Question 1

Lucas is planning a distribution strategy for his business. He is considering using direct marketing, direct selling, and automatic vending, which are all examples of ____ retailing.

Accepted Answer

Nonstore retailing refers to selling products or services without a physical storefront or location. Direct marketing, direct selling, and automatic vending are all examples of nonstore retailing. Therefore, the best choice is C.

Question 2

Advo Systems is an organization that mails product brochures and coupons to potential consumers who can then purchase these products by mail or by phone. Advo Systems illustrates which of the following methods of selling retail products?

Accepted Answer

The answer of Advo Systems is an organization that mails...

Question 3

In the Sunday paper, Caitlin sees a flyer for a collector's edition Nativity set that is available to purchase by filling out and mailing in a form or by calling a 1-800 number. This is an example of

Accepted Answer

The flyer offers the opportunity to purchase the collector's edition Nativity set through a direct-response marketing approach, which requires individuals to take specific action by filling out and mailing the form or calling the 1-800 number.

Question 4

Identifying an unserved or underserved market segment and serving it through a strategy that is distinguished in the mind of the consumer is called

Accepted Answer

Identifying an unserved or underserved market segment and serving it through a strategy that is distinguished in the mind of the consumer is known as retail positioning. Retailers use different strategies such as product assortment, price, promotion, and store atmosphere to position themselves in the minds of customers. This helps retailers to differentiate themselves from their competitors and attract customers. The marketing concept is a broader term that refers to a customer-centric approach to business, whereas the wheel of retailing and scrambled merchandising are specific retail phenomena, and targeted retailing is a vague term that does not accurately describe this concept.

Question 5

Exterior and interior characteristics such as layout, displays, color, and lighting are all elements of a store's

Accepted Answer

Atmospherics refer to the physical elements that contribute to the overall atmosphere or ambiance of a retail environment, including exterior and interior characteristics such as layout, displays, color, and lighting. Services refer to the activities or benefits provided to customers, location refers to the place where the store is situated, environment is a broader term that includes both physical and non-physical aspects of a retail setting, and decor specifically refers to the aesthetics of a space.

Question 6

Chadwick's sends its customers booklets containing its product offerings and allows them to place orders on the telephone, through the mail, or online. Chadwick's is primarily a(n)

Accepted Answer

Chadwick's sends booklets to customers, indicating that they primarily market through catalogs, making them a catalog marketer. They also allow orders through multiple channels, which is a feature of direct selling, but the primary communication method is through catalogs. Chadwick's is not exclusively an online retailer, and while they allow orders to be placed through various channels, they are not exclusively a direct-response marketer either. Finally, they do not appear to be a specialty retailer, as they sell a wide range of clothing and accessories.

Question 7

What type of retailing began with Montgomery Ward in the late 1800s?

Accepted Answer

Montgomery Ward began the concept of catalog marketing by creating a mail-order catalog that allowed customers to purchase items from the comfort of their homes. The catalog contained a variety of goods including clothing, home appliances, and household items. This idea revolutionized the retail industry and paved the way for other companies to adopt a similar approach to selling products.

Question 8

Brianna owns and operates a gift and interior store called The Gingerbread House. She works hard to put together beautiful arrangements and displays throughout the store and always features a burning scented candle and light music. She hopes these efforts will encourage her customers to buy more. Brianna is focusing on

Accepted Answer

Brianna is focusing on atmospherics, which is the use of sensory elements to create a certain atmosphere or mood in a retail store to attract customers and encourage them to buy more. This includes features such as lighting, music, scents, and visual displays, which Brianna is using in her store.

Question 9

When a retailer advertises a product and makes it available for purchase through telephone or mail orders, the retailer is using

Accepted Answer

Direct-response marketing involves advertising a product and making it available for purchase through various channels such as telephone or mail orders.

Question 10

The selling of merchandise outside the confines of actual facilities is generally called

Accepted Answer

Nonstore retailing refers to the selling of merchandise outside of traditional storefront facilities, such as through mail order catalogs, online stores, or vending machines. Direct selling and direct marketing specifically refer to one-on-one selling or advertising, while Internet marketing is a subset of nonstore retailing that specifically refers to selling through online channels. Store-front sales, on the other hand, refers to traditional brick and mortar storefront retailing.

Question 11

A retail strategy of managing groups of similar, often substitutable products produced by different manufacturers is called

Accepted Answer

Category management involves managing groups of similar products produced by different manufacturers in order to maximize sales and profitability. This includes analyzing consumer demand, optimizing product assortment and placement, and negotiating with suppliers for the best possible pricing and promotional support. Scrambled merchandising refers to offering a wide variety of unrelated products within the same retail environment. Line extensions involve introducing new products within the same product category or brand. Aggregate management refers to managing the overall performance of a business unit, such as a store or product line. The wheel of retailing describes a phenomenon where retailers start out as low-cost, low-end operations and gradually evolve into higher-end establishments over time.

Question 12

Which retail store invests the most in atmospherics?

Accepted Answer

Neiman Marcus is known for investing heavily in creating a luxurious shopping experience for its customers through the use of high-end decor, art installations, and personalized customer service. They aim to create an ambiance and atmosphere that complements the luxury products they sell.

Question 13

In order to justify direct-response marketing, a product really needs to be priced above

Accepted Answer

The answer of In order to justify direct-response marketing, a...

Question 14

Norah operates an upscale shop that does both pet grooming and human manicures and pedicures. She is reaching a market segment with people who place great value on their dogs and are concerned with their own appearance, yet pressed for time. No other businesses meet the needs of these consumers. Which strategic issue in retailing does Norah appear to have addressed?

Accepted Answer

Norah appears to have addressed retail positioning by identifying and targeting a unique market segment that is not currently being served by any other businesses.

Question 15

The use of the telephone and other nonpersonal media to introduce products to consumers, who then can purchase the products through the mail, telephone, or the Internet is called

Accepted Answer

The answer of The use of the telephone and other...

Question 16

The three major types of nonstore retailing are

Accepted Answer

The three major types of nonstore retailing are direct marketing, direct selling, and automatic vending. These encompass a range of methods that allow businesses to sell products and services to customers without requiring a traditional retail storefront.

Question 17

A functional and psychological picture in the consumer's mind of a retail store is called

Accepted Answer

Store image refers to the overall perception that a consumer has of a retail store, encompassing both functional aspects (such as product selection and convenience) and psychological aspects (such as the atmosphere and overall experience). Retail positioning refers to the store's specific place in the market and how it differentiates itself from competitors. Atmospherics refers specifically to the store's physical environment and sensory elements, such as lighting and music, that create a certain mood or atmosphere. Interior location and retail persona are not commonly used terms in retail marketing.

Question 18

____ have been successful because consumers are willing to drive significant distances to save money buying manufacturers' closeouts and irregulars.

Accepted Answer

The statement mentions that consumers are willing to drive significant distances to save money buying manufacturers' closeouts and irregulars, which is a characteristic of outlet shopping centers. Off-price shopping centers may also offer similar discounts, but there is no mention of consumers driving long distances specifically for them. Regional shopping centers, upscale shopping centers, and specialty shopping centers do not typically offer manufacturers' closeouts and irregulars at significant discounts.

Question 19

Josh tells the loan officer at First Bank and Trust that Clarksville really needs a store that offers high-quality fishing gear to enthusiasts and provides the service and advice that many people want. No other store in the area seems to provide this combination. Josh is trying to use ____ to support his request for a loan to start such a retail operation.

Accepted Answer

The answer of Josh tells the loan officer at First...

Question 20

All of the following are types of direct marketing except

Accepted Answer

The answer of All of the following are types of...

Quiz 14: Retailing, Direct Marketing, and Wholesaling