14 Aug 241. The wheel of retailing concept A. is consistent with the eme
241.
The wheel of
retailing concept
A.
is consistent
with the emergence of supermarkets in the 1930s.
B.
explains the
early success of convenience (food) stores.
C.
explains the
early success of vending machines.
D.
suggests that
new types of retailers usually emerge as high-price, high-cost operations,
and then cut their prices as competitors enter the market.
E.
None of these
alternatives is true.
242.
“Scrambled
merchandising” refers to:
A.
retailers
shifting from one product-market to another (e.g., a food retailer shifting
to clothing).
B.
limited-line
retailers carrying wide assortments.
C.
retailers
carrying any product lines they can sell profitably.
D.
displays of
impulse products in supermarkets.
E.
incompatible
price and promotion policies.
243.
Scrambled
merchandising is carrying
A.
any product
lines that a store thinks that it can sell profitably.
B.
discounted
product lines.
C.
a specific
product line and offering yearly discounts.
D.
a number of
product lines and offering a clearance sale twice a year.
E.
a limited
product line at a high price aimed at a small number of consumers.
244.
The idea that
retailers will start to sell a new product that offers a profit margin higher
than what they achieve on their traditional product line is consistent with
the
A.
marketing
concept.
B.
operating
philosophy of most limited-line retailers.
C.
wheel of
retailing concept.
D.
scrambled
merchandising concept.
E.
none of these
is a good answer.
245.
The trend toward
scrambled merchandising can be explained by:
A.
the “Wheel
of Retailing” Theory.
B.
the fact that
cities are getting larger and larger, and it is harder for a retailer to
segment the market.
C.
growing
consumer demand for more service in retail stores.
D.
the fact that
some retailers have traditionally used markups which seem “too
high” to other retailers.
E.
the growth of
in-home shopping.
246.
Which of the
following is best illustrated by a supermarket that carries Nintendo video
games?
A.
The
superstore concept
B.
Scrambled
merchandising
C.
The wheel of
retailing
D.
Target
marketing
E.
Mass
merchandising
247.
A new grocery store
features a bank, a pharmacy, a flower shop, a full-service bakery, a caf,
photo processing, and equipment rentals, in addition to its normal grocery
product lines. The store is engaging in:
A.
The wheel of
retailing.
B.
Retailing
strategy.
C.
Scrambled
merchandising.
D.
The retail
life cycle.
E.
Merchandising
strategy.
248.
The development of
new types of retailers can be best explained by applying:
A.
the rule of
franchising.
B.
target
marketing and product life cycle concepts.
C.
the corporate
chain hypothesis.
D.
the wheel of
retailing theory.
E.
the law of
retail gravitation.
249.
Retailer life cycles
(from introduction to maturity) seem to be:
A.
getting
longer.
B.
getting
shorter.
C.
staying about
the same.
D.
changing
erratically.
E.
none of these
is a good answer.
250.
U.S. Census data
show that:
A.
retailers are
more numerous than manufacturers and wholesalers combined.
B.
only about 15
percent of all retailers have annual sales over $5 million.
C.
over half of
all retailers have annual sales less than $1 million.
D.
there are
over 1 million retailers.
E.
all of these
alternatives are correct.
251.
Regarding retail
sales in the U.S., it is true that:
A.
less than 6
percent of all retail sales are made by smaller stores–those with sales
less than $1 million a year.
B.
almost 75
percent of all retail sales are made by the largest stores–those with
sales over $5 million a year.
C.
corporate
chains account for about 50 percent of retail sales.
D.
franchising
accounts for one-third of retail sales.
E.
All of these
alternatives are correct.
252.
Regarding retailer
store size, it is true that:
A.
almost 75
percent of all retail sales are made by smaller stores–those with annual
sales less than $1 million.
B.
almost 75
percent of all retail sales are made by the largest stores–those with
annual sales over $5 million a year.
C.
small
retailers are unimportant and can safely be ignored by most manufacturers
and wholesalers.
D.
big retailers
do a lot of business but they make up less than 5 percent of stores.
E.
None of these
alternatives is correct.
253.
U.S. Census data
show that:
A.
less than 15
percent of all retailers have annual sales over $1 million.
B.
very large
retailers account for a small percentage of total retail sales.
C.
manufacturers
and wholesalers are more numerous than retailers in the United States.
D.
only about 15
percent of all retailers have annual sales over $5 million.
E.
None of these
alternatives is correct.
254.
Regarding retailer
size and sales volume in the U. S.:
A.
Approximately
15% of retail stores account for 75% of all retail sales.
B.
Approximately
15% of retail stores account for 85% of all retail sales.
C.
Approximately
15% of retail stores account for 95% of all retail sales.
D.
Approximately
20% of retail stores account for 80% of all retail sales.
E.
Approximately
30% of retail stores account for 70% of all retail sales.
255.
A corporate chain is
defined as
A.
a firm that
owns and manages more than one store.
B.
retailer-sponsored
groups formed by independent retailers that run their own buying
organizations and conduct joint promotion efforts.
C.
wholesaler-sponsored
groups that work with “independent” retailers.
D.
franchisors
who develop good marketing strategies, and who carry out the strategy in
their own units.
E.
a firm that
owns a single-store but operates through multiple franchisors.
256.
A corporate
chain:
A.
Is formed by
independent retailers that work together.
B.
Is sponsored
by a wholesaler.
C.
Is formed
when a firm owns and manages more than one store.
D.
Involves
franchisees that pay commissions and fees to the parent company.
E.
None of these
alternatives is correct for a corporate chain.
257.
Corporate
chains
A.
have
continued to grow–and now account for about half of all retail sales.
B.
have an
advantage relative to independent stores when it comes to promotion and use
of dealer brands.
C.
increase
their buying power by centralizing at least some of the buying for
different stores.
D.
increase
their efficiency by building their own distribution centers.
E.
all of these
alternatives are correct for corporate chains.
258.
Corporate
chains:
A.
can get a
cost advantage over independent stores by spreading management costs to
many stores.
B.
account for
nearly 10 percent of retail sales.
C.
usually
cannot obtain economies of scale in distribution.
D.
are declining
in importance.
E.
None of these
alternatives is correct for corporate chains.
259.
Cooperative
chains:
A.
are sponsored
by wholesalers to try to compete with corporate chains.
B.
are
experiencing declining sales.
C.
are formed by
independent retailers to run their own buying organizations and conduct
joint promotion efforts.
D.
are consumer
groups who run nonprofit buying associations.
E.
None of these
alternatives is true for cooperative chains.
260.
Chains formed by
independent retailers to run their own buying organizations and conduct joint
promotion efforts are called:
A.
cooperative
chains.
B.
true values.
C.
voluntary
chains.
D.
retailer
chains.
E.
franchise
operations.
261.
Retailer-sponsored
groups formed by independent retailers that run their own buying
organizations and conduct joint promotion efforts are called:
A.
Corporate
chains
B.
Voluntary
chains
C.
Cooperative
chains
D.
Franchise
operations
E.
Private
chains
262.
A
wholesaler-sponsored retail chain is called a:
A.
consumer
cooperative.
B.
corporate
chain.
C.
franchise
chain.
D.
voluntary
chain.
E.
cooperative
chain.
263.
Voluntary chains
are
A.
firms that
own and manage more than one store.
B.
retailer-sponsored
groups formed by independent retailers that run their own buying
organizations and conduct joint promotion efforts.
C.
wholesaler-sponsored
groups that work with “independent” retailers.
D.
franchisors
who develop good marketing strategies, and who carry out the strategy in
their own units.
E.
firms that
own a single-store but operate through multiple franchisors.
264.
A number of
independent drugstores are working with a wholesaler to obtain economies of
scale in buying. They were organized by this wholesaler after a recent
meeting to discuss ways of competing with corporate chains. These drugstores
are now part of a:
A.
corporate
chain.
B.
voluntary
chain.
C.
consumer
cooperative.
D.
cooperative
chain.
E.
franchise
chain.
265.
Franchisors:
A.
account for
about a third of all retail sales.
B.
often provide
franchise holders with training.
C.
usually
receive fees and commissions from the franchise holder.
D.
are
especially popular with services retailers.
E.
all of these
alternatives are correct for franchisors.
266.
Franchise
operations:
A.
generally
have very loose ties between the franchisor and franchise holders.
B.
are expected
to decline in the future because the service sector of the economy is
failing.
C.
currently
account for about a third of all retail sales.
D.
do not form
chains.
E.
None of these
alternatives is true.
267.
Franchise operations
provide a good example of:
A.
vertical integration.
B.
contractual
vertical marketing systems.
C.
administered
channels in which the retailers are the channel captains.
D.
direct-to-buyer
channels.
E.
None of these
is a good answer.
268.
Which of the
following is NOT a franchise operation?
A.
Midas Muffler
B.
Panera Bread
C.
Jiffy Lube
D.
True Value
Company
E.
Taco Bell
269.
Which of the
following is NOT a franchise operation?
A.
Subway
(food).
B.
H and R Block
(tax work).
C.
Kinko’s (copy
center).
D.
7-Eleven
(convenience store).
E.
All of these
are franchise operations.
270.
Which of the
following statements about retailing in different nations is NOT true?
A.
Mass-merchandisers
are especially popular in less-developed nations.
B.
Some large
retail chains are moving into international markets.
C.
Supermarkets
started in the U.S.
D.
Supercenters
started in Europe.
E.
New retailing
formats that succeed in one country are quickly adapted to other countries.
271.
Business firms that
sell to retailers and other merchants, and/or to industrial, institutional,
and commercial users–but which do not sell in large amounts to final
consumers–are:
A.
retailers.
B.
collaborators.
C.
producers.
D.
wholesalers.
E.
intermediaries.
272.
The U.S. Census
Bureau defines wholesaling as being concerned with the activities of those
persons or establishments that sell
A.
to retailers
and other merchants, but that do not sell in large amounts to final
consumers.
B.
to industrial
users.
C.
to
institutional users.
D.
to commercial
users.
E.
All of these
alternatives are correct.
273.
Wholesaling is
concerned with the activities of:
A.
manufacturers
who set up branch warehouses at separate locations.
B.
persons or
establishments that sell to industrial, institutional, and commercial
users.
C.
persons or
establishments that sell to retailers.
D.
All of these
alternatives are correct.
274.
Wholesalers:
A.
Have had to
deal with a competitive threat posed by large retailers that have taken
over wholesale functions.
B.
Are using
e-commerce to serve customers more effectively.
C.
Face
competitive pressure from shipping companies such as FedEx and UPS that
make it easier for producers to ship directly to customers.
D.
Are beginning
to increase profitability by carefully selecting their retailer-customers.
E.
All of these
alternatives are true.
275.
Regarding the future
of wholesalers, which of the following statements is TRUE?
A.
Most
high-cost wholesalers will disappear in the near future.
B.
Modern
wholesalers are seeing that vertical integration with producers provides
their only assurance of long-run survival.
C.
Some small
high-cost wholesalers will probably survive due to the specialized services
they offer some market segments.
D.
Net profit
margins in wholesaling have been increasing in recent years.
E.
All of these
statements are TRUE.
276.
Regarding
wholesaling, which of the following is(are) true?
A.
Merchant
wholesalers have higher sales than agent wholesalers, but their costs (as a
percent of sales) are over three times as high.
B.
There are
many more manufacturers’ sales branches than merchant wholesalers.
C.
Manufacturers’
sales branches have higher costs than agent wholesalers and account for a
smaller percentage of total sales.
D.
Good
marketing managers select the type of wholesaler with the lowest cost when
planning channels of distribution.
E.
All of these
alternatives about wholesaling are true.
277.
Regarding types of
wholesalers, which of the following has the HIGHEST costs as a percent of
sales?
A.
Manufacturers’
sales branches (with stock)
B.
Merchant
wholesalers
C.
Brokers
D.
Manufacturers’
agents
E.
Agent
wholesalers
278.
Regarding
wholesalers, which of the following types has the LOWEST costs as a percent
of sales?
A.
Specialty
wholesalers
B.
Merchant
wholesalers
C.
Manufacturers’
sales branches
D.
Agent
wholesalers
E.
Service
wholesalers
279.
Regarding
wholesalers, which of the following is the most numerous?
A.
Service
wholesalers.
B.
Agent
wholesalers.
C.
Limited-function
wholesalers.
D.
Manufacturers’
sales branches.
E.
Merchant
wholesalers.
280.
Warehouses that
producers set up at separate locations away from their factories are known
as
A.
progressive
wholesalers.
B.
manufacturers’
sales branches.
C.
corporate
chains.
D.
hypermarkets.
E.
retail
production centers.
241.The wheel of
retailing concept
A.is consistent
with the emergence of supermarkets in the 1930s.B.explains the
early success of convenience (food) stores.C.explains the
early success of vending machines.D.suggests that
new types of retailers usually emerge as high-price, high-cost operations,
and then cut their prices as competitors enter the market.E.None of these
alternatives is true.242.”Scrambled
merchandising” refers to:
A.retailers
shifting from one product-market to another (e.g., a food retailer shifting
to clothing).B.limited-line
retailers carrying wide assortments.C.retailers
carrying any product lines they can sell profitably.D.displays of
impulse products in supermarkets.E.incompatible
price and promotion policies.243.Scrambled
merchandising is carrying
A.any product
lines that a store thinks that it can sell profitably.B.discounted
product lines.C.a specific
product line and offering yearly discounts.D.a number of
product lines and offering a clearance sale twice a year.E.a limited
product line at a high price aimed at a small number of consumers.244.The idea that
retailers will start to sell a new product that offers a profit margin higher
than what they achieve on their traditional product line is consistent with
the
A.marketing
concept.B.operating
philosophy of most limited-line retailers.C.wheel of
retailing concept.D.scrambled
merchandising concept.E.none of these
is a good answer.245.The trend toward
scrambled merchandising can be explained by:
A.the “Wheel
of Retailing” Theory.B.the fact that
cities are getting larger and larger, and it is harder for a retailer to
segment the market.C.growing
consumer demand for more service in retail stores.D.the fact that
some retailers have traditionally used markups which seem “too
high” to other retailers.E.the growth of
in-home shopping.246.Which of the
following is best illustrated by a supermarket that carries Nintendo video
games?
A.The
superstore conceptB.Scrambled
merchandisingC.The wheel of
retailingD.Target
marketingE.Mass
merchandising247.A new grocery store
features a bank, a pharmacy, a flower shop, a full-service bakery, a caf,
photo processing, and equipment rentals, in addition to its normal grocery
product lines. The store is engaging in:
A.The wheel of
retailing.B.Retailing
strategy.C.Scrambled
merchandising.D.The retail
life cycle.E.Merchandising
strategy.248.The development of
new types of retailers can be best explained by applying:
A.the rule of
franchising.B.target
marketing and product life cycle concepts.C.the corporate
chain hypothesis.D.the wheel of
retailing theory.E.the law of
retail gravitation.249.Retailer life cycles
(from introduction to maturity) seem to be:
A.getting
longer.B.getting
shorter.C.staying about
the same.D.changing
erratically.E.none of these
is a good answer.250.U.S. Census data
show that:
A.retailers are
more numerous than manufacturers and wholesalers combined.B.only about 15
percent of all retailers have annual sales over $5 million.C.over half of
all retailers have annual sales less than $1 million.D.there are
over 1 million retailers.E.all of these
alternatives are correct.251.Regarding retail
sales in the U.S., it is true that:
A.less than 6
percent of all retail sales are made by smaller stores–those with sales
less than $1 million a year.B.almost 75
percent of all retail sales are made by the largest stores–those with
sales over $5 million a year.C.corporate
chains account for about 50 percent of retail sales.D.franchising
accounts for one-third of retail sales.E.All of these
alternatives are correct.252.Regarding retailer
store size, it is true that:
A.almost 75
percent of all retail sales are made by smaller stores–those with annual
sales less than $1 million.B.almost 75
percent of all retail sales are made by the largest stores–those with
annual sales over $5 million a year.C.small
retailers are unimportant and can safely be ignored by most manufacturers
and wholesalers.D.big retailers
do a lot of business but they make up less than 5 percent of stores.E.None of these
alternatives is correct.253.U.S. Census data
show that:
A.less than 15
percent of all retailers have annual sales over $1 million.B.very large
retailers account for a small percentage of total retail sales.C.manufacturers
and wholesalers are more numerous than retailers in the United States.D.only about 15
percent of all retailers have annual sales over $5 million.E.None of these
alternatives is correct.254.Regarding retailer
size and sales volume in the U. S.:
A.Approximately
15% of retail stores account for 75% of all retail sales.B.Approximately
15% of retail stores account for 85% of all retail sales.C.Approximately
15% of retail stores account for 95% of all retail sales.D.Approximately
20% of retail stores account for 80% of all retail sales.E.Approximately
30% of retail stores account for 70% of all retail sales.255.A corporate chain is
defined as
A.a firm that
owns and manages more than one store.B.retailer-sponsored
groups formed by independent retailers that run their own buying
organizations and conduct joint promotion efforts.C.wholesaler-sponsored
groups that work with “independent” retailers.D.franchisors
who develop good marketing strategies, and who carry out the strategy in
their own units.E.a firm that
owns a single-store but operates through multiple franchisors.256.A corporate
chain:
A.Is formed by
independent retailers that work together.B.Is sponsored
by a wholesaler.C.Is formed
when a firm owns and manages more than one store.D.Involves
franchisees that pay commissions and fees to the parent company.E.None of these
alternatives is correct for a corporate chain.257.Corporate
chains
A.have
continued to grow–and now account for about half of all retail sales.B.have an
advantage relative to independent stores when it comes to promotion and use
of dealer brands.C.increase
their buying power by centralizing at least some of the buying for
different stores.D.increase
their efficiency by building their own distribution centers.E.all of these
alternatives are correct for corporate chains.258.Corporate
chains:
A.can get a
cost advantage over independent stores by spreading management costs to
many stores.B.account for
nearly 10 percent of retail sales.C.usually
cannot obtain economies of scale in distribution.D.are declining
in importance.E.None of these
alternatives is correct for corporate chains.259.Cooperative
chains:
A.are sponsored
by wholesalers to try to compete with corporate chains.B.are
experiencing declining sales.C.are formed by
independent retailers to run their own buying organizations and conduct
joint promotion efforts.D.are consumer
groups who run nonprofit buying associations.E.None of these
alternatives is true for cooperative chains.260.Chains formed by
independent retailers to run their own buying organizations and conduct joint
promotion efforts are called:
A.cooperative
chains.B.true values.C.voluntary
chains.D.retailer
chains.E.franchise
operations.261.Retailer-sponsored
groups formed by independent retailers that run their own buying
organizations and conduct joint promotion efforts are called:
A.Corporate
chainsB.Voluntary
chainsC.Cooperative
chainsD.Franchise
operationsE.Private
chains262.A
wholesaler-sponsored retail chain is called a:
A.consumer
cooperative.B.corporate
chain.C.franchise
chain.D.voluntary
chain.E.cooperative
chain.263.Voluntary chains
are
A.firms that
own and manage more than one store.B.retailer-sponsored
groups formed by independent retailers that run their own buying
organizations and conduct joint promotion efforts.C.wholesaler-sponsored
groups that work with “independent” retailers.D.franchisors
who develop good marketing strategies, and who carry out the strategy in
their own units.E.firms that
own a single-store but operate through multiple franchisors.264.A number of
independent drugstores are working with a wholesaler to obtain economies of
scale in buying. They were organized by this wholesaler after a recent
meeting to discuss ways of competing with corporate chains. These drugstores
are now part of a:
A.corporate
chain.B.voluntary
chain.C.consumer
cooperative.D.cooperative
chain.E.franchise
chain.265.Franchisors:
A.account for
about a third of all retail sales.B.often provide
franchise holders with training.C.usually
receive fees and commissions from the franchise holder.D.are
especially popular with services retailers.E.all of these
alternatives are correct for franchisors.266.Franchise
operations:
A.generally
have very loose ties between the franchisor and franchise holders.B.are expected
to decline in the future because the service sector of the economy is
failing.C.currently
account for about a third of all retail sales.D.do not form
chains.E.None of these
alternatives is true.267.Franchise operations
provide a good example of:
A.vertical integration.B.contractual
vertical marketing systems.C.administered
channels in which the retailers are the channel captains.D.direct-to-buyer
channels.E.None of these
is a good answer.268.Which of the
following is NOT a franchise operation?
A.Midas MufflerB.Panera BreadC.Jiffy LubeD.True Value
CompanyE.Taco Bell269.Which of the
following is NOT a franchise operation?
A.Subway
(food).B.H and R Block
(tax work).C.Kinko’s (copy
center).D.7-Eleven
(convenience store).E.All of these
are franchise operations.270.Which of the
following statements about retailing in different nations is NOT true?
A.Mass-merchandisers
are especially popular in less-developed nations.B.Some large
retail chains are moving into international markets.C.Supermarkets
started in the U.S.D.Supercenters
started in Europe.E.New retailing
formats that succeed in one country are quickly adapted to other countries.271.Business firms that
sell to retailers and other merchants, and/or to industrial, institutional,
and commercial users–but which do not sell in large amounts to final
consumers–are:
A.retailers.B.collaborators.C.producers.D.wholesalers.E.intermediaries.272.The U.S. Census
Bureau defines wholesaling as being concerned with the activities of those
persons or establishments that sell
A.to retailers
and other merchants, but that do not sell in large amounts to final
consumers.B.to industrial
users.C.to
institutional users.D.to commercial
users.E.All of these
alternatives are correct.273.Wholesaling is
concerned with the activities of:
A.manufacturers
who set up branch warehouses at separate locations.B.persons or
establishments that sell to industrial, institutional, and commercial
users.C.persons or
establishments that sell to retailers.D.All of these
alternatives are correct.274.Wholesalers:
A.Have had to
deal with a competitive threat posed by large retailers that have taken
over wholesale functions.B.Are using
e-commerce to serve customers more effectively.C.Face
competitive pressure from shipping companies such as FedEx and UPS that
make it easier for producers to ship directly to customers.D.Are beginning
to increase profitability by carefully selecting their retailer-customers.E.All of these
alternatives are true.275.Regarding the future
of wholesalers, which of the following statements is TRUE?
A.Most
high-cost wholesalers will disappear in the near future.B.Modern
wholesalers are seeing that vertical integration with producers provides
their only assurance of long-run survival.C.Some small
high-cost wholesalers will probably survive due to the specialized services
they offer some market segments.D.Net profit
margins in wholesaling have been increasing in recent years.E.All of these
statements are TRUE.276.Regarding
wholesaling, which of the following is(are) true?
A.Merchant
wholesalers have higher sales than agent wholesalers, but their costs (as a
percent of sales) are over three times as high.B.There are
many more manufacturers’ sales branches than merchant wholesalers.C.Manufacturers’
sales branches have higher costs than agent wholesalers and account for a
smaller percentage of total sales.D.Good
marketing managers select the type of wholesaler with the lowest cost when
planning channels of distribution.E.All of these
alternatives about wholesaling are true.277.Regarding types of
wholesalers, which of the following has the HIGHEST costs as a percent of
sales?
A.Manufacturers’
sales branches (with stock)B.Merchant
wholesalersC.BrokersD.Manufacturers’
agentsE.Agent
wholesalers278.Regarding
wholesalers, which of the following types has the LOWEST costs as a percent
of sales?
A.Specialty
wholesalersB.Merchant
wholesalersC.Manufacturers’
sales branchesD.Agent
wholesalersE.Service
wholesalers279.Regarding
wholesalers, which of the following is the most numerous?
A.Service
wholesalers.B.Agent
wholesalers.C.Limited-function
wholesalers.D.Manufacturers’
sales branches.E.Merchant
wholesalers.280.Warehouses that
producers set up at separate locations away from their factories are known
as
A.progressive
wholesalers.B.manufacturers’
sales branches.C.corporate
chains.D.hypermarkets.E.retail
production centers.
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