Question 1

The "wheel of retailing" theory says that new retailers enter the market as high-status, high-margin, high-price operators and then evolve into discount stores as competition becomes more intense.

Accepted Answer

A) True 
 B)False

Question 2

Large self-service retail stores that emphasize lower margins to get faster turnover--especially on "soft goods"--are called:

Accepted Answer

A)   mass-merchandisers.
B)   convenience food stores.
C)   department stores.
D)   specialty shops.
E)   single-line stores.F) C) and D)
G) C) and E)

Question 3

Which of the following is best illustrated by a supermarket that carries Nintendo video games?

Accepted Answer

A)   The superstore concept
B)   Scrambled merchandising
C)   The wheel of retailing
D)   Target marketing
E)   Mass merchandisingF) None of the above
G) C) and D)

Question 4

Department stores:

Accepted Answer

A)   are large stores which emphasize depth and distinctiveness rather than variety.
B)   have declined since the 1970s because of competition from well-run limited-line stores and mass-merchandisers.
C)   are usually weak in customer service.
D)   usually emphasize specialty products.
E)   All of these alternatives are true for department stores.F) B) and D)
G) A) and D)

Question 5

Retailing includes all of the activities involved in reselling goods to final consumers, but it does not include the sale of services to final consumers since services must be produced in the presence of the consumer.

Accepted Answer

A) True 
 B)False

Question 6

Agent wholesalers operate at relatively low cost--sometimes 2 to 6 percent of their selling price.

Accepted Answer

A) True 
 B)False

Question 7

A "supercenter" carries all the goods and services that a consumer might routinely purchase.

Accepted Answer

A) True 
 B)False

Question 8

Single-line stores that used to carry anything they could sell in reasonable volume were the main retailers in the United States.

Accepted Answer

A) True 
 B)False

Question 9

A good share of total U.S. wholesale sales are made by manufacturers' sales branches because:

Accepted Answer

A)   they are well-managed.
B)   branches are usually placed in the best market areas.
C)   costs are lower because some marketing functions are eliminated.
D)   about half of all wholesale businesses are owned by manufacturers.
E)   All of these are good reasons.F) A) and B)
G) A) and C)

Question 10

"Scrambled merchandising" refers to the practice of conventional retailers handling many products within a limited-line, even though many of these products have to be sold at a low profit.

Accepted Answer

A) True 
 B)False

Question 11

Which of the following is NOT relevant regarding why some consumers prefer one retailer over another?

Accepted Answer

A)   Location.
B)   Discount policies.
C)   Store hours.
D)   Number of salespeople.
E)   All of these choices can be relevant.F) C) and D)
G) A) and E)

Question 12

Department stores:

Accepted Answer

A)   usually aim at customers seeking convenience products.
B)   have accounted for a larger share of retail sales every year since 1950.
C)   have no trouble holding their own against mass-merchandisers.
D)   are organized into separate departments.
E)   All of these alternatives are true for department stores.F) All of the above
G) D) and E)

Question 13

Compared to specialty wholesalers, general merchandise wholesalers handle:

Accepted Answer

A)   a narrower line--or perhaps only a specific line of merchandise.
B)   almost no physical products.
C)   a very narrow assortment of products.
D)   products they do not own, while specialty wholesalers do own them.
E)   a broader variety of products.F) A) and D)
G) C) and D)

Question 14

Regarding supermarkets, which of the following statements is TRUE?

Accepted Answer

A)   It's best to think of supermarkets as "conventional retailers."
B)   Supermarket net profits after taxes usually are about 1 percent of sales--or less.
C)   Worldwide, supermarkets make up the majority of food stores.
D)   The early supermarkets were based on the premise that consumers would pay more for better selection and service.
E)   All of these statements about supermarkets are TRUE.F) C) and D)
G) C) and E)

Question 15

The two basic types of merchant wholesalers are:

Accepted Answer

A)   single-line and limited function.
B)   agents and merchants.
C)   service and general line.
D)   service and limited function.
E)   single-line and general line.F) B) and C)
G) A) and B)

Question 16

A retailer that buys from a rack jobber needs to have an employee who is a specialist in the products the rack jobber handles.

Accepted Answer

A) True 
 B)False

Question 17

Today, about half of all computer hardware and software and a quarter of all books are sold online.

Accepted Answer

A) True 
 B)False

Question 18

Drop-shippers have low operating costs because they do not actually handle the products they sell.

Accepted Answer

A) True 
 B)False

Question 19

Which of the following is NOT a full-service merchant wholesaler?

Accepted Answer

A)   Broker
B)   Single-line wholesaler
C)   General-line wholesaler
D)   General merchandise wholesaler
E)   Specialty wholesalerF) B) and D)
G) D) and E)

Question 20

U.S. Census data show that:

Accepted Answer

A)   less than 15 percent of all retailers have annual sales over $1 million.
B)   very large retailers account for a small percentage of total retail sales.
C)   manufacturers and wholesalers are more numerous than retailers in the United States.
D)   only about 15 percent of all retailers have annual sales over $5 million.
E)   None of these alternatives is correct.F) D) and E)
G) C) and D)

Exam 12: Retailers, Wholesalers, and Their Strategy Planning

Department stores:

Correct AnswerverifiedShow Answer

Single-line stores that used to carry anything they could sell in reasonable volume were the main retailers in the United States.

Correct AnswerverifiedShow Answer

A "supercenter" carries all the goods and services that a consumer might routinely purchase.

Correct AnswerverifiedShow Answer

Large self-service retail stores that emphasize lower margins to get faster turnover--especially on "soft goods"--are called:

Correct AnswerverifiedShow Answer

Department stores:

Correct AnswerverifiedShow Answer

Which of the following is best illustrated by a supermarket that carries Nintendo video games?

Correct AnswerverifiedShow Answer

"Scrambled merchandising" refers to the practice of conventional retailers handling many products within a limited-line, even though many of these products have to be sold at a low profit.

Correct AnswerverifiedShow Answer

Compared to specialty wholesalers, general merchandise wholesalers handle:

Correct AnswerverifiedShow Answer

A retailer that buys from a rack jobber needs to have an employee who is a specialist in the products the rack jobber handles.

Correct AnswerverifiedShow Answer

Retailing includes all of the activities involved in reselling goods to final consumers, but it does not include the sale of services to final consumers since services must be produced in the presence of the consumer.

Correct AnswerverifiedShow Answer

U.S. Census data show that:

Correct AnswerverifiedShow Answer

Drop-shippers have low operating costs because they do not actually handle the products they sell.

Correct AnswerverifiedShow Answer

Regarding supermarkets, which of the following statements is TRUE?

Correct AnswerverifiedShow Answer

The "wheel of retailing" theory says that new retailers enter the market as high-status, high-margin, high-price operators and then evolve into discount stores as competition becomes more intense.

Correct AnswerverifiedShow Answer

A good share of total U.S. wholesale sales are made by manufacturers' sales branches because:

Correct AnswerverifiedShow Answer

Agent wholesalers operate at relatively low cost--sometimes 2 to 6 percent of their selling price.

Correct AnswerverifiedShow Answer

The two basic types of merchant wholesalers are:

Correct AnswerverifiedShow Answer

Today, about half of all computer hardware and software and a quarter of all books are sold online.

Correct AnswerverifiedShow Answer

Which of the following is NOT a full-service merchant wholesaler?

Correct AnswerverifiedShow Answer

Which of the following is NOT relevant regarding why some consumers prefer one retailer over another?

Correct AnswerverifiedShow Answer

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