1. In what ways do retailers add value to products?
2. What are the two categories of retail stores based on breadth of products offered, and what types of stores are in each
category?
3. Compare and contrast department stores and discount stores.
4. Identify and describe three kinds of specialty stores.
5. What are the three types of nonstore retailing, and what are some examples of each?
6. Discuss the advantages and disadvantages of catalog marketing.
7. What are the primary advantages and disadvantages of a franchise arrangement for a franchisee?
8. Why is a store’s location one of the most important strategic retailing decisions?
9. What is a store’s image, and how does it affect retailing strategy decisions?
10. What role does wholesaling play in the marketing channel? Is this role necessary?
11. Compare the services wholesalers provide for producers with the services they provide to retailers.
12. Discuss the role of merchant wholesalers. When is a producer most likely to use them?
13. Discuss some of the functions that full-service wholesalers provide. How do these differ from those that limited-
service wholesalers provide?
14. What wholesaling activities do selling agents and brokers perform?
Moderate
15. 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.
c
Moderate
16. Walmart, Macy’s, Nordstrom’s, and Toys “R” Us are examples of
a.
manufacturers.
b.
merchant wholesalers.
c.
end-users.
d.
agents.
e.
retailers.
17. Direct selling, direct marketing, and vending machines are all examples of
a.
b.
c.
d.
e.
Easy
MARK.PRID.16.15.04 – LO: 15–04
United States – BUSPROG: Analytic
United States – AK – DISC: Marketing Plan
A-Head: Direct Marketing, Direct Selling, And Vending
Bloom’s: Knowledge
18. 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.
Easy
MARK.PRID.16.15.01 – LO: 15–01
United States – BUSPROG: Analytic
United States – AK – DISC: Marketing Plan
A-Head: Retailing
Bloom’s: Comprehension
19. 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
e
Easy
MARK.PRID.16.15.01 – LO: 15–01
United States – BUSPROG: Analytic
United States – AK – DISC: Marketing Plan
A-Head: Retailing
Bloom’s: Application
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
20. 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.
c
Easy
MARK.PRID.16.15.01 – LO: 15–01
United States – BUSPROG: Analytic
United States – AK – DISC: Marketing Plan
A-Head: Retailing
Bloom’s: Knowledge
21. By locating in the same general vicinity as other car dealerships, Hartfield Honda can
a.
facilitate comparison shopping.
b.
create form utility.
c.
facilitate wholesale exchanges.
d.
create possession utility.
e.
create exchange utility.
a
Moderate
MARK.PRID.16.15.01 – LO: 15–01
United States – BUSPROG: Analytic
United States – AK – DISC: Strategy
A-Head: Retailing
Bloom’s: Application
Moderate
United States – BUSPROG: Analytic
United States – AK – DISC: Distribution
Bloom’s: Application
22. 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.
23. Supermarkets, discount stores, and hypermarkets can all be classified as
a.
superstores.
b.
general merchandise retailers.
c.
department stores.
d.
specialty retailers.
e.
off-price retailers.
Moderate
MARK.PRID.16.15.02 – LO: 15–02
United States – BUSPROG: Analytic
United States – AK – DISC: Marketing Plan
A-Head: Major Types Of Retail Stores
Bloom’s: Knowledge
24. Compared with other types of retailers, department stores compete mainly on the basis of
a.
customer services.
b.
low prices.
c.
a very deep assortment of a few specific products.
d.
high sales volume.
e.
catalog sales.
a
Moderate
MARK.PRID.16.15.02 – LO: 15–02
United States – BUSPROG: Analytic
United States – AK – DISC: Marketing Plan
A-Head: Major Types Of Retail Stores
Bloom’s: Knowledge
e
Moderate
MARK.PRID.16.15.02 – LO: 15–02
United States – BUSPROG: Analytic
United States – AK – DISC: Marketing Plan
A-Head: Major Types Of Retail Stores
Bloom’s: Knowledge
25. Nordstrom, Macy’s, and JCPenney are all considered
a.
department stores.
b.
discount stores.
c.
off-price retailers.
d.
specialty retailers.
e.
category killers.
26. 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.
MARK.PRID.16.15.02 – LO: 15–02
United States – BUSPROG: Analytic
United States – AK – DISC: Distribution
A-Head: Major Types Of Retail Stores
Bloom’s: Comprehension
27. 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
e
Moderate
MARK.PRID.16.15.02 – LO: 15–02
United States – BUSPROG: Analytic
A-Head: Major Types Of Retail Stores
Bloom’s: Knowledge
Easy
MARK.PRID.16.15.02 – LO: 15–02
United States – BUSPROG: Analytic
United States – AK – DISC: Strategy
A-Head: Major Types Of Retail Stores
Bloom’s: Application
28. 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.
29. 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.
c
Moderate
MARK.PRID.16.15.02 – LO: 15–02
United States – BUSPROG: Analytic
United States – AK – DISC: Distribution
A-Head: Major Types Of Retail Stores
Bloom’s: Application
30. 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.
Moderate
United States – BUSPROG: Analytic
United States – AK – DISC: Marketing Plan
A-Head: Major Types Of Retail Stores
Easy
MARK.PRID.16.15.02 – LO: 15–02
United States – BUSPROG: Analytic
United States – AK – DISC: Strategy
A-Head: Major Types Of Retail Stores
Bloom’s: Knowledge
31. 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
e.
category killers
Moderate
MARK.PRID.16.15.02 – LO: 15–02
United States – BUSPROG: Analytic
United States – AK – DISC: Marketing Plan
A-Head: Major Types Of Retail Stores
Bloom’s: Knowledge
32. 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.
c
Easy
MARK.PRID.16.15.02 – LO: 15–02
United States – BUSPROG: Analytic
United States – AK – DISC: Marketing Plan
A-Head: Major Types Of Retail Stores
Bloom’s: Knowledge
33. 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
Moderate
MARK.PRID.16.15.02 – LO: 15–02
United States – BUSPROG: Analytic
Bloom’s: Application
34. 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.
e
Moderate
MARK.PRID.16.15.02 – LO: 15–02
United States – BUSPROG: Analytic
United States – AK – DISC: Distribution
A-Head: Major Types Of Retail Stores
Bloom’s: Application
35. 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.
Moderate
MARK.PRID.16.15.02 – LO: 15–02
United States – BUSPROG: Analytic
United States – AK – DISC: Distribution
A-Head: Major Types Of Retail Stores
Bloom’s: Application
36. Kroger, Safeway, and Publix are all considered
a.
superstores.
b.
groceries.
c.
department stores.
d.
supermarkets.
e.
food stores.
Easy
United States – AK – DISC: Promotion
A-Head: Major Types Of Retail Stores
Bloom’s: Knowledge
37. 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
a
Moderate
MARK.PRID.16.15.02 – LO: 15–02
United States – BUSPROG: Analytic
United States – AK – DISC: Marketing Plan
A-Head: Major Types Of Retail Stores
Bloom’s: Knowledge
38. Laura goes to Walmart and buys some clothing, a DVD, and all the groceries she needs for her family. What type of
retailer is this particular Walmart?
a.
Supermarket
b.
Superstore
c.
Hypermarket
d.
Discount store
e.
Department store
Easy
MARK.PRID.16.15.02 – LO: 15–02
United States – BUSPROG: Analytic
United States – AK – DISC: Strategy
A-Head: Major Types Of Retail Stores
Bloom’s: Application
39. 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.
e
Moderate
MARK.PRID.16.15.02 – LO: 15–02
United States – BUSPROG: Analytic
United States – AK – DISC: Marketing Plan
A-Head: Major Types Of Retail Stores
Bloom’s: Application
40. 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.
Moderate
MARK.PRID.16.15.02 – LO: 15–02
United States – BUSPROG: Analytic
United States – AK – DISC: Marketing Plan
A-Head: Major Types Of Retail Stores
Bloom’s: Knowledge
41. 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.
Challenging
MARK.PRID.16.15.02 – LO: 15–02
United States – BUSPROG: Analytic
United States – AK – DISC: Strategy
A-Head: Major Types Of Retail Stores
Bloom’s: Application
42. 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
MARK.PRID.16.15.02 – LO: 15–02
United States – BUSPROG: Analytic
United States – AK – DISC: Strategy
A-Head: Major Types Of Retail Stores
Bloom’s: Knowledge
43. 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.
e
Easy
MARK.PRID.16.15.02 – LO: 15–02
United States – BUSPROG: Analytic
United States – AK – DISC: Marketing Plan
A-Head: Major Types Of Retail Stores
Bloom’s: Knowledge
44. 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
c
Easy
MARK.PRID.16.15.02 – LO: 15–02
United States – BUSPROG: Analytic
United States – AK – DISC: Distribution
A-Head: Major Types Of Retail Stores
Bloom’s: Comprehension
45. Sam’s and Costco are examples of
a.
discounters.
b.
warehouse clubs.
c.
warehouse showrooms.
d.
discount clubs.
e.
wholesalers.
Moderate
MARK.PRID.16.15.02 – LO: 15–02
United States – BUSPROG: Analytic
United States – AK – DISC: Strategy
A-Head: Major Types Of Retail Stores
Bloom’s: Knowledge
46. 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.
c
Moderate
MARK.PRID.16.15.02 – LO: 15–02
United States – BUSPROG: Analytic
United States – AK – DISC: Strategy
A-Head: Major Types Of Retail Stores
Bloom’s: Knowledge
47. 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.
a
Moderate
MARK.PRID.16.15.02 – LO: 15–02
United States – BUSPROG: Analytic
United States – AK – DISC: Marketing Plan
A-Head: Major Types Of Retail Stores
Bloom’s: Application
48. 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.
Easy
MARK.PRID.16.15.02 – LO: 15–02
United States – BUSPROG: Analytic
United States – AK – DISC: Marketing Plan
A-Head: Major Types Of Retail Stores
Bloom’s: Application
49. 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.
Moderate
MARK.PRID.16.15.02 – LO: 15–02
United States – BUSPROG: Analytic
United States – AK – DISC: Marketing Plan
A-Head: Major Types Of Retail Stores
Bloom’s: Application
50. 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.
a.
department
b.
catalog
c.
discount
d.
traditional specialty
e.
convenience
Moderate
MARK.PRID.16.15.02 – LO: 15–02
United States – BUSPROG: Analytic
United States – AK – DISC: Marketing Plan
A-Head: Major Types Of Retail Stores
Bloom’s: Application
51. Off-price retailers and category killers are both
a.
specialty retailers.
b.
discount stores.
c.
showrooms.
d.
general merchandisers.
e.
department stores.
a
Moderate
MARK.PRID.16.15.02 – LO: 15–02
United States – BUSPROG: Analytic
United States – AK – DISC: Strategy
A-Head: Major Types Of Retail Stores
Bloom’s: Comprehension
52. 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
Moderate
MARK.PRID.16.15.02 – LO: 15–02
United States – BUSPROG: Analytic
United States – AK – DISC: Marketing Plan
A-Head: Major Types Of Retail Stores
Bloom’s: Knowledge
53. 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.
a
Easy
MARK.PRID.16.15.02 – LO: 15–02
United States – BUSPROG: Analytic
United States – AK – DISC: Marketing Plan
A-Head: Major Types Of Retail Stores
54. 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.
Moderate
MARK.PRID.16.15.02 – LO: 15–02
United States – BUSPROG: Analytic
United States – AK – DISC: Marketing Plan
A-Head: Major Types Of Retail Stores
Bloom’s: Knowledge