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Home  arrow Chapter 4: Retail Institutions by Ownership  arrow Chapter Materials  arrow Self-Study Quiz

Self-Study Quiz



This activity contains 55 questions.

Question 1.
What percent of all retail sales come from firms with only one outlet?


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Question 2.
Which statement concerning independent retailers is correct?


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Question 3.
The ease of entry into retailing is reflected in


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Question 4.
Which is not an advantage of being an independent retailer?


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Question 5.
Freedom from unionization, stockholder concerns, and a board of directors are advantages of which type of retail establishment?


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Question 6.
A chain can be defined on the basis of which of the following characteristics?


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Question 7.
Which of the following statements about chains is not correct?


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Question 8.
Chains generate 75 percent or more of total retail sales for


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Question 9.
Which statement about product/trademark franchising is correct?


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Question 10.
In business format franchising,


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Question 11.
Which statement concerning franchising is correct?


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Question 12.
From a retail store's perspective, which of the following is not an advantage of using leased departments?


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Question 13.
From a leased department operator's perspective, which of the following is not an advantage of using leased departments?


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Question 14.
An independent vertical marketing system is most likely to be used when


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Question 15.
Which type of marketing system is used when two independently-owned companies perform all production and distribution functions?


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Question 16.
Which type of marketing system is used when a single company performs all production and distribution functions without the aid of other firms?


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Question 17.
Which type of marketing system is used when a company is involved in more than one type of distribution arrangement?


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Question 18.
Sherwin-Williams' use of sales through both company-owned stores and independent retailers is an example of


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Question 19.
Retailers are able to exert channel control through


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Question 20.
Which of the following is not a basic reason for the existence of consumer cooperatives?


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Question 21.
In the United States, there are approximately 2.4 million different firms defined as retailers by the Bureau of the Census.


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Question 22.
Retail classifications are mutually exclusive; that is, a retail institution cannot be correctly placed in more than one retail classification.


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Question 23.
The high number of independent retailers is associated with the ease of entry into the marketplace.


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Question 24.
A great deal of competition in retailing is due to the ease of entry into retailing.


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Question 25.
Independent retailers have a great deal of flexibility in choosing retail formats and locations.


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Question 26.
Of the different types of retail institutions, independent retailers have the most time to allocate to long-run planning.


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Question 27.
It is common for a chain retailer to have high bargaining power in dealing with suppliers due to the large volume of its total purchases.


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Question 28.
Chain retailers can achieve cost efficiencies by buying direct from manufacturers by bypassing wholesalers.


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Question 29.
The use of centralized decision making by chains can result in a chain's not adapting to a local market's needs.


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Question 30.
The use of prototype stores, standardized product lines, and cooperative advertising is generally associated with product/trademark franchising.


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Question 31.
McDonald's is an example of a product/trademark franchising arrangement.


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Question 32.
All retail franchising can be classified as a form of manufacturer-retailer structural arrangement.


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Question 33.
An advantage of a leased department from the leased department operator's perspective is the ability to use an existing store's traffic.


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Question 34.
An independent vertical marketing system is often used by stationery stores and gift shops.


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Question 35.
Partially integrated systems give a firm maximum control over its resources and facilities.


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Question 36.
Full vertical integration is commonly used by wholesalers.


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Question 37.
Dual marketing allows a company to appeal to different market segments.


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Question 38.
Manufacturers can exert channel control through pre-ticketing merchandise.


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Question 39.
Retailers can increase their channel control through use of private branding.


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Question 40.
Consumer cooperatives have not grown in size because of the large required financial investment.


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Question 41.
The basic format or structure of a business is referred to as a ________.


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retail store
retail institution
retail strategy
retail niche
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Question 42.
Independent retailers own only one retail unit. The high number of independents is associated with the ____________ in the marketplace.


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size of firms
ease of entry
target market preferences
diversity of consumers
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Question 43.
A chain retailer operated multiple outlets (store units) under ____ ownership.


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franchised
common
generic
independent
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Question 44.
Among the many competitive advantages for ________ are bargaining power, cost efficiencies, computerization, access to media, well-defined management philosophies and long-range planning.


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chain retailers
independent retailers
consumer cooperatives
leased departments
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Question 45.
A chain can achieve increased bargaining power through __________.


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handling efficiencies
computer efficiencies
media planning
centralized buying
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Question 46.
In product/trademark franchising, franchised dealers acquire the identity of their suppliers by agreeing to sell the latter's products and/or operate under suppliers' names, whereas in ____________, there is a more interactive relationship between a franchisor and a franchisee.


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business format franchising
product assortment franchising
real-time franchising
partner-based franchising
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Question 47.
The franchising structural arrangement in which a wholesaler organizes a franchise system and grants franchises to individual retailers is known as ____ wholesaler-retailer franchising.


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voluntary
mandatory
selective
preferred
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Question 48.
____________ occurs when franchisers limit franchisee involvement in the strategic planning process.


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Focused decision making
Constrained decision making
Dependent decision making
Efficient decision making
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Question 49.
To curb unfair ____ sales practices, the Federal Trade Commission has disclosure requirements and a business opportunities rule.


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franchisee
franchisor
wholesaling
retailing
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Question 50.
A ________ is a department in a retail store that is rented to an outside party.


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leased department
franchised department
cooperative department
primary department
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Question 51.
A ____________ consists of all the levels of independently owned businesses along a channel of distribution.


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horizontal marketing system
vertical marketing system
homogeneous marketing system
heterogeneous marketing system
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Question 52.
With a(n) _____ vertical marketing system, there are three levels of independently owned firms: manufacturers, wholesalers, and retailers.


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partial
full
independent
interdependent
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Question 53.
With a(n) ________ vertical marketing system, two independently owned businesses along a channel perform all production and distribution functions without the aid of the third.


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partially integrated
fully integrated
independently integrated
interdependently integrated
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Question 54.
A firm engaging in more than one type of distribution arrangement is using _____ marketing.


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dynamic
intensive
selective
dual
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Question 55.
With ________, retailers may gain significant power over wholesalers and manufacturers by attaining brand loyalty for their products, converting brand loyalty to store loyalty, and requiring items to be made to specifications.


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popular labeling
individual labeling
manufacturer labeling
private labeling
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