Deck 11: Retailing

Question 1

While Natalie was at the mall,she saw a kiosk that was selling cell phone covers.Although she had no intention of buying a new cell phone cover,the kiosk caught her eye and she ended-up buying a leopard-print cover.Which of the following describes Natalie's behavior?

A)Natalie did not engage in a retail transaction.
B)Natalie's cell phone cover was an impulse purchase.
C)Natalie was the victim of distracted shopping.
D)Because she bought the cell phone cover,Natalie must have intended to purchase one all along.
E)Natalie's cell phone cover was a strategic purchasE.

Answer 1

B

Question 2

Which statement regarding the physical presence of retail stores is true?

A)Customers rarely integrate their digital and in-store shopping experiences.
B)Unlike in the past,most retail transactions now occur over the Internet.
C)The number of physical stores is declining because people prefer to shop online.
D)There are no advantages to shopping in a store versus shopping for the same product online.
E)Most retail transactions occur in physical stores.

Answer 2

E

Question 3

Which of the following is not one of the dimensions marketers commonly use to classify retailers?

A)size of establishment
B)breadth and depth of assortment
C)level of service
D)ownership/organization
E)merchandise pricing

Answer 3

A

Question 4

Three factors differentiate retail marketing from marketing practiced in other types of businesses: the average dollar amount of a single sales transaction,impulse purchasing,and

A)the method of marketing used.
B)the presence of physical stores.
C)the type of product sold.
D)the reliance on personal selling.
E)the selling of services.

Question 5

A retailer that uses strategies to enhance long-term mutually beneficial relationships with its customers is considering the ______ of each customer.

A)marketing value
B)competitive value
C)lifetime value
D)advertising cost
E)financial cost

Question 6

How are stores like Best Buy or JCPenney classified?

A)They are limited service stores.
B)They are do-it-yourself retailers.
C)They are full service stores.
D)They are independent retailers.
E)They are self-service stores.

Question 7

On the whole,which of the following accurately depicts the vast majority of retailers?

A)The vast majority of retailers are "mom and pop" shops that employ a small number of people.
B)The vast majority of retailers are chain organizations that have stores in at least three locations.
C)The vast majority of retailers employ 50 or more people and have on average 10 locations.
D)The vast majority of retailers are very large organizations,like Walmart,that have many outlets.
E)The vast majority of retailers are now found on the Internet.

Question 8

Bill's appliance store offers free delivery and set-up of the appliances he sells to his customers and services the appliances after the sale.In doing so,Bill's appliance store is performing which channel function?

A)communication functions
B)breaking bulk
C)completing transactions
D)facilitating functions
E)providing assortment

Question 9

In a(n)______ franchise arrangement,the franchisee gains preferred exclusive access to the products manufactured by the franchisor.

A)business format
B)exclusive
C)product distribution
D)standard
E)supply-oriented

Question 10

Juanita's Place is a dress shop that caters to dresses for special occasions such as school proms,holiday parties,and weddings.Juanita has a staff of trained employees that help in the selection of dresses regarding style,fit,and appropriateness for the occasion.The store also offers alteration services and free delivery.Juanita's Place is an example of

A)a full-service store.
B)a self-service store.
C)a franchise.
D)a limited service store.
E)a department storE.

Question 11

Which of the following is not a channel function of retailers?

A)completing transactions with end-consumers
B)facilitating functions that enhance the buying of goods
C)providing an assortment of goods
D)creating a competitive landscape
E)communicating with consumers

Question 12

The best-known framework for explaining changes in retail institutions in terms of how retail outlets enter and move through the market is referred to as the

A)retail market mix.
B)retail life cycle.
C)product life cycle.
D)wheel of retailing.
E)retail adoption matrix.

Question 13

Which of the following can be said about retailing as an economic activity?

A)Historically,retailing accounted for a large part of the U.S.economy,but recent figures indicate that retailing's impact has waned.
B)Retailing's biggest impact can be seen in the amount of spending on clothing and food service items.
C)Retailing accounts for more than half of the United States' gross domestic product.
D)There are more retailers than ever,but retail spending has steadily been declining over the past 10 years.
E)Retailing's effect on the economy has lessened due to the increase in online shopping.

Question 14

All of the following situations involve retailing except

A)dining out at the new restaurant in town.
B)booking a European vacation from a travel agent.
C)transporting newly manufactured cars to a dealership.
D)buying a set of golf clubs from a sporting goods store.
E)buying paper products from a wholesale club like Costco.

Question 15

All of the following have contributed to the changes in modern retailing except

A)the conversion of "mom and pop" shops to chain organizations.
B)industry consolidation and flattening sales growth.
C)the development of business-to-consumer commerce.
D)the rise of Internet shopping outlets.
E)the growth in global retail opportunities.

Question 16

The majority of retail operations are

A)corporate chains.
B)conglomerates.
C)consumer cooperatives.
D)retailer cooperatives.
E)independent retailers.

Question 17

An organization purchases products with the intention of selling them to the ultimate consumer for their personal,family,or household use.This organization is a

A)wholesaler.
B)supplier.
C)producer.
D)distributor.
E)retailer.

Question 18

A group of independent retailers that band together to set up a jointly owned,central wholesale operation that also conducts joint merchandising and promotion is referred to as a

A)franchise.
B)retailer cooperative.
C)voluntary chain.
D)corporate chain.
E)consumer cooperativE.

Question 19

What is a corporate chain?

A)an independent retail operation that employs 50 or more people
B)businesses in which a supplier grants a dealer the right to sell products for a fee
C)a group of independent retailers that band together to set up a jointly owned,central wholesale operation
D)two or more retail outlets that are commonly owned and controlled
E)wholesale sponsored groups of independent retailers that band together

Question 20

A retailer wanting to incorporate self-service into its stores may choose to

A)publish its advertising circular earlier.
B)hire a professional sales staff.
C)incorporate an in-store kiosk.
D)have more product available.
E)have more staffed check-out lanes.

Question 21

In order to maintain high inventory turnover,discount stores choose

A)self-service over full-service.
B)breadth over depth.
C)depth over breadth.
D)goods over services.
E)full-service over self-servicE.

Question 22

A local craft brewer offers many varieties of beer.You can find robust stout beer,pale ales,and beer flavored with everything from coffee to citrus fruit.This is an example of the brewer's

A)depth of assortment.
B)length of assortment.
C)breadth of assortment.
D)width of assortment.
E)variety of assortment.

Question 23

What is a "bricks-and-clicks" strategy?

A)a strategy where online retailers offer better discounts than what is available at a physical store
B)a strategy where retailers with physical stores offer better discounts than what is available online
C)a strategy that allows shoppers to purchase the same merchandise available in a store at home by shopping on a retailer's website
D)a strategy where physical stores will match the price of an online retailer
E)a stratgey where items purchased online can be picked up at a physical store

Question 24

How is the distribution of retailers along a price continuum shown?

A)The distribution is shown as a downward sloping curve.
B)The distribution is shown as a straight line.
C)The distribution is shown with many peaks and valleys.
D)The distribution is shown as an upward sloping curve.
E)The distribution is shown as following a bell curvE.

Question 25

Which of the following is not a reason why growth in the supermarket sector has been consistently declining over the last decade?

A)the increase in out-of-home eating
B)the increase in competition from online retailers.
C)the decrease in population
D)the increase in competition from warehouse clubs
E)the general rise in food costs

Question 26

_______ retailers primarily offer mechanical or human efforts,rather than merchandise to consumers.

A)Services
B)Private
C)Specialty
D)Personal
E)Benefit

Question 27

The number of distinct goods or service product lines that a retailer carries is referred to as

A)width of assortment.
B)breadth of assortment.
C)depth of assortment.
D)the retailing mix.
E)the manufacturing mix.

Question 28

A retailer that offers ultra-low prices,but requires customers to pay an annual fee for the privilege of shopping in the store is referred to as

A)a category killer.
B)a convenience store.
C)an off-price retailer.
D)an extreme-value retailer.
E)a warehouse club.

Question 29

Carla owns a candy store called "Carla's confections." She just finalized an arrangement where she will operate one of her stores next to the floral department of a local grocery store.She will pay rent for the space and will be responsible for all aspects of her business.What is this type of arrangement called?

A)an isolated store
B)a leased department
C)a retail cooperative
D)omni-channel retailing
E)scrambled merchandising

Question 30

_______ stores are small,self-service retailers that aim to capture sales from people who are willing to pay higher prices in exchange for the ease of purchase these retailers offer.

A)Convenience stores
B)Factory outlets
C)Extreme-value retailers
D)Specialty stores
E)Supercenters

Question 31

Online retailing is also known as

A)web-retailing.
B)cyber-retailing.
C)e-retailing.
D)secondary retailing.
E)omni-retailing.

Question 32

Retail outlets such as Best Buy or Home Depot that are able to gain high market share within their chosen category are sometimes referred to as

A)category killers.
B)specialty stores.
C)value outlets.
D)department stores.
E)high-margin retailers.

Question 33

Which of the following is a type of nonstore retailing?

A)warehouse clubs
B)specialty stores
C)online retailing
D)services retailing
E)factory outlets

Question 34

Nordstrom and Macy's are both types of

A)specialty discount stores.
B)off-price retailers.
C)full-line discount stores.
D)department stores.
E)fast fashion stores.

Question 35

"Fast fashion" is a term unique to which type of retailer?

A)specialty stores
B)category killers
C)department stores
D)discount stores
E)off-price retailers

Question 36

A retailer that operates a brick-and-mortar store but also sells the same merchandise on its website is practicing

A)secondary retailing.
B)direct selling.
C)omni-channel retailing.
D)cross-merchandising.
E)micro-merchandising.

Question 37

A type of purchasing behavior in which off-price retail stores negotiate especially low prices for certain categories of merchandise,such as end-of-season goods and closeouts is called

A)rock-bottom buying.
B)negotiated buying.
C)strategic buying.
D)opportunistic buying.
E)seasonal buying.

Question 38

A retailer that adds goods and services that may be unrelated to each other and to the firm's original business is engaged in

A)deceptive merchandising.
B)full-service merchandising.
C)voluntary merchandising.
D)scrambled merchandising.

Question 39

Which of the following is true regarding nonstore retailing?

A)Online shopping has failed to expand due to poor performance of retailing websites.
B)Online shopping does not provide the sensory elements that can be found with in-store shopping.
C)Online shopping provides the same entertainment experience that physical stores offer.
D)There is little difference between shopping in stores and shopping online.
E)Any retailer that offers goods and services can provide the same offering onlinE.

Question 40

The two types of extreme value retailers are

A)off-price retailers and discount stores.
B)factory outlets and closeout chains.
C)dollar discount stores and closeout chains.
D)penny retailers and off-price retailers.
E)dollar discount stores and convenience stores.

Question 41

Because it involves high costs and commits company resources for a period of time,which of the following does your text cite as being an important factor in opening a retail store?

A)number of competitors
B)store location
C)proximity to the workforce
D)product availability
E)promotional options

Question 42

Sensory-based stimuli within a retailer's environment-the sights,sounds,smells,and other attributes-that project an image and draw customers to the store are referred to as

A)imprints.
B)atmospherics.
C)assessments.
D)aspects.
E)impressions.

Question 43

A(n)______ is a type of retail location where two or more stores are situated together or in close proximity and the overall mix of stores is not the result of prior long-range planning.

A)unplanned shopping center
B)unplanned business district
C)isolated store combination
D)variety shopping center
E)main street center

Question 44

When the economy takes a downward shift,such as during a recession,what factor drives retailers to reduce costs by improving operational efficiency?

A)consumers' desire for greater value
B)consumers' desire for more product choices
C)a desire to dominate the marketplace
D)a desire to import more goods
E)a desire to streamline the marketing mix

Question 45

A freestanding retail outlet located on either a highway or major road is referred to as a(n)

A)isolated store.
B)one-stop shop.
C)freestanding store.
D)planned store.
E)solitary storE.

Question 46

A ______ shopping center is an upscale retail operation that also offers fine dining and entertainment options and is often located within affluent neighborhoods.

A)lifestyle
B)luxury
C)exclusive
D)premium
E)high-end

Question 47

Grouping many items together in a printed piece or an online store is referred to as

A)fast fashion.
B)scrambled merchandising.
C)mass merchandising.
D)catalog marketing.
E)category management.

Question 48

Reilly's law of retail gravitation calculates a ______ in retail trade between two communities.

A)travel point
B)break point
C)retail point
D)gravitation point
E)population point

Question 49

Large regional shopping malls and neighborhood strip malls are examples of

A)planned shopping centers.
B)unplanned shopping centers.
C)planned business districts.
D)isolated shopping centers.
E)unplanned business districts.

Question 50

Kendra works as an independent representative for a jewelry company.She holds "parties" in peoples' homes where she can display and talk about the jewelry she sells.What form of retailing does this represent?

A)direct selling
B)convenience retailing
C)shop-at-home retailing
D)a retailing cooperative
E)opportunistic buying

Question 51

The direct selling business model in which a direct seller makes money by buying products from a parent organization and selling them directly to customers is called

A)one-to-one marketing.
B)single-level marketing.
C)multi-level marketing.
D)network marketing.
E)person-to-person marketing.

Question 52

What does Reilly's law of retail gravitation state about the correlation between the size of a trading area and population density?

A)the size of a trading area decreases as population density decreases
B)the population density increases when the size of a trading area increases
C)the size of a trading area increases as population density decreases
D)the size of a trading area decreases as population density increases
E)the population density decreases when the size of a trading area decreases

Question 53

The most impersonal form of retailing is

A)direct selling.
B)online retailing.
C)automated vending.
D)shop-at-home television networks.
E)catalog marketing.

Question 54

According to your text,consumer interest in lower prices and ______ are the two things driving strategic issues in 21-century retailing.

A)brand loyalty
B)global retailing
C)a focus on product quality
D)intensified competition
E)a focus on sustainability

Question 55

______ refers to how consumers perceive a retailer.

A)Brand recognition
B)Store image
C)Consumer confidence
D)Atmospherics
E)Operational efficiency

Question 56

All of the following are factors that contribute to shaping a retailer's image EXCEPT

A)the store's brand communications.
B)the characteristics of the store or website.
C)the quality of the store's customer service.
D)the store's merchandise attributes.
E)how many competitors the store has.

Question 57

Reilly's law of retail gravitation describes

A)the profit potential of various retail locations.
B)the profit potential for two competing stores located in close proximity.
C)how consumers decide where to buy the goods and services they consume.
D)how retailers choose the best products to sell for a given location.
E)how many stores,on average,a consumer will visit in one shopping trip.

Question 58

Which of the following is a unique feature of a planned shopping center?

A)It has dedicated parking.
B)It is not centrally owned or managed.
C)It is not the result of long-range planning.
D)It does not place retailers adjacent to one another.
E)It is located on either a highway or a major road.

Question 59

There are many factors to take into consideration when choosing a site to open a retail location.Which of the following would be least important?

A)parking availability
B)population characteristics
C)traffic congestion
D)number of employees needed
E)distance to housing communities

Question 60

Reilly's law of ______ is one of the oldest and most commonly used trading area models.

A)site selection
B)retail trading
C)retail geographics
D)retail gravitation
E)store selection

Question 61

According to the wheel of retailing,new retailers entering the market typically price their products _____.

Question 62

_____ _____ are two or more retail outlets that are commonly owned and controlled.

Question 63

Retailers are the _____ stage in the distribution channel.

Question 64

Brad notices that customers at his store prefer certain types of snack foods over others.In response to his customers' preferences,he allocates more shelf space to those types of snacks,and less shelf space to the snack items that are purchased less frequently.In this scenario,Brad is utilizing which of the following techniques?

A)demand-driven merchandising
B)supply-driven merchandising
C)scrambled merchandising
D)cross-merchandising
E)micro-merchandising

Question 65

Karen has a boutique where she sells women's fashion clothing.She recently added a line of jewelry and purses to her store offerings in the hope that customers will spend more overall.What technique is Karen utilizing?

A)cross-merchandising
B)scrambled merchandising
C)specialty merchandising
D)micro-merchandising
E)complementary merchandising

Question 66

In retailing,______ points refer to the instances when consumers interact directly with the brand on their way to purchase.

A)interaction
B)purchase
C)contact
D)customer
E)touch

Question 67

Although she didn't intend to,Caitlyn bought a copy of People magazine when she was in the checkout lane at the grocery store.For Caitlyn,this is a(n)______ purchase.

Question 68

David buys ski equipment from various manufacturers and resells the products to consumers that come into his store.David is a ______.

Question 69

The activities involved in acquiring particular goods and services and making them available at the places,times,prices,and quantities that enable a retailer to achieve its goals is referred to as

A)retailing.
B)the wheel of retailing.
C)journey mapping.
D)omni-channel retailing.
E)merchandising.

Question 70

The best-known framework for explaining changes in retail institutions is the _____ _____ _____.

Question 71

What is a retailer's goal in planning a store's layout with regard to traffic flows?

A)eliminate gridiron traffic flows
B)optimize shopper convenience
C)maximize shelf space
D)limit browsing behavior
E)eliminate free-flowing patterns

Question 72

Category management is a merchandising technique that focuses on the performance of

A)competing brands.
B)a product category.
C)store atmospherics.
D)individual brands.
E)a store's layout.

Question 73

Offering credit to customers and accepting returned merchandise are both ______ functions of retailers.

Question 74

In most instances,the products that ______-service retailers offer are of a higher-perceived quality or possess added or more complex features than those in the standard offering in its class.

Question 75

When it comes to level of service,it typically makes most sense for a retailers that sell a large percentage of low-margin products to use ______ service.

Question 76

Keenan owns a retail store.He often receives payments from some of his manufacturers to ensure their products are placed in the best location in the store or on the store shelves.These payments are referred to as

A)shelf allowances.
B)placement allowances.
C)product allowances.
D)slotting allowances.
E)merchandise allowances.

Question 77

When retailers use the information gathered about their customers' behavior in order to predict consumer trends,forecast demand,or identify consumer interest in products,they do so by applying

A)journey mapping.
B)category management.
C)merchandising techniques.
D)the marketing mix.
E)big data analytics.

Question 78

Journey mapping is a technique that helps companies identify

A)points in the journey of a product's delivery that take too long or are unnecessary.
B)customers' movements on social media.
C)points in the manufacturing process where delays are occurring.
D)parts of the promotional process that most resonate with consumers.
E)points in their customers' journey where the buying process breaks down.

Question 79

_______ encompasses all of the business activities involved in the sales of goods and services to the ultimate consumer for their personal,family,or household use.

Question 80

Slotting allowances are used to

A)encourage retailers to pay invoices on time.
B)entice customers to buy products in bulk quantities.
C)encourage more frequent delivery of products.
D)encourage manufacturers to minimize packaging.
E)ensure products are preferentially displayed by the retailer.