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Principles of Marketing, 15e (Kotler/Armstrong)
Chapter 13 Retailing and Wholesaling
1) ________ includes all the activities involved in selling products or services directly to final
consumers for their personal, nonbusiness use.
A) Franchising
B) Retailing
C) Brokering
D) Wholesaling
E) Disintermediation
2) ________ involves using in-store promotions and advertising to extend brand equity to "the
last mile" and encourage favorable point-of-purchase decisions.
A) Ambush marketing
B) Shopper marketing
C) Bait-and-switch advertising
D) Affinity marketing
E) Narrowcasting
3) ________ is a type of service offered by those retailers who serve customers that are willing
to perform their own "locate-compare-select" process in order to save money.
A) Limited-service
B) Self-service
C) Full-service
D) Specialty-service
E) Wholesaling
4) ________ are retailers that offer sales assistance because they carry more shopping goods
about which customers might need information.
A) Self-service retailers
B) Full-service retailers
C) Off-price retailers
D) Limited-service retailers
E) Specialty-service retailers
5) Which type of retailer usually carries more specialty goods at high prices and is more likely to
provide customers with assistance in every phase of the shopping process?
A) self-service retailer
B) limited-service retailer
C) full-service retailer
D) independent retailer
E) off-price retailer
6) At Neiman Marcus, a first-class department store, customers shop for high-end products and
they are assisted in every phase of the shopping process. Neiman Marcus is a ________.
A) self-service retailer
B) limited-service retailer
C) full-service retailer
D) specialty store
E) superstore
7) Which type of retailer is most likely to require its employees to focus most on assisting
customers as they shop?
A) self-service retailer
B) full-service retailer
C) off-price retailer
D) limited-service retailer
E) convenience retailer
8) Today, ________ are flourishing due to the increased use of market segmentation and market
targeting.
A) chain stores
B) specialty stores
C) superstores
D) discount stores
E) off-price stores
9) Specialty stores carry ________ with ________ within them.
A) only convenience products; shallow assortments
B) narrow product lines; deep assortments
C) narrow product lines; shallow assortments
D) wide product lines; shallow assortments
E) wide product lines; deep assortments
10) Which type of store carries a wide variety of product lines and has been squeezed in recent
years between more focused and flexible specialty stores on the one hand and more efficient,
lower-priced discounters on the other?
A) warehouse clubs
B) department store
C) factory outlet
D) merchant wholesaler
E) category specialist
11) ________ are facing slow sales growth because of slower population growth, increased
competition, and the rapid growth of out-of-home eating.
A) Warehouse clubs
B) Off-price retailers
C) Discount stores
D) Supermarkets
E) Factory outlets
12) Which of the following is the most frequently visited type of retail store?
A) convenience store
B) department store
C) superstore
D) supermarket
E) off-price retailer
13) A ________ is a small store, located near a residential area, that is open long hours seven
days a week and carries a limited line of high-turnover goods.
A) convenience store
B) chain store
C) department store
D) supermarket
E) hypermarket
14) Which type of store is much larger than regular supermarkets and offers a large assortment of
routinely purchased food products, nonfood items, and services?
A) off-price retailer
B) specialty store
C) factory outlet
D) superstore
E) convenience store
15) Which type of store carries a deep assortment of a particular product line, has knowledgeable
staff, and can be viewed as a giant specialty store?
A) category killer
B) convenience store
C) factory outlet
D) warehouse club
E) off-price retailer
16) Home Depot and PetSmart are examples of ________.
A) factory outlets
B) warehouse clubs
C) superstores
D) off-price retailers
E) category killers
17) Which of the following would be considered a service retailer?
A) factory outlets
B) supermarkets
C) jewelry stores
D) restaurants
E) gas stations
18) ________ retailers in the United States are growing faster than product retailers.
A) Discount
B) Merchant
C) Service
D) Specialty
E) Off-price
19) ________ sell standard merchandise at lower prices by accepting lower margins and selling
higher volume.
A) Merchant wholesalers
B) Discount stores
C) Full-service retailers
D) Limited-service retailers
E) Factory outlets
20) The early ________ cut expenses by offering few services and operating in warehouse-like
facilities in low-rent, heavily traveled districts.
A) department stores
B) hypermarkets
C) discount stores
D) supermarkets
E) full-service retailers
21) ________ have filled the ultra low-price, high-volume gap by buying at less-than-regular
wholesale prices and charging consumers less than retail.
A) Off-price retailers
B) Specialty stores
C) Convenience stores
D) Chain stores
E) Supercenters
22) Which of the following is NOT a type of off-price retailer?
A) independent
B) factory outlet
C) warehouse club
D) category killer
E) wholesale club
23) ________ are manufacturer-owned and operated stores which offer prices as low as 50
percent below retail on a wide range of mostly surplus, discounted, or irregular items.
A) Category killers
B) Factory outlets
C) Specialty stores
D) Superstores
E) Power centers
24) Which of the following is an off-price retailer that sells a limited selection of brand-name
grocery items, appliances, clothing, and other goods at deep discounts to members who pay
annual membership fees?
A) warehouse club
B) service retailer
C) convenience store
D) hypermarket
E) superstore
25) ________ are two or more outlets that are commonly owned and controlled.
A) Corporate chains
B) Convenience stores
C) Off-price retailers
D) Independent off-price retailers
E) Power centers
26) As a result of the great success of corporate chains, many independent stores choose to band
together in either a voluntary chain or a(n) ________.
A) factory outlet
B) retailer cooperative
C) wholesale club
D) warehouse club
E) convenience cooperative
27) A ________ is a wholesaler-sponsored group of independent retailers that engages in group
buying and common merchandising.
A) voluntary chain
B) retailer cooperative
C) franchise
D) wholesale club
E) warehouse club
28) McDonald's, Subway, and Pizza Hut are all examples of ________.
A) voluntary chains
B) retailer cooperatives
C) franchises
D) category killers
E) power centers
29) Which of the following statements best represents a contractual association between a
manufacturer, wholesaler, or service organization and independent businesspeople who buy the
right to own and operate one or more units in the system represented by the contract?
A) corporate chain
B) franchise
C) voluntary chain
D) retailer cooperative
E) warehouse club
30) Sears, Target, and Kroger are examples of ________.
A) voluntary chains
B) retailer cooperatives
C) corporate chains
D) franchise organizations
E) warehouse clubs
31) Independent Grocers Alliance, Do-It Best, Western Auto, and True Value are examples of
________.
A) franchise organizations
B) warehouse clubs
C) voluntary chains
D) category killers
E) wholesale clubs
32) In recent years, service differentiation among retailers has ________.
A) increased at a steady rate
B) decreased
C) stayed the same
D) increased exponentially
E) tripled
33) Daizy's is a shop which carries only plus-size clothing. According to this information,
Daizy's differentiates itself from its competitors based on ________.
A) service mix
B) pricing
C) product assortment
D) store atmosphere
E) distribution strategy
34) A large retailer of home improvement and construction products 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 the retailer has differentiated itself through
its ________.
A) product assortment
B) services mix
C) segmentation
D) atmosphere
E) pricing
35) An ideal price policy scenario for retailers would be to achieve ________ while charging
________.
A) low volume; high markups
B) low volume; low markups
C) high volume; high markups
D) high volume; low markups
E) high volume; zero markups
36) In-store demonstrations, displays, sales, and loyalty programs are examples of ________.
A) direct marketing
B) sales promotion
C) public relations
D) personal selling
E) affinity marketing
37) Press conferences, speeches, store openings, special events, newsletters, and store magazines
are examples of ________ activities used by retailers to promote themselves.
A) public relations
B) sales promotions
C) personal selling
D) affinity marketing
E) social marketing
38) Which of the following is most likely gained by stores that cluster together?
A) decreased competition
B) increased customer pulling power
C) compliance with franchise agreements
D) creation of retailer cooperatives
E) standardization of the service mix
39) ________ were the main form of retail clusters until the 1950s.
A) Strip malls
B) Discount stores
C) Independent off-price retailers
D) Central business districts
E) Regional shopping malls
40) A ________ is a group of retail businesses built on a site that is planned, developed, owned,
and managed as a unit.
A) warehouse club
B) franchise
C) shopping center
D) supermarket
E) hypermarket
41) A ________ contains from 50 to 100 stores, is like a covered mini-downtown, and attracts
customers from a wide area.
A) community shopping center
B) neighborhood shopping center
C) central business district
D) regional shopping center
E) strip mall
42) A ________ contains between 15 and 50 retail stores, including a department or variety
store, a supermarket, specialty stores, professional offices, and sometimes a bank.
A) community shopping center
B) neighborhood shopping center
C) strip mall
D) regional shopping center
E) power center
43) A ________ generally contains between 5 and 15 stores. It is close and convenient for
consumers, usually contains a supermarket, perhaps a discount store, and several service stores
such as dry cleaner, drugstore, and hardware store.
A) regional shopping center
B) community shopping center
C) neighborhood shopping center
D) warehouse club
E) factory outlet
44) Most shopping centers are ________.
A) strip malls
B) regional shopping malls
C) community shopping centers
D) lifestyle centers
E) power centers
45) Neighborhood shopping centers are also known as ________.
A) power centers
B) lifestyle centers
C) warehouse clubs
D) strip malls
E) regional shopping centers
46) ________ are huge unenclosed shopping centers consisting of a long strip of retail stores,
including at least one large, freestanding anchor store like Walmart. Each store has its own
entrance with parking directly in front for shoppers who wish to visit only one store.
A) Shopping malls
B) Power centers
C) Superstores
D) Chain stores
E) Regional shopping centers
47) A small, open-air mall with upscale stores, convenient locations, and nonretail activities,
such as a playground, skating rink, hotel, dining establishments, and a movie theater, is an
example of a(n) ________.
A) regional shopping center
B) lifestyle center
C) community shopping center
D) franchise
E) power center
48) Many retailers are now experimenting with limited-time shops that let them promote their
brands to seasonal shoppers and create buzz in busy areas. Which of the following terms best
represents such shops?
A) power centers
B) strip malls
C) pop-up stores
D) category killers
E) lifestyle centers
49) Target recently opened temporary shops to celebrate limited-run collections by Jason Wu in
Toronto and Missoni in New York. These temporary shops are examples of ________
A) lifestyle centers
B) pop-up stores
C) warehouse clubs
D) strip malls
E) category killers
50) With their size and buying power, ________ can offer better merchandise selections, good
service, and strong price savings to consumers.
A) convenience stores
B) franchises
C) megaretailers
D) power centers
E) lifestyle centers
51) According to the concept of ________, new retailing forms often begin as low-margin, low-
price, low-status operations to challenge established retailers. Such retailers then become
successful, and eventually become like the conventional retailers they replaced.
A) ambush marketing
B) flash sales
C) wheel-of-retailing
D) warehousing
E) product life cycle
52) ________ is known as the merging of consumers, products, prices, and retailers.
A) Retail conglomeration
B) Consumer convergence
C) Price merging
D) Retail convergence
E) Retail clustering
53) Which term refers to looking at merchandise at a traditional store and then purchasing the
merchandise online?
A) pop-up shopping
B) wheel-of-retailing
C) off-price retailing
D) showrooming
E) wholesaling
54) Touch-screen kiosks, handheld shopping assistants, interactive dressing-room mirrors and
virtual sales associates are all examples of how retailers use technology to ________.
A) maintain inventory costs
B) send information between stores
C) meet consumers' expectations
D) produce more accurate forecasts
E) interact with suppliers
55) ________ includes all activities involved in selling goods and services to those buying for
resale or business use.
A) Wholesaling
B) Retailing
C) Franchising
D) Discounting
E) Showrooming
56) ________ buy mostly from producers and sell to retailers and industrial consumers.
A) Warehouse clubs
B) Factory outlets
C) Wholesalers
D) Discount stores
E) Megaretailers
57) Which of the following wholesaler's channel functions is demonstrated when a wholesaler's
sales force helps a manufacturer to reach many small customers at a low cost?
A) bulk-breaking
B) selling and promoting
C) buying and assortment building
D) risk bearing
E) rackjobbing
58) Which of the following is NOT one of a wholesaler's channel functions?
A) financing
B) risk bearing
C) transportation
D) off-price retailing
E) bulk breaking
59) Which of the following wholesaler's channel functions is demonstrated when a wholesaler
holds inventories and thereby reduces inventory holding costs and risks of suppliers and
customers ?
A) financing
B) transporting
C) buying and assortment building
D) warehousing
E) bulk breaking
60) Which of the following wholesaler's channel functions is demonstrated when a buyer
receives quicker delivery because wholesalers are located closer than producers?
A) financing
B) transportation
C) buying and assortment building
D) warehousing
E) risk bearing
