general business data bank

Question # 00003612 Posted By: spqr Updated on: 11/16/2013 01:24 PM Due on: 11/30/2013
Subject Business Topic General Business Tutorials:
Question
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41.

When RedBox rents DVD movies from vending machines at McDonald's, it is acting as a channel captain, not a retailer.

True False

42.

Automatic vending accounts for 15 percent of total U.S. retail sales.

True False

43.

Door-to-door selling now accounts for less than 1 percent of retail sales in the United States.

True False

44.

Internationally, door-to-door selling is growing in popularity and, in the U.S., it accounts for more than 15 percent of all retail sales.

True False

45.

Electronic shopping, which puts catalogs on cable TV or Internet websites, has not yet succeeded.

True False

46.

Home shopping methods--like cable TV shopping channels and catalogs--now use a multichannel approach by adding a website.

True False

47.

It's best to think of retailing on the Internet as just another example of how low-margin mass-merchandisers appeal to large target markets with discount prices.

True False

48.

Many types of retailers are now establishing a presence on the Internet.

True False

49.

Today, about half of all computer hardware and software and a quarter of all books are sold online.

True False

50.

Retail sales on the Internet grew very rapidly at first, but now are expected to grow slowly.

True False

51.

Retailing on the Internet already accounts for about 25 percent of all retail sales.

True False

52.

It's usually possible for a consumer to get much more information about a product in a retail store than on the Web.

True False

53.

To overcome the limitation of not being able to physically inspect a product before purchasing online, many online retailers now provide photos and videos that demonstrate the product.

True False

54.

The Internet makes it easy to do comparison shopping of products and prices.

True False

55.

A consumer's total cost of shopping on the Internet includes delivery costs in addition to purchase price.

True False

56.

A large chain like Kohl's uses its website to supplement the product assortment in its brick-and-mortar stores.

True False

57.

Ace Hardware is a multichannel retailer that integrates online and brick-and-mortar stores (because its customers gather information online and then buy in a store or vice versa).

True False

58.

The "wheel of retailing" theory says that new retailers enter the market as high-status, high-margin, high-price operators and then evolve into discount stores as competition becomes more intense.

True False

59.

The development of department stores and supermarkets is explained by the "Wheel of Retailing" theory.

True False

60.

The "wheel of retailing" theory fails to explain some major retailing developments, such as vending machines and convenience food stores, which did not enter the market with a low-price emphasis.

True False

61.

The development of vending machines and convenience food stores is not explained by the "Wheel of Retailing" theory.

True False

62.

Scrambled merchandising is carrying any product lines a store thinks it can sell profitably.

True False

63.

"Scrambled merchandising" refers to the practice of conventional retailers handling many products within a limited-line, even though many of these products have to be sold at a low profit.

True False

64.

Retailers who carry any product line that will sell profitably are practicing "scrambled merchandising."

True False

65.

Scrambled merchandising means mixing product lines for higher profits.

True False

66.

The product life cycle concept applies to retailers as well as products.

True False

67.

Application of the product life cycle concept to retailing suggests that all types of retailers are in early market growth due to continually increasing family income.

True False

68.

The majority of all retailers in the U.S. have annual average sales of less than $1 million.

True False

69.

Less than 6 percent of all retail sales are made by smaller stores--those with sales of less than $1 million a year.

True False

70.

Less than 15 percent of retail stores in the U.S. have annual average sales of $5 million or more.

True False

71.

Almost 75 percent of all retail sales are made by the largest stores--those with sales of over $5 million a year.

True False

72.

The average retail store is too small to gain economies of scale.

True False

73.

Corporate chains are taking a smaller percentage of retail sales now that consumers are demanding lower prices.

True False

74.

The growth of cooperative chains of retail stores is due to the desire of small retailers to achieve some of the benefits of large-scale corporate chains.

True False

75.

"Cooperative chains" like True Value Hardware are retailer-sponsored groups formed by independent retailers to run their own buying organizations.

True False

76.

Cooperative chains tend to work with independent retailers, not corporate chain retailers.

True False

77.

"Voluntary chains" are retailer-sponsored groups--and "cooperative chains" are wholesaler-sponsored groups--that work together to better compete with corporate chains.

True False

78.

Voluntary chains like SuperValu in groceries are wholesaler-sponsored groups that work with "independent" retailers.

True False

79.

In a franchise operation, the franchisor develops a good marketing strategy, and the retail franchise holders carry out the strategy in their own units.

True False

80.

Franchise operations, such as Subway, Quiznos, Curves, The UPS Store, Jackson Hewitt Tax Service, Dunkin' Donuts, Jani-King, RE/MAX Int'l, 7-Eleven, and Liberty Tax Service account for about a third of all retail sales.

True False

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