Question 1 Instead of having to choose between making a profit or doing good for society , companies

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Question 1

Instead of having to choose between making a profit or doing
good for society, companies can combine __________ and _____________ to do both
while building a solid corporate reputation

A) ethics; publicity

B) cause marketing; exceptional products

C) corporate social responsibility; senior management

D) ethics; corporate social responsibility

E) cause marketing; corporate philanthropy

Question 2

It is critical for marketers to provide leadership in applying
ethics and ethical principles because:

A) senior management has little time or inclination to focus
on business or marketing ethics

B) marketers are seen as basically ethical as opposed to
salespeople, who cannot be relied upon to act ethically

C) the profession has been singled out for past abuses by a
minority of marketers, and the profession as a whole has a responsibility to
raise its profile

D) All of these

E) None of these

Question 3

The Johnson & Johnson Credo, developed by Robert Wood
Johnson, is often cited as an important document because:

A) Johnson was a leading philosopher of ethics who bridged
the gap between academic philosophy and the world of business

B) it was drafted as a response to the Tylenol recall, and
it demonstrated how effectively business could respond to external stimuli and

C) it places the focus clearly on shareholders who have the
greatest stake in the success of the firm

D) it guided company executives in a difficult
decision-making time with very specific advice

E) it became the standard and model for all pharmaceutical
companies who have improved on the timeliness of response

Question 4

Marketers have been identified with many different types of
unethical behavior Which of the following types of unethical behavior is LEAST
likely to be observed in marketing environments?

A) High pressure sales techniques

B) Deceptive sales tactics

C) Misrepresentation of company data

D) Misleading advertising

E) Kickbacks to corporate buyers from supply chain vendors

Question 5

Which of these is one of the “ethical norms” in
the AMA’s code of ethics?

A) The survival of the firm is essential; if it fails many
are without jobs and products

B) Marketers must do no harm

C) With constant attention to the dynamic marketplace,
marketers must also be prepared to make changes in ethical standards to keep

D) Marketers must respect the human dignity and human rights
of all stakeholders

E) Ethics are essential for any profession, but
professionalism cannot take priority over the needs of the firm

Question 6

Firms with ______________ tend to be more socially

A) a wide product line and global presence

B) longevity of at least 50 years

C) strong ethical climates

D) diverse senior management

E) strong profits

Question 7

The Ethical Decision-Making Framework includes all of the
following steps, EXCEPT:

A) identify

B) choose a
course of action

C) gather information and identify stakeholders

D) brainstorm and evaluate alternatives

E) consult appropriate regulatory officials

Question 8

What do the Ethical Decision-Making Metrics I and II
(Exhibits 36 and 38) offer the marketer?

A) A complete checklist of ethical issues when taken

B) A range of choices, although the marketer can only chose
one or the other

C) Protection from accusations of unethical behavior

D) Measurements of possible consequences

E) A framework for looking at multiple dimensions of an
issue at a time when the decision maker may be under stress

Question 9

When a major ethical issue arises, which of the following
stakeholders are likely to be affected?

A) Investors

B) Customers

C) Senior management

D) Community

E) All of these

Question 10

When developing a marketing strategy, ethics should:

A) be considered, but only after other basic parameters have
been set

B) be balanced against the higher-priority demands for
profits and returns to shareholders

C) be considered early in the planning phase to avoid having
to ask questions throughout the process

D) be considered throughout the process, using different
questions at different stages

E) be handled by outsiders or consultants, since the
marketers will likely be too involved with the details to be objective

Question 11

Scenarios are an excellent way to develop ethical decision
making because:

A) stories can be used to protect innocent people by
changing names and identifiers

B) stories are simple and direct, which makes the key points
of scenarios easier to grasp

C) scenarios are developed by professionals, which makes
them more effective

D) there are usually no single correct answers, and the
scenario approach offers different kinds of answers

E) scenarios don’t require students to apply principles or

Question 12

__________________ refer(s) to the actions of a firm to
address a wide range of social, environmental and ethical interactions with its
community Though somewhat controversial, these actions are significant in that
the company undertakes them voluntarily, and the firm realizes that these
actions can be profitable, too

A) Public relations and publicity

B) Corporate activism

C) Corporate social responsibility

D) A code of ethics

E) Corporate culture

Question 13

The consumer, the company and causes are considered CSR
_______________, while employee and financial well-being and awareness and
support of issues are considered CSR ________________

A) inputs; outputs

B) liabilities; assets

C) causes; effects

D) reasons; results

E) values; actions

16 Retailing ___________________ the supply chain

A sits at the end of

B is in the center of

C maximizes the length of

D creates rigidity in

E focuses on production in

17 Retailing is where marketing:

A is replaced by personal selling

B meets the consumer

C meets managing

D sells itself to the corporation

E creates corporate value

18 Retailers address customers’ needs for value by
providing goods and services:

A where the customer wants it

B when the customer wants it

C at the price the customer is willing to pay

D in the right color, size, or style the customer wants

E all of the above

19 Natalie is opening a retail store specializing in
hard-to-find gift items Before she opens

her store, what question will Natalie need to address?

A Where will customers want her products?

B When will customers want her products?

C What prices will customers be willing to pay?

D What assortment of products will customers want?

E all of the above


Chapter 16 – Retailing and Multi-Channel Marketing

20 Retailing is defined as the set of business activities

A focuses on a firm’s core values

B offers multiple supply chain relationships

C adds value to products and services sold to final

D separates wholesaling from manufacturing

E occurs in brick and mortar space

21 Which of the following is NOT one of the typical outlets
used by retailers?

A catalogs

B over the Internet

C restaurants

D business requests for proposals (RFPs)

E brick and mortar stores

22 The key factor distinguishing retailers from other
members of the supply chain is:

A they sell to consumers, businesses, and government

B they sell to everyone

C they use advertising to generate demand

D they employ people in personal selling

E they sell to customers for their personal use

23 Wholesalers sell to all of the following EXCEPT:

A businesses

B manufacturers

C retailers

D consumers

E industrial users


Chapter 16 – Retailing and Multi-Channel Marketing

24 Which of the following is NOT one of the broad factors
manufacturers must consider

when establishing a strategy for getting their products into
the hands of the ultimate


A Choosing retail partners

B Identifying types of retailers

C Facilitating retail strategy

D Managing a multichannel strategy

E all of the above are considered when establishing a

25 Aaron has designed innovative accessories for hard-core
bicycling enthusiasts He knows

where and how he will make them, and he needs to turn his
attention to the getting the

products to the customers As he chooses retail partners,
which of the following should he


A Look at the channel structure

B Determine where the target customers will expect to find
this kind of product

C Consider the characteristics of the channel members

D Consider distribution intensity

E All of the above

26 In the past, _____________________ dominated supply

A retailers

B manufacturers

C government

D wholesalers

E distributors

27 Today, _______________ dominate their supply chains

A large retailers

B manufacturers

C government

D wholesalers

E distributors


Chapter 16 – Retailing and Multi-Channel Marketing

28 Retailers like Wal-Mart, Home Depot, and Kroger dictate
to their suppliers all of the

following EXCEPT:

A which competitors they should collaborate with

B what should be made

C how products should be configured

D when products should be delivered

E what products should cost

29 The degree of difficulty a manufacturer will face in
trying to get retailers to purchase its

products will be determined by how vertically integrated the
channel is, the relative power of

the manufacturer and the retailer, and

A the warranties the product carries

B the success – or lack of success – in test markets

C the amount of marketing research the manufacturer has
done prior to the launch

D the strength of the brand and whether it is desired

E whether the product is seasonal

30 When a well-established firm has chosen a new product as
part of its growth strategy, it

may be required to find new retailers to carry the new
product One of the critical factors in

choosing new retail partners will be:

A the power of the brand

B its overall reputation as a manufacturer

C where customers might expect to find the manufacturer’s

D All of the above

E None of the above is particularly important

31 Knowing customer expectations is essential Retailers
need to know which manufacturers

their customers prefer, while manufacturers need to know

A if customers are using credit cards or cash to make

B how many outlets the retailers have

C where their target market customers expect to find their

D whether the products will fill self-actualization needs
through satisfying these expectations

E whether customers will find the store atmospherics
appropriate to the neighborhood or



Chapter 16 – Retailing and Multi-Channel Marketing

32 Generally, the larger and more sophisticated the channel
member, the less likely that they

will ______________

A use intermediaries

B rely on marketing research

C use multi-channel marketing

D use intensive distribution

E be concerned about competitive actions

33 John had worked for a well-known and very large retail
company He left that company to

go to a smaller company, and in doing so, he discovered that
the channel functions were

handled very differently in the smaller firm Looking back
at his experience, he noticed larger

firms ___________________

A perform many different channel functions themselves

B have more control in the channel

C can be more efficient

D can save money

E All of the above

34 There are three types of supply chain distribution

A intensive, exclusive, and selective

B primary, secondary and tertiary

C administered, vertical, and independent

D global, national, and local

E corporate, contractual, and independent

35 Some companies want to get its products into as many
outlets as possible, understanding

that the more exposure it gets, the more of its products it
will sell If this is consistent with the

company’s overall strategy, it will choose

A wide-coverage distribution

B collectively exhaustive distribution

C intensive distribution

D exclusive distribution

E selective distribution


Chapter 16 – Retailing and Multi-Channel Marketing

36 When Creative Pen Company designed a new,
ergonomically-friendly pen, they wanted

to, literally, get in the hands of as many consumers as
possible Creative Pen will likely

choose a(n) ______________ distribution intensity

A intensive

B exclusive

C selective

D collective

E variable

37 If a company has a limited supply or is just launching a
product, it might want to select

__________________, which would help ensure enough inventory
to ensure the customer has

an adequate selection

A trade restraint distribution

B selective distribution

C monopolistic distribution

D oligopolistic distribution

E exclusive distribution

38 Heartland Plantation produces classic food products like
stone-ground grits and wild rice

The company has limited production capacity and wants to
control where its products are

sold Heartland will likely choose a(n) __________________
distribution intensity

A intensive

B exclusive

C simplistic

D collective

E variable

39 ______________ distribution intensity helps a seller
maintain a particular image and

control the flow of merchandise into an area

A Intensive

B Endogenous

C Selective

D Collective

E Variable


Chapter 16 – Retailing and Multi-Channel Marketing

40 If a manufacturer wasn’t happy with either intensive or
exclusive distribution, a logical

choice, which incorporates some features from both, would be

A moderate distribution

B compromise distribution

C case by case distribution

D evolutionary distribution

E selective distribution

41 Full-line discount, category specialist, and specialty
stores are all ________________

types of retailers

A food

B general merchandise

C price sensitive

D limited demand

E special appeal

42 If a food producer had a full range of products, in a
number of different containers sizes,

which kind of store would the company NOT likely choose?

A conventional supermarket

B supercenter

C warehouse club

D convenience stores

E None of the above The producer should be in all of these

43 Paul’s family has owned and operated a small chain of
conventional supermarkets

Competition from a variety of other kinds of retailers has
adversely affected the business To

address the new competitive reality, Paul wants to apply
what he recently learned as a

marketing major and he has recommended his family should:

A emphasize products with a high gross margin

B target health-conscious and ethnics consumers with the
products that would appeal to them

C provide a better shopping environment within the store to
make it more appealing to


D offer more private label brands

E All of the above


Chapter 16 – Retailing and Multi-Channel Marketing

44 Supercenters have become the fastest retail growing
category by combining broad

assortments of groceries and general merchandise products
____________ dominates this

category with more than 80 percent of the supercenters in
the United States

A Target

B Meijer

C Kmart

D Kroger

E WalMart

45 If Ellen is shopping at a warehouse club, relative to a
supermarket, she can expect:

A an irregular assortment of food and general merchandise

B lower service

C lower prices

D products for both consumers and small businesses

E All of the above

46 A manufacturer of high-end products might consider
selling products in a warehouse club

if ________________________

A there were no high-end shopping centers within a 100-mile
radius of the warehouse club

B if the warehouse club has a good reputation

C if it is trying to capture additional market share

D it had overestimated demand or had a great deal of
returned merchandise from other


E the warehouse club wants to upgrade its image

47 ___________________ are combating competitive pressures
by offering fresh food and

healthy fast food, tailoring assortments to local marketing,
opening locations closer to where

consumers work and shop, and adding new services

A Warehouse clubs

B Supercenters

C Convenience stores

D Department stores

E Extreme value retailers


Chapter 16 – Retailing and Multi-Channel Marketing

48 Brian purchases a snack to eat on the way to work He
buys lunch while on the road

visiting customers Brian probably does the majority of this
food shopping at a:

A convenience store

B warehouse club

C conventional supermarket

D drugstore

E category specialist

49 If you walk into a __________________, you will likely
find a broad variety of

merchandise, deep assortment, and customer service, with
everything divided into what

appears to be a collection of specialty shops

A department store

B off-price retailer

C discount store

D specialty store

E category specialist

50 Kohl’s, JCPenney, and Bloomingdales are examples of:

A department stores

B off-price retailers

C discount stores

D extreme value stores

E category specialist stores

51 ___________________ are combating competitive pressures
by increasing the amount of

exclusive and private label merchandise, strengthening
customer loyalty programs and

expanding their online presence

A Convenience stores

B Department stores

C Full-line discount stores

D none of the above

E All of the above


Chapter 16 – Retailing and Multi-Channel Marketing

52 Retailers that offer a broad variety of merchandise,
limited services and low prices are

known as ______________________

A full-line discount stores

B convenience stores

C home improvement stores

D category specialists

E department stores

53 If you’re a manufacturer, and you want to showcase your
product in store that has a

narrow but deep selection of merchandise and where sales
associates can assist customers

with their selections, you’d likely choose:

A a category specialist

B a specialty store

C a department store

D an extreme value retailer

E a cross-over warehouse club

54 If you are a marketer for a manufacturer, and the
marketing mix for your product focuses

on very specific market segments, you’d like to sell your
product through:

A department stores

B category specialist stores

C extreme value retailers

D specialty stores

E All of the above

55 The retail category that has experienced sustained growth
due to the aging population is:

A category specialists

B convenience stores

C drugstores

D department stores

E full-line discount stores


Chapter 16 – Retailing and Multi-Channel Marketing

56 Category killers are also known as:

A full-line discount stores

B category specialists

C specialty stores

D warehouse clubs

E extreme value retailers

57 As a type of retailer, category specialists are fierce
competitors using:

A a wide variety of merchandise

B highly trained personnel throughout the stores

C a complete assortment in a specific category at low

D highly attractive loyalty programs

E All of the above

58 A retailer with an extensive assortment in a particular
category that potential competitors

do not bother to carry is called a(n):

A endemic specialty retailer

B house breaker

C market mammoth

D revolutionary

E category killer

59 ___________________ offer general merchandise at lower
prices and are often found in

lower-income urban and rural areas

A Department stores

B Off-price retailers

C Discount stores

D Extreme value stores

E Category specialist stores


Chapter 16 – Retailing and Multi-Channel Marketing

60 _______________ reduce costs and maintain low prices by
buying opportunistically from

manufacturers with excess inventory, offering limited
assortments and operating in low-rent


A Category killers

B Specialty stores

C Factory outlets

D Extreme value retailers

E Convenience stores

61 ________________ are likely to target low-income
consumers who demand national

brands, but cannot afford to buy large-sized packages

A Category killers

B Department stores

C Extreme value retailers

D Specialty stores

E Warehouse club stores

62 Off-price retailers can purchase merchandise at
one-fifth to one-fourth of the original

wholesale prices because they do not ask the suppliers for

A advertising allowances

B return privileges

C markdown adjustments

D delayed payments

E All of the above

63 ______________ offer an inconsistent assortment of
brand-name merchandise at low


A Department stores

B Specialty stores

C Category killers

D Off-price retailers

E None of the above


Chapter 16 – Retailing and Multi-Channel Marketing

64 Because of the way _______________ buy merchandise,
customers can never be

confident that the same merchandise will be in stock each
time they visit the store

A department stores

B off-price retailers

C discount stores

D downstream value stores

E category specialist stores

65 Consumers visiting __________________ often comment that
they feel like they are on a

treasure hunt, searching for a bargain

A department stores

B off-price retailers

C discount stores

D lower value stores

E category specialist stores

66 If you were a marketer for a manufacturer and you wanted
to improve revenues from

irregulars, production overruns and returns, you would be
attracted to using _____________

A department stores

B specialty stores

C category specialists

D factory outlets

E supercenters

67 Retailers with strong brand names of their own might
operate outlet stores to:

A sell excess inventory that might have to be sold at
markdown prices in regular stores

B compete with category specialist stores

C keep manufacturers from selling similar items in their
own factory stores

D train employees who will later be transferred to the main

E All of the above


Chapter 16 – Retailing and Multi-Channel Marketing

68 One of the most fundamental activities of retailers is
to provide

_______________________, satisfying the needs of their
target market

A wholesaling opportunities

B persuasive advertising

C the right mix of merchandise and services

D corrective price controls

E category killing profitability

69 Retailers address the conflict between consumers wanting
or needing only one item and

manufacturers wanting to produce and ship in quantity by

A reciprocity

B simplicity

C discounting

D storage

E extreme value labeling

70 It is often difficult for retailers to distinguish
themselves from their competitors through

the merchandise they carry because:

A they do not carry enough merchandise

B consumers no longer recognize brand equity

C big-box food retailers are shifting into specialty store
product lines

D there is not enough merchandise to go around

E competitors can purchase and sell many of the same
popular brands

71 One product strategy used by retailers to differentiate
themselves from competitors is:

A the use of private label brands

B discount pricing

C removing brand labels from their merchandise offerings

D JIT product delivery

E promotional product loyalty programs


Chapter 16 – Retailing and Multi-Channel Marketing

72 For retailers, promotion refers to:

A supply chain communication

B the relationship between price and product

C the image a store attempts to maintain through their
pricing strategy

D both their in-store environment and their mass media

E the seasonal discounts offered to move end-of-season

73 Retailers use ____________________ to get customers into
their stores

A in-store promotions

B specialty product displays

C supply chain relationships

D off-price wholesaling

E mass media advertising

74 Kim wants to maximize sales to the customers who walk
into her store Of the following,

Kim will likely focus on:

A in-store promotions

B specialty product lines

C supply chain relationships

D off-price wholesaling

E mass media advertising

75 _______________________ are subtle forms of promotion
that facilitate shopping in

retailers’ stores

A Billboards and electronic signs

B Store credit cards and gift cards

C Personal selling and volume discounts

D Quick response and just-in-time delivery systems

E Extreme value offers and specialty share of the wallet

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