Question 1

One reason manufacturers' sales branches handle over 25 percent of wholesale sales is that they are located in the best market areas.

Accepted Answer

A) True 
 B)False

Question 2

Which of the following are large, self-service stores with many departments that emphasize "soft goods" and staples but still follow the discount house's emphasis on lower margins to get faster turnover?

Accepted Answer

A)   Supermarkets
B)   Discount houses
C)   Supercenters
D)   Mass-merchandisers
E)   Direct-mail retailersF) C) and D)
G) B) and E)

Question 3

Wholesalers:

Accepted Answer

A)   Have had to deal with a competitive threat posed by large retailers that have taken over wholesale functions.
B)   Are using e-commerce to serve customers more effectively.
C)   Face competitive pressure from shipping companies such as FedEx and UPS that make it easier for producers to ship directly to customers.
D)   Are beginning to increase profitability by carefully selecting their retailer-customers.
E)   All of these alternatives are true.F) A) and B)
G) A) and C)

Question 4

Retailers who carry any product line that will sell profitably are practicing "scrambled merchandising."

Accepted Answer

A) True 
 B)False

Question 5

Progressive wholesalers are becoming more concerned with their customers and with adding value in their channels.

Accepted Answer

A) True 
 B)False

Question 6

Corporate chains:

Accepted Answer

A)   can get a cost advantage over independent stores by spreading management costs to many stores.
B)   account for nearly 10 percent of retail sales.
C)   usually cannot obtain economies of scale in distribution.
D)   are declining in importance.
E)   None of these alternatives is correct for corporate chains.F) B) and E)
G) All of the above

Question 7

Which of the following would be considered a retailing "category killer"?

Accepted Answer

A)   PetSmart (pet supplies) 
B)   Best Buy (electronics) 
C)   Home Depot (home improvements) 
D)   IKEA (furniture) 
E)   all of these are "category killers."F) A) and E)
G) A) and D)

Question 8

Door-to-door selling now accounts for less than 1 percent of retail sales in the United States.

Accepted Answer

A) True 
 B)False

Question 9

Corporate chains are taking a smaller percentage of retail sales now that consumers are demanding lower prices.

Accepted Answer

A) True 
 B)False

Question 10

Which of the following would be considered a retailing "category killer"?

Accepted Answer

A)   Office Depot (office supplies) 
B)   PayLess (drugstores) 
C)   Lowe's (home improvements) 
D)   Barnes and Noble (books) 
E)   all of these are "category killers."F) A) and B)
G) A) and C)

Question 11

A(n)  _____ is a blend of manufacturers' agent and selling agent-handling the entire export function for several producers of similar but noncompeting lines.

Accepted Answer

A)   import broker
B)   auction company
C)   export broker
D)   combination export manager
E)   export or import agentF) C) and E)
G) C) and D)

Question 12

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 13

Voluntary chains like SuperValu in groceries are wholesaler-sponsored groups that work with "independent" retailers.

Accepted Answer

A) True 
 B)False

Question 14

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) A) and D)
G) B) and C)

Question 15

A "supercenter":

Accepted Answer

A)   tries to provide all of a customer's routine needs-at a low price.
B)   probably would not affect nearby supermarkets.
C)   is just another name for a mass-merchandiser.
D)   is a large department store which uses supermarket methods.
E)   None of these alternatives is true for a supercenter.F) B) and E)
G) C) and D)

Question 16

Convenience food stores now compete with supermarkets, gas stations, and fast-food outlets.

Accepted Answer

A) True 
 B)False

Question 17

Almost 75 percent of all retail sales are made by the largest stores-those with sales of over $5 million a year.

Accepted Answer

A) True 
 B)False

Question 18

A good marketing manager for a retailer knows that:

Accepted Answer

A)   economic needs are more important than emotional needs in choosing a store.
B)   shopping atmosphere has little comparative importance.
C)   consumers only go to stores that offer the lowest possible prices.
D)   individual consumers have different economic and emotional needs.
E)   All of these alternatives are true.F) B) and D)
G) B) and C)

Question 19

A retailer's "Place" may include:

Accepted Answer

A)   a physical store and/or an online store.
B)   store size and layout.
C)   number of stores.
D)   store hours.
E)   all of these are included in a retailer's "Place."F) D) and E)
G) A) and E)

Question 20

Which of the following most likely reflects the experience of a general store in the post-Civil War south?

Accepted Answer

A)   Its business declined due to decreased product demand.
B)   Its business stayed level due to consumer loyalty.
C)   Its business increased because it added locations.
D)   Its business declined due to lack of variety of goods.
E)   Its business increased due to reduced production costs.F) A) and D)
G) A) and C)

Exam 12: Retailers, Wholesalers, and Their Strategy Planning

Which of the following are large, self-service stores with many departments that emphasize "soft goods" and staples but still follow the discount house's emphasis on lower margins to get faster turnover?

Correct AnswerverifiedShow Answer

A "supercenter":

Correct AnswerverifiedShow Answer

Corporate chains:

Correct AnswerverifiedShow Answer

Which of the following would be considered a retailing "category killer"?

Correct AnswerverifiedShow Answer

Voluntary chains like SuperValu in groceries are wholesaler-sponsored groups that work with "independent" retailers.

Correct AnswerverifiedShow Answer

Retailers who carry any product line that will sell profitably are practicing "scrambled merchandising."

Correct AnswerverifiedShow Answer

Corporate chains are taking a smaller percentage of retail sales now that consumers are demanding lower prices.

Correct AnswerverifiedShow Answer

A(n) _____ is a blend of manufacturers' agent and selling agent-handling the entire export function for several producers of similar but noncompeting lines.

Correct AnswerverifiedShow Answer

A good marketing manager for a retailer knows that:

Correct AnswerverifiedShow Answer

Wholesalers:

Correct AnswerverifiedShow Answer

The two basic types of merchant wholesalers are:

Correct AnswerverifiedShow Answer

One reason manufacturers' sales branches handle over 25 percent of wholesale sales is that they are located in the best market areas.

Correct AnswerverifiedShow Answer

A retailer's "Place" may include:

Correct AnswerverifiedShow Answer

Door-to-door selling now accounts for less than 1 percent of retail sales in the United States.

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

Convenience food stores now compete with supermarkets, gas stations, and fast-food outlets.

Correct AnswerverifiedShow Answer

Almost 75 percent of all retail sales are made by the largest stores-those with sales of over $5 million a year.

Correct AnswerverifiedShow Answer

Which of the following would be considered a retailing "category killer"?

Correct AnswerverifiedShow Answer

Which of the following most likely reflects the experience of a general store in the post-Civil War south?

Correct AnswerverifiedShow Answer

Progressive wholesalers are becoming more concerned with their customers and with adding value in their channels.

Correct AnswerverifiedShow Answer

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