Deck 13: Pricing Concepts for Establishing Value

Question 1

A traditional grocery store continues to thrive in the competitive food market by:

A) offering a wide variety of products,including food and many nonfood items.
B) specializing in a particular product category.
C) increasing the spending on advertising.
D) providing large discounts on perishable products.
E) finding special products and services that are important to their customers.

Answer 1

E

Question 2

Which of the following general merchandise retailers concentrate on a limited number of complementary merchandise in relatively small stores?

A) Discount stores
B) Department stores
C) Specialty stores
D) Drugstores
E) Convenience stores

Answer 2

C

Question 3

The key factor that distinguishes retailers from other members of the supply chain is that it sells products to:

A) wholesalers.
B) manufacturers.
C) businesses.
D) consumers.
E) resellers.

Answer 3

D

Question 4

Blossoms is a small bookstore in Ottawa with a preference for fine books and classic literature.It sells books on philosophy,art,literature,travel,and architecture and has sales associate expertise to help customers.Blossoms is an example of a:

A) hypermarket.
B) specialty store.
C) discount store.
D) supermarket.
E) convenience store.

Question 5

Neil's Mart has several outlets across Ontario and sells a limited number of items at accessible locations in small stores with speedy checkouts.It also typically charges higher prices than most other types of food stores.Neil's Mart is an example of a:

A) specialty store.
B) supermarket.
C) hypermarket.
D) discount store.
E) convenience store.

Question 6

A set of business activities that add value to products and services sold to consumers for their personal use is called:

A) licensing.
B) manufacturing.
C) advertising.
D) retailing.
E) reselling.

Question 7

Virgo Inc.offers its products at relatively low prices to its customers.Virgo's strategy of procuring goods for sale from different manufacturers or retailers has resulted in an inconsistent assortment of goods at its store.Virgo is an example of a(n):

A) category killer.
B) drugstore.
C) hypermarket.
D) off-price retailer.
E) specialty store.

Question 8

Richway offers a wide variety of products,such as clothing,footwear,electronics,housewares,bedding,and beauty products,at prices lower than traditional retail outlets with limited service.Richway is an example of a:

A) convenience store.
B) supermarket.
C) warehouse club.
D) discount store.
E) specialty store.

Question 9

Shannon has limited time for shopping and prefers to buy tissues,grooming products,and other household needs from the same stores where she buys her groceries at low prices.Which of the following types of retailers is best suited for Shannon?

A) Off-price retailers
B) Services retailers
C) Discount stores
D) Specialty stores
E) Category specialists

Question 10

Ochre,a store situated in a low-income locality,offers its products at relatively low prices.The goods for sale at Ochre vary frequently due to its low-budget procurement strategy.Ochre is an example of a(n):

A) specialty store.
B) extreme value retailer.
C) warehouse club.
D) convenience store.
E) category specialist.

Question 11

Which of the following offers limited sales of nonfood items and general merchandise in a self-service format?

A) Big-box food retailers
B) Conventional supermarkets
C) Hypermarkets
D) Supercentres
E) Warehouse clubs

Question 12

Which of the following is positioned at the end of the supply chain?

A) Retailing
B) Manufacturing
C) Advertising
D) Licensing
E) Warehousing

Question 13

Which of the following types of stores receives 55 percent of its annual sales from selling gasoline?

A) Conventional supermarkets
B) Convenience stores
C) Hypermarkets
D) Supercentres
E) Warehouse clubs

Question 14

Which of the following types of stores tailor their retail strategy to very specific market segments by offering deep but narrow assortments and sales associate expertise?

A) Specialty
B) Discount
C) Department
D) Off-price
E) Convenience

Question 15

Red Den is a grocery retail chain that offers products such as dairy,frozen foods,meat,snacks,and a limited line of general merchandise.Red Den is an example of a:

A) convenience store.
B) specialty store.
C) hypermarket.
D) conventional supermarket.
E) drugstore.

Question 16

Firms involved in buying,often storing,and physically handling goods in large quantities and then reselling goods to business users are called:

A) manufacturers.
B) producers.
C) institutions.
D) retailers.
E) wholesalers.

Question 17

Which of the following adds value to products by selling them to consumers for their personal use?

A) Wholesaler
B) Manufacturer
C) Retailer
D) Reseller
E) Advertiser

Question 18

Which of the following offers a broad variety of merchandise,limited service,and low prices?

A) Specialty stores
B) Convenience stores
C) Category specialists
D) Drugstores
E) Discount stores

Question 19

A hypermarket is a type of:

A) big-box food retailer.
B) convenience store.
C) general merchandise retailer.
D) specialty store.
E) category specialist.

Question 20

Which of the following best determines the level of difficulty a manufacturer has in getting retailers to purchase its products?

A) The level of sophistication of the product
B) Customer expectations
C) The relative power of the manufacturer and retailer
D) Product line complexity
E) Advertising expenditure

Question 21

A category specialist is a type of retail store that offers a(n):

A) broad variety of merchandise at low prices.
B) deep variety and narrow assortment of merchandise and sales associate expertise.
C) narrow variety but a deep assortment of merchandise.
D) broad variety and deep assortment of merchandise and customer services.
E) extensive assortment in many categories.

Question 22

Retailers can distinguish themselves from their competitors by developing and marketing which brands?

A) Manufacturer's
B) Reseller's
C) Producer's
D) National
E) Store

Question 23

Retail stores that offer a broad variety and deep assortment of merchandise,provide some customer services,and are organized into separate departments to display their merchandise are referred to as:

A) discount stores.
B) department stores.
C) specialty stores.
D) category specialists.
E) convenience stores.

Question 24

The Small Store is a retail chain with small stores that offer a limited variety of products at lower prices.It targets customers in rural and lower-income urban areas.The Small Store is an example of a(n):

A) specialty store.
B) extreme value retailer.
C) hypermarket.
D) warehouse club.
E) supercentre.

Question 25

Which of the following general merchandise retailers have lost market share to other retailers that provide better value at low prices and high-end store chains in the recent years?

A) Department stores
B) Discount stores
C) Specialty stores
D) Drugstores
E) Category specialists

Question 26

Which of the following offers an inconsistent assortment of merchandise at relatively low prices?

A) Department stores
B) Discount stores
C) Convenience stores
D) Specialty stores
E) Off-price retailers

Question 27

Peach Inc.,a retailer of food products,promotes olive oil packaged with its own brand name.Customers find the olive oil sold at Peach cost-effective and of good quality and continue to make repeat purchases since it cannot be found at other retailers.Which of the following elements of the marketing mix is being used by the retailer in this scenario?

A) Process
B) People
C) Product
D) Price
E) Place

Question 28

Retail stores that concentrate on health and personal grooming merchandise and sell prescription drugs are known as:

A) convenience stores.
B) discount stores.
C) department stores.
D) drugstores.
E) category killers.

Question 29

Which of the following organize a broad variety of merchandise based on categories and,hence,resemble a collection of specialty shops?

A) Specialty stores
B) Drug stores
C) Traditional grocery stores
D) Convenience stores
E) Department stores

Question 30

Woody's is a retail chain that offers a broad variety of products,organized into separate departments for the convenience of customers.It also offers a wide variety in each category and employs sales associates to assist customers.Woody's is an example of a:

A) conventional supermarket.
B) hypermarket.
C) department store.
D) specialty store.
E) convenience store.

Question 31

Wellcome is a retail store that sells personal grooming items,cosmetics,and medicines.It also sells some snacks.Wellcome is an example of a:

A) department store.
B) drugstore.
C) discount store.
D) convenience store.
E) hypermarket.

Question 32

Which of the following offers an extensive assortment in a particular segment overwhelmingly that other retailers have difficulty competing?

A) Discount stores
B) Specialty stores
C) Category specialists
D) Drugstores
E) Convenience stores

Question 33

Toys For Us is a retail chain that specializes in children's toys.It offers an extensive assortment of new toys and old favourites.It also carries exclusive toys that cannot be found in other toy stores.Toys For Us is an example of a:

A) hypermarket.
B) category killer.
C) drugstore.
D) discount store.
E) department store.

Question 34

Style Icon,a clothes retailer,adds a new summer collection to its stores,keeping in mind the approaching summer season.As a keen market observer,Style Icon understands fashion trends and maintains inventory appropriately.Which of the four Ps is Style Icon using here to create value for consumers?

A) Promotion
B) Product
C) Price
D) People
E) Process

Question 35

Crimson Corp.is a retail chain that sells a variety of products such as food,clothing,furniture,appliances,and other accessories.Since the store buys merchandise directly from vendors at very low prices,it is able to offer products at lower prices than traditional discount retailers.Crimson is an example of a(n):

A) department store.
B) specialty store.
C) discount store.
D) off-price retailer.
E) convenience store.

Question 36

Leo Corp.,a hardware retailer,sells products at low prices that appeal to the working class.Leo has flyer inserts that advertise current sales and special pricing delivered with a popular newspaper.Which of the following elements of the marketing mix is Leo using to create its retail strategy?

A) Process
B) Product
C) People
D) Price
E) Place

Question 37

Retailers provide value to both manufacturers and customers by providing:

A) reciprocity.
B) discounts.
C) advertising consultancy.
D) coupons.
E) storage.

Question 38

A general merchandise discount store located in a lower-income urban or rural area is known as a(n):

A) convenience store.
B) category specialist.
C) department store.
D) specialty store.
E) extreme value retailer.

Question 39

Which of the following offers a narrow variety but a deep assortment of merchandise?

A) Discount stores
B) Department stores
C) Convenience stores
D) Category specialists
E) Drugstores

Question 40

Draper is a clothing retail that offers a deep assortment but exclusively in menswear.It uses a self-service approach.Draper is an example of a:

A) discount store.
B) department store.
C) category specialist.
D) convenience store.
E) supermarket.

Question 41

A key ingredient of success for retailers is:

A) preference.
B) convenience.
C) personalization.
D) expenditure.
E) store branding.

Question 42

Brian is concerned about the security of online credit card transactions and always prefers to pay by cash.Which of the following retail channels is best suited for customers like Brian?

A) Kiosks
B) Stores
C) Catalogues
D) The Internet
E) Mail order

Question 43

The benefit offered by bricks-and-mortar retailers is:

A) broader selection of items.
B) detailed information of products.
C) access to wish lists and gift registries.
D) payment through cash.
E) access to loyalty program information.

Question 44

A shoe manufacturer producing sports shoes decides to sell its products in department stores located near sports universities and stadiums.The element of the marketing mix being used to create the retail strategy in this example is:

A) price.
B) product.
C) place.
D) promotion.
E) people.

Question 45

Retailers that provide convenient store layouts that make shopping faster and easier for customers are concentrating on the retail mix component of:

A) product.
B) place.
C) presentation.
D) price.
E) process.

Question 46

Buy Easy is an electronics retailer that sells branded electronic goods.To increase sales,one laptop manufacturer enters an agreement to bear costs of advertising its products prominently at Buy Easy checkout counters.The marketing mix element that is being used to create Buy Easy's retail strategy is:

A) process.
B) promotion.
C) place.
D) price.
E) people.

Question 47

Which of the following is a benefit offered to customers by the store channel?

A) Access to out-of-stock items
B) Expanded market presence
C) Instant gratification
D) Broader selection
E) Access to gift registries

Question 48

Sandra,a stay-at-home mom,is busy all day looking after her two toddlers.The only opportunity she gets to interact with adults is during her visits to the supermarket,which are a change from her daily routine.Which of the following retail channels would Sandra prefer to use for her shopping?

A) Kiosks
B) Catalogues
C) Stores
D) The Internet
E) Trade literature

Question 49

A prominent pizza chain opens its outlets in the best locations in the country to gain an advantage over its competitors and new brands entering the market.Which of the following elements of the marketing mix is being used by the firm to create its retail strategy?

A) Place
B) Product
C) Promotion
D) Price
E) Process

Question 50

Access to wish lists,gift registries,and loyalty program information is a benefit offered by the:

A) catalogue channel.
B) Internet channel.
C) kiosk channel.
D) mail order channel.
E) store channel.

Question 51

An adventure sports products retailer tries a new sales strategy by installing a rock climbing facility within the retail outlet,giving customers an opportunity to try out ropes and grips before buying them.Which of the following elements of the marketing mix is being used by the retailer in this scenario?

A) Price
B) Place
C) Process
D) People
E) Promotion

Question 52

A kiosk offers:

A) cash payments.
B) instant gratification.
C) risk reduction.
D) access to loyalty program information.
E) personalized offerings and personalized customer service.

Question 53

Toy Castle is a retail chain that sells a wide range of toys.During Christmas,it sells a special,limited edition collector's box,containing rare toys at a marginally higher value.Sales increase for this item as customers believe that they are really getting value for their money.Which of the following elements of the marketing mix is Toy Castle using to create its retail strategy?

A) Place
B) Promotion
C) Price
D) People
E) Process

Question 54

A cosmetics manufacturer helps its retailers to co-ordinate promotional activities for its products and has formed an agreement with retailers to share the advertising production and media costs.This agreement between manufacturers and retailers is known as:

A) share of wallet.
B) covert advertising.
C) co-operative advertising.
D) licensing.
E) bartering.

Question 55

An electronics retail chain uses its customer information to select its best customers and targets its promotions at these customers.The retailer also provides personal service to these customers to increase the percentage of their purchases.The retailer is using this strategy on particular customers to increase the:

A) spending on co-operative advertising.
B) merchandise assortment component of retail mix.
C) share of wallet.
D) direct investment.
E) dividend for shareholders.

Question 56

The benefit of touching and feeling merchandise when examining products is provided by which channel?

A) Kiosk
B) Store
C) Catalogue
D) Mail order
E) Internet

Question 57

Which of the following refers to the percentage of a customer's purchases made from a particular retailer?

A) Revenue per user
B) Share of wallet
C) Co-operative advertising
D) Gross sales
E) Acquisition costs

Question 58

Risk reduction and social interaction are benefits associated with the:

A) kiosk channel.
B) store channel.
C) catalogue channel.
D) mail order channel.
E) Internet channel.

Question 59

An agreement between a manufacturer and retailer in which the manufacturer agrees to defray some advertising costs is called:

A) bartering.
B) licensing.
C) co-operative advertising.
D) share of wallet.
E) covert advertising.

Question 60

Which of the following is a benefit offered by kiosks?

A) Entertainment and social interaction
B) The ability to personalize the information for each customer in an economical way
C) The ability to touch and feel the merchandise
D) Expanded market presence
E) Access to items online that are out of stock in stores

Question 61

Which of the following retail channels enables firms with strong brands but limited distribution to expand their market presence?

A) Kiosks
B) Catalogues
C) Trade literature
D) Traditional stores
E) The Internet

Question 62

George wants to buy a new music player and looks at the various options available to him before deciding on a particular model.He also wants to check if that model is available before visiting the store.Which of the following retail channels is best suited for this purpose?

A) Kiosks
B) Stores
C) Catalogues
D) Trade literature
E) The Internet

Question 63

Which of the following is a type of a big-box food retailer?

A) Specialty store
B) Off-price retailer
C) Category specialist
D) Drugstore
E) Hypermarket

Question 64

Which of the following retail channels both helps retailers save a sale if an item is out of stock and allows retailers to overcome resource constraints by freeing up sales associates?

A) Stores
B) The Internet
C) Kiosks
D) Catalogues
E) Mail order

Question 65

A smartphone capable of accessing product information and even comparing prices at other retailers via the Internet can be considered a:

A) catalogue.
B) bricks-and-mortar store.
C) mobile kiosk.
D) mail order brochure.
E) traditional physical store.

Question 66

Apparel retailers using the electronic channel can overcome the limitations associated with trying on clothing by:

A) displaying large images of products.
B) using virtual models.
C) providing discounts on products.
D) providing detailed information for items.
E) offering gift coupons on purchases.

Question 67

The most significant potential benefit of the Internet channel is:

A) the ability to touch and feel the products.
B) the easy access to product information anytime and for a long period of time.
C) the ability to reduce the perceived risks of buyers.
D) the ability to personalize information for each customer economically.
E) allowing customers to buy products with cash.

Question 68

Which of the following channels enables retailers to offer a deeper assortment of merchandise to satisfy consumer demand for less popular styles,colours,or sizes and still keep their overall inventory costs low?

A) Brochure
B) Catalogue
C) The Internet
D) Store
E) Hypermarket

Question 69

Which of the following retail channels has the potential to facilitate market expansion for traditional retailers and offer personalized information about products and services economically?

A) Kiosks
B) Stores
C) Catalogues
D) Mail order
E) The Internet

Question 70

The challenge faced by retailers while selling products through the Internet is the inability to provide:

A) detailed information of products.
B) a broader selection of products.
C) touch-and-feel information to customers.
D) step-by-step solutions to customer problems.
E) personalized customer service.

Question 71

Which of the following products has high return rates and is difficult to sell through the electronic channel on account of the lack of touch-and-feel information?

A) Books
B) Apparel
C) Groceries
D) Gift items
E) Electronic items

Question 72

Which of the following retail channels enables firms to provide a personalized offering and personalized customer service to consumers?

A) Kiosks
B) Stores
C) The Internet
D) Catalogue
E) Hypermarket

Question 73

Which of the following is a constraint faced by store-based retailers?

A) Inconsistent execution
B) Risk reduction
C) Instant gratification
D) Personal service
E) Lack of updated information

Question 74

Which of the following helps firms to provide as much information as each customer wants and considerably reduces cost of adding information?

A) Internet channels
B) Store-based retailers
C) Merchandise manufacturers
D) Wholesalers
E) Catalogues

Question 75

A benefit of the catalogue channel is:

A) access to loyalty program information.
B) the opportunity to touch and feel while examining the product.
C) easy access to product information anytime and for a long period of time.
D) access to information regarding customers' shopping behaviour.
E) entertainment and social interaction.

Question 76

Joyce is not comfortable going online but likes to get detailed information about a product before buying it.She also prefers to order from home rather than going out to a store.Which of the following channels would Joyce find most suitable for obtaining product information?

A) Kiosk
B) Store
C) Booth
D) Catalogue
E) The Internet

Question 77

Which of the following retail channels offers sellers an opportunity to collect information about the shopping behaviour of customers?

A) Kiosks
B) Online retailing
C) Catalogues
D) Mail order
E) Brochures

Question 78

Which of the following retail channels allows retailers to collect information about consumers' shopping behaviour that can be used to improve the overall shopping experience?

A) Stores
B) The Internet
C) Kiosks
D) Catalogues
E) Mail order

Question 79

Which of the following provide a consistent experience for customers that helps overcome the difficulty of not being able to touch and feel merchandise prior to purchase online?

A) Presentation
B) Kiosks
C) Catalogues
D) Promotion
E) Brands

Question 80

Which of the following provides easy access to information about products and their use to customers in the form of editorial content?

A) Catalogue channel
B) Kiosk channel
C) Store channel
D) Internet channel
E) Electronic channel