13
102) Full-service retailers, such as Sears or JC Penney, provide more sales assistance because they carry more shopping goods about which customers need information.
false
101) Wholesaling includes all the activities involved in selling products or services directly to final consumers for their personal, nonbusiness use.
false
100) Which of the following would be the most logical way for Indiana Wood to expand? A) establishing an online presence B) pursuing retail convergence C) implementing RFID inventory tracking D) establishing a community-gathering environment in the store E) joining a producers' cooperative
a
12) 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
a
14) 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
a
19) ________ have filled the ultralow-priced, high-volume gap by buying at less-than-regular wholesale prices and charging consumers less than retail. A) Off-price retailers B) Discount stores C) Convenience stores D) Chain stores E) Limited-service retailers
a
24) ________ 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
a
25) ________ 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
a
28) Merchandising ________ are corporations that combine several different retailing forms under central ownership. A) conglomerates B) agents C) brokers D) franchises E) independents
a
36) 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
a
42) 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
a
50) 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
a
58) ________ 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
a
70) Like retailers, wholesalers must ________ their target markets and ________ themselves effectively, for they cannot serve everyone. A) define; position B) position; define C) discount; franchise D) franchise; discount E) identify; compare
a
82) In the battle for "share of stomachs," some supermarkets are cutting costs and attempting to compete more effectively with food discounters, while others 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
a
83) 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 changed its ________. A) positioning B) wholesaler C) service level D) size E) relative prices
a
85) Costco's surprise offerings of seconds, overstocks, and closeoutsoccasionally including diamondsis 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
a
87) 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
a
91) 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
a
93) You own an 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
a
1) ________ 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
b
17) ________ sell standard merchandise at 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
b
22) ________ 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
b
26) 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
b
29) Retail assortments are looking more and more alike because ________. A) customers today are more focused on service differentiation B) national-brand manufacturers have placed 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"
b
3) ________ 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
b
31) Service differentiation among retailers has ________. A) increased B) decreased C) stayed the same D) franchised E) tripled
b
35) 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
b
38) 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
b
44) 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
b
45) 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
b
46) 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
b
48) 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
b
54) Retail convergence is a merging of all of the following EXCEPT ________. A) consumers B) employees C) products D) prices E) retailers
b
6) 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
b
60) 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
b
67) ________ 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
b
68) A(n) ________ brings buyers and sellers together and assists in negotiations. A) agent B) broker C) retailer D) wholesaler E) retail convergence
b
7) ________ 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
b
72) 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
b
73) 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
b
74) 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
b
78) 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
b
79) 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
b
8) 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
b
84) 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
b
86) Home Depot offers "how-to" classes for do-it-yourselfers, featuring instructions on how to complete home improvement projects using 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
b
9) 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
b
90) 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 motivated by deals on last year's merchandise and seconds.
b
94) 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
b
95) 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
b
16) ________ retailers in the United States are growing faster than product retailers. A) Discount B) Merchant C) Service D) Specialty E) Off-price
c
18) 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
c
23) 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
c
27) The main difference between ________ organizations and other contractual systems is that these systems are normally based on some unique product or service. A) voluntary chain B) retailer cooperative C) franchise D) agent E) warehouse-club
c
30) Until 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; position B) target; compete with C) define; profile D) limit; serve E) divest; eliminate
c
33) 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
c
34) 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
c
40) 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
c
43) Most shopping centers are ________ containing between 5 and 15 stores; they are close and convenient for consumers. A) community shopping centers B) power centers C) strip malls D) lifestyle centers E) factory outlets
c
47) 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
c
49) 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 service E) increasingly sophisticated search engines
c
5) 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 passed along to the customer? A) self-service stores B) category killer stores C) full-service stores D) independent stores E) specialty-service retailers
c
53) 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
c
55) 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
c
56) 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
c
57) ________, 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
c
59) ________ buy mostly from producers and sell to retailers and industrial consumers. A) Independents B) Factory outlets C) Wholesalers D) Discount stores E) Megaretailers
c
69) ________, or manufacturers' representatives, represent a buyer or seller on a more permanent basis. A) Brokers B) Franchises C) Agents D) Retailers E) Intermediaries
c
76) 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
c
81) 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
c
89) 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
c
99) The Amish decor and shop workers give customers an authentic impression of the pride and skill built into the shop's products. These aspects also contribute to the store's ________.
c
10) ________ 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
d
11) 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
d
13) Which type of store is much larger than regular supermarkets and offers a large assortment of routinely purchased food products, nonfood items, and services? A) category killer B) chain C) factory outlet D) superstore E) off-price
d
2) 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
d
20) 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
d
21) ________, which buy at less-than-regular wholesale prices 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
d
32) 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
d
37) Of the following, what would most retailers consider to be the most important factor in retailing success? A) fair prices B) good atmosphere C) helpful employees D) location E) service
d
39) ________ 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
d
4) ________, 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
d
41) 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
d
51) 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
d
52) Convergence means greater ________ for retailers and greater difficulty in ________ offerings. A) differentiating; pricing B) sales; differentiating C) profit margins; sales D) competition; differentiating E) branding; differentiating
d
61) Which of the following is NOT one of a wholesaler's channel functions? A) financing B) risk bearing C) providing market information D) off-price retailing E) bulk-breaking
d
62) 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 building D) warehousing E) bulk breaking
d
63) 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
d
64) 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
d
65) ________ 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) Manufacturer sellers C) Agents D) Merchant wholesalers E) Specialty wholesalers
d
66) 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
d
71) 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 shipper C) rack jobber D) producer's cooperative E) truck jobber
d
77) 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
d
80) 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 stores E) factory outlets
d
88) 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.
d
15) Service retailers include all of the following EXCEPT ________. A) hotels and motels B) airlines C) movie theaters D) bowling alleys E) convenience stores
e
75) 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
e
92) 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
e
96) 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 this 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
e
