kotler chapter 13 mcq
TRANSCRIPT
-
7/24/2019 Kotler Chapter 13 MCQ
1/40
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
6Copyright 7 1 &earson #ducation, /nc. &ublishing as &rentice 8all
-
7/24/2019 Kotler Chapter 13 MCQ
2/40
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
6'Copyright 7 1 &earson #ducation, /nc. &ublishing as &rentice 8all
-
7/24/2019 Kotler Chapter 13 MCQ
3/40
() ________ 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$er% !
!iff% &age Ref% '(
*ill% Concept+bective% 1'-1
69Copyright 7 1 &earson #ducation, /nc. &ublishing as &rentice 8all
-
7/24/2019 Kotler Chapter 13 MCQ
4/40
11) "hich type of retailer tends to be the most fre3uently shopped:
A) convenience stores
B) department storesC) superstores
!) supermarets
#) off-price retailersAns$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$er% A
!iff% 1 &age Ref% '(9
*ill% Concept+bective% 1'-1
66Copyright 7 1 &earson #ducation, /nc. &ublishing as &rentice 8all
-
7/24/2019 Kotler Chapter 13 MCQ
5/40
16) *ervice retailers include all of the follo$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
-
7/24/2019 Kotler Chapter 13 MCQ
6/40
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
6(Copyright 7 1 &earson #ducation, /nc. &ublishing as &rentice 8all
-
7/24/2019 Kotler Chapter 13 MCQ
7/40
') 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% '
-
7/24/2019 Kotler Chapter 13 MCQ
10/40
'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$er% B
!iff% &age Ref% '
-
7/24/2019 Kotler Chapter 13 MCQ
11/40
'
-
7/24/2019 Kotler Chapter 13 MCQ
12/40
9) A ________ contains bet$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% '
-
7/24/2019 Kotler Chapter 13 MCQ
13/40
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$er% B
!iff% &age Ref% '
-
7/24/2019 Kotler Chapter 13 MCQ
14/40
9>) "hich of the follo$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% '
-
7/24/2019 Kotler Chapter 13 MCQ
15/40
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% '
-
7/24/2019 Kotler Chapter 13 MCQ
16/40
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% '
-
7/24/2019 Kotler Chapter 13 MCQ
17/40
;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
;Copyright 7 1 &earson #ducation, /nc. &ublishing as &rentice 8all
-
7/24/2019 Kotler Chapter 13 MCQ
19/40
;) ________, 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
(Copyright 7 1 &earson #ducation, /nc. &ublishing as &rentice 8all
-
7/24/2019 Kotler Chapter 13 MCQ
20/40
(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
(1Copyright 7 1 &earson #ducation, /nc. &ublishing as &rentice 8all
-
7/24/2019 Kotler Chapter 13 MCQ
21/40
(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
(Copyright 7 1 &earson #ducation, /nc. &ublishing as &rentice 8all
-
7/24/2019 Kotler Chapter 13 MCQ
22/40
(() 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
('Copyright 7 1 &earson #ducation, /nc. &ublishing as &rentice 8all
-
7/24/2019 Kotler Chapter 13 MCQ
23/40
-
7/24/2019 Kotler Chapter 13 MCQ
24/40
-
7/24/2019 Kotler Chapter 13 MCQ
25/40
-
7/24/2019 Kotler Chapter 13 MCQ
26/40
) 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% '
-
7/24/2019 Kotler Chapter 13 MCQ
27/40
>) 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
(>Copyright 7 1 &earson #ducation, /nc. &ublishing as &rentice 8all
-
7/24/2019 Kotler Chapter 13 MCQ
29/40
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
>
-
7/24/2019 Kotler Chapter 13 MCQ
30/40
>>) 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% '
-
7/24/2019 Kotler Chapter 13 MCQ
31/40
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
-
7/24/2019 Kotler Chapter 13 MCQ
32/40
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 $ithin those lines.
Convenience stores are small stores that carry a limited line of high-turnover convenience goods.he maority of their revenues come from sales of gasoline, cigarettes, and beverages.
!iff% 1 &age Ref% '(
AAC*B% Analytic *ills*ill% Application
+bective% 1'-1
-
7/24/2019 Kotler Chapter 13 MCQ
35/40
1) !escribe the differences bet$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 $ith upmaret style and design and higher-grade service.his upscale alternative really separates it from its mass-merchant peers. /t targets the higher
income, better-educated clientele in its stores, hence the popular high-status pronunciation of its
name as 4ar-shay.4!iff% ' &age Ref% '(>
AAC*B% Analytic *ills
*ill% Application+bective% 1'-
-
7/24/2019 Kotler Chapter 13 MCQ
36/40
1'1) hree types of shopping centers are regional shopping centers, community shopping
centers, and neighborhood shopping centers0strip malls. !escribe ho$ 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% '
-
7/24/2019 Kotler Chapter 13 MCQ
37/40
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 $ithspecialty stores. !epartment stores are also trying mail-order, telephone, and "eb selling.
!iff% &age Ref% '(
AAC*B% Analytic *ills*ill% Application
+bective% 1'-1
-
7/24/2019 Kotler Chapter 13 MCQ
38/40
1'
-
7/24/2019 Kotler Chapter 13 MCQ
39/40
19') "hat elements comprise a storeDs atmosphere:
Ans$er% A storeDs atmosphere includes the sights, sounds, and smells that customers typically
associate $ith the store.!iff% 1 &age Ref% '
-
7/24/2019 Kotler Chapter 13 MCQ
40/40
19