1. Which statement concerning retailing is correct? Retailing involves only the sale of tangible goods.

Retailing is the initial stage in the distribution process. Manufacturers and wholesalers are acting as retailers when they sell goods and services to final consumers. Retailing must involve the use of a store. 2. According to the U.S. Department of Commerce, annual retail store sales are approximately $400 billion $1 trillion $3.5 trillion $5 trillion 3. Retail store sales represent approximately _____ percent of the total U.S. economy. 15 30 45 60 4. Approximately how many of the world's top 100 retailers are based in the United States? 20 30 40 50 5. Most of the top 100 retailers are located in which country? Japan France Great Britain United States 6. Approximately how many people are employed by traditional U.S. retailers? 10 million 25 million 30 million 40 million 7. In 2001, the after-tax profit of the 10 largest U.S. retailers averaged about what percentage of sales? 2.5 5 7.5

10 8. Which statement concerning a retailer's function in distribution is not correct? Retailers collect assortments of goods and services for sale to institutional markets. Retailers enable customers to undertake one-stop shopping. Retailers provide information for channel members. Retailers store, mark, and advertise merchandise. 9. The sorting process refers to grading commodities such as vegetables. scrambled merchandising. the arrangement of goods by size in a store. a retailer's collecting an assortment of goods from various sources, and selling in small amounts. 10. Channel relations are usually smoothest when what type of distribution is involved? Intensive Exclusive Selective Voluntary 11. Which channel arrangement usually maximizes suppliers' sales? Intensive Exclusive Selective Voluntary 12. Which distribution method combines aspects of exclusive and intensive distribution? Bifurcated distribution Bilateral distribution Selective distribution Cooperative distribution 13. Which of the following is not a special characteristic of retailing? Final consumers make many unplanned purchases. The average sale in retailing is low. Inventory management is not difficult. Retail customers usually visit a store location. 14. Low average retail sales creates a need to do all of the following except control transaction-related costs. decrease advertising and promotion costs. maximize the number of customers entering the store.

increase impulse sales. 15. Which of the following is not an effective means of increasing impulse sales by a retailer? Reducing overall store price levels Developing attractive point-of-purchase displays Utilizing a store layout design that maximizes the time a shopper spends in each store Maintaining attractive store windows to attract more shoppers into the store 16. Which of these is a key to Target's successful retail strategy? Offering customers the lowest possible retail selling price Outstanding customer service for its retail category Appeal to low-income shoppers The sale of "me too" merchandise 17. Which of the following is not a direct element in the retailing concept? Customer service Customer orientation Value-driven Goal orientation 18. The retailing concept is used by all retailers. focuses on a firm's competitive advantages. ignores customer needs. can be adopted fairly easily by a retailer. 19. The total retail experience includes only those tangible elements (such as store maintenance and lighting) that affect a retailer's image to its target market. only those intangible elements (such as customer service) that affect a retailer's image to its target market. all of the elements in a retail offering that encourage or inhibit consumers during their contact with a retailer. the gap between a customer's expectation and perception of reality. 20. The strategic approach to the study of retailing concentrates on the types of products handled. the types of retail outlets. developing, implementing, and reviewing an overall retail plan. the activities retailers must perform. 21. Retailing is the last stage in the distribution process.

True False 22. Retailing encompasses the sale of services, as well as goods. True False 23. Mail order, direct selling, vending machines, and Web-based transactions do not fit within the scope of retailing. True False 24. Purchases made by manufacturers, wholesalers, and other organizations for their use in the organization or further resale are not part of retailing. True False 25. According to the Department of Commerce, annual U.S. retail store sales are approximately $250 billion. True False 26. Durable good stores account for about 40 percent of total U.S. retail store sales. True False 27. The U.S. Bureau of Labor Statistics' data on retail employment overstates the actual number of people working in retailing. True False 28. Retailing is the last stage in a channel of distribution. True False 29. The sorting process enables both manufacturers to become more efficient and consumers to conduct one-stop shopping. True False 30. In most cases, goods and services are sold via retail outlets owned by a manufacturer. True False

31. Channel relations are usually the smoothest when exclusive distribution is involved. True False 32. From a manufacturer's perspective, exclusive distribution may limit its long-run total sales potential. True False 33. With intensive distribution, suppliers enter into agreements with one or a few retailers that designate the latter as the only companies in specified geographic areas that are allowed to carry certain brands and/or product lines. True False 34. Channel relations are generally the most volatile with intensive distribution. True False 35. The average transaction size for retailers is much larger than for manufacturers. True False 36. Defining the type of business and setting long-run and short-run objectives are both aspects of the development and application of a retail strategy. True False 37. Target Stores is perceived by many consumers as an "upscale discounter." True False 38. Customer orientation, coordinated effort, high levels of customer service, and a focus on affluent customers are the general elements of the retailing concept. True False 39. All elements of the total retail experience are controllable to the retailer. True False 40. Customer service refers to both tangible and intangible activities undertaken by a retailer in conjunction

with the basic goods and services it sells. True False 41. Retailing consists of those business activities involved in selling goods and services to ________ for their personal, family, or household use. It is the ________ stage in the distribution process. consumers, last business consumers, last middle consumers, middle target markets, middle 42. There is a tendency to think of retailing in terms of ________ goods; however, retailing also encompasses the sale of _______. owned, products tangible (physical), services intangible, services rental, nongoods 43. Retailing is the ________ stage in a channel of distribution. first second third last 44. Through the ____________, a retailer collects an assortment from various sources and offers them in small quantities to consumers. scrambling process selection process sorting process saturation process 45. Channel relations tend to be most volatile with ______ distribution. intensive selective exclusive multiphase 46. ______ distribution often maximizes suppliers' sales and lets retailers offer many brands and product versions. Selective Intensive Exclusive

Multiphase 47. A balanced position between _____ and _____ distribution is selective distribution. exclusive, intensive partial, full limited, unlimited domestic, global 48. Often, retail sales involve ______ purchases. financial impulse equipment real-estate 49. A _____________ is the overall plan that guides the firm. retail strategy marketing orientation business philosophy positioning analysis 50. In applying the retailing concept, a retail firm needs to be customer oriented, use a coordinated effort, be _____-driven, and be goal oriented. sales profit value growth 51. The _______________ consists of all the elements in a retail offering that encourage or inhibit customers during their contact with a retailer. total service experience total product experience total retail experience total sales experience 52. __________ refers to the identifiable, but sometimes intangible, activities undertaken by a retailer in conjunction with the basic goods and services it sells. Expected benefits Customer satisfaction Relationship retailing Customer service 53. In __________, retailers seek to establish and maintain long-term bonds with customers.

store atmospherics store positioning transactional retailing relationship retailing 54. A customer data base with information on people's attributes and past shopping behavior is an important part of __________. store atmospherics store positioning transactional retailing relationship retailing 55. The underlying principle of the ______ approach to studying retailing is that a retail firm needs to plan for and adapt to a complex, changing environment. functional institutional analytical strategic