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    Chapter 13 Retailing and Wholesaling

    1) ________ includes all the activities involved in selling products or services directly to finalconsumers for their personal, nonbusiness use.

    A) Franchising

    B) RetailingC) Broering

    !) "holesaling

    #) !isintermediationAns$er% B

    !iff% 1 &age Ref% '(

    *ill% Concept

    +bective% 1'-1

    ) /n recent years, ________ has0have been gro$ing fast. his includes selling to final

    consumers through direct mail, catalogs, telephone, and the /nternet.

    A) specialty storesB) shopping centers

    C) superstores!) nonstore retailing

    #) e-commerce

    Ans$er% !!iff% 1 &age Ref% '(

    AAC*B% 2se of /

    *ill% Concept

    +bective% 1'-1

    ') ________ is the basis of all discount operations and is typically used by sellers of conveniencegoods. Retailers offering this level of service re3uire customers to perform their o$n 4locate-compare-select4 process in order to save money.

    A) 5imited-service

    B) *elf-serviceC) Full-service

    !) *pecialty-service

    #) "holesaling

    Ans$er% B!iff% &age Ref% '(1

    *ill% Concept

    +bective% 1'-1

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    9) ________, such as *ears, provide more sales assistance because they carry more shopping

    goods about $hich customers need information. heir increased operating costs result in higher

    prices.A) *elf-service retailers

    B) Full-service retailers

    C) +ff-price retailers!) 5imited-service retailers

    #) *pecialty-service retailers

    Ans$er% !!iff% &age Ref% '(1

    *ill% Concept

    +bective% 1'-1

    6) "hich type of stores usually carry more specialty goods for $hich customers lie to be

    4$aited on4 and have much higher operating costs, $hich are passed along to the customer:

    A) self-service stores

    B) category iller storesC) full-service stores

    !) independent stores#) specialty-service retailers

    Ans$er% C

    !iff% &age Ref% '(*ill% Concept

    +bective% 1'-1

    ;) "hich of the follo$ing retailers liely re3uire the most emphasis on salespeople to assistcustomers:

    A) self-service retailers

    B) full-service retailersC) off-price retailers

    !) limited-service retailers

    #) megaretailersAns$er% B

    !iff% &age Ref% '(

    *ill% Concept

    +bective% 1'-1

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    () ________ carry narro$ product lines $ith deep assortments $ithin those lines.

    A) Chain stores

    B) *pecialty storesC) Convenience stores

    !) !iscount stores

    #) +ff-price storesAns$er% B

    !iff% 1 &age Ref% '(

    *ill% Concept+bective% 1'-1

    ) "hich type of store carries a $ide variety of product lines and differentiates itself through

    service, but has been s3uee?ed in recent years bet$een more focused and fle@ible specialty stores

    on the one hand and more efficient, lo$er-priced discounters on the other:A) chain

    B) department

    C) factory outlet!) merchant $holesaler

    #) independents

    Ans$er% B!iff% &age Ref% '(

    *ill% Concept

    +bective% 1'-1

    1) ________ are facing slo$ sales gro$th because of slo$er population gro$th, increased

    competition, and the rapid gro$th of out-of-home eating.

    A) Convenience storesB) !epartment stores

    C) Chain stores

    !) *upermarets#) 8ypermarets

    Ans$er% !

    !iff% &age Ref% '(

    *ill% Concept+bective% 1'-1

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    11) "hich type of retailer tends to be the most fre3uently shopped:

    A) convenience stores

    B) department storesC) superstores

    !) supermarets

    #) off-price retailersAns$er% !

    !iff% &age Ref% '(

    *ill% Concept+bective% 1'-1

    1) "hich type of small store carries a limited line of high-turnover convenience goods andmaes most of its revenues from cigarette, beverage, and gasoline sales:

    A) convenience

    B) chainC) department

    !) supermaret

    #) hypermaretAns$er% A

    !iff% 1 &age Ref% '(

    *ill% Concept

    +bective% 1'-1

    1') "hich type of store is much larger than regular supermarets and offers a large assortment of

    routinely purchased food products, nonfood items, and services:A) category iller

    B) chain

    C) factory outlet!) superstore

    #) off-price

    Ans$er% !!iff% 1 &age Ref% '('

    *ill% Concept

    +bective% 1'-1

    19) "hich type of store carries a deep assortment, has no$ledgeable staff, and might actually

    be vie$ed as a giant specialty store:

    A) category illerB) chain

    C) factory outlet

    !) shopping center#) independent

    Ans$er% A

    !iff% 1 &age Ref% '(9

    *ill% Concept+bective% 1'-1

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    16) *ervice retailers include all of the follo$ing #C#& ________.

    A) hotels and motels

    B) airlinesC) movie theaters

    !) bo$ling alleys

    #) convenience storesAns$er% #

    !iff% &age Ref% '(9

    *ill% Concept+bective% 1'-1

    1;) ________ retailers in the 2nited *tates are gro$ing faster than product retailers.A) !iscount

    B) erchant

    C) *ervice!) *pecialty

    #) +ff-price

    Ans$er% C!iff% ' &age Ref% '(9

    *ill% Concept

    +bective% 1'-1

    1() ________ sell standard merchandise at lo$er prices by accepting lo$er margins and selling

    higher volume.

    A) erchant $holesalersB) !iscount stores

    C) Full-service retailers

    !) 5imited-service retailers#) Factory outlets

    Ans$er% B

    !iff% &age Ref% '(9*ill% Concept

    +bective% 1'-1

    1

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    1>) ________ have filled the ultralo$-priced, high-volume gap by buying at less-than-regular

    $holesale prices and charging consumers less than retail.

    A) +ff-price retailersB) !iscount stores

    C) Convenience stores

    !) Chain stores#) 5imited-service retailers

    Ans$er% A

    !iff% 1 &age Ref% '(9*ill% Concept

    +bective% 1'-1

    ) "hich of the follo$ing is + one of the main types of off-price retailers:

    A) independents

    B) factory outletsC) $arehouse clubs

    !) category illers

    #) membership $arehousesAns$er% !

    !iff% &age Ref% '(9

    *ill% Concept

    +bective% 1'-1

    1) ________, $hich buy at less-than-regular $holesale prices and charge consumers less than

    retail, are independently o$ned and run or are divisions of larger retail corporations.A) !iscount stores

    B) "arehouse clubs

    C) *uperstores!) /ndependent off-price retailers

    #) Full-service retailers

    Ans$er% !!iff% &age Ref% '(9

    *ill% Concept

    +bective% 1'-1

    ) ________ are sometimes several stores grouped together. hese stores offer prices as lo$ as

    6 percent belo$ retail on a $ide range of mostly surplus, discounted, or irregular items.

    A) Category illersB) Factory outlets

    C) *pecialty stores

    !) *uperstores#) &o$er centers

    Ans$er% B

    !iff% 1 &age Ref% '(9

    *ill% Concept+bective% 1'-1

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    ') anufacturers send last yearDs merchandise and seconds to ________, $hile they send ne$

    merchandise to department stores.

    A) convenience storesB) chain stores

    C) factory outlets

    !) retailers#) po$er centers

    Ans$er% C

    !iff% &age Ref% '(;*ill% Concept

    +bective% 1'-1

    9) ________ operate in $arehouse-lie facilities, sell a limited selection of items, and offer fe$

    frills. Customers pay annual membership fees and are able to purchase goods at deep discounts.

    A) "arehouse clubsB) /ndependent off-price retailers

    C) Factory outlets

    !) !iscount stores#) *uperstores

    Ans$er% A

    !iff% 1 &age Ref% '(;

    *ill% Concept+bective% 1'-1

    6) ________ are t$o or more outlets that are commonly o$ned and controlled.A) Chain stores

    B) Convenience stores

    C) +ff-price retailers!) /ndependent off-price retailers

    #) &o$er centers

    Ans$er% A!iff% 1 &age Ref% '(;

    *ill% Concept

    +bective% 1'-1

    ;) As a result of the great success of corporate chains, many independent stores chose to band

    together in either a voluntary chain or aEn) ________.

    A) factory outletB) retailer cooperative

    C) independent off-price retailer

    !) $arehouse club#) convenience cooperative

    Ans$er% B

    !iff% &age Ref% '(;

    *ill% Concept+bective% 1'-1

    6

    *ill% Concept+bective% 1'-

    '') A retailerDs ________ should differentiate the retailer $hile matching target shoppersDe@pectations. +ne strategy is to offer merchandise that no other competitor carries.

    A) agent

    B) broerC) product assortment

    !) environment

    #) distribution strategyAns$er% C

    !iff% &age Ref% '

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    '6) /n-store demonstrations, displays, contests, and visiting celebrities are e@amples of

    ________.

    A) franchisesB) sales promotions

    C) agent promotions

    !) broer promotions#) product life-cycling

    Ans$er% B

    !iff% &age Ref% '

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    '

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    9) A ________ contains bet$een 16 and 9 retail stores, including a department or variety store,

    a supermaret, specialty stores, professional offices, and sometimes a ban.

    A) community shopping centerB) neighborhood shopping center

    C) strip mall

    !) regional shopping center#) po$er center

    Ans$er% A

    !iff% &age Ref% '

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    96) A ________ is a smaller mall $ith upscale stores, convenient locations, and e@pensive

    atmosphere. /t is typically located near affluent residential neighborhoods.

    A) regional shopping centerB) lifestyle center

    C) community shopping center

    !) franchise#) po$er center

    Ans$er% B

    !iff% &age Ref% '

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    9>) "hich of the follo$ing has + contributed to the gro$th of online business:

    A) easier-to-use "eb sites

    B) more interesting and attractive "eb sitesC) concerns about online privacy and security

    !) improved online service

    #) increasingly sophisticated search enginesAns$er% C

    !iff% &age Ref% '

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    6') he rise of huge mass merchandisers and specialty superstores, along $ith retail mergers and

    ac3uisitions, has created a core group of very large and very po$erful ________.

    A) category illersB) franchises

    C) superpo$er megaretailers

    !) po$er centers#) lifestyle centers

    Ans$er% C

    !iff% &age Ref% '

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    6() ________, the $orldDs second largest retailer after "al-art, has embared on an aggressive

    mission to e@tend its role as a leading international retailer.

    A) c!onaldDsB) arget

    C) Carrefour

    !) /ea#) Costco

    Ans$er% C

    !iff% ' &age Ref% '

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    ;1) "hich of the follo$ing is + one of a $holesalerDs channel functions:

    A) financing

    B) ris bearingC) providing maret information

    !) off-price retailing

    #) bul-breaingAns$er% !

    !iff% ' &age Ref% '>

    *ill% Concept+bective% 1'-9

    ;) "hich $holesalerDs channel function is demonstrated $hen a $holesaler reduces inventory

    holding costs and riss to suppliers and customers:A) financing

    B) transporting

    C) buying and assortment building

    !) $arehousing#) bul breaing

    Ans$er% !!iff% ' &age Ref% '>

    *ill% Concept

    +bective% 1'-9

    ;') "hich $holesalerDs channel function is demonstrated $hen a buyer receives 3uicer delivery

    because $holesalers are located closer than producers:

    A) financingB) transportation

    C) buying and assortment building

    !) $arehousing#) ris bearing

    Ans$er% !

    !iff% &age Ref% '>*ill% Concept

    +bective% 1'-9

    ;9) "hich of the follo$ing is + one of the maor classifications of $holesalers:

    A) merchant $holesalers

    B) agentsC) manufacturersD sales branches and offices

    !) specialty $holesalers

    #) broersAns$er% !

    !iff% &age Ref% '>

    *ill% Concept

    +bective% 1'-9

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    ;) ________, or manufacturersD representatives, represent a buyer or seller on a more permanentbasis.

    A) Broers

    B) Franchises

    C) Agents!) Retailers

    #) /ntermediariesAns$er% C

    !iff% &age Ref% '>

    AAC*B% Communication*ill% Concept

    +bective% 1'-9

    () 5ie retailers, $holesalers must ________ their target marets and ________ themselveseffectively, for they cannot serve everyone.

    A) define= position

    B) position= defineC) discount= franchise

    !) franchise= discount

    #) identify= compareAns$er% A

    !iff% ' &age Ref% '>

    *ill% Concept

    +bective% 1'-9

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    (1) "hich type of limited-service $holesaler is o$ned by farmers $ho assemble farm produce

    to sell in local marets:

    A) cash-and-carry $holesalerB) drop shipper

    C) rac obber

    !) producerDs cooperative#) truc obber

    Ans$er% !

    !iff% &age Ref% '>1*ill% Concept

    +bective% 1'-9

    () "hich type of $holesaler sells primarily to manufacturers rather than to retailers:

    A) $holesale merchants

    B) industrial distributorsC) cash-and-carry $holesalers

    !) rac obbers

    #) drop shippersAns$er% B

    !iff% &age Ref% '>1

    *ill% Concept

    +bective% 1'-9

    (') any $holesalers are not ________-minded= they are behind the times in personal selling,

    seeing selling as a single salesperson taling to a single customer instead of as a team effort.A) absent

    B) promotion

    C) management!) franchise

    #) customer

    Ans$er% B!iff% &age Ref% '>'

    AAC*B% Communication

    *ill% Concept

    +bective% 1'-9

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    (9) odayDs large, progressive $holesalers have successfully reacted to rising costs by ________.

    A) relocating in lo$-rent, lo$-ta@ areas

    B) investing in information technology systemsC) investing less money in e@pensive machinery

    !) increasing their marup

    #) reducing promotional activitiesAns$er% B

    !iff% ' &age Ref% '>'

    AAC*B% 2se of /*ill% Concept

    +bective% 1'-9

    (6) *avvy $holesalers reali?e that their only reason for e@istence comes from increasing theefficiency and effectiveness of the ________.

    A) retailer

    B) industry

    C) distribution system!) end customer

    #) entire mareting channelAns$er% #

    !iff% &age Ref% '>'

    *ill% Concept+bective% 1'-9

    (;) At eiman arcus, a first-class department store, customers shop for specialty products andhave come to e@pect assistance in every phase of the shopping process. eiman arcus is a

    ________.

    A) self-service retailerB) limited-service retailer

    C) full-service retailer

    !) specialty store#) po$er center

    Ans$er% C

    !iff% 1 &age Ref% '(

    AAC*B% Reflective hining*ill% Application

    +bective% 1'-1

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    (() Game*top sells video games and systems, offering a narro$ product line $ith a deep

    assortment $ithin that line. Game*top is a ________.

    A) department storeB) convenience store

    C) category iller

    !) specialty store#) off-price retailer

    Ans$er% !

    !iff% 1 &age Ref% '(1AAC*B% Reflective hining

    *ill% Application

    +bective% 1'-1

    () +verstoc.com, a "eb seller that buys furniture, clothing, electronics, and more from a

    variety of producers at less-than-regular $holesale prices and then charges customers less thanretail, is aEn) ________.

    A) discount store

    B) independent off-price retailerC) factory outlet

    !) $holesale club

    #) category iller

    Ans$er% B!iff% &age Ref% '(9

    AAC*B% Reflective hining

    *ill% Application+bective% 1'-1

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    ) acyDs department stores carry a $ide range of product lines, including clothing, e$elry,

    itchen$are, and home furnishings. acyDs typically charges a relatively high marup, but also

    holds fre3uent sales and price promotions, in particular offering discounts to customers $ho usea acyDs credit card. acyDs uses ________.

    A) self-service retailing

    B) e@periential retailingC) high-lo$ pricing

    !) everyday lo$ pricing

    #) retail convergenceAns$er% C

    !iff% &age Ref% '1) "hich of the follo$ing is most liely the greatest factor in the increasingly short life cycle ofne$ retail forms:

    A) changes in technology

    B) economic s$ingsC) import and e@port regulations

    !) stagnating retail convergence

    #) global e@pansion of maor retailers

    Ans$er% A!iff% ' &age Ref% '

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    >) Carey !avidDs $holesale company helps retailers train salesclers, improve store layouts and

    displays, and set up inventory control systems. he channel function Cary !avidDs is providing is

    ________.A) buying and assortment building

    B) selling and promotion services

    C) ris bearing services!) mareting information

    #) management services and advice

    Ans$er% #!iff% &age Ref% '>

    AAC*B% Reflective hining

    *ill% Application

    +bective% 1'-9

    >') Iou o$n an independent store in your neighborhood. Iou still lie to offer fresh seafood in

    your meat display case. "hich type of $holesaler might best serve you:

    A) cash-and-carry $holesalerB) rac obber

    C) drop shipper!) mail-order $holesaler

    #) agents and broers

    Ans$er% A!iff% ' &age Ref% '>1

    AAC*B% Analytic *ills

    *ill% Application

    +bective% 1'-9

    >9) Iou o$n a neighborhood grocery store and $ould lie to have non-food items delivered,priced, displayed and inventoried by a $holesaler. Iou do not $ant to purchase title to the goods.

    "hich type of $holesaler best fits your needs:

    A) cash-and-carry $holesalerB) rac obber

    C) drop shipper

    !) mail-order $holesaler

    #) agents and broersAns$er% B

    !iff% ' &age Ref% '>1

    AAC*B% Analytic *ills*ill% Application

    +bective% 1'-9

    (6) Jiera Roselli, a general merchandise $holesaler, constantly loos for better $ays to meet the

    needs of her suppliers and target customers. *he no$s that her business adds value by

    increasing the efficiency and effectiveness of the ________.A) retail process

    B) entire mareting channel

    C) $arehousing system!) target maret

    #) retail customer

    Ans$er% B!iff% &age Ref% '>'

    AAC*B% Analytic *ills

    *ill% Application

    +bective% 1'-9

    >;) *uperKalu, traditionally classified as a food $holesaler, has recently started or ac3uired

    several retail food chains of its o$n, including Albertsons, Le$el-+sco, and Cub Foods. "hich

    of the follo$ing trends is this an e@ample of:A) movement to$ard self-service retailing

    B) the gro$ing domination of superstoresC) the decline of the voluntary chain

    !) retail convergence

    #) the blurring of distinctions bet$een retailers and $holesalersAns$er% #

    !iff% &age Ref% '>9

    AAC*B% Analytic *ills

    *ill% Application+bective% 1'-9

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    Refer to the scenario below to answer the following questions.

    /n the 1>(s, *hipshe$ana $as only a small to$n $ith a hard$are store, a grain mill, a shoestore, a small restaurant, and a grocery store. +ver the ne@t t$o decades, the small to$n

    transformed into an international tourist attraction, attracting thousands of tourists $ho are

    intrigued $ith the lifestyle of *hipshe$anaDs largest population

    the Amish.Ben and ary iller, having gro$n up $ithin the Amish faith, decided to capitali?e ontheir to$nDs popularity and their $ood$oring sills. heir shop, /ndiana "ood, began $ith a

    small display of handmade hicory rocing chairs, Ben illerDs specialty. But $ithin a fe$

    months, the display at /ndiana "ood included picnic tables, flo$er bo@es, and small handmadenovelty items. o other shop offers the same.

    ary iller decorated the shopDs display room $ith authentic Amish dcor and

    eventually hired three Amish friends to se$ and embroider napins and other te@tiles percustomer re3uest. /n addition, t$o $omen from the Amish community sought permission from

    the illers to display home-baed pastries and ellies on uesdays and "ednesdays, the to$nDs

    busiest tourist days, $hen *hipshe$ana attracts s$arms of visitors to its flea maret on the south

    edge of to$n.4*hipshe$ana is full of specialty shops,4 ary iller stated. 4&eople donDt come here to

    buy things made in China or ai$an. hey $ant real, Amish-made goods.4

    >() /ndiana "ood is best classified as aEn) ________ retailer.

    A) full-service

    B) self-serviceC) limited-service

    !) discount

    #) off-priceAns$er% A

    !iff% 1 &age Ref% '(AAC*B% Reflective hining

    *ill% Application+bective% 1'-1

    >

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    >>) he Amish decor and shop $orers give customers an authentic impression of the pride and

    sill built into the shopDs products. hese aspects also contribute to the storeDs ________.

    A) product assortmentB) services mi@

    C) atmosphere

    !) segmentations#) targeting

    Ans$er% C

    !iff% &age Ref% '

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    1') 5imited-service retailers, such as specialty stores and first-class department stores, employ

    salespeople $ho assist customers in every phase of the shopping process.

    Ans$er% FA5*#!iff% &age Ref% '(1

    AAC*B% Analytic *ills

    *ill% Application+bective% 1'-1

    19) !epartment stores carry narro$ product lines $ith deep assortments $ithin those lines.

    Ans$er% FA5*#

    !iff% 1 &age Ref% '(

    *ill% Concept+bective% 1'-1

    16) /n recent years, convenience stores have redesigned their stores to closely focus on servingtheir primary target maret made up of young, blue-collar men.

    Ans$er% FA5*#

    !iff% ' &age Ref% '(*ill% Concept

    +bective% 1'-1

    1;) Category illers carry a deep assortment of a particular product line and have ano$ledgeable staff.

    Ans$er% R2#

    !iff% &age Ref% '(9*ill% Concept

    +bective% 1'-1

    1() +ff-price retailers pay regular $holesale prices for their merchandise but maintain lo$

    prices by accepting lo$er margins and selling higher volume.

    Ans$er% FA5*#!iff% ' &age Ref% '(9

    *ill% Concept

    +bective% 1'-1

    1

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    11) Factory outlets, independent off-price retailers, and $arehouse clubs all buy their

    merchandise in a similar fashion.

    Ans$er% R2#!iff% ' &age Ref% '(9

    AAC*B% Analytic *ills

    *ill% Application+bective% 1'-1

    111) /n $arehouse clubs, customers must independently bring large items to the checout line.

    Ans$er% R2#

    !iff% &age Ref% '(;

    *ill% Concept+bective% 1'-1

    11) Chain stores are located near residential areas and are open long hours, seven days a $ee=they carry a limited line of high-turnover goods.

    Ans$er% FA5*#

    !iff% &age Ref% '(;*ill% Concept

    +bective% 1'-1

    11') /n a retailer cooperative, independent retailers contract $ith each other to set up a centralbuying operation and conduct oint promotional efforts.

    Ans$er% FA5*#

    !iff% &age Ref% '(;*ill% Concept

    +bective% 1'-1

    119) erchandising conglomerates are corporations that combine several different retailing

    forms under different o$nership.

    Ans$er% FA5*#!iff% &age Ref% '((

    *ill% Concept

    +bective% 1'-1

    116) Retailers first must position themselves in a maret and then decide ho$ they $ill define

    the target customers in these marets.

    Ans$er% FA5*#!iff% &age Ref% '(

    AAC*B% Communication

    *ill% Concept+bective% 1'-9

    19) /n an automated $arehouse, orders are fed directly from the retailerDs information system tothe $holesalerDs, and the items are piced up by mechanical devices and taen to a shipping

    platform $here they are assembled.

    Ans$er% R2#

    !iff% &age Ref% '>'AAC*B% 2se of /

    *ill% Concept

    +bective% 1'-9

    16) he distinction bet$een large retailers and large $holesalers is becoming blurred.Ans$er% R2#

    !iff% &age Ref% '>9

    AAC*B% Analytic *ills

    *ill% Application+bective% 1'-9

    1;) Retail stores can be classified in terms of several characteristics. ame four of these.Ans$er% hese include the amount of service they offer, the breadth and depth of their product

    lines, the relative prices they charge, and ho$ they are organi?ed.

    !iff% &age Ref% '(1AAC*B% Analytic *ills

    *ill% Application

    +bective% 1'-1

    1() Compare and contrast specialty stores and convenience stores.

    Ans$er% *pecialty stores carry narro$ product lines $ith deep assortments $ithin those lines.

    Convenience stores are small stores that carry a limited line of high-turnover convenience goods.he maority of their revenues come from sales of gasoline, cigarettes, and beverages.

    !iff% 1 &age Ref% '(

    AAC*B% Analytic *ills*ill% Application

    +bective% 1'-1

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    1) !escribe the differences bet$een chain stores and franchises.

    Ans$er% Chain stores consist of t$o or more outlets that are commonly o$ned and controlled.

    Chain stores have the advantage of buying in larger 3uantities at lo$er prices and sharing

    resources to hire specialists to help $ith decisions in pricing, promotion, merchandising,inventory, and sales forecasting. Franchises are not commonly o$ned and controlled= instead, a

    franchise is a contractual association bet$een a manufacturer, $holesaler, or service organi?ation

    and an independent businessperson $ho buys the right to o$n and operate one or more units

    $ithin the franchise system.!iff% &age Ref% '(;-((

    AAC*B% Analytic *ills*ill% Application

    +bective% 1'-1

    1') #@plain ho$ arget is able to compete against "al-art.

    Ans$er% arget has developed distinct targeting and positioning. argetDs aim is to stic to lo$

    prices, but rises above the discount fray $ith upmaret style and design and higher-grade service.his upscale alternative really separates it from its mass-merchant peers. /t targets the higher

    income, better-educated clientele in its stores, hence the popular high-status pronunciation of its

    name as 4ar-shay.4!iff% ' &age Ref% '(>

    AAC*B% Analytic *ills

    *ill% Application+bective% 1'-

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    1'1) hree types of shopping centers are regional shopping centers, community shopping

    centers, and neighborhood shopping centers0strip malls. !escribe ho$ they are different from

    each other.Ans$er% Regional shopping centers are the largest and most dramatic shopping centers. hey

    contain from 9 to more than stores. hey are lie covered mini-do$nto$ns and attract

    customers from a $ide area. *maller than regional shopping centers, community shoppingcenters contain bet$een 16 and 9 stores. hey normally contain a branch of a department store

    or variety store, a supermaret, specialty stores, professional offices, and sometimes a ban.

    *maller still are neighborhood shopping centers0strip malls, $hich generally contain 6 to 16stores. hey are close and convenient for consumers, usually containing a supermaret, a

    discount store, and several service stores.

    !iff% ' &age Ref% '

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    1'9) #@plain the mareting decisions facing $holesalers.

    Ans$er% "holesalers are faced $ith the mareting decisions of segmentation and targeting,

    differentiation and promotion, and the mareting mi@. &rogressive $holesalers are adapting theirservices to the needs of target customers and are seeing cost-reducing methods of doing

    business. Faced $ith slo$ gro$th in their domestic marets and developments such as the orth

    American Free rade Association, many large $holesalers are also no$ going global.!iff% &age Ref% '>

    AAC*B% Analytic *ills

    *ill% Application+bective% 1'-9

    1'6) #@plain ho$ $holesalers have been able to use technology to cut costs.

    Ans$er% any $holesalers have invested in automated $arehouses and information technologysystems. !elivery time can be cut as orders are fed from the retailerDs information system directly

    into the $holesalerDs. Automated $arehouses increase efficiencies and drive do$n costs, as

    mechanical devices can automatically pic up items and tae them to a shipping platform to be

    assembled. "holesalers can also use technology for accounting, billing, inventory control, andforecasting. hese computeri?ed, automated, and "eb-based systems help $holesalers contain

    the costs of ordering, shipping, and inventory holding.!iff% &age Ref% '>'

    AAC*B% 2se of /

    *ill% Application+bective% 1'-9

    1';) "hat types of products do specialty stores carry: Give an e@ample of a specialty store.

    Ans$er% *pecialty stores carry narro$ product lines $ith deep assortments $ithin those lines.#@amples $ill vary.

    !iff% 1 &age Ref% '(

    AAC*B% Analytic *ills*ill% Application

    +bective% 1'-1

    1'() 8o$ have department stores responded to increased competition by specialty stores:

    Ans$er% any department stores have added promotional pricing to meet the threat= in addition,

    they have stepped up the use of store brands and single-brand 4designer shops4 to compete $ithspecialty stores. !epartment stores are also trying mail-order, telephone, and "eb selling.

    !iff% &age Ref% '(

    AAC*B% Analytic *ills*ill% Application

    +bective% 1'-1

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    1'

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    19') "hat elements comprise a storeDs atmosphere:

    Ans$er% A storeDs atmosphere includes the sights, sounds, and smells that customers typically

    associate $ith the store.!iff% 1 &age Ref% '

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    19