Question 1: Purchasing officers differ from purchasing agents in that ________.
1) purchasing officers handle nonperishable items only
2) purchasing agents take title to the goods
3) purchasing officers are a part of the buyer's organization
4) purchasing agents are not obliged to negotiate for best prices of goods
5) purchasing agents have the contractual authority to sell a manufacturer's entire output
Question 2: Bruce Wayne's wholesale company fulfills many channel functions for its customers. In particular, the company differentiates itself by offering ________, such as helping retailers train salesclerks, improve store layouts and displays, and set up inventory control systems.
1) buying and assortment building
2) selling and promotion services
3) risk bearing services
4) market information services
5) management services and advice
Question 3: Stores that provide moderate sales assistance because they carry shopping goods about which customers need a moderate level of information are called ________.
1) self-service retailers
2) full-service retailers
3) off-price retailers
4) limited-service retailers
5) convenience retailers
Question 4: A ________ contains between 15 and 50 retail stores, including a department or variety store, a supermarket, specialty stores, professional offices, and sometimes a bank.
1) community shopping center
2) warehouse club
3) franchise organization
4) lifestyle center
5) power center
Question 5: Corporate chains are located near a residential area and are open long hours, seven days a week; they carry a limited line of high-turnover goods.
1) True
2) False
Question 6: Manufacturers' agents are ________.
1) exclusively hired in agricultural marketing by farmers who do not want to sell their own output
2) employed by the buyer's organization and authorized to take title to goods
3) wholesalers who carry a limited line of fast-moving goods and sell to small retailers for cash without providing delivery
4) hired by two or more manufacturers of complementary lines who cannot afford their own field sales forces
5) a type of limited-service wholesalers for goods requiring minimal consumer information
Question 7: Wholesalers absorb risk by taking title and bearing the cost of theft, damage, spoilage, and obsolescence.
1) True
2) False
Question 8: Retail convergence directly leads to ________.
1) reduced differentiation
2) reduced competition
3) increased sales
4) increased profit margins
5) reduced need for product assortment
Question 9: ________ sell standard merchandise at lower prices by accepting lower margins and selling higher volume.
1) Convenience stores
2) Discount stores
3) Full-service retailers
4) Designer shops
5) Specialty stores
Question 10: Which of the following types of limited-service wholesalers is owned by farmers who assemble farm produce to sell in local markets?
1) cash-and-carry wholesalers
2) drop shippers
3) rack jobbers
4) producers' cooperatives
5) truck jobbers
Question 11: For a retailer to be able to differentiate himself from competitors and match target shoppers' expectations, the product assortment retailed should be ________.
1) identical to the product assortment retailed by its competitors
2) devoid of any blockbuster goods as they divert the attention of consumers
3) highly targeted or focused on a niche market of potential consumers
4) constituted by private-label brands, rather than national or exclusive brands
5) devoid of any seconds, overstocks, and closeouts as this damages the perception of the retailer
Question 12: The retailer's product assortment should differentiate the retailer while matching target shoppers' expectations.
1) True
2) False
Question 13: Shopper marketing involves focusing the entire marketing process-from product and brand development to logistics, promotion, and merchandising-toward turning shoppers into buyers at the point of sale.
1) True
2) False
Question 14: McPherson's, an ice cream joint, recently entered into an agreement by which it allowed independent businesspeople at select stores and locations across the country to sell its famous ice creams and milk shakes for a monetary consideration. This agreement created a(n) ________ type of contractual retail association.
1) corporate chain
2) voluntary chain
3) franchise organization
4) independent intermediary
5) retailer cooperative
Question 15: Which of the following differentiates between an outlet mall and a value-retail center?
1) An outlet mall stocks convenience goods, while a value-retail center sells luxury goods.
2) An outlet mall sells its products on par with the retail prices, while a value-retail center charges rates that are slightly below the retail prices.
3) An outlet mall consists primarily of the manufacturers' outlets, while a value-retail center combines manufacturers' outlets with off-price retail stores and department store clearance outlets.
4) An outlet mall is managed by buying and selling agents, while a value-retail center has employees who belong to the manufacturer's organization as bonafide employees.
5) An outlet mall is a type of off-price retailing, while a value-retail center is an example of designer shops that have high markups and low volume.