Question 1

Alex is preparing the new strategic plan for a large retailer. Several aspects of the retailer are to be evaluated, in order to make plans and set goals. Of all the issues that Alex can select in developing the new strategic plan, which of the following is the least flexible?

Accepted Answer

A)  Store atmosphere
B)  Scrambled merchandising
C)  Retail positioning
D)  Store image
E)  LocationF) B) and D)
G) A) and C)

Question 2

Which of the following wholesalers never take actual possession of the goods?

Accepted Answer

A)  Drop shippers
B)  Cash-and-carry wholesalers
C)  Truck jobbers
D)  Mail-order wholesalers
E)  Rack jobbersF) None of the above
G) D) and E) A

Question 3

Agents and brokers that facilitate and negotiate purchases but do not actually take title to products are also known as

Accepted Answer

A)  functional wholesalers.
B)  commission wholesalers.
C)  hands-off intermediaries.
D)  contract negotiators.
E)  functional middlemen.F) A) and E)
G) C) and D)

Question 4

Appliances are an example of a major product line commonly carried by discount stores.

Accepted Answer

A) True 
 B)False

Question 5

Direct selling, direct marketing, and vending machines are all examples of

Accepted Answer

A)  producing.
B)  advertising.
C)  promoting.
D)  retailing.
E)  wholesaling.F) B) and C)
G) A) and C)

Question 6

With respect to retailing, what is the "party plan"?

Accepted Answer

A)  A sales representative has a party at her home to demonstrate products to a group of friends and associates.
B)  A party is set up that demonstrates a product and provides free samples of the product to all in attendance.
C)  An individual is asked to tell two friends about a product, who are in turn each asked to tell two friends, etc. until a sufficient number of people are reached.
D)  A store has a special sale that resembles a party, and those who come are asked to buy the featured products.
E)  A consumer acts as a host and invites friends to view merchandise in a group setting, where a salesperson demonstrates the products.F) A) and B)
G) A) and D)

Question 7

General-line wholesalers are a type of full-service merchant wholesaler.

Accepted Answer

A) True 
 B)False

Question 8

Drop shippers

Accepted Answer

A)  take title to but not physical possession of the goods.
B)  do not take title to or physical possession of the goods.
C)  take title to and physical possession of the goods.
D)  do not take title to but take physical possession of the goods.
E)  are similar to truck wholesalers but provide the extra service of placing products on retailers' shelves.F) A) and E)
G) A) and B)

Question 9

Warehouse showrooms are able to sell products at low prices by passing some of their marketing functions on to consumers.

Accepted Answer

A) True 
 B)False

Question 10

Victor knows that if he decides to buy a franchise, he will most likely have to supply

Accepted Answer

A)  management know-how and labor.
B)  buildings and daily operations.
C)  marketing assistance and management know-how.
D)  a percentage of total sales and expertise.
E)  labor and daily operations.F) A) and E)
G) B) and E)

Question 11

Which of the following is not a factor used to classify wholesalers?

Accepted Answer

A)  Whether the wholesaler is owned by the producer
B)  Whether the wholesaler takes title to the products it handles
C)  The range of services offered by the wholesaler
D)  The price range of the products carried by the wholesaler
E)  The breadth and depth of the product lines carried by the wholesalerF) B) and D)
G) B) and E)

Question 12

Store atmospherics are used to create emotional effects that enhance the probability of purchasing.

Accepted Answer

A) True 
 B)False  True

Question 13

Calhoun Produce, a ____, takes possession of truckloads of tomatoes, arranges for storage, and transports them to auctions to be sold.

Accepted Answer

A)  manufacturer's agent
B)  selling agent
C)  commission broker
D)  commission merchant
E)  selling brokerF) All of the above
G) A) and B)

Question 14

Full-service merchant wholesalers are either general merchandise wholesalers or specialty-line wholesalers.

Accepted Answer

A) True 
 B)False

Question 15

Which of the following is a large-scale, members-only, retailer that combines cash-and-carry wholesaling with discount retailing?

Accepted Answer

A)  Warehouse showroom
B)  Warehouse club
C)  Catalog showroom
D)  Category killer
E)  HypermarketF) B) and E)
G) A) and D)

Question 16

The primary function of most wholesalers is to

Accepted Answer

A)  support the needs of the manufacturers and provide them with market information.
B)  provide for the unique needs of the individual retailers buying their merchandise.
C)  provide information system tracking of inventory for the ultimate consumer.
D)  perform physical distribution of products from manufacturers to retailers.
E)  develop and share database information about customers.F) C) and E)
G) A) and E) D

Question 17

New store formats and advances in _______________ are making the retail environment highly dynamic and competitive.

Accepted Answer

A)  e-commerce
B)  inventory management
C)  product styles and quality
D)  shopping mall configurations
E)  information technologyF) A) and D)
G) A) and B)

Question 18

Within the same franchising organization, all franchisees pay the same amount for the same services.

Accepted Answer

A) True 
 B)False

Question 19

The primary advantage of franchising is the complete control the franchisee has over the business.

Accepted Answer

A) True 
 B)False

Question 20

Identifying an unserved or underserved market segment and serving it through a strategy that is distinguished in the mind of the consumer is called

Accepted Answer

A)  the marketing concept.
B)  the wheel of retailing.
C)  retail positioning.
D)  targeted retailing.
E)  scrambled merchandising.F) B) and E)
G) A) and B)

Exam 15: Retailing, Direct Marketing and Wholesaling

Alex is preparing the new strategic plan for a large retailer. Several aspects of the retailer are to be evaluated, in order to make plans and set goals. Of all the issues that Alex can select in developing the new strategic plan, which of the following is the least flexible?

Correct AnswerverifiedShow Answer

Which of the following wholesalers never take actual possession of the goods?

Correct AnswerverifiedA

Agents and brokers that facilitate and negotiate purchases but do not actually take title to products are also known as

Correct AnswerverifiedShow Answer

Appliances are an example of a major product line commonly carried by discount stores.

Correct AnswerverifiedShow Answer

Direct selling, direct marketing, and vending machines are all examples of

Correct AnswerverifiedShow Answer

With respect to retailing, what is the "party plan"?

Correct AnswerverifiedShow Answer

General-line wholesalers are a type of full-service merchant wholesaler.

Correct AnswerverifiedShow Answer

Drop shippers

Correct AnswerverifiedShow Answer

Warehouse showrooms are able to sell products at low prices by passing some of their marketing functions on to consumers.

Correct AnswerverifiedShow Answer

Victor knows that if he decides to buy a franchise, he will most likely have to supply

Correct AnswerverifiedShow Answer

Which of the following is not a factor used to classify wholesalers?

Correct AnswerverifiedShow Answer

Store atmospherics are used to create emotional effects that enhance the probability of purchasing.

Correct AnswerverifiedTrue

Calhoun Produce, a ____, takes possession of truckloads of tomatoes, arranges for storage, and transports them to auctions to be sold.

Correct AnswerverifiedShow Answer

Full-service merchant wholesalers are either general merchandise wholesalers or specialty-line wholesalers.

Correct AnswerverifiedShow Answer

Which of the following is a large-scale, members-only, retailer that combines cash-and-carry wholesaling with discount retailing?

Correct AnswerverifiedShow Answer

The primary function of most wholesalers is to

Correct AnswerverifiedD

New store formats and advances in _______________ are making the retail environment highly dynamic and competitive.

Correct AnswerverifiedShow Answer

Within the same franchising organization, all franchisees pay the same amount for the same services.

Correct AnswerverifiedShow Answer

The primary advantage of franchising is the complete control the franchisee has over the business.

Correct AnswerverifiedShow Answer

Identifying an unserved or underserved market segment and serving it through a strategy that is distinguished in the mind of the consumer is called

Correct AnswerverifiedShow Answer

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True

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D

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