Question 1

The amount added to the cost the retailer paid for a product to reach the final selling price is referred to as a(n) __________.

Accepted Answer

A)  markup
B)  markdown
C)  original markup
D)  maintained markup
E)  cost-plus markupF) A) and C)
G) D) and E)

Question 2

Explain why direct mail is an attractive form of retailing.

Accepted Answer

Direct mail retailing is attractive beca...

Question 3

Merchants such as the Burlington Coat Factory sell brand-name merchandise at lower than regular prices.This means that they are using a(n)

Accepted Answer

A)  off-price retailing strategy.
B)  markdown pricing strategy.
C)  everyday fair pricing strategy.
D)  everyday low pricing strategy.
E)  maintained markdown pricing strategy.F) A) and C)
G) A) and E)

Question 4

Drop shippers

Accepted Answer

A)  own the merchandise they sell but do not physically handle,stock,or deliver it.
B)  perform all channel functions,and sell on consignment to retailers.
C)  take title to merchandise but sell only to buyers who call on them,pay cash for merchandise,and furnish their own transportation for merchandise.
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) C) and E)
G) A) and D)

Question 5

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

Accepted Answer

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

Question 6

The sales of products and services to consumers through personal interactions and demonstrations in their homes or offices is referred to as __________.

Accepted Answer

A)  direct selling
B)  person-to-person sales
C)  face-to-face selling
D)  direct response selling
E)  customized sellingF) D) and E)
G) B) and E)

Question 7

-According to the UMD13: Same-Store Sales Growth Marketing Dashboard above,which retailer has the greatest same-store sales growth?

Accepted Answer

A)  Target
B)  Neiman Marcus
C)  Apple
D)  Best Buy
E)  TiffanyF) B) and C)
G) All of the above

Question 8

Location-based social networking apps such as Foursquare reward customers for

Accepted Answer

A)  using minutes on their smartphones.
B)  shopping online.
C)  responding to TV ads.
D)  reporting their locations and visiting stores.
E)  answering customer service surveys on their smartphones.F) D) and E)
G) All of the above

Question 9

When Home Depot switched its in-store light fixture displays to compact fluorescent light bulbs it saved __________ per year.

Accepted Answer

A)  $16 million
B)  $24 million
C)  $29 million
D)  $31 million
E)  $42 millionF) A) and B)
G) A) and C)

Question 10

Which of the following statements regarding telemarketing is most accurate?

Accepted Answer

A)  Shopping bots are computers that place automated or "robo" (i.e.robotic) telemarketing calls.
B)  Direct-mail is typically viewed as more efficient means of targeting consumers than telemarketing.
C)  Telemarketing has risen in popularity as a result of the National Please-Do-Call registry legislation.
D)  Consumer privacy,industry standards,and ethical guidelines have become important issues.
E)  Some firms are considering shifting their direct-mail and door-to-door budgets to telemarketing techniques.F) A) and D)
G) A) and E)

Question 11

Specialty merchandise wholesalers

Accepted Answer

A)  carry a broad assortment of merchandise and perform all channel functions.
B)  own the merchandise they sell but do not physically handle,stock,or deliver it.
C)  offer a relatively narrow range of products but has an extensive assortment within the product lines carried.
D)  work for several producers,carry noncompetitive,complementary merchandise in an exclusive territory,and use over-the-road transportation for all product deliveries.
E)  deal exclusively with small low-cost consumer goods that are distributed to a select number of large retail chains.F) B) and E)
G) A) and D)

Question 12

Which of the following is a commonly used method of classifying retail outlets?

Accepted Answer

A)  service versus product
B)  form of ownership
C)  proportion of national versus private label brands carried
D)  revenues generated
E)  profitabilityF) A) and D)
G) A) and C)

Question 13

-Best Buy has approximately what amount of sales per square foot according to the UMD13: Sales per Square Foot Marketing Dashboard above?

Accepted Answer

A)  $300
B)  $600
C)  $900
D)  $3,500
E)  $5,400F) All of the above
G) C) and D)

Question 14

As a business format franchisor,McDonald's provides step-by-step procedures for most aspects of the business and

Accepted Answer

A)  provides an accounting system to pay the franchisee bills promptly.
B)  shops for the best food values.
C)  maintains the property.
D)  guidelines for the most likely decisions a franchisee will face.
E)  disciplines dishonest employees.F) B) and C)
G) B) and E)

Question 15

A maintained markup refers to

Accepted Answer

A)  the difference between the final selling price and the retailer's cost.
B)  the amount subtracted from the cost the retailer paid for a product to reach the initial selling price.
C)  the amount the manufacturer adds to achieve the desired suggested retail price.
D)  the net margin.
E)  the highest price listed on the product sales ticket.F) B) and D)
G) A) and B)

Question 16

Godiva Chocolatier invites consumers to stop by one of its stores for an unforgettable experience,including delectable chocolates,decorative gift collections,and unrivaled customer care.What type of retail service is Godiva offering?

Accepted Answer

A)  full-service
B)  limited-service
C)  self-service
D)  restricted-service
E)  functional-serviceF) A) and B)
G) None of the above

Question 17

Growth in the direct-selling industry is the result of two trends: (1) there is a growing number of companies that are using direct selling to reach consumers who prefer one-on-one customer service and a social shopping experience rather than online shipping or big discount stores and (2)

Accepted Answer

A)  many direct selling retailers are expanding into markets outside of the United States.
B)  increased gas prices and traffic congestion are causing people to want stores to deliver products to them.
C)  the pendulum is beginning to swing back to more mothers (and fathers) staying home during the day with children,making direct selling more convenient.
D)  the purchase or lease of real estate to build an actual "brick" retail store is becoming prohibitive.
E)  graduating business students are finding it more difficult to find a traditional sales position and like the idea of being their own bosses.F) B) and C)
G) A) and B)

Question 18

The Mall of America is an example of which type of setting for a store location?

Accepted Answer

A)  central business district
B)  regional shopping center
C)  community shopping center
D)  strip mall
E)  power centerF) A) and C)
G) B) and E)

Question 19

Which of the following firms has made the wisest wholesaler choice for its product?

Accepted Answer

A)  Hannah's Hardware uses a rack jobber for its hammers.
B)  Fiona's Floral uses a truck jobber for its cut roses.
C)  Sam's Coal Country uses a truck jobber for its subway cars.
D)  Shayna's Superior Supplies uses a desk jobber for its staplers.
E)  Josh's Jackhammers uses a rack jobber for its hard hats.F) None of the above
G) D) and E)

Question 20

Timing is an important element of markdowns.Those retailers who take a markdown as soon as sales fall off are most likely doing so to __________.

Accepted Answer

A)  placate dissatisfied customers
B)  enhance customer perceptions of product quality
C)  create an image as a "cutting edge" retailer
D)  free up valuable selling space and cash
E)  react to the entry of a new competitorF) A) and E)
G) B) and E)

Exam 13: Retailing and Wholesaling

Godiva Chocolatier invites consumers to stop by one of its stores for an unforgettable experience,including delectable chocolates,decorative gift collections,and unrivaled customer care.What type of retail service is Godiva offering?

Correct AnswerverifiedShow Answer

Location-based social networking apps such as Foursquare reward customers for

Correct AnswerverifiedShow Answer

Growth in the direct-selling industry is the result of two trends: (1) there is a growing number of companies that are using direct selling to reach consumers who prefer one-on-one customer service and a social shopping experience rather than online shipping or big discount stores and (2)

Correct AnswerverifiedShow Answer

-According to the UMD13: Same-Store Sales Growth Marketing Dashboard above,which retailer has the greatest same-store sales growth?

Correct AnswerverifiedShow Answer

The sales of products and services to consumers through personal interactions and demonstrations in their homes or offices is referred to as __________.

Correct AnswerverifiedShow Answer

Which of the following firms has made the wisest wholesaler choice for its product?

Correct AnswerverifiedShow Answer

The Mall of America is an example of which type of setting for a store location?

Correct AnswerverifiedShow Answer

Explain why direct mail is an attractive form of retailing.

Correct AnswerverifiedDirect mail retailing is attractive beca...View AnswerShow Answer

As a business format franchisor,McDonald's provides step-by-step procedures for most aspects of the business and

Correct AnswerverifiedShow Answer

Specialty merchandise wholesalers

Correct AnswerverifiedShow Answer

Merchants such as the Burlington Coat Factory sell brand-name merchandise at lower than regular prices.This means that they are using a(n)

Correct AnswerverifiedShow Answer

When Home Depot switched its in-store light fixture displays to compact fluorescent light bulbs it saved __________ per year.

Correct AnswerverifiedShow Answer

Drop shippers

Correct AnswerverifiedShow Answer

The amount added to the cost the retailer paid for a product to reach the final selling price is referred to as a(n) __________.

Correct AnswerverifiedShow Answer

-Best Buy has approximately what amount of sales per square foot according to the UMD13: Sales per Square Foot Marketing Dashboard above?

Correct AnswerverifiedShow Answer

A maintained markup refers to

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Which of the following is a commonly used method of classifying retail outlets?

Correct AnswerverifiedShow Answer

Which of the following statements regarding telemarketing is most accurate?

Correct AnswerverifiedShow Answer

Timing is an important element of markdowns.Those retailers who take a markdown as soon as sales fall off are most likely doing so to __________.

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
Direct mail retailing is attractive beca...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified