Question 1

Compared with other types of retailers, department stores compete mainly on the basis of

Accepted Answer

Department stores have traditionally differentiated themselves by offering a high level of customer service, including amenities such as personal shopping, gift-wrapping, and dedicated associates to assist with purchases. While some department stores may also compete on price or variety of products, customer service is often the primary focus.

Question 2

If a store has areas for men's apparel, women's apparel, housewares, cosmetics, and jewelry and competes mostly on the basis of service, it is a(n)

Accepted Answer

A store that has areas for men's apparel, women's apparel, housewares, cosmetics, and jewelry and competes mostly on the basis of service is a department store. It offers a wide variety of products and services under one roof and targets multiple customer segments. Department stores typically have a higher price point and focus on providing superior customer service and a high-end shopping experience.

Question 3

Retailing is best characterized as

Accepted Answer

Retailing involves transactions in which the buyer intends to consume the product through personal, family, or household use. The other options do not fully capture the essence of retailing. A) refers to large organizations but does not necessarily involve retailing, B) is the correct definition, C) refers to franchising, D) describes B2B transactions and E) is too narrow in scope.

Question 4

Which of the following was developed in 1927 to supply milk, eggs, and other products for customers replenishing their ice boxes?

Accepted Answer

Convenience stores were developed in 1927 to supply milk, eggs, and other products for customers replenishing their ice boxes.

Question 5

As discount stores improve their services and atmosphere as well as raise their prices, the distinction between discount stores and ____ is becoming blurred.

Accepted Answer

Department stores traditionally offer higher-priced merchandise and a wider range of products than discount stores. With discount stores raising their prices and improving their services and atmosphere, they are moving closer to the traditional offerings of department stores, blurring the distinction between the two.

Question 6

Wal-Mart, Macy's, Nordstrom's, and Toys "R" Us are examples of

Accepted Answer

Wal-Mart, Macy's, Nordstrom's, and Toys "R" Us are all retailers, as they sell products directly to the end consumer.

Question 7

A small self-service store that is open long hours and carries a narrow product assortment in convenient locations is best described as a

Accepted Answer

A convenience store is typically a small self-service store that is open long hours (often 24/7) and carries a narrow product assortment. They are usually located in convenient locations such as gas stations or busy intersections, making them a convenient option for customers who need to make quick purchases. Discount stores, department stores, supermarkets, and category killers all have larger product assortments and/or different business models than convenience stores.

Question 8

Any organization that purchases products for the purpose of reselling them to ultimate consumers is a(n)

Accepted Answer

A retailer is an organization that purchases products for the purpose of reselling them to ultimate consumers. A wholesaler purchases products from producers or manufacturers and resells them to retailers or other businesses, while a shopping center is a physical location where retailers are often located together. An intermediary can refer to any organization that acts as a middleman between producers and consumers, and a producer creates or manufactures products.

Question 9

Nordstrom's, Macy's, and JC Penney's are all considered

Accepted Answer

Nordstrom's, Macy's, and JC Penney's are all department stores as they offer a wide variety of products and multiple departments within the store.

Question 10

Who provides the environment in which exchanges with ultimate consumers occur?

Accepted Answer

Retailers provide the environment (physical or digital) in which exchanges with ultimate consumers occur. They directly interact with consumers and offer products or services for sale. Wholesalers sell products to retailers, while catalogers and telemarketers primarily rely on remote sales channels. Producers may sell directly to consumers, but they may not provide the environment in which exchanges occur.

Question 11

Supermarkets, discount stores, and hypermarkets can all be classified as

Accepted Answer

The answer of Supermarkets, discount stores, and hypermarkets can all...

Question 12

Which type of retailer generally accepts lower margins than traditional retailers in exchange for higher sales volume?

Accepted Answer

Discount stores generally accept lower margins in exchange for higher sales volume. They focus on offering low prices and high turnover of merchandise, which translates into higher sales volume. This business model allows them to maintain a lower profit margin while still being profitable overall.

Question 13

A general merchandise retailer offers

Accepted Answer

A general merchandise retailer offers a variety of product lines that are stocked in depth, providing a wide selection of products for customers to choose from. This allows the retailer to appeal to a broader customer base and increase the likelihood of customers finding what they are looking for.

Question 14

Self-service, general merchandise stores such as Kmart are known as

Accepted Answer

Self-service, general merchandise stores like Kmart are commonly categorized as discount stores as they offer products at lower prices than traditional retailers by reducing operational costs and minimizing advertising expenses.

Question 15

Jack Ingalls gets a shopping list from his wife. On the list are a potted plant, fresh salmon, motor oil, bread, milk, and a birthday cake. To make just one stop to save time, Jack should go to a(n)

Accepted Answer

A supermarket would have all the items on Jack's shopping list, including groceries, household items, and even a bakery section for the birthday cake. Other options such as a convenience store or specialty store may not have all the items Jack needs, while an off-price retailer or franchiser may not carry groceries at all.

Question 16

Walmart and Target are both examples of

Accepted Answer

Walmart and Target both fall under the category of discount stores, as they offer lower prices and a wider range of products compared to traditional department stores. They also tend to be larger in size and offer a one-stop shopping experience for customers. Category killers, supermarkets, and warehouse clubs are all different types of retail formats that do not accurately describe Walmart and Target.

Question 17

Large, self-service stores that carry a complete line of food products and some nonfood products are called

Accepted Answer

Supermarkets are large stores that carry a complete line of food products and some nonfood products. Discount stores are primarily focused on selling merchandise at lower prices. Superstores typically carry groceries, household items, and clothing. Department stores sell clothing, accessories, and home goods. Warehouse clubs require a membership to shop and sell products in bulk at discounted prices.

Question 18

A retailer is an organization that purchases products for the purpose of reselling them to

Accepted Answer

Retailers purchase products with the intention of selling them directly to ultimate consumers, rather than selling to other retailers, the government, wholesalers, or nonprofit organizations.

Question 19

Ollies' is a regional self-service retail store that sells name-brand electronics, tools, housewares, and sporting goods at low prices. Ollies' is an example of a

Accepted Answer

Ollies' is a discount store as it focuses on selling name-brand products at low prices, which is the main characteristic of a discount store.

Question 20

Kroger, Safeway, and Publix are all considered

Accepted Answer

Kroger, Safeway, and Publix are all examples of supermarkets, which are large grocery stores that offer a wide range of products including fresh produce, meat, dairy, and dry goods. Superstores typically offer a broader range of products beyond groceries, department stores focus more on clothing and home goods, and food stores may be smaller or specialize in a particular type of food.

Quiz 15: A:retailing, Direct Marketing, and Wholesaling