Question 1

Figure: 15-5 
-Which of the following stores would best fit in quadrant "C" shown in Figure 15-5?

Accepted Answer

Quadrant "C" typically represents stores that offer low prices and low service levels. Payless ShoeSource fits this description as it is known for offering affordable footwear with minimal service.

Question 2

Maintained markup is:

Accepted Answer

Maintained markup is the difference between the final selling price and the retailer's cost, reflecting the actual profit margin after any markdowns or discounts.

Question 3

The goods and services mix,the physical distribution mix,and the communication mix chosen by a store are known collectively as the:

Accepted Answer

The goods and services mix, physical distribution mix, and communication mix are all important considerations for a retailer in creating their overall strategy. Collectively, they are known as the retailing mix, making choice D the correct answer. The wheel of retailing is a concept that describes how retail institutions tend to begin as low-end, low-price options and then gradually move up the scale in terms of price and service. The distribution mix refers specifically to the ways in which goods and services are delivered to customers, and the consumer-retailer matrix is not a term commonly used in the context of retail strategy.

Question 4

Figure: 15-5 
-Which of the following stores would best fit in quadrant "D" shown in Figure 15-5?

Accepted Answer

Birks is a luxury jewelry store that offers high-end, expensive products. This fits within quadrant D, which represents high price and high quality stores. Kmart, Payless ShoeSource, and Hudson's Bay department store all offer moderately priced products and do not fit within quadrant D.

Question 5

Figure: 15-5 
-Which of the following stores would best fit in quadrant "B" shown in Figure 15-5?

Accepted Answer

The answer of Figure: 15-5 
-Which of the following stores...

Question 6

Dillard's and Parisian's are two department store chains that have high value added and broad product lines.They pay close attention to store design and product lines.Merchandise in these stores often has a high margin of profit and is of high quality.Such stores typically provide:

Accepted Answer

Dillard's and Parisian's are known for their high levels of service, which includes personal shopping assistance, alterations, and gift wrapping services. Direct ordering from television infomercials and prompt mail-order delivery are not typically associated with department stores like Dillard's and Parisian's. Low levels of service would not align with their emphasis on high value added and high-quality merchandise.

Question 7

Loblaws,a Canadian supermarket,features fruits and vegetables piled high on tables which have umbrellas.The idea behind this arrangement was to give Loblaws "a market feel." In terms of the retailing mix,this tactic was concerned with:

Accepted Answer

The use of umbrellas and the arrangement of fruits and vegetables to create "a market feel" is a tactic related to communication, as it aims to convey a specific atmosphere or brand image to customers.

Question 8

To successfully position a store,it:

Accepted Answer

A store must have a unique identity or competitive advantage over its competitors that is recognized and appreciated by consumers. This will help it stand out and attract customers. The other options provided do not necessarily contribute to successful positioning.

Question 9

You are developing a retailing strategy for a new women's clothing store.Your strategy should consider each of the following EXCEPT:

Accepted Answer

The other options are all important elements to consider when developing a retailing strategy for a new women's clothing store. However, selecting suppliers who offer volume and seasonal discounts is not necessarily a crucial factor in developing a retailing strategy. While it may be a consideration, it is not essential to the overall success of the store.

Question 10

The pricing manager for Loblaws tries to ensure that the difference between their selling price and the price the manufacturer charges them is at least ten percent of the manufacturer's price.This is referred to as the:

Accepted Answer

The answer of The pricing manager for Loblaws tries to...

Question 11

Which of the following is NOT an element of the retailing mix?

Accepted Answer

Segmentation is a marketing concept that refers to dividing a market into smaller groups with similar needs and characteristics. While it is a crucial aspect of developing a marketing strategy, it is not a component of the retailing mix. The other options such as goods and services, physical distribution, and communications represent critical parts of a retailing mix.

Question 12

Another term for gross margin is:

Accepted Answer

Gross margin is often referred to as maintained markup, which is the difference between the cost of goods sold and the sales revenue, reflecting the actual profit margin after accounting for markdowns and other reductions.

Question 13

One dimension of the retail positioning matrix is value added,and the other is:

Accepted Answer

The other dimension of the retail positioning matrix is breadth of product line, which refers to the variety or number of product categories offered by a retailer. Depth of product line and revenue generated are not factors in the retail positioning matrix, and while relative market share is important, it is not the other dimension of the matrix.

Question 14

When developing marketing strategies,marketing managers use the elements of the marketing mix,which includes product,price,place,and promotion.The marketer can effectively control these elements to develop marketing strategies and to change those strategies in response to environmental changes.In a similar fashion,when developing retailing strategies,marketers use what is called the retailing mix,which includes:

Accepted Answer

The retailing mix includes merchandise (product), store location (place), pricing, and communications (promotion). Personal selling is also an important component of retailing, but it is not considered a separate element in the retailing mix.

Question 15

Markup is:

Accepted Answer

Markup is the amount added to the cost the retailer paid for a product to reach the final selling price. It is calculated as a percentage of the cost price.

Question 16

Toronto-based Whole Foods supermarkets targets people who want to eat healthy.The stores use placards throughout,which tell shoppers about the farmers who grew and harvested various products.This use of signage to provide consumer information is a part of which element of the retailing mix?

Accepted Answer

The use of signage to provide consumer information is a communication element of the retailing mix.

Question 17

A retailer bought a pair of designer eyeglass frames for $16.She sets the initial selling price at $48 dollars.The final selling price was $34.What was the original markup?

Accepted Answer

The original selling price was $48 and the final selling price was $34, so the price decreased by $14. 
The cost price was $16, so the original markup was $48-$16=$32. Therefore, the correct answer is B.

Question 18

Figure: 15-5 
-Which of the following stores would best fit in quadrant "A" shown in Figure 15-5?

Accepted Answer

Walmart is a discount store that offers a wide variety of products at low prices. This makes it a good fit for quadrant "A", which represents stores that are low on price and high on variety.

Question 19

One of the reasons given for the failure of the hypermarket concept in North America is an inability to locate the stores at the most visible and accessible sites.All the best locations were already occupied by Walmart,category killers,and other retail outlets.In terms of the retailing mix,hypermarkets had a problem with their:

Accepted Answer

The passage clearly states that one of the reasons for the failure of hypermarkets in North America is the inability to locate stores at visible and accessible sites, as the best locations were already occupied by competitors. This indicates that the hypermarkets had a problem with their store location. The other options (communications, discounts and allowances, and price) are not mentioned in the passage as reasons for the failure of hypermarkets.

Question 20

A retailer buys a painting for $200.She sets the price at $450.When the painting doesn't sell after two months,she raises the price to $800 to appeal to a different market.The painting sells for $800 the next day.What is the maintained markup?

Accepted Answer

The answer of A retailer buys a painting for $200.She...

Quiz 15: Retailing

Figure: 15-5 -Which of the following stores would best fit in quadrant "C" shown in Figure 15-5?