Question 1

A wholesaler that carries a narrow range of products and performs all channel functions is referred to as a

Accepted Answer

A)   general merchandise wholesaler.
B)   truck jobber.
C)   specialty merchandise wholesaler.
D)   rack jobber.
E)   drop shipper.F) C) and D)
G) C) and E)

Question 2

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 E)
G) A) and E)

Question 3

The marketing metrics related to a retailer's finances include all of these except which?

Accepted Answer

A)   the markdown percentage
B)   inventory carrying costs
C)   the return on sales
D)   the gross margin
E)   the sales per employeeF) B) and D)
G) A) and B)

Question 4

The description of how new forms of retail outlets enter the market is referred to as the

Accepted Answer

A)   retail life cycle.
B)   product life cycle.
C)   wheel of retailing.
D)   retail life matrix.
E)   retail continuum.F) A) and D)
G) A) and C)

Question 5

Rack jobbers are wholesalers that

Accepted Answer

A)   furnish the shelves that display merchandise in retail stores, perform all channel functions, and sell on consignment to retailers.
B)   own the merchandise they sell and have retailers store it in their warehouses.
C)   own the merchandise they sell but do not physically handle, stock, or deliver it.
D)   have a small warehouse from which they stock their trucks for distribution to retailers.
E)   work for several producers and carry noncompetitive, complementary merchandise in an exclusive territory.F) A) and B)
G) A) and C)

Question 6

Retail corporate chains benefit consumers in part because

Accepted Answer

A)   corporate chains have more experience than other forms of retailers.
B)   consumers can own stock in the same company where they shop since corporate chain stock must be publicly traded.
C)   consumers can establish a credit history more easily than with other forms of retailers.
D)   chains have multiple outlets with similar merchandise and consistent management policies.
E)   consumers have less stress in making decisions since merchandise is arranged and displayed by professional designers.F) A) and B)
G) B) and D)

Question 7

Figure 16-10
-According to Figure 16-10 above, C represents which stage of the retail life cycle?

Accepted Answer

A)   decline
B)   stabilization
C)   expansion
D)   maturity
E)   accelerated developmentF) B) and E)
G) B) and D)

Question 8

What are the current trends in retailing?

Accepted Answer

Two current trends in retailing-the grow...

Question 9

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) None of the above

Question 10

Scrambled merchandising refers to

Accepted Answer

A)   displaying merchandise throughout a store rather than keeping all similar items together in rows on a shelf or point-of-purchase displays.
B)   offering several unrelated product lines in a single store.
C)   changing the position in which items are displayed in a store to create customer interest in a variety of product lines.
D)   offering several related product lines in multiple stores.
E)   offering several related product lines in a single store.F) B) and C)
G) A) and E)

Question 11

A store chain is looking for a wholesaler to furnish its health and beauty display shelves, perform all channel functions, and sell to it on consignment. Which of these would be the wisest wholesaler choice for its requirements?

Accepted Answer

A)   a rack jobber
B)   a truck jobber
C)   a cash and carry wholesaler
D)   a desk jobber
E)   a drop shipperF) B) and D)
G) C) and D)

Question 12

Sally Beauty Supply sells products for hair, skin, and nail care as well as cosmetics. It is most likely classified as which retail variation based on the considerable assortment of beauty and personal care products it carries?

Accepted Answer

A)   single-line
B)   full-service
C)   full-line
D)   limited-service
E)   limited-lineF) A) and D)
G) B) and C)

Question 13

Impressions of the corporation that operates the store, the category or type of store, the product categories in the store, the brands in each category, merchandise and service quality, and the marketing activities of the store all contribute to a retail store's

Accepted Answer

A)   prices.
B)   image.
C)   emotive appeal.
D)   name.
E)   measurable attributes.F) B) and D)
G) B) and C)

Question 14

Retailing that occurs outside a retail outlet, such as through direct marketing, direct selling, and automatic vending, is referred to as

Accepted Answer

A)   limited-line retailing.
B)   nonstore retailing.
C)   scrambled merchandising.
D)   a hypermarket.
E)   intertype competition.F) B) and E)
G) A) and E)

Question 15

The three basic types of contractual systems are

Accepted Answer

A)   retailer-sponsored cooperatives, wholesaler-sponsored voluntary chains, and franchises.
B)   dual ownership agreements, industry consortiums, and nonbinding cooperatives.
C)   wholesaler-sponsored voluntary chains, nonbinding cooperatives, and franchises.
D)   dual ownership agreements, industry consortiums, and multinational cartels.
E)   nonbinding, binding, and in perpetuity.F) A) and B)
G) A) and D)

Question 16

A form of ownership that involves multiple outlets under common ownership is referred to as

Accepted Answer

A)   a corporate chain.
B)   a consumer cooperative.
C)   a contractual system.
D)   an independent retailer.
E)   an administered system.F) A) and B)
G) All of the above

Question 17

Figure 16-10
-According to Figure 16-10 above, B represents which stage of the retail life cycle?

Accepted Answer

A)   growth
B)   introduction
C)   expansion
D)   maturity
E)   accelerated developmentF) D) and E)
G) C) and D)

Question 18

Which of these is an example of nonstore retailing?

Accepted Answer

A)   hypermarkets
B)   supercenters
C)   shopping centers
D)   direct selling
E)   general merchandise storesF) C) and D)
G) B) and E)

Question 19

By selling franchises, an organization ________ the cost of expansion and ________ its control compared to owning its own retail outlets.

Accepted Answer

A)   increases; increases
B)   increases; reduces
C)   reduces; increases
D)   increases; retains almost all
E)   reduces; reducesF) A) and E)
G) B) and E)

Question 20

Level of service is used to describe the degree of service provided to the customer. Three levels of service are provided by self-, ________, and full-service retailers.

Accepted Answer

A)   limited-
B)   total-
C)   involvement-
D)   obligation-
E)   fixed-F) B) and D)
G) A) and B)

Exam 16: Retailing and Wholesaling

Scrambled merchandising refers to

Correct AnswerverifiedShow Answer

What are the current trends in retailing?

Correct AnswerverifiedTwo current trends in retailing-the grow...View AnswerShow Answer

Rack jobbers are wholesalers that

Correct AnswerverifiedShow Answer

Which of these is an example of nonstore retailing?

Correct AnswerverifiedShow Answer

Impressions of the corporation that operates the store, the category or type of store, the product categories in the store, the brands in each category, merchandise and service quality, and the marketing activities of the store all contribute to a retail store's

Correct AnswerverifiedShow Answer

Figure 16-10 -According to Figure 16-10 above, C represents which stage of the retail life cycle?

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Retail corporate chains benefit consumers in part because

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

Sally Beauty Supply sells products for hair, skin, and nail care as well as cosmetics. It is most likely classified as which retail variation based on the considerable assortment of beauty and personal care products it carries?

Correct AnswerverifiedShow Answer

The marketing metrics related to a retailer's finances include all of these except which?

Correct AnswerverifiedShow Answer

A store chain is looking for a wholesaler to furnish its health and beauty display shelves, perform all channel functions, and sell to it on consignment. Which of these would be the wisest wholesaler choice for its requirements?

Correct AnswerverifiedShow Answer

The three basic types of contractual systems are

Correct AnswerverifiedShow Answer

Retailing that occurs outside a retail outlet, such as through direct marketing, direct selling, and automatic vending, is referred to as

Correct AnswerverifiedShow Answer

By selling franchises, an organization ________ the cost of expansion and ________ its control compared to owning its own retail outlets.

Correct AnswerverifiedShow Answer

A form of ownership that involves multiple outlets under common ownership is referred to as

Correct AnswerverifiedShow Answer

Figure 16-10 -According to Figure 16-10 above, B represents which stage of the retail life cycle?

Correct AnswerverifiedShow Answer

A wholesaler that carries a narrow range of products and performs all channel functions is referred to as a

Correct AnswerverifiedShow Answer

The description of how new forms of retail outlets enter the market is referred to as the

Correct AnswerverifiedShow Answer

Level of service is used to describe the degree of service provided to the customer. Three levels of service are provided by self-, ________, and full-service retailers.

Correct AnswerverifiedShow Answer

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Two current trends in retailing-the grow...
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By selling franchises, an organization the cost of expansion and its control compared to owning its own retail outlets.

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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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