2. 11-2
Wal-Mart, Toys ‘R Us, and Best Buy are
examples of stores that would be classified as:
1. Specialty retailers
2. Self-service retailers
3. Limited-service retailers
4. Full-service retailers
3. 11-3
Wal-Mart, Toys ‘R Us, and Best Buy are
examples of stores that would be classified as:
1. Specialty retailers
2. Self-service retailers
3. Limited-service retailers
4. 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.
4. 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 store
2. Convenience store
3. Superstore
4. Department store
5. 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 store
2. Convenience store
3. Superstore
4. 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.
6. 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
7. 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.
8. 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
9. 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.
10. 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. 11-11
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.
12. 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
13. 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.
14. 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
15. 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.
16. 11-16
Wholesalers perform all of the following
functions EXCEPT:
1. Selling and promoting
2. Manufacturing
3. Financing
4. Warehousing
17. 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.
18. 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
19. 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.
20. 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
21. 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.
