Deck 15: Retailing

Question 1

Emily has just opened a health food store that sells organic foods,herbal supplements,and environmentally friendly products.Because it will be a specialty store,she should have a broad product assortment with moderately low prices.

Answer 1

False
Specialty stores have narrow product assortments and moderate to high prices.

Question 2

Retailing can be defined as all the activities directly related to the sale of goods and services to the ultimate consumer for personal,nonbusiness use.

Answer 2

True

Question 3

Factory outlet stores are generally the same as warehouse clubs,except that a factory outlet store carries only the merchandise of the manufacturer that owns it.

Answer 3

False
Factory outlet stores are generally the same as off-price discount stores.

Question 4

Specialty discount stores are often called category killers because they dominate the competition in their narrow merchandise segment.

Question 5

Independent retailer shops are stores owned and operated as a group by a single organization.

Question 6

It is commonplace for a franchisee to pay money to the franchisor for the cost of advertising.

Question 7

The two types of franchising are target market franchising and geographic franchising.

Question 8

Marketers who use nonstore retailing no longer have to worry about the "place" element of the four Ps.

Question 9

Supercenters are more than just larger versions of traditional "markets." In addition to foodstuffs,supercenters have pharmacies,dry cleaners,portrait studies,photo finishing,hair salons,and restaurants.

Question 10

The six Ps of the retailing mix are product,place,price,promotion,personnel,and planning.

Question 11

Flash Foods is the name of a chain of small stores that carry high-turnover products such as lip balm,milk,soda,beer,bread,and aspirin.Flash Foods stores are open all day every day and would best be classified as convenience stores.

Question 12

Pick of the Litter has just purchased a sizable plot of land on which it will build a store building with a large parking lot.Across the street is a collection of specialty shops and a furniture store.Pick of the Litter will be part of a strip shopping center.

Question 13

Jennifer owns a greeting card store where she also sells women's purses,Crocs shoes for the whole family,Jibbitz charms,cell phone skins,Sandy Lion stickers,Yankee candles,Godiva chocolates,Precious Memories figurines,beaded jewelry,and stuffed animals.Jennifer uses multibrand merchandising.

Question 14

Traditional department stores and specialty stores are more likely to charge the full "suggested retail price" for goods than are factory outlets.

Question 15

The person who called Alisa last night and tried to sell her double-paned windows for her home was using outbound telemarketing.

Question 16

Direct retailers' sales have skyrocketed over the past few decades as women have entered the workforce.

Question 17

A retailing establishment that sells a wide variety of shopping and specialty goods,including apparel,cosmetics,housewares,and electronics,would be classified as a department store.

Question 18

Electronic retailing includes the 24-hour,shop-at-home television networks and online retailing.

Question 19

Supermarkets are self-service retailers that specialize in food and food products,although many now carry nonfood items as well.

Question 20

Specialty discount stores differ from other discount stores.While most other discounters offer a predictable assortment of merchandise,the styles and brands offered at specialty discount stores change frequently because they buy only what is currently available at a good deal.

Question 21

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

Question 22

M-commerce is a type of managed commerce in which both buyer and seller end the transaction with a win-win feeling.

Question 23

Providing great customer service is one of the most challenging elements in the retail mix because customer expectations for service are so varied.

Question 24

Interactivity in the retail environment is not feasible in terms of its costs.

Question 25

Jim's Bike Shop sells bicycles for the serious racer to the casual cyclist.Jim's also sells biking gear and clothing.Jim is the sole owner of the store,so in terms of ownership,his store would be classified as a(n):

A)independent retailer.
B)freestanding store.
C)franchise.
D)chain store.
E)common retailer.

Question 26

The number of different varieties of fishing lures carried by the Angler's Store refers to the store's:

A)supply standard.
B)complete retail offering.
C)retail mix.
D)volume.
E)assortment depth.

Question 27

_____ 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

Question 28

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
B)chain stores
C)franchise outlets
D)specialty clubs
E)product assortment stores

Question 29

Stores that are owned and operated as a group by a single organization are called _____.Under this form of ownership,many administrative tasks are handled by the home office.

A)home base stores
B)independent retailers
C)franchisees
D)chain stores
E)strip centers

Question 30

Which type of retail ownership is owned and operated by an individual but is licensed by a larger supporting organization?

A)Independent retailer
B)Chain store
C)Franchise
D)Cooperative
E)Secondary retailer

Question 31

Retail establishments are generally classified according to all of the following EXCEPT:

A)ownership
B)level of sales
C)level of service
D)price
E)product assortment

Question 32

Rochelle owns and operates a McDonald's restaurant.She has licensed the right to use McDonald's name,logo,and products.Rochelle's restaurant is an example of a(n):

A)doubly managed outlet.
B)chain store.
C)franchise.
D)independent retailer.
E)licensor.

Question 33

_____ 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

Question 34

Which of the following types of stores has a high gross margin,a narrow product assortment,and a high level of service?

A)A supermarket
B)A warehouse club
C)A convenience store
D)A full-line discount store
E)A specialty store

Question 35

A store's atmosphere is the overall impression conveyed by a store's physical layout,decor,and surroundings.

Question 36

M-commerce involves consumers using wireless mobile devices to connect to the Internet and shop.

Question 37

Every October through December,Hickory Farms opens a temporary store in many malls to sell products during the Christmas season without the long-term commitment of a more expensive retail lease.This is an example of a pop-up shop.

Question 38

Which of the following retailers probably offers the LOWEST level of service?

A)a dressmaker
B)a warehouse club
C)a small hardware store
D)an upscale restaurant
E)all retailers offer the same level of service.

Question 39

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

Question 40

Color can be used by retailers to create a mood or focus customer attention on a particular product.

Question 41

_____ are large,departmentalized,self-service retailers that specialize in food and some nonfood items.

A)Supermarkets
B)Convenience stores
C)Membership wholesale clubs
D)Discount stores
E)Assortment merchandisers

Question 42

James wants to open a small store that caters to the model railroad hobbyist.The store would sell model trains,scenery,accessories,and books on the subject of model railroading.Which of the following types of stores would most likely support an effective launch of his business idea?

A)An off-price retailer
B)A specialty store
C)A full-discount store
D)A general store
E)A warehouse club

Question 43

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.Grape Vine Market is best described as a:

A)hypermarket
B)convenience store
C)specialty store
D)department store
E)general store

Question 44

Which U.S.retailer is the number one sales volume retailer in the world?

A)Sears
B)JCPenney
C)Target
D)Kroger
E)Walmart

Question 45

Flash Foods is the name of a chain of convenience stores with self-service gas pumps.What do you know about convenience stores?

A)They carry a wide assortment of products.
B)They carry a limited line of high-turnover goods.
C)They compete on the basis of low price.
D)They carry a limited but deep assortment of products.
E)They carry the freshest of produce.

Question 46

Fairway is a chain of retail outlets in Iowa,Minnesota,Nebraska,and Illinois that are described as large,departmentalized,self-service stores that specialize in food and limited nonfood items.Fairway stores are:

A)off-price retailers
B)discount stores
C)wholesale clubs
D)convenience stores
E)supermarkets

Question 47

Kroger is the second-largest supermarket chain in the United States.Which of the following is the most likely reason why Kroger supermarkets sell all types of foodstuffs as well as nonfood products including a wide range of eyewear and 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

Question 48

A _____ is a retail store that stocks pharmacy-related products and services as its main draw.

A)convenience store
B)drugstore
C)supermarket
D)discount store
E)extreme-value store

Question 49

Melanie's job for Coldwater Creek,a clothing retailer,is to choose items that are appropriate for the store and its clientele.The items must suit the needs of the customers but be within the price range that the store has developed for its customers.Melanie's job is that of a(n):

A)buyer.
B)purchasing agent.
C)store manager.
D)sales clerk
E)franchisee

Question 50

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

Question 51

Which of the following statements about specialty stores is true?

A)Specialty stores find it easy to compete on price with big-box stores.
B)Customers at specialty stores are not concerned with the distinctiveness of the merchandise or the store's physical appearance.
C)Customers of specialty stores usually consider price to be secondary.
D)Specialty stores are ineffective test markets.
E)A typical specialty store carries a wider assortment of specialty merchandise than department stores.

Question 52

Housing several departments under one roof,a _____ carries a wide variety of shopping and specialty goods,including apparel,cosmetics,housewares,electronics,and sometimes furniture.

A)supermarket
B)specialty store
C)convenience store
D)super club
E)department store

Question 53

_____ 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

Question 54

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.

Question 55

_____ 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

Question 56

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

Question 57

Which type of retail store specializes in a given type of merchandise?

A)An independent store
B)A department store
C)A discount store
D)A specialty store
E)A first-level store

Question 58

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

Question 59

Which type of retail store would typically have the highest labor costs?

A)A warehouse club
B)A department store
C)An off-price store
D)An off-price retailer
E)A discount store

Question 60

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

Question 61

Susan Adams makes children's clothing.She is also the sales representatives and sets up parties and fashion shows at homes of mothers to demonstrate the quality and value of her clothing.Susan is using:

A)primary marketing.
B)automatic vending.
C)personal marketing.
D)electronic retailing.
E)direct retailing.

Question 62

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 the 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

Question 63

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.

Question 64

Southwestern Company recruits and trains college students to sell educational reference books,software,and children's books door-to-door.This form of nonstore retailing is called:

A)direct retailing
B)personal marketing
C)direct marketing
D)automatic vending
E)electronic retailing

Question 65

A publisher of books on holiday decorating,cooking,and crafts has to find a way to dispose of its overruns 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.

Question 66

Specialty stores such as Best Buy,Staples,Dick's Sporting Goods,and Bed,Bath,and Beyond 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.

Question 67

_____ 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
D)Membership clubs
E)General stores

Question 68

A retail operation that has a 90,000-square-foot facility and houses a florist,baker,bank,craft shop,photo finisher,dry cleaner,and pharmacy under the same roof as grocery and household items would be called a:

A)membership warehouse club.
B)wholesale outlet.
C)factory outlet.
D)supercenter.
E)mass merchandiser.

Question 69

_____ 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

Question 70

_____ 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

Question 71

Which type of retailing is the selling of products by representatives who work door-to-door,office-to-office,or at home sales parties?

A)Personal marketing
B)Remote retailing
C)Direct retailing
D)Off-site retailing
E)Primary retailing

Question 72

Which type of discount store offers consumers very limited service and carries a broad assortment of nationally branded "hard goods," such as housewares,toys,automotive parts,clothing,bedding,and maybe a limited line of nonperishable food items?

A)Full-line discount stores
B)Discount specialty stores
C)Factory outlets
D)Fashion stores
E)Specialty supercenters

Question 73

Toys "R" Us sells a huge assortment of toys and children's books 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.Toys "R" Us is an example of a:

A)full-line discount store.
B)specialty discount store.
C)general store.
D)department store.
E)wholesale store.

Question 74

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 shop-at-home television networks.
E)Nonstore retailing is increasing at a rate lower than in-store retailing.

Question 75

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.

Question 76

_____ 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

Question 77

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.

Question 78

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

Question 79

_____ is a low-profile yet important form of retailing in which consumers get products out of automated machines,and it accounts for billions of dollars worth of goods each year in the United States.

A)Automatic vending
B)Party-plan selling
C)Direct marketing
D)A pyramid scheme
E)Professional selling

Question 80

_____ 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