Question 1

Toys For Us is a retail chain that specializes in children's toys.It offers an extensive assortment of new toys and old favourites.It also carries exclusive toys that cannot be found in other toy stores.Toys For Us is an example of a:

Accepted Answer

Toys For Us is a classic example of a category killer as it specializes in a particular category of merchandise, in this case, toys. It offers a vast variety of toys and a wide range of options, making it difficult for other stores to compete. It also carries exclusive items that cannot be found in other toy stores, thus solidifying its position as a category killer.

Question 2

A category specialist is a type of retail store that offers a(n):

Accepted Answer

A category specialist focuses on a narrow variety but offers a deep assortment of merchandise within that category, often with knowledgeable sales staff.

Question 3

Retailers provide value to both manufacturers and customers by providing:

Accepted Answer

Retailers provide storage services for manufacturers which allow them to keep their products in a convenient location until they are sold to customers. This benefits both manufacturers and customers as it ensures timely delivery of products and minimizes costs associated with storage and transportation.

Question 4

Woody's is a retail chain that offers a broad variety of products, organized into separate departments for the convenience of customers.It also offers a wide variety in each category and employs sales associates to assist customers.Woody's is an example of a:

Accepted Answer

Woody's is a department store as it offers a range of products across multiple departments, employs sales associates, and organizes its products according to departments for the convenience of customers. This distinguishes it from other types of stores such as specialty stores, which focus on a narrow range of products, and convenience stores, which offer a limited selection of products for quick purchases.

Question 5

Which of the following general merchandise retailers have lost market share to other retailers that provide better value at low prices and high-end store chains in the recent years?

Accepted Answer

Department stores have lost market share to both discount stores, which offer lower prices and better value, and high-end store chains, which provide a more luxurious shopping experience. Additionally, many department stores have struggled to adapt to the rise of online shopping, further contributing to their decline in market share.

Question 6

Wellcome is a retail store that sells personal grooming items, cosmetics, and medicines.It also sells some snacks.Wellcome is an example of a:

Accepted Answer

Wellcome is primarily a store that sells personal grooming items, cosmetics, and medicines. This makes it a good example of a drugstore. While it also sells some snacks, this is not its main focus and it does not qualify as a convenience store or a hypermarket. It is not large enough or varied enough to be considered a department store, nor does it consistently offer discount prices to qualify as a discount store.

Question 7

A general merchandise discount store located in a lower-income urban or rural area is known as a(n):

Accepted Answer

An extreme value retailer is a type of discount store that specializes in lower-priced merchandise and is often located in lower-income urban or rural areas. Convenience stores typically focus on providing quick and convenient products, while category specialists and department stores typically offer a wider range of products and may not necessarily be located in lower-income areas. Specialty stores are focused on a specific type of product, such as jewelry or sporting goods.

Question 8

Which of the following types of stores tailor their retail strategy to very specific market segments by offering deep but narrow assortments and sales associate expertise?

Accepted Answer

Specialty stores tailor their retail strategy to very specific market segments by offering deep but narrow assortments and sales associate expertise. They focus on a particular product category, such as electronics, beauty products, or athletic wear, and offer a wide range of products within that category. Sales associates are often experts in the category and can provide in-depth product knowledge and personalized recommendations to customers. Discount stores, department stores, and off-price stores offer broader assortments and do not have the same level of specialization and expertise. Convenience stores offer a limited assortment of products for convenience rather than specialization.

Question 9

Which of the following organize a broad variety of merchandise based on categories and, hence, resemble a collection of specialty shops?

Accepted Answer

Department stores organize a broad variety of merchandise based on categories, resembling a collection of specialty shops. They may offer clothing, accessories, cosmetics, home goods, appliances, and more. Examples of department stores include Macy's, Kohl's, and Nordstrom.

Question 10

Crimson Corp.is a retail chain that sells a variety of products such as food, clothing, furniture, appliances, and other accessories.Since the store buys merchandise directly from vendors at very low prices, it is able to offer products at lower prices than traditional discount retailers.Crimson is an example of a(n):

Accepted Answer

Crimson Corp. is able to offer products at lower prices than traditional discount retailers because they buy merchandise directly from vendors at very low prices. This is a characteristic of off-price retailers.

Question 11

Richway offers a wide variety of products, such as clothing, footwear, electronics, housewares, bedding, and beauty products, at prices lower than traditional retail outlets with limited service.Richway is an example of a:

Accepted Answer

Richway is a store that offers a variety of products at lower prices, which fits the definition of a discount store.

Question 12

Blossoms is a small bookstore in Ottawa with a preference for fine books and classic literature.It sells books on philosophy, art, literature, travel, and architecture and has sales associate expertise to help customers.Blossoms is an example of a:

Accepted Answer

Blossoms is a specialty store because it focuses on selling a specific category of books (fine books and classic literature) and has sales associates who are experts in that category.

Question 13

Retail stores that offer a broad variety and deep assortment of merchandise, provide some customer services, and are organized into separate departments to display their merchandise are referred to as:

Accepted Answer

Department stores offer a wide variety of merchandise organized into separate departments, and often offer some customer services such as alterations or gift wrapping. Discount stores focus on offering low prices, specialty stores specialize in a specific product category or niche, category specialists offer deep assortments in a specific product category, and convenience stores prioritize speed and convenience over a broad merchandise selection.

Question 14

The Small Store is a retail chain with small stores that offer a limited variety of products at lower prices.It targets customers in rural and lower-income urban areas.The Small Store is an example of a(n):

Accepted Answer

The Small Store's focus on smaller stores, limited product variety, and lower prices indicates that it is an extreme value retailer. This type of retailer targets price-sensitive customers in both rural and urban areas.

Question 15

Which of the following offers an inconsistent assortment of merchandise at relatively low prices?

Accepted Answer

Off-price retailers specialize in buying merchandise at lower prices and often from irregular or overstock inventories, which leads to an inconsistent assortment of goods. They pass the savings onto consumers, offering brand-name or designer products at significant discounts.

Question 16

Draper is a clothing retail that offers a deep assortment but exclusively in menswear.It uses a self-service approach.Draper is an example of a:

Accepted Answer

Draper is a category specialist as it exclusively focuses on one category (menswear) and offers a deep assortment in that category.

Question 17

Which of the following general merchandise retailers concentrate on a limited number of complementary merchandise in relatively small stores?

Accepted Answer

Specialty stores concentrate on a limited number of complementary merchandise in relatively small stores.

Question 18

Retail stores that concentrate on health and personal grooming merchandise and sell prescription drugs are known as:

Accepted Answer

Drugstores are retail stores that specialize in health and personal grooming merchandise and also sell prescription drugs. Convenience stores usually sell a variety of products including food, beverages, and personal care items but typically do not sell prescription drugs. Discount stores and department stores may sell health and personal grooming products but do not specialize in them. Category killers are large stores that specialize in one particular category of merchandise, such as electronics or sporting goods, and do not typically sell prescription drugs.

Question 19

Which of the following offers a narrow variety but a deep assortment of merchandise?

Accepted Answer

Category specialists offer a narrow variety of merchandise, but a deep assortment within that category. For example, a store that only sells sporting goods would only have a few types of products, but many options within each type such as different brands, sizes, and colors of soccer balls.

Question 20

Which of the following offers an extensive assortment in a particular segment overwhelmingly that other retailers have difficulty competing?

Accepted Answer

Category specialists are retailers that offer an extensive assortment in a particular product category, such as electronics (Best Buy) or sporting goods (Dick's Sporting Goods). These retailers have such a vast selection that other retailers find it challenging to compete.

Quiz 13: Retailing and Omni-Channel Marketing