Deck 15: Retailing

Question 1

Shopper Marketing is focused on:

A)influencing the in-store behavior of a shopper by using displays, samples, and coupons
B)securing those customers who check prices in-store using their mobile device
C)bringing those individuals who primarily shop online, into the store
D)upselling to vulnerable customers

Answer 1

A

Question 2

The top 250 retailers in the world,based on sales,had combined sales of approximately:

A)$1.3 trillion
B)$2.3 trillion
C)$3.3 trillion
D)$4.3 trillion

Answer 2

D

Question 3

Retailing is an important marketing activity.Not only do producers and consumers meet through retailing actions,but retailing also creates ______ and has a significant impact on the economy.

A)the nation's largest source of tax revenues
B)public service to charities
C)harvesting possibilities
D)customer value

Answer 3

D

Question 4

Major retail categories in Canada include:

A)automotive, coffee, furniture, and clothing.
B)automotive, food, furniture, and clothing.
C)SUVs, beverage, homes, and services.
D)SUVs, food, homes, and clothing.

Question 5

Each of the following is an example of a corporate chain EXCEPT:

A)Hudson's Bay
B)Guardian Drugs
C)Loblaws
D)Walmart

Question 6

Canada's largest department store companies (Hudson's Bay,Walmart and Sears)have combined sales greater than the GDP of which two countries?

A)Slovenia and El Salvador
B)Iceland and Honduras
C)Belgium and Belize
D)Gabon and Nicaragua

Question 7

All of the following are described as aspects of v-commerce,except:

A)some vending machines are integrated with Wi-Fi
B)vending machines only sell fast-food (chips, pop, chocolate bars, etc.)
C)vending machines can accept cashless purchases from smartphones
D)new machines are becoming 'green'

Question 8

A women's clothing store having only one outlet likely falls under what form of ownership?

A)Wholesaler
B)Contractual system
C)Corporate chain
D)Independent retailer

Question 9

Hudson's Bay,Walmart,Loblaws,and First Choice Haircutters are all examples of a(n)________.

A)independent retailer
B)corporate chain
C)contractual system
D)business franchise

Question 10

E-tailing,the ability to shop 24 hours a day is expected to reach global sales of ________ by 2015.

A)$10 billion
B)$20 billion
C)$30 billion
D)$40 billion

Question 11

One of the fastest growing trends in retail locations is:

A)online ordering
B)smaller stores in urban centres
C)pop-up shops
D)larger box stores in urban centre

Question 12

Canada's top three grocery store rivals (Loblaws,Sobeys,and Metro)have combined sales greater than the GDP of which country?

A)United States
B)Switzerland
C)China
D)North Korea

Question 13

As part of their community leadership strategy,Tim Hortons is involved in all of the following areas,except:

A)Timbits Minor Sports Program
B)Coffee sustainability partnership program
C)Animal welfare initiative
D)Micro-enterprise program

Question 14

Specialty discount outlets focus on one type of product,such as electronics,or books,at very competitive prices.These outlets are referred to in the trade as:

A)merchandise stores
B)supercentres
C)hypermarkets
D)category killers

Question 15

Enterprise car rental agency differentiates itself from other similar agencies by providing a delivery service.This delivery service is particularly valuable to someone who has been left stranded without transportation.What level of service does Enterprise appear to be offering?

A)self-service
B)low-service
C)limited service
D)full-service

Question 16

According to the text,Tim Hortons has locations in all of the following countries,except:

A)Gulf Cooperation Council
B)Canada
C)the United States
D)Dubai

Question 17

All of the following are aspects of Tim Hortons' strategy,as mentioned in the textbook,except:

A)provide top-quality, always fresh products
B)good customer value
C)continuous innovation
D)community leadership

Question 18

When Tim Hortons opened in 1964,they offered:

A)only two products
B)only coffee
C)more than ten products
D)more than five varieties of donuts

Question 19

One of the fastest growing trends in direct mail is:

A)subscription services, where products are delivered right to your door after signing up
B)purchasing computers online
C)shopping online, and having products sent to the nearest store
D)shopping online, and having products sent directly to your address

Question 20

Rona,Tim Hortons,and Canadian Tire are all examples of _____________ businesses.

A)manufacturing
B)wholesaling
C)retailing
D)facilitating

Question 21

Amazon.ca would be classified as what form of non-store retailing?

A)automatic vending
B)direct mail
C)television home shopping
D)online retailing

Question 22

As described in the textbook,which factors below are making it difficult for retailers to compete?

A)the internet and scrambled merchandising
B)the internet and intertype competition
C)scrambled merchandising and mobile phones
D)scrambled merchandising and intertype competition

Question 23

As a recent graduate of university,you decided to open your own 'boutique' consulting firm and provide advice to clients along with selling your mobile app that you developed.In this scenario,you would be classified as a(n):

A)corporate chain
B)administered system
C)contractual system
D)independent retailer

Question 24

Rona stores carry over 1000 types of products,ranging from drills to faucets,and garden hoses to houseplants.Rona has a wide:

A)level of service.
B)method of operation.
C)product variety.
D)merchandise line.

Question 25

Consumers are able to search for,evaluate,and order products through the Internet.This type of shopping occurs through:

A)deep discount stores.
B)power centres.
C)television home shopping.
D)online retailing.

Question 26

Your neighbourhood dry cleaner or florist is likely to be categorized according to its form of retail ownership as an independent retailer.This means it is owned by a(n):

A)individual.
B)conglomerate.
C)consortium.
D)corporation.

Question 27

A form of ownership that involves multiple outlets under common ownership is known as a(n):

A)corporate chain
B)consumer cooperative
C)contractual system
D)independent retailer

Question 28

Which of the statements about corporate chains is NOT true?

A)Corporate chains are multiple outlets under common ownership.
B)Corporate chains usually use centralized decision making.
C)Corporate chains are able to negotiate with suppliers for special services or volume discounts.
D)Corporate chains account for over 60 percent of total retail trade in Canada.

Question 29

Which of the following is a commonly used method of classifying retail outlets?

A)service versus product
B)form of ownership
C)proportion of national brands carried
D)revenue generated

Question 30

Independently owned stores that band together to act like a chain are referred to as:

A)An administered system
B)A contractual system
C)A vertical integration
D)A franchise

Question 31

A Ford dealership would be classified under what form of ownership?

A)wholesaler.
B)business-format franchise.
C)product-distribution franchise.
D)corporate chain.

Question 32

Which method of classifying retail outlets would be most appropriate for describing McDonald's,Holiday Inn,and Subway-all franchise operations?

A)form of ownership
B)level of service
C)merchandise line
D)method of operation

Question 33

Level of service refers to:

A)breadth and depth of goods provided.
B)degree of product liability held by the manufacturer.
C)degree of service provided to the customer.
D)relationship between the manufacturer, the retailer, and the consumer.

Question 34

During the days before Christmas,a health spa wants to recruit new clients.The owners realize that many people make New Year resolutions and will be looking to become fitter.What form of non-store retailing will likely be most cost effective in reaching potential new clients and making them aware of a special time-limited promotion?

A)automatic vending
B)direct mail
C)television home shopping
D)online retailing

Question 35

Metro Inc.,First Choice Haircutters,and Guardian Drugs are retail outlets that can be best classified by:

A)level of service.
B)form of ownership.
C)merchandise line.
D)method of operation.

Question 36

Which franchise below has the greatest number of North American outlets?

A)Curves
B)Tim Hortons
C)7-Eleven
D)Quiznos

Question 37

A store selling over the Internet 24/7 is characterized with relatively _____ active customer involvement and relatively _______ active retailer involvement.

A)low, low
B)low, high
C)high, low
D)high, high

Question 38

Direct selling involves ______ active customer involvement and _______ active retailer involvement.

A)low, low
B)low, high
C)high, low
D)high, high

Question 39

Direct mail and catalogues involve relatively ______ active customer involvement and relatively _______ active retailer involvement.

A)low, low
B)low, high
C)high, low
D)high, high

Question 40

Ace Hardware,IGA,and Guardian Drugs are examples of:

A)Corporate chains
B)Cooperative marketing systems
C)Contractual systems
D)Regional shopping centres

Question 41

When Bulk Barn says: "We carry over 4,000 products-everything from soup to nuts." they are describing their:

A)retailing mix.
B)depth of product line.
C)breadth of product line.
D)level of service.

Question 42

The variety of different items a store carries is referred to as:

A)retailing mix.
B)depth of product line.
C)breadth of product line.
D)level of service.

Question 43

Breadth of product line refers to ______ a store carries.

A)the quality of merchandise
B)the variety of different items
C)a wide assortment of a few related items
D)the physical size, from large to small, of products

Question 44

As a franchisor,Radio Shack would assist a franchisee in each of the following EXCEPT:

A)selecting the store location.
B)setting up the store.
C)advertising.
D)bargaining with a manufacturer to obtain volume discounts.

Question 45

Franchising is attractive for the franchisee because:

A)it gives the franchisee complete control over the delivery and presentation of merchandise.
B)the license fees paid to the franchisor is the only fees the franchisee pays.
C)it relieves the franchisee from any company or product liabilities.
D)it offers the franchisee the opportunity to enter into a well-known, established business where managerial advice is provide

Question 46

Global Pigeon Supplies is one of the biggest retailers of racing pigeon supplies in the country.The storeowner describes the store as "the Sam's [Club] of pigeon supplies." Global Pigeon Supplies is an example of a(n):

A)limited-line store.
B)single-line store.
C)intertype outlet.
D)general merchandise store.

Question 47

At which level of service would the retail customer perform the greatest number of functions?

A)exclusive service
B)selective service
C)self-service
D)limited service

Question 48

A Woman's Place is a retail store,created and staffed by women,that offers products and services relating to maternity needs.In addition,for expectant mothers it offers advice,personal shopping services,help with hair and/or make-up problems,and free delivery.A Woman's Place is an example of a(n)_____ retailer.

A)exclusive service
B)minimal service
C)self-service
D)full-service

Question 49

A retail store carries a broad selection of small kitchen appliances.It has an informed staff and will even gift wrap your purchases free of charge.It does not,however,have a shop for repairs should your appliances need maintenance.This store offers:

A)exclusive service.
B)economies-of-scale service.
C)self-service.
D)limited service.

Question 50

Franchising is a type of:

A)administered system.
B)contractual system.
C)vertically integrated chain.
D)retail-sponsored cooperative.

Question 51

Stores that carry a considerable assortment (depth)of a related line of items are called:

A)limited-line stores.
B)general merchandise stores.
C)scrambled merchandise stores.
D)hypermarkets.

Question 52

Lighting-One is a national firm that allows its independent members,retailers of lighting fixtures,to concentrate their buying power and to plan collaborative promotional and pricing activities.Lighting-One could best be described as a(n):

A)administered system
B)contractual system
C)vertically integrated chain
D)franchised operation

Question 53

Home building supply outlets,discount stores,and catalogue showrooms provide what level of retail service?

A)full-service
B)limited service
C)self-service
D)customized service

Question 54

Urban Fare is a Canadian supermarket that caters to customers who want to cook at home.It offers free cooking classes,has frequent demonstrations by cookbook authors,and has employees who are knowledgeable about food preparation.Customers do make their own selections once they have decided what to prepare.Urban Fare offers its customers:

A)exclusive service.
B)economies-of-scale service.
C)self-service.
D)limited service.

Question 55

A Woman's Place is a retail store,created and staffed by women,that offers products and services relating to maternity needs.It carries in stock 3,000 items for expectant mothers in all dress sizes.This is an example of the ____ A Woman's Place carries.

A)depth of product line
B)breadth of product line
C)variety of product line
D)versatility of product line

Question 56

Dominion is a Canadian supermarket.Recently,it began its Baby Club program,which mails its members a $20 gift certificate when they purchase a certain dollar amount of infant products.By offering this and similar loyalty-type programs,Dominion is trying to:

A)move from limited service to full-service.
B)move from self-service to full-service.
C)become more self-service.
D)move from self-service to limited service.

Question 57

Being a full-service retailer can convey a competitive advantage over other non-full-service retailers because of:

A)the new customer experience management era
B)increasing use of the internet
C)cross-shopping by consumers
D)comparison shopping by consumers

Question 58

Global Pigeon Supplies is one of the biggest retailers of racing pigeon supplies in the country.The storeowner describes the store as "the Sam's [Club] of pigeon supplies." Which product breadth/depth assortment would best fit this store?

A)narrow/narrow
B)narrow/broad
C)narrow/deep
D)broad/deep

Question 59

As a national franchisor,McDonald's assists its franchisees in selecting the store location,setting up the store,advertising,and:

A)paying their bills promptly.
B)shopping for the best food values.
C)keeping premises clean.
D)training personnel.

Question 60

Organizations (franchisors)that decide to franchise (franchisors)have _____ expansion costs in opening new outlets accompanied by _____ control compared to owning their own retail outlets.

A)greater; greater
B)greater; reduced
C)reduced; greater
D)reduced; reduced

Question 61

A supercentre:

A)is an auto service center that sells and leases cars as well as repairs them.
B)is a type of specialty outlet.
C)is a variation of the hypermarket.
D)is a mall with more than 100 stores and several important anchor stores.

Question 62

In Europe,stores are based on the concept of one-stop shopping for consumers.These can best be described as:

A)megamarkets
B)hypermarkets
C)one-stop markets
D)euromarkets

Question 63

Which type of store gives shoppers the greatest variety of merchandise?

A)a specialty clothing store
B)a limited line gift store
C)a hypermarket
D)a clothing outlet

Question 64

Hypermarkets are:

A)large stores with more than 200,000 square feet offering a mix of food and general merchandise with prices below those of discount stores.
B)limited-service outlets focusing on general merchandise like that offered in department stores.
C)category killers that specialize in electronics.
D)shopping malls anchored by four or more department stores such as Sears or Nordstrom.

Question 65

Fresh-cut flowers that used to only be available from florists can now be purchased at neighbourhood supermarkets.This is an example of:

A)dysfunctional competition.
B)mixed-line merchandising.
C)multi-product marketing.
D)intertype competition.

Question 66

A type of retail outlet that focuses on one type of product at very competitive prices and often dominates the market is called a:

A)general merchandise store.
B)specialty outlet.
C)hypermarket.
D)category killer.

Question 67

Large department stores,such as Sears or Hudson's Bay,are best classified as:

A)Limited-line stores
B)General merchandise stores
C)Scrambled merchandise stores
D)Hypermarkets

Question 68

Specialty discount outlets focus on one type of product,such as business supplies (Office Depot)or electronics (Best Buy),at very competitive prices.They are referred to as _____ because they often dominate the market.

A)hypermarkets
B)category killers
C)regional dominators
D)megamarkets

Question 69

Many supermarkets have in-store restaurants where a customer can buy prepared meals to take home or eat there.Supermarkets and restaurants that provide these same kind of meals are engaged in _____ competition.

A)institutional
B)intermodal
C)intertype
D)functional

Question 70

A drug store that sells pharmaceuticals,beauty aids,camera equipment,non-perishable grocery items,and automobile motor oil is an example of a retailer using:

A)cross-docking.
B)full-service.
C)scrambled merchandising.
D)disintermediation.

Question 71

A supercentre:

A)is an auto service center that sells and leases cars as well as repairs them.
B)is a type of specialty outlet.
C)combines a typical merchandise store with a full-size grocery.
D)is a mall with more than 100 stores and several important anchor stores.

Question 72

Shoppers Drug Mart carries both pharmaceuticals and now,fresh produce.This is an example of a(n):

A)Intertype competition
B)Dual channel marketing
C)Scrambled merchandising
D)Disintermediation

Question 73

A diamond shop that only carries diamonds,could be best classified as a(n):

A)specialty outlet.
B)general merchandise store.
C)scrambled merchandise store.
D)intertype outlet.

Question 74

Competition between very dissimilar types of retail outlets that carry some of the same kind of merchandise is referred to as:

A)breadth of line.
B)intertype competition.
C)scrambled merchandising.
D)multi-service merchandising.

Question 75

Carrefour,which means "crossroad" in French,is the world's second-biggest retailer after Walmart.Carrefour is a chain of hypermarkets,which means it:

A)engages in no intertype competition.
B)is a disintermediator.
C)uses scrambled merchandising.
D)can also be called a category killer.

Question 76

The largest inventory of wedding dresses in Maritimes can be found at Low's Bridal and Formal in Halifax,Nova Scotia.Low's Bridal and Formals is an example of a(n):

A)specialty outlet.
B)general merchandise store.
C)scrambled merchandise store.
D)intertype outlet.

Question 77

Travelers are often in need of small convenience products and food items such as soft drinks.Airports,train and bus stations,and commuter stops do not have stores or stores that are open 24 hours each day; they are good locations for which type of non-store retailing?

A)catalogue and direct mail
B)online retailing
C)telemarketing
D)automatic vending

Question 78

Large stores (over 200,000 square feet)which offer a mix of 40 percent food products and 60 percent general merchandise are referred to as:

A)Discount wholesalers
B)Discount retailers
C)Hypermarkets
D)Supermarkets

Question 79

Retailing that occurs outside a retail outlet,such as through direct marketing,direct selling,and automatic vending is classified as:

A)Limited-line
B)Non-store
C)Scrambled merchandise
D)Hypermarket

Question 80

Which of the following is an example of non-store retailing?

A)hypermarkets
B)supercentres
C)shopping centres
D)vending machines