Question 1

"Pop-up" stores let retailers promote brands to seasonal shoppers for a limited time.

Accepted Answer

Pop-up stores are temporary retail spaces that allow retailers to promote their brands and products to seasonal shoppers or in specific locations for a limited time.

Question 2

A store selling expensive artwork and luxury goods typically falls into the ________ group with respect to margins and volume.

Accepted Answer

A store selling expensive artwork and luxury goods typically has a high markup due to the exclusivity and perceived value of the products. However, these products are not sold in high volumes, as the target market is limited. Thus, the best choice is high-markup, low-volume, which is represented by option E.

Question 3

HCN is a wholesaler that supplies consumer good products to a number of retailers. HCN has witnessed the worrying trend of its competitors losing out on suppliers who approach retailers directly. How can HCN strengthen its relationship with manufacturers and prevent this?

Accepted Answer

The answer of HCN is a wholesaler that supplies consumer...

Question 4

Most retailers will put low prices on some items in order to increase traffic to the store. These low-priced products are known as ________.

Accepted Answer

These low-priced products are known as loss leaders, which are designed to attract customers into the store in the hopes that they will also purchase other, higher-priced items.

Question 5

Growth in the retail market is centered firmly in the middle market, leaving luxury retailers and discounting specialists struggling.

Accepted Answer

Growth in the retail market is not solely centered in the middle market; both luxury retailers and discounting specialists have seen growth, especially as consumer preferences and economic conditions change. Luxury retailers benefit from high-income consumers seeking premium products, while discounting specialists attract price-sensitive shoppers looking for deals.

Question 6

In the corporate headquarters of a supermarket chain, ________ are responsible for developing brand assortments and listening to salespersons' presentations.

Accepted Answer

The answer of In the corporate headquarters of a supermarket...

Question 7

Mass merchandisers and discount stores typically fall into the ________ group with respect to margins and volume.

Accepted Answer

Mass merchandisers and discount stores typically operate on high volume sales with low profit margins. This allows them to offer lower prices to customers and still generate enough revenue to be profitable.

Question 8

Which of the following is a postpurchase service offered by retailers?

Accepted Answer

Delivery to the customer's doorstep is a postpurchase service offered by retailers, where they provide the service of delivering the purchased product to the customer's doorstep.

Question 9

Department stores only face competition from other department stores as other retailing forms are not a threat to their sales and profitability.

Accepted Answer

This statement is false. Department stores face competition not only from other department stores but also from other types of retailers such as specialty stores, discount stores, online retailers, and even direct-to-consumer brands. These other retailing forms can offer similar products at lower prices or with more convenience, which can draw customers away from department stores.

Question 10

Which of the following is a prepurchase service offered by retailers?

Accepted Answer

The answer of Which of the following is a prepurchase...

Question 11

American businessman King Gillette pioneered the sales model in which razor handles were given away for free or sold at a loss, but sales of disposable razor blades were very profitable. This is known as the ________ model.

Accepted Answer

The described sales model where razor handles were given away for free or sold at a loss, but sales of disposable razor blades were profitable is known as the loss leading model.

Question 12

Consumers now receive sales offers through direct-mail letters and catalogs, television, cell phones, and the Internet. The nonstore-based retailers are taking business away from store-based retailers.

Accepted Answer

This statement is true. Nowadays, consumers receive sales offers through multiple channels, including nonstore-based retailers such as online stores or mobile apps, which are gaining more and more popularity and taking business away from traditional store-based retailers.

Question 13

Firms are increasingly recognizing the importance of influencing consumers at the point of purchase.

Accepted Answer

Firms have realized that consumer behavior at the point of purchase plays a critical role in their decision-making process. As a result, they are putting more effort into influencing consumer behavior in-store and at the point of sale.

Question 14

In supermarkets and other retail outlets, RFID is used to ________.

Accepted Answer

RFID is used to monitor inventory and track goods. By using RFID, retailers can quickly and accurately know what products they have in stock, where they are located, and when they need to be restocked. This helps retailers reduce stockouts, improve customer satisfaction, and increase sales.

Question 15

Which of the following is true for direct product profitability?

Accepted Answer

Direct Product Profitability (DPP) considers not just the gross margin but also accounts for the costs associated with selling the product, such as handling, storage, and distribution, which may not directly correlate with the gross margin.

Question 16

As discount retailers improve their quality and image, consumers have been willing to trade down.

Accepted Answer

The statement suggests that consumers are willing to shop at discount retailers even if they have improved their quality and image.

Question 17

List some recent trends in retailing.

Accepted Answer

The answer of List some recent trends in retailing....

Question 18

Electronic shelf labeling allows retailers to check inventory levels instantaneously.

Accepted Answer

Electronic shelf labeling primarily allows for the automatic updating of product prices and information on shelves, but it does not directly enable the instantaneous checking of inventory levels.

Question 19

Which of the following is an example of a category killer?

Accepted Answer

PETCO is an example of a category killer because it specializes in pet-related products and services, and is able to dominate its particular market niche.

Question 20

Supercenters retail grocery items as well as a huge selection of nonfood merchandise.

Accepted Answer

Supercenters, such as Walmart, Target, and Meijer, offer a wide range of food and grocery items as well as nonfood merchandise, including clothing, electronics, sporting goods, and more.

Quiz 18: Managing Retailing, Wholesaling, and Logistics