Multiple choice questions:
Question 1
Retailing on the Internet already accounts for about 25 percent of all retail sales.
True
False
Question 2
Truck wholesalers may provide almost the same services as full service wholesalers, but they usually specialize in perishable products that regular wholesalers prefer not to carry.
True
False
Question 3
Specialty wholesalers usually sell a very narrow range of products and compete with other wholesalers who have a broader range of products by offering expert technical help and/or service to their customers.
True
False
Question 4
Agent wholesalers are very common in international marketing.
True
False
Question 5
When a department store manager decides to offer its female shoppers a free trial of Clinique's new skin cream, this is a decision about:
Product
Place
Promotion
Price
Question 6
Regarding supermarkets, which of the following statements is TRUE?
They average less than $5 million a year in sales.
Net profits after taxes usually amount to about 3 percent of sales.
Compared to super warehouse stores, they offer lower prices and more service.
All of the above are true.
None of the above is true.
Question 7
"Voluntary chains" are retailer-sponsored groups--and "cooperative chains" are wholesaler-sponsored groups--that work together to better compete with corporate chains.
True
False
Question 8
A consumer who went to shop at a "supercenter" would probably expect not only to be able to buy food and health care products, but also to leave dry-cleaning or have shoes repaired.
True
False
Question 9
Wholesalers:
Have had to deal with a competitive threat posed by large retailers that have taken over wholesale functions.
Do not use e-commerce to serve customers.
Face competitive pressure from shipping companies such as FedEx and UPS that make it easier for producers to ship directly to customers.
All of the above.
A and C only.
Question 10
Retailers who follow a policy of "buy low and sell high" are practicing the "mass-merchandising concept."
True
False
Question 11
Compared to conventional retailers, which of the following types of retailers offer a wider product assortment but less service?
Convenience stores.
Supermarkets.
Telephone order retailers.
Department stores.
Limited-line stores.
Question 12
The sale of candy from a vending machine at a bus station is not considered retailing since no store is involved.
True
False
Question 13
Regarding supermarkets, which of the following is NOT true?
They introduced self-service to reduce their costs.
After-tax profits are very good--averaging 10 to 15 percent of sales.
The newer ones carry 47,000 product items.
They average about $17 million a year in sales.
They got their start as an experiment during the Depression.
Question 14
The "wheel of retailing" theory says that:
retailers go through cycles from high costs and prices to lower costs and profits.
general stores will dominate U.S. retailing in the next century.
new types of retailers enter as low-status, low-margin, low-price operators and eventually offer more services and charge higher prices.
all of the above are true.
none of the above are true.
Question 15
The trend toward scrambled merchandising can be explained by:
the "Wheel of Retailing" Theory.
the fact that cities are getting larger and larger, and it is harder for a retailer to segment the market.
growing consumer demand for more service in retail stores.
the fact that some retailers have traditionally used markups which seem "too high" to other retailers.
the growth of telephone and direct-mail retailers.
Question 16
When a supermarket manager decides to offer online ordering at the store's Web site, this is a decision about:
Product
Place
Promotion
Price
Question 17
A consumer's total cost of shopping on the Internet includes delivery costs in addition to purchase price.
True
False
Question 18
Single-line stores that used to carry anything they could sell in reasonable volume were the main retailers in the United States.
True
False
Question 19
Which of the following is NOT a franchise operation?
Subway (food).
H & R Block (tax work).
Kinko's (copy center).
7-Eleven (convenience store).
All of the above are franchises.
Question 20
Telephone selling (telemarketing) is still extremely popular despite the National Do Not Call Registry.
True
False