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117) The online and mobile equivalent of a pop-up store is ________.
A) door buster deals
B) Black Friday specials
C) high-low pricing
D) flash sales sites
E) everyday low pricing
118) When different types of retailers sell the same products at the same prices to the same
customers, thanks in part to the price transparency of the Internet, the retail forms appear to be
________.
A) converging
B) differentiating
C) repositioning
D) adapting
E) declining
119) 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
120) ________ 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
121) 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
122) Retail online sites, mobile apps, and social media influence ________.
A) overall retail sales
B) in-store buying
C) the number of likes and subscribers companies earn
D) customers and their followers
E) the number of products a company manufactures
123) Touchscreen 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
124) Store retailers must master ________, integrating store and online channels into a single
shopper experience.
A) showrooming
B) single-channel retailing
C) omni-channel retailing
D) webrooming
E) dual-channel retailing
125) Today's retailers increasingly adopt environmentally sustainable practices. Which of the
following is NOT one of these practices?
A) working with channel partners to reduce their environmental impact
B) cutting back on recycling programs
C) greening up their stores and operations
D) launching programs to help customers be more responsible
E) promoting more environmentally responsible products
Refer to the scenario below to answer the following question(s).
In the 1970s, Shipshewana was only a small town with a hardware store, a grain mill, a shoe
store, a small restaurant, and a grocery store. Over the next two decades, the small town
transformed into an international tourist attraction, attracting thousands of tourists who were
intrigued by the lifestyle of Shipshewana's largest population—the Amish.
Ben and Mary Miller, having grown up within the Amish faith, decided to capitalize on their
town's popularity and their woodworking skills. Their shop, Indiana Wood, began with a small
display of handmade hickory rocking chairs, Ben Miller's specialty. But within a few months,
the display at Indiana Wood included picnic tables, flower boxes, and small handmade novelty
items. No other shop offers the same variety.
Mary Miller decorated the shop's display room with authentic Amish décor and eventually
hired three Amish friends to sew and embroider napkins and other textiles as customers had
requested such items. In addition, two women from the Amish community sought permission
from the Millers to display home-baked pastries and jellies on Tuesdays and Wednesdays,
when Shipshewana attracts swarms of visitors to its flea market on the south edge of town. The
Millers also hired four more people to help customers throughout the purchasing process and to
provide the required product-related information to the customers.
"Shipshewana is full of specialty shops," Mary Miller stated. "People don't come here to buy
things made in China or Taiwan. They want real, Amish-made goods."
126) Which of the following would be the most logical way for Indiana Wood to expand?
A) establishing an online presence
B) pursuing retail convergence
C) implementing RFID inventory tracking
D) establishing a community-gathering environment in the store
E) joining a producers' cooperative
127) Power centers tend to be smaller than lifestyle centers.
128) The life cycle of new retail forms is getting longer.
129) Retail convergence means lower competition for retailers and lower difficulty in
differentiating the product assortments of different types of retailers.
130) Megaretailers have shifted the balance of power between retailers and producers, giving
retailers more power.
131) Many shoppers now check out merchandise in-store and then buy it online. This process is
called webrooming.
132) While the process of showrooming can hurt in-store sales of merchandise, retailers can
make it a positive by enhancing the in-store shopping experience.
133) Green retailing yields both top- and bottom-line benefits.
134) What are pop-up stores? Provide an example to illustrate your answer.
135) What constitutes retail convergence?
136) Describe how nonstore retailing has grown in the past decade.
137) ________ 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
138) ________ buy mostly from producers and sell to retailers and industrial consumers.
A) Warehouse clubs
B) Factory outlets
C) Wholesalers
D) Discount stores
E) Megaretailers
139) 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) rack jobbing
140) 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
141) 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
142) 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
143) Which of the following wholesaler's channel functions is exemplified by buying in carload
lots and then dividing these lots into small quantities?
A) warehousing
B) transportation
C) risk bearing
D) bulk breaking
E) selling and promoting
144) ________ are the largest group of wholesalers. They include two broad types: full-service
wholesalers and limited-service wholesalers.
A) Brokers
B) Manufacturer sellers
C) Manufacturers' agents
D) Merchant wholesalers
E) Selling agents
145) What is the most common type of agent wholesaler?
A) wholesale merchant
B) industrial distributor
C) limited-service wholesaler
D) manufacturers' representative
E) truck jobber
146) ________ and ________ do not take title to goods, and they perform only a few channel
functions.
A) Full-service wholesalers; limited-service wholesalers
B) Brokers; agents
C) Industrial distributors; cash-and-carry wholesalers
D) Cash-and-carry wholesalers; industrial distributors
E) Rack jobbers; off-price retailers
147) A(n) ________ brings buyers and sellers together and assists in negotiations.
A) agent
B) broker
C) retailer
D) wholesaler
E) industrial distributor
148) A(n) ________ does not take title to goods and represents buyers or sellers on a more
permanent basis than a broker.
A) full-service wholesaler
B) industrial distributor
C) agent
D) retailer
E) cash-and-carry wholesaler
149) Which type of wholesaler sells to manufacturers rather than to retailers?
A) industrial distributor
B) full-service wholesaler
C) cash-and-carry wholesaler
D) wholesale merchant
E) limited-service wholesaler
150) ________ are a type of limited-service wholesaler who carries a limited line of
semiperishable merchandise (such as milk, bread, and snack foods), which is sold for cash as
deliveries are made to supermarkets, small groceries, or hotels.
A) Industrial distributors
B) Wholesale merchants
C) Full-service wholesalers
D) Truck jobbers
E) Purchasing agents
151) ________ are a type of limited-service wholesaler who does not carry inventory or handle
a product. They typically operate in bulk industries, such as coal, lumber, and heavy equipment.
A) Wholesale merchants
B) Industrial distributors
C) Cash-and-carry wholesalers
D) Rack jobbers
E) Drop shippers
152) ________ are agents who take physical possession of products and negotiate sales. They
deal mostly with agricultural marketing.
A) Industrial distributors
B) Cash-and-carry wholesalers
C) Purchasing officers
D) Rack jobbers
E) Commission merchants
153) ________ are wholesalers who serve grocery and drug retailers, mostly in nonfood items.
They price the goods, keep them fresh, set up point-of-purchase displays, and keep inventory
records.
A) Purchasing agents
B) Rack jobbers
C) Drop shippers
D) Cash-and-carry wholesalers
E) Manufacturers' agents
154) Today's large, progressive wholesalers have successfully reacted to rising costs by
________.
A) relocating to low-rent, low-tax areas
B) investing in information technology systems
C) investing less money in expensive machinery
D) reducing their markup rates
E) reducing promotional activities
155) Carey David's wholesale company helps retailers train salesclerks, improve store layouts
and displays, and set up inventory control systems. According to this information, which of the
following wholesaler's channel functions does Carey David provide?
A) buying and assortment building
B) selling and promotion services
C) risk bearing services
D) marketing information
E) management services and advice
156) You own a small independent retail store in your neighborhood. You want to offer fresh
seafood, milk, and bread in your store. In this case, which of the following types of wholesalers
will serve you the best?
A) truck jobber
B) independent distributor
C) drop shipper
D) mail-order wholesaler
E) manufacturers' agent
157) You own a neighborhood grocery store and would like to have non-food items delivered,
priced, displayed and inventoried by a wholesaler. You do not want to purchase title to the
goods. Which type of wholesaler best fits your needs?
A) cash-and-carry wholesaler
B) rack jobber
C) drop shipper
D) mail-order wholesaler
E) agents and brokers
158) Tony Pool Chemical Co. purchased 144 buckets of chlorine tablets over the Internet from
Chemical Inc. Then Chemical Inc. placed the order with the manufacturer, and the
manufacturer then transported the tablets directly to the Tony Pool store. In this case, Chemical
Inc. is an example of a ________.
A) drop shipper
B) truck jobber
C) rack jobber
D) full-service wholesaler
E) cash-and-carry wholesaler
159) ________ perform a role similar to that of brokers or agents but are part of the buyer's
organization.
A) Truck jobbers
B) Merchant wholesalers
C) Purchasing officers
D) Rack jobbers
E) Cash-and-carry wholesalers
160) Wholesalers must ________ to maintain their profits.
A) raise their prices to their retail customers
B) find efficient ways to deliver value to their customers
C) reduce the number of customers they work with
D) increase the number of services they offer
E) improve the relationships with the suppliers
161) Like retailers, wholesalers must decide on product and service assortments, prices,
promotion, and place.
162) Wholesalers realize that they increase value to their customers by watching for better
ways to meet the needs of their suppliers and target customers. This involves reducing the
services they provide to retailers.
163) In an automated warehouse, orders are fed directly from the retailer's information system
to the wholesaler's, and the items are picked up by mechanical devices and taken to a shipping
platform where they are assembled.
164) Why would a producer use wholesalers rather than sell directly to retailers or consumers?
165) How do merchant wholesalers and agents/brokers differ?
166) How can wholesalers improve their use of promotions?
167) Explain the marketing decisions faced by wholesalers.
168) Explain how wholesalers have been able to use technology to cut costs.
