Question 1

Why might a retailer be interested in using the Census of Retail Trade, which classifies retailers according to the North American Industry Classification System (NAICS) codes?

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Question 2

Explain the concept of bifurcated retailing and how this trend has affected department stores.

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Question 3

Department stores carry a narrow range of products with deep assortments within those lines.

Accepted Answer

Department stores typically carry a wide range of products with a broad assortment across various categories, rather than focusing on deep assortments within narrow product lines.

Question 4

In limited-service retail operations, such as specialty stores and first-class department stores, salespeople assist customers in every phase of the shopping process.

Accepted Answer

Limited-service retail operations typically offer minimal service, relying on customers to serve themselves, unlike full-service retailers like first-class department stores and specialty stores where salespeople assist customers throughout the shopping process.

Question 5

A pop-up store is similar to a convenience store in that it carries a limited number of high-interest items at a premium price, creating time utility for consumers.

Accepted Answer

A pop-up store is a temporary retail space that opens for a short period of time, often to sell seasonal items, launch a product, or test a market, and not necessarily at a premium price or limited to high-interest items like a convenience store.

Question 6

Why have department stores struggled to survive in the United States in recent years?

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Question 7

ShopWell, a large supermarket chain, wants to offer a wider variety of fresh ready-to-go meals for its customers. ShopWell has contracted with The Great Wall, a Chinese restaurant, and Salad Heaven, a health food restaurant, to set up small take-out areas within the supermarket. This arrangement is an example of ________.

Accepted Answer

The arrangement between ShopWell and The Great Wall and Salad Heaven is an example of leased departments, which are separate businesses located within a larger retail store and operated by an outside vendor. In this case, the restaurants are leasing space within the supermarket to offer their products to customers.

Question 8

Compare and contrast the four types of discount stores.

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Question 9

What is meant by merchandise breadth and depth? Give an example of a store for each of the following: narrow assortment, broad assortment, shallow assortment, and deep assortment.

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Question 10

Which of the following refers to any method a firm uses to complete an exchange that does not require a customer to visit a store?

Accepted Answer

Nonstore retailing refers to any method a firm uses to complete an exchange that does not require a customer to visit a store. Kiosk merchandising, direct selling, and e-commerce are all examples of nonstore retailing methods, but they are more specific and do not encompass all nonstore retailing methods. Exchange retailing is not a commonly used term in the field of marketing.

Question 11

Which of the following prohibits door-to-door selling unless prior permission has been granted by the household?

Accepted Answer

A Green River Ordinance is a local law that prohibits door-to-door selling without prior permission from the residents. The National Do Not Call Registry regulates telemarketing calls, permission-based email marketing relates to email communications, network marketing refers to a type of business model, and a party plan system is a sales strategy used by some companies.

Question 12

Which of the following is a type of in-home selling?

Accepted Answer

The party plan system is a type of in-home selling where a sales representative hosts a party at a customer's home and demonstrates and sells products to the attendees.

Question 13

Which of the following is an illegal sales technique?

Accepted Answer

Pyramid schemes are illegal sales techniques that rely on participants recruiting others into the program with the promise of large profits, rather than on the sale of actual products or services. This makes them unsustainable and often results in financial harm to participants. In contrast, retailtainment, party plan systems, multilevel networks, and off-price retailing are all legal sales techniques that operate within the boundaries of the law.

Question 14

Another name for multilevel marketing is ________.

Accepted Answer

Multilevel marketing is often referred to as network marketing because it involves building up a network of distributors who are compensated for their sales and the sales of those they recruit into the network. While it is also sometimes called the pyramid system, this term has a negative connotation due to illegal pyramid schemes that promise high returns for little investment and do not involve the sale of products or services. Integrated marketing and experiential marketing are different forms of marketing, and the party plan system is a specific type of multilevel marketing where distributors host parties to sell products.

Question 15

When a gift shop decided to begin selling Blue Ridge pottery, it was modifying its merchandise mix.

Accepted Answer

Modifying the merchandise mix means adding or removing products from the existing range to attract customers and increase sales. In this case, the gift shop added Blue Ridge pottery to its merchandise mix, which is a modification.

Question 16

In ________, a master distributor recruits other people to become distributors. The master distributor sells the company's products to the people she entices to join and receives commissions on all the merchandise sold by the people she recruits.

Accepted Answer

The description in the question aligns with the concept of multilevel marketing, where a top-level distributor recruits and earns commissions from lower-level distributors that they convince to join the company.

Question 17

Off-price retailers obtain surplus merchandise from manufacturers and offer brand-name, fashion-orientated goods at low prices.

Accepted Answer

Off-price retailers specialize in obtaining excess inventory or surplus merchandise from manufacturers and selling them at discounted prices to consumers. These retailers often offer recognizable brand-name products at prices significantly lower than those found in traditional retail outlets.

Question 18

Retailers like Sam's Club that promise bottom-dollar prices are often self-service operations.

Accepted Answer

Self-service operations mean the customers are responsible for selecting and purchasing their items, which saves on labor costs and allows for lower prices. Sam's Club is a retailer that uses this model and promotes their low prices.

Question 19

Compare and contrast specialty stores and convenience stores.

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Question 20

What is the merchandise assortment of an airport bookstore that sells only a few books but a large variety of magazines?

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Quiz 12: Deliver the Customer Experience: Goods and Services Via Bricks and Clicks