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Indicate whether the statement is true or false.
1. The broker’s primary function is to bring the buyer and seller together and assist in negotiating an exchange.
a. True
b. False
2. Less than half of all goods are exchanged through wholesaling institutions.
a. True
b. False
3. Telemarketing is often combined with other marketing efforts.
a. True
b. False
4. Mail-order wholesalers are limited-function wholesalers who sell through catalogs to retailers and organizational
customers.
a. True
b. False
5. Direct selling is a type of specialty retailing.
a. True
b. False
6. Direct marketing is the selling of products outside the confines of a retail facility.
a. True
b. False
7. Truck wholesalers are usually classified as limited-service wholesalers because they offer a limited line of products.
a. True
b. False
8. An example of a nonstore retailer is a vending machine.
a. True
b. False
9. Franchised outlets are generally less successful than independently owned businesses.
a. True
b. False
10. Typical limited-service wholesalers are rack jobbers, truck wholesalers, specialty-line wholesalers, and cash-and-carry
wholesalers.
a. True
b. False
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11. Selling agents have control over the marketing efforts of manufacturers and may be used in place of a marketing
department.
a. True
b. False
12. Wholesalers rarely handle credit for retailers and producers.
a. True
b. False
13. Supermarkets specialize in selling shopping products.
a. True
b. False
14. Exterior atmospheric elements include the appearance of the storefront, display windows, store entrance, and amount
of traffic congestion.
a. True
b. False
15. The primary advantage of franchising is the complete control the franchisee has over the business.
a. True
b. False
16. By buying in large quantities and delivering to customers in smaller lots, a wholesaler may perform physical
distribution activities more efficiently than a producer.
a. True
b. False
17. The coordination of selling efforts within a community shopping center is usually minimal.
a. True
b. False
18. The use of wholesalers permits producers to concentrate on developing and manufacturing products that match
consumers’ wants.
a. True
b. False
19. The classification of wholesalers in the text is based solely on the performance of marketing activities.
a. True
b. False
20. Wholesaling involves all transactions in which products are bought for resale, for use in making other products, or for
general business operations.
a. True
b. False
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21. A franchise is an arrangement in which a supplier grants dealers the right to sell products in exchange for some type of
consideration.
a. True
b. False
22. Specialty retailers carry a broad product mix with deep product lines.
a. True
b. False
23. Distribution of all goods requires wholesaling activities, whether or not a wholesaling institution is involved.
a. True
b. False
24. New store formats and technological advances are making the retail environment highly dynamic and competitive.
a. True
b. False
25. Full-service merchant wholesalers are either general merchandise wholesalers or specialty-line wholesalers.
a. True
b. False
26. Franchisees do not pay to use the franchiser’s name.
a. True
b. False
27. Commission merchants tend to have relatively broad powers concerning prices and terms of sales.
a. True
b. False
28. Some purchasing by consumers is an end in itself—for example, when it is done to escape boredom.
a. True
b. False
29. Warehouse showrooms are able to sell products at low prices by passing some of their marketing functions on to
consumers.
a. True
b. False
30. Agents represent either buyers or sellers on a temporary basis.
a. True
b. False
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31. Sales offices differ from sales branches in that sales offices may offer credit, deliver goods, and give promotional
assistance.
a. True
b. False
32. Most factory outlet shopping centers seek to locate in prime retail, metropolitan areas.
a. True
b. False
33. Retailing is the final part of the marketing process in which exchanges are entered into for personal, family, or
household purposes.
a. True
b. False
34. Agents and brokers perform more functions than limited-service wholesalers.
a. True
b. False
35. Department stores are characterized by wide product mixes.
a. True
b. False
36. Limited-service wholesalers provide only some marketing services and specialize in a few functions.
a. True
b. False
37. Specialty retailing is a form of selling by description in that buyers usually do not see the actual product until it
arrives.
a. True
b. False
38. Wholesalers do not engage in selling to reseller, government, or institutional users.
a. True
b. False
39. General-merchandise wholesalers are full-service merchant wholesalers who carry only a few product lines.
a. True
b. False
40. Wholesalers perform marketing functions only for the retailers below them in the channel of distribution.
a. True
b. False
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41. Off-price retailers seek to attract relatively affluent consumers who are price-conscious and knowledgeable about
brand names.
a. True
b. False
42. A cash-and-carry wholesaler provides transportation, delivers products directly to customers, and places products on
the retailer’s shelves.
a. True
b. False
43. General-line wholesalers are a type of full-service merchant wholesaler.
a. True
b. False
44. Retailing includes all transactions in which the buyer intends to consume the product through personal, family, or
household use.
a. True
b. False
45. Within the same franchising organization, all franchisees pay the same amount for the same services.
a. True
b. False
46. Cash-and-carry wholesalers draw most of their customers from large retailers and industrial firms.
a. True
b. False
47. The primary product offered by the department stores is convenience.
a. True
b. False
48. A retail store usually can position its image so that it is universally acceptable to all market segments.
a. True
b. False
49. Factory outlet stores exist to compete with traditional retailers.
a. True
b. False
50. Direct-response marketing is the performance of marketing-related activities by telephone.
a. True
b. False
51. Direct selling is the most expensive form of retailing.
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a. True
b. False
52. Most department stores are shopping stores.
a. True
b. False
53. Store atmospherics are used to create emotional effects that enhance the probability of purchasing.
a. True
b. False
54. Merchant wholesalers assume risks of ownership.
a. True
b. False
55. Discount stores are distinctive in that they usually are very service-oriented.
a. True
b. False
56. Retailers form an important link in the marketing channel because they are both marketers and customers.
a. True
b. False
57. Most manufacturers’ agents prefer to work for one manufacturer at a time to avoid conflicts of interest.
a. True
b. False
58. Appliances are an example of a major product line commonly carried by discount stores.
a. True
b. False
59. Warehouse clubs are able to offer a broad range of merchandise because their product lines are shallow and their sales
volumes high.
a. True
b. False
Indicate the answer choice that best completes the statement or answers the question.
60. Because Gem Supply’s sales have continued to decline, the jewelry manufacturer has found that the costs associated
with maintaining its own five-person sales force are prohibitive. The firm’s marketing director begins to look for a small
company or individual willing to perform the sales function for Gem Supply in its least productive region, the Far West.
The ideal entity would carry complementary but non-competing lines. Such a firm or individual would be classified as a
a. rack jobber.
b. manufacturers’ agent.
c. specialty-line wholesaler.
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d. selling agent.
e. commission merchant.
61. ___________________ permits products to be easily demonstrated and allows for sufficient time to make viewers
well informed about the products.
a. telemarketing
b. online retailing
c. direct selling
d. television home shopping
e. catalog marketing
62. What type of retailing began with Montgomery Ward in the late 1800s?
a. Catalog marketing
b. Department stores
c. Direct selling
d. Discount retailing
e. Franchising
63. Which of the following is not an advantage of franchising for the franchisee?
a. The franchisee can capitalize on the business experience of others.
b. When problems arise, the franchisee can obtain guidance and advice from the franchiser.
c. Franchised outlets are usually more successful than independently owned businesses with respect to long-term
survival.
d. The franchisee can participate in national promotional campaigns sponsored by the franchiser.
e. The franchisee gives up a certain amount of control when participating in a franchise agreement.
64. What is the primary difference between an agent and a broker?
a. An agent gets compensated based on commission while a broker generally charges fees for his services.
b. A broker works only for a seller whereas an agent can represent a buyer or a seller.
c. An agent represents a company on a permanent basis while a broker is employed temporarily.
d. An agent has much more extensive knowledge about the products he deals with than a broker does.
e. Brokers have long-term relationships with their customers while an agent’s relationships are generally short-lived.
65. ____ provide an effective method of selling small items to customers in remote areas that other wholesalers might find
unprofitable to serve.
a. Desk jobbers
b. Specialty-line wholesalers
c. Cash-and-carry wholesalers
d. Truck wholesalers
e. Mail-order wholesalers
66. Mark Bradley’s company takes orders from its collection of retail customers and arranges the shipment of goods
directly from manufacturers or other wholesalers to its customers’ businesses. Mark is operating as a
a. mail-order wholesaler.
b. drop shipper.
c. desk wholesaler.
d. truck jobber.
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e. specialty-line wholesaler.
67. Facing competition from WalMart as a low-cost retailer, Target has updated its _____ to be a mass merchandiser of
inexpensive yet chic goods. To accomplish this, it has entered into design partnerships to offer low-cost goods made by
famous designers.
a. retail positioning
b. target customer
c. product mix width
d. product mix depth
e. atmospherics
Scenario 14.1
Use the following to answer the questions.
Landry Restaurants, Inc. owns a number of different franchised restaurants, including the Rain Forest Cafe and their
recent addition, the T-Rex Cafe. Both the Rain Forest and T-Rex restaurants differentiate themselves from their
competitors by offering a unique dining experience. At the Rain Forest Cafe you can dine under a ceiling of lush tropical
forest plants while you are viewing the enormous aquarium with exotic fish. Periodically, the rain forest explodes with the
sound of waterfalls and birds. Giant stuffed monkeys, parrots, and other jungle creatures are planted within the landscape.
The Rain Forest Cafe also contains a gift shop, where customers can purchase t-shirts, hats, and other items emblazoned
with the Rain Forest logo. The newer T-Rex Cafe has a similar approach to the uniqueness of the dining experience. The
T-Rex Cafe offers guests a hands-on prehistoric experience, including educational, interactive computer screens.
Customers can also pan for precious gems and fossils in Discovery Creek or feast on food from the Kitchen of Fire. The
T-Rex Cafe also has a gift shop, where customers can purchase items with the T-Rex logo or build their very own stuffed
dinosaur, through “Build-a-Dino” by the “Build-a-Bear” franchise.
68. Refer to Scenario 14.1. The lush tropical plants and aquarium represent the ____ of the Rain Forest Cafe.
a. product lines
b. retail positioning
c. scrambled merchandising
d. atmospherics
e. category management
69. Off-price retailers and category killers are both
a. specialty retailers.
b. discount stores.
c. showrooms.
d. general merchandisers.
e. department stores.
70. The selling of merchandise outside the confines of actual facilities is generally called
a. nonstore retailing.
b. direct selling.
c. direct marketing.
d. Internet marketing.
e. store-front sales.
71. The primary advantage of automatic vending as a form of retailing is that
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a. it offers a low-cost, personal method of selling products.
b. it provides a continuous service to consumers.
c. since vending machines must be serviced frequently, the products they sell are always fresh.
d. vending machines require very few repairs.
e. it eliminates the need for sales personnel.
72. Martin owns and operates a wholesale hardware business that supplies small hardware parts to various manufacturers
in the area. He takes title to the hardware and assumes all risks associated with ownership. Martin is a
a. rack jobber.
b. merchant wholesaler.
c. wholesaler agent.
d. drop shipper.
e. sales branch.
73. Lucas is planning a distribution strategy for his business. He is considering using direct marketing, direct selling, and
automatic vending, which are all examples of ____ retailing.
a. off-premise
b. portfolio
c. nonstore
d. off-price
e. direct
74. In a franchise agreement, which of the following is a franchisee not responsible for?
a. operation of the franchise
b. franchise fee
c. maintenance of location
d. national advertising campaign
e. royalty and advertising fees
75. A difference between manufacturers’ agents and selling agents is that
a. selling agents have little control over the marketing mix of the manufacturers they represent.
b. selling agents represent retailers.
c. manufacturers’ agents do not offer retailers aid in advertising or promotional material.
d. selling agents do not have the territorial restrictions that manufacturers’ agents do.
e. selling agents represent wholesalers.
76. In franchising, which of the following is not a benefit that the franchiser gains?
a. The franchiser can gain more rapid product distribution.
b. The franchiser can acquire capital more quickly for expanding production.
c. The franchiser gains more control over how the franchisees operate the establishments.
d. The franchiser benefits from the fact that franchisees tend to be highly motivated to succeed, which in turn leads
to higher sales and higher royalties.
e. All of these are benefits for the franchiser.
77. By buying in large quantities and delivering to customers in smaller lots, a wholesaler may perform all of the
following physical distribution activities except
a. inventory planning.
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b. transportation.
c. materials handling.
d. unit pricing.
e. communication.
78. A shopping center that contains stores owned by manufacturers who make a special effort not to conflict with
traditional retailers is a(n)
a. strip mall.
b. neighborhood shopping center.
c. off-price mall.
d. lifestyle shopping center.
e. outlet shopping center.
79. In the Sunday paper, Caitlin sees a flyer for a collector’s edition Nativity set that is available to purchase by filling out
and mailing in a form or by calling a 1-800 number. This is an example of
a. telemarketing.
b. direct-response marketing.
c. television home shopping.
d. direct selling.
e. catalog marketing.
80. A wholesaler that carries a wide product mix but offers only limited depth within product lines is called a
a. specialty-line wholesaler.
b. limited-service wholesaler.
c. rack jobber.
d. general merchandise wholesaler.
e. general-line wholesaler.
81. The target market of a regional shopping center typically includes at least ____ people.
a. 25,000
b. 50,000
c. 100,000
d. 150,000
e. 250,000
82. Which of the following may include special attractions such as amusement parks or skating rinks?
a. Convenience shopping centers
b. Neighborhood shopping centers
c. Community shopping centers
d. Regional shopping centers
e. Superregional shopping centers
83. The kinds of products being sold and the availability of public transportation are both factors that influence a retailer’s
decision about
a. store atmosphere.
b. location.
c. retail positioning.
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d. store image.
e. the wheel of retailing.
84. When off-price retailers obtain too much in-season, high-quality merchandise, tension between them and ____ builds.
a. discount stores
b. category killers
c. specialty retailers
d. warehouse clubs
e. department stores
85. The use of the telephone and other nonpersonal media to introduce products to consumers, who then can purchase the
products through the mail, telephone, or the Internet is called
a. direct marketing.
b. telemarketing.
c. remote purchasing.
d. direct-response marketing.
e. direct selling.
86. Levitz Furniture locates in huge, low-cost buildings, maintains large, on-premises inventories, and offers minimum
service. Levitz is a
a. warehouse showroom.
b. catalog showroom.
c. superstore.
d. warehouse club.
e. department store.
87. Aidan is getting ready to move to campus for his freshman year of college. To get the products he needs for his dorm
room, he goes to a store that sells household goods such as plastic containers, sheets, and towels. The store also sells items
such as shampoo, deodorant, and toothpaste. Aidan has most likely gone to a(n)
a. discount stores.
b. superstores.
c. supermarkets.
d. department stores.
e. warehouse clubs.
88. Alison asks ten of her friends over to her home to learn about exciting new cosmetic products. A salesperson from
Angel Products makes a presentation and takes the women’s orders. This is an example of
a. a party plan.
b. telemarketing.
c. a warehouse club.
d. direct marketing.
e. a catalog showroom.
Scenario 14.2
Use the following to answer the questions.
Lands’ End offers clothing and accessories for all members of the typical household. For many years, the products were
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sold only through catalogs. Later, they were available through the company on its Internet website. In the past few years,
Lands’ End has partnered with Sears to offer selected Lands’ End products inside of Sears retail stores. This move by
Lands’ End has been criticized by some marketers because it was thought that the Lands’ End products were superior in
quality to those that are available in Sears stores. Additionally, the products available in Sears stores include Craftsman
tools, lawn care equipment, and household appliances, which are not Lands’ End types of product lines. This may create
mixed messages about Lands’ End to prospective customers.
89. Refer to Scenario 14.2. The move to sell Land’s End products inside of Sears’ stores may lead to potential problems
with the customer’s perception of Lands’ End quality, in part due to the functional and psychological picture in the
consumer’s mind of Sears’ stores. This picture is called the ____ of Sears.
a. store location
b. atmospherics
c. product depth
d. store image
e. interior persona
90. Calhoun Produce, a ____, takes possession of truckloads of tomatoes, arranges for storage, and transports them to
auctions to be sold.
a. manufacturer’s agent
b. selling agent
c. commission broker
d. commission merchant
e. selling broker
91. The primary function of most wholesalers is to
a. support the needs of the manufacturers and provide them with market information.
b. provide for the unique needs of the individual retailers buying their merchandise.
c. provide information system tracking of inventory for the ultimate consumer.
d. perform physical distribution of products from manufacturers to retailers.
e. develop and share database information about customers.
Scenario 14.2
Use the following to answer the questions.
Lands’ End offers clothing and accessories for all members of the typical household. For many years, the products were
sold only through catalogs. Later, they were available through the company on its Internet website. In the past few years,
Lands’ End has partnered with Sears to offer selected Lands’ End products inside of Sears retail stores. This move by
Lands’ End has been criticized by some marketers because it was thought that the Lands’ End products were superior in
quality to those that are available in Sears stores. Additionally, the products available in Sears stores include Craftsman
tools, lawn care equipment, and household appliances, which are not Lands’ End types of product lines. This may create
mixed messages about Lands’ End to prospective customers.
92. Refer to Scenario 14.2. When Lands’ End sells its products through a catalog or the Internet, it is most likely a(an)
____, selling through ____.
a. off-price retailer; direct marketing
b. mass merchandiser; retail outlets
c. retailer; direct marketing
d. specialty retailer; retail outlets
e. category killer; direct marketing
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93. When a retailer advertises a product and makes it available for purchase through telephone or mail orders, the retailer
is using
a. direct selling.
b. television home shopping.
c. telemarketing.
d. automatic vending.
e. direct-response marketing.
94. Alison lives in a remote area of Montana, where few good roads exist. She runs a small retail store specializing in
western attire. Due to her remote location, Alison is most likely to obtain the merchandise for her store from
a. rack jobbers.
b. general-line wholesalers.
c. mail-order wholesalers.
d. truck wholesalers.
e. specialty-line wholesalers.
95. Taylor works for a company that buys snacks such as chips, cookies, and candy in bulk from manufacturers. Taylor’s
company then repackages them and sells them to vending companies who have vending machines at government
institutions. Taylor most likely works for a(an) ___, while the vending machine company is a(an) _____.
a. Wholesaler; retailer
b. Wholesaler; broker
c. Broker; retailer
d. Broker; agent
e. Agent; retailer
96. A retail strategy of managing groups of similar, often substitutable products produced by different manufacturers is
called
a. category management.
b. scrambled merchandising.
c. line extensions.
d. aggregate management.
e. wheel of retailing.
97. What type of retailers are the primary competitors for specialty retailers?
a. Discount stores
b. Category killers
c. Catalog marketers
d. Department stores
e. Superstores
98. If a store has areas for men’s apparel, women’s apparel, housewares, cosmetics, and jewelry and competes mostly on
the basis of service, it is most likely a(n)
a. niche retailer.
b. department store.
c. specialty retailer.
d. superstore.
e. category killer.
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99. Selling agents perform every wholesaling activity except
a. transporting goods.
b. setting prices.
c. financing the products.
d. taking title to products.
e. inventory control.
100. Your firm is a full-service, specialty-line wholesaler and you own display shelves and space in discount stores. Your
firm is a
a. specialty-line wholesaler
b. full-service wholesaler
c. general-line wholesaler
d. merchant wholesaler
e. rack jobber
101. Retailers that sell only to members and feature discount retailing combined with cash-and-carry wholesaling are
called
a. hypermarkets.
b. retail groups.
c. warehouse showrooms.
d. discount stores.
e. warehouse clubs.
102. A narrow product mix with a deep product line would most likely be carried by
a. mass merchandisers.
b. supermarkets.
c. discount stores.
d. specialty retailers.
e. warehouse showrooms.
103. Manufacturers’ agents offer products that are both
a. noncompeting and complementary.
b. competing and specialized.
c. unrelated and noncompeting.
d. complementary and competing.
e. unrelated and competing.
104. Which of the following was developed in 1927 to supply milk, eggs, and other products for customers replenishing
their ice boxes?
a. Supermarkets
b. Convenience stores
c. Discount stores
d. Department stores
e. Specialty stores
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105. Stores that buy manufacturers’ seconds, overruns, returns, and off-season production runs at below wholesale prices.
These firms resell this merchandise to consumers at deep discounts, and are called
a. category killers.
b. off-price retailers.
c. specialty retailers.
d. hypermarkets.
e. discount retailers.
106. Hutton Industries wants to hire an intermediary to help with the distribution of its products. Management needs an
intermediary that will represent the company as sellers, but also wants to retain control over pricing and promotion
decisions. It should most likely hire a
a. commission merchant.
b. broker.
c. manufacturer’s agent.
d. selling agent.
e. limited-service wholesaler.
107. Which of the following is not a common feature of a warehouse club?
a. Concrete floors
b. Wide aisles
c. Good customer service
d. Large packages
e. Low price per unit
108. Direct selling, direct marketing, and vending machines are all examples of
a. producing.
b. advertising.
c. promoting.
d. retailing.
e. wholesaling.
109. Many cities are revitalizing their downtown areas by bringing in new retail establishments. They are building new
civic structures, passing ordinances that encourage the restoration of historic buildings, and developing mixed-use
structures that include retail, residential, and other uses. These areas are best described as
a. neighborhood shopping centers.
b. community shopping centers.
c. traditional shopping centers.
d. traditional business districts.
e. free-standing structures.
110. An open-air shopping center that features upscale specialty, dining, and entertainment stores, usually owned by
national chains, is generally called a(n)
a. regional shopping center.
b. neighborhood shopping center.
c. community shopping center.
d. lifestyle shopping center.
e. outlet shopping center.
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111. New store formats and advances in _______________ are making the retail environment highly dynamic and
competitive.
a. e-commerce
b. inventory management
c. product styles and quality
d. shopping mall configurations
e. information technology
112. With respect to retailing, what is the “party plan”?
a. A sales representative has a party at her home to demonstrate products to a group of friends and associates.
b. A party is set up that demonstrates a product and provides free samples of the product to all in attendance.
c. An individual is asked to tell two friends about a product, who are in turn each asked to tell two friends, etc. until
a sufficient number of people are reached.
d. A store has a special sale that resembles a party, and those who come are asked to buy the featured products.
e. A consumer acts as a host and invites friends to view merchandise in a group setting, where a salesperson
demonstrates the products.
113. The management at Kohler Inc., a manufacturer of sinks, tubs, and other plumbing products, thinks that there will
soon be a major growth in home remodeling due to rising interest rates. The management decides to use ____ in several
key cities to provide support services for its sales force in those areas, carry inventory, and offer credit and other services
to its retail plumbing customers.
a. sales agents
b. commission merchants
c. broker offices
d. sales branches
e. facilitating agencies
114. Exterior and interior characteristics such as layout, displays, color, and lighting are all elements of a store’s
a. services.
b. atmospherics.
c. location.
d. environment.
e. decor.
115. Sam’s and Costco are examples of
a. discounters.
b. warehouse clubs.
c. warehouse showrooms.
d. discount clubs.
e. wholesalers.
116. Josh tells the loan officer at First Bank and Trust that Clarksville really needs a store that offers high-quality fishing
gear to enthusiasts and provides the service and advice that many people want. No other store in the area seems to provide
this combination. Josh is trying to use ____ to support his request for a loan to start such a retail operation.
a. scrambled merchandising
b. location analysis
c. the wheel of retailing
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d. product mix width
e. retail positioning
117. A limited-line wholesaler would be expected to carry a ____ product mix.
a. wide and deep
b. wide and shallow
c. narrow and shallow
d. wide
e. narrow and deep
118. Chadwick’s sends its customers booklets containing its product offerings and allows them to place orders on the
telephone, through the mail, or online. Chadwick’s is primarily a(n)
a. online retailer.
b. direct seller.
c. catalog marketer.
d. direct-response marketer.
e. specialty retailer.
119. Two years ago, the private equity firm you are the general partner of purchased a portfolio of regional shopping
centers in Texas. The shopping centers have performed well, but not as well as you would like. So, you have decided to
convert them to superregional shopping centers in an effort to boost their profits. Which of the following marketing-
related steps will you need to take in order to affect this transformation?
a. You will need to expand the width and length of your product mixes.
b. You will need to upgrade the architectural designs of the stores.
c. You will need to increase your marketing to value-conscious customers.
d. You will need to reduce the number of stores in the shopping center.
e. You will need to reduce your target market, and focus on a smaller geographical area.
120. Zoe is a manager at a small, independent grocery store. Part of her job is to analyze sales data and information on
consumers to determine how much of different competing products she should order for her store and how much shelf
space to give to each of the competing brands. Zoe is working on
a. category management
b. identifying target customers
c. expanding product mix width
d. improving atmospherics
e. updating retail positioning
121. Identifying an unserved or underserved market segment and serving it through a strategy that is distinguished in the
mind of the consumer is called
a. the marketing concept.
b. the wheel of retailing.
c. retail positioning.
d. targeted retailing.
e. scrambled merchandising.
122. All of the following are examples of full-service wholesalers except
a. general merchandise wholesalers.
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b. mail-order wholesalers.
c. rack jobbers.
d. general-line wholesalers.
e. specialty-line wholesalers.
123. Brad operates a wholesale company that specializes in providing a wide variety of services to its customers, which
are all restaurants. He carries a wide assortment of restaurant equipment and cookware. Brad’s business is a
a. mail-order wholesaler.
b. rack jobber.
c. general-line wholesaler.
d. specialty-line wholesaler.
e. limited-service wholesaler.
124. Sherri McRae wants to establish a fashion wholesaling firm. Because of the risks involved in the rapid obsolescence
of high-fashion items, Sherri does not want to establish an organization in which she has title to the garments. Which of
the following types of wholesale establishments has she ruled out?
a. Merchant wholesaler
b. Agent
c. Broker
d. Functional middleman
e. Commission merchant
125. An example of an emerging type of power shopping center might contain
a. JC Penney, Sears, some specialty shops, McDonald’s, and Dairy Queen.
b. Michael’s, Office Depot, T.J. Maxx, and Best Buy.
c. Liz Claiborne, Van Heusen, Corning Ware, and Mikasa outlets.
d. Safeway, CVS, and Subway.
e. a Supercenter Walmart.
126. To take advantage of the demand for toys leading up to Christmas, Toys ‘R’ Us sometimes opens _____ inside
shopping malls that are only in operation for a few weeks and closes them again after the Christmas shopping season is
over.
a. temporary storefronts
b. warehouse showrooms
c. hypermarkets
d. pop–up stores
e. superstores
127. With respect to inventory, wholesalers can help retailers with all of the following except
a. selection.
b. storage.
c. inventory control.
d. transportation.
e. production.
128. Matt’s girlfriend tells him she wants a cashmere sweater for Christmas. Matt decides to go to a store that provides the
best possible selection of sweaters. His best choice would be to shop at a ____ store.
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a. department
b. catalog
c. discount
d. traditional specialty
e. convenience
129. Jack gets a shopping list from his wife. On the list are a potted plant, fresh salmon, vitamins, bread, milk, and a
birthday cake. To make just one stop to save time, Jack should go to a(n)
a. convenience store.
b. category killer.
c. specialty store.
d. specialty retailer.
e. supermarket.
130. Alex is preparing the new strategic plan for a large retailer. Several aspects of the retailer are to be evaluated, in order
to make plans and set goals. Of all the issues that Alex can select in developing the new strategic plan, which of the
following is the least flexible?
a. Store atmosphere
b. Scrambled merchandising
c. Retail positioning
d. Store image
e. Location
131. ____ have been successful because consumers are willing to drive significant distances to save money buying
manufacturers’ closeouts and irregulars.
a. Off-price shopping centers
b. Outlet shopping centers
c. Regional shopping centers
d. Upscale shopping centers
e. Specialty shopping centers
132. A channel member that markets all of a manufacturer’s goods, has authority over price, promotion, and distribution,
but does not take title to the product is a
a. general-line wholesaler.
b. selling agent.
c. commission merchant.
d. manufacturers’ agent.
e. broker.
133. All of the following are differences between warehouse clubs and discount stores, except
a. warehouse clubs spend less on advertising than discount stores
b. warehouse clubs carry a deeper selection of fewer product categories than discount stores
c. products in warehouse clubs are usually stacked on pallets, but not in discount stores
d. warehouse clubs require a membership and discount stores do not
e. warehouse clubs offer fewer products than discount stores
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134. An agent that receives goods on consignment from local sellers and negotiates sales in large, central markets is called
a
a. commission merchant.
b. sales branch agent.
c. selling agent.
d. manufacturers’ agent.
e. broker-agent.
135. You represent a group of investors who are exploring alternatives for entering the retailing business. Many of these
investors have significant past experience working for other retailing companies and they realize the retailing business is
very competitive. They also realize there is a high failure rate for startups in this industry. They ask you recommend a
retailing strategy that would meet the following criteria:
• No storefront would be needed
• No personal selling would be needed
• No traditional store operating expenses are necessary
• Customers can place orders via the Internet, telephone or mail
• Low operating expenses and limited customer service required
Which of following retailing strategy are you going to recommend they use?
a. Telemarketing
b. Automatic vending
c. Direct selling
d. Television home shopping
e. Catalog marketing
136. Shopping centers include
a. neighborhood, regional, superregional, power, and strip malls.
b. community, rural, urban, and traditional business districts.
c. outlet, power, lifestyle, superregional, regional, neighborhood, and community.
d. outlet malls, lifestyle, strip malls, and shopping malls.
e. free-standing, convenience, traditional, and regional.
Scenario 14.2
Use the following to answer the questions.
Lands’ End offers clothing and accessories for all members of the typical household. For many years, the products were
sold only through catalogs. Later, they were available through the company on its Internet website. In the past few years,
Lands’ End has partnered with Sears to offer selected Lands’ End products inside of Sears retail stores. This move by
Lands’ End has been criticized by some marketers because it was thought that the Lands’ End products were superior in
quality to those that are available in Sears stores. Additionally, the products available in Sears stores include Craftsman
tools, lawn care equipment, and household appliances, which are not Lands’ End types of product lines. This may create
mixed messages about Lands’ End to prospective customers.
137. Refer to Scenario 14.2. By locating in the Sears’ stores, Lands’ End can do all of the following, except
a. facilitate comparison shopping.
b. facilitate wholesale exchanges.
c. create place utility.
d. create time utility.