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1.

________ refers to using point-of-purchase promotions and advertising to extend brand


equity to "the last mile" and encourage favorable point-of-purchase decisions.
a.
b.
c.
d.
e.

Internal marketing
Sole sourcing
Warehousing
Test marketing
Shopper marketing

2. A ________ refers to a group of retail businesses built on a site that is planned,


developed, owned, and managed as a unit.
a. pop-up stores
b. shopping center
c. warehouse
d. category killer
e. convenience store

3. Which of the following is true of direct marketing?


a. Its marketing message is fixed and does not change according to the customer's
requirements.
b. It is suited for highly targeted marketing efforts and for building one-to-one
customer relationships.
c. It is presented as company news rather than as a sales-directed communication.
d. It does not involve any interaction between the company and its customers.
e. It is an impersonal promotion tool that hinders two-way communication.
4. Lazer Telecom, a cell phone manufacturer, has signed a contract with a production house
to fund a new movie. The conditions of the agreement state that the movie will feature
Lazer Telecom phones onscreen. What kind of advertising technique has Lazer Telecom
most likely adopted in this example?
a. geofencing
b. advertainment
c. product placement

d. vertical integration
e. subliminal advertising
5. What is the first step in the selling process?
a. approach
b. prospecting
c. demonstration
d. handling objections
e. sales presentation

6. Which of the following is an example of a firm utilizing public relations as a promotion


tool?
a. a firm using its personal sales force at an expo to sell its products
b. a firm sending its catalog directly to customers through e-mail
c. a firm informing customers of special discounts on its Web site
d. a firm providing interesting information about a product to the news media
e. a firm using a celebrity to endorse a product in a television commercial
7. The growth of the Internet caused many traditional companies to ________ in response to
customer demands and a changing marketplace.
a. use traditional direct marketing forms
b. adopt direct-mail marketing
c. use multichannel marketing
d. develop retail transaction sites
e. expand their outside sales force
8. Which of the following statements is true of consumer promotions?
a. Their primary objective is to persuade resellers to carry a brand.
b. They include a wide range of tools like samples, coupons, and refunds.
c. They include the use of display allowances.
d. They are primarily used to generate business leads and reward customers.
e. They include the use of conventions and trade shows.
9. Which of the following is the largest form of online advertising?
a. contextual advertisements
b. display advertisements
c. digital catalogs
d. community Web sites
e. blog posts

10. Carboi is a company that offers consumers the opportunity to buy carbon offsets, which
are contributions to projects that combat global warming by reducing carbon emissions.
Carboi offers contribution packages for driving, flying, and home energy use. Through
Carboi, consumers can pay some of the ________ costs of their private goods and
services.
a. promotional
b. safety
c. recovery
d. distribution
e. social

Answers
E
B
B
C
B
D
C
B
A
E
Chapter 11
Retailing - ______ includes all the activities involved in selling products or services directly to
final consumers for their personal nonbusiness use.
Retailer - Most retailing is done by _____, businesses whose sales come primarily from retailing.
Shopper Marketing - Many marketers are now embracing the concept of ______, using point-ofpurchase promotions and advertising to extend brand equity to "the last mile" and encourage
favorable point-of-purchase decisions.
Specialty Store - A store that carries a narrow product line with a deep assortment, such as
apparel stores, sporting-goods stores, furniture stores, florists, and bookstores.

Department Store - A store that carries several product lines-typically clothisng, home
furnishings, and household goods-with each line opperated as a seperate department managed by
specialist buyers or merchandisers.
Supermarket - A relatively large, low-cost, low-margin, high-volume, self-service operation
desinged to serve the customer's total needs for grocery and household products.
Convenience Store - A relatively small store located near residential areas, open long hours seven
days a week, and carrying a limited line of high-turnover convenience products at slightly higher
prices.
Superstore - A store much larger than a regular dupermarket that offers a large assortment of
routinely purchased food products, nonfood items, and services.
Category Killer - A giant specialty store that carries a very deep assortment of a particular line
(home depot, best buy).
Service Retailer - A retailer whold product line is actually a service; i.e. hotels, airlines, banks,
colleges, and many others.
Discount Store - A retail operation that sells standard merchandise at lower prices by accepting
lower margins and selling at higher volumes.
Off-price Retailer - A retailer that buys a less-than-regular wholesale prices and sells at less that
retail.
Independend off-price retailer - An off-price retailer that is either independently owned and run
or is a division of a larger retail corporation.
Factory Outlet - An off-price retailing operation that is owned and operated by a manufacturer
and normally carries the manufacturer's surplus, discontinued, or irregular goods.
Warehouse Club - An off-price retailer that sells a limited selection of brand name grocery items,
appliances, clothing, and other goods at deep discounts to members who pay annual membership
fees.
Corporate chains - _______ have two or more outlets that are commonly owned and controlled.
They have many advantages over independents. thier size allows them to buy in large quantities
at lower prices and gain promotional economies.
Franchise - A contractual association between a manufacturer, wholesaler, or service organization
(a franchisor) and independent businesspeople (franchisees) who buy the right to own and
operate one or more units in the franchise system.
True - The main difference between franchise organizations and other contractual systems
(voluntary chains and retail cooperatives) is that franchise systems are normally based on some

unique product or service; a method of doing business; or the trade name, goodwill, or patent that
the franchisor has developed.
True - Once concidered upstarts, among independent business, franchises not command 40% of
all retail sales in the US.
True - Retailing and wholesaling consist of m any organizations bringing goods and services
from the point of proudction to the point of use.
True - Successful retailers define their target markets well and position themselves strongly.
Shopping Center - A group of retial businesses built on a site that is planned, developed, owned,
and managed as a unit.
True - Retailers use any or all of the five pormotion tools- advertising, personal selling, sales
promotion, public relations (PR)., and direct marketing-to reach customers.
1950s - Central business districts were the main form of retail cluster until the ______.
True - Retailers often point to three critical factos in retailing success; location, location,
location.
True - Its very important that retailers select locations that are accessible to the target market in
areas that are consistent with the retailer's positioning.
True - Most stores today cluster together to increase their customer pulling power and give
sonsumers the convenience of one-stop shopping.
True - In all, today's centers are more about "creating places to be rather than just places to buy."
Wheel of retailing - Many retailing innovations are partially explained by _______ concept.
According to this concept, many new types of retailing forms begin as low-margin, low-price,
and low-status operations but later evolve into higher-priced, higher-service operations,
eventually becoming like the conventional retailers they replaced.
Wholesaling - ______ includes all activities involved in selling goods and sevices to those
buying them for resale or business use.
wholesalers - Firms engaged primarily in wholesaling activities are called _____.
Merchant wholesalers - An independently owned wholesale business that takes title to the
merchandise it handles. ________ are the largest signle group of wholesalers, accounting for
roughly 50% of all wholesaling
Broker - A wholesaler who does not take title to goods and whose function is to bring buyers and
sellers together and assist in negotiation.

Agent - A whole saler who represents buyers or sellers on a relatively permanent basis, performs
only a few functions, and does not take title to goods.
Manufacturers sales branches and offices - Wholesaling by sellers of buyers themselves rather
than through independent wholesalers.
True - Whereas retailers primarily sell goods and services directly to final consumers for
personal use, wholesalers sell primarily to thos buying for resale or business use.
Channel functions - Selling & promoting: Buying and assortment building: Bulk breaking:
Warehousing: Transportation: Financing: Risk bearing: Market information: Management
services and advice.
Manufacturer's agents - (Also called manufacturers' representatives), are the most common type
of agent wholesaler.
Products and services - Wholesalers add customer value through the _________they offer.
Retail convergence - If you can't find a microwave you want at sears, you can step across the
street and find one for a better price. This merging of consumers, products, prices, and retailers is
called _________. Such convergence means greater competition for retailers and greater
difficutly in diferentiating the product assortments of different types of retailers.