Q&A Hero

Q: For what type of contractual system does a parent company provide assistance in selecting the location, setting up the store or facility, advertising, and training personnel? A. administered system B. conglomerate system C. franchise system D. vertical integrated system E. retail-sponsored cooperative

Q: Brokers are independent firms or individuals who A. represent a single producer and are responsible for the entire marketing function of that producer. B. work for several producers and carry noncompetitive, complementary merchandise in an exclusive territory. C. take title to merchandise but sell only to buyers who call on them, pay cash for merchandise, and furnish their own transportation for the merchandise. D. own the merchandise they sell but do not physically handle, stock, or deliver it. E. bring buyers and sellers together to make sales.

Q: In a(n) __________, an individual or firm contracts with a parent company to set up a business or retail outlet. A. administered system B. vertically integrated chain C. retail-sponsored cooperative D. franchise system E. corporate system

Q: Carla's Cards uses a __________ to sell and market the entire line of greeting cards. It designs promotional plans, sets prices, determines distribution policies, and makes recommendations to Carla on product strategy. A. manufacturer's agent B. broker C. manufacturer's branch office D. manufacturer's sales office E. selling agent

Q: Franchising is a type of __________. A. administered system B. contractual system C. vertically integrated chain D. retail-sponsored cooperative E. corporate system

Q: Intermediaries to not take title to a product but are responsible for designing its promotional plans, setting prices, determining distribution policies, and making recommendations on product strategy are referred to as __________. A. brokers B. line brokers C. distribution brokers D. selling agents E. manufacturer's agents

Q: Which method of classifying retail outlets would be most appropriate for describing franchise operations? A. form of ownership B. level of service C. merchandise line D. method of operation E. revenues generated

Q: Intermediaries that represent a single producer and are responsible for the entire marketing function of that producer are referred to as __________. A. brokers B. line brokers C. selling agents D. distribution brokers E. manufacturer's agents

Q: Neighborhood grocers that ban together with several other independent grocers who all agree to buy their goods directly from food manufacturers is a(n) A. retailer-sponsored cooperative. B. consortium system. C. administrative system. D. conglomerate system. E. collaborate chain.

Q: Selling agents refer to agents whoA. furnish the racks or shelves that display merchandise in retail stores, perform all channel functions, and sell on consignment to retailers.B. represent a single producer and are responsible for the entire marketing function of that producer.C. work for several producers and carry noncompetitive, complementary merchandise in an exclusive territory.D. take title to merchandise but sell only to buyers who call on them, pay cash for merchandise, and furnish their own transportation for the merchandise.E. sell primarily large bulky products.

Q: One way neighborhood grocers can take advantage of volume discounts commonly available to corporate chains is to A. purchase a franchise membership. B. become a subsidiary of a larger supermarket chain like Kroger. C. join a professional merchant association and hire food brokers to negotiate lower prices for produce and dry goods. D. create a grocery networking system to exchange coupon vouchers. E. participate in a retailer-sponsored cooperative with other independent grocers.

Q: A regional bakery makes organic breads and muffins. It feels the choice of distribution channel is critical to the product's success, especially since it wants to have the product distributed nationally. However, it will take some time before sales take off, and the bakery wants to make sure the marketing program is consistent everywhere. It should use A. a manufacturer's agent to sell to truck jobbers who in turn will deal with retailers. B. its own salesforce to sell directly to retailers. C. the services of a selling agent to sell to general merchandise wholesalers who will sell to retailers. D. a dual distribution system composed of both direct and indirect wholesalers. E. a rack jobber who will sell to a merchant wholesaler and who will in turn sell to retailers.

Q: The three basic types of contractual systems are: A. retailer-sponsored cooperatives, wholesaler-sponsored voluntary chains, and franchises. B. dual ownership agreements, industry consortiums, and non-binding cooperatives. C. wholesaler-sponsored voluntary chains, non-binding cooperatives, and franchises. D. dual ownership agreements, industry consortiums, and multi-national cartels. E. non-binding, binding, and in perpetuity.

Q: Another name for a manufacturer's agent is a __________. A. manufacturer's desk jobber B. manufacturer's transport vendor C. manufacturer's representative D. manufacturer's broker E. manufacturer's rack jobber

Q: Independently owned stores that band together to act like a chain are referred to as __________. A. corporate chains B. cooperative marketing systems C. contractual systems D. regional shopping centers E. self-service systems

Q: Intermediaries that work for several producers and carry noncompetitive, complementary merchandise in an exclusive territory are referred to as __________. A. selling agents B. line brokers C. distribution brokers D. manufacturer's agents E. brokers

Q: Walmart has developed a sophisticated inventory management and cost control system that allows rapid price changes for each product in the store. The firm also uses technologies such as __________ to improve the quality of information available about products. A. radio frequency identification B. encapsulation techniques C. bar code scanners D. nanotechnology E. cookies

Q: Manufacturer's agents refer to agents who A. represent a single producer and carry all products in the producer's lines. B. work for several producers and carry noncompetitive, complementary merchandise in an exclusive territory. C. take title to merchandise but sell only to buyers who call on them, pay cash for merchandise, and furnish their own transportation for merchandise. D. own the merchandise they sell but do not physically handle, stock, or deliver it. E. furnish the racks or shelves that display merchandise in retail stores, perform all channel functions, and sell on consignment to retailers.

Q: The acronym RFID stands for A. retail franchise identification designation. B. required financial identification. C. radar frequency identification. D. radio frequency identification. E. retail federation of independent department stores.

Q: Which of the following statements best describes the key difference between merchant wholesalers and agents and brokers? A. Merchant wholesalers don't perform all channel functions whereas agents and brokers do. B. Agents and brokers only deal with consumer channels. C. Agents and brokers make their profits based on the sales of merchandise they own, while merchant wholesalers make profits based on fees paid for their services. D. Merchant wholesalers take title to merchandise whereas agents and brokers do not. E. Agents and brokers take title to merchandise whereas merchant wholesalers do not.

Q: Consumers benefit in dealing with retail corporate chains because A. corporate chains have more experience than other forms of retailers. B. they can own stock in the same company where they shop since corporate chain stock must be publicly-traded. C. they can establish a credit history more easily than with other forms of retailers. D. there are multiple outlets with similar merchandise and consistent management policies. E. they have less stress in making decisions since merchandise is arranged and displayed by professional designers.

Q: Which of the following firms has made the wisest wholesaler choice for its product? A. Hannah's Hardware uses a rack jobber for its hammers. B. Fiona's Floral uses a truck jobber for its cut roses. C. Sam's Coal Country uses a truck jobber for its subway cars. D. Shayna's Superior Supplies uses a desk jobber for its staplers. E. Josh's Jackhammers uses a rack jobber for its hard hats.

Q: Consumers benefit in dealing with retail corporate chains because A. corporate chains have more experience than other forms of retailers. B. they can own stock in the same company where they shop since corporate chain stock must be publicly-traded. C. the latter can bargain with a manufacturer to obtain product volume discounts on orders, which can be passed on to consumers in terms of lower prices. D. there are multiple outlets, each with its own varied merchandise and different management policies. E. merchandise is arranged and displayed by professional designers making their shopping experience less stressful.

Q: A __________ would most likely most likely use truck jobbers to distribute its products. A. clothing manufacturer B. manufacturer of electric generators C. leather goods importer D. pharmaceutical company E. meat processing plant

Q: Which of the following statements regarding corporate chains is most accurate? A. Corporate chains cannot bargain with a manufacturer to obtain product volume discounts due to federal anticompetitive legislation. B. Corporate chains generally own most if not all of their suppliers, a practice known as forward integration, so they can save distribution costs. C. Consumers have fewer choices in merchandise since all buying decisions are made by a decentralized buying committee. D. Corporate chains offer the least benefit to consumers since they are the farthest removed from the ultimate consumer. E. Corporate chains are multiple outlets under common ownership.

Q: Bakery items, dairy products, and meat that are sold for cash in their original packages are traditionally sold by which type of wholesaler? A. rack jobbers B. drop shippers C. cash and carry wholesalers D. truck jobbers E. general merchandise wholesalers

Q: Bloomingdale's stores are part of the Macy's __________. A. corporate chain B. consumer cooperative C. contractual system D. retail conglomerate E. administered system

Q: Wholesalers who handle a limited assortment of fast-moving or perishable items that are sold for cash directly from trucks in their original packages are referred to as __________. A. rack jobbers B. drop shippers C. truck jobbers D. cash and carry wholesalers E. manufacturer's representatives

Q: In retailing, a form of ownership that involves multiple outlets under common ownership is referred to as a(n) A. corporate chain. B. consumer cooperative. C. contractual system. D. independent retailer. E. administered system.

Q: Wholesalers who have a small warehouse from which they stock their trucks for distribution to retailers are referred to as __________. A. cash and carry wholesalers B. truck jobbers C. rack jobbers D. drop shippers E. manufacturer's representatives

Q: Your neighborhood dry cleaner or florist is likely to be categorized as an independent retailer. This means it is owned by a(n) __________. A. individual B. conglomerate C. consortium D. chain E. cooperative

Q: The term truck jobbers refers to wholesalers who A. furnish the racks or shelves that display merchandise in retail stores, perform all channel functions, and sell on consignment to retailers. B. store all the merchandise they sell in their trucks. 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, carry noncompetitive, complementary merchandise in an exclusive territory, and use over-the-road transportation for all product deliveries.

Q: Which form of retail outlet would most likely offer customers convenience, quality personal service, and lifestyle compatibility? A. corporate chain B. independent retailer C. administered system D. contractual system E. sole incorporation

Q: Which of the following firms has made the wisest wholesaler choice for its product? A. Sam's Coal Country uses a drop shipper for its coal. B. Amy's Amazing Appetizers uses a rack jobber for its frozen apricot aperitifs. C. Hannah's Hardware uses a rack jobber for its hinges. D. Shayna's Superior Supplies uses a desk jobber for its staplers. E. Nova's Novelties uses a truck jobber for its never-needs-a-battery night lights.

Q: Most of the 1.1 million retail establishments in the United States, including hardware stores, convenience stores, clothing stores, and computer and software stores, are considered __________. A. corporate chains B. contractual systems C. independent retailers D. conglomerate E. multinationals

Q: Coal, lumber, and chemicals, which are sold in extremely large quantities, are traditionally sold by which type of wholesaler? A. cash and carry wholesalers B. rack jobbers C. truck jobbers D. general merchandise wholesalers E. drop shippers

Q: Independent retailers account for most of the __________ retail establishments in the United States. A. 50,000 B. 90,000 C. 500,000 D. 900,000 E. 1.1 million

Q: Wholesalers who simply solicit orders from retailers and other wholesalers and have the merchandise shipped directly from a producer to a buyer are referred to as __________. A. cash and carry wholesalers B. rack jobbers C. drop shippers D. truck jobbers E. manufacturer's representatives

Q: One of the most common forms of retail ownership is the __________ owned by a person. A. corporate chain B. consumer cooperative C. contractual system D. independent retailer E. administered system

Q: Wholesalers who own the merchandise they sell but do not physically handle, stock, or deliver it are referred to as __________. A. cash and carry wholesalers B. rack jobbers C. truck jobbers D. manufacturer's representatives E. drop shippers

Q: There are three general forms of retail ownership: independent retailer, corporate chain, and __________. A. dual ownership B. industry consortium C. retailing cooperative D. contractual system E. multi-national cartel

Q: Another name for a drop shipper is a __________. A. drop runner B. desk jobber C. transport vendor D. container transport vendor E. stock jobber

Q: There are three general forms of retail ownership: contractual system, independent retailer, and __________. A. dual ownership B. industry consortium C. retailing cooperative D. multi-national cartel E. corporate chain

Q: Drop shippers A. own the merchandise they sell but do not physically handle, stock, or deliver it. B. perform all channel functions, and sell on consignment to retailers. C. take title to merchandise but sell only to buyers who call on them, pay cash for merchandise, and furnish their own transportation for merchandise. 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: There are three general forms of retail ownership: contractual system, corporate chain, and __________. A. dual ownership B. industry consortium C. retailing cooperative D. independent retailer E. multi-national cartel

Q: Cash and carry wholesalers A. handle bulky items like lumber, bricks, and telephone poles. B. handle perishable items like flowers, baked goods, and deli meats. C. handle office supplies, electrical supplies, hardware products, and groceries. D. are a kind of full-service wholesaler. E. lease vending machines to merchants and refill them as needed on a cash only basis.

Q: Walmart reduced waste in packaging by 3,500 tons by __________. A. purchasing more merchandise from U.S. manufacturers B. requiring its toy suppliers to trim one square inch of packaging from their lines C. shipping with airline carriers which provide superior handline D. identifying products that can be shipped without packaging materials E. using natural gas-powered delivery vehicles that reduce emissions

Q: Wholesalers who take title to merchandise but sell only to buyers who call on them, pay cash for merchandise, and furnish their own transportation for merchandise are referred to as __________. A. rack jobbers B. truck jobbers C. transport vendors D. cash and carry wholesalers E. drop shippers

Q: When Home Depot switched its in-store light fixture displays to compact fluorescent light and LED light bulbs, painted the roofs of its stores white, and installed solar panels, it reduced its energy use by __________ percent. A. 5 B. 10 C. 15 D. 20 E. 25

Q: Cash and carry wholesalers refer to wholesalers who A. furnish the racks or shelves that display merchandise in retail stores, perform all channel functions, and sell on consignment to retailers. B. take title to merchandise but sell only to buyers who call on them, pay cash for merchandise, and furnish their own transportation for merchandise. 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: __________ provides third-party certification and offers guidance for retailers implementing new environmentally sound practices. A. The Environmental Protection Agency B. The U.S. Chamber of Commerce - Environmental Division C. Green Cross International D. U.S. Green Retail Association E. Leadership in Energy and Environmental Design (LEED)

Q: Which of the following firms has made the wisest wholesaler choice for its product? A. Sam's Coal Country uses a cash and carry wholesaler for its coal. B. Amy's Amazing Appetizers uses a rack jobber for its frozen apricot aperitifs. C. Raisha's Retros uses a rack jobber for its replica racecar radios in travel plazas on interstate highways. D. Shayna's Superior Supplies uses a desk jobber for its staplers. E. Nova's Novelties uses a truck jobber for its never-needs-a-battery night lights.

Q: Retailers may decide to pursue a third-party environmental certification because consumers want to purchase products from those retailers that have similar __________. A. offerings B. ideologies C. risk tolerance D. locations E. pricing strategies

Q: Which type of wholesaler traditionally sells hosiery, toys, and health and beauty items? A. cash and carry wholesalers B. truck jobbers C. general merchandise wholesalers D. rack jobbers E. drop shippers

Q: A method of classification that describes how many different types of products a retailer carries and in what assortment is referred to as a __________. A. product mix B. service level C. product variety D. store composition E. merchandise line

Q: Selling on consignment to retailers, which means they retain the title to the products displayed and bill retailers only for the merchandise sold, is characteristic of which limited-service wholesaler? A. truck jobbers B. transport vendors C. rack jobbers D. cash and carry wholesalers E. drop shippers

Q: Level of service is used to classify retailers. Three levels of service are: __________-, limited-, and full-service retailers. A. self B. non C. minimal D. fair E. upon request

Q: A limited-service wholesaler that furnishes shelves that display merchandise in stores, performs all channel functions, and sells on consignment to retailers is referred to as a __________. A. stack loader B. rack jobber C. drop shipper D. desk jobber E. truck jobber

Q: Three __________ are provided by retailers: self-, limited-, and full-service. A. levels of distribution B. levels of involvement C. levels of service D. levels of production E. levels of merchandise lines

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