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e. facilitate consumer exchanges.
138. Walmart has its own fleet of trucks and works directly with producers to take care of the ordering, delivery, and
handling of goods. In addition, Walmart works directly with suppliers through its advanced system of inventory control
and data processing. Walmart is
a. able to eliminate many of the functions typically performed by wholesalers.
b. performing many of the critical functions of wholesalers through its own system.
c. successfully using wholesalers to run its venerable chain of discount stores.
d. using information technology to eliminate the need to perform typical wholesale functions.
e. vertically integrated in order to produce and distribute all products itself.
139. Retailing is best characterized as
a. large organizations that carry wide and deep product mixes.
b. transactions in which the buyer intends to consume the product through personal, family, or household use.
c. arrangements whereby a supplier grants a dealer the right to sell its products.
d. transactions in which the purchaser intends to use the product for resale or for business operations.
e. exchanges that take place only in a store or service establishment.
140. Merchant wholesalers who specialize in just a few functions and pass others along to other intermediaries or
customers are called
a. limited-service wholesalers.
b. wholesale service specialists.
c. general-line wholesalers.
d. specialty-line wholesalers.
e. specialty-service wholesalers.
141. Sparkle Jewelers is a manufacturer of fine jewelry that is expanding its use of direct marketing. Management has
narrowed the options down to two, but has not decided whether to use ____ where it would mail potential customers
brochures featuring the company’s entire product line or _____ where it would feature a handful of products on QVC or
the Home Shopping Network.
a. catalog marketing; online marketing
b. brand marketing; product marketing
c. catalog marketing; television home shopping
d. online marketing; telemarketing
e. general-line marketing; limited-line marketing
142. Store ABC is a retailer that sells brand name and private brand products at low prices. It is a self-service store. Which
of the following is true about Store ABC?
a. It is a convenience store
b. It is a department store
c. It is a discount store
d. It is a superstore
e. It is a warehouse club
143. Compared with other types of retailers, department stores compete mainly on the basis of
a. customer services.
b. low prices.
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c. a very deep assortment of a few specific products.
d. high sales volume.
e. catalog sales.
144. Karen has been a buyer for Ocean Mist, a large cranberry processor, for several years. Believing that she knows a
great deal about cranberries, their growers, and processors, she decides to go into business for herself. Karen wants to
assume no risks of spoilage or price fluctuations. She sees herself as simply bringing the growers and processors together.
Her new company would be a
a. sales agent.
b. commission merchant.
c. broker.
d. sales branch.
e. sales office.
145. Ariana is planning to open an upscale dress boutique. She is evaluating ease of movement to and from sites,
vehicular traffic, types of stores in the area, and transportation networks. Which strategic retailing issue is she concerned
with at the time?
a. Location
b. Production depth
c. Product mix
d. Scrambled merchandising
e. Retail positioning
146. The type of retail location that is commonly being preserved and revitalized in many cities is the
a. traditional business district.
b. free-standing structure.
c. community shopping center.
d. neighborhood shopping center.
e. nontraditional shopping center.
147. Which of the following wholesalers never take actual possession of the goods?
a. Drop shippers
b. Cash-and-carry wholesalers
c. Truck jobbers
d. Mail-order wholesalers
e. Rack jobbers
148. Hickory Village Shopping Center has two department stores and some specialty and convenience stores. It serves a
large geographic area and holds special events to stimulate consumer traffic. Hickory is a ____ shopping center.
a. community
b. regional
c. non-traditional
d. neighborhood
e. power
149. Thad works for a company that markets all of Celetron’s products. Thad’s company acts as the marketing department
for Celetron, performing all marketing functions without actually taking title to the goods. Thad’s company is a
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a. commission merchant.
b. manufacturers’ agent.
c. sales branch.
d. selling agent.
e. full-service wholesaler.
150. Sophia is the new marketing manager for a new line of laptop, MP3, and smart phone accessories made by the
company, Skull Candy. These accessories are trendy, colorful, and more expensive than others on the market . After
considering the target market for the products, Sophia has decided not to use marketing-related activities conducted on the
telephone, called _____, and instead use _____, a type of nonstore retailing.
a. e-marketing; specialty marketing
b. direct-response marketing; vending
c. telemarketing; vending
d. direct-selling; online retailing
e. telemarketing; specialty marketing
151. Which of the following offers the widest product mixes and the deepest product lines?
a. Category killer
b. Outlet mall
c. Traditional business district
d. Community shopping center
e. Superregional shopping center
152. You are part of an investment group that is planning to open a warehouse club in your hometown. There are a
number of considerations that you will have to address in order for this venture to be successful. Which of the following
statements is true regarding warehouse clubs?
a. They have not been successful in the United States, but they are popular in Europe.
b. They are service-oriented, and offer credit and personal assistance.
c. They are members-only selling operations.
d. The primary product they offer is convenience.
e. They accept lower sales volume in exchange for higher margins.
153. Kate owns a refreshment-stand business at the community ballpark. She goes to a warehouse store like Sam’s and
purchases snacks and canned soda that she will sell at her refreshment stand. Kate is considered a(n)
a. wholesaler.
b. broker.
c. retailer.
d. intermediary.
e. agent.
154. Which of the following services would a wholesaler least likely provide to a manufacturer?
a. Assume the risks of selling to poor credit customers
b. Look for and coordinate supply sources
c. Pay the costs of transporting goods
d. Provide up–to-date information on market developments
e. Serve as an extension of the manufacturer’s sales force
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155. A manufacturer-owned operation that provides services usually associated with agents is a
a. facilitating agency.
b. wholesaler.
c. sales office.
d. sales branch.
e. public warehouse.
156. A retailer engaged in direct marketing would probably select television home shopping over online retailing to sell a
new kitchen device because of
a. lower costs of selling.
b. easier financial transactions.
c. superior ability to demonstrate the product.
d. superior ability to offer the product at a lower price.
e. decreased cycle time.
157. Malcolm Lewis has come up with the idea of a system for picking up people’s cars while they are at work, washing
and waxing them, and returning them for a fee. Having been a big success in his home city, Malcolm plans to expand his
operation into other cities. The service described here seems best suited to
a. party-plan retailing.
b. franchising.
c. vending.
d. corporate chain retailing.
e. off-price retailing.
158. What type of wholesaler transports a limited line of products directly to customers for immediate inspection and
selection?
a. On-site wholesalers
b. Cash-and-carry wholesalers
c. Rack jobbers
d. Truck wholesalers
e. Drop shippers
159. Redbox, ProActiv, and Clinique all sell their products through automatic vending, which is
a. a type of nonstore retailing.
b. a specialty line retailer.
c. not considered a form of retailing.
d. a type of direct selling.
e. a form of franchising.
160. Ollies’ is a regional self-service retail store that sells name-brand electronics, tools, housewares, and sporting goods
at low prices. Ollies’ is an example of a
a. department store.
b. discount store.
c. warehouse showroom.
d. specialty store.
e. superstore.
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161. A merchant wholesaler
a. arranges for transfer of goods directly to business and retail customers.
b. takes title to goods, assumes risk associated with ownership, and buys and resells products.
c. takes title and possession of goods and sells only to retailers.
d. does not take title or possession of goods but facilitates exchanges between any parties.
e. deals exclusively with business products.
162. Walmart, Macy’s, Nordstrom’s, and Toys “R” Us are examples of
a. manufacturers.
b. merchant wholesalers.
c. end-users.
d. agents.
e. retailers.
163. A retailer is an organization that purchases products for the purpose of reselling them to
a. other retail organizations.
b. the government.
c. ultimate consumers.
d. wholesalers.
e. nonprofit organizations.
164. When products are presented to television viewers, who can purchase them by calling a toll-free number and paying
with a credit card, ____ is being used.
a. telemarketing
b. television marketing
c. direct-response marketing
d. e-marketing
e. television home shopping
165. Greg works with a group of farmers who provide him with a regular supply of a variety of fresh vegetables. He picks
up their produce and has a regular route of grocers and restaurants that purchase quantities of the items he has on any
given day. Greg’s operation is which type of wholesaler?
a. Drop shipper
b. General-line
c. Truck
d. Cash-and-carry
e. Specialty-line
166. Halle went to shop at a local store called Fontana’s, but found out that if she wanted to take advantage of their low
prices, she would have to become a member. Fontana’s is an example of a
a. wholesale club
b. discount store
c. warehouse showroom
d. superstore
e. supermarket
167. Brad accesses Overstock.com’s site on the Internet and purchases a business laptop case. This is an example of
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a. direct-selling.
b. catalog retailing.
c. direct-response marketing.
d. online retailing.
e. home shopping.
168. While on their family vacation, the Millers realize they left their camera at home. They purchase a disposable camera
at an amusement park using their credit card, but never interact with a person. What type of retailing did this transaction
most likely involve?
a. Franchising
b. Online retailing
c. Direct-response marketing
d. Automatic vending
e. Machine marketing
169. All of the following are types of direct marketing except
a. catalog marketing.
b. direct-response marketing.
c. direct selling.
d. television home shopping.
e. online retailing.
170. Off-price retailers feature
a. deep discounts, few customer services, and central checkouts.
b. sales expertise, wide selections, and low prices
c. overstocks, designer brands, and moderate prices.
d. a narrow product range and enormous product availability.
e. cash only sales and few customer services.
171. Lynn Taylor sells Revlon cosmetics on consignment to grocery stores, maintains the display racks, and restocks
when necessary. Lynn’s job is best described as a
a. rack jobber.
b. drop shipper.
c. general merchandise wholesaler.
d. cash-and-carry wholesaler.
e. truck jobber.
172. By using Johnson Wholesale Co. for its distribution needs, the Apex Production has a distinct competitive advantage
because the services performed by Johnson allow Apex to
a. provide quality merchandise to consumers.
b. focus on increasing production capacity.
c. focus on increasing working capital.
d. reduce manufacturing costs to retailers.
e. focus on producing products that meet consumers’ needs.
173. An arrangement in which a supplier grants a dealer the right to sell products in exchange for some type of
consideration is
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a. selling products on consignment.
b. retailing.
c. wholesaling.
d. licensing.
e. franchising.
174. Customers rely on ____ for product availability, breaking larger quantities into smaller ones, technical advice and
service, financial assistance, and suitable assortments.
a. full-line retailers
b. limited-service wholesalers
c. full-service wholesalers
d. commission merchants
e. cash-and-carry wholesalers
175. Agents and brokers that facilitate and negotiate purchases but do not actually take title to products are also known as
a. functional wholesalers.
b. commission wholesalers.
c. hands-off intermediaries.
d. contract negotiators.
e. functional middlemen.
176. Cigarette manufacturer Philip Morris uses the services of Universal Corporation, the world’s largest buyer and
processor of leaf tobacco, which provides financing for its customers. This means that Universal is a
a. cash-and-carry wholesaler.
b. general merchandise wholesaler.
c. limited-service wholesaler.
d. rack jobber.
e. full-service wholesaler.
177. You are conducting a business startup workshop sponsored by the Small Business Administration. The workshop
attendees are all aspiring business owners who are excited and fearful about the prospect of starting their own business.
Early in the workshop, you asked the attendees to complete a questionnaire about their major concerns in starting a new
business. The majority of the respondents indicated their biggest concerns were limited capital and lack of business
experience.
Based on these concerns, which of the following business strategies do you think would be most appropriate for these
workshop attendees?
a. Start their business as a full-service wholesaler
b. Start their business as a franchisee
c. Start their business as a mail-order wholesaler
d. Start their business as a merchant wholesaler
e. Start their business as a franchiser
178. Tupperware, Sarah Coventry, Amway, and Avon sell products outside the confines of retail facilities. They are ____
retailers.
a. discount
b. traditional
c. specialty
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d. non-store
e. home-delivery
179. Nordstrom, Macy’s, and JCPenney are all considered
a. department stores.
b. discount stores.
c. off-price retailers.
d. specialty retailers.
e. category killers.
180. Architectural design is an important aspect for a______________.
a. lifestyle shopping center
b. regional shopping center
c. community shopping center
d. superregional shopping center
e. neighborhood shopping center
181. Stores that are in a manufacturers’ outlet mall, such as Ralph Lauren, Tommy Hilfiger, Clarks’ Shoes, and Samsonite
Luggage are most appropriately classified as a(n)
a. discounter.
b. specialty retailer.
c. off-price retailer.
d. category killer.
e. department store.
182. Category killers compete primarily on the basis of
a. enormous product selection and sales expertise.
b. low prices and enormous product availability.
c. convenient locations and customer services.
d. rock-bottom prices and moderate selections.
e. one-stop shopping and product availability.
183. Norah operates an upscale shop that does both pet grooming and human manicures and pedicures. She is reaching a
market segment with people who place great value on their dogs and are concerned with their own appearance, yet
pressed for time. No other businesses meet the needs of these consumers. Which strategic issue in retailing does Norah
appear to have addressed?
a. Store image
b. Location
c. The wheel of retailing
d. Retail positioning
e. Scrambled merchandising
184. Supermarkets, discount stores, and hypermarkets can all be classified as
a. superstores.
b. general merchandise retailers.
c. department stores.
d. specialty retailers.
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e. off-price retailers.
185. What is a potential disadvantage of direct selling?
a. Commissions for salespeople are usually low.
b. Some customers view direct selling negatively.
c. Personal attention tends to be lacking.
d. Product demonstrations are difficult in this type of selling.
e. Consumers must go out of their way.
186. All of the following are types of limited-service merchant wholesalers except
a. cash-and-carry wholesalers.
b. truck wholesalers.
c. mail-order wholesalers.
d. specialty-line wholesalers.
e. drop shippers.
187. Michael’s, PetSmart, and Staples are all examples of
a. discount stores.
b. off-price retailers.
c. category killers.
d. traditional specialty retailers.
e. superstores.
188. Which of the following is an advantage of franchising?
a. Limited capital is needed to start
b. Franchiser dictates many aspects of business
c. Franchise agreement gives control to franchiser
d. Franchise agreements are not uniform
e. Franchisee pays for assistance from franchiser
189. After shopping in the same store for nearly two hours, Chelsea goes to Burger King for a Whopper, while Cynthia
goes to the optical shop to see if her contacts are ready. They engage in these activities without leaving the store in which
they have been shopping. They are most likely in a
a. superstore.
b. hypermarket.
c. department store.
d. general merchandise retailer.
e. discount store.
190. Which of the following is a full-service merchant wholesaler?
a. Cash-and-carry wholesaler
b. General merchandise wholesaler
c. Drop shipper
d. Mail-order wholesaler
e. Truck wholesaler
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191. A small self-service store that is open long hours and carries a narrow product assortment in convenient locations is
best described as a
a. discount store.
b. department store.
c. convenience store.
d. supermarket.
e. category killer.
192. The marketing of products to ultimate consumers through face-to-face sales presentations either at home or the
workplace is called
a. direct marketing.
b. direct-response marketing.
c. telemarketing.
d. personal selling.
e. direct selling.
193. Andrea owns and operates a small novelty store that sells home décor, gifts, jewelry, and gourmet snacks. Because
her business is very small, many wholesalers will not deal with her, so she relies primarily on ____ for the survival of her
business.
a. drop shippers
b. truck wholesalers
c. rack jobbers
d. specialty-line wholesalers
e. cash-and-carry wholesalers
194. Wholesalers frequently help retailers with developing a marketing strategy, especially as it relates to the ____
component of the marketing mix.
a. distribution
b. promotion
c. product
d. price
e. channel
195. A general-merchandise retailer offers
a. a single product line that is stocked in depth.
b. few product lines with deep assortments of these lines.
c. few choices of a large variety of product lines.
d. products through the Internet and catalogs only.
e. a variety of product lines that are stocked in depth.
196. Drop shippers
a. take title to but not physical possession of the goods.
b. do not take title to or physical possession of the goods.
c. take title to and physical possession of the goods.
d. do not take title to but take physical possession of the goods.
e. are similar to truck wholesalers but provide the extra service of placing products on retailers’ shelves.
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197. If a retailer needed help with store design and training sales personnel, it would most likely use the services of a
a. full-service wholesaler.
b. full-price wholesaler.
c. rack jobber.
d. cash-and-carry wholesaler.
e. technical wholesaler.
198. A large retailer selling food and most routinely purchased consumer products is a
a. hypermarket.
b. supermarket.
c. discount store.
d. Warehouse club.
e. Superstore.
199. Retail facilities located in big, low-cost buildings with large on-premise inventories and minimal services are called
a. catalog showrooms.
b. category killers.
c. warehouse showrooms.
d. warehouse clubs.
e. display outlets.
200. Merchant wholesalers can be divided into two basic categories:
a. general merchandise and general-line.
b. rack jobbers and cash-and-carry.
c. commission and fee-based.
d. goods and services.
e. full-service and limited-service.
201. Sam’s Bistro is a family restaurant that earns higher revenue when diners finish quickly, opening up their table for a
new party. The manager is updating the atmosphere of the restaurant to entice customers to eat quickly and is repainting
the interior _____, which is associated with impulsivity, and playing _____ music, which encourages customers to eat
quickly and leave.
a. blue; soft pop
b. red; soft classical
c. green; fast pop
d. blue; soft classical
e. red; fast pop
202. Which of the following is a large-scale, members-only, retailer that combines cash-and-carry wholesaling with
discount retailing?
a. Warehouse showroom
b. Warehouse club
c. Catalog showroom
d. Category killer
e. Hypermarket
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203. Laura and Marie own and operate a small restaurant. On a weekly basis, they go to their local Sam’s Wholesale Club
to purchase the food items and cleaning supplies they need for their business. With the exception of the volume they
purchase and the items’ intended use, this grocery shopping trip is identical to a weekly trip by their families to a grocery
store. Sam’s is serving as a ____ wholesaler for these entrepreneurs.
a. general-line
b. specialty-line
c. full-service merchant
d. truck
e. cash-and-carry
204. What is the primary distinction between superstores and hypermarkets?
a. Superstores offer a wider variety of products than hypermarkets.
b. Superstores offer low prices while hypermarkets have moderate to high prices.
c. Hypermarkets have fewer departments but deeper product lines than superstores.
d. Hypermarkets are larger and have more types of products than superstores.
e. These two types of retailers carry very different types of products.
205. A(n) ____ is a very large specialty store that competes on the basis of lower prices and enormous product
availability.
a. warehouse club
b. off-price retailer
c. category killer
d. traditional specialty store
e. super center
206. In Cara’s hometown, there is a mall with a small Sears store, a Macy’s department store, a couple of fast food
restaurants, a few specialty shops, and some convenience stores. The mall features seasonal sidewalks sales and boat
shows. This mall is most likely a ____ shopping center.
a. neighborhood
b. national
c. regional
d. community
e. city
207. Victor knows that if he decides to buy a franchise, he will most likely have to supply
a. management know–how and labor.
b. buildings and daily operations.
c. marketing assistance and management know-how.
d. a percentage of total sales and expertise.
e. labor and daily operations.
208. Kroger, Safeway, and Publix are all considered
a. superstores.
b. groceries.
c. department stores.
d. supermarkets.
e. food stores.
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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.
209. Refer to Scenario 14.1. The Rain Forest Cafe and T-Rex Cafe are usually located in tourist-dense areas or large
shopping malls in order to capture walk-by traffic. If the restaurants’ primary focus was to obtain customers who are
walking by, they would definitely not want which of the following locations?
a. strip centers
b. free-standing buildings
c. regional shopping centers
d. the Mall of America
e. a traditional business district
210. Angela approaches David Hughes, owner of Hughes Auto Parts, to talk about the possibility of adding a new line of
products to his store. Angela tells David that the product is a line of high-quality driving sunglasses. She offers to set up
the display, service and restock it weekly, and maintain billing and inventory records. She tells David that all she needs is
a couple of square feet of space. Angela is in the business of serving retailers as a
a. general-line wholesaler.
b. specialty-line wholesaler.
c. rack jobber.
d. full-service merchant wholesaler.
e. cash-and-carry wholesaler.
211. Colin brags to his friend Reid that his new bike shop has lots of parking and great visibility from Harper Avenue, and
his nearest business neighbors are several hundred feet away. Colin has selected a ____ site for his retail business.
a. free-standing
b. traditional business district
c. neighborhood shopping center
d. community shopping center
e. regional shopping center
212. Greg chooses to have his hunting equipment stored in a location away from the main part of town so that he can have
a large parking lot and an outdoor range for customers to test out his merchandise. Greg’s store is
a. in a traditional business district.
b. a rural shopping center.
c. in a neighborhood shopping center.
d. a non-traditional shopping center.
e. a free-standing structure.
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213. The three major types of nonstore retailing are
a. direct marketing, direct selling, and automatic vending.
b. direct selling, automatic vending, and catalog retailing.
c. direct marketing, direct selling, and mail-order.
d. automatic vending, direct selling, and telemarketing.
e. telemarketing, door–to-door, and mail-order.
214. Advo Systems is an organization that mails product brochures and coupons to potential consumers who can then
purchase these products by mail or by phone. Advo Systems illustrates which of the following methods of selling retail
products?
a. Direct-response marketing
b. Party plan
c. Catalog marketing
d. Specialty retailing
e. Direct selling
215. Which type of retail outlet can have up to 200,000 square feet?
a. Superstores
b. Supermarkets
c. Discount stores
d. Department stores
e. Category killers
216. In order to justify direct-response marketing, a product really needs to be priced above
a. $50.
b. $10.
c. $5.
d. $20.
e. $100.
217. Fiona is employed by Hallmark Cards, Inc., where her responsibilities include maintaining displays of greeting cards
in drugstores and discount stores. Her daily activities include straightening the cards, pulling outdated or slow sellers, and
installing new cards. Fiona is called a(n) _____.
a. specialty-line wholesalers.
b. full-service stockers.
c. in-store maintainers.
d. assemblers.
e. rack jobbers.
218. Location is important to a retailer because
a. suppliers charge more to service stores in certain trading areas.
b. a desirable location appeals to consumers’ emotions.
c. location is the major determinant of store image.
d. location determines the trading area from which the store must draw its customers.
e. convenient location is an essential customer service element.
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219. Which type of retailer generally accepts lower margins than traditional retailers in exchange for higher sales volume?
a. Department stores
b. Traditional specialty retailers
c. Warehouse showrooms
d. Direct marketers
e. Discount stores
220. Cash and Carry is a store that carries food, clothing, and household goods at lower price margins than other nearby
stores. There is little service provided and customers have to bag their own purchases. Cash and Carry is most likely an
example of a(an)_
a. department store.
b. category killer.
c. discount store.
d. supermarket.
e. warehouse showroom.
221. Kevin is talking with Peter about purchasing a Wendy’s franchise. Peter tells Kevin that one of the major advantages
of franchising for him to consider is the
a. higher start-up costs.
b. greater freedom it provides.
c. individuality it offers
d. higher success rate for franchises.
e. gross margin it provides.
222. Independent intermediaries that represent two or more sellers and usually offer customers complete product lines in a
restricted territory are called
a. commission merchants.
b. manufacturers’ agents.
c. selling agents.
d. truck wholesalers.
e. brokers.
223. In contrast to industrial products, consumer products are often purchased because of
a. economic planning.
b. necessity.
c. prior planning.
d. social influences.
e. rational needs.
224. Chandra has extensive contacts in the real estate business and brings together buyers and sellers. Although she
assumes no risks, she can offer specialized knowledge about real estate. Chandra is a
a. commission merchant.
b. selling agent.
c. broker.
d. specialty salesperson.
e. sales branch agent.
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225. You are a highly-respected, retail executive with a Fortune 500 company, and you have been asked to speak at the
upcoming annual meeting of the Professionals in Retail Association. You have been asked to talk about changes taking
place in retail and the keys to success in this new retailing environment. Which of the following statements about retail
would you want to incorporate into your speech?
a. Retailers are no longer the critical link between producers and ultimate consumers because they no longer provide
the environment for exchanges to occur between these parties.
b. The key to success is to have a strong customer focus, and provide good service, product quality and innovation
for your customers.
c. New store formats have not been significantly impacted by technology.
d. Retailers are finding that it is more profitable to limit their target markets to domestic markets primarily instead of
pursuing global opportunities.
e. Traditional retailing has only been marginally impacted by the Internet.
226. Kelly Cramer sees a lovely pair of earrings on a television network and calls a toll-free number to order them, paying
with her credit card. This is an example of
a. online retailing.
b. television home shopping.
c. telemarketing.
d. direct-response marketing.
e. catalog marketing.
227. What type of shopping center usually consists of several small convenience and specialty stores?
a. Specialty
b. Regional
c. Neighborhood
d. Convenience
e. Community
228. Self-service, general merchandise stores such as Kmart are known as
a. discount stores.
b. warehouse showrooms.
c. catalog showrooms.
d. superstores.
e. specialty retailers.
229. Which of the following is an example of a category killer?
a. JCPenney
b. Walmart
c. Marshalls
d. Sam’s
e. Toys “R” Us
230. As discount stores improve their services and atmosphere as well as raise their prices, the distinction between
discount stores and ____ is becoming blurred.
a. superstores
b. supermarkets
c. specialty stores
d. department stores
Name:
Class:
Date:
chapter 14
Page 37
e. category killers
231. Which retail store invests the most in atmospherics?
a. Target
b. Sears
c. Neiman Marcus
d. Macy’s
e. Dick’s Sporting Goods
232. Which of the following best describes wholesalers?
a. Organizations that buy products from producers and sell them to retailers.
b. Individuals or organizations that purchase products and then resell them to other businesses and consumers.
c. Organizations or individuals who buy products for resale to government, reseller, producer, and institutional
users.
d. Organizations or entities that buy products from government, reseller, and producer users and sell them to
customers in bulk.
e. Companies that make products that have a general appeal and are resold to retailers for a profit.
233. A store that offers a wide variety of shoes for men, women, and children would most likely be considered a(n)
a. department store.
b. specialty retailer.
c. category killer.
d. off-price retailer.
e. warehouse showroom.
234. Which of the following is not a factor used to classify wholesalers?
a. Whether the wholesaler is owned by the producer
b. Whether the wholesaler takes title to the products it handles
c. The range of services offered by the wholesaler
d. The price range of the products carried by the wholesaler
e. The breadth and depth of the product lines carried by the wholesaler
235. Ped-Tastic is a small manufacturer of shoes designed to provide superior levels of comfort. The company is trying to
decide on an intermediary to help get the shoes to retailers. Management is hoping to find someone to represent the
company in negotiating with retailers. Management wants to retain control over the pricing and promotion of the shoes to
retailers, and wants the intermediary to exclusively sell Ped-Tastic shoes and nothing else. Ped-Tastic should most likely
be looking for a
a. broker.
b. manufacturer’s agent.
c. selling agent.
d. sales office.
e. drop shipper.
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