Question 1

Explain what a markdown is and its timing (i.e., when a retailer uses it).

Accepted Answer

A markdown involves discounting a produc...

Question 2

A financial indicator used to compare the change in sales of stores that have been open for the same period of time is referred to as

Accepted Answer

A)   return in investment.
B)   percentage of markup.
C)   gross profit.
D)   sales per square foot.
E)   same-store sales growth.F) B) and E)
G) B) and D)

Question 3

Five of the 40 largest businesses in the United States are retailers-Walmart, Costco, Home Depot, Target, and

Accepted Answer

A)   Sears.
B)   Lowe's.
C)   Best Buy.
D)   JC Penney.
E)   Bloomingdale's.F) A) and D)
G) A) and C)

Question 4

Wholesalers that own the merchandise they sell but do not physically handle, stock, or deliver it are referred to as

Accepted Answer

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

Question 5

________ retailers utilize and integrate a combination of traditional store formats and nonstore formats.

Accepted Answer

A)   Progressive
B)   Opportunistic
C)   Multichannel
D)   Cluster
E)   PowerF) A) and E)
G) B) and C)

Question 6

Outlets such as Checkers Drive-In Restaurants typically enter the wheel of retailing with

Accepted Answer

A)   limited menus and limited service.
B)   extensive menus and expansive service.
C)   extensive menus and self-service.
D)   high prices and novel menu items.
E)   high prices and expansive service.F) C) and D)
G) A) and B)

Question 7

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) All of the above
G) A) and D)

Question 8

Franchising is a type of

Accepted Answer

A)   administered system.
B)   contractual system.
C)   vertically integrated chain.
D)   retail-sponsored cooperative.
E)   corporate system.F) B) and E)
G) C) and D)

Question 9

Which of the following statements regarding retail pricing is most accurate?

Accepted Answer

A)   Consumers are unable to base their perceptions of a store's prices on a price of a benchmark item in the store.
B)   Consumers are influenced more by a store's ambience than its prices.
C)   Stores that offer rebates with long processing times may create negative consumer perceptions.
D)   New technology has almost made shoplifting a thing of the past.
E)   The only difference between everyday low pricing and everyday fair pricing is whether the store uses markups.F) A) and E)
G) C) and D)

Question 10

A variation of off-price retailing is

Accepted Answer

A)   discount wholesalers.
B)   warehouse clubs.
C)   discount retailers.
D)   supercenters.
E)   hypermarkets.F) B) and D)
G) A) and E)

Question 11

Ross Stores, where prices are low but selection is unpredictable, uses ________ pricing practice.

Accepted Answer

A)   a markdown
B)   a maintained markup
C)   a gross margin
D)   a manufactured suggested retail
E)   an off-price retailF) B) and E)
G) C) and E)

Question 12

Drop shippers

Accepted Answer

A)   own the merchandise they sell but do not physically handle, stock, or deliver it.
B)   perform all channel functions and sell on consignment to retailers.
C)   take title to merchandise but sell only to buyers that call on them, pay cash for merchandise, and furnish their own transportation for merchandise.
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) C) and D)
G) C) and E)

Question 13

A method of classification that describes how many different types of products a store carries and in what assortment is referred to as a

Accepted Answer

A)   product mix.
B)   service level.
C)   product variety.
D)   store composition.
E)   merchandise line.F) All of the above
G) A) and D)

Question 14

Bakery items, dairy products, and meat that are sold for cash in their original packages are traditionally sold by which type of wholesaler?

Accepted Answer

A)   rack jobbers
B)   drop shippers
C)   cash and carry wholesalers
D)   truck jobbers
E)   general merchandise wholesalersF) A) and B)
G) A) and C)

Question 15

Describe the retail life cycle.

Accepted Answer

The retail life cycle describes the proc...

Question 16

Which form of retailing is Best Buy now using in airports to distribute its mobile phone and computer accessories, digital cameras, flash drives, and other consumer electronics?

Accepted Answer

A)   vending machines
B)   salespeople with mobile carts
C)   mall-scale traditional retail stores
D)   salespeople wearing Best Buy uniforms with products in backpacks
E)   freestanding kiosks staffed with knowledgeable sales personnelF) A) and C)
G) A) and D)

Question 17

Intangibles, such as a sense of belonging, excitement, style, or warmth, are considered to be ________ of a store's image.

Accepted Answer

A)   functional qualities
B)   sociological qualities
C)   psychological attributes
D)   antecedent attributes
E)   personality elementsF) A) and C)
G) C) and E)

Question 18

Jane Westerlund owns a small retail picture frame store in a local strip mall. She just bought 10 picture frames from a promising woodworker for $36 each. Based on market conditions, she will sell these for $100 each. What is her markup in dollar terms?

Accepted Answer

A)   $136
B)   $64
C)   $72
D)   $360
E)   $10F) B) and C)
G) D) and E)

Question 19

Nike offers shoes for men, women, and children in many sizes and widths. It offers running, cross training, walking, golf, and other types of shoes. This is an example of the ________ that Nike offers to its customers through its own stores or other retailers such as Foot Locker.

Accepted Answer

A)   product items
B)   depth of product line
C)   breadth of product line
D)   versatility of product family
E)   variety of product mixF) B) and E)
G) C) and E)

Question 20

Mike's Camera is a retailer that carries a full line of professional and amateur cameras, develops and/or prints all types of film and digital photos, and even sells darkroom equipment. Mike's Camera is an example of

Accepted Answer

A)   a hypermarket.
B)   a general merchandise store.
C)   a scrambled merchandise store.
D)   an intertype outlet.
E)   a specialty outlet.F) A) and B)
G) None of the above

Exam 13: Retailing and Wholesaling

A financial indicator used to compare the change in sales of stores that have been open for the same period of time is referred to as

Correct AnswerverifiedShow Answer

Franchising is a type of

Correct AnswerverifiedShow Answer

Jane Westerlund owns a small retail picture frame store in a local strip mall. She just bought 10 picture frames from a promising woodworker for $36 each. Based on market conditions, she will sell these for $100 each. What is her markup in dollar terms?

Correct AnswerverifiedShow Answer

Bakery items, dairy products, and meat that are sold for cash in their original packages are traditionally sold by which type of wholesaler?

Correct AnswerverifiedShow Answer

________ retailers utilize and integrate a combination of traditional store formats and nonstore formats.

Correct AnswerverifiedShow Answer

Outlets such as Checkers Drive-In Restaurants typically enter the wheel of retailing with

Correct AnswerverifiedShow Answer

Drop shippers

Correct AnswerverifiedShow Answer

Ross Stores, where prices are low but selection is unpredictable, uses ________ pricing practice.

Correct AnswerverifiedShow Answer

Which form of retailing is Best Buy now using in airports to distribute its mobile phone and computer accessories, digital cameras, flash drives, and other consumer electronics?

Correct AnswerverifiedShow Answer

Intangibles, such as a sense of belonging, excitement, style, or warmth, are considered to be ________ of a store's image.

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

Explain what a markdown is and its timing (i.e., when a retailer uses it).

Correct AnswerverifiedA markdown involves discounting a produc...View AnswerShow Answer

A method of classification that describes how many different types of products a store carries and in what assortment is referred to as a

Correct AnswerverifiedShow Answer

Wholesalers that own the merchandise they sell but do not physically handle, stock, or deliver it are referred to as

Correct AnswerverifiedShow Answer

Mike's Camera is a retailer that carries a full line of professional and amateur cameras, develops and/or prints all types of film and digital photos, and even sells darkroom equipment. Mike's Camera is an example of

Correct AnswerverifiedShow Answer

Nike offers shoes for men, women, and children in many sizes and widths. It offers running, cross training, walking, golf, and other types of shoes. This is an example of the ________ that Nike offers to its customers through its own stores or other retailers such as Foot Locker.

Correct AnswerverifiedShow Answer

Five of the 40 largest businesses in the United States are retailers-Walmart, Costco, Home Depot, Target, and

Correct AnswerverifiedShow Answer

Which of the following statements regarding retail pricing is most accurate?

Correct AnswerverifiedShow Answer

Describe the retail life cycle.

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

A variation of off-price retailing is

Correct AnswerverifiedShow Answer

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A markdown involves discounting a produc...
View Answer

Correct Answer
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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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Correct Answer
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The retail life cycle describes the proc...
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Correct Answer
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