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chapter 13
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Laura buys supplies for her catering business at a retailer that stocks a limited
selection of items, which are sold in bulk on a cash-and-carry basis to members
only. As she browses through a huge store, she buys flour, a set of muffin pans,
and a package of paper towels as well as an assortment of fresh produce. Laura is
most likely shopping at a(n):
A) off-price discount retailer
B) factory outlet
C) industrial supply warehouse
D) warehouse membership club
E) wholesale outlet
A D
A _____ is an off-price retailer that is owned and operated by a manufacturer and
carries one line of merchandise--its own.
A) mass merchandiser
B) factory outlet
C) wholesale club
D) discount store
E) bargain basement store
A B
Well-known manufacturers such as Nike, Liz Claiborne, and Mikasa have decided
the most profitable way to dispose of out-of-season and irregular stock is to open
stores and sell their own merchandise. These stores are types of:
A) seasonal outlets
B) mass merchandisers
C) factory outlets
D) discount stores
E) bargain basements
A C
_____ refers to shopping without visiting a store and is currently growing faster
than in-store shopping because of the consumer demand for convenience.
A) Nonstore retailing
B) Customerization
C) Hypershopping
D) Niche marketing
E) Specialty merchandising
A A
Which of the following statements about nonstore retailing is true?
A) The nature of the
communications between the
retailer and the customer is the
same in all forms of nonstore
retailing.
B) Nonstore retailing is
currently growing faster than in-
store retailing.
C) More than 80 percent of all
sales are made through nonstore
retailing.
D) The high growth rate for
nonstore retailing is due to the
growth of TV home shopping.
A B
E) Nonstore retailing is
increasing at a rate lower than
in-store retailing.
Which of the following statements about online retailing is true?
A) Online retailing is also called
e-merchandising.
B) After a rapid increase in
sales, the popularity of online
retailing has declined over the
last decade.
C) Most traditional retailers are
using online retailing to move
merchandise that can be
purchased at their stores.
D) The earliest use of online
retailing was for Internet
auctions.
E) All of these statements about
online retailing are true.
A C
A retailer in Peoria, Illinois, is licensed to sell Snapper lawn mowers. This retailer
is a:
A) product and trade name
franchisee
B) redistributor franchisor
C) business format franchisee
D) licensed franchisor
E) relationship franchisee
A A
Interactivity is one of the new developments in retailing. In retailing, interactivity
refers to:
A) the use of improved
communications with customers
B) a new form of customer
relationship marketing
C) entertainment for customers
to get them involved
D) the use of information kiosks
E) the creation of a static
atmosphere
A C
One of the new developments in retailing is m-commerce. M-commerce refers to A) use unique communication A D
the ability to: techniques to send advertising
messages
B) create situations in which the
AIDA technique is effective
C) more efficiently manage
customer demand with
inventory
D) shop using wireless mobile
devices
E) motivate consumers to buy
more by creating more feedback
channels
A retail store can be classified according to its:
A) distribution method
B) inventory control
C) product assortment
D) management style
E) decor and atmosphere
A C
Applying what you have learned about retailing, which type of retail store would
typically have the highest labor costs?
A) warehouse club
B) department store
C) off-price store
D) off-price retailer
E) discount store
A B
The _____ at John Lewis, Britain’s largest department store chain, selects the
merchandise for his or her department and is often responsible for its promotion
and for managing the personnel in that department.
A) buyer
B) purchasing agent
C) retail broker
D) merchandiser
E) franchisee
A A
A _____ is not only a type of store, but also a method of retail operations. This
type of retailer specializes in a given type of merchandise with a deep but narrow
assortment.
A) warehouse club
B) convenience store
C) factory warehouse store
D) specialty store
E) general store
A D
Which of the following environmental trends is most directly influencing
supermarket operations?
A) Regional malls are hosting
fewer anchor stores. A C
B) To make a profit,
supermarkets are having to
carry products with high gross
margins.
C) The number of dual-income
and single-parent families is
increasing.
D) Recessionary trends are
decreasing the amount of money
spent on nonfood items.
E) Consumers are more inclined
to pamper themselves.
When supermarkets offer a wide variety of nontraditional goods and services
under one roof, they are engaged in:
A) cross-selling
B) trading up
C) scrambled merchandising
D) disintermediation
E) cross-docking
A C
The initial attraction of drugstores for consumers was the pharmaceuticals they
carried, but now consumers can have their prescriptions filled at mass
merchandisers, and supermarkets and through the mail. What have drugstores
done to remain competitive?
A) raised their prices
B) taken legal steps to prevent
the sale of prescription drugs at
supermarkets
C) provided customers with
value-added services
D) introduced generic
prescription medicines
E) nothing
A C
_____ carry a limited line of high-turnover, high-priced goods and resemble
miniature supermarkets. These self-service stores are typically located near
residential areas and are open long hours, seven days a week.
A) Specialty stores
B) Wholesale stores
C) Convenience stores
D) Factory outlets
E) General stores
A C
_____ are single-line stores that offer a nearly complete selection of one line of
merchandise and use self-service, discount prices, high volume, and high turnover
of merchandise to their advantage.
A) Specialty discount stores
B) Factory outlets
C) Mass merchandisers
A A
D) Membership clubs
E) General stores
Arby's, Jiffy-Lube, Baskin-Robbins, and Sylvan Learning Centers are examples of
_____ because the franchisee buys the right to use the franchisor’s approach to
doing business.
A) trade name franchising
B) product franchising
C) business format franchising
D) franchise wholesaling
E) logistic franchising
A C
Data mining:
A) is a relatively new method of
inventory control
B) uses complex mathematical
models to help retailers make
better product mix decisions
C) is a computerized technique
for making site location
decisions
D) determines the level of
quality and service desired by
customers
E) measures levels of services
and identifies inadequate service
A B
A recent pricing trend among retailers is EDLP, which stands for:
A) electronic data laser
purchasing
B) efficient data long-range
planning
C) everyone doing large
purchases
D) everyday low pricing
E) efficient dollar loss planning
A D
Texas-based Grape Vine Market is an 18,000-square-foot store offering highly
collectible food and wine. Greeted by warm lighting, a muted color scheme, and
REM or Fleetwood Mac on the sound system, customers first enter the wine
department, a 10,000-square-foot oval featuring more than 5,500 labels from
around the world. There are no aisles; instead racks are arranged asymmetrically
to create flow and movement. This description is of the store's:
A) cultural impact
B) atmosphere
C) target strategy
D) merchandise mix
E) promotional strategy
A B
A warehouse membership club:
A) only sells to ultimate
consumers
B) is a type of category
specialist
C) offers a medium level of
customer service
D) tends to have more educated
and more affluent customers
than other retail establishments
E) has extensive merchandise
depth, which it uses to create
demographic positioning
A D
Which of the following statements about restaurants is true?
A) Restaurants are clearly a
retailing establishment.
B) There is a strong demand for
many more restaurants.
C) The demographic issue of
time-poor consumers has led to
a growing demand for
restaurants.
D) Because barriers to entry are
low, the restaurant business
appeals to many people.
E) Restaurants are clearly a
service industry.
A D
Specialty stores such as Office Depot, Bed Bath & Beyond, and Staples are often
called category killers because:
A) they can destroy the profit
potential for a category of
merchandise for other retailers
B) they are located at stand-
alone sites
C) of their broad merchandise
mix and shallow assortment
D) they offer an exclusive
category of merchandise
E) they carry only fast-selling
A A
items
Which of the following statements about nonstore retailing is true?
A) The nature of the
communications between the
retailer and the customer is the
same in all forms of nonstore
retailing.
B) Nonstore retailing is
currently growing faster than in-
store retailing.
C) More than 80 percent of all
sales are made through nonstore
retailing.
D) The high growth rate for
nonstore retailing is due to the
growth of TV home shopping.
E) Nonstore retailing is
increasing at a rate lower than
in-store retailing.
A B
_____ refers to the techniques used to get consumers to buy from their home.
Those techniques include direct mail, catalogs and mail order, telemarketing, and
electronic retailing.
A) Nonstore vending
B) In-home retailing
C) Franchising
D) Direct marketing
E) Direct retailing
A D
Irina Gomez has decided to sell a sourcebook of Hispanic American suppliers to
southeastern businesses in predominantly Hispanic areas. She plans to call
prospective customers and try to sell to them over the phone. Gomez will be using
which of the following retailing techniques?
A) m-commerce
B) indirect retailing
C) franchising
D) vending
E) direct-response marketing
A E
_____ is the use of a telephone to sell directly to customers.
A) Telemarketing
B) Two-way vending
C) Teleprompting
D) Indirect marketing
E) Phone vending
A A
Telemarketing can consist of either unsolicited _____ sales calls, or _____ sales A) order placement; lead A E
calls, which allow companies to receive orders through toll-free telephone
numbers.
generation
B) push strategy; pull strategy
C) systematic; synergistic
D) qualifying; finalizing
E) outbound; inbound
A(n) _____ is a continuing relationship in which an individual or business grants
business rights to operate or sell a product to another individual or business.
A) leasing contract
B) alliance for profit
C) brokered partnership
D) franchise
E) countertrade
A D
_____ is defined as all activities directly related to the sale of goods and services
to the ultimate consumer for personal, nonbusiness use or consumption.
A) Wholesaling
B) Retailing
C) Business
D) Franchising
E) Distribution
A B
Around the world, most retailers are _____, operating one or a few stores in their
community, owned by a single person or partnership and not operated as part of a
larger retail institution.
A) independent retailers
B) chain stores
C) franchise outlets
D) specialty clubs
E) product assortment stores
A A
Ansonia owns and operates her own janitorial service, but the establishment is
licensed by Maid2Clean. Ansonia’s cleaning service is a:
A) doubly managed outlet
B) chain store
C) franchise
D) independent retailer
E) licensor
A C
Applying what you have learned about retailing, which type of retail store would
typically have the highest labor costs?
A) warehouse club
B) department store
C) off-price store
D) off-price retailer
E) discount store
A B
_____ are retailers that compete on the basis of low prices, high turnover, and
high volume.
A) Convenience outlets
B) Discount stores
C) General stores
A B
D) Department stores
E) Specialty stores
_____ carry a broad assortment of nationally branded hard goods (broader than a
department store) and offer customers very limited service. National chains
dominate this segment.
A) Full-line discount stores
B) Discount specialty stores
C) Factory outlets
D) Fashion stores
E) Specialty supercenters
A A
A marketing research company has created a database that contains monthly
average retail price data for selected cuts of beef, pork, chicken, turkey, lamb, and
veal. In addition to prices of various cuts of meat, the database includes
information on the volume sold and the volume of "featured" products sold under
retailers' weekly advertised specials and frequent shopper discounts. These data
are collected at the point of sale by supermarkets using electronic scanners in
checkout lines. The database allows users to use _____ to determine what meat
should be stocked and when it should be stocked.
A) data mining
B) information dredging
C) an information management
system
D) a retail paradigm
E) correlation and trend
analyses
A A
As competition in the retail industry has intensified, Office Depot has begun
selling a _____ of office furnishings with the Christopher Lowell brand. Office
Depot is the only place that you will find the Christopher Lowell brand. The
prices of this merchandise are lower than prices for national brands and give
consumers greater value.
A) private brand
B) generic brand
C) family brand
D) promotional brand
E) specialty brand
A A
Which of the following statements about a retailer's promotion strategy is true?
A) The design of the promotion
strategy would be done
separately from the creation of
the retailing mix.
B) The goal of a retail store's
promotion mix is to position the
store in consumers' minds.
C) Most advertising for retailers
is carried out at the national
level.
D) Retailers find direct-mail
marketing inefficient.
E) Retail promotion strategy
does not include public relations
A B
activities.
_____ place a diverse group of retailers together in one location. This form of
retail location first became popular in the 1950s when the U.S. population started
migrating to the suburbs.
A) Freestanding lifestyle centers
B) Shopping centers
C) Mass merchandising centers
D) Scrambled merchant areas
E) Mega-malls
A B
The newest generation of shopping centers is:
A) regional malls
B) shopping business districts
C) lifestyle centers
D) franchised centers
E) strip malls
A C
When JCPenney announced it would open a 97,000-plus square foot anchor store
in the new West Grand Promenade, it meant that JCPenney would be:
A) the only large store in the
shopping center
B) a destination store
C) expected to create heavy foot
traffic for the center
D) in an isolated location
outside the shopping center
structure
E) unable to control the local
store's pricing policies
A C
The main element of a store's presentation is its _____, or the overall impression
conveyed by the store's physical layout, decor, and surroundings.
A) merchandise depth
B) location
C) price strategy
D) atmosphere
E) total merchandise mix
A D
A warehouse membership club:
A) only sells to ultimate
consumers
B) is a type of category
specialist
C) offers a medium level of
customer service
D) tends to have more educated
and more affluent customers
A D
than other retail establishments
E) has extensive merchandise
depth, which it uses to create
demographic positioning
Off-price retailers:
A) are often able to take
advantage of manufacturers'
faulty sales forecasting
B) very often offer a consistent
assortment of merchandise
C) seldom stock brand-name
merchandise
D) are owned by the
manufacturer of the products
they sell
E) offer very deep assortments
A A
Specialty stores such as Office Depot, Bed Bath & Beyond, and Staples are often
called category killers because:
A) they can destroy the profit
potential for a category of
merchandise for other retailers
B) they are located at stand-
alone sites
C) of their broad merchandise
mix and shallow assortment
D) they offer an exclusive
category of merchandise
E) they carry only fast-selling
items
A A
_____ sell a limited selection of brand-name appliances, household items, and
groceries, usually in bulk on a cash-and-carry basis to members only.
A) Super outlets
B) Factory outlets
C) Wholesale discounters
D) Off-price discount retailers
E) Warehouse membership
clubs
A E
To counter decreasing sales, U.S. direct sales retailers are: A) exploring sales opportunities
in other countries A E
B) selling at workplaces in
addition to the more traditional
at-home sales
C) setting up kiosks in malls in
which to sell their products
D) using direct mail and
telemarketing
E) doing all of these
Sunni received a phone call last night during supper. The caller wanted her to
subscribe to a travel magazine. Since Sunni had never thought of purchasing this
type of magazine before she received the call, this is obviously an example of
_____ telemarketing.
A) outbound
B) field sales
C) qualifying
D) inbound
E) relationship
A A
The Mad Stencilist has decided to demonstrate how to use its products to create
custom gift tags on a local cable television channel and encourage shoppers to call
a toll-free number to purchase the merchandise with a credit card. This form of
retailing is called a(n):
A) in-store electronic shopping
B) videotex
C) shop-at-home network
D) electronic point of sale
E) catalog viewing
A C
The Home Depot has selected orange as its corporate color. It's a good choice. At
the gut level, orange connotes happiness and warmth. A recent article in one of
the company's advertising brochures spoke about choosing colors for home
decorating. It referred to this color as "joyful orange" The color orange is part of
the _____ at The Home Depot stores.
A) cultural impact
B) atmosphere
C) target strategy
D) merchandise mix
E) promotional strategy
A B
Whenever a customer buys a stencil at Stencil Works, a sales clerk asks the
customer whether she needs brushes, paints, or tape for her stenciling project. In
other words, the sales clerk engages in:
A) suggestion selling
B) trading up
C) bait and switch
D) customer relationship
retailing
E) service-disguised selling
A A
One of the new developments in retailing is m-commerce. The m- in commerce
stands for:
A) motivated
B) multimedia
C) marketing
D) managed
E) mobile
A E
_____ is defined as all activities directly related to the sale of goods and services
to the ultimate consumer for personal, nonbusiness use or consumption.
A) Wholesaling
B) Retailing
C) Business
D) Franchising
E) Distribution
A B
Which of the following is the best example of a retailer?
A) the public library
B) a radio station
C) a real estate company
D) the local Humane Society
E) an advertising agency
A C
A retail store can be classified according to its:
A) distribution method
B) inventory control
C) product assortment
D) management style
E) decor and atmosphere
A C
Small neighborhood florists, shoe stores, and ethnic food markets are most likely
to be:
A) supercenters
B) franchise outlets
C) membership clubs
D) chain stores
E) independent retailers
A E
Which of the following statements about specialty stores is true?
A) Customers usually consider
price to be the most important
factor in their selection of a
specialty store.
B) Customers at specialty stores
are not concerned with the
distinctiveness of the
merchandise or the store's
physical appearance.
C) Specialty stores typically
avoid price wars.
D) Specialty stores are
ineffective test markets.
E) A typical specialty store
A C
carries a wider assortment of
specialty merchandise than
department stores.
Texas-based Grape Vine Market is an 18,000-square-foot store offering highly
collectible food and wine—along with some other culinary perks, including a
cooking school—all in a setting crafted to make shoppers feel comfortable. It
stocks more than 5,500 different kinds of wine. This description alone is enough
to tell you that Grape Vine Market is best described as a:
A) hypermarket
B) convenience store
C) specialty store
D) department store
E) general store
A C
Giant Eagle is a chain of retail outlets in the U.S. Midwest that are described as
large, departmentalized, self-service stores that specialize in wide assortments of
foodstuffs and limited nonfood items. Giant Eagle stores are:
A) off-price retailers
B) discount stores
C) wholesale clubs
D) convenience stores
E) supermarkets
A E
When supermarkets offer a wide variety of nontraditional goods and services
under one roof, they are engaged in:
A) cross-selling
B) trading up
C) scrambled merchandising
D) disintermediation
E) cross-docking
A C
Home Depot Fuel is the name of a chain of convenience stores owned and
operated by The Home Depot. These stores typically sell gas and are located just
outside The Home Depot warehouse store. What else do you know about the Fuel
convenience stores?
A) They carry a wide
assortment of products.
B) They carry a limited line of
high-turn goods.
C) They compete on the basis of
low price
D) They carry a limited but
deep assortment of products.
E) They carry the same
merchandise found in The
Home Depot.
A B
_____ carry a broad assortment of nationally branded hard goods (broader than a
department store) and offer customers very limited service. National chains
dominate this segment.
A) Full-line discount stores
B) Discount specialty stores
C) Factory outlets
D) Fashion stores
E) Specialty supercenters
A A
Kmart utilizes a strategy of moderate to low prices on large quantities of products
and lower levels of service to stimulate a high turnover of inventory. Kmart offers
a wide variety of different product lines. Kmart is an example of a:
A) factory outlet
B) mass merchandiser
C) convenience store
D) franchising operation
E) specialty store
A B
When opening a new retail operation, the retailer needs to consider all of the
following factors EXCEPT:
A) traffic flow
B) employee density
C) nature of the competition
D) land costs
E) area growth
A B
Laura buys supplies for her catering business at a retailer that stocks a limited
selection of items, which are sold in bulk on a cash-and-carry basis to members
only. As she browses through a huge store, she buys flour, a set of muffin pans,
and a package of paper towels as well as an assortment of fresh produce. Laura is
most likely shopping at a(n):
A) off-price discount retailer
B) factory outlet
C) industrial supply warehouse
D) warehouse membership club
E) wholesale outlet
A D
A publisher of books on holiday decorating, cooking, and crafts has to find a way
to dispose of its overrun and unsold end-of-season output. As a marketing
consultant, you suggest the firm sell the merchandise to:
A) mass merchandisers
B) convenience stores
C) department stores
D) supermarkets
E) off-price discount retailers
A E
Which of the following statements about nonstore retailing is true?
A) The nature of the
communications between the
retailer and the customer is the
same in all forms of nonstore
retailing.
B) Nonstore retailing is
currently growing faster than in-
store retailing.
C) More than 80 percent of all
sales are made through nonstore
retailing.
D) The high growth rate for
nonstore retailing is due to the
growth of TV home shopping.
A B
E) Nonstore retailing is
increasing at a rate lower than
in-store retailing.
_____ is a low-profile, yet important, form of retailing in which consumers get
products out of automated machines, and it accounts for $40 billion worth of sales
each year in the United States.
A) Automatic vending
B) Party-plan selling
C) Direct marketing
D) A pyramid scheme
E) Professional selling
A A
_____ refers to the techniques used to get consumers to buy from their home.
Those techniques include direct mail, catalogs and mail order, telemarketing, and
electronic retailing.
A) Nonstore vending
B) In-home retailing
C) Franchising
D) Direct marketing
E) Direct retailing
A D
Telemarketing can consist of either unsolicited _____ sales calls, or _____ sales
calls, which allow companies to receive orders through toll-free telephone
numbers.
A) order placement; lead
generation
B) push strategy; pull strategy
C) systematic; synergistic
D) qualifying; finalizing
E) outbound; inbound
A E
The Mad Stencilist has decided to demonstrate how to use its products to create
custom gift tags on a local cable television channel and encourage shoppers to call
a toll-free number to purchase the merchandise with a credit card. This form of
retailing is called a(n):
A) in-store electronic shopping
B) videotex
C) shop-at-home network
D) electronic point of sale
E) catalog viewing
A C
Whenever a customer buys a stencil at Stencil Works, a sales clerk asks the
customer whether she needs brushes, paints, or tape for her stenciling project. In
other words, the sales clerk engages in:
A) suggestion selling
B) trading up
C) bait and switch
D) customer relationship
retailing
E) service-disguised selling
A A
_____ is defined as all activities directly related to the sale of goods and services
to the ultimate consumer for personal, nonbusiness use or consumption.
A) Wholesaling
B) Retailing
C) Business
A B
D) Franchising
E) Distribution
_____ shows how much the retailer makes as a percentage of sales after the cost
of goods sold is subtracted.
A) Net income
B) Retained earnings
C) Profitability
D) Net equity
E) Gross margin
A E
As a general rule of thumb, a retailer that has a high gross margin will have:
A) m-commerce capabilities
B) an inventory management
system
C) low prices
D) salespeople trained in cross-
selling techniques
E) high prices
A E
Spar is Ireland's largest supermarket chain. Which of the following is the most
likely reason why Spar supermarkets sell all types of foodstuffs as well as
nonfood products including a wide range of firearms and gun accessories?
A) consumer demand for one-
stop shopping often leads to
scrambled merchandising
B) the fulfillment of the wheel
of retailing hypothesis
C) inflationary economic
climate
D) repositioning as a discounter
E) growth of convenience
merchandising
A A
According to the text, one way supermarkets establish long-term relationships
with their customers is to:
A) conduct longitudinal focus-
group studies
B) avoid any obviously ethnic
appeal
C) limit the number of nonfood
items carried by the stores
D) create and use loyalty
marketing programs
E) create customer correlation
studies
A D
Home Depot Fuel is the name of a chain of convenience stores owned and
operated by The Home Depot. These stores typically sell gas and are located just
outside The Home Depot warehouse store. What else do you know about the Fuel
convenience stores?
A) They carry a wide
assortment of products.
B) They carry a limited line of
high-turn goods.
C) They compete on the basis of
low price
D) They carry a limited but
deep assortment of products.
E) They carry the same
merchandise found in The
Home Depot.
A B
Prices are usually higher in convenience stores than in supermarkets because
convenience stores offer:
A) more specialty goods
B) a wider variety of products
C) a higher level of customer
services
D) better location, longer hours,
and faster service
E) higher quality goods
A D
The first task of developing a retail strategy is to:
A) create a buying organization
B) decide what to buy
C) define the target market
D) create a promotional strategy
E) define the pricing policies
A C
Retailers control the six Ps of the retailing mix. The six Ps include the marketing
mix plus:
A) personnel and presentation
B) production and people
C) potential and perception
D) personality and persuasion
E) positioning and purchasing
A A
_____ are stores that consumers purposely plan to visit. They are often built as
freestanding stores.
A) Destination stores
B) Benefit retailers
C) Relationship builders
D) Lifestyle stores
E) M-stores
A A
Large retailers such as Target and Wal-Mart and sellers of shopping goods such as A) remote, rural locations A D
automobiles and furniture often use _____ for their locations. B) office complexes
C) factory outlets
D) freestanding stores
E) regional malls
The newest generation of shopping centers is:
A) regional malls
B) shopping business districts
C) lifestyle centers
D) franchised centers
E) strip malls
A C
In September 2005, JCPenney opened a 97,000-plus square foot anchor store in
the new West Grand Promenade. One advantage that JCPenney has because it is
inside the shopping center is:
A) cheap lease agreement
B) potential of direct
competition within the shopping
center
C) lease restrictions on hours of
operation
D) inadequate parking
E) none of these
A E
Many technologically advanced retailers are using a technique called _____ to
analyze the huge amounts of data collected through their point-of-purchase
scanning equipment. The analysis looks for products that are commonly
purchased together to help retailers merchandise their stores to place products in
the right places.
A) market-basket analysis
B) simulated test marketing
C) product/customer correlation
analysis
D) market cross-tabulations
E) customer lifestyle analysis
A A
Well-known manufacturers such as Nike, Liz Claiborne, and Mikasa have decided
the most profitable way to dispose of out-of-season and irregular stock is to open
stores and sell their own merchandise. These stores are types of:
A) seasonal outlets
B) mass merchandisers
C) factory outlets
D) discount stores
E) bargain basements
A C
Telemarketing can consist of either unsolicited _____ sales calls, or _____ sales
calls, which allow companies to receive orders through toll-free telephone
numbers.
A) order placement; lead
generation
B) push strategy; pull strategy
C) systematic; synergistic
D) qualifying; finalizing
E) outbound; inbound
A E
Sunni received a phone call last night during supper. The caller wanted her to
subscribe to a travel magazine. Since Sunni had never thought of purchasing this
type of magazine before she received the call, this is obviously an example of
_____ telemarketing.
A) outbound
B) field sales
C) qualifying
D) inbound
E) relationship
A A
A retailer in Peoria, Illinois, is licensed to sell Snapper lawn mowers. This retailer
is a:
A) product and trade name
franchisee
B) redistributor franchisor
C) business format franchisee
D) licensed franchisor
E) relationship franchisee
A A
General Nutrition Center, Uniglobe Travel, and Wendy’s are all examples of
_____ because the franchisee buys the right to use the franchisor’s approach to
doing business.
A) product and trade name
franchisors
B) redistributor franchisors
C) business format franchisors
D) licensed franchisors
E) relationship franchisors
A C
Whenever a customer buys a stencil at Stencil Works, a sales clerk asks the
customer whether she needs brushes, paints, or tape for her stenciling project. In
other words, the sales clerk engages in:
A) suggestion selling
B) trading up
C) bait and switch
D) customer relationship
retailing
E) service-disguised selling
A A
When Boris went into Sears to buy his wife a new iron for her birthday, he only
planned to spend about $30, but the sales clerk was able to show him the
superiority of a $60 iron to the less expensive model. In this example, the sales
clerk engaged in:
A) suggestion selling
B) trading up
C) bait and switch
D) customer relationship
retailing
E) service-disguised selling
A B
One of the new developments in retailing is m-commerce. The m- in commerce
stands for:
A) motivated
B) multimedia
C) marketing
D) managed
E) mobile
A E
Which of the following is the best example of a retailer?
A) the public library
B) a radio station
C) a real estate company
D) the local Humane Society
E) an advertising agency
A C
Ansonia owns and operates her own janitorial service, but the establishment is
licensed by Maid2Clean. Ansonia’s cleaning service is a:
A) doubly managed outlet
B) chain store
C) franchise
D) independent retailer
E) licensor
A C
Housing several departments under one roof, a _____ carries a wide variety of
shopping and specialty goods and provides a high level of service.
A) supermarket
B) specialty store
C) convenience store
D) super club
E) department store
A E
Giant Eagle is a chain of retail outlets in the U.S. Midwest that are described as
large, departmentalized, self-service stores that specialize in wide assortments of
foodstuffs and limited nonfood items. Giant Eagle stores are:
A) off-price retailers
B) discount stores
C) wholesale clubs
D) convenience stores
E) supermarkets
A E
When supermarkets offer a wide variety of nontraditional goods and services
under one roof, they are engaged in:
A) cross-selling
B) trading up
C) scrambled merchandising
D) disintermediation
E) cross-docking
A C
_____ carry a broad assortment of nationally branded hard goods (broader than a
department store) and offer customers very limited service. National chains
dominate this segment.
A) Full-line discount stores
B) Discount specialty stores
C) Factory outlets
D) Fashion stores
E) Specialty supercenters
A A
Arby's, Jiffy-Lube, Baskin-Robbins, and Sylvan Learning Centers are examples of
_____ because the franchisee buys the right to use the franchisor’s approach to
doing business.
A) trade name franchising
B) product franchising
C) business format franchising
A C
D) franchise wholesaling
E) logistic franchising
Large retailers such as Target and Wal-Mart and sellers of shopping goods such as
automobiles and furniture often use _____ for their locations.
A) remote, rural locations
B) office complexes
C) factory outlets
D) freestanding stores
E) regional malls
A D
The Summer Place has decided consumers will be drawn to its offering of wicker
furniture and will even be willing to drive out of their way. The store really needs
to keep its overhead costs (such as rent) low and wants to avoid locating near
competitors. For a location, the Summer Place will probably choose a:
A) factory outlet
B) strip center
C) freestanding store
D) shopping center
E) regional mall
A C
The newest generation of shopping centers is:
A) regional malls
B) shopping business districts
C) lifestyle centers
D) franchised centers
E) strip malls
A C
Which group is the targeted market by lifestyle centers?
A) teenagers who don't drive
B) consumers on a fixed income
C) laggards
D) upper-income consumers
with an aversion for “the mall”
E) people who engage in
cocooning
A D
Les Ailes de la Mode is a Quebec retailer that wants to portray an image of quality
to help reinforce its prestige image. The key element in this store's positioning
strategy and classification would be:
A) price
B) placement
C) personnel
D) promotion
E) product
A A
Many technologically advanced retailers are using a technique called _____ to
analyze the huge amounts of data collected through their point-of-purchase
scanning equipment. The analysis looks for products that are commonly
purchased together to help retailers merchandise their stores to place products in
A) market-basket analysis
B) simulated test marketing
C) product/customer correlation
analysis
A A
the right places. D) market cross-tabulations
E) customer lifestyle analysis
Texas-based Grape Vine Market is an 18,000-square-foot store offering highly
collectible food and wine. Greeted by warm lighting, a muted color scheme, and
REM or Fleetwood Mac on the sound system, customers first enter the wine
department, a 10,000-square-foot oval featuring more than 5,500 labels from
around the world. There are no aisles; instead racks are arranged asymmetrically
to create flow and movement. This description is of the store's:
A) cultural impact
B) atmosphere
C) target strategy
D) merchandise mix
E) promotional strategy
A B
_____ refers to shopping without visiting a store and is currently growing faster
than in-store shopping because of the consumer demand for convenience.
A) Nonstore retailing
B) Customerization
C) Hypershopping
D) Niche marketing
E) Specialty merchandising
A A
Specialty stores such as Office Depot, Bed Bath & Beyond, and Staples are often
called category killers because:
A) they can destroy the profit
potential for a category of
merchandise for other retailers
B) they are located at stand-
alone sites
C) of their broad merchandise
mix and shallow assortment
D) they offer an exclusive
category of merchandise
E) they carry only fast-selling
items
A A
Chez Amie manufactures children's clothing for infants and toddlers. Its has its
sales representatives set up parties at homes of mothers of preschool children so
that its sales reps can demonstrate the quality and value of the Chez Amie
products. Chez Amie is using:
A) direct-response marketing
B) vending
C) personal marketing
D) selling representation
E) direct retailing
A E
To counter decreasing sales, U.S. direct sales retailers are:
A) exploring sales opportunities
in other countries
B) selling at workplaces in
addition to the more traditional
at-home sales
A E
C) setting up kiosks in malls in
which to sell their products
D) using direct mail and
telemarketing
E) doing all of these
_____ refers to the techniques used to get consumers to buy from their home.
Those techniques include direct mail, catalogs and mail order, telemarketing, and
electronic retailing.
A) Nonstore vending
B) In-home retailing
C) Franchising
D) Direct marketing
E) Direct retailing
A D
_____ is the use of a telephone to sell directly to customers.
A) Telemarketing
B) Two-way vending
C) Teleprompting
D) Indirect marketing
E) Phone vending
A A
Sunni received a phone call last night during supper. The caller wanted her to
subscribe to a travel magazine. Since Sunni had never thought of purchasing this
type of magazine before she received the call, this is obviously an example of
_____ telemarketing.
A) outbound
B) field sales
C) qualifying
D) inbound
E) relationship
A A
The Mad Stencilist has decided to demonstrate how to use its products to create
custom gift tags on a local cable television channel and encourage shoppers to call
a toll-free number to purchase the merchandise with a credit card. This form of
retailing is called a(n):
A) in-store electronic shopping
B) videotex
C) shop-at-home network
D) electronic point of sale
E) catalog viewing
A C
Which of the following can Texas-based Grape Vine Market use to create its store
atmosphere?
A) play REM or Fleetwood Mac
music on its sound system
B) a large brick fireplace in the
center of the store
C) store clerks who are
knowledgeable about food and
wine
D) racks arranged
asymmetrically to create flow
A E
and movement
E) all of these
One of the new developments in retailing is m-commerce. The m- in commerce
stands for:
A) motivated
B) multimedia
C) marketing
D) managed
E) mobile
A E
One of the new developments in retailing is m-commerce. M-commerce refers to
the ability to:
A) use unique communication
techniques to send advertising
messages
B) create situations in which the
AIDA technique is effective
C) more efficiently manage
customer demand with
inventory
D) shop using wireless mobile
devices
E) motivate consumers to buy
more by creating more feedback
channels
A D
_____ is defined as all activities directly related to the sale of goods and services
to the ultimate consumer for personal, nonbusiness use or consumption.
A) Wholesaling
B) Retailing
C) Business
D) Franchising
E) Distribution
A B
Which of the following is the best example of a retailer?
A) the public library
B) a radio station
C) a real estate company
D) the local Humane Society
E) an advertising agency
A C
Small neighborhood florists, shoe stores, and ethnic food markets are most likely
to be:
A) supercenters
B) franchise outlets
C) membership clubs
D) chain stores
A E
E) independent retailers
According to the text, one way supermarkets establish long-term relationships
with their customers is to:
A) conduct longitudinal focus-
group studies
B) avoid any obviously ethnic
appeal
C) limit the number of nonfood
items carried by the stores
D) create and use loyalty
marketing programs
E) create customer correlation
studies
A D
_____ carry a limited line of high-turnover, high-priced goods and resemble
miniature supermarkets. These self-service stores are typically located near
residential areas and are open long hours, seven days a week.
A) Specialty stores
B) Wholesale stores
C) Convenience stores
D) Factory outlets
E) General stores
A C
_____ are retailers that compete on the basis of low prices, high turnover, and
high volume.
A) Convenience outlets
B) Discount stores
C) General stores
D) Department stores
E) Specialty stores
A B
Glen’s Safety First! sells a huge assortment of firefighting equipment at greatly
reduced prices. It offers customers few services and competes on the basis of
moderate to low prices on the large quantities of merchandise it stocks. Glen’s
Safety First! is an example of a:
A) full-line discount store
B) specialty discount store
C) general store
D) department store
E) wholesale store
A B
The merchandise mix:
A) is the term used for price-
bundled merchandise
B) is the term for the marketing
communications used by
retailers
C) refers to the six levels in a
buying organization
D) describes the composition of
A E
a traditional shopping center
E) is the retailer's product
offering
Which U.S. retailer is the number one sales volume retailer in the world?
A) Sears
B) JCPenney
C) Target
D) Kroger
E) Wal-Mart
A E
The main element of a store's presentation is its _____, or the overall impression
conveyed by the store's physical layout, decor, and surroundings.
A) merchandise depth
B) location
C) price strategy
D) atmosphere
E) total merchandise mix
A D
Texas-based Grape Vine Market is an 18,000-square-foot store offering highly
collectible food and wine. Greeted by warm lighting, a muted color scheme, and
REM or Fleetwood Mac on the sound system, customers first enter the wine
department, a 10,000-square-foot oval featuring more than 5,500 labels from
around the world. There are no aisles; instead racks are arranged asymmetrically
to create flow and movement. This description is of the store's:
A) cultural impact
B) atmosphere
C) target strategy
D) merchandise mix
E) promotional strategy
A B
_____ sell a limited selection of brand-name appliances, household items, and
groceries, usually in bulk on a cash-and-carry basis to members only.
A) Super outlets
B) Factory outlets
C) Wholesale discounters
D) Off-price discount retailers
E) Warehouse membership
clubs
A E
_____ is a low-profile, yet important, form of retailing in which consumers get
products out of automated machines, and it accounts for $40 billion worth of sales
each year in the United States.
A) Automatic vending
B) Party-plan selling
C) Direct marketing
D) A pyramid scheme
E) Professional selling
A A
Irina Gomez has decided to sell a sourcebook of Hispanic American suppliers to
southeastern businesses in predominantly Hispanic areas. She plans to call
prospective customers and try to sell to them over the phone. Gomez will be using
A) m-commerce
B) indirect retailing
C) franchising
A E
which of the following retailing techniques? D) vending
E) direct-response marketing
The Mad Stencilist has decided to demonstrate how to use its products to create
custom gift tags on a local cable television channel and encourage shoppers to call
a toll-free number to purchase the merchandise with a credit card. This form of
retailing is called a(n):
A) in-store electronic shopping
B) videotex
C) shop-at-home network
D) electronic point of sale
E) catalog viewing
A C
Breit Ideas is an online retailer that is licensed to sell products designed by Mary
Engelbreit--everything from Christmas ornaments and books to wallpaper and
toys. Breit Ideas is an example of a:
A) product and trade name
franchisee
B) redistributor franchisor
C) business format franchisee
D) licensed franchisor
E) relationship franchisee
A A
Which of the following can Texas-based Grape Vine Market use to create its store
atmosphere?
A) play REM or Fleetwood Mac
music on its sound system
B) a large brick fireplace in the
center of the store
C) store clerks who are
knowledgeable about food and
wine
D) racks arranged
asymmetrically to create flow
and movement
E) all of these
A E
Les Ailes de la Mode is a Quebec retailer that has built its name around customer
relationships. The specialty department store creates relationships with its
customers through their experiences in the store. Its vice-president of marketing
has said, "We are here to build a very good personalized experience--it's not just a
matter of marketing strategy, it's our mission. " The shopping experience at the
store includes "little extras" like free coat check, free shoeshines, baby feeding
rooms, a highly trained staff (and more of them on the floor), and a place for
people to go to read the newspaper. This is an example of:
A) lifestyle marketing
B) retail positioning
C) a store that emphasizes
customer service
D) trading up
E) all of these
A C
Ansonia owns and operates her own janitorial service, but the establishment is
licensed by Maid2Clean. Ansonia’s cleaning service is a:
A) doubly managed outlet
B) chain store A C
C) franchise
D) independent retailer
E) licensor
The number of different varieties of fishing lures carried by the Angler’s Store
refers to the store's:
A) store's supply standard
B) complete retail offering
C) retail mix
D) volume
E) assortment depth
A E
Housing several departments under one roof, a _____ carries a wide variety of
shopping and specialty goods and provides a high level of service.
A) supermarket
B) specialty store
C) convenience store
D) super club
E) department store
A E
A _____ is not only a type of store, but also a method of retail operations. This
type of retailer specializes in a given type of merchandise with a deep but narrow
assortment.
A) warehouse club
B) convenience store
C) factory warehouse store
D) specialty store
E) general store
A D
Which of the following statements about specialty stores is true?
A) Customers usually consider
price to be the most important
factor in their selection of a
specialty store.
B) Customers at specialty stores
are not concerned with the
distinctiveness of the
merchandise or the store's
physical appearance.
C) Specialty stores typically
avoid price wars.
D) Specialty stores are
ineffective test markets.
E) A typical specialty store
carries a wider assortment of
specialty merchandise than
A C
department stores.
Texas-based Grape Vine Market is an 18,000-square-foot store offering highly
collectible food and wine—along with some other culinary perks, including a
cooking school—all in a setting crafted to make shoppers feel comfortable. It
stocks more than 5,500 different kinds of wine. This description alone is enough
to tell you that Grape Vine Market is best described as a:
A) hypermarket
B) convenience store
C) specialty store
D) department store
E) general store
A C
A manufacturer wants to introduce a line of hand-smocked children's clothing to
the growing number of professional women who are now having babies. The least
expensive of these outfits will be $75. Which of the following types of stores
would most likely support an effective product launch?
A) off-price retailer
B) specialty store
C) full-discount store
D) general store
E) warehouse club
A B
A retail operation that has a 90,000-square-foot facility, that houses a florist,
baker, bank, craft shop, photo finisher, dry cleaner, and pharmacy under the same
roof as grocery and household items is correctly called a:
A) membership warehouse club
B) wholesale outlet
C) factory outlet
D) supercenter
E) mass merchandiser
A D
Arby's, Jiffy-Lube, Baskin-Robbins, and Sylvan Learning Centers are examples of
_____ because the franchisee buys the right to use the franchisor’s approach to
doing business.
A) trade name franchising
B) product franchising
C) business format franchising
D) franchise wholesaling
E) logistic franchising
A C
The first task of developing a retail strategy is to:
A) create a buying organization
B) decide what to buy
C) define the target market
D) create a promotional strategy
E) define the pricing policies
A C
Retailers control the six Ps of the retailing mix. The six Ps include the marketing
mix plus:
A) personnel and presentation
B) production and people
C) potential and perception
D) personality and persuasion
E) positioning and purchasing
A A
Retailers such as Target and JCPenney are responding to consumer needs by
changing product mixes, hours of operation, locations, and prices. These stores are
A) merchandising groupings
B) retailing mixes A B
changing aspects of their: C) product offerings
D) retail trade areas
E) store positioning strategies
A marketing research company has created a database that contains monthly
average retail price data for selected cuts of beef, pork, chicken, turkey, lamb, and
veal. In addition to prices of various cuts of meat, the database includes
information on the volume sold and the volume of "featured" products sold under
retailers' weekly advertised specials and frequent shopper discounts. These data
are collected at the point of sale by supermarkets using electronic scanners in
checkout lines. The database allows users to use _____ to determine what meat
should be stocked and when it should be stocked.
A) data mining
B) information dredging
C) an information management
system
D) a retail paradigm
E) correlation and trend
analyses
A A
Which U.S. retailer is the number one sales volume retailer in the world?
A) Sears
B) JCPenney
C) Target
D) Kroger
E) Wal-Mart
A E
Which of the following statements about a retailer's promotion strategy is true?
A) The design of the promotion
strategy would be done
separately from the creation of
the retailing mix.
B) The goal of a retail store's
promotion mix is to position the
store in consumers' minds.
C) Most advertising for retailers
is carried out at the national
level.
D) Retailers find direct-mail
marketing inefficient.
E) Retail promotion strategy
does not include public relations
activities.
A B
A warehouse membership club:
A) only sells to ultimate
consumers
B) is a type of category
A D
specialist
C) offers a medium level of
customer service
D) tends to have more educated
and more affluent customers
than other retail establishments
E) has extensive merchandise
depth, which it uses to create
demographic positioning
Off-price retailers:
A) are often able to take
advantage of manufacturers'
faulty sales forecasting
B) very often offer a consistent
assortment of merchandise
C) seldom stock brand-name
merchandise
D) are owned by the
manufacturer of the products
they sell
E) offer very deep assortments
A A
A publisher of books on holiday decorating, cooking, and crafts has to find a way
to dispose of its overrun and unsold end-of-season output. As a marketing
consultant, you suggest the firm sell the merchandise to:
A) mass merchandisers
B) convenience stores
C) department stores
D) supermarkets
E) off-price discount retailers
A E
Well-known manufacturers such as Nike, Liz Claiborne, and Mikasa have decided
the most profitable way to dispose of out-of-season and irregular stock is to open
stores and sell their own merchandise. These stores are types of:
A) seasonal outlets
B) mass merchandisers
C) factory outlets
D) discount stores
E) bargain basements
A C
Chez Amie manufactures children's clothing for infants and toddlers. Its has its
sales representatives set up parties at homes of mothers of preschool children so
that its sales reps can demonstrate the quality and value of the Chez Amie
products. Chez Amie is using:
A) direct-response marketing
B) vending
C) personal marketing
D) selling representation
A E
E) direct retailing
Telemarketing can consist of either unsolicited _____ sales calls, or _____ sales
calls, which allow companies to receive orders through toll-free telephone
numbers.
A) order placement; lead
generation
B) push strategy; pull strategy
C) systematic; synergistic
D) qualifying; finalizing
E) outbound; inbound
A E
Sunni received a phone call last night during supper. The caller wanted her to
subscribe to a travel magazine. Since Sunni had never thought of purchasing this
type of magazine before she received the call, this is obviously an example of
_____ telemarketing.
A) outbound
B) field sales
C) qualifying
D) inbound
E) relationship
A A
Which of the following statements about online retailing is true?
A) Online retailing is also called
e-merchandising.
B) After a rapid increase in
sales, the popularity of online
retailing has declined over the
last decade.
C) Most traditional retailers are
using online retailing to move
merchandise that can be
purchased at their stores.
D) The earliest use of online
retailing was for Internet
auctions.
E) All of these statements about
online retailing are true.
A C
The earliest example of the use of franchising occurred in the sale of products to
housewives located on the American prairie. In 1851, Isaac Singer sold traveling
independent salesmen the rights to sell his sewing machines to end users. What
type of franchising was this an example of?
A) generic
B) business format
C) product and trade name
D) licensed
E) consumer based
A C
A retail store can be classified according to its: A) distribution method
B) inventory control A C
C) product assortment
D) management style
E) decor and atmosphere
Around the world, most retailers are _____, operating one or a few stores in their
community, owned by a single person or partnership and not operated as part of a
larger retail institution.
A) independent retailers
B) chain stores
C) franchise outlets
D) specialty clubs
E) product assortment stores
A A
Which of the following types of stores has a high gross margin, a narrow product
assortment, and a high level of service?
A) supermarket
B) warehouse club
C) convenience store
D) full-line discount store
E) specialty store
A E
A _____ is not only a type of store, but also a method of retail operations. This
type of retailer specializes in a given type of merchandise with a deep but narrow
assortment.
A) warehouse club
B) convenience store
C) factory warehouse store
D) specialty store
E) general store
A D
_____ are large, departmentalized, self-service retailers that specialize in wide
assortments of foodstuffs and a few nonfood items.
A) Supermarkets
B) Convenience stores
C) Membership wholesale clubs
D) Discount stores
E) Assortment merchandisers
A A
Giant Eagle is a chain of retail outlets in the U.S. Midwest that are described as
large, departmentalized, self-service stores that specialize in wide assortments of
foodstuffs and limited nonfood items. Giant Eagle stores are:
A) off-price retailers
B) discount stores
C) wholesale clubs
D) convenience stores
E) supermarkets
A E
When supermarkets offer a wide variety of nontraditional goods and services
under one roof, they are engaged in:
A) cross-selling
B) trading up
C) scrambled merchandising
D) disintermediation
E) cross-docking
A C
Prices are usually higher in convenience stores than in supermarkets because
convenience stores offer:
A) more specialty goods
B) a wider variety of products
C) a higher level of customer
services
D) better location, longer hours,
and faster service
E) higher quality goods
A D
Arby's, Jiffy-Lube, Baskin-Robbins, and Sylvan Learning Centers are examples of
_____ because the franchisee buys the right to use the franchisor’s approach to
doing business.
A) trade name franchising
B) product franchising
C) business format franchising
D) franchise wholesaling
E) logistic franchising
A C
Which of the following statements about a retailer's promotion strategy is true?
A) The design of the promotion
strategy would be done
separately from the creation of
the retailing mix.
B) The goal of a retail store's
promotion mix is to position the
store in consumers' minds.
C) Most advertising for retailers
is carried out at the national
level.
D) Retailers find direct-mail
marketing inefficient.
E) Retail promotion strategy
does not include public relations
activities.
A B
Geoff Hudson wants to open a specialty store to sell sports memorabilia and is
considering locating it in a regional shopping mall. Before opening his new store,
he needs to understand:
A) parking in malls is usually
inadequate
B) the leases required by mall
owners are usually inexpensive
C) the mall atmosphere and that
of neighboring stores will help
attract shoppers
A C
D) his store could be the mall
anchor
E) there is usually a problem
with store image because malls
have no unified image, as a
shopping center does
The newest generation of shopping centers is:
A) regional malls
B) shopping business districts
C) lifestyle centers
D) franchised centers
E) strip malls
A C
Another name for an anchor store is a _____.
A) mass merchandiser
B) generator store
C) host store
D) shopping center pillar
E) destination store
A B
A publisher of books on holiday decorating, cooking, and crafts has to find a way
to dispose of its overrun and unsold end-of-season output. As a marketing
consultant, you suggest the firm sell the merchandise to:
A) mass merchandisers
B) convenience stores
C) department stores
D) supermarkets
E) off-price discount retailers
A E
Which of the following statements about restaurants is true?
A) Restaurants are clearly a
retailing establishment.
B) There is a strong demand for
many more restaurants.
C) The demographic issue of
time-poor consumers has led to
a growing demand for
restaurants.
D) Because barriers to entry are
low, the restaurant business
appeals to many people.
E) Restaurants are clearly a
service industry.
A D
_____ sell a limited selection of brand-name appliances, household items, and
groceries, usually in bulk on a cash-and-carry basis to members only.
A) Super outlets
B) Factory outlets
C) Wholesale discounters
D) Off-price discount retailers
E) Warehouse membership
clubs
A E
_____ is a low-profile, yet important, form of retailing in which consumers get
products out of automated machines, and it accounts for $40 billion worth of sales
each year in the United States.
A) Automatic vending
B) Party-plan selling
C) Direct marketing
D) A pyramid scheme
E) Professional selling
A A
Manufacturers of Pampered Chef kitchen equipment and Longaberger baskets
utilize party plan selling. The sales transactions usually occur in a home setting.
This form of nonstore retailing is called:
A) direct retailing
B) personal marketing
C) direct-response marketing
D) vending
E) selling representation
A A
_____ is the use of a telephone to sell directly to customers.
A) Telemarketing
B) Two-way vending
C) Teleprompting
D) Indirect marketing
E) Phone vending
A A
Telemarketing can consist of either unsolicited _____ sales calls, or _____ sales
calls, which allow companies to receive orders through toll-free telephone
numbers.
A) order placement; lead
generation
B) push strategy; pull strategy
C) systematic; synergistic
D) qualifying; finalizing
E) outbound; inbound
A E
Sunni received a phone call last night during supper. The caller wanted her to
subscribe to a travel magazine. Since Sunni had never thought of purchasing this
type of magazine before she received the call, this is obviously an example of
_____ telemarketing.
A) outbound
B) field sales
C) qualifying
D) inbound
E) relationship
A A
Which of the following statements about online retailing is true? A) Online retailing is also called A C
e-merchandising.
B) After a rapid increase in
sales, the popularity of online
retailing has declined over the
last decade.
C) Most traditional retailers are
using online retailing to move
merchandise that can be
purchased at their stores.
D) The earliest use of online
retailing was for Internet
auctions.
E) All of these statements about
online retailing are true.
The earliest example of the use of franchising occurred in the sale of products to
housewives located on the American prairie. In 1851, Isaac Singer sold traveling
independent salesmen the rights to sell his sewing machines to end users. What
type of franchising was this an example of?
A) generic
B) business format
C) product and trade name
D) licensed
E) consumer based
A C
Breit Ideas is an online retailer that is licensed to sell products designed by Mary
Engelbreit--everything from Christmas ornaments and books to wallpaper and
toys. Breit Ideas is an example of a:
A) product and trade name
franchisee
B) redistributor franchisor
C) business format franchisee
D) licensed franchisor
E) relationship franchisee
A A
Interactivity is one of the new developments in retailing. In retailing, interactivity
refers to:
A) the use of improved
communications with customers
B) a new form of customer
relationship marketing
C) entertainment for customers
to get them involved
D) the use of information kiosks
E) the creation of a static
atmosphere
A C
Les Ailes de la Mode is a Quebec retailer that has built its name around customer
relationships. The specialty department store creates relationships with its
customers through their experiences in the store. Its vice-president of marketing
has said, "We are here to build a very good personalized experience--it's not just a
matter of marketing strategy, it's our mission. " The shopping experience at the
store includes "little extras" like free coat check, free shoeshines, baby feeding
rooms, a highly trained staff (and more of them on the floor), and a place for
people to go to read the newspaper. This is an example of:
A) lifestyle marketing
B) retail positioning
C) a store that emphasizes
customer service
D) trading up
E) all of these
A C
A retail store can be classified according to its:
A) distribution method
B) inventory control
C) product assortment
D) management style
E) decor and atmosphere
A C
Around the world, most retailers are _____, operating one or a few stores in their
community, owned by a single person or partnership and not operated as part of a
larger retail institution.
A) independent retailers
B) chain stores
C) franchise outlets
D) specialty clubs
E) product assortment stores
A A
Retail stores that are owned and operated as a group by a single organization are
called _____. Under this form of ownership, administrative and purchasing tasks
are handled by the home office.
A) home base stores
B) independent retailers
C) franchisees
D) chain stores
E) strip centers
A D
Which of the following types of stores has a high gross margin, a narrow product
assortment, and a high level of service?
A) supermarket
B) warehouse club
C) convenience store
D) full-line discount store
E) specialty store
A E
Housing several departments under one roof, a _____ carries a wide variety of
shopping and specialty goods and provides a high level of service.
A) supermarket
B) specialty store
C) convenience store
D) super club
E) department store
A E
Which of the following environmental trends is most directly influencing
supermarket operations?
A) Regional malls are hosting
fewer anchor stores.
B) To make a profit,
supermarkets are having to
carry products with high gross
margins.
C) The number of dual-income
and single-parent families is
increasing.
D) Recessionary trends are
decreasing the amount of money
spent on nonfood items.
E) Consumers are more inclined
to pamper themselves.
A C
_____ are retailers that compete on the basis of low prices, high turnover, and
high volume.
A) Convenience outlets
B) Discount stores
C) General stores
D) Department stores
E) Specialty stores
A B
Discount stores:
A) compete on the basis of low
prices, high turnover, and high
volume
B) offer more SKUs than
department stores
C) sell high-priced, low-
turnover products
D) provide their customers with
full service
E) compete on the basis of
assortment and depth
A A
_____ are stores that consumers purposely plan to visit. They are often built as
freestanding stores.
A) Destination stores
B) Benefit retailers
C) Relationship builders
D) Lifestyle stores
A A
E) M-stores
Which of the following statements about restaurants is true?
A) Restaurants are clearly a
retailing establishment.
B) There is a strong demand for
many more restaurants.
C) The demographic issue of
time-poor consumers has led to
a growing demand for
restaurants.
D) Because barriers to entry are
low, the restaurant business
appeals to many people.
E) Restaurants are clearly a
service industry.
A D
_____ is a low-profile, yet important, form of retailing in which consumers get
products out of automated machines, and it accounts for $40 billion worth of sales
each year in the United States.
A) Automatic vending
B) Party-plan selling
C) Direct marketing
D) A pyramid scheme
E) Professional selling
A A
Manufacturers of Pampered Chef kitchen equipment and Longaberger baskets
utilize party plan selling. The sales transactions usually occur in a home setting.
This form of nonstore retailing is called:
A) direct retailing
B) personal marketing
C) direct-response marketing
D) vending
E) selling representation
A A
Sunni received a phone call last night during supper. The caller wanted her to
subscribe to a travel magazine. Since Sunni had never thought of purchasing this
type of magazine before she received the call, this is obviously an example of
_____ telemarketing.
A) outbound
B) field sales
C) qualifying
D) inbound
E) relationship
A A
General Nutrition Center, Uniglobe Travel, and Wendy’s are all examples of
_____ because the franchisee buys the right to use the franchisor’s approach to
doing business.
A) product and trade name
franchisors
B) redistributor franchisors
C) business format franchisors
D) licensed franchisors
A C
E) relationship franchisors
Which of the following can Texas-based Grape Vine Market use to create its store
atmosphere?
A) play REM or Fleetwood Mac
music on its sound system
B) a large brick fireplace in the
center of the store
C) store clerks who are
knowledgeable about food and
wine
D) racks arranged
asymmetrically to create flow
and movement
E) all of these
A E
One of the new developments in retailing is m-commerce. M-commerce refers to
the ability to:
A) use unique communication
techniques to send advertising
messages
B) create situations in which the
AIDA technique is effective
C) more efficiently manage
customer demand with
inventory
D) shop using wireless mobile
devices
E) motivate consumers to buy
more by creating more feedback
channels
A D
A retail store can be classified according to its:
A) distribution method
B) inventory control
C) product assortment
D) management style
E) decor and atmosphere
A C
Small neighborhood florists, shoe stores, and ethnic food markets are most likely
to be:
A) supercenters
B) franchise outlets
C) membership clubs
D) chain stores
A E
E) independent retailers
Ansonia owns and operates her own janitorial service, but the establishment is
licensed by Maid2Clean. Ansonia’s cleaning service is a:
A) doubly managed outlet
B) chain store
C) franchise
D) independent retailer
E) licensor
A C
Housing several departments under one roof, a _____ carries a wide variety of
shopping and specialty goods and provides a high level of service.
A) supermarket
B) specialty store
C) convenience store
D) super club
E) department store
A E
The _____ at John Lewis, Britain’s largest department store chain, selects the
merchandise for his or her department and is often responsible for its promotion
and for managing the personnel in that department.
A) buyer
B) purchasing agent
C) retail broker
D) merchandiser
E) franchisee
A A
Texas-based Grape Vine Market is an 18,000-square-foot store offering highly
collectible food and wine—along with some other culinary perks, including a
cooking school—all in a setting crafted to make shoppers feel comfortable. It
stocks more than 5,500 different kinds of wine. This description alone is enough
to tell you that Grape Vine Market is best described as a:
A) hypermarket
B) convenience store
C) specialty store
D) department store
E) general store
A C
Giant Eagle is a chain of retail outlets in the U.S. Midwest that are described as
large, departmentalized, self-service stores that specialize in wide assortments of
foodstuffs and limited nonfood items. Giant Eagle stores are:
A) off-price retailers
B) discount stores
C) wholesale clubs
D) convenience stores
E) supermarkets
A E
The initial attraction of drugstores for consumers was the pharmaceuticals they
carried, but now consumers can have their prescriptions filled at mass
merchandisers, and supermarkets and through the mail. What have drugstores
done to remain competitive?
A) raised their prices
B) taken legal steps to prevent
the sale of prescription drugs at
supermarkets
C) provided customers with
value-added services
D) introduced generic
A C
prescription medicines
E) nothing
_____ carry a limited line of high-turnover, high-priced goods and resemble
miniature supermarkets. These self-service stores are typically located near
residential areas and are open long hours, seven days a week.
A) Specialty stores
B) Wholesale stores
C) Convenience stores
D) Factory outlets
E) General stores
A C
Discount stores:
A) compete on the basis of low
prices, high turnover, and high
volume
B) offer more SKUs than
department stores
C) sell high-priced, low-
turnover products
D) provide their customers with
full service
E) compete on the basis of
assortment and depth
A A
Arby's, Jiffy-Lube, Baskin-Robbins, and Sylvan Learning Centers are examples of
_____ because the franchisee buys the right to use the franchisor’s approach to
doing business.
A) trade name franchising
B) product franchising
C) business format franchising
D) franchise wholesaling
E) logistic franchising
A C
As competition in the retail industry has intensified, Office Depot has begun
selling a _____ of office furnishings with the Christopher Lowell brand. Office
Depot is the only place that you will find the Christopher Lowell brand. The
prices of this merchandise are lower than prices for national brands and give
consumers greater value.
A) private brand
B) generic brand
C) family brand
D) promotional brand
E) specialty brand
A A
Why is the selection of a retail location so critical to a store's success?
A) Location affects pricing
decisions but does not affect
store image.
B) Customers will not drive out
of their way to find a store.
C) A location decision ties up
A D
funds that will not appreciate or
gain in value.
D) A location decision typically
requires long-term commitment
of resources.
E) Employee density is affected
by the area in which the store is
located.
Anchor stores (or generator stores):
A) are the stores within the mall
that sell services rather than
products
B) are often large department
stores that are located at
opposite ends of a mall to create
a heavy pedestrian traffic flow
C) usually specialize in high-
priced items like furniture
D) is the generic name given to
supermarkets that are located
within shopping malls
E) is a term for retail stores that
"drop off" to freestanding
locations
A B
In September 2005, JCPenney opened a 97,000-plus square foot anchor store in
the new West Grand Promenade. One advantage that JCPenney has because it is
inside the shopping center is:
A) cheap lease agreement
B) potential of direct
competition within the shopping
center
C) lease restrictions on hours of
operation
D) inadequate parking
E) none of these
A E
A _____ is an off-price retailer that is owned and operated by a manufacturer and
carries one line of merchandise--its own.
A) mass merchandiser
B) factory outlet
C) wholesale club
A B
D) discount store
E) bargain basement store
_____ sell a limited selection of brand-name appliances, household items, and
groceries, usually in bulk on a cash-and-carry basis to members only.
A) Super outlets
B) Factory outlets
C) Wholesale discounters
D) Off-price discount retailers
E) Warehouse membership
clubs
A E
_____ is a low-profile, yet important, form of retailing in which consumers get
products out of automated machines, and it accounts for $40 billion worth of sales
each year in the United States.
A) Automatic vending
B) Party-plan selling
C) Direct marketing
D) A pyramid scheme
E) Professional selling
A A
Manufacturers of Pampered Chef kitchen equipment and Longaberger baskets
utilize party plan selling. The sales transactions usually occur in a home setting.
This form of nonstore retailing is called:
A) direct retailing
B) personal marketing
C) direct-response marketing
D) vending
E) selling representation
A A
To counter decreasing sales, U.S. direct sales retailers are:
A) exploring sales opportunities
in other countries
B) selling at workplaces in
addition to the more traditional
at-home sales
C) setting up kiosks in malls in
which to sell their products
D) using direct mail and
telemarketing
E) doing all of these
A E
_____ refers to the techniques used to get consumers to buy from their home.
Those techniques include direct mail, catalogs and mail order, telemarketing, and
electronic retailing.
A) Nonstore vending
B) In-home retailing
C) Franchising
D) Direct marketing
E) Direct retailing
A D
Irina Gomez has decided to sell a sourcebook of Hispanic American suppliers to
southeastern businesses in predominantly Hispanic areas. She plans to call
prospective customers and try to sell to them over the phone. Gomez will be using
which of the following retailing techniques?
A) m-commerce
B) indirect retailing
C) franchising
D) vending
E) direct-response marketing
A E
Sunni received a phone call last night during supper. The caller wanted her to
subscribe to a travel magazine. Since Sunni had never thought of purchasing this
type of magazine before she received the call, this is obviously an example of
_____ telemarketing.
A) outbound
B) field sales
C) qualifying
D) inbound
E) relationship
A A
The Mad Stencilist has decided to demonstrate how to use its products to create
custom gift tags on a local cable television channel and encourage shoppers to call
a toll-free number to purchase the merchandise with a credit card. This form of
retailing is called a(n):
A) in-store electronic shopping
B) videotex
C) shop-at-home network
D) electronic point of sale
E) catalog viewing
A C
Which of the following statements about online retailing is true?
A) Online retailing is also called
e-merchandising.
B) After a rapid increase in
sales, the popularity of online
retailing has declined over the
last decade.
C) Most traditional retailers are
using online retailing to move
merchandise that can be
purchased at their stores.
D) The earliest use of online
retailing was for Internet
auctions.
E) All of these statements about
online retailing are true.
A C
A(n) _____ is a continuing relationship in which an individual or business grants
business rights to operate or sell a product to another individual or business.
A) leasing contract
B) alliance for profit
C) brokered partnership
D) franchise
A D
E) countertrade
General Nutrition Center, Uniglobe Travel, and Wendy’s are all examples of
_____ because the franchisee buys the right to use the franchisor’s approach to
doing business.
A) product and trade name
franchisors
B) redistributor franchisors
C) business format franchisors
D) licensed franchisors
E) relationship franchisors
A C
Which of the following is the best example of a retailer?
A) the public library
B) a radio station
C) a real estate company
D) the local Humane Society
E) an advertising agency
A C
Around the world, most retailers are _____, operating one or a few stores in their
community, owned by a single person or partnership and not operated as part of a
larger retail institution.
A) independent retailers
B) chain stores
C) franchise outlets
D) specialty clubs
E) product assortment stores
A A
Small neighborhood florists, shoe stores, and ethnic food markets are most likely
to be:
A) supercenters
B) franchise outlets
C) membership clubs
D) chain stores
E) independent retailers
A E
Which of the following statements about specialty stores is true?
A) Customers usually consider
price to be the most important
factor in their selection of a
specialty store.
B) Customers at specialty stores
are not concerned with the
distinctiveness of the
merchandise or the store's
physical appearance.
C) Specialty stores typically
avoid price wars.
D) Specialty stores are
A C
ineffective test markets.
E) A typical specialty store
carries a wider assortment of
specialty merchandise than
department stores.
Texas-based Fresh Plus carries 40 brands of olive oil ranging from low to high
end, including Laudemio Olive Oil at $38.99 for 16.9 ounces. Fresh Plus also
boasts a large “Taste of Texas” section. TexaFrance Salsas and Pestos, Rose’s
Salsa, Tom’s Tabouli, Kinky Friedman’s Salsa, Blue Bell Ice Cream, and
Goodflow Juices and Honey are among the local showcased products. Fresh Plus
differentiates itself from other stores through the use of:
A) cultural positioning
B) specialty retailing
C) electronic point of sale
D) store location modeling
E) consumer density
A B
_____ carry a limited line of high-turnover, high-priced goods and resemble
miniature supermarkets. These self-service stores are typically located near
residential areas and are open long hours, seven days a week.
A) Specialty stores
B) Wholesale stores
C) Convenience stores
D) Factory outlets
E) General stores
A C
Home Depot Fuel is the name of a chain of convenience stores owned and
operated by The Home Depot. These stores typically sell gas and are located just
outside The Home Depot warehouse store. What else do you know about the Fuel
convenience stores?
A) They carry a wide
assortment of products.
B) They carry a limited line of
high-turn goods.
C) They compete on the basis of
low price
D) They carry a limited but
deep assortment of products.
E) They carry the same
merchandise found in The
Home Depot.
A B
Glen’s Safety First! sells a huge assortment of firefighting equipment at greatly
reduced prices. It offers customers few services and competes on the basis of
moderate to low prices on the large quantities of merchandise it stocks. Glen’s
Safety First! is an example of a:
A) full-line discount store
B) specialty discount store
C) general store
D) department store
E) wholesale store
A B
The merchandise mix: A) is the term used for price-
bundled merchandise A E
B) is the term for the marketing
communications used by
retailers
C) refers to the six levels in a
buying organization
D) describes the composition of
a traditional shopping center
E) is the retailer's product
offering
The newest generation of shopping centers is:
A) regional malls
B) shopping business districts
C) lifestyle centers
D) franchised centers
E) strip malls
A C
warehouse membership club:
A) only sells to ultimate
consumers
B) is a type of category
specialist
C) offers a medium level of
customer service
D) tends to have more educated
and more affluent customers
than other retail establishments
E) has extensive merchandise
depth, which it uses to create
demographic positioning
A D
Well-known manufacturers such as Nike, Liz Claiborne, and Mikasa have decided
the most profitable way to dispose of out-of-season and irregular stock is to open
stores and sell their own merchandise. These stores are types of:
A) seasonal outlets
B) mass merchandisers
C) factory outlets
D) discount stores
E) bargain basements
A C
Chez Amie manufactures children's clothing for infants and toddlers. Its has its
sales representatives set up parties at homes of mothers of preschool children so
that its sales reps can demonstrate the quality and value of the Chez Amie
A) direct-response marketing
B) vending
C) personal marketing
A E
products. Chez Amie is using: D) selling representation
E) direct retailing
Breit Ideas is an online retailer that is licensed to sell products designed by Mary
Engelbreit--everything from Christmas ornaments and books to wallpaper and
toys. Breit Ideas is an example of a:
A) product and trade name
franchisee
B) redistributor franchisor
C) business format franchisee
D) licensed franchisor
E) relationship franchisee
A A
General Nutrition Center, Uniglobe Travel, and Wendy’s are all examples of
_____ because the franchisee buys the right to use the franchisor’s approach to
doing business.
A) product and trade name
franchisors
B) redistributor franchisors
C) business format franchisors
D) licensed franchisors
E) relationship franchisors
A C
Which of the following can Texas-based Grape Vine Market use to create its store
atmosphere?
A) play REM or Fleetwood Mac
music on its sound system
B) a large brick fireplace in the
center of the store
C) store clerks who are
knowledgeable about food and
wine
D) racks arranged
asymmetrically to create flow
and movement
E) all of these
A E
Toy Lab is a small retailer where children can design and assemble toys from bins
of brightly colored parts. Each child starts in the “Dream It” section of the store
by drawing a picture of his or her toy on a large piece of paper. Then, the child
moves to the “Pick Your Pieces” area of the store to select the parts he or she
needs to create the toy. Finally, the child moves to the “Build It” area to assemble
the colored parts on large tables and put the final toy in a special box. Toy Lab is
part of a recent trend in retailing, which the text calls:
A) nonstore retailing
B) m-commerce
C) convenience retailing
D) e-business
E) adding interactivity
A E
Around the world, most retailers are _____, operating one or a few stores in their
community, owned by a single person or partnership and not operated as part of a
A) independent retailers
B) chain stores A A
larger retail institution. C) franchise outlets
D) specialty clubs
E) product assortment stores
Retail stores that are owned and operated as a group by a single organization are
called _____. Under this form of ownership, administrative and purchasing tasks
are handled by the home office.
A) home base stores
B) independent retailers
C) franchisees
D) chain stores
E) strip centers
A D
_____ are large, departmentalized, self-service retailers that specialize in wide
assortments of foodstuffs and a few nonfood items.
A) Supermarkets
B) Convenience stores
C) Membership wholesale clubs
D) Discount stores
E) Assortment merchandisers
A A
Which of the following environmental trends is most directly influencing
supermarket operations?
A) Regional malls are hosting
fewer anchor stores.
B) To make a profit,
supermarkets are having to
carry products with high gross
margins.
C) The number of dual-income
and single-parent families is
increasing.
D) Recessionary trends are
decreasing the amount of money
spent on nonfood items.
E) Consumers are more inclined
to pamper themselves.
A C
_____ carry a broad assortment of nationally branded hard goods (broader than a
department store) and offer customers very limited service. National chains
dominate this segment.
A) Full-line discount stores
B) Discount specialty stores
C) Factory outlets
D) Fashion stores
E) Specialty supercenters
A A
_____ is the retailing strategy of using moderate to low prices on large quantities
of products and lower service to stimulate a high turnover of inventory.
A) Specialty store positioning
B) Merchandise positioning A E
C) M-store retailing
D) The wheel of retailing
E) Mass merchandising
Retailers control the six Ps of the retailing mix. The six Ps include the marketing
mix plus:
A) personnel and presentation
B) production and people
C) potential and perception
D) personality and persuasion
E) positioning and purchasing
A A
Passport Furniture is a manufacturer of fine home furnishings. It offers to share
the costs (up to 5 percent of the amount of products purchased by the retailer) of
advertising with any retailer that carries its line of furniture. Retailers who took
advantage of this offer would use:
A) specialty promotion
B) cooperative advertising
C) comparative advertising
D) shared advertising
E) advertising advocacy
A B
_____ are stores that consumers purposely plan to visit. They are often built as
freestanding stores.
A) Destination stores
B) Benefit retailers
C) Relationship builders
D) Lifestyle stores
E) M-stores
A A
Gap, Inc. opened its first freestanding Banana Republic store in Japan in the fall
of 2006. Its freestanding store:
A) contains merchandise
different from that offered in
Banana Republic stores in
shopping centers
B) is not a destination store
C) creates greater visibility for
the store than it would have in a
shopping center
D) is an off-price retailing
operation for the store chain
E) is described by all of these
A C
Large retailers such as Target and Wal-Mart and sellers of shopping goods such as
automobiles and furniture often use _____ for their locations.
A) remote, rural locations
B) office complexes
C) factory outlets
D) freestanding stores
E) regional malls
A D
The newest generation of shopping centers is:
A) regional malls
B) shopping business districts
C) lifestyle centers
D) franchised centers
E) strip malls
A C
Another name for an anchor store is a _____.
A) mass merchandiser
B) generator store
C) host store
D) shopping center pillar
E) destination store
A B
A recent pricing trend among retailers is EDLP, which stands for:
A) electronic data laser
purchasing
B) efficient data long-range
planning
C) everyone doing large
purchases
D) everyday low pricing
E) efficient dollar loss planning
A D
The main element of a store's presentation is its _____, or the overall impression
conveyed by the store's physical layout, decor, and surroundings.
A) merchandise depth
B) location
C) price strategy
D) atmosphere
E) total merchandise mix
A D
Which of the following statements about restaurants is true?
A) Restaurants are clearly a
retailing establishment.
B) There is a strong demand for
many more restaurants.
C) The demographic issue of
time-poor consumers has led to
a growing demand for
restaurants.
D) Because barriers to entry are
low, the restaurant business
appeals to many people.
A D
E) Restaurants are clearly a
service industry.
Which of the following statements about nonstore retailing is true?
A) The nature of the
communications between the
retailer and the customer is the
same in all forms of nonstore
retailing.
B) Nonstore retailing is
currently growing faster than in-
store retailing.
C) More than 80 percent of all
sales are made through nonstore
retailing.
D) The high growth rate for
nonstore retailing is due to the
growth of TV home shopping.
E) Nonstore retailing is
increasing at a rate lower than
in-store retailing.
A B
To counter decreasing sales, U.S. direct sales retailers are:
A) exploring sales opportunities
in other countries
B) selling at workplaces in
addition to the more traditional
at-home sales
C) setting up kiosks in malls in
which to sell their products
D) using direct mail and
telemarketing
E) doing all of these
A E
_____ refers to the techniques used to get consumers to buy from their home.
Those techniques include direct mail, catalogs and mail order, telemarketing, and
electronic retailing.
A) Nonstore vending
B) In-home retailing
C) Franchising
D) Direct marketing
E) Direct retailing
A D
Irina Gomez has decided to sell a sourcebook of Hispanic American suppliers to
southeastern businesses in predominantly Hispanic areas. She plans to call
prospective customers and try to sell to them over the phone. Gomez will be using
which of the following retailing techniques?
A) m-commerce
B) indirect retailing
C) franchising
D) vending
E) direct-response marketing
A E
The earliest example of the use of franchising occurred in the sale of products to
housewives located on the American prairie. In 1851, Isaac Singer sold traveling
independent salesmen the rights to sell his sewing machines to end users. What
type of franchising was this an example of?
A) generic
B) business format
C) product and trade name
D) licensed
E) consumer based
A C
The Home Depot has selected orange as its corporate color. It's a good choice. At
the gut level, orange connotes happiness and warmth. A recent article in one of
the company's advertising brochures spoke about choosing colors for home
decorating. It referred to this color as "joyful orange" The color orange is part of
the _____ at The Home Depot stores.
A) cultural impact
B) atmosphere
C) target strategy
D) merchandise mix
E) promotional strategy
A B
Toy Lab is a small retailer where children can design and assemble toys from bins
of brightly colored parts. Each child starts in the “Dream It” section of the store
by drawing a picture of his or her toy on a large piece of paper. Then, the child
moves to the “Pick Your Pieces” area of the store to select the parts he or she
needs to create the toy. Finally, the child moves to the “Build It” area to assemble
the colored parts on large tables and put the final toy in a special box. Toy Lab is
part of a recent trend in retailing, which the text calls:
A) nonstore retailing
B) m-commerce
C) convenience retailing
D) e-business
E) adding interactivity
A E
Texas-based Grape Vine Market is an 18,000-square-foot store offering highly
collectible food and wine—along with some other culinary perks, including a
cooking school—all in a setting crafted to make shoppers feel comfortable.
Greeted by warm lighting, a muted color scheme, and REM or Fleetwood Mac on
the sound system, customers first enter the wine department, a 10,000-square-foot
oval featuring more than 5,500 labels from around the world. There are no aisles;
instead racks are arranged asymmetrically to create flow and movement. The
Grape Vine Market uses _____ to differentiate itself from supermarkets.
A) nonstore retailing
B) m-commerce
C) convenience retailing
D) e-business
E) interactivity
A E
Each department in a department store is usually headed by a _____ who selects
the merchandise mix for the department and may also choose the promotional
devices and personnel for that department.
A) franchisee
B) financial broker
C) comptroller
D) human resources manager
A E
E) buyer
Which of the following statements about specialty stores is true?
A) Customers usually consider
price to be the most important
factor in their selection of a
specialty store.
B) Customers at specialty stores
are not concerned with the
distinctiveness of the
merchandise or the store's
physical appearance.
C) Specialty stores typically
avoid price wars.
D) Specialty stores are
ineffective test markets.
E) A typical specialty store
carries a wider assortment of
specialty merchandise than
department stores.
A C
Texas-based Fresh Plus carries 40 brands of olive oil ranging from low to high
end, including Laudemio Olive Oil at $38.99 for 16.9 ounces. Fresh Plus also
boasts a large “Taste of Texas” section. TexaFrance Salsas and Pestos, Rose’s
Salsa, Tom’s Tabouli, Kinky Friedman’s Salsa, Blue Bell Ice Cream, and
Goodflow Juices and Honey are among the local showcased products. Fresh Plus
differentiates itself from other stores through the use of:
A) cultural positioning
B) specialty retailing
C) electronic point of sale
D) store location modeling
E) consumer density
A B
Glen’s Safety First! sells a huge assortment of firefighting equipment at greatly
reduced prices. It offers customers few services and competes on the basis of
moderate to low prices on the large quantities of merchandise it stocks. Glen’s
Safety First! is an example of a:
A) full-line discount store
B) specialty discount store
C) general store
D) department store
E) wholesale store
A B
Data mining:
A) is a relatively new method of
inventory control
B) uses complex mathematical
models to help retailers make
better product mix decisions
A B
C) is a computerized technique
for making site location
decisions
D) determines the level of
quality and service desired by
customers
E) measures levels of services
and identifies inadequate service
Which U.S. retailer is the number one sales volume retailer in the world?
A) Sears
B) JCPenney
C) Target
D) Kroger
E) Wal-Mart
A E
Gap, Inc. opened its first freestanding Banana Republic store in Japan in the fall
of 2006. Its freestanding store:
A) contains merchandise
different from that offered in
Banana Republic stores in
shopping centers
B) is not a destination store
C) creates greater visibility for
the store than it would have in a
shopping center
D) is an off-price retailing
operation for the store chain
E) is described by all of these
A C
Large retailers such as Target and Wal-Mart and sellers of shopping goods such as
automobiles and furniture often use _____ for their locations.
A) remote, rural locations
B) office complexes
C) factory outlets
D) freestanding stores
E) regional malls
A D
Another name for an anchor store is a _____.
A) mass merchandiser
B) generator store
C) host store
D) shopping center pillar
E) destination store
A B
Anchor stores (or generator stores):
A) are the stores within the mall
that sell services rather than
products
B) are often large department
stores that are located at
opposite ends of a mall to create
a heavy pedestrian traffic flow
C) usually specialize in high-
priced items like furniture
D) is the generic name given to
supermarkets that are located
within shopping malls
E) is a term for retail stores that
"drop off" to freestanding
locations
A B
Many technologically advanced retailers are using a technique called _____ to
analyze the huge amounts of data collected through their point-of-purchase
scanning equipment. The analysis looks for products that are commonly
purchased together to help retailers merchandise their stores to place products in
the right places.
A) market-basket analysis
B) simulated test marketing
C) product/customer correlation
analysis
D) market cross-tabulations
E) customer lifestyle analysis
A A
A recent pricing trend among retailers is EDLP, which stands for:
A) electronic data laser
purchasing
B) efficient data long-range
planning
C) everyone doing large
purchases
D) everyday low pricing
E) efficient dollar loss planning
A D
Texas-based Grape Vine Market is an 18,000-square-foot store offering highly
collectible food and wine. Greeted by warm lighting, a muted color scheme, and
REM or Fleetwood Mac on the sound system, customers first enter the wine
department, a 10,000-square-foot oval featuring more than 5,500 labels from
around the world. There are no aisles; instead racks are arranged asymmetrically
A) cultural impact
B) atmosphere
C) target strategy
D) merchandise mix
E) promotional strategy
A B
to create flow and movement. This description is of the store's:
A warehouse membership club:
A) only sells to ultimate
consumers
B) is a type of category
specialist
C) offers a medium level of
customer service
D) tends to have more educated
and more affluent customers
than other retail establishments
E) has extensive merchandise
depth, which it uses to create
demographic positioning
A D
Laura buys supplies for her catering business at a retailer that stocks a limited
selection of items, which are sold in bulk on a cash-and-carry basis to members
only. As she browses through a huge store, she buys flour, a set of muffin pans,
and a package of paper towels as well as an assortment of fresh produce. Laura is
most likely shopping at a(n):
A) off-price discount retailer
B) factory outlet
C) industrial supply warehouse
D) warehouse membership club
E) wholesale outlet
A D
Off-price retailers:
A) are often able to take
advantage of manufacturers'
faulty sales forecasting
B) very often offer a consistent
assortment of merchandise
C) seldom stock brand-name
merchandise
D) are owned by the
manufacturer of the products
they sell
E) offer very deep assortments
A A
Specialty stores such as Office Depot, Bed Bath & Beyond, and Staples are often
called category killers because:
A) they can destroy the profit
potential for a category of
merchandise for other retailers
B) they are located at stand-
alone sites
A A
C) of their broad merchandise
mix and shallow assortment
D) they offer an exclusive
category of merchandise
E) they carry only fast-selling
items
To counter decreasing sales, U.S. direct sales retailers are:
A) exploring sales opportunities
in other countries
B) selling at workplaces in
addition to the more traditional
at-home sales
C) setting up kiosks in malls in
which to sell their products
D) using direct mail and
telemarketing
E) doing all of these
A E
A retailer in Peoria, Illinois, is licensed to sell Snapper lawn mowers. This retailer
is a:
A) product and trade name
franchisee
B) redistributor franchisor
C) business format franchisee
D) licensed franchisor
E) relationship franchisee
A A
Whenever a customer buys a stencil at Stencil Works, a sales clerk asks the
customer whether she needs brushes, paints, or tape for her stenciling project. In
other words, the sales clerk engages in:
A) suggestion selling
B) trading up
C) bait and switch
D) customer relationship
retailing
E) service-disguised selling
A A
When Boris went into Sears to buy his wife a new iron for her birthday, he only
planned to spend about $30, but the sales clerk was able to show him the
superiority of a $60 iron to the less expensive model. In this example, the sales
clerk engaged in:
A) suggestion selling
B) trading up
C) bait and switch
D) customer relationship
retailing
E) service-disguised selling
A B
Interactivity is one of the new developments in retailing. In retailing, interactivity
refers to:
A) the use of improved
communications with customers
B) a new form of customer
relationship marketing
C) entertainment for customers
to get them involved
D) the use of information kiosks
E) the creation of a static
atmosphere
A C
A retail store can be classified according to its:
A) distribution method
B) inventory control
C) product assortment
D) management style
E) decor and atmosphere
A C
Small neighborhood florists, shoe stores, and ethnic food markets are most likely
to be:
A) supercenters
B) franchise outlets
C) membership clubs
D) chain stores
E) independent retailers
A E
As a general rule of thumb, a retailer that has a high gross margin will have:
A) m-commerce capabilities
B) an inventory management
system
C) low prices
D) salespeople trained in cross-
selling techniques
E) high prices
A E
The _____ at John Lewis, Britain’s largest department store chain, selects the
merchandise for his or her department and is often responsible for its promotion
and for managing the personnel in that department.
A) buyer
B) purchasing agent
C) retail broker
D) merchandiser
E) franchisee
A A
Which of the following environmental trends is most directly influencing
supermarket operations?
A) Regional malls are hosting
fewer anchor stores.
B) To make a profit,
A C
supermarkets are having to
carry products with high gross
margins.
C) The number of dual-income
and single-parent families is
increasing.
D) Recessionary trends are
decreasing the amount of money
spent on nonfood items.
E) Consumers are more inclined
to pamper themselves.
The initial attraction of drugstores for consumers was the pharmaceuticals they
carried, but now consumers can have their prescriptions filled at mass
merchandisers, and supermarkets and through the mail. What have drugstores
done to remain competitive?
A) raised their prices
B) taken legal steps to prevent
the sale of prescription drugs at
supermarkets
C) provided customers with
value-added services
D) introduced generic
prescription medicines
E) nothing
A C
_____ carry a limited line of high-turnover, high-priced goods and resemble
miniature supermarkets. These self-service stores are typically located near
residential areas and are open long hours, seven days a week.
A) Specialty stores
B) Wholesale stores
C) Convenience stores
D) Factory outlets
E) General stores
A C
_____ is the retailing strategy of using moderate to low prices on large quantities
of products and lower service to stimulate a high turnover of inventory.
A) Specialty store positioning
B) Merchandise positioning
C) M-store retailing
D) The wheel of retailing
E) Mass merchandising
A E
Arby's, Jiffy-Lube, Baskin-Robbins, and Sylvan Learning Centers are examples of
_____ because the franchisee buys the right to use the franchisor’s approach to
doing business.
A) trade name franchising
B) product franchising
C) business format franchising
D) franchise wholesaling
A C
E) logistic franchising
The first task of developing a retail strategy is to:
A) create a buying organization
B) decide what to buy
C) define the target market
D) create a promotional strategy
E) define the pricing policies
A C
A marketing research company has created a database that contains monthly
average retail price data for selected cuts of beef, pork, chicken, turkey, lamb, and
veal. In addition to prices of various cuts of meat, the database includes
information on the volume sold and the volume of "featured" products sold under
retailers' weekly advertised specials and frequent shopper discounts. These data
are collected at the point of sale by supermarkets using electronic scanners in
checkout lines. The database allows users to use _____ to determine what meat
should be stocked and when it should be stocked.
A) data mining
B) information dredging
C) an information management
system
D) a retail paradigm
E) correlation and trend
analyses
A A
Which U.S. retailer is the number one sales volume retailer in the world?
A) Sears
B) JCPenney
C) Target
D) Kroger
E) Wal-Mart
A E
When opening a new retail operation, the retailer needs to consider all of the
following factors EXCEPT:
A) traffic flow
B) employee density
C) nature of the competition
D) land costs
E) area growth
A B
A warehouse membership club:
A) only sells to ultimate
consumers
B) is a type of category
specialist
C) offers a medium level of
customer service
D) tends to have more educated
and more affluent customers
than other retail establishments
E) has extensive merchandise
A D
depth, which it uses to create
demographic positioning
Off-price retailers:
A) are often able to take
advantage of manufacturers'
faulty sales forecasting
B) very often offer a consistent
assortment of merchandise
C) seldom stock brand-name
merchandise
D) are owned by the
manufacturer of the products
they sell
E) offer very deep assortments
A A
Which of the following is NOT a reason why individuals may be tempted to buy a
franchise business rather than develop their own independent business?
A) the individual can try his or
her own personal innovative
product and service ideas in the
business
B) to obtain a well-known
product or service name
C) management training
requirements
D) the business’s established
image
E) existence of product
uniformity standards
A A
A retailer in Peoria, Illinois, is licensed to sell Snapper lawn mowers. This retailer
is a:
A) product and trade name
franchisee
B) redistributor franchisor
C) business format franchisee
D) licensed franchisor
E) relationship franchisee
A A
Breit Ideas is an online retailer that is licensed to sell products designed by Mary
Engelbreit--everything from Christmas ornaments and books to wallpaper and
toys. Breit Ideas is an example of a:
A) product and trade name
franchisee
B) redistributor franchisor
A A
C) business format franchisee
D) licensed franchisor
E) relationship franchisee
Toy Lab is a small retailer where children can design and assemble toys from bins
of brightly colored parts. Each child starts in the “Dream It” section of the store
by drawing a picture of his or her toy on a large piece of paper. Then, the child
moves to the “Pick Your Pieces” area of the store to select the parts he or she
needs to create the toy. Finally, the child moves to the “Build It” area to assemble
the colored parts on large tables and put the final toy in a special box. Toy Lab is
part of a recent trend in retailing, which the text calls:
A) nonstore retailing
B) m-commerce
C) convenience retailing
D) e-business
E) adding interactivity
A E
Les Ailes de la Mode is a Quebec retailer that has built its name around customer
relationships. The specialty department store creates relationships with its
customers through their experiences in the store. Its vice-president of marketing
has said, "We are here to build a very good personalized experience--it's not just a
matter of marketing strategy, it's our mission. " The shopping experience at the
store includes "little extras" like free coat check, free shoeshines, baby feeding
rooms, a highly trained staff (and more of them on the floor), and a place for
people to go to read the newspaper. This is an example of:
A) lifestyle marketing
B) retail positioning
C) a store that emphasizes
customer service
D) trading up
E) all of these
A C
The number of different varieties of fishing lures carried by the Angler’s Store
refers to the store's:
A) store's supply standard
B) complete retail offering
C) retail mix
D) volume
E) assortment depth
A E
Applying what you have learned about retailing, which type of retail store would
typically have the highest labor costs?
A) warehouse club
B) department store
C) off-price store
D) off-price retailer
E) discount store
A B
The buyer who heads a department in a department store is responsible for the:
A) store's exchange and return
policies
B) store's credit policies
C) chain's expansion efforts
D) merchandise mix in that
department
A D
E) store's advertising program
_____ are large, departmentalized, self-service retailers that specialize in wide
assortments of foodstuffs and a few nonfood items.
A) Supermarkets
B) Convenience stores
C) Membership wholesale clubs
D) Discount stores
E) Assortment merchandisers
A A
Which of the following environmental trends is most directly influencing
supermarket operations?
A) Regional malls are hosting
fewer anchor stores.
B) To make a profit,
supermarkets are having to
carry products with high gross
margins.
C) The number of dual-income
and single-parent families is
increasing.
D) Recessionary trends are
decreasing the amount of money
spent on nonfood items.
E) Consumers are more inclined
to pamper themselves.
A C
Spar is Ireland's largest supermarket chain. Which of the following is the most
likely reason why Spar supermarkets sell all types of foodstuffs as well as
nonfood products including a wide range of firearms and gun accessories?
A) consumer demand for one-
stop shopping often leads to
scrambled merchandising
B) the fulfillment of the wheel
of retailing hypothesis
C) inflationary economic
climate
D) repositioning as a discounter
E) growth of convenience
merchandising
A A
Home Depot Fuel is the name of a chain of convenience stores owned and
operated by The Home Depot. These stores typically sell gas and are located just
outside The Home Depot warehouse store. What else do you know about the Fuel
convenience stores?
A) They carry a wide
assortment of products.
B) They carry a limited line of
high-turn goods.
A B
C) They compete on the basis of
low price
D) They carry a limited but
deep assortment of products.
E) They carry the same
merchandise found in The
Home Depot.
Prices are usually higher in convenience stores than in supermarkets because
convenience stores offer:
A) more specialty goods
B) a wider variety of products
C) a higher level of customer
services
D) better location, longer hours,
and faster service
E) higher quality goods
A D
_____ is the retailing strategy of using moderate to low prices on large quantities
of products and lower service to stimulate a high turnover of inventory.
A) Specialty store positioning
B) Merchandise positioning
C) M-store retailing
D) The wheel of retailing
E) Mass merchandising
A E
Kmart utilizes a strategy of moderate to low prices on large quantities of products
and lower levels of service to stimulate a high turnover of inventory. Kmart offers
a wide variety of different product lines. Kmart is an example of a:
A) factory outlet
B) mass merchandiser
C) convenience store
D) franchising operation
E) specialty store
A B
A retail operation that has a 90,000-square-foot facility, that houses a florist,
baker, bank, craft shop, photo finisher, dry cleaner, and pharmacy under the same
roof as grocery and household items is correctly called a:
A) membership warehouse club
B) wholesale outlet
C) factory outlet
D) supercenter
E) mass merchandiser
A D
In 2004, over 2 million people visited Wine.com and bought 14,000 different fine
wines at discounted prices. Wine.com shipped wine to over 100,000 customers
generating more than $30 million in sales in 2004. Wine.com has since become
the most trafficked wine site in the world. As a retail operation, Wine.com would
be correctly labeled an online:
A) full-line discount store
B) category killer
C) general store
D) department store
E) off-price retailer
A B
Retailers control the six Ps of the retailing mix. The six Ps include the marketing
mix plus:
A) personnel and presentation
B) production and people
C) potential and perception
D) personality and persuasion
E) positioning and purchasing
A A
A marketing research company has created a database that contains monthly
average retail price data for selected cuts of beef, pork, chicken, turkey, lamb, and
veal. In addition to prices of various cuts of meat, the database includes
information on the volume sold and the volume of "featured" products sold under
retailers' weekly advertised specials and frequent shopper discounts. These data
are collected at the point of sale by supermarkets using electronic scanners in
checkout lines. The database allows users to use _____ to determine what meat
should be stocked and when it should be stocked.
A) data mining
B) information dredging
C) an information management
system
D) a retail paradigm
E) correlation and trend
analyses
A A
_____ are stores that consumers purposely plan to visit. They are often built as
freestanding stores.
A) Destination stores
B) Benefit retailers
C) Relationship builders
D) Lifestyle stores
E) M-stores
A A
A warehouse membership club:
A) only sells to ultimate
consumers
B) is a type of category
specialist
C) offers a medium level of
customer service
D) tends to have more educated
and more affluent customers
than other retail establishments
E) has extensive merchandise
depth, which it uses to create
demographic positioning
A D
A _____ is an off-price retailer that is owned and operated by a manufacturer and
carries one line of merchandise--its own.
A) mass merchandiser
B) factory outlet
C) wholesale club
D) discount store
A B
E) bargain basement store
Well-known manufacturers such as Nike, Liz Claiborne, and Mikasa have decided
the most profitable way to dispose of out-of-season and irregular stock is to open
stores and sell their own merchandise. These stores are types of:
A) seasonal outlets
B) mass merchandisers
C) factory outlets
D) discount stores
E) bargain basements
A C
_____ refers to shopping without visiting a store and is currently growing faster
than in-store shopping because of the consumer demand for convenience.
A) Nonstore retailing
B) Customerization
C) Hypershopping
D) Niche marketing
E) Specialty merchandising
A A
_____ is a low-profile, yet important, form of retailing in which consumers get
products out of automated machines, and it accounts for $40 billion worth of sales
each year in the United States.
A) Automatic vending
B) Party-plan selling
C) Direct marketing
D) A pyramid scheme
E) Professional selling
A A
_____ refers to the techniques used to get consumers to buy from their home.
Those techniques include direct mail, catalogs and mail order, telemarketing, and
electronic retailing.
A) Nonstore vending
B) In-home retailing
C) Franchising
D) Direct marketing
E) Direct retailing
A D
Telemarketing can consist of either unsolicited _____ sales calls, or _____ sales
calls, which allow companies to receive orders through toll-free telephone
numbers.
A) order placement; lead
generation
B) push strategy; pull strategy
C) systematic; synergistic
D) qualifying; finalizing
E) outbound; inbound
A E
The Home Depot has selected orange as its corporate color. It's a good choice. At
the gut level, orange connotes happiness and warmth. A recent article in one of
the company's advertising brochures spoke about choosing colors for home
decorating. It referred to this color as "joyful orange" The color orange is part of
the _____ at The Home Depot stores.
A) cultural impact
B) atmosphere
C) target strategy
D) merchandise mix
E) promotional strategy
A B
Toy Lab is a small retailer where children can design and assemble toys from bins A) nonstore retailing A E
of brightly colored parts. Each child starts in the “Dream It” section of the store
by drawing a picture of his or her toy on a large piece of paper. Then, the child
moves to the “Pick Your Pieces” area of the store to select the parts he or she
needs to create the toy. Finally, the child moves to the “Build It” area to assemble
the colored parts on large tables and put the final toy in a special box. Toy Lab is
part of a recent trend in retailing, which the text calls:
B) m-commerce
C) convenience retailing
D) e-business
E) adding interactivity
Texas-based Grape Vine Market is an 18,000-square-foot store offering highly
collectible food and wine—along with some other culinary perks, including a
cooking school—all in a setting crafted to make shoppers feel comfortable.
Greeted by warm lighting, a muted color scheme, and REM or Fleetwood Mac on
the sound system, customers first enter the wine department, a 10,000-square-foot
oval featuring more than 5,500 labels from around the world. There are no aisles;
instead racks are arranged asymmetrically to create flow and movement. The
Grape Vine Market uses _____ to differentiate itself from supermarkets.
A) nonstore retailing
B) m-commerce
C) convenience retailing
D) e-business
E) interactivity
A E
Interactivity is one of the new developments in retailing. In retailing, interactivity
refers to:
A) the use of improved
communications with customers
B) a new form of customer
relationship marketing
C) entertainment for customers
to get them involved
D) the use of information kiosks
E) the creation of a static
atmosphere
A C
Small neighborhood florists, shoe stores, and ethnic food markets are most likely
to be:
A) supercenters
B) franchise outlets
C) membership clubs
D) chain stores
E) independent retailers
A E
Applying what you have learned about retailing, which type of retail store would
typically have the highest labor costs?
A) warehouse club
B) department store
C) off-price store
D) off-price retailer
E) discount store
A B
Which of the following statements about specialty stores is true? A) Customers usually consider A C
price to be the most important
factor in their selection of a
specialty store.
B) Customers at specialty stores
are not concerned with the
distinctiveness of the
merchandise or the store's
physical appearance.
C) Specialty stores typically
avoid price wars.
D) Specialty stores are
ineffective test markets.
E) A typical specialty store
carries a wider assortment of
specialty merchandise than
department stores.
Texas-based Grape Vine Market is an 18,000-square-foot store offering highly
collectible food and wine—along with some other culinary perks, including a
cooking school—all in a setting crafted to make shoppers feel comfortable. It
stocks more than 5,500 different kinds of wine. This description alone is enough
to tell you that Grape Vine Market is best described as a:
A) hypermarket
B) convenience store
C) specialty store
D) department store
E) general store
A C
A manufacturer wants to introduce a line of hand-smocked children's clothing to
the growing number of professional women who are now having babies. The least
expensive of these outfits will be $75. Which of the following types of stores
would most likely support an effective product launch?
A) off-price retailer
B) specialty store
C) full-discount store
D) general store
E) warehouse club
A B
Which of the following environmental trends is most directly influencing
supermarket operations?
A) Regional malls are hosting
fewer anchor stores.
B) To make a profit,
supermarkets are having to
carry products with high gross
margins.
C) The number of dual-income
and single-parent families is
A C
increasing.
D) Recessionary trends are
decreasing the amount of money
spent on nonfood items.
E) Consumers are more inclined
to pamper themselves.
Retailers control the six Ps of the retailing mix. The six Ps include the marketing
mix plus:
A) personnel and presentation
B) production and people
C) potential and perception
D) personality and persuasion
E) positioning and purchasing
A A
Retailers such as Target and JCPenney are responding to consumer needs by
changing product mixes, hours of operation, locations, and prices. These stores are
changing aspects of their:
A) merchandising groupings
B) retailing mixes
C) product offerings
D) retail trade areas
E) store positioning strategies
A B
The merchandise mix:
A) is the term used for price-
bundled merchandise
B) is the term for the marketing
communications used by
retailers
C) refers to the six levels in a
buying organization
D) describes the composition of
a traditional shopping center
E) is the retailer's product
offering
A E
Which group is the targeted market by lifestyle centers?
A) teenagers who don't drive
B) consumers on a fixed income
C) laggards
D) upper-income consumers
with an aversion for “the mall”
E) people who engage in
cocooning
A D
Anchor stores (or generator stores):
A) are the stores within the mall
that sell services rather than
products
B) are often large department
stores that are located at
opposite ends of a mall to create
a heavy pedestrian traffic flow
C) usually specialize in high-
priced items like furniture
D) is the generic name given to
supermarkets that are located
within shopping malls
E) is a term for retail stores that
"drop off" to freestanding
locations
A B
A publisher of books on holiday decorating, cooking, and crafts has to find a way
to dispose of its overrun and unsold end-of-season output. As a marketing
consultant, you suggest the firm sell the merchandise to:
A) mass merchandisers
B) convenience stores
C) department stores
D) supermarkets
E) off-price discount retailers
A E
A _____ is an off-price retailer that is owned and operated by a manufacturer and
carries one line of merchandise--its own.
A) mass merchandiser
B) factory outlet
C) wholesale club
D) discount store
E) bargain basement store
A B
Well-known manufacturers such as Nike, Liz Claiborne, and Mikasa have decided
the most profitable way to dispose of out-of-season and irregular stock is to open
stores and sell their own merchandise. These stores are types of:
A) seasonal outlets
B) mass merchandisers
C) factory outlets
D) discount stores
E) bargain basements
A C
_____ sell a limited selection of brand-name appliances, household items, and
groceries, usually in bulk on a cash-and-carry basis to members only.
A) Super outlets
B) Factory outlets
C) Wholesale discounters
D) Off-price discount retailers
A E
E) Warehouse membership
clubs
Sunni received a phone call last night during supper. The caller wanted her to
subscribe to a travel magazine. Since Sunni had never thought of purchasing this
type of magazine before she received the call, this is obviously an example of
_____ telemarketing.
A) outbound
B) field sales
C) qualifying
D) inbound
E) relationship
A A
Toy Lab is a small retailer where children can design and assemble toys from bins
of brightly colored parts. Each child starts in the “Dream It” section of the store
by drawing a picture of his or her toy on a large piece of paper. Then, the child
moves to the “Pick Your Pieces” area of the store to select the parts he or she
needs to create the toy. Finally, the child moves to the “Build It” area to assemble
the colored parts on large tables and put the final toy in a special box. Toy Lab is
part of a recent trend in retailing, which the text calls:
A) nonstore retailing
B) m-commerce
C) convenience retailing
D) e-business
E) adding interactivity
A E
One of the new developments in retailing is m-commerce. The m- in commerce
stands for:
A) motivated
B) multimedia
C) marketing
D) managed
E) mobile
A E
Around the world, most retailers are _____, operating one or a few stores in their
community, owned by a single person or partnership and not operated as part of a
larger retail institution.
A) independent retailers
B) chain stores
C) franchise outlets
D) specialty clubs
E) product assortment stores
A A
Small neighborhood florists, shoe stores, and ethnic food markets are most likely
to be:
A) supercenters
B) franchise outlets
C) membership clubs
D) chain stores
E) independent retailers
A E
Ansonia owns and operates her own janitorial service, but the establishment is
licensed by Maid2Clean. Ansonia’s cleaning service is a:
A) doubly managed outlet
B) chain store
C) franchise
D) independent retailer
A C
E) licensor
Texas-based Grape Vine Market is an 18,000-square-foot store offering highly
collectible food and wine—along with some other culinary perks, including a
cooking school—all in a setting crafted to make shoppers feel comfortable. It
stocks more than 5,500 different kinds of wine. This description alone is enough
to tell you that Grape Vine Market is best described as a:
A) hypermarket
B) convenience store
C) specialty store
D) department store
E) general store
A C
Texas-based Fresh Plus carries 40 brands of olive oil ranging from low to high
end, including Laudemio Olive Oil at $38.99 for 16.9 ounces. Fresh Plus also
boasts a large “Taste of Texas” section. TexaFrance Salsas and Pestos, Rose’s
Salsa, Tom’s Tabouli, Kinky Friedman’s Salsa, Blue Bell Ice Cream, and
Goodflow Juices and Honey are among the local showcased products. Fresh Plus
differentiates itself from other stores through the use of:
A) cultural positioning
B) specialty retailing
C) electronic point of sale
D) store location modeling
E) consumer density
A B
Which of the following environmental trends is most directly influencing
supermarket operations?
A) Regional malls are hosting
fewer anchor stores.
B) To make a profit,
supermarkets are having to
carry products with high gross
margins.
C) The number of dual-income
and single-parent families is
increasing.
D) Recessionary trends are
decreasing the amount of money
spent on nonfood items.
E) Consumers are more inclined
to pamper themselves.
A C
When supermarkets offer a wide variety of nontraditional goods and services
under one roof, they are engaged in:
A) cross-selling
B) trading up
C) scrambled merchandising
D) disintermediation
E) cross-docking
A C
In 2004, over 2 million people visited Wine.com and bought 14,000 different fine
wines at discounted prices. Wine.com shipped wine to over 100,000 customers
generating more than $30 million in sales in 2004. Wine.com has since become
A) full-line discount store
B) category killer
C) general store
A B
the most trafficked wine site in the world. As a retail operation, Wine.com would
be correctly labeled an online:
D) department store
E) off-price retailer
The first task of developing a retail strategy is to:
A) create a buying organization
B) decide what to buy
C) define the target market
D) create a promotional strategy
E) define the pricing policies
A C
Which U.S. retailer is the number one sales volume retailer in the world?
A) Sears
B) JCPenney
C) Target
D) Kroger
E) Wal-Mart
A E
Which of the following statements about a retailer's promotion strategy is true?
A) The design of the promotion
strategy would be done
separately from the creation of
the retailing mix.
B) The goal of a retail store's
promotion mix is to position the
store in consumers' minds.
C) Most advertising for retailers
is carried out at the national
level.
D) Retailers find direct-mail
marketing inefficient.
E) Retail promotion strategy
does not include public relations
activities.
A B
The Summer Place has decided consumers will be drawn to its offering of wicker
furniture and will even be willing to drive out of their way. The store really needs
to keep its overhead costs (such as rent) low and wants to avoid locating near
competitors. For a location, the Summer Place will probably choose a:
A) factory outlet
B) strip center
C) freestanding store
D) shopping center
E) regional mall
A C
A specialty store is considering locating a retail store in a regional shopping mall.
Which of the following is NOT a likely benefit associated with a location in a
A) anchors that attract
customers A E
mall? B) ample parking
C) unified image of mall
D) ability to target different
demographics groups
E) inexpensive leases
The newest generation of shopping centers is:
A) regional malls
B) shopping business districts
C) lifestyle centers
D) franchised centers
E) strip malls
A C
When JCPenney announced it would open a 97,000-plus square foot anchor store
in the new West Grand Promenade, it meant that JCPenney would be:
A) the only large store in the
shopping center
B) a destination store
C) expected to create heavy foot
traffic for the center
D) in an isolated location
outside the shopping center
structure
E) unable to control the local
store's pricing policies
A C
A warehouse membership club:
A) only sells to ultimate
consumers
B) is a type of category
specialist
C) offers a medium level of
customer service
D) tends to have more educated
and more affluent customers
than other retail establishments
E) has extensive merchandise
depth, which it uses to create
demographic positioning
A D
A publisher of books on holiday decorating, cooking, and crafts has to find a way
to dispose of its overrun and unsold end-of-season output. As a marketing
A) mass merchandisers
B) convenience stores A E
consultant, you suggest the firm sell the merchandise to: C) department stores
D) supermarkets
E) off-price discount retailers
A _____ is an off-price retailer that is owned and operated by a manufacturer and
carries one line of merchandise--its own.
A) mass merchandiser
B) factory outlet
C) wholesale club
D) discount store
E) bargain basement store
A B
Well-known manufacturers such as Nike, Liz Claiborne, and Mikasa have decided
the most profitable way to dispose of out-of-season and irregular stock is to open
stores and sell their own merchandise. These stores are types of:
A) seasonal outlets
B) mass merchandisers
C) factory outlets
D) discount stores
E) bargain basements
A C
Specialty stores such as Office Depot, Bed Bath & Beyond, and Staples are often
called category killers because:
A) they can destroy the profit
potential for a category of
merchandise for other retailers
B) they are located at stand-
alone sites
C) of their broad merchandise
mix and shallow assortment
D) they offer an exclusive
category of merchandise
E) they carry only fast-selling
items
A A
Sunni received a phone call last night during supper. The caller wanted her to
subscribe to a travel magazine. Since Sunni had never thought of purchasing this
type of magazine before she received the call, this is obviously an example of
_____ telemarketing.
A) outbound
B) field sales
C) qualifying
D) inbound
E) relationship
A A
The Cedar Store carries a full line of cedar swings, gliders, garden benches, and
tables. All of its products can be purchased through its Web site. The site has done
well since the Cedar Store's products do not need to be touched or smelled before
purchase. The Cedar Store is engaging in:
A) online retailing
B) shop-at-home networking
C) mobile vending
D) franchising
E) electronic wholesaling
A A
Which of the following can Texas-based Grape Vine Market use to create its store
atmosphere?
A) play REM or Fleetwood Mac
music on its sound system
B) a large brick fireplace in the
center of the store
C) store clerks who are
knowledgeable about food and
wine
D) racks arranged
asymmetrically to create flow
and movement
E) all of these
A E
The Home Depot has selected orange as its corporate color. It's a good choice. At
the gut level, orange connotes happiness and warmth. A recent article in one of
the company's advertising brochures spoke about choosing colors for home
decorating. It referred to this color as "joyful orange" The color orange is part of
the _____ at The Home Depot stores.
A) cultural impact
B) atmosphere
C) target strategy
D) merchandise mix
E) promotional strategy
A B
Whenever a customer buys a stencil at Stencil Works, a sales clerk asks the
customer whether she needs brushes, paints, or tape for her stenciling project. In
other words, the sales clerk engages in:
A) suggestion selling
B) trading up
C) bait and switch
D) customer relationship
retailing
E) service-disguised selling
A A
One of the new developments in retailing is m-commerce. M-commerce refers to
the ability to:
A) use unique communication
techniques to send advertising
messages
B) create situations in which the
AIDA technique is effective
C) more efficiently manage
customer demand with
inventory
D) shop using wireless mobile
devices
E) motivate consumers to buy
more by creating more feedback
A D
channels
A retail store can be classified according to its:
A) distribution method
B) inventory control
C) product assortment
D) management style
E) decor and atmosphere
A C
The buyer who heads a department in a department store is responsible for the:
A) store's exchange and return
policies
B) store's credit policies
C) chain's expansion efforts
D) merchandise mix in that
department
E) store's advertising program
A D
Which of the following statements about specialty stores is true?
A) Customers usually consider
price to be the most important
factor in their selection of a
specialty store.
B) Customers at specialty stores
are not concerned with the
distinctiveness of the
merchandise or the store's
physical appearance.
C) Specialty stores typically
avoid price wars.
D) Specialty stores are
ineffective test markets.
E) A typical specialty store
carries a wider assortment of
specialty merchandise than
department stores.
A C
_____ are large, departmentalized, self-service retailers that specialize in wide
assortments of foodstuffs and a few nonfood items.
A) Supermarkets
B) Convenience stores
C) Membership wholesale clubs
D) Discount stores
A A
E) Assortment merchandisers
Giant Eagle is a chain of retail outlets in the U.S. Midwest that are described as
large, departmentalized, self-service stores that specialize in wide assortments of
foodstuffs and limited nonfood items. Giant Eagle stores are:
A) off-price retailers
B) discount stores
C) wholesale clubs
D) convenience stores
E) supermarkets
A E
According to the text, one way supermarkets establish long-term relationships
with their customers is to:
A) conduct longitudinal focus-
group studies
B) avoid any obviously ethnic
appeal
C) limit the number of nonfood
items carried by the stores
D) create and use loyalty
marketing programs
E) create customer correlation
studies
A D
_____ are retailers that compete on the basis of low prices, high turnover, and
high volume.
A) Convenience outlets
B) Discount stores
C) General stores
D) Department stores
E) Specialty stores
A B
A retail operation that has a 90,000-square-foot facility, that houses a florist,
baker, bank, craft shop, photo finisher, dry cleaner, and pharmacy under the same
roof as grocery and household items is correctly called a:
A) membership warehouse club
B) wholesale outlet
C) factory outlet
D) supercenter
E) mass merchandiser
A D
Why is the selection of a retail location so critical to a store's success?
A) Location affects pricing
decisions but does not affect
store image.
B) Customers will not drive out
of their way to find a store.
C) A location decision ties up
funds that will not appreciate or
gain in value.
A D
D) A location decision typically
requires long-term commitment
of resources.
E) Employee density is affected
by the area in which the store is
located.
The newest generation of shopping centers is:
A) regional malls
B) shopping business districts
C) lifestyle centers
D) franchised centers
E) strip malls
A C
Another name for an anchor store is a _____.
A) mass merchandiser
B) generator store
C) host store
D) shopping center pillar
E) destination store
A B
Laura buys supplies for her catering business at a retailer that stocks a limited
selection of items, which are sold in bulk on a cash-and-carry basis to members
only. As she browses through a huge store, she buys flour, a set of muffin pans,
and a package of paper towels as well as an assortment of fresh produce. Laura is
most likely shopping at a(n):
A) off-price discount retailer
B) factory outlet
C) industrial supply warehouse
D) warehouse membership club
E) wholesale outlet
A D
A _____ is an off-price retailer that is owned and operated by a manufacturer and
carries one line of merchandise--its own.
A) mass merchandiser
B) factory outlet
C) wholesale club
D) discount store
E) bargain basement store
A B
Well-known manufacturers such as Nike, Liz Claiborne, and Mikasa have decided
the most profitable way to dispose of out-of-season and irregular stock is to open
stores and sell their own merchandise. These stores are types of:
A) seasonal outlets
B) mass merchandisers
C) factory outlets
D) discount stores
E) bargain basements
A C
Which of the following statements about restaurants is true? A) Restaurants are clearly a
retailing establishment. A D
B) There is a strong demand for
many more restaurants.
C) The demographic issue of
time-poor consumers has led to
a growing demand for
restaurants.
D) Because barriers to entry are
low, the restaurant business
appeals to many people.
E) Restaurants are clearly a
service industry.
Manufacturers of Pampered Chef kitchen equipment and Longaberger baskets
utilize party plan selling. The sales transactions usually occur in a home setting.
This form of nonstore retailing is called:
A) direct retailing
B) personal marketing
C) direct-response marketing
D) vending
E) selling representation
A A
Irina Gomez has decided to sell a sourcebook of Hispanic American suppliers to
southeastern businesses in predominantly Hispanic areas. She plans to call
prospective customers and try to sell to them over the phone. Gomez will be using
which of the following retailing techniques?
A) m-commerce
B) indirect retailing
C) franchising
D) vending
E) direct-response marketing
A E
Telemarketing can consist of either unsolicited _____ sales calls, or _____ sales
calls, which allow companies to receive orders through toll-free telephone
numbers.
A) order placement; lead
generation
B) push strategy; pull strategy
C) systematic; synergistic
D) qualifying; finalizing
E) outbound; inbound
A E
The Mad Stencilist has decided to demonstrate how to use its products to create
custom gift tags on a local cable television channel and encourage shoppers to call
a toll-free number to purchase the merchandise with a credit card. This form of
retailing is called a(n):
A) in-store electronic shopping
B) videotex
C) shop-at-home network
D) electronic point of sale
E) catalog viewing
A C
The Cedar Store carries a full line of cedar swings, gliders, garden benches, and
tables. All of its products can be purchased through its Web site. The site has done
A) online retailing
B) shop-at-home networking A A
well since the Cedar Store's products do not need to be touched or smelled before
purchase. The Cedar Store is engaging in:
C) mobile vending
D) franchising
E) electronic wholesaling
Breit Ideas is an online retailer that is licensed to sell products designed by Mary
Engelbreit--everything from Christmas ornaments and books to wallpaper and
toys. Breit Ideas is an example of a:
A) product and trade name
franchisee
B) redistributor franchisor
C) business format franchisee
D) licensed franchisor
E) relationship franchisee
A A
The Home Depot has selected orange as its corporate color. It's a good choice. At
the gut level, orange connotes happiness and warmth. A recent article in one of
the company's advertising brochures spoke about choosing colors for home
decorating. It referred to this color as "joyful orange" The color orange is part of
the _____ at The Home Depot stores.
A) cultural impact
B) atmosphere
C) target strategy
D) merchandise mix
E) promotional strategy
A B
Les Ailes de la Mode is a Quebec retailer that has built its name around customer
relationships. The specialty department store creates relationships with its
customers through their experiences in the store. Its vice-president of marketing
has said, "We are here to build a very good personalized experience--it's not just a
matter of marketing strategy, it's our mission. " The shopping experience at the
store includes "little extras" like free coat check, free shoeshines, baby feeding
rooms, a highly trained staff (and more of them on the floor), and a place for
people to go to read the newspaper. This is an example of:
A) lifestyle marketing
B) retail positioning
C) a store that emphasizes
customer service
D) trading up
E) all of these
A C
A retail store can be classified according to its:
A) distribution method
B) inventory control
C) product assortment
D) management style
E) decor and atmosphere
A C
Small neighborhood florists, shoe stores, and ethnic food markets are most likely
to be:
A) supercenters
B) franchise outlets
C) membership clubs
D) chain stores
E) independent retailers
A E
The initial attraction of drugstores for consumers was the pharmaceuticals they A) raised their prices A C
carried, but now consumers can have their prescriptions filled at mass
merchandisers, and supermarkets and through the mail. What have drugstores
done to remain competitive?
B) taken legal steps to prevent
the sale of prescription drugs at
supermarkets
C) provided customers with
value-added services
D) introduced generic
prescription medicines
E) nothing
_____ carry a limited line of high-turnover, high-priced goods and resemble
miniature supermarkets. These self-service stores are typically located near
residential areas and are open long hours, seven days a week.
A) Specialty stores
B) Wholesale stores
C) Convenience stores
D) Factory outlets
E) General stores
A C
The first task of developing a retail strategy is to:
A) create a buying organization
B) decide what to buy
C) define the target market
D) create a promotional strategy
E) define the pricing policies
A C
The Summer Place has decided consumers will be drawn to its offering of wicker
furniture and will even be willing to drive out of their way. The store really needs
to keep its overhead costs (such as rent) low and wants to avoid locating near
competitors. For a location, the Summer Place will probably choose a:
A) factory outlet
B) strip center
C) freestanding store
D) shopping center
E) regional mall
A C
The newest generation of shopping centers is:
A) regional malls
B) shopping business districts
C) lifestyle centers
D) franchised centers
E) strip malls
A C
Another name for an anchor store is a _____.
A) mass merchandiser
B) generator store
C) host store
D) shopping center pillar
E) destination store
A B
Anchor stores (or generator stores):
A) are the stores within the mall
that sell services rather than
products
B) are often large department
stores that are located at
opposite ends of a mall to create
a heavy pedestrian traffic flow
C) usually specialize in high-
priced items like furniture
D) is the generic name given to
supermarkets that are located
within shopping malls
E) is a term for retail stores that
"drop off" to freestanding
locations
A B
A recent pricing trend among retailers is EDLP, which stands for:
A) electronic data laser
purchasing
B) efficient data long-range
planning
C) everyone doing large
purchases
D) everyday low pricing
E) efficient dollar loss planning
A D
A warehouse membership club:
A) only sells to ultimate
consumers
B) is a type of category
specialist
C) offers a medium level of
customer service
D) tends to have more educated
and more affluent customers
than other retail establishments
E) has extensive merchandise
depth, which it uses to create
demographic positioning
A D
_____ refers to shopping without visiting a store and is currently growing faster
than in-store shopping because of the consumer demand for convenience.
A) Nonstore retailing
B) Customerization
C) Hypershopping
D) Niche marketing
E) Specialty merchandising
A A
_____ is a low-profile, yet important, form of retailing in which consumers get
products out of automated machines, and it accounts for $40 billion worth of sales
each year in the United States.
A) Automatic vending
B) Party-plan selling
C) Direct marketing
D) A pyramid scheme
E) Professional selling
A A
Marketers can precisely target their customers according to demographics,
geographics, and psychographics with:
A) direct mail
B) vending machines
C) franchise stores
D) specialty retail outlets
E) electronic selling
A A
The Mad Stencilist has decided to demonstrate how to use its products to create
custom gift tags on a local cable television channel and encourage shoppers to call
a toll-free number to purchase the merchandise with a credit card. This form of
retailing is called a(n):
A) in-store electronic shopping
B) videotex
C) shop-at-home network
D) electronic point of sale
E) catalog viewing
A C
A retailer in Peoria, Illinois, is licensed to sell Snapper lawn mowers. This retailer
is a:
A) product and trade name
franchisee
B) redistributor franchisor
C) business format franchisee
D) licensed franchisor
E) relationship franchisee
A A
Breit Ideas is an online retailer that is licensed to sell products designed by Mary
Engelbreit--everything from Christmas ornaments and books to wallpaper and
toys. Breit Ideas is an example of a:
A) product and trade name
franchisee
B) redistributor franchisor
C) business format franchisee
D) licensed franchisor
E) relationship franchisee
A A
General Nutrition Center, Uniglobe Travel, and Wendy’s are all examples of A) product and trade name A C
_____ because the franchisee buys the right to use the franchisor’s approach to
doing business.
franchisors
B) redistributor franchisors
C) business format franchisors
D) licensed franchisors
E) relationship franchisors
Texas-based Grape Vine Market is an 18,000-square-foot store offering highly
collectible food and wine—along with some other culinary perks, including a
cooking school—all in a setting crafted to make shoppers feel comfortable.
Greeted by warm lighting, a muted color scheme, and REM or Fleetwood Mac on
the sound system, customers first enter the wine department, a 10,000-square-foot
oval featuring more than 5,500 labels from around the world. There are no aisles;
instead racks are arranged asymmetrically to create flow and movement. The
Grape Vine Market uses _____ to differentiate itself from supermarkets.
A) nonstore retailing
B) m-commerce
C) convenience retailing
D) e-business
E) interactivity
A E
The buyer who heads a department in a department store is responsible for the:
A) store's exchange and return
policies
B) store's credit policies
C) chain's expansion efforts
D) merchandise mix in that
department
E) store's advertising program
A D
Texas-based Grape Vine Market is an 18,000-square-foot store offering highly
collectible food and wine—along with some other culinary perks, including a
cooking school—all in a setting crafted to make shoppers feel comfortable. It
stocks more than 5,500 different kinds of wine. This description alone is enough
to tell you that Grape Vine Market is best described as a:
A) hypermarket
B) convenience store
C) specialty store
D) department store
E) general store
A C
_____ are large, departmentalized, self-service retailers that specialize in wide
assortments of foodstuffs and a few nonfood items.
A) Supermarkets
B) Convenience stores
C) Membership wholesale clubs
D) Discount stores
E) Assortment merchandisers
A A
Which of the following environmental trends is most directly influencing
supermarket operations?
A) Regional malls are hosting
fewer anchor stores.
B) To make a profit,
supermarkets are having to
A C
carry products with high gross
margins.
C) The number of dual-income
and single-parent families is
increasing.
D) Recessionary trends are
decreasing the amount of money
spent on nonfood items.
E) Consumers are more inclined
to pamper themselves.
The initial attraction of drugstores for consumers was the pharmaceuticals they
carried, but now consumers can have their prescriptions filled at mass
merchandisers, and supermarkets and through the mail. What have drugstores
done to remain competitive?
A) raised their prices
B) taken legal steps to prevent
the sale of prescription drugs at
supermarkets
C) provided customers with
value-added services
D) introduced generic
prescription medicines
E) nothing
A C
Home Depot Fuel is the name of a chain of convenience stores owned and
operated by The Home Depot. These stores typically sell gas and are located just
outside The Home Depot warehouse store. What else do you know about the Fuel
convenience stores?
A) They carry a wide
assortment of products.
B) They carry a limited line of
high-turn goods.
C) They compete on the basis of
low price
D) They carry a limited but
deep assortment of products.
E) They carry the same
merchandise found in The
Home Depot.
A B
_____ carry a broad assortment of nationally branded hard goods (broader than a
department store) and offer customers very limited service. National chains
dominate this segment.
A) Full-line discount stores
B) Discount specialty stores
C) Factory outlets
D) Fashion stores
A A
E) Specialty supercenters
Kmart utilizes a strategy of moderate to low prices on large quantities of products
and lower levels of service to stimulate a high turnover of inventory. Kmart offers
a wide variety of different product lines. Kmart is an example of a:
A) factory outlet
B) mass merchandiser
C) convenience store
D) franchising operation
E) specialty store
A B
Glen’s Safety First! sells a huge assortment of firefighting equipment at greatly
reduced prices. It offers customers few services and competes on the basis of
moderate to low prices on the large quantities of merchandise it stocks. Glen’s
Safety First! is an example of a:
A) full-line discount store
B) specialty discount store
C) general store
D) department store
E) wholesale store
A B
Arby's, Jiffy-Lube, Baskin-Robbins, and Sylvan Learning Centers are examples of
_____ because the franchisee buys the right to use the franchisor’s approach to
doing business.
A) trade name franchising
B) product franchising
C) business format franchising
D) franchise wholesaling
E) logistic franchising
A C
The merchandise mix:
A) is the term used for price-
bundled merchandise
B) is the term for the marketing
communications used by
retailers
C) refers to the six levels in a
buying organization
D) describes the composition of
a traditional shopping center
E) is the retailer's product
offering
A E
Why is the selection of a retail location so critical to a store's success?
A) Location affects pricing
decisions but does not affect
store image.
B) Customers will not drive out
of their way to find a store.
C) A location decision ties up
funds that will not appreciate or
A D
gain in value.
D) A location decision typically
requires long-term commitment
of resources.
E) Employee density is affected
by the area in which the store is
located.
Which of the following statements about a retailer's promotion strategy is true?
A) The design of the promotion
strategy would be done
separately from the creation of
the retailing mix.
B) The goal of a retail store's
promotion mix is to position the
store in consumers' minds.
C) Most advertising for retailers
is carried out at the national
level.
D) Retailers find direct-mail
marketing inefficient.
E) Retail promotion strategy
does not include public relations
activities.
A B
_____ is a low-profile, yet important, form of retailing in which consumers get
products out of automated machines, and it accounts for $40 billion worth of sales
each year in the United States.
A) Automatic vending
B) Party-plan selling
C) Direct marketing
D) A pyramid scheme
E) Professional selling
A A
Marketers can precisely target their customers according to demographics,
geographics, and psychographics with:
A) direct mail
B) vending machines
C) franchise stores
D) specialty retail outlets
E) electronic selling
A A
_____ is the use of a telephone to sell directly to customers. A) Telemarketing
B) Two-way vending A A
C) Teleprompting
D) Indirect marketing
E) Phone vending
Which of the following statements about online retailing is true?
A) Online retailing is also called
e-merchandising.
B) After a rapid increase in
sales, the popularity of online
retailing has declined over the
last decade.
C) Most traditional retailers are
using online retailing to move
merchandise that can be
purchased at their stores.
D) The earliest use of online
retailing was for Internet
auctions.
E) All of these statements about
online retailing are true.
A C
A(n) _____ is a continuing relationship in which an individual or business grants
business rights to operate or sell a product to another individual or business.
A) leasing contract
B) alliance for profit
C) brokered partnership
D) franchise
E) countertrade
A D
The Home Depot has selected orange as its corporate color. It's a good choice. At
the gut level, orange connotes happiness and warmth. A recent article in one of
the company's advertising brochures spoke about choosing colors for home
decorating. It referred to this color as "joyful orange" The color orange is part of
the _____ at The Home Depot stores.
A) cultural impact
B) atmosphere
C) target strategy
D) merchandise mix
E) promotional strategy
A B
As a general rule of thumb, a retailer that has a high gross margin will have:
A) m-commerce capabilities
B) an inventory management
system
C) low prices
D) salespeople trained in cross-
selling techniques
A E
E) high prices
Each department in a department store is usually headed by a _____ who selects
the merchandise mix for the department and may also choose the promotional
devices and personnel for that department.
A) franchisee
B) financial broker
C) comptroller
D) human resources manager
E) buyer
A E
The buyer who heads a department in a department store is responsible for the:
A) store's exchange and return
policies
B) store's credit policies
C) chain's expansion efforts
D) merchandise mix in that
department
E) store's advertising program
A D
Which of the following statements about specialty stores is true?
A) Customers usually consider
price to be the most important
factor in their selection of a
specialty store.
B) Customers at specialty stores
are not concerned with the
distinctiveness of the
merchandise or the store's
physical appearance.
C) Specialty stores typically
avoid price wars.
D) Specialty stores are
ineffective test markets.
E) A typical specialty store
carries a wider assortment of
specialty merchandise than
department stores.
A C
Giant Eagle is a chain of retail outlets in the U.S. Midwest that are described as
large, departmentalized, self-service stores that specialize in wide assortments of
foodstuffs and limited nonfood items. Giant Eagle stores are:
A) off-price retailers
B) discount stores
C) wholesale clubs
D) convenience stores
A E
E) supermarkets
According to the text, one way supermarkets establish long-term relationships
with their customers is to:
A) conduct longitudinal focus-
group studies
B) avoid any obviously ethnic
appeal
C) limit the number of nonfood
items carried by the stores
D) create and use loyalty
marketing programs
E) create customer correlation
studies
A D
Safeway, Avanza (for the Hispanic market), Publix, and other supermarket chains
offer a variety of nontraditional goods and services such as video rental, flower
shops, dry cleaning, and banking. This practice is called:
A) convenience merchandising
B) retail wheeling
C) specialty service
D) trade-up positioning
E) scrambled merchandising
A E
Home Depot Fuel is the name of a chain of convenience stores owned and
operated by The Home Depot. These stores typically sell gas and are located just
outside The Home Depot warehouse store. What else do you know about the Fuel
convenience stores?
A) They carry a wide
assortment of products.
B) They carry a limited line of
high-turn goods.
C) They compete on the basis of
low price
D) They carry a limited but
deep assortment of products.
E) They carry the same
merchandise found in The
Home Depot.
A B
A retail operation that has a 90,000-square-foot facility, that houses a florist,
baker, bank, craft shop, photo finisher, dry cleaner, and pharmacy under the same
roof as grocery and household items is correctly called a:
A) membership warehouse club
B) wholesale outlet
C) factory outlet
D) supercenter
E) mass merchandiser
A D
In 2004, over 2 million people visited Wine.com and bought 14,000 different fine
wines at discounted prices. Wine.com shipped wine to over 100,000 customers
A) full-line discount store
B) category killer A B
generating more than $30 million in sales in 2004. Wine.com has since become
the most trafficked wine site in the world. As a retail operation, Wine.com would
be correctly labeled an online:
C) general store
D) department store
E) off-price retailer
Retailers control the six Ps of the retailing mix. The six Ps include the marketing
mix plus:
A) personnel and presentation
B) production and people
C) potential and perception
D) personality and persuasion
E) positioning and purchasing
A A
Retailers such as Target and JCPenney are responding to consumer needs by
changing product mixes, hours of operation, locations, and prices. These stores are
changing aspects of their:
A) merchandising groupings
B) retailing mixes
C) product offerings
D) retail trade areas
E) store positioning strategies
A B
The merchandise mix:
A) is the term used for price-
bundled merchandise
B) is the term for the marketing
communications used by
retailers
C) refers to the six levels in a
buying organization
D) describes the composition of
a traditional shopping center
E) is the retailer's product
offering
A E
Data mining:
A) is a relatively new method of
inventory control
B) uses complex mathematical
models to help retailers make
better product mix decisions
C) is a computerized technique
for making site location
decisions
D) determines the level of
quality and service desired by
A B
customers
E) measures levels of services
and identifies inadequate service
As competition in the retail industry has intensified, Office Depot has begun
selling a _____ of office furnishings with the Christopher Lowell brand. Office
Depot is the only place that you will find the Christopher Lowell brand. The
prices of this merchandise are lower than prices for national brands and give
consumers greater value.
A) private brand
B) generic brand
C) family brand
D) promotional brand
E) specialty brand
A A
Which U.S. retailer is the number one sales volume retailer in the world?
A) Sears
B) JCPenney
C) Target
D) Kroger
E) Wal-Mart
A E