BSG QUIZ 1 | BUSINESS STRATEGY
GAME EXAM 1 | QUESTIONS AND
ANSWERS RATED A+ | 100% CORRECT |
LATEST 2025/2026 GUIDE
What are the types of wholesale sales to independent footwear retailers
carry athletic footwear in BSG?
- Correct Answer - department stores, retail shoe and apparel stores,
discount chains, sporting goods stores, and pro shops at golf and tennis
clubs. (Worldwide, there are some 60,000 retail outlets for athletic
footwear scattered across the world. North
America and Europe-Africa each have 20,000 retail outlets selling
athletic footwear, while Latin America and the Asia-Pacific each have
10,000 retail outlets for athletic footwear.)
What are the three distribution channels athletic footwear makers have
for accessing consumers of athletic footwear?
- Correct Answer - Wholesale sales to independent footwear retailers
who carry athletic footwear, Online sales to consumers at the company's
website, and Private-label sales to large multi-outlet retailers of athletic
footwear.
,What is all manufacturers' traditional primary distribution channel for
selling branded footwear?
- Correct Answer - independent footwear retailers
Retail markups over the wholesale prices of footwear manufacturers can
run anywhere from 40% at discount chains to as high as 100% at
premium retailers. Thus, a pair of shoes wholesaling for $50 usually
retails for between $70 and $100.
- Correct Answer - True
Why do all footwear manufacturers operate websites to display and
actively merchandise their models and styles?
- Correct Answer - Partly because selling online gives the company
access to consumers not living close to retailers
carrying the company's brand and partly because growing numbers of
consumers like the convenience of shopping online.
Online sales of branded footwear have been growing steadily and now
account for _____ of total branded sales in each geographic region; this
percentage is expected to grow by 1% annually, reaching _____ of total
branded sales by Year 20. However, the management teams at all
companies have the discretion to place greater/lesser emphasis on
promoting online sales and thus may end up with online sales that are
above/below the industry average.
- Correct Answer - 15%; 25%; True
, The third channel—private-label sales to large chain store accounts—is
attractive for two reasons:
- Correct Answer - 1) The private-label segment is projected to grow a
healthy 12% annually during Years 11-15 and a brisk 10% during Years
16-20. The growth in private label sales is being driven largely by the
practice of multi-outlet chains to use lower-priced private-label goods to
attract price-conscious consumers. Chain retailers that sell athletic
footwear under their own label outsource the pairs they need from
manufacturers on a competitive-bid basis.
2) Making private-label pairs for chain retailers allows a manufacturer to
use production capability more efficiently. For example, a manufacturer
selling only 9 million branded pairs but having production capability of 11
million pairs (13.2 million pairs with maximum use of overtime) can
reduce overall costs per pair by utilizing some or all of its unused
capability to produce private-label pairs.
Consumer demand for athletic footwear is diverse in terms of
____________________ for which athletic footwear is worn. Many
buyers are satisfied with _______________________ while some are
quite willing to pay __________________________________. The
biggest market segment consists of customers who buy athletic shoes
for _________________, but there are sizable buyer segments for
specialty shoes designed expressly for walking, jogging, training,
aerobics, basketball, tennis, golf, soccer, bowling, and so on. The
diversity of buyer demand gives manufacturers room to pursue a variety
of strategies—from competing
GAME EXAM 1 | QUESTIONS AND
ANSWERS RATED A+ | 100% CORRECT |
LATEST 2025/2026 GUIDE
What are the types of wholesale sales to independent footwear retailers
carry athletic footwear in BSG?
- Correct Answer - department stores, retail shoe and apparel stores,
discount chains, sporting goods stores, and pro shops at golf and tennis
clubs. (Worldwide, there are some 60,000 retail outlets for athletic
footwear scattered across the world. North
America and Europe-Africa each have 20,000 retail outlets selling
athletic footwear, while Latin America and the Asia-Pacific each have
10,000 retail outlets for athletic footwear.)
What are the three distribution channels athletic footwear makers have
for accessing consumers of athletic footwear?
- Correct Answer - Wholesale sales to independent footwear retailers
who carry athletic footwear, Online sales to consumers at the company's
website, and Private-label sales to large multi-outlet retailers of athletic
footwear.
,What is all manufacturers' traditional primary distribution channel for
selling branded footwear?
- Correct Answer - independent footwear retailers
Retail markups over the wholesale prices of footwear manufacturers can
run anywhere from 40% at discount chains to as high as 100% at
premium retailers. Thus, a pair of shoes wholesaling for $50 usually
retails for between $70 and $100.
- Correct Answer - True
Why do all footwear manufacturers operate websites to display and
actively merchandise their models and styles?
- Correct Answer - Partly because selling online gives the company
access to consumers not living close to retailers
carrying the company's brand and partly because growing numbers of
consumers like the convenience of shopping online.
Online sales of branded footwear have been growing steadily and now
account for _____ of total branded sales in each geographic region; this
percentage is expected to grow by 1% annually, reaching _____ of total
branded sales by Year 20. However, the management teams at all
companies have the discretion to place greater/lesser emphasis on
promoting online sales and thus may end up with online sales that are
above/below the industry average.
- Correct Answer - 15%; 25%; True
, The third channel—private-label sales to large chain store accounts—is
attractive for two reasons:
- Correct Answer - 1) The private-label segment is projected to grow a
healthy 12% annually during Years 11-15 and a brisk 10% during Years
16-20. The growth in private label sales is being driven largely by the
practice of multi-outlet chains to use lower-priced private-label goods to
attract price-conscious consumers. Chain retailers that sell athletic
footwear under their own label outsource the pairs they need from
manufacturers on a competitive-bid basis.
2) Making private-label pairs for chain retailers allows a manufacturer to
use production capability more efficiently. For example, a manufacturer
selling only 9 million branded pairs but having production capability of 11
million pairs (13.2 million pairs with maximum use of overtime) can
reduce overall costs per pair by utilizing some or all of its unused
capability to produce private-label pairs.
Consumer demand for athletic footwear is diverse in terms of
____________________ for which athletic footwear is worn. Many
buyers are satisfied with _______________________ while some are
quite willing to pay __________________________________. The
biggest market segment consists of customers who buy athletic shoes
for _________________, but there are sizable buyer segments for
specialty shoes designed expressly for walking, jogging, training,
aerobics, basketball, tennis, golf, soccer, bowling, and so on. The
diversity of buyer demand gives manufacturers room to pursue a variety
of strategies—from competing
