Marketing 2nd Edition By Shane Hunt – Test Bank

Chapter 11

Test Bank

1. An organization purchases products with the intention of selling them to the ultimate consumer for their personal, family, or household use. This organization is a
2. supplier.
3. wholesaler.
4. producer.
5. distributor.
6. E.

AACSB: Analytical Thinking

Accessibility: Keyboard Navigation

Blooms: Remember

Difficulty: 1 Easy

Learning Objective: 11-01 Discuss the importance of retailing and the role of retail in marketing channels.

Topic: Role of Retailers

Feedback: A retailer is any organization that purchases products for the purpose of reselling them to the ultimate consumer. While some retailers are wholesalers, wholesalers provide goods and services to other businesses as well as to consumers.

2. All of the following situations involve retailing except
3. buying a set of golf clubs from a sporting goods store.
4. buying paper products from a wholesale club like Costco.
5. C. transporting newly manufactured cars to a dealership.
6. booking a European vacation from a travel agent.
7. dining out at the new restaurant in town.

AACSB: Analytical Thinking

Accessibility: Keyboard Navigation

Blooms: Understand

Difficulty: 2 Medium

Learning Objective: 11-01 Discuss the importance of retailing and the role of retail in marketing channels.

Topic: Role of Retailers

Feedback: The practice of retailing encompasses all of the business activities involved in the sale of goods and services to the ultimate consumer for their personal, family, or household use. It does not include a manufacturer shipping items to a retail location for sale.

3. Which of the following can be said about retailing as an economic activity?
4. A. Retailing accounts for more than half of the United States’ gross domestic product.
5. Historically, retailing accounted for a large part of the U.S. economy, but recent figures indicate that retailing’s impact has waned.
6. Retailing’s biggest impact can be seen in the amount of spending on clothing and food service items.
7. Retailing’s effect on the economy has lessened due to the increase in online shopping.
8. There are more retailers than ever, but retail spending has steadily been declining over the past 10 years.

AACSB: Analytical Thinking

Accessibility: Keyboard Navigation

Blooms: Understand

Difficulty: 2 Medium

Learning Objective: 11-01 Discuss the importance of retailing and the role of retail in marketing channels.

Topic: Role of Retailers

Feedback: Retail affects nearly everyone, either directly or indirectly. Retailers generate more than $4.6 trillion in annual sales in the United States, about two-thirds of the total U.S. gross domestic product.

4. On the whole, which of the following accurately depicts the vast majority of retailers?
5. The vast majority of retailers are chain organizations that have stores in at least three locations.
6. B. The vast majority of retailers are “mom and pop” shops that employ a small number of people.
7. The vast majority of retailers employ 50 or more people and have on average 10 locations.
8. The vast majority of retailers are very large organizations, like Walmart, that have many outlets.
9. The vast majority of retailers are now found on the Internet.

AACSB: Analytical Thinking

Accessibility: Keyboard Navigation

Blooms: Remember

Difficulty: 1 Easy

Learning Objective: 11-01 Discuss the importance of retailing and the role of retail in marketing channels.

Topic: Role of Retailers

Feedback: People commonly think of retail predominately in terms of very large organizations. But retail very much remains a “mom-and-pop”-type business. Almost nine out of 10 retail companies employ fewer than 20 employees; over 95 percent of retailers operate just one store.

5. All of the following have contributed to the changes in modern retailing except
6. the growth in global retail opportunities.
7. the rise of Internet shopping outlets.
8. the development of business-to-consumer commerce.
9. industry consolidation and flattening sales growth.
10. E. the conversion of “mom and pop” shops to chain organizations.

AACSB: Analytical Thinking

Accessibility: Keyboard Navigation

Blooms: Understand

Difficulty: 2 Medium

Learning Objective: 11-01 Discuss the importance of retailing and the role of retail in marketing channels.

Topic: Role of Retailers

Feedback: The modern retail environment is one that is increasingly global and dynamic. Industry consolidation and flattening sales growth in established markets have led more retailers to seek out global and online growth opportunities. In addition, the rise of the commercial Internet and development of business-to-consumer commerce have likewise changed the face of modern retailing.

6. The best-known framework for explaining changes in retail institutions in terms of how retail outlets enter and move through the market is referred to as the
7. retail life cycle.
8. product life cycle.
9. retail adoption matrix.
10. D. wheel of retailing.
11. retail market mix.

AACSB: Analytical Thinking

Accessibility: Keyboard Navigation

Blooms: Remember

Difficulty: 1 Easy

Learning Objective: 11-01 Discuss the importance of retailing and the role of retail in marketing channels.

Topic: The Wheel of Retailing

Feedback: The wheel of retailing theory is probably the best-known framework for explaining changes in retail institutions.

7. Bill’s appliance store offers free delivery and set-up of the appliances he sells to his customers and services the appliances after the sale. In doing so, Bill’s appliance store is performing which channel function?
8. completing transactions
9. B. facilitating functions
10. breaking bulk
11. communication functions
12. providing assortment

AACSB: Knowledge Application

Accessibility: Keyboard Navigation

Blooms: Apply

Difficulty: 3 Hard

Learning Objective: 11-01 Discuss the importance of retailing and the role of retail in marketing channels.

Topic: Role of Retailers

Feedback: Retailers provide a collection of services—termed facilitating functions—that ease and enhance the selling and buying goods. For instance, they offer credit to customers and accept returned merchandise. Depending on the product, retailers may also deliver, install, and service the products they sell.

8. Three factors differentiate retail marketing from marketing practiced in other types of businesses: the average dollar amount of a single sales transaction, impulse purchasing, and
9. the reliance on personal selling.
10. the selling of services.
11. the method of marketing used.
12. the type of product sold.
13. E. the presence of physical stores.

AACSB: Analytical Thinking

Accessibility: Keyboard Navigation

Blooms: Remember

Difficulty: 1 Easy

Learning Objective: 11-01 Discuss the importance of retailing and the role of retail in marketing channels.

Topic: Role of Retailers

Feedback: Three factors differentiate retail marketing from marketing practiced in other types of business: the average dollar amount of a single sales transaction, impulse purchasing, and physical stores.

9. A retailer that uses strategies to enhance long-term mutually beneficial relationships with its customers is considering the ______ of each customer.
10. A. lifetime value
11. financial cost
12. marketing value
13. competitive value
14. advertising cost

AACSB: Analytical Thinking

Accessibility: Keyboard Navigation

Blooms: Understand

Difficulty: 2 Medium

Learning Objective: 11-01 Discuss the importance of retailing and the role of retail in marketing channels.

Topic: Role of Retailers

Feedback: The comparatively low revenue per transaction requires retailers to think in terms of the lifetime value of each customer. Retailers invest in information systems and develop ongoing processes that enable them to calculate customer lifetime value. These systems identify profitable customers and help marketers to enact strategies that lead to long-term, mutually beneficial relationships.

10. While Natalie was at the mall, she saw a kiosk that was selling smart phone covers. Although she had no intention of buying a new phone cover when she entered the mall, the kiosk caught her eye and she ended-up buying a leopard-print cover. Which of the following describes Natalie’s behavior?
11. Natalie’s cell phone cover was a strategic purchase.
12. Because she bought the cell phone cover, Natalie must have intended to purchase one all along.
13. C. Natalie’s cell phone cover was an impulse purchase.
14. Natalie did not engage in a retail transaction.
15. Natalie was the victim of distracted shopping.