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1) Which of the following is NOT a typical supply chain member? A) reseller B) supplier C) wholesaler D) retailer's creditor E) government agency

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E Diff: 2 Page Ref: 310 Skill: Concept

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2) ________ the manufacturer or service provider is the set of firms that supply the raw materials, components, parts, information, finances, and expertise needed to create a product or service. A) Downstream from B) Upstream from C) Separated from D) Congruous to E) Parallel with

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B Diff: 2 Page Ref: 310 Skill: Concept

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3) Another term for the supply chain that suggests a sense-and-respond view of the market is ________. A) supply and demand chain B) demand chain C) channel of distribution D) distribution channel E) physical distribution

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B Diff: 2 Page Ref: 311 Skill: Concept

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4) When suppliers, distributors, and customers partner with each other to improve the performance of the entire system, they are participating in a ________. A) value delivery network B) channel of distribution C) supply chain D) demand chain E) supply and demand chain

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A Diff: 1 Page Ref: 311 Skill: Concept

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5) Most producers today sell their goods to ________. A) final users B) final users and marketing members C) intermediaries D) the government at various levels E) competitors

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C Diff: 2 Page Ref: 311 Skill: Concept

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6) A company's channel decisions directly affect every ________. A) channel member B) marketing decision C) customer's choices D) employee in the channel E) competitor's actions

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B Diff: 2 Page Ref: 311 Skill: Concept

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7) Distribution channel decisions often involve ________ with other firms, particularly those that involve contracts or relationships with channel partners. A) short-term commitments B) long-term commitments C) major problems D) financial losses E) disagreements

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B Diff: 3 Page Ref: 312 Skill: Concept

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8) Joe Blanco, like other producers, has discovered that his intermediaries usually offer his firm more than it can achieve on its own. Which of the following is most likely an advantage that Joe creates by working with intermediaries? A) financial support B) fast service C) scale of operation D) working relationships with foreign distributors E) strategy development

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C Diff: 2 Page Ref: 312 Skill: Concept

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9) From the economic system's point of view, the role of marketing intermediaries is to transform the assortment of products made by producers into the assortment of products wanted by ________. A) channel members B) distributors C) consumers D) manufacturers E) marketers

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C Diff: 2 Page Ref: 312 Skill: Concept

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10) Producers benefit from using intermediaries because they ________. A) offer greater efficiency in making goods available to target markets B) bring a fresh point of view to strategy development C) eliminate risk D) are generally backlogged with orders E) refuse to store products for longer than a few days

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A Diff: 2 Page Ref: 312 Skill: Concept

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11) Intermediaries play an important role in matching ________. A) dealer with customer B) supply and demand C) strategy and product D) manufacturer to product E) information and promotion

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B Diff: 2 Page Ref: 313 Skill: Concept

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12) Channel members add value by bridging the major gaps of ________ that separate goods and services from those who would use them. A) time, place, and form B) place, possession, and form C) time, place, and possession D) place, time, and need E) place, need, and distribution

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C Diff: 2 Page Ref: 313 Skill: Concept

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13) Which of the following is NOT a key function that intermediaries play in completing transactions? A) promotion B) information C) negotiation D) financing E) matching

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D Diff: 2 Page Ref: 313 Skill: Concept

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14) Which of the following is NOT a key function that intermediaries play in helping to fulfill a completed transaction? A) physical distribution B) promotion C) financing D) risk taking E) storing goods

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B Diff: 3 Page Ref: 313 Skill: Concept

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15) In marketing terms, we say that the number of intermediary levels indicates the ________ of a channel. A) depth B) complexity C) involvement D) length E) width

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D Diff: 2 Page Ref: 313 Skill: Concept

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16) To a producer of goods, a greater number of channel levels means ________ and greater channel complexity. A) less distance between producer and end consumer B) less control C) more potential ideas D) higher taxes E) fewer channel members

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B Diff: 2 Page Ref: 313 Skill: Concept

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17) All of the institutions in a channel are connected by flows, including physical flow, flow of ownership, payment flow, information flow, and ________ flow. A) promotion B) acquisition C) customer D) return product E) by-product

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A Diff: 3 Page Ref: 313 Skill: Concept AACSB: Communication

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18) A distribution channel is more than a collection of firms connected by various flows: it is a(n) ________ in which people and companies interact to accomplish individual, company, and channel goals. A) added value chain B) complex behavioral system C) corporate marketing system D) vertical marketing system E) multichannel system

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B Diff: 2 Page Ref: 314 Skill: Concept

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19) One advantage of using a channel of distribution over selling direct to consumers is that each channel member plays a ________ in the channel. A) time-saving part B) specialized role C) decisional role D) informational role E) disciplinary role

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B Diff: 2 Page Ref: 314 Skill: Concept

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20) ________ conflict, which occurs between different levels of the same channel, is more common than ________ conflict, which occurs among firms at the same level of the channel. A) Horizontal: vertical B) Vertical: horizontal C) Contractual: corporate D) Corporate: franchise E) Wholesaler: retailer

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B Diff: 2 Page Ref: 317 Skill: Concept

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21) Historically, ________ have lacked the leadership to assign member roles and manage conflict. A) corporate vertical marketing systems B) contractual vertical marketing systems C) conventional distribution channels D) administered vertical marketing systems E) conventional vertical marketing systems

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C Diff: 2 Page Ref: 315 Skill: Concept AACSB: Communication

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22) A conventional distribution channel consists of one or more ________ producers, wholesalers, and retailers. A) product-related B) independent C) contract D) franchised E) hybrid

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B Diff: 2 Page Ref: 315 Skill: Concept

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23) A channel consisting of one or more independent producers, wholesalers, or retailers each seeking to maximize its own profitseven at the expense of profits for the channel as a wholeis a(n) ________. A) vertical marketing system B) conventional distribution channel C) independent channel allocation D) corporate VMS E) administered vertical marketing system

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B Diff: 2 Page Ref: 315 Skill: Concept

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24) An advantage of a vertical marketing system (VMS) over a conventional distribution channel is that it acts as a ________ system. A) unified B) democratic C) socially responsible D) customer-driven E) task-driven

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A Diff: 2 Page Ref: 316 Skill: Concept

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25) A corporate VMS has the advantage of controlling the entire distribution chain under ________. A) a profit-maximizing strategic plan B) single ownership C) mass distribution D) a few intermediaries E) franchise agreements

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B Diff: 2 Page Ref: 316

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26) Which of the following are the three major types of vertical marketing systems? A) corporate, contractual, and chain B) contractual, corporate, and independent C) corporate, contractual, and administered D) administered, independent, and franchised E) corporate, contractual, and task

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C Diff: 2 Page Ref: 316 Skill: Concept

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27) A distinguishing feature of a contractual VMS is that coordination and conflict management among the independent members of the channel are attained through ________. A) agents and brokers B) working partnerships C) limited liability incorporation D) contractual agreements E) natural competitive forces

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D Diff: 1 Page Ref: 316 Skill: Concept AACSB: Communication

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28) The most common type of contractual VMS agreement in business is the ________. A) franchise organization B) multichannel marketing system C) conventional marketing channel D) corporate VMS E) administered VMS

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A Diff: 2 Page Ref: 316 Skill: Concept

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29) Leadership in which type of marketing system is assumed not through common ownership or contractual ties, but through the size and power of one or a few dominant channel members? A) horizontal marketing system B) administered VMS C) corporate VMS D) conventional marketing channel E) multichannel distribution system

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B Diff: 1 Page Ref: 318 Skill: Concept

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30) In a ________, two or more companies at one level join together to follow a new marketing opportunity. A) franchise B) corporate VMS C) horizontal marketing system D) multichannel distribution system E) conventional distribution channel

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C Diff: 1 Page Ref: 318 Skill: Concept

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31) Hybrid marketing systems are also called ________. A) dual distribution systems B) multichannel distribution systems C) administered franchises D) horizontal multichannel systems E) contractual marketing systems

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B Diff: 2 Page Ref: 319 Skill: Concept

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32) As marketing manager for Globe Imports and Exports, you want to start reaping the benefits of a multichannel distribution system. You will likely enjoy all of the following EXCEPT which one? A) expanded sales B) expanded market coverage C) selling at a higher gross margin D) opportunities to tailor products and services to the needs of diverse segments E) A and C

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C Diff: 3 Page Ref: 320 Skill: Concept

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33) Which of the following is the most likely disadvantage of adding new channels in a multichannel distribution system? A) decreasing understanding of complex markets B) decreasing control over the system C) fewer opportunities for franchising D) increasing disintermediation E) reducing conflict among channel members

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B Diff: 2 Page Ref: 320 Skill: Concept

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34) Which of the following is a major disadvantage of a multichannel system? A) channel conflict B) less net profit C) fewer domestic sales D) inefficiencies E) declining employee morale

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A Diff: 2 Page Ref: 320 Skill: Concept

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35) Due in a large part to advances in technology, ________ is a major trend whereby product and service producers are bypassing intermediaries and going directly to final buyers, or radically new types of channel intermediaries are emerging to displace traditional ones. A) the vertical marketing system B) the corporate marketing system C) disintermediation D) the corporate merger E) the hostile takeover

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C Diff: 1 Page Ref: 320 Skill: Concept AACSB: Use of IT

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36) In many industries, traditional intermediaries are dropping by the wayside because of changes in ________ and the growth of ________ marketing. A) federal laws: business-to-business B) state and local laws: target C) franchise structure: independent D) technology: direct and online E) channel design: retail

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D Diff: 2 Page Ref: 320 Skill: Concept AACSB: Use of IT

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37) Marketing channel design calls for analyzing consumer needs, setting channel objectives, ________, and evaluating them. A) establishing budget guidelines B) identifying major channel alternatives C) seeking approval from regulators D) seeking legal recommendations E) measuring objectives

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B Diff: 2 Page Ref: 322 Skill: Concept

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38) Which of the following should be the first step in designing a marketing channel? A) identifying channel objectives B) identifying what consumers want from the channel C) analyzing channel alternatives D) evaluating intermediaries E) exploring international opportunities

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B Diff: 2 Page Ref: 322 Skill: Concept

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39) To increase a channel's service level, the channel must provide a greater assortment of products, more add-on services, and ________. A) stable prices B) less control C) faster delivery D) better customer communication E) follow-up

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C Diff: 2 Page Ref: 322 Skill: Concept

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40) Companies should state their channel objectives in terms of targeted levels of ________. A) advertising B) efficiency C) customer service D) conflict reduction E) profitability

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C Diff: 2 Page Ref: 322 Skill: Concept AACSB: Communication

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41) Which type of product might require a more direct marketing channel to avoid delays and too much handling? A) lower-priced products B) perishable products C) high-priced products D) products in their maturity stage E) products in their decline stage

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B Diff: 2 Page Ref: 322 Skill: Concept

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42) When a company is identifying its major channel alternatives, it should consider its choices in terms of types, number, and ________ of intermediaries. A) size B) power C) responsibilities D) capacity E) none of the above

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C Diff: 2 Page Ref: 323 Skill: Concept

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43) When a company determines the number of channel members to use at each level, three strategies are available: intensive, exclusive, and ________ distribution. A) multichannel B) selective C) international D) direct E) extensive

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B Diff: 1 Page Ref: 323 Skill: Concept

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44) Sometimes a producer chooses only a few dealers in a territory to distribute its products or services. Generally these dealers are given a right to ________ distribution. A) exclusive B) selected C) intensive D) administered E) corporate

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A Diff: 1 Page Ref: 323 Skill: Concept

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45) Which type of distribution is used when the producer wants more than one, but fewer than all, of the intermediaries who are willing to carry its products? A) exclusive B) selective C) intensive D) dual E) multichannel

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B Diff: 2 Page Ref: 324 Skill: Concept

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46) When establishing the responsibilities of channel members, the producer establishes a list price, gives a fair set of discounts for intermediaries, and defines each channel member's ________. A) sales volume B) territory C) legal rights D) customers E) mission

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B Diff: 2 Page Ref: 324 Skill: Concept

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47) Channel members should be evaluated using all of the following criteria EXCEPT which one? A) economic factors B) control issues C) adaptability criteria D) channel leadership E) none of the above

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D Diff: 2 Page Ref: 324 Skill: Concept

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48) When a company compares the likely sales, costs, and profitability of different channel alternatives, it is using ________ criteria to evaluate its channel options. A) selective B) adaptability C) economic D) control E) distribution

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C Diff: 2 Page Ref: 324 Skill: Concept

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49) It is common for international marketers to ________ their channel strategies for each country in which they do business. A) extend B) adapt C) restrict D) seek approval for E) eliminate

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B Diff: 1 Page Ref: 324 Skill: Concept AACSB: Multicultural and Diversity

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50) China and India each contain more than one billion people. However, companies can access only a small percentage of these potential markets due to ________. A) inadequate distribution systems B) indifference toward Western products C) insurmountable language barriers D) high regional taxes E) the religious caste system

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A Diff: 3 Page Ref: 324-325 Skill: Concept AACSB: Multicultural and Diversity

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51) Marketing channel management calls for selecting, managing, ________, and evaluating channel members over time. A) reducing conflict B) reducing waste C) motivating D) terminating E) reinstating

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C Diff: 2 Page Ref: 325 Skill: Concept

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52) A company should think of its intermediaries as both its ________ and ________. A) competitors: partners B) customers: partners C) competitors: marketers D) customers: employees E) customers: competitors

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B Diff: 2 Page Ref: 326 Skill: Concept

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53) Most companies practice strong PRM to forge long-term relationships with channel members. What does PRM stand for? A) primary relationship management B) potential relationship management C) perennial relationship management D) partner relationship management E) personnel roster maintenance

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D Diff: 1 Page Ref: 326 Skill: Concept AACSB: Communication

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54) Sometimes a seller requires its dealers to abstain from handling competitors' products in an arrangement called ________. A) exclusive distribution B) exclusive dealing C) selective distribution D) exclusive pricing E) disintermediation

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B Diff: 2 Page Ref: 327 Skill: Concept AACSB: Ethical Reasoning

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55) Exclusive dealing is legal as long as it does not ________ or tend to create a monopoly, and as long as both parties enter into the agreement ________. A) substantially lessen competition: coercively B) restrict trade: for a cause C) substantially lessen competition: voluntarily D) interfere with competitors: forcefully E) create a smaller market: permanently

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C Diff: 3 Page Ref: 327 Skill: Concept AACSB: Ethical Reasoning

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56) Exclusive territorial agreements are normal in ________. A) vertical marketing systems B) franchises C) integrated marketing systems D) horizontal marketing systems E) supply chain management

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B Diff: 2 Page Ref: 327 Skill: Concept AACSB: Ethical Reasoning

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57) If the producer of a strong brand agrees to sell its brand to a dealer only if the dealer will take some or all of the rest of the line, the result is ________. A) exclusive distribution B) exclusive dealing C) always illegal D) a tying agreement E) disintermediation

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D Diff: 2 Page Ref: 327 Skill: Concept AACSB: Ethical Reasoning

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58) Marketing logistics involves getting the right product to the right customer in the right place at the right time. Which one of the following is NOT included in this process? A) planning the physical flow of goods and services B) implementing the plan for the flow of goods and services C) controlling the physical flow of goods, services, and information D) gathering customer's ideas for new products E) planning the flow of logistics information to meet customer requirements at a profit

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D Diff: 1 Page Ref: 328 Skill: Concept

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59) Marketing logistics involves which of the following distribution flows? A) outbound and inbound only B) outbound, inbound, and reverse only C) outbound and reverse only D) inbound and reverse only E) outbound only

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B Diff: 2 Page Ref: 328 Skill: Concept

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60) Which of the following is NOT an area of responsibility for a logistics manager? A) information systems B) warehousing C) marketing D) inventory E) purchasing

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C Diff: 2 Page Ref: 328 Skill: Concept

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61) Which of the following innovations has created opportunities for significant gains in distribution efficiency? A) tying agreements B) Web-based logistics systems C) exclusive territorial agreements D) conventional distribution systems E) storage warehouses

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B Diff: 2 Page Ref: 329 Skill: Concept AACSB: Use of IT

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62) The goal of marketing logistics should be to provide a ________ level of customer service at the least cost. A) maximum B) targeted C) moderate D) minimum E) stable

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B Diff: 2 Page Ref: 329 Skill: Concept

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63) The difference between distribution centers and storage warehouses is that distribution centers are designed to ________. A) store goods for longer periods B) hold larger volumes C) move goods rather than just store them D) primarily be owned by the manufacturer E) be automated

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C Diff: 2 Page Ref: 331 Skill: Concept

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64) To reduce inventory management costs, many companies use a system called ________, which involves carrying only small inventories of parts or merchandise, often only enough for a few days of operation. A) reduction-inventory management B) just-in-time logistics C) limited inventory logistics D) supply chain management E) economic order quantity

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B Diff: 2 Page Ref: 332 Skill: Concept AACSB: Use of IT

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65) Through the use of ________, or "smart tag" technology, a company is able to locate exactly where a product is within the supply chain. A) RFID B) PRM C) VMS D) IT E) 3PL

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A Diff: 2 Page Ref: 332 Skill: Concept AACSB: Use of IT

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66) Which of the following transportation modes is used for digital products? A) trucks B) rail C) the Internet D) air E) ship

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C Diff: 1 Page Ref: 333 Skill: Concept AACSB: Use of IT

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67) In choosing a transportation mode for a product, shippers must balance the considerations of speed, dependability, cost, and ________. A) weight B) customer choice C) availability D) distance E) company reputation

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C Diff: 3 Page Ref: 334 Skill: Concept

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68) Which of the following lists of intermodal transportation combinations means rail and trucks, water and trucks, and water and rail? A) fishyback: airtruck: and trainship B) piggyback: airtruck: and fishyback C) trainship: fishyback: and piggyback D) piggyback: fishyback: and trainship E) piggyback, fishyback, and birdyback

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D Diff: 2 Page Ref: 334 Skill: Concept

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69) Companies manage their supply chains through ________. A) skilled operators B) information C) the Internet D) transportation modes E) competitors

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B Diff: 2 Page Ref: 334 Skill: Concept AACSB: Communication

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70) Using ________, retailers can share real-time data on sales and current inventory levels with suppliers who take responsibility for ordering and delivering products to retailers, thereby saving time and money. A) dual distribution modes B) continuous inventory replenishment systems C) the Internet D) their own trucking and distribution systems E) integrated distribution

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B Diff: 2 Page Ref: 334 Skill: Concept AACSB: Use of IT

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71) Julie Newmar recognizes that her company needs to provide better customer service and trim distribution costs through teamwork, both inside the company and among all the marketing channel organizations. Julie should begin the practice of ________. A) integrated logistics management B) supply chain management C) customer relationship management D) horizontal marketing system management E) disintermediation

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A Diff: 2 Page Ref: 334 Skill: Concept AACSB: Communication

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72) What is the goal of integrated supply chain management? A) to reduce costs B) to increase services with minimal cost through teamwork C) to harmonize all of the company's logistics decisions D) to reduce conflict and increase cooperation among channel members E) all of the above

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C Diff: 3 Page Ref: 335 Skill: Concept AACSB: Communication

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73) Smart companies coordinate their logistics strategies and forge strong partnerships with suppliers and customers to improve customer service and reduce channel costs through ________. A) cross-functional teams B) cross-company teams C) partnering D) cross-functional, cross-company teams E) segregated departmentalization

answer

D Diff: 3 Page Ref: 335 Skill: Concept AACSB: Communication

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74) The success of each channel member depends on the performance of ________. A) key channel members B) the entire supply chain C) the channel captain D) the manufacturer E) the wholesaler

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B Diff: 2 Page Ref: 335 Skill: Concept

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75) Today, a growing number of firms now outsource some or all of their logistics to ________. A) cross-functional teams B) disintermediaries C) channel members D) third-party logistics providers E) competitors

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D Diff: 1 Page Ref: 338 Skill: Concept

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1) ________ includes all the activities involved in selling products or services directly to final consumers for their personal, nonbusiness use. A) Franchising B) Retailing C) Brokering D) Wholesaling E) Disintermediation

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B Diff: 1 Page Ref: 344 Skill: Concept

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2) In recent years, ________ has(have) been growing fast. This includes selling to final consumers through direct mail, catalogs, telephone, and the Internet. A) specialty stores B) shopping centers C) superstores D) nonstore retailing E) e-commerce

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D Diff: 1 Page Ref: 345 Skill: Concept AACSB: Use of IT

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3) ________ is the basis of all discount operations and is typically used by sellers of convenience goods. Retailers offering this level of service require customers to perform their own "locate-compare-select" process in order to save money. A) Limited-service B) Self-service C) Full-service D) Specialty-service E) Wholesale

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B Diff: 2 Page Ref: 345 Skill: Concept

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4) ________, such as Sears, provide more sales assistance because they carry more shopping goods about which customers need information. Their increased operating costs result in higher prices. A) Self-service retailers B) Full-service retailers C) Off-price retailers D) Limited-service retailers E) Specialty-service retailers

answer

D Diff: 2 Page Ref: 345 Skill: Concept

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5) Which type of stores usually carry more specialty goods for which customers like to be "waited on" and have much higher operating costs, which are passed along to the customer? A) self-service stores B) category killer stores C) full-service stores D) independent stores E) off-price stores

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C Diff: 2 Page Ref: 346 Skill: Concept

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6) Which of the following retailers likely put the most emphasis on salespeople assisting customers? A) limited-service retailers B) full-service retailers C) self-service retailers D) megaretailers E) off-price retailers

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B Diff: 2 Page Ref: 346 Skill: Concept

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7) ________ are flourishing due to increased use of market segmentation and market targeting. A) Chain stores B) Specialty stores C) Superstores D) Discount stores E) Off-price stores

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B Diff: 2 Page Ref: 346 Skill: Concept

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8) Specialty stores carry ________ with ________ within them. A) convenience items: mostly staples B) narrow product lines: deep assortments C) narrow product lines: shallow assortments D) wide product lines: shallow assortments E) wide product lines: deep assortments

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B Diff: 2 Page Ref: 346 Skill: Concept

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9) Which type of store carries a wide variety of product lines and differentiates itself through service, but has been squeezed in recent years between more focused and flexible specialty stores on the one hand and more efficient, lower-priced discounters on the other? A) chain B) department C) factory outlet D) merchant wholesaler E) independents

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B Diff: 2 Page Ref: 346-347 Skill: Concept

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10) ________ are facing slow sales growth because of slower population growth, increased competition, and the rapid growth of out-of-home eating. A) Convenience stores B) Department stores C) Chain stores D) Supermarkets E) Hypermarkets

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D Diff: 2 Page Ref: 347 Skill: Concept

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11) Which type of retailer tends to be the most frequently shopped? A) department stores B) convenience stores C) supermarkets D) superstores E) off-price retailers

answer

C Diff: 2 Page Ref: 347 Skill: Concept

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12) Which type of small store carries a limited line of high-turnover convenience goods and makes most of its revenues from cigarette, beverage, and gasoline sales? A) convenience B) department C) chain D) supermarket E) hypermarket

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A Diff: 1 Page Ref: 347 Skill: Concept

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13) Which type of store is much larger than regular supermarkets and offers a large assortment of routinely purchased food products, nonfood items, and services? A) category killer B) chain C) factory outlet D) superstore E) off-price

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D Diff: 1 Page Ref: 348 Skill: Concept

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14) Which type of store carries a deep assortment, has knowledgeable staff, and might actually be viewed as a giant specialty store? A) category killer B) chain C) factory outlet D) shopping center E) independent

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A Diff: 1 Page Ref: 348 Skill: Concept

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15) Service retailers include all of the following EXCEPT ________. A) hotels and motels B) airlines C) movie theaters D) bowling alleys E) convenience stores

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E Diff: 2 Page Ref: 348 Skill: Concept

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16) ________ retailers in the United States are growing faster than product retailers. A) Discount B) Merchant C) Service D) Specialty E) Off-price

answer

C Diff: 2 Page Ref: 348 Skill: Concept

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17) ________ sell standard merchandise at lower prices by accepting lower margins and selling higher volume. A) Merchant wholesalers B) Discount stores C) Full-service retailers D) Limited-service retailers E) Factory outlets

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B Diff: 1 Page Ref: 348 Skill: Concept

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18) Early ________ cut expenses by offering few services and operating in warehouse-like facilities in low-rent, heavily traveled districts. A) chain stores B) department stores C) discount stores D) shopping centers E) full-service retailers

answer

C Diff: 2 Page Ref: 348 Skill: Concept

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19) ________ have filled the ultralow-priced, high-volume gap by buying at less than regular wholesale prices and charging consumers less than retail. A) Off-price retailers B) Discount stores C) Convenience stores D) Chain store E) Limited-service retailers

answer

A Diff: 1 Page Ref: 350 Skill: Concept

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20) Which of the following is NOT one of the main types of off-price retailers? A) independents B) factory outlets C) warehouse clubs D) category killers E) membership warehouses

answer

D Diff: 2 Page Ref: 350-351 Skill: Concept

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21) ________, which buy at less than regular wholesale prices and charge consumers less than retail, are owned and run by entrepreneurs or are divisions of larger retail corporations. A) Discount stores B) Warehouse clubs C) Superstores D) Independent off-price retailers E) Full-service retailers

answer

D Diff: 1 Page Ref: 350 Skill: Concept

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22) ________ are sometimes several stores grouped together. These stores offer prices as low as 50 percent below retail on a wide range of mostly surplus, discounted, or irregular items. A) Category killers B) Factory outlets C) Specialty stores D) Superstores E) Power centers

answer

B Diff: 1 Page Ref: 350 Skill: Concept

question

23) ________ operate in warehouse-like facilities, sell a limited selection of items, and offer few frills. Customers pay annual membership fees and are able to purchase goods at deep discounts. A) Warehouse clubs B) Independent off-price retailers C) Factory outlets D) Discount stores E) Superstores

answer

A Diff: 1 Page Ref: 351 Skill: Concept

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24) ________ are two or more outlets that are commonly owned and controlled. A) Chain stores B) Convenience stores C) Off-price retailers D) Independent off-price retailers E) Power centers

answer

A Diff: 1 Page Ref: 351 Skill: Concept

question

25) As a result of the great success of corporate chains, many independent stores chose to band together in one of two forms of contractual associations: a voluntary chain or a(n) ________. A) factory outlet B) retailer cooperative C) independent off-price retailer D) warehouse club E) convenience cooperative

answer

B Diff: 2 Page Ref: 352 Skill: Concept

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26) The main difference between ________ organizations and other contractual systems is that these systems are normally based on some unique product or service. A) voluntary chain B) retailer cooperative C) franchise D) independent E) warehouse-club

answer

C Diff: 2 Page Ref: 352 Skill: Concept

question

27) Retail assortments are looking more and more alike because ________. A) customers today are more focused on service differentiation B) national-brand manufacturers have placed their products almost everywhere C) market segmentation has proven ineffective D) stores are clustered together to increase their customer pulling power E) more stores are practicing "experiential retailing"

answer

B Diff: 2 Page Ref: 352 Skill: Concept

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28) Service differentiation among retailers has ________. A) increased B) decreased C) stayed the same D) been eliminated E) become unnecessary

answer

B Diff: 2 Page Ref: 353 Skill: Concept

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29) Until retailers ________ and ________ their markets, they cannot make consistent decisions about product assortment, services, pricing, advertising, store décor, or any of the other decisions that must support their positions. A) compete with: position B) target: compete with C) define: profile D) limit: serve E) divest: eliminate

answer

C Diff: 2 Page Ref: 353 Skill: Concept

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30) A retailer may fail because it tries to provide "something for everyone" and ends up satisfying no market well. Successful retailers ________ their target markets well and position themselves strongly. A) increase B) franchise C) wholesale D) define E) position

answer

D Diff: 2 Page Ref: 353 Skill: Concept

question

31) A retailer's ________ should differentiate the retailer while matching target shoppers' expectations. One strategy is to offer merchandise that no other competitor carries. A) agent B) broker C) product assortment D) environment E) distribution strategy

answer

C Diff: 2 Page Ref: 354 Skill: Concept

question

32) Costco's surprise offerings of seconds, overstocks, and closeouts-occasionally including diamonds-is an example of how a retailer can differentiate itself through ________. A) product assortment B) services mix C) experiential retailing D) store atmosphere E) high-low pricing

answer

A Diff: 2 Page Ref: 354 Skill: Concept

question

33) A retailer that uses ________ creates realistic environments that encourage customers to try products before they buy them. A) product positioning B) experiential retailing C) atmosphere control D) store differentiation and positioning E) hypermarketing

answer

B Diff: 2 Page Ref: 354 Skill: Concept

question

34) While all retailers would like to achieve ________ while charging ________, the two seldom happen together. A) low volume: high markups B) low volume: low markups C) high volume: high markups D) high volume: low markups E) high volume: cut-rate markups

answer

C Diff: 2 Page Ref: 357 Skill: Concept

question

35) In-store demonstrations, displays, contests, and visiting celebrities are all examples of ________. A) direct marketing B) sales promotions C) agent promotions D) advertising E) public relations

answer

B Diff: 2 Page Ref: 357 Skill: Concept AACSB: Communication

question

36) Press conferences and speeches, store openings, special events, newsletters, magazines, and public service activities are examples of ways retailers use ________. A) public relations B) sales promotions C) personal selling D) the wheel-of-retailing concept E) retail convergence

answer

A Diff: 2 Page Ref: 357 Skill: Concept AACSB: Communication

question

37) Of the following, what would most retailers consider to be the most important factor in retailing success? A) fair prices B) good atmosphere C) helpful employees D) location E) efficient distribution

answer

D Diff: 2 Page Ref: 358 Skill: Concept

question

38) Why do stores cluster together? A) to decrease competition B) to increase their customer pulling power C) to take advantage of tax breaks D) to create retailer cooperatives E) to standardize the service mix

answer

B Diff: 2 Page Ref: 358 Skill: Concept

question

39) ________ were the main form of retail cluster until the 1950s. A) Department stores B) Discount stores C) Independent off-price retailers D) Central business districts E) Independent stores

answer

D Diff: 2 Page Ref: 358 Skill: Concept

question

40) A ________ is a group of retail businesses planned, developed, owned, and managed as a unit. A) merchant wholesaler B) franchise C) shopping center D) supermarket E) hypermarket

answer

C Diff: 1 Page Ref: 358 Skill: Concept

question

41) A ________ contains from 50 to over 100 stores, is like a covered mini-downtown, and attracts customers from a wide area. A) community shopping center B) neighborhood shopping center C) strip mall D) regional shopping center E) power center

answer

D Diff: 2 Page Ref: 358 Skill: Concept

question

42) A ________ contains between 15 and 50 retail stores, including a department or variety store, a supermarket, specialty stores, professional offices, and sometimes a bank. A) community shopping enter B) neighborhood shopping center C) strip mall D) regional shopping center E) power center

answer

A Diff: 2 Page Ref: 358 Skill: Concept

question

43) Most shopping centers are ________ containing between 5 and 15 stores: they are close and convenient for consumers. A) community shopping centers B) power centers C) strip malls D) regional shopping centers E) factory outlets

answer

C Diff: 2 Page Ref: 358 Skill: Concept

question

44) Today's trend in retail clusters is toward ________, huge unenclosed shopping centers consisting of a long strip of retail stores, including at least one large, freestanding anchor store such as Wal-Mart. Each store has its own entrance with parking directly in front for shoppers who wish to visit only one store. A) shopping malls B) power centers C) superstores D) chain stores E) regional shopping centers

answer

B Diff: 2 Page Ref: 358 Skill: Concept

question

45) A ________ is a smaller mall with upscale stores, convenient locations, and nonretail activities such as a playground, dining, and a movie theater. It is typically located near affluent residential neighborhoods. A) regional shopping center B) lifestyle center C) community shopping center D) franchise E) power center

answer

B Diff: 2 Page Ref: 358-359 Skill: Concept

question

46) According to the ________ concept, new retailing forms often begin as low-margin, low-price, low-status operations to challenge established retailers, then become successful, and eventually take the place of the established retailers they had challenged. A) agent B) broker C) wheel-of-retailing D) warehousing E) product life cycle

answer

C Diff: 1 Page Ref: 359 Skill: Concept

question

47) In response to a(n) ________, many retailers have cut costs, used price promotions, and added new value pitches to their positioning. A) down economy B) up economy C) dot-com meltdown D) dot-com boom E) shift in retail technology

answer

A Diff: 2 Page Ref: 360 Skill: Concept

question

48) Mail-order, television, phone, and online shopping are all examples of ________. A) the wheel-of-retailing concept B) nonstore retailing C) off-price retailing D) full-service retailing E) megaretailing

answer

B Diff: 2 Page Ref: 360 Skill: Concept

question

49) All of the following have contributed to the growth of online business EXCEPT which one? A) easier-to-use Web sites B) more interesting and attractive Web sites C) concerns about online privacy and security D) improved online service E) increasingly sophisticated search engines

answer

C Diff: 2 Page Ref: 360 Skill: Concept AACSB: Use of IT

question

50) More growth in online retailing is expected from ________ retailers than other retail types. A) click-and-brick B) single channel C) brick-and-mortar D) independent E) franchised

answer

A Diff: 2 Page Ref: 363 Skill: Application AACSB: Use of IT

question

51) The merging of consumers, products, prices, and retailers is called ________. A) retail conglomeration B) consumer convergence C) price merging D) retail convergence E) retail clustering

answer

D Diff: 2 Page Ref: 362 Skill: Concept

question

52) Retail convergence means greater ________ for retailers and greater difficulty in ________ offerings. A) differentiating: pricing B) sales: differentiating C) profit margins: sales D) competition: differentiating E) independence: differentiating

answer

D Diff: 3 Page Ref: 362 Skill: Concept

question

53) The rise of huge mass merchandisers and specialty superstores, along with retail mergers and acquisitions, has created a core group of very large and very powerful ________. A) category killers B) franchises C) megaretailers D) neighborhood shopping centers E) lifestyle centers

answer

C Diff: 2 Page Ref: 362 Skill: Concept

question

54) Touch-screen kiosks, customer-loyalty cards, handheld shopping assistants, and self-scanning checkout systems are all examples of how retailers use technology to ________. A) maintain inventory costs B) send information between stores C) interact with suppliers D) decrease the need for promotions E) meet consumers' technological expectations

answer

E Diff: 2 Page Ref: 362 Skill: Concept AACSB: Use of IT

question

55) Most ________ retailers are significantly behind ________ retailers in global expansion. A) African: Peruvian B) European: American C) American: European and Asian D) Asian: American E) Asian: African

answer

C Diff: 3 Page Ref: 363 Skill: Concept AACSB: Multicultural and Diversity

question

56) ________, the world's second largest retailer after Wal-Mart, has embarked on an aggressive mission to extend its role as a leading international retailer. A) McDonald's B) Target C) Carrefour D) Ikea E) Costco

answer

C Diff: 3 Page Ref: 363 Skill: Concept AACSB: Multicultural and Diversity

question

57) ________ includes all activities involved in selling goods and services to those buying for resale or business use. A) Wholesaling B) Retailing C) Franchising D) Discounting E) Disintermediation

answer

A Diff: 1 Page Ref: 364 Skill: Concept

question

58) ________ buy mostly from producers and sell to retailers and industrial consumers. A) Independents B) Factory outlets C) Wholesalers D) Discount stores E) Megaretailers

answer

C Diff: 2 Page Ref: 364 Skill: Concept

question

59) Which wholesaler's channel function is demonstrated when a wholesaler's sales force helps a manufacturer reach many small customers at a low cost? A) bulk-breaking B) selling and promoting C) buying and assortment building D) warehousing E) rackjobbing

answer

B Diff: 2 Page Ref: 365 Skill: Concept

question

60) Which of the following is NOT one of a wholesaler's channel functions? A) financing B) risk bearing C) providing market information D) off-price retailing E) bulk-breaking

answer

D Diff: 3 Page Ref: 365 Skill: Concept

question

61) Which wholesaler's channel function is demonstrated when a wholesaler reduces inventory holding costs and risks to suppliers and customers? A) bulk-breaking B) buying and assortment building C) warehousing D) financing E) transporting

answer

C Diff: 2 Page Ref: 365 Skill: Concept

question

62) Which wholesaler's channel function is demonstrated when a buyer receives quicker delivery because wholesalers are located closer than producers? A) buying and assortment building B) financing C) transportation D) risk bearing E) warehousing

answer

C Diff: 2 Page Ref: 365 Skill: Concept

question

63) Which of the following is NOT one of the major classifications of wholesalers? A) merchant wholesalers B) agents C) manufacturers' sales branches and offices D) specialty wholesalers E) brokers

answer

D Diff: 2 Page Ref: 365 Skill: Concept

question

64) ________ are the largest group of wholesalers. The group can be divided into the two broad types of full-service and limited-service. A) Brokers B) Manufacturer sellers C) Agents D) Merchant wholesalers E) Specialty wholesalers

answer

D Diff: 2 Page Ref: 365 Skill: Concept

question

65) ________ and ________ do not take title to goods, and they perform only a few channel functions. A) Full-service wholesalers: limited-service wholesalers B) Brokers: agents C) Branches: office D) Power centers: independent wholesalers E) Independent wholesalers: off-price retailers

answer

B Diff: 2 Page Ref: 365 Skill: Concept

question

66) A(n) ________ brings buyers and sellers together and assists in negotiations. A) agent B) broker C) retailer D) wholesaler E) retail convergence

answer

B Diff: 2 Page Ref: 365 Skill: Concept AACSB: Communication

question

67) ________ represent a buyer or seller on a more permanent basis. A) Brokers B) Franchises C) Agents D) Retailers E) Intermediaries

answer

C Diff: 2 Page Ref: 365 Skill: Concept AACSB: Communication

question

68) Like retailers, wholesalers must ________ their target markets and ________ themselves effectively, for they cannot serve everyone. A) define: position B) position: define C) discount: franchise D) franchise: discount E) identify: compare

answer

A Diff: 3 Page Ref: 366 Skill: Concept

question

69) Which type of limited-service wholesaler is owned by farmers who assemble farm products to sell in local markets? A) cash-and-carry wholesaler B) drop shipper C) rack jobber D) producer's cooperative E) truck jobber

answer

D Diff: 2 Page Ref: 366 Skill: Concept

question

70) Which type of wholesaler sells primarily to manufacturers rather than to retailers? A) wholesale merchants B) industrial distributors C) cash-and-carry wholesalers D) rack jobbers E) drop shippers

answer

B Diff: 2 Page Ref: 366 Skill: Concept

question

71) In order to ________, wholesalers can propose automatic reordering systems, set up management-training and advising systems, or even sponsor a voluntary chain. A) define their target markets B) identify more profitable customers C) determine product and service assortments D) build better relationships with customers E) settle on pricing

answer

D Diff: 2 Page Ref: 367 Skill: Concept

question

72) Many wholesalers are not ________-minded: they are behind the times in personal selling, seeing selling as a single salesperson talking to a single customer instead of as a team effort. A) customer B) promotion C) management D) franchise E) profit

answer

B Diff: 2 Page Ref: 368 Skill: Concept AACSB: Communication

question

73) Today's large, progressive wholesalers have successfully reacted to rising costs by ________. A) relocating in low-rent, low-tax areas B) investing in information technology systems C) investing less money in expensive machinery D) increasing their markup E) reducing promotional activities

answer

B Diff: 2 Page Ref: 368 Skill: Concept AACSB: Use of IT

question

74) Savvy wholesalers realize that their only reason for existence comes from increasing the efficiency and effectiveness of the ________. A) retailer B) industry C) distribution system D) end customer E) entire marketing channel

answer

E Diff: 2 Page Ref: 369 Skill: Concept

question

75) In response to slow growth in their domestic markets, many wholesalers are ________. A) contracting their international business B) increasing their international business C) divesting themselves of costly technologies D) lengthening the marketing channel E) reducing elaborate promotional efforts

answer

B Diff: 2 Page Ref: 370 Skill: Concept

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