Question 1

A strip mall refers to a

Accepted Answer

A)  suburban mall containing up to 100 stores that draws customer from a 5-to 10-mile radius.
B)  a cluster of stores in a downtown area.
C)  retail location that typically has one primary store (usually a department store branch) with 20 to 40 smaller outlets serving a population of consumers who are within a 10- to 20-minute drive.
D)  cluster of neighborhood stores designed to serve people within a five- to ten- minute drive.
E)  collection of category killers usually located outside a major amusement park or attraction.F) All of the above
G) None of the above

Question 2

Large shopping areas often contain two or three __________ stores,which are well-known national or regional stores such as Sears,Saks Fifth Avenue,and Bloomingdale's.

Accepted Answer

A)  power centers
B)  mega centers
C)  anchor
D)  value
E)  outletF) A) and E)
G) A) and B)

Question 3

Briefly describe the two general types of franchises.

Accepted Answer

Franchises can be classified in two gene...

Question 4

Wholesalers who take title to merchandise but sell only to buyers who call on them,pay cash for merchandise,and furnish their own transportation for merchandise are referred to as __________.

Accepted Answer

A)  rack jobbers
B)  truck jobbers
C)  transport vendors
D)  cash and carry wholesalers
E)  drop shippersF) A) and D)
G) A) and E)

Question 5

Direct selling,sometimes called __________,involves direct sales of goods and services to consumers through personal interactions and demonstrations in their home or office.

Accepted Answer

A)  interface marketing
B)  flex-marketing
C)  interactive selling
D)  responsive selling
E)  door-to-door retailingF) A) and E)
G) B) and C)

Question 6

The National Retail Federation estimates that about __________ percent of retail shrinkage is due to employee theft.

Accepted Answer

A)  14%
B)  24%
C)  34%
D)  44%
E)  54%F) A) and C)
G) All of the above

Question 7

Which of the following retailers is one of the LARGEST hypermarkets in the world?

Accepted Answer

A)  Target
B)  Kroger
C)  Carrefour
D)  Kmart
E)  WalmartF) B) and D)
G) B) and C)

Question 8

Walmart's $469 billion in sales in 2012 surpassed the gross domestic product of all but __________ countries for that same year.

Accepted Answer

A)  5
B)  12
C)  18
D)  29
E)  55F) C) and E)
G) A) and B)

Question 9

Saks Fifth Avenue is an upscale retailer that offers designer brand women's apparel,fragrances,jewelry,and leather accessories.The retailer relies on superior service to sell its products and to retain its customers.Saks Fifth Avenue would be classified as a(n) __________.

Accepted Answer

A)  exclusive-service retailer
B)  limited-service retailer
C)  full-service retailer
D)  premium-service retailer
E)  limited- service retailerF) B) and C)
G) C) and D)

Question 10

Which type of outlet is most likely in its maturity stage of the retail life cycle?

Accepted Answer

A)  single-price stores
B)  value-retail centers
C)  online retailers
D)  business-district retailers
E)  convenience storesF) A) and B)
G) A) and E)

Question 11

Independent retailers account for most of the __________ retail establishments in the United States.

Accepted Answer

A)  50,000
B)  90,000
C)  500,000
D)  900,000
E)  1.1 millionF) C) and D)
G) B) and D)

Question 12

A financial indicator used to compare the increase in sales of stores that have been open for the same period of time is referred to as __________.

Accepted Answer

A)  return in investment
B)  percentage of markup
C)  gross profit
D)  sales per square foot
E)  same-store sales growthF) C) and E)
G) All of the above

Question 13

The key goal for retailers in the accelerated development phase of the retail life cycle is to

Accepted Answer

A)  recover start-up costs.
B)  establish a dominant position in the fight for market share.
C)  delay entering the decline stage of the retail life cycle.
D)  find ways of discouraging customers from moving to low-margin,mass-volume outlets.
E)  establish a retail concept that is a sharp departure from existing competition.F) B) and E)
G) C) and D)

Question 14

What type of contractual system describes a situation where assistance in selecting the location,setting up the store or facility,advertising,and training personnel is provided by the parent company?

Accepted Answer

A)  administered system
B)  conglomerate system
C)  franchise system
D)  vertical integrated system
E)  retail-sponsored cooperativeF) A) and D)
G) A) and C)

Question 15

Limited- and single-line stores are often referred to as __________.

Accepted Answer

A)  specialty outlets
B)  general merchandise stores
C)  scrambled merchandise stores
D)  intertype outlets
E)  hypermarketsF) D) and E)
G) A) and E)

Question 16

Stores that carry a broad product line,with limited depth,are referred to as __________.

Accepted Answer

A)  limited-line stores
B)  general merchandise stores
C)  scrambled merchandise stores
D)  hypermarkets
E)  intertype outletsF) All of the above
G) B) and E)

Question 17

All of the following retailers provide self-service to their customers EXCEPT:

Accepted Answer

A)  Marley Coffee.
B)  Shop24.
C)  Target.
D)  Redbox.
E)  Costco.F) B) and E)
G) A) and E)

Question 18

Consumers often view central business district shopping as less convenient because of the lack of parking,higher crime rates,and __________.

Accepted Answer

A)  out-dated stores
B)  a lack of ambiance
C)  fewer quality restaurants
D)  few public restrooms
E)  exposure to the weatherF) B) and E)
G) C) and E)

Question 19

Brokers are independent firms or individuals who

Accepted Answer

A)  represent a single producer and are responsible for the entire marketing function of that producer.
B)  work for several producers and carry noncompetitive,complementary merchandise in an exclusive territory.
C)  take title to merchandise but sell only to buyers who call on them,pay cash for merchandise,and furnish their own transportation for the merchandise.
D)  own the merchandise they sell but do not physically handle,stock,or deliver it.
E)  bring buyers and sellers together to make sales.F) C) and D)
G) B) and D)

Question 20

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) None of the above

Exam 16: Retailing and Wholesaling

Specialty merchandise wholesalers

Correct AnswerverifiedShow Answer

The National Retail Federation estimates that about __________ percent of retail shrinkage is due to employee theft.

Correct AnswerverifiedShow Answer

All of the following retailers provide self-service to their customers EXCEPT:

Correct AnswerverifiedShow Answer

Limited- and single-line stores are often referred to as __________.

Correct AnswerverifiedShow Answer

The key goal for retailers in the accelerated development phase of the retail life cycle is to

Correct AnswerverifiedShow Answer

Consumers often view central business district shopping as less convenient because of the lack of parking,higher crime rates,and __________.

Correct AnswerverifiedShow Answer

Large shopping areas often contain two or three __________ stores,which are well-known national or regional stores such as Sears,Saks Fifth Avenue,and Bloomingdale's.

Correct AnswerverifiedShow Answer

Stores that carry a broad product line,with limited depth,are referred to as __________.

Correct AnswerverifiedShow Answer

Wholesalers who take title to merchandise but sell only to buyers who call on them,pay cash for merchandise,and furnish their own transportation for merchandise are referred to as __________.

Correct AnswerverifiedShow Answer

A strip mall refers to a

Correct AnswerverifiedShow Answer

Saks Fifth Avenue is an upscale retailer that offers designer brand women's apparel,fragrances,jewelry,and leather accessories.The retailer relies on superior service to sell its products and to retain its customers.Saks Fifth Avenue would be classified as a(n) __________.

Correct AnswerverifiedShow Answer

Direct selling,sometimes called __________,involves direct sales of goods and services to consumers through personal interactions and demonstrations in their home or office.

Correct AnswerverifiedShow Answer

Walmart's $469 billion in sales in 2012 surpassed the gross domestic product of all but __________ countries for that same year.

Correct AnswerverifiedShow Answer

What type of contractual system describes a situation where assistance in selecting the location,setting up the store or facility,advertising,and training personnel is provided by the parent company?

Correct AnswerverifiedShow Answer

Independent retailers account for most of the __________ retail establishments in the United States.

Correct AnswerverifiedShow Answer

Which of the following retailers is one of the LARGEST hypermarkets in the world?

Correct AnswerverifiedShow Answer

Which type of outlet is most likely in its maturity stage of the retail life cycle?

Correct AnswerverifiedShow Answer

A financial indicator used to compare the increase in sales of stores that have been open for the same period of time is referred to as __________.

Correct AnswerverifiedShow Answer

Brokers are independent firms or individuals who

Correct AnswerverifiedShow Answer

Briefly describe the two general types of franchises.

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Franchises can be classified in two gene...
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