Question 1

Figure 13-4
-According to Figure 13-4 above, if D represents the entry of new forms of the outlet into categories where older ones exist, where would you typically find the highest prices, margins, and status?

Accepted Answer

A)   A
B)   B
C)   C
D)   D
E)   A and DF) D) and E)
G) None of the above

Question 2

Boston Pizza wants to determine how effective its retail space is compared to other pizza establishments in the local area. The calculation for this indicator is arrived at by determining the ________ for its store and comparing it against the same indicator for all of the other local pizza outlets.

Accepted Answer

A)   same-store gross margin
B)   same-store sales growth
C)   sales per square foot
D)   net profit
E)   same-store net present valueF) None of the above
G) C) and E)

Question 3

Originally, filters for Mr. Coffee electric-drip coffeemakers were sold through appliance and mass merchandise stores. If the company decided to sell the filters in grocery stores where customers purchased their coffee, what type of intermediaries would the company most likely hire?

Accepted Answer

A)   a full-line wholesaler
B)   a drop shipper
C)   a food broker
D)   a truck jobber
E)   a manufacturer's representativeF) A) and E)
G) A) and D)

Question 4

A retailer bought a collectible Precious Moments figurine for $26. She sets the initial selling price at $60. The final selling price was $52. What was the maintained markup?

Accepted Answer

A)   $112
B)   $52
C)   $26
D)   $34
E)   $86F) B) and E)
G) A) and D)

Question 5

In the telemarketing industry, issues such as ________, ethical guidelines, and industry standards have become a topic of discussion among consumers, Congress, the Federal Trade Commission (FTC) , and businesses.

Accepted Answer

A)   competitive antics
B)   coercion tactics
C)   freedom of speech
D)   language issues
E)   consumer privacyF) A) and B)
G) A) and C)

Question 6

A high-end department store that offers on-site alterations and tailoring, personalized offers for rewards members, and in-store and live chat with beauty, design, and wedding specialists would be considered

Accepted Answer

A)   full service.
B)   limited service.
C)   self-service.
D)   restricted service.
E)   functional service.F) B) and D)
G) D) and E)

Question 7

The variety of different items a store carries is referred to as the

Accepted Answer

A)   retailing mix.
B)   depth of product line.
C)   breadth of product line.
D)   width of product line.
E)   length of product line.F) None of the above
G) A) and B)

Question 8

A group of 50 to 150 stores that typically attract customers who live or work within a 5- to 10-mile range, often containing two or three anchor stores, is referred to as

Accepted Answer

A)   a power center.
B)   a regional shopping center.
C)   a strip mall.
D)   a central business district.
E)   an urban megacenter.F) D) and E)
G) A) and D)

Question 9

Your neighborhood dry cleaner or florist is likely to be categorized as an independent retailer. This means it is owned by

Accepted Answer

A)   an individual.
B)   a conglomerate.
C)   a consortium.
D)   a corporate chain.
E)   a cooperative.F) None of the above
G) C) and E)

Question 10

What type of contractual system describes a situation in which assistance in selecting the location, setting up the store or facility, advertising, and training personnel is provided by the parent company?

Accepted Answer

A)   administered system
B)   conglomerate system
C)   franchise system
D)   vertical integrated system
E)   retail-sponsored cooperativeF) B) and C)
G) A) and E)

Question 11

When Home Depot switched its in-store light fixture displays to compact fluorescent light and LED bulbs, painted the roofs of its stores white, and installed solar panels, it reduced its energy use by ________ percent.

Accepted Answer

A)   5
B)   10
C)   15
D)   20
E)   25F) A) and D)
G) A) and C)

Question 12

Limited- and single-line stores are often referred to as

Accepted Answer

A)   specialty outlets.
B)   general merchandise stores.
C)   scrambled merchandise stores.
D)   intertype outlets.
E)   hypermarkets.F) B) and C)
G) B) and E)

Question 13

The development of today's "smart store" includes each of the following except which?

Accepted Answer

A)   biometric scanning
B)   Internet-of-Things
C)   artificial intelligence selling
D)   wearable technology
E)   virtual realityF) None of the above
G) A) and B)

Question 14

A limited-service wholesaler that performs all channel functions and sells on consignment to retailers, which means it retains the title to the products displayed and bills retailers only for the merchandise sold, is a

Accepted Answer

A)   truck jobber.
B)   transport vendor.
C)   rack jobber.
D)   cash and carry wholesaler.
E)   drop shipper.F) B) and C)
G) C) and D)

Question 15

Which of the following statements regarding corporate chains is most accurate?

Accepted Answer

A)   Corporate chains cannot bargain with a manufacturer to obtain product volume discounts due to federal anticompetitive legislation-the Clayton Act as amended by the Sherman Act.
B)   Corporate chains generally own most if not all of their suppliers-a practice known as forward integration-so they can save distribution costs.
C)   Consumers have fewer choices in merchandise since all buying decisions are made by a decentralized buying committee.
D)   Corporate chains offer the least benefit to consumers since they are the farthest removed from the ultimate consumer.
E)   Corporate chains are multiple outlets under common ownership.F) A) and B)
G) A) and C)

Question 16

According to the retail life cycle, in which stage would market share rise gradually, although profits may be low because of start-up costs?

Accepted Answer

A)   decline
B)   maturity
C)   introduction
D)   accelerated development
E)   early growthF) C) and E)
G) B) and C)

Question 17

Neighborhood grocers that work together with several other independent grocers that all agree to buy their goods directly from food manufacturers is

Accepted Answer

A)   a retailer-sponsored cooperative.
B)   a consortium system.
C)   an administrative system.
D)   a conglomerate system.
E)   a contractual horizontal marketing system.F) B) and D)
G) A) and B)

Question 18

The largest percentage of products sold from vending machines are

Accepted Answer

A)   candy and snacks.
B)   personal items.
C)   movies and videos.
D)   cold beverages.
E)   food.F) None of the above
G) All of the above

Question 19

Loblaws, a Canadian supermarket, features fruits and vegetables piled high on tables that have umbrellas. The idea behind this arrangement was to give Loblaws "a market feel." In terms of the retailing mix, this tactic is related to

Accepted Answer

A)   pricing.
B)   goods and services factor.
C)   communication.
D)   merchandise.
E)   location.F) A) and E)
G) A) and B)

Question 20

Stores that carry tremendous depth in one primary line of merchandise are referred to as

Accepted Answer

A)   hypermarkets.
B)   intertype outlets.
C)   scrambled merchandise stores.
D)   limited-line stores.
E)   single-line stores.F) B) and E)
G) A) and D)

Exam 13: Retailing and Wholesaling

Correct AnswerverifiedShow Answer

Neighborhood grocers that work together with several other independent grocers that all agree to buy their goods directly from food manufacturers is

Correct AnswerverifiedShow Answer

The development of today's "smart store" includes each of the following except which?

Correct AnswerverifiedShow Answer

A limited-service wholesaler that performs all channel functions and sells on consignment to retailers, which means it retains the title to the products displayed and bills retailers only for the merchandise sold, is a

Correct AnswerverifiedShow Answer

What type of contractual system describes a situation in which assistance in selecting the location, setting up the store or facility, advertising, and training personnel is provided by the parent company?

Correct AnswerverifiedShow Answer

In the telemarketing industry, issues such as ________, ethical guidelines, and industry standards have become a topic of discussion among consumers, Congress, the Federal Trade Commission (FTC) , and businesses.

Correct AnswerverifiedShow Answer

Stores that carry tremendous depth in one primary line of merchandise are referred to as

Correct AnswerverifiedShow Answer

A high-end department store that offers on-site alterations and tailoring, personalized offers for rewards members, and in-store and live chat with beauty, design, and wedding specialists would be considered

Correct AnswerverifiedShow Answer

When Home Depot switched its in-store light fixture displays to compact fluorescent light and LED bulbs, painted the roofs of its stores white, and installed solar panels, it reduced its energy use by ________ percent.

Correct AnswerverifiedShow Answer

Originally, filters for Mr. Coffee electric-drip coffeemakers were sold through appliance and mass merchandise stores. If the company decided to sell the filters in grocery stores where customers purchased their coffee, what type of intermediaries would the company most likely hire?

Correct AnswerverifiedShow Answer

According to the retail life cycle, in which stage would market share rise gradually, although profits may be low because of start-up costs?

Correct AnswerverifiedShow Answer

Figure 13-4 -According to Figure 13-4 above, if D represents the entry of new forms of the outlet into categories where older ones exist, where would you typically find the highest prices, margins, and status?

Correct AnswerverifiedShow Answer

Limited- and single-line stores are often referred to as

Correct AnswerverifiedShow Answer

Your neighborhood dry cleaner or florist is likely to be categorized as an independent retailer. This means it is owned by

Correct AnswerverifiedShow Answer

Loblaws, a Canadian supermarket, features fruits and vegetables piled high on tables that have umbrellas. The idea behind this arrangement was to give Loblaws "a market feel." In terms of the retailing mix, this tactic is related to

Correct AnswerverifiedShow Answer

A retailer bought a collectible Precious Moments figurine for $26. She sets the initial selling price at $60. The final selling price was $52. What was the maintained markup?

Correct AnswerverifiedShow Answer

The variety of different items a store carries is referred to as the

Correct AnswerverifiedShow Answer

A group of 50 to 150 stores that typically attract customers who live or work within a 5- to 10-mile range, often containing two or three anchor stores, is referred to as

Correct AnswerverifiedShow Answer

The largest percentage of products sold from vending machines are

Correct AnswerverifiedShow Answer

Which of the following statements regarding corporate chains is most accurate?

Correct AnswerverifiedShow Answer

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