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