Q&A Hero

Q: Rack jobbers refer to wholesalers who A. furnish the shelves that display merchandise in retail stores, perform all channel functions, and sell on consignment to retailers. B. own the merchandise they sell and have retailers store it in their warehouses. C. own the merchandise they sell but do not physically handle, stock, or deliver it. D. have a small warehouse from which they stock their trucks for distribution to retailers. E. work for several producers and carry noncompetitive, complementary merchandise in an exclusive territory.

Q: One method of classification for retailers describes whether an organization is self-, limited-, or full-__________. A. involvement B. assortment C. management D. service E. ownership

Q: The four major types of limited-service merchant wholesalers are drop shippers, rack jobbers, cash and carry wholesalers, and __________. A. truck jobbers B. machine vendors C. credit line wholesalers D. transport vendors E. container transport vendors

Q: The __________ distinguishes retail outlets based on whether independent retailers, corporate chains, or contractual systems own the outlet. A. wheel of retailing B. service level C. merchandise line D. product assortment E. form of ownership

Q: The four major types of limited-service merchant wholesalers are rack jobbers, cash and carry wholesalers, truck jobbers, and __________. A. machine vendors B. credit line wholesalers C. transport vendors D. container transport vendors E. desk jobbers

Q: Which of the following is a commonly used method of classifying retail outlets? A. service versus product B. form of ownership C. proportion of national versus private label brands carried D. revenues generated E. profitability

Q: The four major types of limited-service merchant wholesalers are rack jobbers, cash and carry wholesalers, truck jobbers, and __________. A. machine vendors B. credit line wholesalers C. drop shippers D. transport vendors E. container transport vendors

Q: There are three key methods of classifying retail operations. These include: A. method of operation, revenues generated, and merchandise line. B. form of ownership, method of operation, and merchandise line. C. form of ownership, level of service, and merchandise line. D. level of service, merchandise line, and revenues generated. E. merchandise line, form of ownership, and revenues generated.

Q: The four major types of limited-service merchant wholesalers are drop shippers, rack jobbers, truck jobbers, and __________. A. machine vendors B. credit line wholesalers C. transport vendors D. cash and carry wholesalers E. container transport vendors

Q: One way to assess the importance of retailing to the U.S. and global economies is to measure the A. price asked for any one item. B. cost of goods sold. C. people employed in retailing. D. net return on capital. E. progress towards eliminating of global boundaries.

Q: The four major types of limited-service merchant wholesalers are cash and carry wholesalers, drop shippers, truck jobbers, and __________. A. display vendors B. rack jobbers C. point of purchase wholesalers D. transport vendors E. container transport vendors

Q: One way to assess the importance of retailing to the U.S. and global economies is to measure the A. price asked for any one item. B. cost of goods sold. C. net return on capital. D. annual sales of retailers. E. progress towards eliminating of global boundaries.

Q: The wholesalers that perform all channel functions and are found in the health foods, automotive parts, and seafood industries would be __________. A. specialty wholesalers B. full-line wholesalers C. limited-wholesalers D. universal wholesalers E. cash and carry wholesalers

Q: Aeon, Carrefour, Tesco, and Metro Group are A. sizeable wholesalers that handle products for the world's largest retailers. B. new Internet start-ups that have the potential to impact the U.S. economy. C. large retailers outside of the United States. D. large distributors of business products. E. historically important companies that developed consumer selling systems, though none still exist today.

Q: Which type of wholesaler offers a relatively narrow range of products but has an extensive assortment within the product lines carried? A. general merchandise wholesaler B. limited-service wholesaler C. cash and carry wholesaler D. specialty merchandise wholesaler E. drop shipper

Q: Outside the United States, large retailers include __________ in Japan, Carrefour in France, Metro Group in Germany, and Tesco in Britain. A. Aeon B. Toshei C. Seebi D. Goshen E. Toshi

Q: Specialty merchandise wholesalers A. carry a broad assortment of merchandise and perform all channel functions. B. own the merchandise they sell but do not physically handle, stock, or deliver it. C. offer a relatively narrow range of products but has an extensive assortment within the product lines carried. D. work for several producers, carry noncompetitive, complementary merchandise in an exclusive territory, and use over-the-road transportation for all product deliveries. E. deal exclusively with small low-cost consumer goods that are distributed to a select number of large retail chains.

Q: Walmart's $469 billion in sales in 2012 surpassed the gross domestic product of all but __________ countries for that same year. A. 5 B. 12 C. 18 D. 29 E. 55

Q: A wholesaler that carries a narrow range of products and performs all channel functions is referred to as a __________. A. general merchandise wholesaler B. truck jobber C. specialty merchandise wholesaler D. rack jobber E. drop shipper

Q: Which of the following is one of the largest retailers in the United States? A. Hallmark B. Procter and Gamble C. Merck D. Home Depot E. Johnson and Johnson

Q: The wholesalers most prevalent in the hardware, drug, and clothing industries would be __________. A. specialty wholesalers B. full-line wholesalers C. cash and carry wholesalers D. limited-line wholesalers E. universal wholesalers

Q: Four of the 40 largest businesses in the United States are retailers - Walmart, Costco, Home Depot, and __________. A. Sears B. Target C. Best Buy D. JCPenney E. Bloomingdale

Q: General merchandise wholesalers A. carry a broad assortment of merchandise and perform all channel functions. B. own the merchandise they sell but do not physically handle, stock, or deliver it. C. have a small warehouse from which they stock their trucks for distribution to retailers. D. work for several producers, carry noncompetitive, complementary merchandise in an exclusive territory, and use over-the-road transportation for all product deliveries. E. deal exclusively with small low-cost consumer products that are distributed to a select number of large retail chains.

Q: The Sports Authority is a sporting goods superstore that provides year-round inventory of equipment for just about any sport you can name. Even during the off season, equipment for seasonal sports is available at the Sports Authority. Which utility does the Sports Authority best provide? A. time B. convenience C. possession D. form E. performance

Q: Wholesalers that carry a broad assortment of merchandise and perform all channel functions are referred to as a __________. A. limited-line wholesaler B. drop shipper C. rack jobber D. specialty merchandise wholesaler E. general merchandise wholesaler

Q: At the Christmas Tree Shop, customers can shop for Christmas gifts at any time of year. What type of utility primarily does this store provide for its customers? A. place and conformance B. possession and form C. form D. performance E. time

Q: Which of the following is a type of full-service merchant wholesaler? A. cash and carry wholesaler B. rack jobbers C. truck jobbers D. specialty merchandise wholesaler E. drop shippers

Q: The ability to shop over the Internet 24 hours a day, 7 days a week provides consumers with __________ utility. A. form B. time C. convenience D. possession E. performance

Q: Merchant wholesalers are independently owned firms that __________ the merchandise they handle. A. take title to B. broker C. break bulk and repackage D. do not deliver E. act as agents for

Q: A restaurant that offers food made exactly to each customer's preference is providing __________ utility. A. time B. place C. possession D. form E. process

Q: Independently owned firms that take title to the merchandise they handle are referred to as A. brokers. B. agencies. C. virtual retailers. D. merchant wholesalers. E. merchant retailers.

Q: Albertson's Supermarket accepts debit and credit cards as well as cash and checks for purchases. Its acceptance of various forms of payment provides its customers with __________ utility. A. time B. place C. possession D. form E. public

Q: Figure 13-5 According to Figure 13-5 above, D represents which stage of the retail life cycle? A. deceleration B. early growth C. accelerated development D. maturity E. decline

Q: CarMax dealers have adopted a "no-hassle, no-haggle" sales policy that eliminates the need for negotiating. Instead, all customers are offered the same price. Test drives, financing, trade-ins, and leasing are all offered to encourage customers to purchase a car. Which utility does CarMax best provide? A. product B. form C. convenience D. service E. possession

Q: Figure 13-5 According to Figure 13-5 above, C represents which stage of the retail life cycle? A. stabilization B. early growth C. accelerated development D. maturity E. decline

Q: Enterprise car rental agency differentiates itself from other similar agencies by providing a delivery service. This delivery service is particularly valuable to someone who has been left stranded without transportation. By making it easy to rent temporary transportation, Enterprise is emphasizing which utility? A. form B. product C. service D. possession E. convenience

Q: Figure 13-5 According to Figure 13-5 above, B represents which stage of the retail life cycle? A. growth B. early growth C. accelerated development D. maturity E. expansion

Q: Wells Fargo is one of the best-run banks in the United States. It reaches retail customers through 9,000 stores, a worldwide network of 12,000 ATMs, and its online banking service. Which utility does Wells Fargo best provide? A. time B. possession C. place D. form E. performance

Q: Figure 13-5 According to Figure 13-5 above, Stage A represents which stage of the retail life cycle? A. introduction B. early growth C. accelerated development D. maturity E. start-up

Q: The four utilities offered to consumers through retailing are A. convenience, performance, possession, and form. B. time, place, possession, and form. C. product, price, place, and promotion. D. people, productivity, process, and physical environment. E. convenience, consistency, competition, and choice.

Q: Figure 13-5 According to Figure 13-5 above, market share reaches its highest level during which stage of the retail life cycle? A. early growth B. accelerated development C. decline D. maturity E. either early growth or maturity

Q: The __________ provided by retailers create value for consumers. A. utilities B. wholesaling functions C. outsourcing D. profits E. synergies

Q: Which type of outlet is most likely in its decline stage of the retail life cycle? A. single-price stores B. value-retail centers C. online retailers D. general stores E. convenience stores

Q: Retailing is an important marketing activity. Not only do producers and consumers meet through retailing actions, but retailing also creates __________. A. the nation's largest source of tax revenues B. the largest source of charitable contributions C. limited utilities for consumers D. customer value E. a sense of community

Q: Which type of outlet is most likely in its maturity stage of the retail life cycle? A. single-price stores B. value-retail centers C. online retailers D. business-district retailers E. convenience stores

Q: Retailing refers to all activities involved in the A. selling, renting, and providing of products and services to ultimate consumers for personal, family, or household use. B. selling of tangible products to ultimate consumers for personal, family, or household use. C. selling of tangible products to ultimate consumers for personal, household, or industrial use. D. selling, renting, leasing, or reselling of products and services to ultimate consumers or small industrial users. E. selling, renting, and providing of products and services without retaining the title to these offerings.

Q: Discounting generally takes place during which stage of the retail life cycle? A. early growth B. accelerated development C. decline D. maturity E. early growth and maturity

Q: All activities involved in selling, renting, and providing products and services to ultimate consumers for personal, family, or household use are referred to as __________. A. manufacturing B. retailing C. wholesaling D. facilitating E. logistics

Q: In the retail life cycle, the battle for market share is usually fought before the __________ stage, and some competitors drop out of the market. A. decline B. growth C. maturity D. harvest E. introduction phase

Q: All of the following are examples of marketers developing products and services that use augmented reality EXCEPT: A. clothing retailers allow consumers to take pictures of themselves and then superimpose images of clothing on them. B. IBM created an app that enables smartphone users to take a picture of a product they are interested in, then displaying information about that item on the screen based on their preferences (price, nutritional value, etc.). C. IKEA's new catalog allows consumer to access 3D models and videos through a tablet image recognition app. D. Aurasma has developed pattern recognition software that can identify real-world objects, which then activates animations for consumers to view. E. Apple's iTV allows viewers to take a picture or video of themselves and then places it in an online, holographic reality TV programs, such as Survivor.

Q: Which type of outlet is most likely in its accelerated development stage of the retail life cycle? A. single-price stores B. online retailers C. supermarkets D. business-district retailers E. convenience stores

Q: The overlay of sound, video, and graphics with the real-world environment creates what type of reality for wearers of these new Google Glass digital eyeglasses? A. virtual B. cognitive C. augmented D. apparent E. ultimate

Q: Accelerated development in the retail life cycle is similar to which stage in the product life cycle? A. introduction B. maturity C. decline D. growth E. harvest

Q: The revolutionary new __________ resembles a pair of eyeglasses that has both the capability for voice recognition and a small screen capable of displaying information that may help wearers with their shopping experiences as they engage in the purchase decision process. A. Apple iWatch B. Facebook Vision C. EyeTap Goggles D. Google Glass E. Foursquare's FourEyes

Q: The key goal for retailers in the accelerated development phase of the retail life cycle is to A. recover start-up costs. B. establish a dominant position in the fight for market share. C. delay entering the decline stage of the retail life cycle. D. find ways of discouraging customers from moving to low-margin, mass-volume outlets. E. establish a retail concept that is a sharp departure from existing competition.

Q: During which stage of the retail life cycle do companies establish multiple outlets? A. decline B. maturity C. accelerated development D. introduction E. early growth

Q: Both market share and profit achieve their greatest growth rates during which stage of the retail life cycle? A. decline B. maturity C. introduction D. early growth E. accelerated development

Q: Which type of outlet is most likely in its early growth stage of the retail life cycle? A. single-price stores B. online retailers C. supermarkets D. warehouse clubs E. business-district retailers

Q: According to the retail life cycle, in which stage would market share rise gradually, although profits may be low because of start-up costs? A. decline B. maturity C. introduction D. accelerated development E. early growth

Q: In the retail life cycle, __________ is the stage of emergence of a retail outlet, with a sharp departure from existing competition. A. decline B. maturity C. introduction D. early growth E. accelerated development

Q: The four stages of the retail life cycle areA. introduction, growth, maturity, and decline.B. awareness, inquiry, alternative evaluation, and purchase.C. early growth, accelerated development, maturity, and decline.D. innovation, standardization, adaptation, and obsolescence.E. innovation, adaptation, imitation, and obsolescence.

Q: The retail life cycle refers to A. the distinct stages a product goes through before it becomes obsolete. B. the process of growth and decline that retail outlets, like products, experience. C. the cycle of a customer's buying behavior from awareness of a product to its ultimate purchase. D. the relationship between the tangible aspects of a product and the types of services that need to accompany it. E. the traditional management changes that take place as a retail outlet grows.

Q: Retail outlets, like products, experience the process of growth and decline, which is referred to as the A. retail life cycle. B. wheel of retailing. C. product life cycle. D. retail continuum. E. retail life matrix.

Q: In-N-Out Restaurant Photo Outlets such as the In-N-Out Restaurant (see the photo above), typically enter the wheel of retailing with A. limited menus and limited service. B. extensive menus and expansive service. C. extensive menus and self-service. D. high prices and novel menu items. E. high prices and expansive service.

Q: According to Figure 13-4 above, where would you find the highest prices, margins, and status? A. A B. B C. C D. D E. A and D

Q: Figure 13-4 above shows the wheel of retailing, which indicates that retail outlets typically go through changes with the passage of time, starting at Box A. What characteristics in the wheel of retailing does B represent? A. low prices, low margins, low status. B. higher prices, higher margins, and higher status. C. low prices, high margins, and high status. D. stable prices, low margins, and stable status. E. moderate prices, high margins, and high status.

Q: Figure 13-4 According to Figure 13-4 above, Box A represents the stage in the wheel of retailing when a retail outlet starts with A. low prices, high margins, and high status. B. mixed prices, mixed margins, and mixed status. C. low prices, low margins, and low status. D. moderate prices, high margins, and high status. E. high prices, low margins, and mixed status.

Q: The wheel of retailing refers to A. the life cycle of most consumer products sold at retailers. B. the diffusion of types of retailers for a new product. C. the progression of retail locations an outlet goes through. D. the description of how new forms of retail outlets enter the market. E. the description of retail management philosophies.

Q: The description of how new forms of retail outlets enter the market is referred to as the __________. A. retail life cycle B. product life cycle C. wheel of retailing D. retail life matrix E. retail continuum

Q: Same-Store Sales Growth Marketing Dashboard According to the Same-Store Sales Growth Marketing Dashboard above, which retailer has the GREATEST same-store sales growth? A. Target B. Neiman Marcus C. Apple D. Best Buy E. Tiffany

Q: Neiman Marcus has approximately what amount of sales per square foot according to the UMD16A: Sales per Square Foot Marketing Dashboard above? A. $300 B. $600 C. $900 D. $3,500 E. $5,400

Q: Apple has approximately what amount of sales per square foot according to the Sales per Square Foot Marketing Dashboard above? A. $300 B. $600 C. $900 D. $3,500 E. $5,400

Q: Best Buy has approximately what amount of sales per square foot according to the Sales per Square Foot Marketing Dashboard above? A. $300 B. $600 C. $900 D. $3,500 E. $5,400

Q: Sales per Square Foot Marketing Dashboard Which of the following stores shown in the Sales per Square Foot Marketing Dashboard above has the HIGHEST sales per square foot? A. Target B. Neiman Marcus C. Best Buy D. Tiffany E. Apple

Q: The calculation for same-store sales growth is A. total sales selling area in square feet. B. (store sales in year 2 store sales in year 1). C. store sales in year 1 (store sales in year 2 - store sales in year 1). D. (store 1 sales store 1 square feet) (store 2 sales store 2 square feet). E. (store sales in year 2 - store sales in year 1) store sales in year 1.

Q: A financial indicator used to compare the increase in sales of stores that have been open for the same period of time is referred to as __________. A. return on investment B. percentage of markup C. gross profit D. sales per square foot E. same-store sales growth

Q: Boston Pizza wants to determine how effective their retail space is compared to other pizza establishments in the local area. The calculation for this indicator is arrived at by determining the __________ for its store and comparing it against the same indicator for all of the other local pizza outlets. A. gross margin B. same-store sales growth C. sales per square foot D. net profit E. net present value

Q: Sales per square foot is calculated by dividing A. profit margin by selling area in square feet. B. gross profit by selling area in square feet. C. total sales by selling area in square feet. D. return on investment by selling area in square feet. E. net sales by selling area in square feet.

Q: A common financial indicator of how effectively retail space is used to generate revenue can be calculated by determining __________. A. net revenue B. maintained markup C. market share D. sales per square foot E. return on investment

Q: The marketing metrics related to a retailer's finances include all of the following EXCEPT: A. the markdown percentage. B. the average length of a store visit. C. the return on sales. D. the gross margin. E. the sales per employee.