Quiz 13: Retailing and Wholesaling

The development of today's "smart store" includes each of the following except which? A) biometric scanning B) Internet-of-Things C) artificial intelligence selling D) wearable technology E) virtual reality

While consumers can use ________ to assist them with shopping, retail clerks, salespeople, and technicians can also use them to check manuals for technical information, verify stock inventories, place orders, or even check out customers from anywhere in the store. A) fitness trackers B) drones C) hoverboards D) smart glasses E) biometric scanners

Target and Kohl's send messages about special offers to people who are using ________ near their stores, direct them toward sales items once inside, and alert them when they are near a selected product. A) smartwatches B) voice-controlled speakers C) fitness trackers D) wireless headphones E) email

All activities involved in selling, renting, and providing products and services to ultimate consumers for personal, family, or household use are referred to as A) manufacturing. B) retailing. C) wholesaling. D) facilitating. E) logistics.

Retailing includes all activities involved in the 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.

Retailing is an important marketing activity. Not only do producers and consumers meet through retailing actions, but retailing also creates A) the nation's largest source of tax revenues. B) the largest source of charitable contributions. C) limited utilities for consumers. D) customer value. E) a sense of community.

The ________ provided by retailers create value for consumers. A) utilities B) wholesaling functions C) outsourcing functions D) profits E) synergies

The four utilities offered to consumers through retailing are A) convenience, performance, possession, and form. B) time, place, possession, and form. C) product, price, place, and promotion. D) people, productivity, process, and physical environment. E) convenience, consistency, competition, and choice.

Wells Fargo is one largest consumer banks in the United States. It reaches retail customers through 8,600 stores, a worldwide network of 13,000 ATMs, and its online banking service. Which utility does Wells Fargo best provide? A) time B) possession C) place D) form E) performance

Enterprise car rental agency differentiates itself from other similar agencies by providing a delivery service. This delivery service is particularly valuable to someone who has been left stranded without transportation. By making it easy to rent temporary transportation, Enterprise is emphasizing which utility? A) form B) product C) service D) possession E) convenience

CarMax dealers have adopted a "no-haggle" sales policy that eliminates the need for negotiating. Instead, all customers are offered the same price. Test drives, financing, trade-ins, and leasing are all offered to encourage customers to purchase a car. Which utility does CarMax best provide? A) product B) form C) convenience D) service E) possession

Albertsons Grocery Store accepts debit and credit cards as well as cash and checks for purchases. Its acceptance of various forms of payment provides its customers with ________ utility. A) time B) place C) possession D) form E) public

Subway restaurants that offer sandwiches made exactly to each customer's preference are providing ________ utility. A) time B) place C) possession D) form E) process

The ability to shop over the Internet 24 hours a day, seven days a week, provides consumers with ________ utility. A) form B) time C) convenience D) possession E) performance

At the Christmas Tree Shop, customers can shop for Christmas gifts and decor at any time of the year. What type of utility primarily does this store provide for its customers? A) place and conformance B) possession and form C) form D) performance E) time

Dick's Sporting Goods is a leading sports retailer that provides year-round inventory of equipment for just about any sport. Even during the off-season, equipment for seasonal sports is available at Dick's. Which utility does the it best provide? A) time B) convenience C) possession D) form E) performance

Five of the 40 largest businesses in the United States are retailers-Walmart, Costco, Home Depot, Target, and A) Sears. B) Lowe's. C) Best Buy. D) JC Penney. E) Bloomingdale's.

Which of the following is one of the largest retailers in the United States? A) Hallmark B) Procter & Gamble C) Merck D) Target E) Johnson and Johnson

Walmart's $485 billion in sales in 2016 surpassed the gross domestic product of all but ________ countries for that same year. A) 5 B) 12 C) 17 D) 22 E) 55

Outside the United States, large retailers include ________ in Japan, Carrefour in France, Metro Group in Germany, and Tesco in Britain. A) Aeon B) Toshei C) Seebi D) Goshen E) Toshi

Aeon, Carrefour, Tesco, and Metro Group are A) sizable wholesalers that handle products for the world's largest retailers. B) new Internet start-ups that have the potential to impact the U.S. economy. C) large retailers outside of the United States. D) large distributors of business products. E) historic companies that developed consumer selling systems, though none of them exist today.

The three key methods of classifying retail operations are A) method of operation, revenues generated, and merchandise line. B) form of ownership, method of operation, and merchandise line. C) form of ownership, level of service, and merchandise line. D) level of service, merchandise line, and revenues generated. E) merchandise line, form of ownership, and revenues generated.

Which of the following is a commonly used method of retail outlet classification? A) service versus good B) type of merchandise line C) proportion of national versus private label brands carried D) revenues generated E) profitability

The ________ distinguishes types of retail outlets, with independent retailers, corporate chains, or contractual systems being the three general forms. A) wheel of retailing B) service level C) merchandise line D) product assortment E) form of ownership

One method of classification categorizes a retailer as self-, limited-, or full- A) involvement. B) assortment. C) management. D) service. E) ownership.

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. A) limited- B) total- C) involvement- D) obligation- E) fixed-

A method of classification that describes how many different types of products a store carries and in what assortment is referred to as a A) product mix. B) service level. C) product variety. D) store composition. E) merchandise line.

According to the textbook, ________ provides third-party certification and offers guidance for retailers implementing new environmentally sound practices. A) the Environmental Protection Agency B) the U.S. Chamber of Commerce-Environmental Division C) Green Cross International D) the U.S. Green Retail Association E) Leadership in Energy and Environmental Design (LEED)

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. A) 5 B) 10 C) 15 D) 20 E) 25

There are three general forms of retail ownership: contractual system, independent retailer, and A) dual ownership. B) industry consortium. C) retailing cooperative. D) multinational cartel. E) corporate chain.

One of the most common forms of retail ownership is the ________ owned by an individual. A) corporate chain B) consumer cooperative C) contractual system D) independent retailer E) administered system

Most of the 3.7 million retail establishments in the United States, including hardware stores, convenience stores, clothing stores, and electronics stores, are considered A) corporate chains. B) contractual systems. C) independent retailers. D) conglomerates. E) multinationals.

Which form of retail outlet would most likely offer customers convenience, quality personal service, and lifestyle compatibility? A) corporate chain B) independent retailer C) administered system D) contractual system E) sole incorporation

Your neighborhood dry cleaner or florist is likely to be categorized as an independent retailer. This means it is owned by A) an individual. B) a conglomerate. C) a consortium. D) a corporate chain. E) a cooperative.

A form of ownership that involves multiple outlets under common ownership is referred to as A) a corporate chain. B) a consumer cooperative. C) a contractual system. D) an independent retailer. E) an administered system.

Bloomingdale's stores are part of the Macy's A) corporate chain. B) consumer cooperative. C) contractual system. D) retail conglomerate. E) administered system.

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

Consumers benefit in dealing with retail corporate chains because 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) chains can bargain with a manufacturer to obtain product volume discounts on orders, which can be passed on to consumers in terms of lower prices. D) there are multiple outlets, each with its own varied merchandise and different management policies. E) merchandise is arranged and displayed by professional designers making their shopping experience less stressful.

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

The acronym RFID stands for A) retail franchise identification designation. B) required financial identification. C) radar frequency identification. D) radio frequency identification. E) retail federation of independent department stores.

Retailers are implementing pioneering new technologies such as cloud-based Internet-of-Things (IoT) platforms combined with ________ to improve the quality of information available about the shopping experience in their stores. A) radio frequency identification (RFID) tags B) encapsulation techniques C) barcode scanners D) nanotechnology E) cookies

Independently owned stores that band together to act like a chain are referred to as A) corporate chains. B) cooperative marketing systems. C) contractual systems. D) regional shopping centers. E) self-service systems.

The three basic types of contractual systems are 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.

One way neighborhood grocers can take advantage of volume discounts commonly available to corporate chains is to A) purchase a franchise membership. B) become a subsidiary of a larger supermarket chain such as Kroger. C) join a professional merchant association and hire food brokers to negotiate lower prices for produce and dry goods. D) create a grocery networking system to exchange coupon vouchers. E) participate in a retailer-sponsored cooperative with other independent grocers.

Neighborhood grocers that work together with several other independent grocers that all agree to buy their goods directly from food manufacturers is A) a retailer-sponsored cooperative. B) a consortium system. C) an administrative system. D) a conglomerate system. E) a contractual horizontal marketing system.

Which method of retail outlet classification is most appropriate for describing franchise operations? A) form of ownership B) level of service C) merchandise line D) method of operation E) revenues generated

Franchising is a type of A) administered system. B) contractual system. C) vertically integrated chain. D) retail-sponsored cooperative. E) corporate system.

In ________, an individual or firm contracts with a parent company to set up a business or retail outlet. A) an administered system B) a vertically integrated chain C) a retail-sponsored cooperative D) a franchise system E) a corporate system

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? A) administered system B) conglomerate system C) franchise system D) vertical integrated system E) retail-sponsored cooperative

As a franchisor, 7-Eleven would assist a franchisee in selecting the store location, setting up the store, advertising, and A) developing the marketing program. B) training personnel. C) offering performance bonuses. D) ordering and restocking inventory. E) paying insurance and legal fees.

The two general types of franchises are A) product-format franchises and distribution franchises. B) business-format franchises and manufacturing franchises. C) venture franchises and general service franchises. D) manufacturing franchises and venture franchises. E) business-format franchises and product-distribution franchises.

There are two general types of franchises: business-format franchises and ________ franchises. A) product-distribution B) general service C) manufacturing D) distribution E) venture

A franchise where the franchisor provides step-by-step procedures for most aspects of the business is known as a A) business-format franchise. B) product-distribution franchise. C) business franchise venture. D) manufacturing franchise. E) general service franchise.

McDonald's, 7-Eleven, and Anytime Fitness are examples of A) product-distribution franchises. B) non-profit franchises. C) business-format franchises. D) manufacturing franchises. E) general service franchise.

As a business format franchisor, Subway provides to its franchisee step-by-step procedures for most aspects of the business and A) an easy resale mechanism back to the franchisor. B) guaranteed access to competent suppliers and interested customers. C) complete maintenance the property. D) guidelines for the most likely decisions a franchisee will face. E) discipline for dishonest employees.

7-11 is a popular A) business-format franchise. B) product-distribution franchise. C) operations franchise venture. D) manufacturing franchise. E) general service franchise.

A franchise where the franchiser provides a few general guidelines and more independence to the franchisee is known as a A) business-format franchise. B) manufacturing franchise. C) product-distribution franchise. D) general service franchise. E) business franchise venture.

Coca-Cola distributors represent which type of franchise? A) business-format franchise B) manufacturing franchise C) general service franchise D) product-distribution franchise E) business franchise venture

By selling franchises, an organization ________ the cost of expansion and ________ its control compared to owning its own retail outlets. A) increases; increases B) increases; reduces C) reduces; increases D) increases; retains almost all E) reduces; reduces

The three commonly used terms to describe levels of service in retailing are A) self-service, limited-service, and full-service. B) retailer-service, sales-service, and customer-service. C) self-service, automated-service, and online-service. D) limited-service, full-service, and automated-service. E) wholesaler-service, retailer-service, and customer-service.

The level of service that requires the customers themselves perform many functions during the purchase process is A) full-service. B) limited-service. C) self-service. D) customized-service. E) automated-service.

Gas stations, supermarkets, and airlines that have automated check-out or check-in terminals are providing what level of retail service? A) full-service B) limited-service C) customized-service D) self-service E) automated-service

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? A) limited-service B) full-service C) customized-service D) self-service E) restricted-service

Redbox has 41,000 kiosks throughout the United States for movie and video game rental and it operates without a single clerk. What level of service does this retailer offer? A) limited-service B) non-service C) reduced-service D) self-service E) restricted-service

Which of the following retailers provide self-service to their customers? A) Zipcar B) Footlocker C) Target D) 7-11 E) Apple

General merchandise stores such as Walmart, Kmart, and Target are usually considered ________ retailers. A) exclusive-service B) minimal-service C) self-service D) full-service E) limited-service

Outlets where customers are responsible for most shopping activities, although salespeople are available in some departments, would be classified as ________ retail outlets. A) limited-service B) exclusive-service C) minimal-service D) self-service E) full-service

Kohl's is a moderately priced retailer that sells name-brand fashions and home goods. A few salespeople are available in the jewelry department, but customers are responsible for most of their shopping activities. Kohl's provides its consumers with A) full service. B) limited service. C) self-service. D) restricted service. E) functional service.

Target recently introduced its Target REDcard, where cardholders receive 5 percent back for each purchase. Target also allows customers to return merchandise within 30 days but does not offer alteration or fitting services for its clothing. Target offers what level of service to its customers? A) full service B) self-service C) automated service D) limited service E) customized service

Most specialty stores and department stores, which provide many services to their customers, are considered to be A) exclusive-service retailers. B) limited-service retailers. C) full-service retailers. D) unlimited-service retailers. E) exhaustive-service retailers.

At which level of service would the customer be expected to perform the least number of functions? A) automated service B) minimal service C) self-service D) limited service E) full service

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

Saks Fifth Avenue is an upscale retailer that offers designer brand women's apparel, fragrances, jewelry, and leather accessories. The retailer relies on superior service to sell its products and to retain its customers. Saks Fifth Avenue would be classified as A) an exclusive-service retailer. B) a limited-service retailer. C) a full-service retailer. D) a premium-service retailer. E) a semi-service retailer.

Godiva Chocolatier invites consumers to stop by one of its stores for an unforgettable experience, including delectable chocolates, decorative gift collections, and unrivaled customer care. What type of retail service is Godiva offering? A) full-service B) exclusive-service C) limited-service D) self-service E) specialty-service

Williams-Sonoma is a specialty store that caters to customers who like to cook at home. It offers free cooking classes, has frequent demonstrations by cookbook authors, and has employees who are knowledgeable about food preparation. The sales staff helps customers make their selections. Williams-Sonoma is ________ retailer. A) an exclusive-service B) a full-service C) an upscale-service D) a self-service E) a limited-service

Nordstrom stores typically have 50 percent more salespeople on the floor than other retailers with stores of similar sizes. Its salespeople are renowned for their professional and personalized attention to customers. Nordstrom offers a wide variety of services, including on-site alterations and tailoring, a 7-days-a-week customer service line, live chat line with beauty, design, and wedding specialists and would be considered A) an exclusive-service retailer. B) a limited-service retailer. C) a full-service retailer. D) an upscale retailer. E) a limited-domain retailer.

A Woman's Place is a retail store, created and staffed by women, that offers products and services relating to maternity needs. For expectant mothers, it offers advice and personal shopping services, help with hair or make-up problems, and free delivery. A Woman's Place is an example of ________ retailer. A) a franchise B) a self-service C) a limited-service D) a full-service E) an upscale

Retail outlets vary by their merchandise lines, the key distinction being the ________ of the items offered to customers. A) scope and span B) breadth and depth C) breadth and inventory D) scope and inventory E) range and span

Depth of product line refers to A) the percentage of goods stored as inventory. B) the variety of different product items a store carries. C) variations in price and color on specific items in a store. D) the assortment of each item carried by a store. E) the number of different product classes owned by a corporate chain.

A large assortment of each item within a product line in a store is referred to as A) product span. B) breadth of product line. C) length of product line. D) width of product line. E) depth of product line.

Your local Hallmark retailer carries thousands of greeting cards. You can find cards for a twins birthday, student loans, from my cat to yours, and many other unique occasions. This is an example of the ________ that the Hallmark retailer carries. A) depth of product line B) breadth of product line C) height of product line D) length of product line E) width of product line

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. A) product items B) depth of product line C) breadth of product line D) versatility of product family E) variety of product mix

The variety of different items a store carries is referred to as the A) retailing mix. B) depth of product line. C) breadth of product line. D) width of product line. E) length of product line.

Your local Target retailer carries a variety of different items. You can find everything ranging from socks and electronics to baby items and groceries. This is an example of the ________ carried by Target. A) breadth of product line B) depth of product line C) variety of brand extension D) breadth of product class E) product mix

Stores that carry a considerable assortment (depth) of a related line of items are referred to as A) limited-line stores. B) general merchandise stores. C) scrambled merchandise stores. D) hypermarkets. E) intertype outlets.

Dick's Sporting Goods store is most likely classified as which retail variation based on its considerable assortment (depth) of a related line of items? A) single-line B) full-service C) full-line D) limited-service E) limited-line

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 in carries? A) single-line B) full service C) full-line D) limited service E) limited-line

Stores that carry tremendous depth in one primary line of merchandise are referred to as A) hypermarkets. B) intertype outlets. C) scrambled merchandise stores. D) limited-line stores. E) single-line stores.

Victoria's Secret, a nationwide chain, carries great depth in women's lingerie, and almost no other products. Victoria's Secret is an example of A) a limited-line store. B) a single-line store. C) an intertype outlet. D) a general merchandise store. E) a scrambled merchandise store.

Limited- and single-line stores are often referred to as A) specialty outlets. B) general merchandise stores. C) scrambled merchandise stores. D) intertype outlets. E) hypermarkets.

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 A) a hypermarket. B) a general merchandise store. C) a scrambled merchandise store. D) an intertype outlet. E) a specialty outlet.

A retail outlet that focuses on one type of product at very competitive or discount prices and often dominates the market is referred to as a A) general merchandise store. B) value outlet. C) hypermarket. D) category killer. E) department store.

Staples is a specialty discount retailer that focuses on one type of product-office supplies. Staples is an example of a A) hypermarket. B) superstore. C) category killer. D) department store. E) focused merchandise stores.

Stores that carry a broad product line, with limited depth, are referred to as A) limited-line stores. B) general merchandise stores. C) scrambled merchandise stores. D) hypermarkets. E) intertype outlets.

Stores like Dillard's, Macy's, and Neiman Marcus carry a wide range of different types of products but not an extensive number of items within each type. These retailers are known as A) limited-line stores. B) scrambled merchandise stores. C) hypermarkets. D) intertype outlets. E) general merchandise stores.

Offering several unrelated product lines in a single store is referred to as A) intertype competition. B) multiple distribution. C) scrambled merchandising. D) a department store. E) a specialty outlet.

Scrambled merchandising refers to 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.

A drugstore that carries food, cosmetics, magazines, paper products, toys, small hardware items, and pharmaceuticals is an example of a retailer using A) multiple distribution channels. B) full service. C) scrambled merchandising. D) intertype competition. E) dual channel marketing.

All of the following are forms of nonstore retailing except which? A) direct selling B) television home shopping C) factory outlets D) online retailing E) telemarketing

Retailing that occurs outside a retail outlet, such as through direct marketing, direct selling, and automatic vending, is referred to as A) limited-line retailing. B) nonstore retailing. C) scrambled merchandising. D) a hypermarket. E) intertype competition.

Which of the following is an example of nonstore retailing? A) hypermarkets B) supercenters C) shopping centers D) direct selling E) general merchandise stores

Vending machines are an example of A) hypermarkets. B) direct marketing. C) scrambled merchandising. D) intertype competition. E) nonstore retailing.

Prices in vending machines tend to be higher because A) machines are placed in low-demand traffic areas. B) maintenance, operating, and leasing costs are high. C) only small unit volume items are sold. D) customary pricing requires certain coin and currency amounts regardless of the normal retailer markup. E) few people buy from vending machines.

The largest percentage of products sold from vending machines are A) candy and snacks. B) personal items. C) movies and videos. D) cold beverages. E) food.

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? 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 personnel

Vending machines are no longer limited by the need for cash. In Japan, South Korea, and the Philippines, consumers use mobile phones that transmit payments to vending machines wirelessly. This is an example of how vending machines can provide which type of utility? A) time B) place C) possession D) product E) form

Direct-mail and catalog retailing are examples of A) nonstore retailing. B) intertype retailing. C) online retailing. D) print-media retailing. E) dual retailing.

An IKEA mail order catalog is an example of ________ retailing. A) intrusive B) intertype C) scrambled D) nonstore E) hypermarket

All of the following are reasons direct-mail and catalog retailing are attractive except which? A) They can create customer value by providing a fast and convenient means of making a purchase. B) They can serve as an element of a multichannel strategy designed to encourage consumers to visit a website, a social media page, or even a store. C) Their paper costs and postal rates have declined, making them less expensive to send. D) They can eliminate the cost of a store and clerks. E) They can improve marketing efficiency through segmentation and targeting.

Higher paper costs, increased postage rates, the growing interest in do-not-mail legislation, and concern for "green" mailings have resulted in A) a switch to online catalogs and direct-to-customer email advertisements. B) the use of thinner, lightweight paper products. C) a focus on proven customers or specialty catalogs for market niches. D) the banning of "junk" mail by a growing number of environmentally concerned communities. E) a resurgence in nonautomated telemarketing.

The use of specialty catalogs from firms such as IKEA, Crate and Barrel, and L.L. Bean have been affected by all of the following factors except which? A) the possibility of the U.S. Postal Service reducing delivery to five days a week B) higher paper costs, an increase in postage rates, and the possibility of the U.S. Postal Service reducing delivery to five days a week C) the growing interest in do-not-mail legislation D) the concern for "green" mailings and catalogs E) the growing influence of television home shopping

The marketing managers at Omaha Steaks used airlines' databases to mail a special offer to frequent flyers. Eight weeks after shipping the steaks to the frequent flyers who responded to the offer, the company's salespeople followed up by telephoning customers to ask for new orders. This is an example of which types of nonstore retailing? A) direct selling and telemarketing B) direct-mail and telemarketing C) telemarketing and online retailing D) online retailing and direct-mail E) direct-mail and direct selling

Trent is an avid fly fisherman and for his hobby he large rubber rafts, hip waders, special fishing rods, reels, line, and an assortment of fishing tackle and lures. There are no sporting goods stores near him so he orders his fishing supplies from the L.L. Bean catalog. His supplies are generally delivered to his home within 72 hours. Trent is using a ________ to satisfy his fishing supply needs. A) home delivery retailer B) quick-response retailer C) direct-mail marketer D) flexible response marketer E) regional marketer

Currently, the three largest television home shopping programs in the United States are A) QVC, HSN, and Evine. B) Shop at Home, QVC, and HSN. C) Direct Shopper, Shop at Home, and ShopNBC. D) ValueVision, Shop at Home, and QVC. E) Shop America, Direct shopper, and J.S. Global.

QVC is a television home shopping network. It generates sales of more than $8 billion from its 60 million customers by A) directing customers to purchase through its Mall of America retail store. B) broadcasting live 12 hours a day 365 days a year. C) offering more than 770 products each week on a 24-hour-a-day broadcast. D) offering overstocked items from retailers at a fraction of the original cost. E) running live podcasts and live streaming over the Internet.

Which of the following statements regarding QVC is most accurate? A) QVC generates demand by broadcasting only during seasonal shopping periods. B) QVC broadcasts live events, such as a Red Carpet Style show, to attract new customers. C) QVC seeks to create its own celebrities rather than inviting established stars onto the show. D) QVC sells all its items by dropping the price to $1.00, regardless of the product value, if it is not sold in one day. E) QVC entices customers to "stay tuned" by offering free products to random callers.

In the past, television home shopping programs have attracted mostly A) 18- to 34-year-old men. B) 25- to 34-year-old women. C) 35- to 50-year-old men. D) 35- to 64-year-old women. E) 12- to 17-year-old boys.

Some experts suggest that television shopping programs are becoming a modern version of ________ by combining elements of reality TV programs, talk shows, and infomercials. A) augmented reality B) door-to-door retailing C) telemarketing D) direct-response wholesaling E) indirect selling

All of the following are advantages of online shopping except which? A) personal contact B) 24-hour access C) the ability to comparison shop D) in-home privacy E) variety

"Bricks and clicks" refers to ________ and ________, respectively. A) catalogs; websites B) search engines; websites C) traditional retailers; online retailers D) buildings; shoppers E) computer savvy buyers; computer novice buyers

Leveraging its physical stores to enhance value for customers, Walmart offers online shoppers a service A) using a virtual reality shopping experience from their home computers. B) to order online and receive free same-day pickup at a local store. C) providing free shipping to customers if they order $100 or more of selected items. D) to shop in-store using virtual personal shoppers. E) to attend online auctions for Walmart overstock or seasonal items that are being discontinued to make room for new inventory.

Online retail purchases by consumers can be the result of several very different approaches, including patronizing online malls, becoming a member of an online discount service, and A) becoming a secret shopper. B) participating in a buying cooperative. C) using direct selling. D) shopping via vending machine. E) participating in an online auction.

One of the biggest problems online retailers face is that about ________ percent of online shoppers make it to "checkout" and then leave the website to compare shipping costs and prices on other sites. A) 10 B) 20 C) 30 D) 50 E) 80

One of the biggest problems online retailers face is that nearly two-thirds of online shoppers make it to "checkout" and then leave the website A) because of slow download times. B) to compare shipping costs and prices on other sites. C) because of security fears when entering credit card information. D) due to the inability to experience the product in person. E) over dissatisfaction with product availability.

Experts suggest that online retailers should think of their websites as ________ if they are to attract and retain customers. A) cash cows B) dynamic billboards C) virtual reality stores D) traditional retail stores E) online entertainment

Online retailing has evolved to include social shopping options like intermediaries (Groupon), marketplaces (Google Offer), and ________ (Yipit). A) swap meets B) aggregators C) flash mobs D) showroomers E) arbitrators

Using the telephone to interact with and sell directly to consumers is referred to as A) digital marketing. B) telemarketing. C) solicitation marketing. D) telecommerce. E) direct selling.

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. A) competitive antics B) coercion tactics C) freedom of speech D) language issues E) consumer privacy

Which of the following statements regarding telemarketing is most accurate? A) Shopping bots are computers that place automated or "robo" (i.e., robotic) telemarketing calls. B) Direct mail is typically viewed as a more efficient means of targeting consumers than telemarketing. C) Telemarketing has become more effective as a result of the National Please-Do-Call registry legislation. D) Consumer privacy, industry standards, and ethical guidelines have become important issues. E) Many firms are considering shifting their direct-mail and door-to-door budgets to telemarketing techniques.

As a result of legislation, consumers who do not want to receive telephone calls related to company sales efforts can A) purchase telephones that block unwanted calls. B) place their telephone numbers on the National Do Not Call Registry. C) request phone numbers that begin with the area code 555 that automatically block telemarketing solicitors. D) request phone numbers that begin with the area code 888 that automatically block telemarketing solicitors. E) use an unlisted telephone number.

The sales of products and services to consumers through personal interactions and demonstrations in their homes or offices is referred to as A) direct selling. B) person-to-person sales. C) face-to-face selling. D) direct-response selling. E) customized selling.

Sales of goods and services to consumers through personal interactions and demonstrations in their homes or offices is referred to as direct selling, or A) person-to-person sales. B) interactive selling. C) door-to-door retailing. D) individual promotion. E) customized selling.

Direct selling, sometimes called ________, involves direct sales of goods and services to consumers through personal interactions and demonstrations in their home or office. A) interface marketing B) flex marketing C) interactive selling D) responsive selling E) door-to-door retailing

Companies such as Avon, Fuller Brush, Mary Kay, and World Book are examples of firms that use A) interface marketing. B) flex marketing. C) direct selling. D) interactive selling. E) responsive selling.

Direct selling is likely to continue to have strong growth in markets A) in which people prefer not to have a social shopping experience. B) where convenience is not especially important. C) in which consumers are knowledgeable shoppers. D) where there is a lack of effective distribution channels. E) that have an excellent infrastructure.

In response to the changes in the United States, many direct sellers are implementing a(n) ________ strategy by expanding into other countries with their current product lines. A) market development B) market penetration C) accelerated development D) product development E) diversification

Growth in the direct-selling industry is the result of two trends: direct-selling retailers are expanding into markets outside the United States, and A) increased gas prices and traffic congestion are causing people to want the store to deliver the products to them. B) the pendulum is beginning to swing back to more mothers (and fathers) staying home during the day with children, making direct selling more convenient. C) the cost of purchasing or leasing real estate to build an actual "brick" retail store is becoming prohibitive. D) graduating business students are finding it more difficult to find a traditional sales position and like the idea of being their own bosses. E) some consumers prefer one-on-one customer service and a social shopping experience rather than shopping online or in big discount stores.

Which of the following statements regarding direct selling is most accurate? A) Unlike other forms of nonstore retailing, direct selling takes place in the business market. B) Direct selling is found exclusively in the United States. C) Direct selling succeeds because it provides customers with a social shopping experience. D) Direct sales have been declining rapidly in the United States since the 1980s. E) By definition, direct selling can only take place in a home.

A customer was unable to go to the store on her own to buy gifts for the holidays. She contacted a Pampered Chef representative who came to her home, showed her not only catalogs but actual products, answered all her questions, and had all the customer's gifts sorted and delivered. This is an example of A) interface marketing. B) flex marketing. C) direct selling. D) interactive selling. E) responsive selling.

The activities related to managing the store and the merchandise in the store, which includes retail pricing, store location, retail communication, and merchandise are referred to as the A) wheel of retailing. B) distribution mix. C) retail life cycle. D) retailing mix. E) retail store positioning.

The retailing mix refers to the activities related to managing a store, and includes A) product, price, promotion, and place. B) the four utilities of time, form, possession, and place. C) the colors, sizes, shapes, and perceived value of the store's products. D) retail pricing, store location, retail communication, and merchandise. E) selection of store location, selection of merchandise, hiring and training of employees, and promotion of both the store and products.

When developing retailing strategies, marketers develop a retailing mix that includes A) products, services, promotions, and retail communication. B) promotions, publicity, and press releases. C) retail pricing, store location, retail communication, and merchandise. D) physical environment, people, process, and productivity. E) direct mail, online stores, traditional stores, and outlet stores.

The retailing mix includes all of the following except which? A) merchandise B) target market C) retail pricing D) store location E) retail communication

When setting prices for merchandise, retailers must decide on the markup, the markdown, and the ________ for markdowns. A) relevance B) necessity C) percentage D) timing E) consequence

A markup refers to A) the difference between the final selling price and how the customer values the product. B) selling brand name merchandise at lower than regular prices. C) the amount added to the cost the retailer paid for a product to reach the final selling price. D) the difference between the retail cost and initial selling price. E) the reduction in retail price, usually expressed as a percentage equal to the amount reduced, divided by the original price, and then multiplied by 100.

The amount added to the cost the retailer paid for a product to reach the final selling price is referred to as A) a markup. B) a markdown. C) an original markup. D) a maintained margin. E) a cost-plus markup.

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? A) $136 B) $64 C) $72 D) $360 E) $10

The difference between the retailer's cost and the initial selling price is referred to as the A) net margin. B) maintained markup. C) markdown. D) differential markup. E) original markup.

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 original markup? A) $26 B) $86 C) $78 D) $34 E) $112

A maintained markup is A) the difference between the final selling price and the retailer's cost. B) the initial selling price minus the amount paid by the retailer. C) the amount the manufacturer adds to achieve the desired suggested retail price. D) the net margin. E) the highest price listed for the product.

The difference between the final selling price and the retailer's cost is referred to as the A) original markup. B) maintained markup. C) markdown. D) differential markup. E) discounted price.

Another term for maintained markup is A) original markup. B) maintained markup. C) markdown. D) gross margin. E) net margin.

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? A) $112 B) $52 C) $26 D) $34 E) $86

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 planned to sell these for $100 each. Recently, however, sales have been a bit slow. Jane decides to reduce the price for the frames to $80. What is her maintained markup in dollar terms? A) $100 B) $20 C) $44 D) $64 E) $80

Discounting a product when the product does not sell at the original price is referred to as A) an inverse markup. B) a markdown. C) price sensitivity. D) concession pricing. E) a rebate.

A markdown refers to A) the difference between the final selling price and the retailer's cost. B) the amount the manufacturer adds to achieve the desired suggested retail price. C) discounting a product when it does not sell at the original price and an adjustment is necessary. D) the lowest price to which a retailer can reduce a sales ticket and still make a profit. E) the net margin.

Many retailers take a markdown as soon as sales fall to free valuable selling space and cash. This illustrates one tactic for handling the ________ of markdowns. A) timing B) demand C) availability D) bargain hunting E) customer value

When retailers set prices on new models or styles of products, the price of existing models often is ________ to quickly sell them. A) benchmarked B) off-priced C) value-added D) marked down E) maintained

To increase the demand for complementary products, the price of a product often is A) marked up. B) marked down. C) off-priced. D) value-subtracted. E) maintained.

Markdowns can be used to A) increase competition with other retailers in the immediate vicinity. B) placate dissatisfied customers. C) enhance customer perceptions of product quality. D) increase demand for complementary products. E) reduce the sense of urgency among repeat buyers.

Timing is an important element of markdowns. Those retailers who take a markdown as soon as sales fall off most likely are doing so to A) placate dissatisfied customers. B) enhance customer perceptions of product quality. C) free up valuable selling space and cash. D) create an image as a cutting-edge retailer. E) react to the entry of a new competitor.

The largest inventory of wedding dresses in the Southeast can be found at Low's Bridal and Formal in Brinkley, Arkansas. From December 26 to January 16, a prospective bride shopping at Low's can find gowns once priced at $6,000 for $2,999 and $800 gowns for $399. The reduced prices of these gowns are reflected in which retail pricing strategy? A) markdowns B) original markups C) future markups D) inventory shrinkages E) net markups

When Paulette first saw the dress in the store window, she knew two things. She had to own the dress, and she could not afford it at its current price. Disappointed, she left. Two weeks later, she passed by the store again and saw that the price of the dress had been reduced to one that she could afford. Specifically, the store had reduced the price by 30 percent to "move" it. Paulette was able to purchase the dress because of A) a negative markup. B) a markup elimination. C) a markdown. D) a liquidity reduction. E) an increase in net margin.

Recent research indicates that the timing of ________ might affect future sales because frequent promotions increase consumers' ability to remember regular prices. A) seasonal markdowns B) original markups C) future markups D) maintained markups E) markdowns

As part of their regular retail pricing strategy, some retailers will emphasize consistently low prices and eliminate most markdowns, a practice referred to as A) everyday low pricing. B) low-margin pricing. C) everyday fair pricing. D) value-based pricing. E) maintained pricing.

Walmart and The Home Depot emphasize consistently low prices and eliminate most markdowns with a retail pricing strategy called A) low-margin pricing. B) value-based pricing. C) everyday low pricing. D) everyday fair pricing. E) markdown pricing.

When considering the use of everyday low pricing, one should consider the impact on ________ because of EDLP's potential to affect product quality assessments. A) competitor's promotional strategies B) product benefits C) convenience D) brand name and store image E) maintained price

Some retailers advocate ________ strategy, a pricing strategy that may not offer the lowest prices but does try to create value for customers through its service and the total buying experience. A) a customer loyalty B) a value emphasis C) an everyday low pricing D) a low-margin E) an everyday fair pricing

Retailers that advocate an everyday fair pricing strategy may not offer the lowest prices but try to create value for customers using which of these? A) customer service B) product benefits C) convenience D) perceived quality E) maintained price

Consumers often use the prices of ________ items, such as a can of Coke, to form an overall impression of the store's prices. A) benchmark B) stoplight C) point-of-purchase D) value-based E) loss-leader

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

Off-price retailing refers to the A) differences between the final selling price and the retailer's cost. B) sale of brand name merchandise at lower than regular prices. C) sale of merchandise at maintained markups. D) amount added by the manufacturer to achieve the desired suggested retail price. E) reduction in retail price usually expressed as the gross margin.

The selling of brand name merchandise at lower than regular prices is referred to as A) discount pricing. B) everyday low price. C) markdown pricing. D) off-price retailing. E) loss-price leader.

The major difference between an off-price retailer and a discount store is that off-price retailers purchase merchandise from manufacturers ________ and discount stores buy from wholesalers ________. A) that are trying to offload returned or slightly irregular inventory; selling new but inexpensive merchandise B) at below wholesale prices; and charge a high initial price with the full intent of taking markdowns later C) at below wholesale prices; at full price but take less of a markup D) at various price points; at the lowest price points possible E) that are part of a retailing cooperative; that are part of a wholesaling cooperative

Merchants such as Burlington and T.J.Maxx sell brand-name merchandise at lower than regular prices using A) an off-price retailing strategy. B) a markdown pricing strategy. C) an everyday fair pricing strategy. D) an everyday low pricing strategy. E) a maintained markdown pricing strategy.

Ross Stores, where prices are low but selection is unpredictable, uses ________ pricing practice. A) a markdown B) a maintained markup C) a gross margin D) a manufactured suggested retail E) an off-price retail

A variation of off-price retailing is A) discount wholesalers. B) warehouse clubs. C) discount retailers. D) supercenters. E) hypermarkets.

Off 5th sells discounted merchandise from Saks Fifth Avenue. This retailer is an example of A) a hypermarket. B) a markdown store. C) an outlet store. D) a category killer. E) a warehouse club.

Most stores today are near several others in one of several settings that include all of the following except which? A) the regional shopping center B) the strip mall C) the old-town district D) the central business district E) the power center

Most stores today are near several others in one of four settings: the central business district, the regional shopping center, the power center, or the A) suburban downtown. B) strip mall. C) exurb value center. D) rural micromall. E) urban megacenter.

A central business district refers to A) a suburban mall that contains up to 100 stores and draws customer from 5 to 10 miles away. B) the oldest retailing setting, located in a community's downtown area. C) a retail location that typically has one primary store and about 20 to 40 smaller outlets, and serves a population base of about 100,000. D) a cluster of stores that serves people who are within a 5- to 10-minute drive and serves a population base of under 30,000. E) a collection of large stores over 100,000 square feet that offers a mix of about 40 percent food products and 60 percent general merchandise items.

The oldest retail setting, located in the community's downtown area, is referred to as A) the central business district. B) main street. C) the community square. D) the economic center. E) the historic commerce district.

Consumers often view central business district shopping as less convenient because of the lack of parking, higher crime rates, and A) outdated stores. B) a lack of ambience. C) fewer quality restaurants. D) few public restrooms. E) exposure to the weather.

A regional shopping center refers to a A) retail cluster in a downtown area. B) retail location that typically has one primary store and about 20 to 40 smaller outlets, and serves a population base of about 100,000. C) cluster of stores that serves people who are within a 5- to 10-minute drive and serves a population base of under 30,000. D) group of 50 to 150 stores that typically attracts customers who live or work within a 5- to 10-mile range, often containing two or three anchor stores. E) retail cluster of stores in uptown areas.

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

Large shopping areas often contain two or three ________ stores, which are well-known national or regional stores such as Nordstrom, Saks Fifth Avenue, and Bloomingdale's. A) power B) mega C) anchor D) value E) outlet

Which of the following stores are most likely to be anchor stores at a regional shopping center? A) Old Navy, Abercrombie & Fitch, and Kay-Bee toy store B) Hickory Farms, a locally owned jewelry store, and McDonald's C) an antique store, Dollar General, and a bakery D) Dick's Sporting Goods, Macy's, and JC Penney E) a Hallmark shop, a sporting goods consignment store, and a Barnes & Noble bookstore

The West Edmonton Mall in Alberta, Canada, is a conglomerate of more than 800 stores, the world's largest indoor amusement park, more than 100 restaurants, a movie complex, and two hotels. This retail complex is the largest example of A) a regional shopping center. B) an urban microcenter. C) a megaplex. D) a hypermarket. E) a supercenter.

A cluster of neighborhood stores, whose composition is typically unplanned and serves people who are within a 5- to 10-minute drive is referred to as a A) suburban shopping mall. B) strip mall. C) mini-mart. D) hypomarket. E) central business district.

A strip mall is a A) suburban mall containing up to 100 stores that draws customer from a 5- to 10-mile radius. B) cluster of stores in a downtown area. C) retail location that typically has one primary store (usually a department store branch) with 20 to 40 smaller outlets serving a population of consumers who are within a 10- to 20-minute drive. D) cluster of neighborhood stores designed to serve people within a 5- to 10-minute drive. E) collection of category killers usually located outside a major amusement park or attraction.

Many neighborhoods have clusters of retail stores, referred to as a strip mall, to serve people who are within a 5- to 10-minute drive. Unlike the larger shopping centers, the composition of these stores usually A) is unplanned. B) includes national anchor stores. C) is restricted to privately owned specialty stores. D) is mainly fast-food restaurants. E) includes amusement or theme parks, or movie theaters.

A huge shopping strip with multiple anchor (or national) stores is referred to as a A) central business district. B) regional shopping center. C) community shopping center. D) strip mall. E) power center.

Combining the convenient location of a strip mall with the influential draw of national stores results in shopping areas known as A) suburban malls. B) warehouse malls. C) power centers. D) retail malls. E) cluster malls.

________ retailers utilize and integrate a combination of traditional store formats and nonstore formats. A) Progressive B) Opportunistic C) Multichannel D) Cluster E) Power

Multichannel retailers are retailers that A) sell different products through entirely different channels. B) sell through different channels under different brand names. C) utilize strategic and tactical wholesalers. D) utilize and integrate a combination of traditional store formats and nonstore formats. E) combine two channels for their offerings: one for products and the other for services.

Retailers like Williams-Sonoma that sell products through retail stores, catalogs, and online are examples of A) intertype competitors. B) multichannel retailers. C) vertically-integrated retailers. D) scrambled merchandisers. E) dual distributors.

Texas-based Whole Foods supermarkets target people who want to eat healthy. The stores use placards throughout, which tell shoppers about the farmers who grew and harvested the various products sold. This use of signage to provide consumer information is a part of which element of the retailing mix? A) communication B) pricing C) merchandise D) goods and services factor E) location

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

In the late 1950s, Pierre Martineau described ________ as "the way in which the store is defined in the shopper's mind." A) size B) location C) product mix D) image E) anchor store

Price ranges, store layouts, and breadth and depth of merchandise lines are considered to be the ________ of a store's image. A) functional qualities B) sociological qualities C) psychological attributes D) lifestyle attributes E) atmospheric elements

Intangibles, such as a sense of belonging, excitement, style, or warmth, are considered to be ________ of a store's image. A) functional qualities B) sociological qualities C) psychological attributes D) antecedent attributes E) personality elements

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

Store layout, colors, lighting, and music are all considered part of a store's retail A) sensory management plan. B) measurable attributes. C) antecedent attributes. D) emotive appeal. E) atmosphere.

The music played in the grocery store has a slow tempo to get shoppers to stay longer and hopefully put more items in their cart. Music is part of the grocery store's A) atmosphere. B) sensory management plan. C) psychological attributes. D) personality type. E) sociological profile.

The use of displays, coupons, product samples, and other brand communications to influence shopping behavior in a store is referred to as A) functional qualities. B) level of service. C) shopper marketing. D) lifestyle attributes. E) psychographic elements.

________ is a consumer's perception of an encounter with a store's physical environment, personnel, and policies and procedures. A) Sensorial management B) Psychographic development C) Antecedent positioning D) Perceptual appeal E) Shopping experience

Research shows that the caliber and kind of ________ delivered by retailers is a major source of retailer differentiation. A) communication management B) psychographic rewards C) distribution pattern D) in-store promotional appeal E) shopping experience

An approach to managing the assortment of merchandise in which a manager is assigned the responsibility for selecting all products that consumers in a market segment might view as substitutes for each other, with the objective of maximizing sales and profits in the category, is referred to as A) category capacity. B) product management. C) retail inventory category. D) category management. E) automated inventory control.

The marketing metrics related to a retailer's customers include all of the following except which? A) the number of customers per day or per hour B) the average length of a store visit C) markdown percentage D) the average transaction size per customer E) the number of transactions per customer

The marketing metrics related to a retailer's products or merchandise include all of the following except which? A) the cost of carrying inventory B) the inventory turnover C) the average number of items per transaction D) the number of returns E) the average length of a store visit

The marketing metrics related to a retailer's finances include all of the following except which? A) the markdown percentage B) inventory carrying costs C) the return on sales D) the gross margin E) the sales per employee

A common financial indicator of how effectively retail space is used to generate revenue can be calculated by determining A) net sales. B) markdown percentage. C) market share. D) sales per square foot. E) transactions per customer.

Sales per square foot is calculated by dividing A) profit margin by selling area in square feet. B) gross profit by selling area in square feet. C) total sales by selling area in square feet. D) return on investment by selling area in square feet. E) net sales by selling area in square feet.

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. A) same-store gross margin B) same-store sales growth C) sales per square foot D) net profit E) same-store net present value

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

The calculation for same-store sales growth is A) Total sales ÷ Selling area in square feet. B) (Store sales in year 3 ÷ Store sales in year 1). C) Store sales in year 1 ÷ (Store sales in year 2 − Store sales in year 1). D) (Store sales in year 2 − Store sales in year 1) ÷ Store sales in year 1. E) Store 1 square feet ÷ Store 2 square feet.

The description of how new forms of retail outlets enter the market is referred to as the A) retail life cycle. B) product life cycle. C) wheel of retailing. D) retail life matrix. E) retail continuum.

The wheel of retailing refers to A) the life cycle of most consumer products sold by retailers. B) the diffusion of types of retailers for a new product. C) the progression of retail locations an outlet goes through. D) the description of how new forms of retail outlets enter the market. E) the description of retail management philosophies.

Many fast-food retailers, including McDonald's and Burger King, have followed a predictable pattern of how new forms of retail outlets enter the marketplace. McDonald's has evolved from a relatively simple restaurant with low margins, low prices, limited product offerings, and low institutional status to a worldwide chain with higher margins, high status, and a diverse menu of products. This evolution of McDonald's restaurants is consistent with the A) slow to fast-food restaurant evolutionary cycle. B) revolution of retailing. C) retail life cycle. D) fast-food retail sequence. E) wheel of retailing.

Figure 13-4 -According to Figure 13-4, Box A above represents the stage in the wheel of retailing when a retail outlet starts with A) low prices, high margins, and high status. B) mixed prices, mixed margins, and mixed status. C) low prices, low margins, and low status. D) moderate prices, high margins, and high status. E) high prices, low margins, and mixed status.

Figure 13-4 -Figure 13-4 above shows the wheel of retailing, which indicates that retail outlets typically go through changes with the passage of time, starting at Box A. What characteristics in the wheel of retailing does B represent? A) low prices, low margins, low status. B) higher prices, higher margins, and higher status. C) low prices, high margins, and high status. D) stable prices, low margins, and stable status. E) moderate prices, high margins, and high status.

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? A) A B) B C) C D) D E) A and D

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

Retail outlets, like products, experience a process of growth and decline, which is referred to as the A) retail life cycle. B) wheel of retailing. C) product life cycle. D) retail continuum. E) retail life matrix.

The retail life cycle refers to A) the distinct stages a product goes through before it becomes obsolete. B) the process of growth and decline that retail outlets, like products, experience. C) the cycle of a customer's buying behavior from awareness of a product to its ultimate purchase. D) the relationship between the tangible aspects of a product and the types of services that need to accompany it. E) the traditional management changes that take place as a retail outlet grows.

The four stages of the retail life cycle are A) introduction, growth, maturity, and decline. B) awareness, inquiry, alternative evaluation, and purchase. C) early growth, accelerated development, maturity, and decline. D) innovation, standardization, adaptation, and obsolescence. E) innovation, adaptation, imitation, and obsolescence.

In the retail life cycle, ________ is the stage of emergence of a retail outlet, with a sharp departure from existing competition. A) retail innovation B) maturity C) introduction D) early growth E) accelerated development

According to the retail life cycle, in which stage would market share rise gradually, although profits may be low because of start-up costs? A) decline B) maturity C) introduction D) accelerated development E) early growth

Which type of outlet is most likely in its early growth stage of the retail life cycle? A) one-price stores B) single-brand retailers C) supermarkets D) catalog retailers E) general stores

Both market share and profit achieve their greatest growth rates during which stage of the retail life cycle? A) decline B) maturity C) introduction D) early growth E) accelerated development

During which stage of the retail life cycle do companies establish multiple outlets? A) decline B) maturity C) accelerated development D) introduction E) early growth

The key goal for retailers in the accelerated development phase of the retail life cycle is to A) recover start-up costs. B) establish a dominant position in the fight for market share. C) delay entering the decline stage of the retail life cycle. D) find ways of discouraging customers from moving to low-margin, mass-volume outlets. E) establish a retail concept that is a sharp departure from existing competition.

Accelerated development in the retail life cycle is similar to which stage in the product life cycle? A) introduction B) maturity C) decline D) growth E) harvest

Which type of outlet is most likely in its accelerated development stage of the retail life cycle? A) single-price stores B) online retailers C) supermarkets D) business-district retailers E) convenience stores

The battle for market share is usually fought directly before the ________ stage, and some competitors drop out of the market. A) decline B) growth C) maturity D) harvest E) introduction phase

Discounting generally takes place during which stage of the retail life cycle? A) early growth B) accelerated development C) decline D) maturity E) early growth and maturity

Which type of outlet is most likely in its maturity stage of the retail life cycle? A) single-price stores B) value retail centers C) online retailers D) business-district retailers E) convenience stores

Which type of outlet is most likely in its decline stage of the retail life cycle? A) single-price stores B) value retail centers C) online retailers D) business district retailers E) convenience stores

Figure 13-5 -According to Figure 13-5 above, market share reaches its highest level during which stage of the retail life cycle? A) early growth B) accelerated development C) decline D) maturity E) either early growth or maturity

Figure 13-5 -According to Figure 13-5 above, Stage A represents which stage of the retail life cycle? A) introduction B) early growth C) accelerated development D) maturity E) start-up

Figure 13-5 -According to Figure 13-5 above, B represents which stage of the retail life cycle? A) growth B) early growth C) accelerated development D) maturity E) expansion

Figure 13-5 -According to Figure 13-5 above, C represents which stage of the retail life cycle? A) stabilization B) early growth C) accelerated development D) maturity E) decline

Figure 13-5 -According to Figure 13-5 above, D represents which stage of the retail life cycle? A) deceleration B) early growth C) accelerated development D) maturity E) decline

Data analytics benefits retailers by A) accurately predicting changes in the external environment. B) allowing merchants to provide personalized, real-time messaging and promotions. C) eliminating the need for wholesaling and the associated markups that raise prices. D) shortening the retail life cycle. E) improving sales per square foot or same-store sales growth by providing access to alternate channels.

________ can benefit retailers by helping them to predict shopping behavior, provide personalized, real-time messaging and promotions, and track customer needs. A) Data analytics B) Brokers C) Telemarketing D) Multichannel retailing E) Shopper marketing

Independently owned firms that take title to the merchandise they handle are referred to as A) brokers. B) agencies. C) virtual retailers. D) merchant wholesalers. E) merchant retailers.

Merchant wholesalers are independently owned firms that ________ the merchandise they handle. A) take title to B) broker C) act as agents for D) break bulk and repackage E) do not deliver

Which of the following is a type of full-service merchant wholesaler? A) cash and carry wholesaler B) rack jobbers C) truck jobbers D) specialty merchandise wholesaler E) drop shippers

Wholesalers that carry a broad assortment of merchandise and perform all channel functions are referred to as a A) limited-line wholesaler. B) drop shipper. C) rack jobber. D) specialty merchandise wholesaler. E) general merchandise wholesaler.

General merchandise wholesalers A) carry a broad assortment of merchandise and perform all channel functions. B) own the merchandise they sell but do not physically handle, stock, or deliver it. C) have a small warehouse from which they stock their trucks for distribution to retailers. D) work for several producers, carry noncompetitive, complementary merchandise in an exclusive territory, and use over-the-road transportation for all product deliveries. E) deal exclusively with small low-cost consumer products that are distributed to a select number of large retail chains.

The wholesalers most prevalent in the hardware, drug, and clothing industries are A) specialty wholesalers. B) full-line wholesalers. C) cash and carry wholesalers. D) limited-line wholesalers. E) universal wholesalers.

A wholesaler that carries a narrow range of products and performs all channel functions is referred to as a A) general merchandise wholesaler. B) truck jobber. C) specialty merchandise wholesaler. D) rack jobber. E) drop shipper.

Specialty merchandise wholesalers A) carry a broad assortment of merchandise and perform all channel functions. B) own the merchandise they sell but do not physically handle, stock, or deliver it. C) offer a relatively narrow range of products but have an extensive assortment within the product lines carried. D) work for several producers, carry noncompetitive, complementary merchandise in an exclusive territory, and use over-the-road transportation for all product deliveries. E) deal exclusively with small low-cost consumer goods that are distributed to a select number of large retail chains.

Which type of wholesaler offers a relatively narrow range of products but has an extensive assortment within the product lines carried? A) general merchandise wholesaler B) limited-service wholesaler C) cash and carry wholesaler D) specialty merchandise wholesaler E) drop shipper

The wholesalers that perform all channel functions and are found in the health foods, automotive parts, and seafood industries would be A) specialty wholesalers. B) full-line wholesalers. C) limited wholesalers. D) universal wholesalers. E) cash and carry wholesalers.

Which of the following is a type of full-service merchant wholesaler? A) cash and carry wholesaler B) rack jobbers C) truck jobbers D) specialty merchandise wholesaler E) drop shippers

The four major types of limited-service merchant wholesalers are drop shippers, rack jobbers, truck jobbers, and A) machine vendors. B) credit line wholesalers. C) transport vendors. D) cash and carry wholesalers. E) container transport vendors.

Rack jobbers are wholesalers that 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.

A limited-service wholesaler that furnishes shelves that display merchandise in stores, performs all channel functions, and sells on consignment to retailers is referred to as a A) stack loader. B) rack jobber. C) drop shipper. D) desk jobber. E) truck jobber.

Selling on consignment to retailers, which means they retain the title to the products displayed and bill retailers only for the merchandise sold, is characteristic of which limited-service wholesaler? A) truck jobbers B) transport vendors C) rack jobbers D) cash and carry wholesalers E) drop shippers

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

Which type of wholesaler traditionally sells hosiery, toys, and health and beauty items? A) cash and carry wholesalers B) truck jobbers C) general merchandise wholesalers D) rack jobbers E) drop shippers

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 the following would be the wisest wholesaler choice for its requirements? A) a rack jobber B) a truck jobber C) a cash and carry wholesaler D) a desk jobber E) a drop shipper

Cash and carry wholesalers A) furnish the racks or shelves that display merchandise in retail stores, perform all channel functions, and sell on consignment to retailers. B) take title to merchandise but sell only to buyers that call on them, pay cash for merchandise, and furnish their own transportation for merchandise. 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.

Wholesalers that take title to merchandise but sell only to buyers that call on them, pay for and move/take away the merchandise themselves are referred to as A) rack jobbers. B) truck jobbers. C) transport vendors. D) cash and carry wholesalers. E) drop shippers.

Cash and carry wholesalers A) handle bulky items such as lumber, bricks, and telephone poles. B) handle perishable items such as flowers, baked goods, and deli meats. C) handle office supplies, electrical supplies, hardware products, and groceries. D) are a kind of full-service wholesaler. E) lease vending machines to merchants and refill them as needed on a cash only basis.

Drop shippers 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.

Another name for a drop shipper is a A) drop runner. B) desk jobber. C) transport vendor. D) container transport vendor. E) stock jobber.

Wholesalers that own the merchandise they sell but do not physically handle, stock, or deliver it are referred to as A) cash and carry wholesalers. B) rack jobbers. C) truck jobbers. D) manufacturer's representatives. E) drop shippers.

Wholesalers that simply solicit orders from retailers and other wholesalers and have the merchandise shipped directly from a producer to a buyer are referred to as A) cash and carry wholesalers. B) rack jobbers. C) drop shippers. D) truck jobbers. E) manufacturer's representatives.

Coal, lumber, and chemicals, which are sold in extremely large quantities, are traditionally sold by which type of wholesaler? A) cash and carry wholesalers B) rack jobbers C) truck jobbers D) general merchandise wholesalers E) drop shippers

Which of the following firms has made the wisest wholesaler choice for its product? A) Sam's Coal Country uses a drop shipper for its coal. B) Amy's Amazing Appetizers uses a rack jobber for its frozen apricot aperitifs. C) Hannah's Hardware uses a rack jobber for its hinges. D) Shayna's Superior Supplies uses a desk jobber for its staplers. E) Nova's Novelties uses a truck jobber for its never-needs-a-battery night lights.

Truck jobbers are wholesalers that A) furnish the racks or shelves that display merchandise in retail stores, perform all channel functions, and sell on consignment to retailers. B) store all the merchandise they sell in their trucks. 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, carry noncompetitive, complementary merchandise in an exclusive territory, and use over-the-road transportation for all product deliveries.

Wholesalers that have a small warehouse from which they stock their trucks for distribution to retailers are referred to as A) cash and carry wholesalers. B) truck jobbers. C) rack jobbers. D) drop shippers. E) manufacturer's representatives.

Wholesalers that handle a limited assortment of fast-moving or perishable items that are sold for cash directly from trucks in their original packages are referred to as A) rack jobbers. B) drop shippers. C) truck jobbers. D) cash and carry wholesalers. E) manufacturer's representatives.

Bakery items, dairy products, and meat that are sold for cash in their original packages are traditionally sold by which type of wholesaler? A) rack jobbers B) drop shippers C) cash and carry wholesalers D) truck jobbers E) general merchandise wholesalers

A ________ would most likely use truck jobbers to distribute its products. A) clothing manufacturer B) manufacturer of electric generators C) leather goods importer D) pharmaceutical company E) meat processing plant

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

Which of the following statements best describes the key difference between merchant wholesalers and agents and brokers? A) Merchant wholesalers don't perform all channel functions, whereas agents and brokers do. B) Agents and brokers only deal with consumer channels. C) Agents and brokers make their profits based on the sales of merchandise they own, while merchant wholesalers make profits based on fees paid for their services. D) Merchant wholesalers take title to merchandise, whereas agents and brokers do not. E) Agents and brokers take title to merchandise, whereas merchant wholesalers do not.

Manufacturers' agent are agents who A) represent a single producer and carry all products in the producer's lines. B) work for several producers and carry noncompetitive, complementary merchandise in an exclusive territory. 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) own the merchandise they sell but do not physically handle, stock, or deliver it. E) furnish the racks or shelves that display merchandise in retail stores, perform all channel functions, and sell on consignment to retailers.

Intermediaries that work for several producers and carry noncompetitive, complementary merchandise in an exclusive territory are referred to as A) selling agents. B) line brokers. C) distribution brokers. D) manufacturers' agents. E) brokers.

Another name for a manufacturer's agent is a A) manufacturer's desk jobber. B) manufacturer's transport vendor. C) manufacturer's representative. D) manufacturer's wholesaler. E) manufacturer's rack jobber.

A grocery manufacturer that is seeking an agent that would act on its behalf on a permanent basis and receive a commission should use a A) food broker. B) grocery broker. C) selling agent. D) dual distribution system. E) rack jobber.

Selling agents are agents that A) furnish the racks or shelves that display merchandise in retail stores, perform all channel functions, and sell on consignment to retailers. B) represent a single producer and are responsible for the entire marketing function of that producer. C) work for several producers and carry noncompetitive, complementary merchandise in an exclusive territory. D) take title to merchandise but sell only to buyers that call on them, pay cash for merchandise, and furnish their own transportation for the merchandise. E) sell primarily large bulky products.

Intermediaries that represent a single producer and are responsible for the entire marketing function of that producer are referred to as A) brokers. B) line brokers. C) selling agents. D) distribution brokers. E) manufacturers' agents.

Intermediaries that represent a single producer and are responsible for designing promotional plans, setting prices, determining distribution policies, and making recommendations on product strategy are referred to as A) brokers. B) line brokers. C) distribution brokers. D) selling agents. E) manufacturer's agents.

Carla's Cards uses a ________ to sell and market the entire line of greeting cards. It designs promotional plans, sets prices, determines distribution policies, and makes recommendations to Carla on product strategy. A) manufacturer's agent B) broker C) manufacturer's branch office D) manufacturer's sales office E) selling agent

Brokers are independent firms or individuals who A) represent a single producer and are responsible for the entire marketing function of that producer. B) work for several producers and carry noncompetitive, complementary merchandise in an exclusive territory. C) take title to merchandise but sell only to buyers that call on them, pay cash for merchandise, and furnish their own transportation for the merchandise. D) own the merchandise they sell but do not physically handle, stock, or deliver it. E) bring buyers and sellers together to make sales.

Independent firms or individuals whose principal function is to bring buyers and sellers together to make sales are referred to as A) manufacturers' agents. B) brokers. C) selling agents. D) manufacturer's branches. E) manufacturer's sales offices.

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

A unique broker that acts in many ways like a manufacturer's agent is a food broker, representing buyers and sellers in the grocery industry. Food brokers differ from conventional brokers because they act on behalf of producers on a permanent basis and A) receive a commission for their services. B) are paid a flat fee for each time the shelves are stocked. C) are paid by both the buyer and seller separately depending upon the size of the order. D) are paid a commission by the buyer and a bonus by the seller. E) are paid a flat fee by both the buyer and seller, but receive a bonus based upon the percentage of increased sales by quarter.

Freightfinder.com is an Internet company that is called a "go-between." If a trucker needs to find a load for a particular trade lane, he or she can visit this site, list the price and available truck space, and find a company that needs a shipment moved. Since the purpose of this website is to put buyer and sellers together so that a single sale can be made, this website can be categorized as A) a selling agent. B) a manufacturer's representative. C) a manufacturer's agent. D) a broker. E) an administrator.

A business in Kansas City, Missouri, looking to rent office space should use ________ to help it locate the most suitable space at the best possible rate. A) a selling agent B) a manufacturer's representative C) a manufacturer's agent D) an administrator E) a broker

Wholly owned extensions of the producer that perform wholesaling activities are referred to as A) general merchandise wholesalers. B) cash and carry wholesalers. C) agents and brokers. D) manufacturer's branch or sales offices. E) merchant wholesalers.

Unlike merchant wholesalers, agents, and brokers, manufacturers' branches and sales offices are ________ that perform wholesaling activities. A) independent distribution managers B) independent intermediary channels C) wholly owned extensions of the producer D) wholly owned extensions of the distributor E) wholly owned extensions of the retailer

A manufacturer's branch office A) carries a producer's inventory and performs the functions of a full-service wholesaler. B) performs a sales function as an option to agents and brokers. C) works for several producers and carries noncompetitive, complementary merchandise in an exclusive territory. D) takes title to merchandise but sells only to buyers that call on them, pay cash for merchandise, and furnish their own transportation for the merchandise. E) brings buyers and sellers together to make sales.

A manufacturer's sales office A) works for several producers and carries noncompetitive, complementary merchandise in an exclusive territory. B) takes title to merchandise but sells only to buyers that call on them, pay cash for merchandise, and furnish their own transportation for the merchandise. C) carries a producer's inventory, performs the functions of a full-service wholesaler, and is an alternative to a merchant wholesaler. D) does not carry inventory, typically performs a sales function, and is an alternative to agents and brokers. E) brings buyers and sellers together to make sales.

A wholly owned extension of the producer that does not carry inventory, typically performs only a sales function, and is an alternative to agents and brokers is referred to as a A) brokering agent. B) cash and carry wholesaler. C) manufacturer's sales office. D) manufacturer's branch office. E) merchant wholesaler.

Similar to the West Edmonton Mall in Alberta, Canada, with shopping, restaurants, hotels, and a theme park, the Mall of America is a variation of A) a central business district. B) a regional shopping center. C) an entertainment district. D) a destination mall concept. E) an anchored mall.

Mall of America has three ________ stores: Macy's, Nordstrom, and Sears. A) strip mall B) local competitor C) broker D) retailing mix E) anchor

Key target markets for Mall of America are A) the interstate market and discount shoppers. B) shoppers who seek mainstream experiences and bargain hunters. C) large numbers of similar retailers to maintain a consistent retail profile. D) budget-conscious travelers and time-poor shoppers. E) the local market and tourists.

To continue to be successful, Mall of America must A) focus mostly on attracting suitable employees. B) keep a huge and diverse portfolio of retailers and attractions in the mall. C) refine and focus the retail mix to create a more consistent purchasing experience. D) promote its location as a key feature. E) reduce the variety of retailers to contain the costs of appealing to a wide range of customers.

Describe several of the technical solutions that power today's "smart store."

Name the four utilities offered by retailers and identify a retailer that provides that utility.

Explain the global impact of retailing.

Briefly describe the three ways retail outlets can be classified.

Briefly describe the advantages of being an independent retailer and the benefits an independent retailer can offer customers.

Explain the relationship between a franchisee and a franchisor.

Briefly describe the two general types of franchises.

Briefly describe the three levels of service offered by retail outlets.

Explain the difference between breadth of line and depth of line. Be sure to include the definition of scrambled merchandising in your explanation.

Why are vending machine prices often higher than those in a retail store?

Explain why direct mail and catalogs are an attractive form of retailing.

What is the retailing mix?

Explain the difference between a markup, an original markup, and a maintained markup.

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