. c) off-price retailers. d) specialty retailers. e) category killers.

a) department stores.

Self-service, general merchandise stores such as Kmart are known as a) discount stores. b) warehouse showrooms. c) catalog showrooms. d) superstores. e) specialty retailers.

a) discount stores.

By locating in the same general vicinity as other car dealerships, Hartfield Honda can a) facilitate comparison shopping. b) create form utility. c) facilitate wholesale exchanges. d) create possession utility. e) create exchange utility.

a) facilitate comparison shopping.

Which of the following was developed in 1927 to supply milk, eggs, and other products for customers replenishing their ice boxes? a) Supermarkets b) Convenience stores c) Discount stores d) Department stores e) Specialty stores

b) Convenience stores

Laura goes to Walmart and buys some clothing, a DVD, and all the groceries she needs for her family. What type of retailer is this particular Wal-Mart? a) Supermarket b) Superstore c) Hypermarket d) Discount store e) Department store

b) Superstore

Which of the following is a large-scale, members-only, retailer that combines cash-and-carry wholesaling with discount retailing? a) Warehouse showroom b) Warehouse club c) Catalog showroom d) Category killer e) Hypermarket

b) Warehouse club

If a store has areas for men's apparel, women's apparel, housewares, cosmetics, and jewelry and competes mostly on the basis of service, it is a(n) a) off-price retailer. b) department store. c) discount store. d) superstore. e) supermarket.

b) department store.

Ollies' is a regional self-service retail store that sells name-brand electronics, tools, housewares, and sporting goods at low prices. Ollies' is an example of a a) department store. b) discount store. c) warehouse showroom. d) specialty store. e) superstore.

b) discount store.

Supermarkets, discount stores, and hypermarkets can all be classified as a) superstores. b) general merchandise retailers. c) department stores. d) specialty retailers. e) off-price retailers.

b) general merchandise retailers.

After shopping in the same store for nearly two hours, Chelsea goes to Burger King for a Whopper, while Cynthia goes to the optical shop to see if her contacts are ready. They engage in these activities without leaving the store in which they have been shopping. They are most likely in a a) superstore. b) hypermarket. c) department store. d) general merchandise retailer. e) discount store.

b) hypermarket.

Retailing is best characterized as a) large organizations that carry wide and deep product mixes. b) transactions in which the buyer intends to consume the product through personal, family, or household use. c) arrangements whereby a supplier grants a dealer the right to sell its products. d) transactions in which the purchaser intends to use the product for resale or for business operations. e) exchanges that take place only in a store or service establishment.

b) transactions in which the buyer intends to consume the product through personal, family, or household use.

A small self-service store that is open long hours and carries a narrow product assortment in convenient locations is best described as a a) discount store. b) department store. c) convenience store. d) supermarket. e) category killer.

c) convenience store.

Walmart and Target are both examples of a) department stores. b) category killers. c) discount stores. d) supermarkets. e) warehouse clubs.

c) discount stores.

Any organization that purchases products for the purpose of reselling them to ultimate consumers is a(n) a) wholesaler. b) shopping center. c) retailer. d) intermediary. e) producer.

c) retailer.

Large, self-service stores that carry a complete line of food products and some nonfood products are called a) discount stores. b) superstores. c) supermarkets. d) department stores. e) warehouse clubs.

c) supermarkets.

A retailer is an organization that purchases products for the purpose of reselling them to a) other retail organizations. b) the government. c) ultimate consumers. d) wholesalers. e) nonprofit organizations.

c) ultimate consumers.

What is the primary distinction between superstores and hypermarkets? a) Superstores offer a wider variety of products than hypermarkets. b) Superstores offer low prices while hypermarkets have moderate to high prices. c) Hypermarkets have fewer departments but deeper product lines than superstores. d) Hypermarkets are larger and have more types of products than superstores. e) These two types of retailers carry very different types of products.

d) Hypermarkets are larger and have more types of products than superstores.

As discount stores improve their services and atmosphere as well as raise their prices, the distinction between discount stores and ____ is becoming blurred. a) superstores b) supermarkets c) specialty stores d) department stores e) category killers

d) department stores

Direct selling, direct marketing, and vending machines are all examples of a) producing. b) advertising. c) promoting. d) retailing. e) wholesaling.

d) retailing.

Kroger, Safeway, and Publix are all considered a) superstores. b) groceries. c) department stores. d) supermarkets. e) food stores.

d) supermarkets.

Which type of retailer generally accepts lower margins than traditional retailers in exchange for higher sales volume? a) Department stores b) Traditional specialty retailers c) Warehouse showrooms d) Direct marketers e) Discount stores

e) Discount stores

A large retailer selling food and most routinely purchased consumer products is a a) hypermarket. b) supermarket. c) discount store. d) Warehouse club e) Superstore

e) Superstore

A general merchandise retailer offers a) a single product line that is stocked in depth. b) few product lines with deep assortments of these lines. c) few choices of a large variety of product lines. d) products through the Internet and catalogs only. e) a variety of product lines that are stocked in depth.

e) a variety of product lines that are stocked in depth.

Wal-Mart, Macy's, Nordstrom's, and Toys "R" Us are examples of a) manufacturers. b) merchant wholesalers. c) end-users. d) agents. e) retailers.

e) retailers.

Jack Ingalls gets a shopping list from his wife. On the list are a potted plant, fresh salmon, motor oil, bread, milk, and a birthday cake. To make just one stop to save time, Jack should go to a(n) a) convenience store. b) off-price retailer. c) specialty store. d) franchiser. e) supermarket.

e) supermarket.

Retailers that sell only to members and feature discount retailing combined with cash-and-carry wholesaling are called a) hypermarkets. b) retail groups. c) warehouse showrooms. d) discount stores. e) warehouse clubs.

e) warehouse clubs.