kotler16tif.doc

Chapter 16: Managing Retailing, Wholesaling, and LogisticsGENERAL CONCEPT QUESTIONSMultiple Choice 1.Intermediaries include retailers, _, and logistical organizations. a.Internet companies b.wholesalers c.competitors d.box storese.none of the above Answer: bPage: 503Level of difficulty: Easy 2. Some intermediaries use strategic planning, advanced information systems, sophisticated marketing tools, measure performance on a return-on-investment basis, segment their markets, improve their target marketing and positioning, and _. a. contend with dwindling customer bases b. aggressively “squeeze” manufacturer margins c. aggressively pursue take over strategiesd.dominant the manufacturers they do business with e.aggressively pursue market expansion and diversification strategiesAnswer: ePage: 504Level of difficulty: Easy3. Retailing involves getting the goods or services to the ultimate consumer. Which of the following is NOT a form of retailing?a.The Internetb.Mailc. Vending machined.Persone.none of the above Answer: ePage: 504Level of difficulty: Easy 4.Major retailer types include the following EXCEPT _. a.specialty store b.discount storec.catalog showroomd.the Internete.superstoreAnswer: d Page: 505Level of difficulty: Medium5.Retailers can position themselves as offering one of four service levels. Which of the following is NOT one of these levels?a.Self-selection b.Self-service c. Limited service d. Direct service e. Full service Answer: dPage: 505Level of difficulty: Medium6.Nonstore retailing falls into four major categories. Which of the following is NOT one of the four nonstore retailing categories? a.Buying service b.Internet sales c.Automatic vending d.Direct marketing e. Direct sellingAnswer: b Page: 506Level of difficulty: Medium7.One of the advantages of corporate retailing is that corporate retail organizations achieve economies of scale, greater purchasing power, better-trained employees, and _. a.wider brand recognition b.more locationsc.branded merchandised.“fresh” merchandisee.more advertising Answer: aPage 506 Level of difficulty: Hard8.An independent retailer using a central buying organization and joint promotion efforts is known as a _. a.corporate chain storeb.voluntary chainc.retailer cooperative d. merchandising conglomeratee.franchise organizationAnswer: cPage 507Level of difficulty: Hard9. In the face of increased competition from discount houses and specialty stores, department stores are waging a comeback war. Two models for department stores success seems to be emerging. The first is a store that has strong retail brand approach as demonstrated by Kohls in the United States. The second model is the _ typified by Galeries Lafayette in Paris. a. “tourist” area stores b. single brand store c.limited variety store d.specialty storee. showcase storeAnswer: e Page: 507 Level of difficulty: Medium10.Franchising accounts for more than $1 trillion of annual U.S. sales and nearly one-third of all retail transactions. Franchises are distinguished by three characteristics that are: (1) the franchisee pays for the right to be part of the system: (2) the franchiser provides its franchisees with a system for doing business; and (3) _. a. the franchiser controls all actions of the franchisee including hiring and marketing decisionsb.the franchisee has unlimited freedom to change the operation once he/she pays the upfront chargesc.the franchiser owns a trade or service mark and licenses it to franchisees in return for royalty payments. d.the franchiser receives a percentage of sales from the franchisee for the right to belong e.none of the above Answer: cPage: 508 Level of difficulty: Hard11.Retailers must make marketing decisions in the areas of product assortment and procurement, services and store atmosphere, price, communications, locations and _. a.niche b.style c.shoppers d. target market e.procedures Answer: dPage: 509Level of difficulty: Medium12. The retailer must decide on product-assortment breadth and _. a.store location b.layout c.pricesd.selection e. depth Answer: ePage: 509Level of difficulty: Easy13. In the pursuit of higher sales volume, retailers are studying their store environments for ways to improve the shoppers experience. According to Paco Underhill, one of his suggestions for fine-tuning retail space is _. a.make the store “fun” and “interesting” but move the shoppers through it quickly b.honor the “transition zone” and allow the shopper time to “sort out” the stimuli c. place the checkouts in the rear of the stored.make the store more receptive to “men” shoppers e.make them “hunt” for itAnswer: bPage: 509 Level of difficulty: Hard14.After deciding on the product-assortment strategy, the retailer must establish merchandise source, _, and practices. a. vendors b.suppliersc.lead-timesd.policies e. buyers Answer: dPage: 512Level of difficulty: Easy15. Retailers are rapidly improving their skills in demand forecasting, merchandise selection, stock control, space allocation, and _. a. advertising b. displayc.choosing the media mixd.selecting the marketing channels e.none of the above Answer: bPage: 512Level of difficulty: Easy16.When retailers do study the economics of buying and selling individual products, they typically find that a third of their square footage is being tied up by products that do not make a _. a.sale b.profitc. fundsd. “turns”e. none of the above Answer: bPage: 512 Level of difficulty: Easy17._ measures a products handling costs from the time the product reaches the warehouse until a customer buys it in the retail store. a. Brand management b. Shelf management c. Profitability d. Direct Product Profitability e. Direct Product PerformanceAnswer: dPage: 512Level of difficulty: Medium 18.The three elements of the services mix for retailers includes _.a.target marketing b.breath and depth c.transition zone d.direct product profitability e.ancillary services Answer: ePage: 513Level of difficulty: Easy19.Pressed by discounters and by shoppers who are increasingly blasé about brands, retailers are rediscovering the usefulness of _ as a point of differentiation for their stores. a.clean well-stocked stores b.“entertainment” c.advertisements d.customer service e.individualization Answer: dPages: 513514Level of difficulty: Medium 20.Every store has a “look,” a physical layout, its “colors,” sounds, and even its “scent.” These elements constitute a stores _. a. layout b.transition zone c.atmosphered.brandse.none of the aboveAnswer: cPage: 514Level of difficulty: Easy21.Approximately _ of everything sold in this country is bought or influenced by a woman. a.40 percent b. 85 percentc.80 percentd. 60 percente.50 percentAnswer: bPage: 514 Level of difficulty: Easy22. Most retailers will put low prices on some items to serve as traffic builders or _. a.loss leadersb.profit leadersc. traffic leadersd. ad itemse.none of the above Answer: aPage: 515 Level of difficulty: Easy23. A EDLP pricing strategy for a retailer could lead to lower advertising costs, greater pricing stability, _, and higher retail profits. a.a weak image regarding low pricing b.a weak image of price fairness and reliability c.a stronger image of fairness and reliability d.a stronger image of low prices e.a confused image of pricing and product availability Answer: cPage: 515 Level of difficulty: Medium 24.Traditional brick-and-mortar retailers are responding to the growth of e-commerce by providing and emphasizing a _ as a strong differentiator to stay at home shopping. a. celebrities on premisesb.shopping experience c.expert advice in selecting d.wider selection of merchandisee.reputation of the retailer Answer: bPage: 515Level of difficulty: Hard 25. Fine specialty retailers most likely fall into the _ group with respect to margins and volume. a. mixed markup, high-volume b.low-volume, mixed markupc.low-volume, low-markupd.high-volume, high-markupe.high-markup, lower-volume Answer: ePage: 515Level of difficulty: Medium26._ is(are) a key positioning factor for retailers and must be decided in relation to the target market, the product-and-service assortment mix, and the competition. a.Hours of operation b.Advertisementc.Locationsd.Prices e. Assortment Answer: dPage: 515Level of difficulty: Easy27.A key factor in a retailers communication strategy is to use communication tools that support and reinforce the stores _ positioning. a.imageb.personal choice c. expertised.locatione.none of the above Answer: aPage: 516Level of difficulty: Easy 28.Retailers can locate their stores in the central business district, a regional shopping center, a _, a shopping strip, or within a larger store. a.suburbia b. town centersc.strip mallsd.freestanding e.community shopping center Answer: ePage: 516 Level of difficulty: Easy 29. One of the trends in retailing includes which of the following? a. Reduction in the level of global competition. b. A decline in the “shop at home” markets.c. Growth of the “smaller” boutique types of stores.d. Competition between Internet selling and store based retailing. e. Competition between store-based and non-store based retailing. Answer: ePage: 517 Level of difficulty: Hard30. Retailers can assess a particular stores sales effectiveness by looking at (1) the number of people passing by on an average day; (2) the _; (3) the percentage of those entering who buy; and (4) the average amount spent per sale. a. percentage of customers who bought merchandise on “sale”b. total units sold per day c.total dollar sales per day d.percentage of those who buy full price merchandise e.percentage who enter the store Answer: ePage: 517Level of difficulty: Hard31.A “brand” developed by a retailer and/or wholesaler that is only available in selected retail outlets is called a _ brand. a.national b.householdc.premiumd.selective e.private label Answer: ePage: 518Level of difficulty: Easy 32. Some experts believe that achieving 50 percent of the market is the natural limit for private label brands because consumers prefer certain national brands and _. a. many product categories are not feasible or attractive for private labels b.many product categories have solid national brands as market leaders c.many product categories have so many brands that there is not room for an additional brandd.many product categories are too large for a private-label brande.none of the above Answer: aPage: 518Level of difficulty: Hard33. Using lower-quality ingredients, lower-cost labeling and packaging, and minimal advertising to produce a product that is 20 to 40 percent lower in price than nationally advertised products and 10 to 20 percent lower than a retailers private label product is called _. a.reseller brand b.store brandc.private labeld.generics e.house brandAnswer: dPage: 519Level of difficulty: Easy34.Retailers charge for special display spaces and in-store advertising space. Retailers typically give more _ display space to their own brands and make sure that their private label products are well stocked. a.high traffic b.front of store c.access to d.prominent e.largerAnswer: dPage: 519Level of difficulty: Medium 35.Besides the growing power of store brands, other factors weakening national brands include _. a.national brands quality is superior to store brands b.national manufacturers have increased advertising support for their brandsc.national brands have quality control problems not found in store brandsd.consumers are more price sensitive e.consumers are more selective on purchases of national brandsAnswer: dPage: 519 Level of difficulty: Hard36. The functions that wholesalers perform include all of the following EXCEPT _. a.bulk breakingb.buying and assortment buildingc.financingd.producing e.market research Answer: dPages: 520521 Level of difficulty: Medium 37. Distributors differ from retailers in a number of ways. First, distributors pay less attention to promotion, atmosphere, and location than retailers do. Second, distributor transactions are usually _ than retail transactions. Third, the government treats distributors differently in terms of legal regulations. a.concise b.largerc. more complicatedd.more involvede.limitedAnswer: bPage: 520 Level of difficulty: Medium38. To maintain their power, leading brand marketers should invest in heavy and continuous _ to bring out new brands, line extensions, features, and quality improvements. a. advertising b.promotions c.P&Ld.A&Pe.R&D Answer: ePage: 520Level of difficulty: Easy 39.Major wholesaler types include all of the following EXCEPT _.a.car auction companies b.truck wholesalers c.cash and carry wholesalersd.merchant wholesalerse.agricultural farmers markets Answer: ePages: 520521Level of difficulty: Medium40.Wholesalers-distributors have faced mounting pressure in recent years. They have had to develop appropriate strategic responses. One major drive has been to increase _ productivity by managing their inventories and receivables better. a. product assortment b.buying practices c.personnel d.asset e.products Answer: dPage: 521Level of difficulty: Medium41.Wholesalers, like retailers, must make marketing decisions. Among the strategic areas that wholesalers have been forced to review includes all of the following EXCEPT _. a.transportation formsb. target marketsc.pricing d.place e.product assortment and selection Answer: aPages: 521522Level of difficulty: Medium42.Supply Chain Management (SCM) starts before physical distribution. It involves procuring the right inp