CHAPTER 15: MCQs (RETAILING AND WHOLESALING STRATEGIES)

Which of the following statements about retailers and retailing activities is true?

Retailers sell products to consumers for nonbusiness use.

Which of the following statements about retailers and retailing activities is true?

Retailers represent about 10% of the total businesses in the United States

Which type of store carries several product lines across multiple categories?

department

________ carry a broad range of choices for a narrow product line

Specialty stores

Which type of store carries a deep assortment, has knowledgeable staff, and is a giant specialty store?

category killer

Specialty stores carry ________ with ________ within them

narrow product categories; wide selections

________ focus on offering lower prices and turning products over quickly

Discount stores

________ offer leftover goods, overruns, and irregular merchandise

Off-price retailers

Apparel manufacturers send overruns and factory seconds to ________, while they send new merchandise to department stores

off-price retailers

Customers of a ________ buy most of the store's products in larger-than-normal packages and quantities

warehouse club

Which of the following is NOT true about warehouse clubs?

Groceries account for the smallest portion of sales revenue

________ are self-service retailers that carry food and nonfood items arranged in departments

Supermarkets

Which type of store is much larger than other stores and offers a wider range of products and services?

superstore

________ combine an economy supermarket and a discount store

Superstores

Which of the following is true about convenience stores?

They create time utility for their customers

Which of the following is any method a firm uses to complete an exchange that does NOT require a customer to visit a store?

nonstore retailing

In recent years, ________ has been growing fast This includes selling to final consumers through vending machines, self-serve kiosks, the Internet, and smart phone applications

nonstore retailing

A retail margin is the difference between ________ and ________

a product's retail selling price; a product's wholesale cost

A retailer's ________ should differentiate the retailer while matching target shoppers' expectations One strategy is to offer products that no other competitor carries

merchandise assortment

Retailers offering ________ require customers to perform their own product selection; contact between customers and employees typically only takes place when the actual sale is made

self-service

Which of the following types of retailers place the most emphasis on salespeople assisting customers throughout the purchase process?

full-service retailers

Which of the following is LEAST likely to happen at a full-service retailer?

Customers handle their own checkout process

Which type of stores usually carries more specialty goods for which customers like to be "waited on" and has much higher operating costs, which are passed along to the customer?

full-service store

________, such as Best Buy and Sears, allow customers to serve themselves, but also have knowledgeable sales associates available to provide guidance

Limited-service retailers

Which of the following statements about the services provided by retailers is true?

Convenience stores are unlikely to be full-service retailers

Which of the following is NOT an element involved in the creation of store atmospherics?knowledgeable personnel

Which of the following factors is most likely to be used to create store atmospherics?

store layout

Why do stores cluster together?

to ensure an adequate level of traffic

________ is the sorting, storing, and reselling of products to retailers or businesses

Wholesaling

________ buy mostly from producers and sell to retailers, institutions, and government agencies

Wholesalers

Which of the following is NOT one of a wholesaler's typical channel functions?

off-price retailing

A wholesaler who ________ legally owns the goods being handled

takes title

________ are the largest category of wholesalers

Merchant wholesalers

Limited-service merchant wholesalers are less likely than full-service merchant wholesalers to do which of the following?

offer marketing assistance or delivery for the products they sell

Which of the following groups can be divided into the two broad types of full-service and limited-service?

merchant wholesalers

Which of the following is NOT one of the categories of wholesalers?

cash-and-carry brokers

The owner of a grocery store wants to have non-food items delivered, priced, displayed and inventoried by a wholesaler

Which type of wholesaler best fits the owner's needs?.rack jobber

Truck jobbers are limited-service merchant wholesalers who would most likely handle which of the following?

fruits and vegetables

Mail-order wholesalers are associated with all of the following EXCEPT which one?

automatically replenishing merchandise for retailers

Drop shippers do all of the following EXCEPT which one?

take actual possession of the merchandise

Rack jobbers are limited-service merchant wholesalers who would most likely handle which of the following?

magazines

________ and ________ do not take title to goods

Brokers; agents

A ________ brings buyers and sellers together and assists in negotiations

merchandise broker

A ________ maintains inventory for a company in different geographic areas, while a ________ carries no inventory but provides selling services for specific geographic areas

sales branch; sales office

Which of the following are intermediaries that receive fees for facilitating transactions in markets such as real estate, food, and insurance in which there are a lot of small buyers and sellers?

merchandise brokers

Manufacturers' ________ represent a buyer or seller on an ongoing basis, replacing the manufacturer's sales team

agents

Which of the following statements about manufacturers' agents is true?

Manufacturers' agents have little control over the selling price of the products they carry.

A commission merchant would most likely sell which of the following?

agricultural products

Which of the following is true about sales branches, sales offices, and manufacturers' showrooms?

They are all manufacturer-owned intermediaries

Which of the following is a manufacturer-owned intermediary that permanently displays a firm's products for customers to view?

manufacturers' showrooms

GameStop sells video games and systems, offering a narrow product line with a broad range of choices within that line GameStop is a(n) ________

specialty store

Overstock

com, a Web seller that buys furniture, clothing, electronics, and more from a variety of producers at less-than-regular wholesale prices and then charges customers less than retail, is a(n) ________.off-price retailer

Stop-N-Go and Circle K, small stores that traditionally have had a market of consumers who are willing to pay a higher price for the ease of buying staples close to home, are ________

convenience stores

Avon is successful at giving customers alternatives to traditional store outlets

Avon uses ________, which does NOT require a customer to visit a store.nonstore retailing

Stan Clark, the owner of Eskimo Joe's bar, is considering closing the bar and selling the logo apparel with direct marketing through a catalog

Stan Clark is considering a(n) ________ option.nonstore retailing

Costco's surprise offerings of seconds, overstocks, and closeoutsoccasionally including diamondsis an example of how a retailer can differentiate itself through its ________

merchandise assortment

The Paper Moon sells gift wrapping paper, stationery, and greeting cards. It does not sell any other products. The number of different kinds of wrapping paper, stationery, and cards make up its ________.

merchandise assortment

At Neiman Marcus, a first-class department store, customers shop for specialty products and have come to expect assistance in every phase of the shopping process. Neiman Marcus is a ________.

full-service retailer

Home Depot offers "how-to" classes for do-it-yourselfers, featuring instructions on how to complete home improvement projects using products sold at its stores. This is an example of how Home Depot has differentiated itself through its ________.

customer service

The lighting in Jake's Steak Restaurant is muted The chairs are covered in leather and solid enough to last a lifetime, and each table is covered with a white linen cloth The colors are limited to earth tones with an occasional splash of red Patrons can not hear any kitchen noises, only a pleasant melody that seems familiar but unrecognizable The smells are extraordinarily varied This is a description of the restaurant's ________

atmospherics

Tony Pool Chemical Co purchased 144 buckets of chlorine tablets over the Internet from Chemical, Inc, which then placed the order with the manufacturer and arranged for its transportation by truck to the Tony Pool store. Chemical, Inc. took title to the pool chemicals but never actually took possession of them Chemical, Inc is an example of a ________.

drop shipper

An independent hardware retail store is 100 miles from the nearest city of more than 5,000 people and provides needed supplies for area ranchers This hardware store would most likely buy its plumbing and electrical supplies through a ________

mail-order wholesaler