Question 1

The _____ says that new types of retailers enter the market as low-status, low-margin, low-price operators and then, if successful, evolve into more conventional retailers offering more services with higher operating costs and higher prices.

Accepted Answer

A)   production concept
B)   wheel of retailing theory
C)   mass-merchandising concept
D)   sales concept
E)   break-even analysisF) A) and C)
G) C) and D)

Question 2

Upscale multichannel retailers like Williams-Sonoma use their Web sites to complement their stores (by having the different channels focus on different benefits).

Accepted Answer

A) True 
 B)False

Question 3

The majority of all retailers in the U.S. have annual average sales of less than $1 million.

Accepted Answer

A) True 
 B)False

Question 4

Large sales volume and efficient operation are usually very important for supermarkets, since net profits usually run 1 percent of sales or less.

Accepted Answer

A) True 
 B)False

Question 5

Cash-and-carry wholesalers are more common in underdeveloped nations than in the U.S.--where big warehouse clubs have taken much of the business.

Accepted Answer

A) True 
 B)False

Question 6

Which of the following statements about agent wholesalers is FALSE?

Accepted Answer

A)   Agent wholesalers based in a foreign market can be helpful in working through government red tape because they know the local business customs.
B)   Export and import brokers bring together buyers and sellers from different countries.
C)   Manufacturers' agents can call on international customers at no cost to the producer until something sells.
D)   Export and import agents are basically selling agents who specialize in international trade.
E)   Agent wholesalers are common in international trade.F) B) and D)
G) A) and D)

Question 7

Which of the following is unique to export-import brokers, differentiating them from general brokers?

Accepted Answer

A)   They usually have a temporary relationship with the buyer and seller while a particular deal is negotiated.
B)   They specialize in bringing together buyers and sellers from different countries.
C)   They are especially useful when buyers and sellers do not come into the market very often.
D)   They earn a commission from whichever party hired them when the transaction is completed.
E)   The broker's product is information about what buyers need and what supplies are available.F) B) and D)
G) A) and B)

Question 8

Agent wholesalers are very common in international marketing.

Accepted Answer

A) True 
 B)False

Question 9

Regarding retail sales in the U.S., it is true that:

Accepted Answer

A)   less than 8 percent of all retail sales are made by smaller stores--those with sales less than $1 million a year.
B)   almost 70 percent of all retail sales are made by the largest stores--those with sales over $5 million a year.
C)   corporate chains account for about 50 percent of retail sales.
D)   All of the above are true.
E)   None of the above is true.F) A) and D)
G) C) and D)

Question 10

Walmart, one of the largest mass-merchandisers in the U.S., handles 30 percent or more of the total national sales for whole categories of products.

Accepted Answer

A) True 
 B)False

Question 11

The "wheel of retailing" theory says that:

Accepted Answer

A)   retailers go through cycles from high costs and prices to lower costs and profits.
B)   general stores will dominate U.S. retailing in the next century.
C)   new types of retailers enter as low-status, low-margin, low-price operators and eventually offer more services and charge higher prices.
D)   all of the above are true.
E)   none of the above are true.F) None of the above
G) B) and E)

Question 12

Cooperative chains tend to work with independent retailers, not corporate chain retailers.

Accepted Answer

A) True 
 B)False

Question 13

According to the U.S. Census Bureau, wholesaling is defined as the activities of firms that sell to retailers, but do not sell in large amounts to final consumers, manufacturers, or other institutional users.

Accepted Answer

A) True 
 B)False

Question 14

A combination export manager is a blend of manufacturers' agent and selling agent.

Accepted Answer

A) True 
 B)False

Question 15

A retail store that averages about $17 million in sales annually and specializes in groceries--with self-service and large assortments is a:

Accepted Answer

A)   mass-merchandiser.
B)   specialty shop.
C)   convenience food store.
D)   discount house.
E)   supermarket.F) D) and E)
G) A) and B)

Question 16

Brokers usually have a temporary relationship with the buyer and seller.

Accepted Answer

A) True 
 B)False

Question 17

Manufacturers' sales branches operate like wholesalers, but the U. S. Census Bureau does not consider them wholesaling establishments because they do not involve a separate warehouse.

Accepted Answer

A) True 
 B)False

Question 18

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) All of the above
G) A) and C)

Question 19

Small limited-line shops still dominate retailing in Asia and South America because of the political and legal environments in those regions.

Accepted Answer

A) True 
 B)False

Question 20

Until recently, Triad Equipment, Inc. took trade-ins when it sold new equipment to manufacturers. Now, Triad has a new owner who wants to sell the inventory of used equipment quickly to the best available buyer. He should look for:

Accepted Answer

A)   a manufacturers' sales branch.
B)   a broker.
C)   a selling agent.
D)   a manufacturers' agent.
E)   sales finance company.F) A) and C)
G) A) and B)

Exam 13: Retailers,wholesalers,and Their Strategy Planning

Brokers usually have a temporary relationship with the buyer and seller.

Correct AnswerverifiedShow Answer

The majority of all retailers in the U.S. have annual average sales of less than $1 million.

Correct AnswerverifiedShow Answer

Upscale multichannel retailers like Williams-Sonoma use their Web sites to complement their stores (by having the different channels focus on different benefits).

Correct AnswerverifiedShow Answer

According to the U.S. Census Bureau, wholesaling is defined as the activities of firms that sell to retailers, but do not sell in large amounts to final consumers, manufacturers, or other institutional users.

Correct AnswerverifiedShow Answer

Manufacturers' sales branches operate like wholesalers, but the U. S. Census Bureau does not consider them wholesaling establishments because they do not involve a separate warehouse.

Correct AnswerverifiedShow Answer

The two basic types of merchant wholesalers are:

Correct AnswerverifiedShow Answer

The "wheel of retailing" theory says that:

Correct AnswerverifiedShow Answer

Agent wholesalers are very common in international marketing.

Correct AnswerverifiedShow Answer

Walmart, one of the largest mass-merchandisers in the U.S., handles 30 percent or more of the total national sales for whole categories of products.

Correct AnswerverifiedShow Answer

Large sales volume and efficient operation are usually very important for supermarkets, since net profits usually run 1 percent of sales or less.

Correct AnswerverifiedShow Answer

The _____ says that new types of retailers enter the market as low-status, low-margin, low-price operators and then, if successful, evolve into more conventional retailers offering more services with higher operating costs and higher prices.

Correct AnswerverifiedShow Answer

Small limited-line shops still dominate retailing in Asia and South America because of the political and legal environments in those regions.

Correct AnswerverifiedShow Answer

Until recently, Triad Equipment, Inc. took trade-ins when it sold new equipment to manufacturers. Now, Triad has a new owner who wants to sell the inventory of used equipment quickly to the best available buyer. He should look for:

Correct AnswerverifiedShow Answer

Cash-and-carry wholesalers are more common in underdeveloped nations than in the U.S.--where big warehouse clubs have taken much of the business.

Correct AnswerverifiedShow Answer

Which of the following is unique to export-import brokers, differentiating them from general brokers?

Correct AnswerverifiedShow Answer

Which of the following statements about agent wholesalers is FALSE?

Correct AnswerverifiedShow Answer

Cooperative chains tend to work with independent retailers, not corporate chain retailers.

Correct AnswerverifiedShow Answer

A retail store that averages about $17 million in sales annually and specializes in groceries--with self-service and large assortments is a:

Correct AnswerverifiedShow Answer

A combination export manager is a blend of manufacturers' agent and selling agent.

Correct AnswerverifiedShow Answer

Regarding retail sales in the U.S., it is true that:

Correct AnswerverifiedShow Answer

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