Q&A Hero

Q: Williams-Sonoma is a specialty store that caters to customers who want to cook at home. It offers free cooking classes, has frequent demonstrations by cookbook authors, and has employees who are knowledgeable about food preparation. The sales staff helps customers make their selections. Williams-Sonoma is a __________ retailer. a. exclusive-service b. full-service c. upscale-service d. self-service e. limited-service

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: A specialty retail store carries a broad selection of small kitchen appliances. It has an informed staff and will even gift-wrap your purchases free of charge. It also offers a shop for repairs should your appliances need maintenance. This store offers __________ to its customers. a. exclusive-service b. upscale-service c. self-service d. limited-service e. full-service

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: Saks Fifth Avenue is an upscale retailer that offers designer brand women's apparel, fragrances, jewelry, and leather accessories. The retailer relies on better service to sell its products and to retain its customers. Saks Fifth Avenue would be classified as a(n) _________. a. exclusive-service retailer b. limited-service retailer c. full-service retailer d. full-domain retailer e. limited-domain retailer

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: Godiva Chocolatier invites consumers to stop by one of their stores for an unforgettable experience, including delectable chocolates, decorative gift collections, and unrivaled customer care. What type of retail service is Godiva offering? a. full-service b. limited-service c. self- service d. restricted-service e. functional-service

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: Most specialty stores and department stores, which provide many services to their customers, are considered to be __________. a. exclusive-service retailers b. limited-service retailers c. full-service retailers d. full-domain retailers e. upscale-retailers

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: Specialty stores and department stores are frequently categorized by which level of service? a. full-service b. exclusive-service c. minimal-service d. self-service e. limited-service

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: At which level of service would the customer perform the least number of functions? a. automated-service b. minimal-service c. self-service d. limited-service e. full-service

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: Target recently introduced its Target REDcard, where cardholders receive 5% back for each purchase. Target also allows customers to return merchandise within 30 days but still does not offer alteration services. Target offers what level of service to its customers? a. full-service b. self-service c. automated-service d. limited-service e. customized service

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: Loehmann's is an upscale, off-price specialty retailer for name-brand designer fashions. Loehmann's provides consumers with a. full-service. b. limited service. c. self- service. d. restricted service. e. functional service.

Q: A limited-service wholesaler who performs all channel functions, and sells on consignment to retailers, which means they retain the title to the products displayed and bill retailers only for the merchandise sold is a _________. a. truck jobber b. transport vendor c. rack jobber d. cash and carry wholesaler e. drop shipper

Q: Outlets where customers are responsible for most shopping activities, although salespeople are available in some departments, would be classified as __________ outlets. a. limited-service b. exclusive-service c. minimal-service d. self-service e. full-service

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: General merchandise stores such as Walmart, Kmart, and Target are usually considered __________ outlets. a. exclusive-service b. minimal-service c. self-service d. full-service e. limited-service

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: Costco requires customers to perform many shopping functions during the purchasing process and all nonessential customer services have been eliminated. What level of service does Costco offer? a. limited-service b. full-service c. customized-service d. self-service e. restricted-service

Q: The four major types of limited-service merchant wholesalers are drop shippers, rack jobbers, cash and carry wholesalers, and __________. a. machine vendors b. credit line wholesalers c. transport vendors d. truck jobbers e. container transport vendors

Q: A number of U.S.-based retail chains have begun using lines and terminals that do not use clerks. This is an example of what level of retail service? a. full-service b. self-service c. limited-service d. customized-service e. functional-service

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: Off-price retailers, warehouse clubs, and grocery stores that require customers to bag their groceries provide what level of retail service? a. full-service b. limited-service c. customized-service d. self-service e. automated-service

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: The level of service that requires that the customers perform many functions during the purchase process is __________. a. full-service b. limited-service c. self-service d. customized-service e. automated-service

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: The three commonly used terms to describe levels of service are a. self-service, limited-service, and full-service. b. self-service, sales-service, and customer-service c. self-service, automated service, and online-service. d. limited-service, full-service, and automated-service. e. wholesaler-service, retailer-service, and customer-service.

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: By selling franchises, an organization __________ the cost of expansion and __________ its control compared to owning its own retail outlets. a. increases; increases b. increases; reduces c. reduces; increases d. increases; retains about the same e. reduces; reduces

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: Organizations that decide to franchise (franchisors) have __________ expansion costs accompanied by __________ control, compared to owning their own retail outlets. a. greater; greater b. reduced; reduced c. greater; reduced d. reduced; greater e. greater; about the same

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: Franchising is attractive for the franchisee because a. it gives the franchisee complete control over the delivery and presentation of merchandise. b. the license fees paid to the franchisor are the only fees the franchisee pays. c. it relieves the franchisee from any company or product liabilities. d. it offers the franchisee the opportunity to enter into a well-known, established business where managerial advice is provided. e. the franchisee is completely his or her own boss.

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: Subway is one of the fastest growing __________. a. product-distribution franchises b. corporate chains c. business-format franchises d. independently owned retailers e. horizontal marketing systems

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: Subway is a popular __________. a. business-format franchise b. product-distribution franchise c. business franchise venture d. manufacturing franchise e. general service franchise

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: As a business format franchisor, McDonald's provides step-by-step procedures for most aspects of the business and a. provides an accounting system to pay the franchisee bills promptly. b. shops for the best food values. c. maintains the property. d. guidelines for the most likely decisions a franchisee will face. e. disciplines dishonest employees.

Q: The wholesalers most prevalent in the hardware, drug, and clothing industries would be _________. a. specialty wholesaler b. full-line wholesaler c. cash and carry wholesaler d. limited-line wholesaler e. universal wholesaler

Q: McDonald's, Radio Shack, and Subway are all _________. a. product-distribution franchises b. business franchise venture c. business-format franchises d. manufacturing franchises e. general service franchise

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: A franchise where the franchisor provides step-by-step procedures for most aspects of the business is known as a a. business-format franchise. b. product-distribution franchise. c. business franchise venture. d. manufacturing franchise. e. general service franchise.

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: Ford and Coca-Cola represent which type of franchise? a. business-format franchise b. manufacturing franchise c. general service franchise d. product-distribution franchise e. business franchise venture

Q: Which type of wholesaler carries a broad assortment of merchandise and performs all channel functions? a. drop shipper b. limited-line wholesaler c. specialty merchandise wholesaler d. rack jobber e. general merchandise wholesaler

Q: A franchise where the franchiser provides a few general guidelines to the franchisee is known as a a. business-format franchise. b. manufacturing franchise. c. product-distribution franchise. d. general service franchise. e. business franchise venture.

Q: Merchant wholesalers are independently owned firms that __________ the merchandise they handle. a. take title to b. broker c. act as agents for d. break bulk and repackage e. do not deliver

Q: There are two general types of franchises: business-format franchises and __________ franchises. a. product-distribution b. general service c. manufacturing d. distribution e. venture

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: There are two general types of franchises: a. product-format franchises and distribution franchises. b. business-format franchises and manufacturing franchises. c. business-format franchises and general service franchises. d. business-format franchises and venture franchises. e. business-format franchises and product-distribution franchises.

Q: A department store recently replaced its fabric-covered chairs with oversized leather couches. This was most likely done to a. reduce the need to constantly reupholster. b. create a more natural environment. c. create a more masculine ambiance for male shoppers. d. make mothers shopping with small children less nervous. e. encourage customers to linger longer.

Q: As a franchisor, Radio Shack would assist a franchisee in selecting the store location, setting up the store, advertising, and __________. a. developing the marketing program b. training personnel c. offering performance bonuses d. ordering and restocking inventory e. paying insurance and legal fees

Q: Which of the following statements regarding managing the customer experience is most accurate? a. As more women enter the upper levels of industry, retailers are paying less attention to men and their shopping behavior. b. Men were typically viewed as infrequent "mission shoppers" but they are changing their behaviors. c. Men will shop for electronics but leave the majority of their clothing shopping to their wives. d. Making the retail environment a sparse one appeals to male shoppers who value efficiency. e. Men prefer to shop in a social environment so they avoid shopping alone at all costs.

Q: What type of contractual system describes a situation where assistance in selecting the location, setting up the store or facility, advertising, and training personnel is provided? a. administered system b. conglomerate system c. franchise system d. vertical integrated system e. retail-sponsored cooperative

Q: Retailers that integrate and leverage their stores, catalogs, and websites have seen a. a sizeable increase in yearly sales from individual customers. b. a small increase in yearly sales from aggregate target market segments. c. no difference in yearly sales from individual customers. d. a decrease in yearly sales from individual customers. e. a large decrease in yearly sales from individual customers.

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: The complementary role of different communication and delivery channels is referred to as a. the cumulative effect. b. the primary effect. c. the cross-over effect. d. the complementary effect. e. the influence effect.

Q: Franchising is a type of __________. a. administered system b. contractual system c. vertically integrated chain d. retail-sponsored cooperative e. corporate system

Q: Retailers like Williams-Sonoma that sell products through retail stores, catalogs, and online are examples of __________. a. intertype competitors b. multichannel retailers c. vertically-integrated retailers d. scrambled merchandisers e. dual distributors

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: While it is possible for a multichannel retailer to somewhat cannibalize its catalog business with its online retailing, the positive tradeoff is a. there is greater product awareness. b. online retailing is a greater relationship-building medium. c. an online transaction costs about half as much to process as a catalog order. d. consumers make more impulse buys. e. online retailing can provide the consumer with a more tangible decision-making tool.

Q: Neighborhood grocers that ban together with several other independent grocers who all agree to buy their goods directly from food manufacturers are a form of a. retailer-sponsored cooperative. b. consortium system. c. administrative system. d. conglomerate system. e. collaborate chain.

Q: Figure 1. Retailers that utilize and integrate a combination of traditional store formats and nonstore formats are referred to as __________. a. multichannel retailers b. scrambled merchandisers c. mixed-brand retailers d. dual distribution retailers e. mixed-channel retailers

Q: One way neighborhood grocers can take advantage of volume discounts commonly available to 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: Figure 1. Multichannel retailers are retailers that a. sell different products through entirely different channels. b. sell through different channels under different brand names. c. utilize strategic and tactical wholesalers. d. utilize and integrate a combination of traditional store formats and nonstore formats. e. combine two channels for their offerings: one for products and the other for services.

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: Figure 1. According to Figure 1. above, "D" represents which stage of the retail life cycle? a. introduction b. early growth c. accelerated development d. maturity e. decline

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: Figure 1. According to Figure 1. above, "C" represents which stage of the retail life cycle? a. introduction b. early growth c. accelerated development d. maturity e. decline

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: Figure 1. According to Figure 1. above, "B" represents which stage of the retail life cycle? a. introduction b. early growth c. accelerated development d. maturity e. decline

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: Figure 1. According to Figure 1. above, "A" represents which stage of the retail life cycle? a. introduction b. early growth c. accelerated development d. maturity e. decline

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: Figure 1. According to Figure 1. above, market share reaches its highest level during which stage of the retail life cycle? a. none b. "A" c. "B" d. "C" e. "D"