CCHAPTER HAPTER 1111

RETAILING AND

WHOLESALING

CRS Questions & Answers

11-2

Wal-Mart, Toys ‘R Us, and Best Buy are examples of stores that would be classified as:

1. Specialty retailers2. Self-service retailers3. Limited-service retailers4. Full-service retailers

11-3

Wal-Mart, Toys ‘R Us, and Best Buy are examples of stores that would be classified as:

1. Specialty retailers2. Self-service retailers3. Limited-service retailers4. Full-service retailers

Discount and convenience stores are self-service retailers. Customers who shop at these locations perform their own “locate-compare-select” process to save money.

11-4

A store that is open 24 hours a day and offers a limited line of frequently purchased products is called a:

1. Specialty store2. Convenience store3. Superstore4. Department store

11-5

A store that is open 24 hours a day and offers a limited line of frequently purchased products is called a:

1. Specialty store2. Convenience store3. Superstore4. Department store

Convenience stores are typically located near residential areas, open long hours every day of the week, and carry convenience products such as diapers, milk, beer, etc.

11-6

Kroger grocery stores frequently use price promotions on products normally sold at higher prices to encourage customers to visit the store. Which pricing strategy does this represent?1. Vertical pricing 

2. High-low pricing

3. EDLP

4. Low-high pricing

11-7

Kroger grocery stores frequently use price promotions on products normally sold at higher prices to encourage customers to visit the store. Which pricing strategy does this represent?

1. Vertical pricing

2. High-low pricing

3. EDLP

4. Low-high pricing

Retailers using high-low pricing charge higher prices on an everyday basis, coupled with frequent sales and price promotions to increase store traffic, clear out unsold merchandise, or attract customers who will buy other goods at full prices.

11-8

Ace Hardware is a group of independent retailers who set up a central buying organization and conduct joint promotion efforts. Which organizational approach is this?1. Warehouse club

2. Franchise 

3. Retailer cooperative

4. Contract chain

11-9

Ace Hardware is a group of independent retailers who set up a central buying organization and conduct joint promotion efforts. Which organizational approach is this?1. Warehouse club

2. Franchise  

3. Retailer cooperative  

4. Contract chain

A retailer cooperative is a group of independent retailers who set up a central buying organization and conduct joint promotion efforts.

11-10

Abercrombie & Fitch stores include loud music, dark interiors, and large graphics of young people in provocative poses. Which retail marketing mix element does this represent?

1. Service mix

2. Store atmosphere

3. Product assortment

4. Pricing

11-11

Abercrombie & Fitch stores include loud music, dark interiors, and large graphics of young people in provocative poses. Which retail marketing mix element does this represent?

1. Service mix

2. Store atmosphere

3. Product assortment

4. Country range

Through store atmosphere, the retailer wants to create a unique store experience, one that suits the target market and moves customers to buy.

11-12

Many communities are building shopping centers that include upscale stores, dining, and entertainment situated around a conveniently located “town square.” What type of shopping center is this?1. Lifestyle centers

2. Power centers

3. Mini-malls

4. Category killers

11-13

Many communities are building shopping centers that include upscale stores, dining, and entertainment situated around a conveniently located “town square.” What type of shopping center is this?1. Lifestyle centers 

2. Power centers

3. Mini-malls

4. Category killers

Lifestyle centers are smaller malls with upscale stores, convenient locations, and nonretail activities, such as dining and entertainment.

11-14

The ______ concept suggests that many new forms of retailing begin as low-margin, low-price, low-status operations, which take the place of other such retailers who have, over time, added services and moved upscale.1. Retail life cycle 

2. Merchant wholesaling  

3. Scrambled merchandising 

4. Wheel-of-retailing

11-15

The ______ concept suggests that many new forms of retailing begin as low-margin, low-price, low-status operations, which take the place of other such retailers who have, over time, added services and moved upscale.1. Retail life cycle 

2. Merchant wholesaling  

3. Scrambled merchandising 

4. Wheel-of-retailing

This concept explains the initial success and later problems of department stores and supermarkets.

11-16

Wholesalers perform all of the following functions EXCEPT:

1. Selling and promoting

2. Manufacturing

3. Financing

4. Warehousing

11-17

Wholesalers perform all of the following functions EXCEPT:

1. Selling and promoting

2. Manufacturing 

3. Financing

4. Warehousing

Wholesalers perform many functions for manufacturers, such as those listed plus risk bearing, information management, etc., but manufacturing is not one of them.

11-18

Sheri represents several small wineries in the Napa Valley. She has contractual authority to sell the wineries’ entire output but never takes title to or possession the wines. Sheri is a(n):1. Agent 

2. Broker 

3. Merchant wholesaler 

4. Cash-and-carry wholesaler

11-19

Sheri represents several small wineries in the Napa Valley. She has contractual authority to sell the wineries’ entire output but never takes title to or possession the wines. Sheri is a(n):1. Agent 

2. Broker 

3. Merchant wholesaler 

4. Cash-and-carry wholesaler

Specifically, Sheri would most likely be considered a manufacturer’s agent. Contracts with each winery would dictate pricing, order-handling, commission rates, etc.

11-20

Truck wholesalers (truck jobbers) are a type of limited service wholesaler that does NOT:

1. Assume title and risk 

2. Warehouse products or carry inventory 

3. Offer delivery and transportation 

4. Offer credit or financing

11-21

Truck wholesalers (truck jobbers) are a type of limited service wholesaler that does NOT:

1. Assume title and risk 

2. Warehouse products or carry inventory 

3. Offer delivery and transportation

4. Offer credit or financing

Truck wholesalers carry and deliver semi-perishable merchandise—often food-related—that they sell for cash.

11-22

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