Q&A Hero

Q: Which form of retailing is Best Buy now using in airports to distribute its mobile phone and computer accessories, digital cameras, flash drives, and other consumer electronics? a. vending machines b. salespeople with mobile carts c. mall-scale traditional retail stores d. salespeople wearing Best Buy uniforms with products in backpacks e. free-standing kiosks manned with knowledgeable sales personnel

Q: Explain the relationship between a franchisee and a franchisor.

Q: About 30 percent of the products sold from vending machines are __________. a. candy and snacks b. personal items c. movies and videos d. cold beverages e. food

Q: Briefly describe the two general types of franchises.

Q: Prices in vending machines tend to be higher because a. machines are placed in high demand/traffic areas. b. maintenance, operating, and leasing costs are high. c. only small unit volume items are sold. d. customary pricing requires certain coin and currency amounts regardless of the normal retailer markup. e. few people buy from vending machines.

Q: Briefly describe the advantages to the retailer and to the customer of the independent retailer.

Q: Vending machines are an example of __________. a. hypermarkets b. direct mail c. scrambled merchandising d. intertype competition e. nonstore retailing

Q: Briefly describe the three ways retail outlets can be classified.

Q: Which of the following is an example of nonstore retailing? a. hypermarkets b. supercenters c. shopping centers d. vending machines e. general merchandise stores

Q: Explain the global impact of retailing.

Q: Retailing that occurs outside a retail outlet, such as through direct marketing, direct selling, and automatic vending is referred to as __________. a. limited-line retailing b. nonstore retailing c. scrambled merchandising d. a hypermarket e. intertype competition

Q: Name each of the four utilities offered by retailing and with each, identify a retailer that provides that utility.

Q: Many supermarkets have in-store restaurants where a customer can buy prepared meals to take home or eat there. Supermarkets and restaurants that provide these kinds of meals are engaged in __________ competition. a. intertype b. institutional c. intermodal d. functional e. selective

Q: What is the value of retailing for consumers and the economy?

Q: Fresh-cut flowers that only used to be available from florists can now be purchased at neighborhood supermarkets. This is an example of __________. a. dysfunctional competition b. mixed-line merchandising c. multi-product marketing d. intertype competition e. dual distribution

Q: A significant difference between the Mall of America and other regional shopping centers is that a. all MOA employees are required to be multilingual because of the store's international draw. b. MOA has twice as much space devoted to specialty stores than to anchor stores. c. retail store owners can live in attached condominiums, at reduced rates, so they don"t have to worry about getting to work in bad weather. d. employees can take classes on the premises offered through a local community college. e. employees get a 50% discount at all the food establishments.

Q: Intertype competition refers to competition between a. very similar types of retail outlets that results from a single-product/single-line merchandising policy. b. retailers when the items they sell are virtually indistinguishable from one another. c. national and generic brands that are sold side-by-side in a retail outlet. d. retailers located in separate quadrants of the retail positioning matrix. e. very dissimilar types of retail outlets that results from a scrambled merchandising policy.

Q: Mall of America has verbalized its __________ strategy with the slogan, "A place for fun!" a. retail mix b. wheel of retailing c. retail life cycle d. distribution e. retail positioning

Q: Competition for the same or similar type of product or service between very dissimilar types of retail outlets that results from a scrambled merchandising policy is referred to as __________. a. mixed merchandising b. intertype competition c. scrambled merchandising d. multi-service merchandising e. dual distribution

Q: The Mall of America is an example of which type of setting for a store location? a. central business district b. regional shopping center c. community shopping center d. strip mall e. power center

Q: A supercenter refers to a. an auto service center that sells and leases cars as well as repairs them. b. a type of specialty outlet. c. a store that combines a typical merchandise store with a full-size grocery store. d. a mall with more than 100 stores and several important anchor stores. e. a store one step larger than a hypermarket.

Q: A channel intermediary that does not carry inventory, typically performs only a sales function, and is an alternative to agents and brokers is referred to as a __________. a. brokering agent b. cash and carry wholesalers c. manufacturer's sales office d. manufacturer's branch office e. merchant wholesalers

Q: Meijer is a chain of hypermarkets headquartered in Michigan, which means it a. engages in no intertype competition. b. is a disintermediator. c. uses scrambled merchandising. d. can also be referred to as a category killer. e. uses dual distribution.

Q: A manufacturer's sales office a. works for several producers and carries noncompetitive, complementary merchandise in an exclusive territory. b. takes title to merchandise but sells only to buyers who call on them, pays cash for merchandise, and furnishes their own transportation for the merchandise. c. carries a producer's inventory, performs the functions of a full-service wholesaler and is an alternative to a merchant wholesaler. d. does not carry inventory, typically performs a sales function, and is an alternative to agents and brokers. e. brings buyers and sellers together to make sales.

Q: Which type of store gives shoppers the greatest variety of merchandise? a. a hypermarket b. a specialty clothing store c. a limited-line gift store d. a clothing outlet e. a discount store

Q: A manufacturer's branch office a. carries a producer's inventory and performs the functions of a full-service wholesaler. b. performs a sales function as an option to agents and brokers. c. works for several producers and carries noncompetitive, complementary merchandise in an exclusive territory. d. takes title to merchandise but sells only to buyers who call on them, pays cash for merchandise, and furnishes their own transportation for the merchandise. e. brings buyers and sellers together to make sales.

Q: Located predominately in Europe, these large stores (90,000 - 300,000 square feet) offer 20,000-80,000 different food, grocery, and general merchandise products, have annual revenue of over $100,000,000 per store, and are referred to as a. discount wholesalers. b. discount retailers. c. supermarkets. d. hypermarkets. e. retail cooperatives.

Q: Unlike merchant wholesalers, agents, and brokers, manufacturers' branches and sales offices are __________ that perform wholesaling activities. a. independent distribution managers b. independent intermediary channels c. wholly-owned extensions of the producer d. wholly-owned extensions of the distributor e. wholly-owned extensions of the retailer

Q: In Europe, stores called __________ are based on the concept of one-stop shopping for consumers. Such retail stores, which use scrambled merchandising, often encompass over 200,000 square feet and offer quality, variety, and low price for food and groceries and general merchandise.a. megamarketsb. hypermarketsc. one-stop marketsd. euromarketse. supercenters

Q: Wholly-owned extensions of the producer that perform wholesaling activities are referred to as a. general merchandise wholesalers. b. cash and carry wholesalers. c. agents and brokers. d. manufacturer's branches and sales offices. e. merchant wholesalers.

Q: "Hypermarket" refers to a. category killers that specialize in electronics. b. a form of intertype competition general merchandise store. c. shopping malls anchored by four or more department stores such as Sears or Nordstrom's. d. a form of limited-service outlets focusing on general merchandise like that offered in department stores. e. a form of scrambled merchandising, which consists of large stores (more than 200,000 square feet) that offer everything in a single outlet, eliminating the need for consumers to shop at more than one location.

Q: A business in Kansas City, Missouri, looking to rent office space should use a __________ to help it locate the most suitable space at the best possible rate. a. selling agent b. broker c. manufacturer's representative d. manufacturer's agent e. administrator

Q: A drug store that sells pharmaceuticals, beauty aids, camera equipment, nonperishable grocery items, and automobile motor oil is an example of a retailer using a. multiple distribution channels. b. full-service. c. scrambled merchandising. d. intertype competition. e. dual channel marketing.

Q: Freightfinder.com is an Internet company that is called a "go-between." If a trucker needs to find a load for a particular trade lane, he or she can visit this site, list the price and available truck space, and find a company that needs a shipment moved. Since the purpose of this website is to put buyer and sellers together so that a sale can be made, this website can be categorized as a__________. a. broker b. selling agent c. manufacturer's representative d. manufacturer's agent e. administrator

Q: Scrambled merchandising refers to a. displaying merchandise and highlighting complementary products rather than keeping all similar items together in rows on a shelf. b. offering several unrelated product lines in a single store. c. changing where items are displayed in a store to create interest and expose customers to alternative product choices. d. retailers that purchase odd-lots of overstocks or discontinued items for resale. e. strip malls that house a seemingly mismatched assortment of retail outlets to create more customer traffic.

Q: A unique broker that acts in many ways like a manufacturer's agent is a food broker, representing buyers and sellers in the grocery industry. Food brokers differ from conventional brokers because they act on behalf of producers on a permanent basis and a. receive a commission for their services. b. are paid a flat fee for each time the shelves are stocked. c. are paid by both the buyer and seller separately depending upon the size of the order. d. are paid a commission by the buyer and a bonus by the seller. e. are paid a flat fee by both the buyer and seller, but receive a bonus based upon the percentage of increased sales by quarter.

Q: Offering several unrelated product lines in a single store is referred to as __________. a. intertype competition b. multiple distribution c. scrambled merchandising d. a department store e. a specialty outlet

Q: Originally, filters for Mr. Coffee electric-drip coffee makers were sold through appliance and mass merchandise stores. If the company decided to sell the filters in grocery stores where customers purchased their coffee, what type of intermediaries would the company most likely hire? a. a full-line wholesaler b. drop shippers c. food brokers d. truck jobbers e. manufacturer's representatives

Q: Stores like Dillard's, Macy's, and Neiman Marcus carry a wide range of different types of products but not unusual sizes. They are known as __________. a. limited-line stores b. scrambled merchandise stores c. hypermarkets d. intertype outlets e. general merchandise stores

Q: Independent firms or individuals whose principal function is to bring buyers and sellers together to make sales are referred to as __________. a. manufacturer's agents b. brokers c. selling agents d. manufacturer's branches e. manufacturer's sales offices

Q: Stores that carry a broad product line with limited depth are referred to as __________. a. limited-line stores b. general merchandise stores c. scrambled merchandise stores d. hypermarkets e. intertype outlets

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: Staples is a specialty discount retailer that focuses on one type of productoffice supplies. Staples is referred to as a a. hypermarket b. national dominator c. category killer d. regional dominator e. general merchandise store

Q: Carla's Cards uses a __________ to sell and market the entire line of greeting cards. They design promotional plans, set prices, determine distribution policies, and make 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: Specialty stores that dominate the market are referred to in the retail trade as _________. a. hypermarkets b. category killers c. specialty outlets d. regional dominators e. general merchandise stores

Q: Intermediaries that represent a single producer and are responsible for designing 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: A type of retail outlet that focuses on one type of product at very competitive or discount prices and often dominates the market is referred to as a __________. a. general merchandise store b. specialty outlet c. hypermarket d. category killer e. regional dominator

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: Mike's Camera is a retailer that carries a full line of professional and amateur camera equipment, develops all types of film and digital photos, and sells darkroom equipment. Mike's Camera is an example of a(n) __________. a. hypermarket b. general merchandise store c. scrambled merchandise store d. intertype outlet e. specialty outlet

Q: Selling agents refer to agents who a. 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: Limited- and single-line stores are often referred to as __________. a. specialty outlets b. general merchandise stores c. scrambled merchandise stores d. intertype outlets e. hypermarkets

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: Victoria's Secret, a nationwide chain, carries great depth in women's lingeriethe only type of merchandise it carries. Victoria's Secret is an example of a(n) __________. a. limited-line stores b. single-line store c. intertype outlet d. general merchandise store e. scrambled merchandise store

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: Stores that carry tremendous depth in one primary line of merchandise are referred to as a. hypermarkets. b. intertype outlets. c. scrambled merchandise stores. d. limited-line stores. e. single-line stores.

Q: Manufacturer's agents refer to agents 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: Stores that carry a considerable assortment (depth) of a related line of items are referred to as a. limited-line stores. b. general merchandise stores. c. scrambled merchandise stores. d. hypermarkets. e. intertype outlets.

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: Your local Target retailer carries a variety of different items. You can find everything ranging from socks and DVDs to baby items and groceries. This is an example of the __________ carried by Target. a. breadth of product line b. depth of product line c. variety of product line d. versatility of product line e. product mix

Q: Another name for a manufacturer's agent is _________. a. manufacturer's desk jobber b. manufacturer's transport vendor c. manufacturer's representative d. manufacturer's transport vendor e. manufacturer's jobber

Q: The variety of different items a store carries is referred to as a. the quality of merchandise a store carries. b. the breadth of product line. c. a wide assortment of a few related items. d. the physical size, from large to small, of products within a product line. e. depth of product line.

Q: Which of the following statements describes the key difference between merchant wholesalers and agents and brokers? a. Merchant wholesalers don"t perform all channel functions and 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 and agents and brokers do not. e. Agents and brokers take title to merchandise and merchant wholesalers do not.

Q: The variety of different items a store carries is referred to as the a. retailing mix. b. depth of product line. c. breadth of product line. d. width of product line. e. length of product line.

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: New Balance offers shoes for men, women, and children in many sizes and foot widths. It offers running, cross training, walking, golf, and other types of shoes. This an example of the __________ that New Balance offers to its customers. a. product items b. depth of product line c. breadth of product line d. versatility of product family e. variety of product mix

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: Your local Hallmark retailer carries thousands of greeting cards. You can find cards for a "twins" birthday, from my cat to yours, and many other unique occasions. This is an example of the _________ that the Hallmark retailer carries. a. depth of product line b. breadth of product line c. height of product line d. length of product line e. width of product line

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. 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: A large assortment of each item in a store is referred to as a. product span. b. breadth of product line. c. length of product line. d. width of product line. e. depth of product line.

Q: A __________ would be most likely to use truck jobbers to distribute its products. a. a clothing manufacturer b. manufacturer of electric generators c. a leather goods importer d. pharmaceutical company e. meat processing plant

Q: Depth of product line refers to a. the percentage of goods stored as inventory. b. the variety of different product a store carries c. variations in price and color on specific items in a store. d. the number of items available within a product line. e. the number of different product classes owned by a corporate chain.

Q: Bakery items, dairy products, and meat that are sold for cash directly from trucks 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: Your local Safeway grocery store is likely to be categorized according to what form of ownership, level of service, or merchandise line? a. form of ownership b. level of service c. merchandise line d. method of operation e. revenue generated

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: Retail outlets vary by their merchandise lines, the key distinction being the __________ and __________ of the items offered to customers. a. breadth; span b. breadth; depth c. breadth; line d. scope; inventory e. range; span

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: A Woman's Place is a retail store, created and staffed by women, that offers products and services relating to maternity needs. For expectant mothers, it offers advice and personal shopping services, help with hair and/or make-up problems, and free delivery. A Woman's Place is an example of a(n) __________ retailer. a. franchise b. service c. limited -service d. full-service e. upscale

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: Nordstrom stores typically have 50 percent more salespeople on the floor than similarly sized stores, and the salespeople are renowned for their professional and personalized attention to customers. Nordstrom would be considered a(n) __________. a. exclusive-service retailer b. limited-service retailer c. full-service retailer d. upscale-retailer e. limited-domain retailer

Q: Another name for a drop shipper is a __________. a. desk jobber b. drop runner c. transport vendor d. container transport vendor e. stock jobber