Question 1

A number of U.S.-based retail chains use special check-out lanes and terminals instead of clerks.This is an example of what level of service?

Accepted Answer

A)  full-service
B)  self-service
C)  limited-service
D)  customized-service
E)  functional-serviceF) A) and D)
G) A) and C)

Question 2

Franchising is attractive for the franchisee because

Accepted Answer

A)  it gives the franchisee complete control over the delivery and presentation of merchandise.
B)  the license fees paid to the franchisor are the only fees the franchisee pays.
C)  it relieves the franchisee from any company or product liabilities.
D)  it offers the franchisee the opportunity to enter into a well-known,established business where managerial advice is provided.
E)  the franchisee is completely his or her own boss.F) A) and B)
G) B) and E)

Question 3

Retailing refers to all activities involved in the

Accepted Answer

A)  selling,renting,and providing of products and services to ultimate consumers for personal,family,or household use.
B)  selling of tangible products to ultimate consumers for personal,family,or household use.
C)  selling of tangible products to ultimate consumers for personal,household,or industrial use.
D)  selling,renting,leasing,or reselling of products and services to ultimate consumers or small industrial users.
E)  selling,renting,and providing of products and services without retaining the title to these offerings.F) A) and D)
G) None of the above

Question 4

The wholesalers most prevalent in the hardware,drug,and clothing industries would be __________.

Accepted Answer

A)  specialty wholesalers
B)  full-line wholesalers
C)  cash and carry wholesalers
D)  limited-line wholesalers
E)  universal wholesalersF) A) and D)
G) A) and C)

Question 5

Costco requires customers to perform many shopping functions during the purchasing process and all nonessential customer services have been eliminated.What level of service does Costco offer?

Accepted Answer

A)  limited-service
B)  full-service
C)  customized-service
D)  self-service
E)  restricted-serviceF) A) and B)
G) None of the above

Question 6

Retailers have come to realize that consumers want to purchase products from those retailers with similar __________.

Accepted Answer

A)  offerings
B)  ideologies
C)  interests
D)  locations
E)  pricing strategiesF) B) and E)
G) A) and B)

Question 7

Family Dollar,Dollar General,and the Dollar Tree are examples of which type of retailer?

Accepted Answer

A)  warehouse club
B)  hypermarket
C)  outlet store
D)  everyday value retailer
E)  extreme value retailerF) C) and E)
G) A) and D)

Question 8

Mejeirs operates a chain of hypermarkets headquartered in Michigan,which means it

Accepted Answer

A)  engages in no intertype competition.
B)  is a disintermediator.
C)  uses scrambled merchandising.
D)  can also be referred to as a category killer.
E)  uses dual distribution.F) A) and C)
G) A) and E)

Question 9

Which of the following firms has made the wisest wholesaler choice for its product?

Accepted Answer

A)  Hannah's Hardware uses a rack jobber for its hammers.
B)  Fiona's Floral uses a truck jobber for its cut roses.
C)  Sam's Coal Country uses a truck jobber for its subway cars.
D)  Shayna's Superior Supplies uses a desk jobber for its staplers.
E)  Josh's Jackhammers uses a rack jobber for its hard hats.F) C) and E)
G) B) and E)

Question 10

To increase the demand for complementary products,the price of a product often is

Accepted Answer

A)  marked up
B)  marked down
C)  off-priced
D)  value-subtracted
E)  maintainedF) A) and E)
G) A) and B)

Question 11

When retailers set prices on new models or styles of products,the price of existing models often is __________ to quickly sell them.

Accepted Answer

A)  marked up
B)  off-priced
C)  value-added
D)  marked down
E)  maintainedF) None of the above
G) A) and E)

Question 12

Another term for maintained markup is __________.

Accepted Answer

A)  original markup
B)  maintained markup
C)  markdown
D)  gross margin
E)  net marginF) D) and E)
G) A) and E)

Question 13

Describe the retail life cycle.

Accepted Answer

The retail life cycle describes the proc...

Question 14

Apple has approximately what amount of sales per square foot according to the UMD16A: Sales per Square Foot Marketing Dashboard above?

Accepted Answer

A)  $300
B)  $600
C)  $900
D)  $3,500
E)  $5,400F) A) and D)
G) A) and B)

Question 15

Independently owned stores that band together to act like a chain are referred to as __________.

Accepted Answer

A)  corporate chains
B)  cooperative marketing systems
C)  contractual systems
D)  regional shopping centers
E)  self-service systemsF) D) and E)
G) C) and E)

Question 16

Wholesalers who simply solicit orders from retailers and other wholesalers and have the merchandise shipped directly from a producer to a buyer are referred to as __________.

Accepted Answer

A)  cash and carry wholesalers
B)  rack jobbers
C)  drop shippers
D)  truck jobbers
E)  manufacturer's representativesF) C) and D)
G) A) and B)

Question 17

The __________ is a financial term that measures the dollars added the cost the retailer paid for a product to arrive at the initial selling price.

Accepted Answer

A)  maintained markup
B)  original markup
C)  return on investment
D)  markup
E)  markdownF) B) and E)
G) B) and D)

Question 18

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) B) and D)

Question 19

Online retail purchases by consumers can be the result of several very different approaches,which include: (1) paying dues to become a member of an online discount service; (2) using a shopping "bot" to search for a product at locations with the best price; (3) going directly to online malls;and (4)

Accepted Answer

A)  becoming a member of a research group that evaluates new products.
B)  becoming a secret shopper.
C)  participating in an online auction.
D)  participating in a buying cooperative.
E)  using direct selling.F) C) and D)
G) A) and E)

Question 20

Outlets where customers are responsible for most shopping activities,although salespeople are available in some departments,would be classified as __________ retail outlets.

Accepted Answer

A)  limited-service
B)  exclusive-service
C)  minimal-service
D)  self-service
E)  full-serviceF) A) and B)
G) C) and D)

Exam 16: Retailing and Wholesaling

Wholesalers who simply solicit orders from retailers and other wholesalers and have the merchandise shipped directly from a producer to a buyer are referred to as __________.

Correct AnswerverifiedShow Answer

Retailing refers to all activities involved in the

Correct AnswerverifiedShow Answer

When retailers set prices on new models or styles of products,the price of existing models often is __________ to quickly sell them.

Correct AnswerverifiedShow Answer

A number of U.S.-based retail chains use special check-out lanes and terminals instead of clerks.This is an example of what level of service?

Correct AnswerverifiedShow Answer

Which of the following firms has made the wisest wholesaler choice for its product?

Correct AnswerverifiedShow Answer

Retailers have come to realize that consumers want to purchase products from those retailers with similar __________.

Correct AnswerverifiedShow Answer

Another term for maintained markup is __________.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

The wholesalers most prevalent in the hardware,drug,and clothing industries would be __________.

Correct AnswerverifiedShow Answer

Outlets where customers are responsible for most shopping activities,although salespeople are available in some departments,would be classified as __________ retail outlets.

Correct AnswerverifiedShow Answer

Family Dollar,Dollar General,and the Dollar Tree are examples of which type of retailer?

Correct AnswerverifiedShow Answer

Describe the retail life cycle.

Correct AnswerverifiedThe retail life cycle describes the proc...View AnswerShow Answer

The __________ is a financial term that measures the dollars added the cost the retailer paid for a product to arrive at the initial selling price.

Correct AnswerverifiedShow Answer

Costco requires customers to perform many shopping functions during the purchasing process and all nonessential customer services have been eliminated.What level of service does Costco offer?

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Franchising is attractive for the franchisee because

Correct AnswerverifiedShow Answer

Apple has approximately what amount of sales per square foot according to the UMD16A: Sales per Square Foot Marketing Dashboard above?

Correct AnswerverifiedShow Answer

Independently owned stores that band together to act like a chain are referred to as __________.

Correct AnswerverifiedShow Answer

Mejeirs operates a chain of hypermarkets headquartered in Michigan,which means it

Correct AnswerverifiedShow Answer

To increase the demand for complementary products,the price of a product often is

Correct AnswerverifiedShow Answer

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The retail life cycle describes the proc...
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