Deck 14: Retailing

Question 1

Unlike nonstore retailing,in-store retailing enables customers to shop without visiting a physical store location.

Answer 1

 False

Question 2

A _____ is the originator of a trade name,product,methods of operation,and the like that grants operating rights to another party to sell its product.

A)​broker
B)franchisor​
C)consumer​
D)wholesaler​

Answer 2

 B

Question 3

Delta Graphics Inc.,a company specializing in publishing educational books,recruits and trains college students to sell its products door-to-door.Which of the following forms of nonstore retailing is illustrated in the scenario?

A)​Direct retailing
B)Telemarketing​
C)Automatic vending​
D)E-tailing​

Answer 3

 A

Question 4

Which of the following statements is true of specialty stores?

A)​They have the widest product assortment among other retail establishments.
B)They offer virtually no service to customers.​
C)They use low prices and discounts to lure shoppers.​
D)They carry narrow product lines that are considerably deep.​

Question 5

Shopper analytics is used in searching for and discovering meaningful patterns in shopper data for the purpose of fine-tuning,developing,or changing market offerings.

Question 6

_____ represents all the activities directly related to the sale of goods and services to the ultimate consumer for personal,nonbusiness use.

A)​Product development
B)Production​
C)Retailing​
D)Manufacturing​

Question 7

Will,a sales person at a superstore,mistakenly provides wrong information to a customer about the location of a specific brand of dishwashing liquid.The customer,as a result,wastes time searching for the product.This is an example of brand cannibalization.

Question 8

Target markets in retailing are defined by demographics,geographic boundaries,and psychographics.

Question 9

Daisy's is a self-service retail store.Its various departments offer one-stop shopping for groceries,drugs,apparel,florists,and banking centers.Daisy's is an example of a _____.

A)​supermarket
B)category killer​
C)warehouse club​
D)factory outlet​

Question 10

Service quality is a priority in service industries because service industries are customer oriented.

Question 11

Henry operates an outlet of Moonlight Café,a world renowned fast-food restaurant,in his locality.He started the restaurant after getting a license from the owners of Moonlight Café and by regularly paying them a fee for the right to use their brand name,products,and methods of operation.Henry most likely operates a(n)_____.

A)​independent retail store
B)warehouse club
C)chain store
D)​franchise

Question 12

_____ is a form of nonstore retailing that entails the use of machines to offer goods for sale.

A)​Direct retailing
B)Telemarketing​
C)Automatic vending​
D)E-tailing​

Question 13

Floor stock refers to the inventory held in reserve for potential future sale in a retailer's storeroom or stockroom.

Question 14

A category killer is a channel intermediary that sells mainly to consumers.

Question 15

Which of the following is a similarity between factory outlets and off-price retailers?

A)​Both use low prices and discounts to lure shoppers.
B)Both offer high levels of customized service to customers.​
C)Both follow an agile approach to inventory.​
D)Both carry multiple product lines that are considerably deep.​

Question 16

Specialty stores compete on the basis of low prices,high turnover,and high volume.

Question 17

Determining a target market is optional while creating the retailing mix.

Question 18

The Hunt,a liquor store,is famous for its unique and extensive collection of alcoholic beverages.Moreover,its employees possess up-to-date knowledge of the liquor available in the store,which allows them to assist customers in their purchasing decisions.The Hunt is an example of a _____.

A)​supermarket
B)specialty store​
C)warehouse club​
D)convenience store​

Question 19

A difference between supermarkets and convenience stores is that unlike supermarkets,convenience stores:

A)​charge lower prices.
B)carry a much more limited line of high-turnover convenience goods.​
C)enable customers to shop without visiting a physical store location.​
D)offer no service to customers.​

Question 20

Establishing channel-wide network coherence is a key factor in maintaining the quality of service.

Question 21

Which of the following is a difference between off-price retailers and specialty shops?

A)​Off-price retailers keep a greater amount of floor stock, whereas specialty shops keep a lesser amount of floor stock.
B)Off-price retailers charge higher prices for customers, whereas specialty shops charge lower prices for customers.​
C)Off-price retailers focus on lean inventory management, whereas specialty shops have an agile approach to inventory.​
D)Off-price retailers focus on providing high quality customer service, whereas specialty shops de-emphasize customer service.​

Question 22

_____ is a selling technique that seeks to broaden customers' original purchases with related items.

A)​Suggestion selling
B)Co-marketing​
C)Shopper marketing​
D)Benefit selling​

Question 23

_____ is the technique used to sift through data collected by point-of-purchase scanning equipment and help retailers find ideal locations for each product.

A)​Big data analysis
B)Shopper marketing​
C)Market-basket analysis​
D)Shopper analytics​

Question 24

Choosing the right distribution channel for a service would:

A)​decrease the time the service is made available.
B)vary service quality across different geographic regions.​
C)increase the costs of providing the service.​
D)add to customer convenience.​

Question 25

In the context of retail operations models,unlike off-price retailers,specialty shops:

A)​adopt an operating model that implies low prices for customers.
B)focus on lean inventory management.​
C)can accommodate a broader range of customer demands.​
D)de-emphasize customer service and product selection.​

Question 26

Strategic retailing goals typically focus on:

A)​reducing costs of goods sold.
B)increasing the cost of goods sold.​
C)reducing return on assets or equity.​
D)not using a retailing mix.​

Question 27

What is brand cannibalization? Why is it dangerous to the retailer?

Question 28

Why is it important to maintain service quality in service industries? Explain the four areas that service distribution should focus on to maintain the quality of service.

Question 29

Which of the following is a disadvantage of a freestanding store location?

A)​It has reduced visibility.
B)It faces stiff competition from retailers.​
C)It has high site cost and rent and a lot of nearby competitors.​
D)It may be hard to attract customers to a freestanding location.​

Question 30

Which of the following is true of retail channel omnification?

A)​It creates separate distribution systems for different distribution channels.
B)It makes each distribution channel accountable for its own dedicated inventory.​
C)It involves treating each distribution channel as an entirely different business.​
D)It combines different distribution channels into a single, unified system for saving costs.​

Question 31

Which of the following is an advantage of retail channel omnification?

A)​It allows customers to order products online and pick their orders from stores.
B)It benefits customers as they can shop from the comfort of their homes.​
C)It enables retailers to offer competitive prices across their various outlets.​
D)It benefits retailers as customers must enter their stores in order to claim their purchases.​

Question 32

The goal of tactical retailing is to:

A)​eliminate the need of segmenting a market.
B)increase the sales of a specific item.​
C)increase overhead costs.​
D)eliminate the need of new advertising campaigns.​

Question 33

Zeta Inc.,a multinational retail corporation,uses a device that notifies the respective store managers whenever a customer is near their store.It also helps them to map customer foot traffic data.This is an example of _____.

A)​cloud computing
B)beacons​
C)shopper marketing​
D)click-and-connect​

Question 34

Asif,a member of a local baseball team,broke his bat during a practice match.With the final match scheduled for the next day,Asif urgently required a new bat.Therefore,he placed an order on Duke.com,an online portal for sports goods,and he dropped in at its nearest physical store to pick up his order.This is an example of the use of _____.

A)​microtargeting
B)click-and-collect​
C)telemarketing​
D)e-tailing​

Question 35

Briefly explain the process of defining a target market.

Question 36

_____ is an emerging trend that employs market data to best serve customers as they prepare to make a purchase.

A)​Retail channel omnification
B)Click-and-collect​
C)Shopper marketing​
D)Cloud computing​

Question 37

Which of the following statements is true of service failures?

A)​They can be eliminated by successful market segmentation.
B)Retailers cannot recover from service failures.​
C)They can be solved by cancelling return policies.​
D)If handled effectively, they will result in customer loyalty.​

Question 38

Briefly explain the actions a retailer should take to address retail product/service failures.

Question 39

Lily's Apparel,a renowned apparel store,focuses on Gen Y customers and provides them with a customized clothing experience.The store helps the customers to design clothes that appeal to their individual style.Lily's Apparel has defined its target market by _____.

A)​religion
B)educational qualifications​
C)geographic boundaries​
D)psychographic characteristics​

Question 40

Which of the following is true of click-and-collect?

A)​It requires representatives to sell products door-to-door, in offices, or at in-home sales parties.
B)It employs outbound and inbound telephone contacts to sell directly to customers.​
C)It enables consumers to make their purchases online and pick up their orders from physical stores.​
D)It allows customers to shop over the Internet and have items delivered directly to their door.​