Question 1

The functions that wholesalers perform include all of the following EXCEPT ________.

Accepted Answer

Wholesalers do not engage in producing goods themselves, but rather purchase existing products in large quantities to distribute to retailers or other businesses. The other listed functions - bulk breaking, buying and assortment building, financing, and market information - are all key roles played by wholesalers.

Question 2

Traditional brick-and-mortar retailers are responding to the growth of e-commerce by providing and emphasizing ________ as a strong differentiator.

Accepted Answer

The answer of Traditional brick-and-mortar retailers are responding to the...

Question 3

Besides the growing power of store brands,other factors weakening national brands include the fact that ________.

Accepted Answer

The passage mentions that one of the factors weakening national brands is the fact that consumers are more price sensitive. This implies that national brands may be losing sales to lower-priced store brands due to consumers' increased focus on price. None of the other options are mentioned in the passage.

Question 4

Distributors differ from retailers in a number of ways.One of these ways is that distributor transactions are usually ________ than retail transactions.

Accepted Answer

Distributors often purchase goods in larger quantities than retailers do, which results in larger transactions.

Question 5

A brand developed by a retailer and/or wholesaler that is available only in selected retail outlets is called a _________ brand.

Accepted Answer

Private-label brands are developed and sold exclusively by a single retailer or wholesaler and are only available in select retail outlets. National brands are marketed and distributed across multiple retail outlets and regions. Household and premium brands are not always exclusively available in select retail outlets. Selective brands may refer to either private-label or national brands that are only available in select retail outlets, but it is not a commonly used term in the industry.

Question 6

Every store has a "look" and a physical layout that makes it hard or easy to move around.These elements constitute a store's ________.

Accepted Answer

The answer of Every store has a "look" and a...

Question 7

Retailers can locate their stores in the central business district,a regional shopping center,________,a shopping strip,or within a larger store.

Accepted Answer

The answer of Retailers can locate their stores in the...

Question 8

________ refers to buying large carload lots and dividing them into smaller units before shipping them out to consumers.

Accepted Answer

Bulk breaking is the process of buying goods in large quantities and dividing them into smaller units before shipping them to consumers. This enables retailers to purchase only the quantity they require, which is usually much less than the original carload amount.

Question 9

Retailers can assess a particular store's sales effectiveness by looking at (1)the number of people passing by on an average day; (2)the _________; (3)the percentage of those entering who buy;and (4)the average amount spent per sale.

Accepted Answer

The answer of Retailers can assess a particular store's sales...

Question 10

Most retailers will put low prices on some items to serve as traffic builders or _____________.

Accepted Answer

Retailers use low prices on certain items as loss leaders to attract customers and entice them to make additional purchases.

Question 11

________ measures a product's handling costs from the time the product reaches the warehouse until a customer buys it in the retail store.

Accepted Answer

Direct product profitability analysis measures the cost of handling a product from the time it reaches the warehouse until it is sold in the retail store. This analysis helps businesses determine the profitability of their products and make informed decisions about pricing, inventory management, and other aspects of their operations.

Question 12

When retailers study the economics of buying and selling individual products,they typically find that ________ of their square footage is tied up in products that don't make an economic profit for them.

Accepted Answer

Retailers typically find that around one-third of their square footage is tied up in products that don't make an economic profit for them.

Question 13

Intermediaries sponsor their own brands because ________.

Accepted Answer

Intermediaries sponsor their own brands because private-label brands can be sold at lower prices yet generate a higher profit margin because of their lower cost structure. Private-label brands are also recognizable to consumers as being widely available from many different retailers and may sell at higher volumes. However, they are not always of better quality than national brands.

Question 14

________ are unbranded,plainly packaged,less expensive versions of common products such as spaghetti,paper towels,and canned peaches.

Accepted Answer

Generics are unbranded, plainly packaged, and less expensive versions of common products. They are also known as store brands or store labels. Slotting fees refer to payments made by manufacturers to retailers to secure shelf space for their products, national products are branded products sold nationwide, private labels are brands owned by retailers and sold exclusively in their stores, and shopping strips are a group of stores located together in a shopping center or mall.

Question 15

The three elements of the services mix for retailers includes ________.

Accepted Answer

The answer of The three elements of the services mix...

Question 16

________ is(are)a key positioning factor for retailers and must be decided in relation to the target market,the product-and-service assortment mix,and the competition.

Accepted Answer

Prices are a crucial positioning factor for retailers as they affect the perceived value of the product/service, and also impact buyer behavior in terms of purchase decisions. The pricing decision must consider the target market, competitor pricing, and the product/service mix offered by the retailer. The other options - hours of operation, advertisement, locations, and assortment - are also important factors, but pricing is particularly critical for positioning.

Question 17

Fine specialty retailers most likely fall into the ________ group with respect to margins and volume.

Accepted Answer

Fine specialty retailers typically offer high-quality, niche products that come at a premium price. Therefore, their margins tend to be higher compared to regular retailers. However, their target market is relatively smaller, which means they operate at lower volumes. This makes them fall into the category of high-markup, lower-volume retailers.

Question 18

In the pursuit of higher sales volume,retailers are studying their store environments for ways to improve the shopper's experience.According to Paco Underhill,one of his suggestions for fine-tuning retail space is to ________.

Accepted Answer

Paco Underhill suggests honoring the "transition zone", which is the area just inside a store's entrance where shoppers temporarily pause to get their bearings before moving forward. He recommends allowing shoppers time to "sort out" the stimuli and adjust to the store's layout and atmosphere. This can enhance the shopping experience and ultimately lead to higher sales.

Question 19

Major wholesaler types include all of the following EXCEPT ________.

Accepted Answer

Direct-to-consumer wholesalers are not a major type of wholesaler. The other options listed are all major types of wholesalers in the industry.

Question 20

Because shelf space is scarce,many supermarkets now charge a ________ for accepting a new brand,to cover the cost of listing and stocking it.

Accepted Answer

A slotting fee is a fee charged to a company for placement of their product on supermarket shelves. This fee covers the cost of listing and stocking the new brand in a limited or scarce shelf space.

Quiz 16: Managing Retailing, wholesaling, and Logistics