41) Consumers benefit in dealing with retail corporate chains because
A) corporate chains have more experience than other forms of retailers.
B) they can own stock in the same company where they shop since corporate chain stock must be
publicly traded.
C) they can establish a credit history more easily than with other forms of retailers.
D) there are multiple outlets with similar merchandise and consistent management policies.
E) they have less stress in making decisions since merchandise is arranged and displayed by
professional designers.
42) The acronym RFID stands for
A) retail franchise identification designation.
B) required financial identification.
C) radar frequency identification.
D) radio frequency identification.
E) retail federation of independent department stores.
43) Walmart has developed a sophisticated inventory management and cost control system that
allows rapid price changes for each product in the store. The firm also uses technologies such as
________ to improve the quality of information available about products.
A) radio frequency identification
B) encapsulation techniques
C) bar code scanners
D) nanotechnology
E) cookies
44) Independently owned stores that band together to act like a chain are referred to as
A) corporate chains.
B) cooperative marketing systems.
C) contractual systems.
D) regional shopping centers.
E) self-service systems.
45) The three basic types of contractual systems are
A) retailer-sponsored cooperatives, wholesaler-sponsored voluntary chains, and franchises.
B) dual ownership agreements, industry consortiums, and nonbinding cooperatives.
C) wholesaler-sponsored voluntary chains, nonbinding cooperatives, and franchises.
D) dual ownership agreements, industry consortiums, and multinational cartels.
E) nonbinding, binding, and in perpetuity.
46) One way neighborhood grocers can take advantage of volume discounts commonly available
to corporate chains is to
A) purchase a franchise membership.
B) become a subsidiary of a larger supermarket chain such as Kroger.
C) join a professional merchant association and hire food brokers to negotiate lower prices for
produce and dry goods.
D) create a grocery networking system to exchange coupon vouchers.
E) participate in a retailer-sponsored cooperative with other independent grocers.
47) Neighborhood grocers that work together with several other independent grocers that all
agree to buy their goods directly from food manufacturers is a(n)
A) retailer-sponsored cooperative.
B) consortium system.
C) administrative system.
D) conglomerate system.
E) contractual horizontal marketing system.
48) Which method of retail outlet classification is most appropriate for describing franchise
operations?
A) form of ownership
B) level of service
C) merchandise line
D) method of operation
E) revenues generated
49) Franchising is a type of
A) administered system.
B) contractual system.
C) vertically integrated chain.
D) retail-sponsored cooperative.
E) corporate system.
50) In a(n) ________, an individual or firm contracts with a parent company to set up a business
or retail outlet.
A) administered system
B) vertically integrated chain
C) retail-sponsored cooperative
D) franchise system
E) corporate system
51) What type of contractual system describes a situation in which assistance in selecting the
location, setting up the store or facility, advertising, and training personnel is provided by the
parent company?
A) administered system
B) conglomerate system
C) franchise system
D) vertical integrated system
E) retail-sponsored cooperative
52) As a franchisor, 7-Eleven would assist a franchisee in selecting the store location, setting up
the store, advertising, and
A) developing the marketing program.
B) training personnel.
C) offering performance bonuses.
D) ordering and restocking inventory.
E) paying insurance and legal fees.
53) The two general types of franchises are
A) product-format franchises and distribution franchises.
B) business-format franchises and manufacturing franchises.
C) venture franchises and general service franchises.
D) manufacturing franchises and venture franchises.
E) business-format franchises and product-distribution franchises.
54) There are two general types of franchises: business-format franchises and ________
franchises.
A) product-distribution
B) general service
C) manufacturing
D) distribution
E) venture
55) A franchise where the franchisor provides step-by-step procedures for most aspects of the
business is known as a
A) business-format franchise.
B) product-distribution franchise.
C) nonprofit franchise.
D) manufacturing franchise.
E) general service franchise.
56) McDonald’s, 7-Eleven, and Anytime Fitness are examples of
A) product-distribution franchises.
B) nonprofit franchise.
C) business-format franchises.
D) manufacturing franchises.
E) general service franchise.
57) As a business-format franchisor, McDonald’s provides to the franchisee step-by-step
procedures for most aspects of the business and
A) an easy resale mechanism back to the franchisor.
B) guaranteed access to competent suppliers and interested customers.
C) complete maintenance of the property.
D) guidelines for the most likely decisions a franchisee will face.
E) discipline for dishonest employees.
58) Anytime Fitness is a popular
A) business-format franchise.
B) product-distribution franchise.
C) operations franchise venture.
D) manufacturing franchise.
E) general service franchise.
59) A franchise where the franchiser provides a few general guidelines and more independence
to the franchisee is known as a
A) business-format franchise.
B) manufacturing franchise.
C) product-distribution franchise.
D) general service franchise.
E) business franchise venture.
60) Ford dealerships represent which type of franchise?
A) business-format franchise
B) manufacturing franchise
C) general service franchise
D) product-distribution franchise
E) business franchise venture
61) Franchising is attractive for the franchisee because
A) it gives the franchisee complete control over the delivery and presentation of merchandise.
B) the license fees paid to the franchisor are the only fees the franchisee pays.
C) it relieves the franchisee from any company or product liabilities.
D) it offers the franchisee the opportunity to enter into a well-known, established business where
managerial advice is provided.
E) the franchisee is completely his or her own boss.
62) By selling franchises, an organization ________ the cost of expansion and ________ its
control compared to owning its own retail outlets.
A) increases; increases
B) increases; reduces
C) reduces; increases
D) increases; retains almost all
E) reduces; reduces
63) The three commonly used terms to describe levels of service in retailing are
A) self-service, limited-service, and full-service.
B) retailer-service, sales-service, and customer-service.
C) self-service, automated-service, and online-service.
D) limited-service, full-service, and automated-service.
E) wholesaler-service, retailer-service, and customer-service.
64) The level of service that requires the customers themselves perform many functions during
the purchase process is
A) full-service.
B) limited-service.
C) self-service.
D) customized-service.
E) automated-service.
65) Gas stations, supermarkets, and airlines that have unstaffed check-out or check-in terminals
are providing what level of retail service?
A) full-service
B) limited-service
C) customized-service
D) self-service
E) automated-service
66) Costco requires customers to perform many shopping functions during the purchasing
process and all nonessential customer services have been eliminated. What level of service does
Costco offer?
A) limited-service
B) full-service
C) customized-service
D) self-service
E) restricted-service
67) Redbox has 40,000 kiosks throughout the United States for movie and video game rental and
it operates without a single clerk. What level of service does this retailer offer?
A) full-service
B) self-service
C) limited-service
D) customized-service
E) functional-service
68) All of the following retailers provide self-service to their customers except which?
A) Zipcar
B) Southwest Airlines
C) Target
D) Redbox
E) Costco
69) General merchandise stores such as Walmart, Kmart, and Target are usually considered
________ retailers.
A) exclusive-service
B) minimal-service
C) self-service
D) full-service
E) limited-service
70) Outlets where customers are responsible for most shopping activities, although salespeople
are available in some departments, would be classified as ________ retail outlets.
A) limited-service
B) exclusive-service
C) minimal-service
D) self-service
E) full-service
71) Kohl’s is a moderately priced retailer that sells name-brand fashions and home goods. A few
salespeople are available in the jewelry department, but customers are responsible for most of
their shopping activities. Kohl’s provides its consumers with
A) full service.
B) limited service.
C) self-service.
D) restricted service.
E) functional service.
72) Target recently introduced its Target REDcard, where cardholders receive 5 percent back for
each purchase. Target also allows customers to return merchandise within 30 days but still does
not offer alteration services. Target offers what level of service to its customers?
A) full service
B) self-service
C) automated service
D) limited service
E) customized service
73) Most specialty stores and department stores, which provide many services to their customers,
are considered to be
A) exclusive-service retailers.
B) limited-service retailers.
C) full-service retailers.
D) unlimited-service retailers.
E) exhaustive-service retailers.
74) At which level of service would the customer perform the least number of functions?
A) automated service
B) minimal service
C) self-service
D) limited service
E) full service
75) 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?
A) full service
B) limited service
C) self-service
D) restricted service
E) functional service
76) 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)
A) exclusive-service retailer.
B) limited-service retailer.
C) full-service retailer.
D) premium-service retailer.
E) semi-service retailer.
77) Williams-Sonoma is a specialty store that caters to customers who like to cook at home. It
offers free cooking classes, has frequent demonstrations by cookbook authors, and has
employees who are knowledgeable about food preparation. The sales staff helps customers make
their selections. Williams-Sonoma is a(n) ________ retailer.
A) exclusive-service
B) full-service
C) upscale-service
D) self-service
E) limited-service
78) Nordstrom stores typically have 50 percent more salespeople on the floor than other retailers
with stores of similar sizes. Its salespeople are renowned for their professional and personalized
attention to customers. Nordstrom offers a wide variety of services, including on-site alterations
and tailoring, a 7-days-a-week customer service line, live chat line with beauty, design, and
wedding specialists and would be considered a(n)
A) exclusive-service retailer.
B) limited-service retailer.
C) full-service retailer.
D) upscale retailer.
E) limited-domain retailer.
79) A Woman’s Place is a retail store, created and staffed by women, that offers products and
services relating to maternity needs. For expectant mothers, it offers advice and personal
shopping services, help with hair and/or make-up problems, and free delivery. A Woman’s Place
is an example of a(n) ________ retailer.
A) franchise
B) self-service
C) limited-service
D) full-service
E) upscale
80) Retail outlets vary by their merchandise lines, the key distinction being the ________ of the
items offered to customers.
A) scope and span
B) breadth and depth
C) breadth and inventory
D) scope and inventory
E) range and span