Question 1

Which of these statements about outlet stores is false?

Accepted Answer

A)   Outlets allow retailers to maintain an image of offering merchandise at full price in their primary store.
B)   The growth of "bargain shopping" has increased demand for this type of off-price retailing.
C)   Increasingly, retailers are offering merchandise made expressly for the outlet division.
D)   Manufacturers use outlet stores to clear excess merchandise.
E)   Outlet stores require memberships, including an annual fee.F) C) and E)
G) B) and E)

Question 2

In the retail life cycle, ________ is the stage of emergence of a retail outlet, with a sharp departure from existing competition.

Accepted Answer

A)   retail innovation
B)   maturity
C)   introduction
D)   early growth
E)   accelerated developmentF) A) and B)
G) A) and E)

Question 3

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

Accepted Answer

A)   a regional shopping center.
B)   an urban microcenter.
C)   a megaplex.
D)   a hypermarket.
E)   a supercenter.F) A) and E)
G) B) and E)

Question 4

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

Accepted Answer

A)   Kohl's.
B)   Target
C)   Best Buy.
D)   JC Penney.
E)   Bloomingdale'sF) A) and B)
G) A) and E)

Question 5

Another name for a manufacturer's agent is a

Accepted Answer

A)   manufacturer's desk jobber.
B)   manufacturer's transport vendor.
C)   manufacturer's representative.
D)   manufacturer's wholesaler.
E)   manufacturer's rack jobber.F) All of the above
G) B) and E)

Question 6

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

Accepted Answer

The four utilities retailing offers are ...

Question 7

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

Accepted Answer

A)   early growth
B)   introduction
C)   initiation
D)   maturity
E)   accelerated developmentF) None of the above
G) All of the above

Question 8

Retail outlets, like products, experience the process of growth and decline, which is referred to as the

Accepted Answer

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

Question 9

Most stores today are near several others in one of five settings: the central business district, the community shopping center, the regional shopping center, the strip mall, or the

Accepted Answer

A)   suburban downtown.
B)   power center.
C)   exurb value center.
D)   rural micromall.
E)   urban megacenter.F) D) and E)
G) A) and E)

Question 10

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

Accepted Answer

Breadth of line means the store carries ...

Question 11

Most of the 3.8 million retail establishments in the United States, including hardware stores, convenience stores, clothing stores, and electronics stores, are considered

Accepted Answer

A)   corporate chains.
B)   contractual systems.
C)   independent retailers.
D)   conglomerates.
E)   multinationals.F) D) and E)
G) All of the above

Question 12

A community shopping center is a

Accepted Answer

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)   cluster of stores that serves people who are within a 5- to 10-minute drive.
D)   collection of category killers usually located outside a major amusement park or attraction.
E)   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.F) C) and D)
G) A) and E)

Question 13

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

Accepted Answer

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

Question 14

Cash and carry wholesalers

Accepted Answer

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.F) All of the above
G) C) and D)

Question 15

In response to the changes in the United States, many direct sellers are implementing ________ strategy by expanding into other countries with their current product lines.

Accepted Answer

A)   a market development
B)   a market penetration
C)   an accelerated development
D)   a product development
E)   a diversificationF) A) and C)
G) B) and E)

Question 16

Direct-mail and catalog retailing are examples of

Accepted Answer

A)   nonstore retailing.
B)   intertype retailing.
C)   online retailing.
D)   print-media retailing.
E)   dual retailing.F) A) and C)
G) B) and D)

Question 17

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.

Accepted Answer

A)   5
B)   10
C)   15
D)   20
E)   25F) B) and E)
G) B) and C)

Question 18

A markup refers to

Accepted Answer

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.F) A) and B)
G) A) and C)

Question 19

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?

Accepted Answer

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.F) None of the above
G) A) and B)

Question 20

As a franchisor, Orangetheory Fitness would assist a franchisee in selecting the store location, setting up the store, advertising, and

Accepted Answer

A)   developing the marketing program.
B)   training personnel.
C)   offering performance bonuses.
D)   ordering and restocking inventory.
E)   paying insurance and legal fees.F) None of the above
G) A) and D)

Exam 16: Retailing and Wholesaling

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

Correct AnswerverifiedShow Answer

Direct-mail and catalog retailing are examples of

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A markup refers to

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Most stores today are near several others in one of five settings: the central business district, the community shopping center, the regional shopping center, the strip mall, or the

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedBreadth of line means the store carries ...View AnswerShow Answer

Cash and carry wholesalers

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In response to the changes in the United States, many direct sellers are implementing ________ strategy by expanding into other countries with their current product lines.

Correct AnswerverifiedShow Answer

Which of these statements about outlet stores is false?

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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.

Correct AnswerverifiedShow Answer

Retail outlets, like products, experience the process of growth and decline, which is referred to as the

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Most of the 3.8 million retail establishments in the United States, including hardware stores, convenience stores, clothing stores, and electronics stores, are considered

Correct AnswerverifiedShow Answer

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?

Correct AnswerverifiedShow Answer

In the retail life cycle, ________ is the stage of emergence of a retail outlet, with a sharp departure from existing competition.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedThe four utilities retailing offers are ...View AnswerShow Answer

A community shopping center is a

Correct AnswerverifiedShow Answer

Another name for a manufacturer's agent is a

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

As a franchisor, Orangetheory Fitness would assist a franchisee in selecting the store location, setting up the store, advertising, and

Correct AnswerverifiedShow Answer

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Breadth of line means the store carries ...
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The four utilities retailing offers are ...
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