Deck 12: Retailing

Question 1

Being able to shop online at any time of the day through the use of a computer or a mobile phone is a phenomenon called experiential retail.

A)supplier.
B)wholesaler.
C)producer.
D)distributor.
E)retailer.

Answer 1

C

Question 2

A store's lighting, music, and displays are all part of its atmospherics.

Answer 2

True

Question 3

The tendency for consumers to watch TV while also swiping and tapping on a smartphone is termed gamification.

Answer 3

False

Question 4

A disadvantage of catalog marketing is the difficulty in targeting the right customers and tracking their activity.

Question 5

Over 95 percent of retailers operate more than one store.

Question 6

Retail is the number-one private-sector employment category in the United States.

Question 7

Since retailer cooperatives are wholesale-sponsored, there tends to be much greater consistency across stores in terms of merchandising and promotions.

Question 8

Frequent users of category management are supermarkets, drugstores, hardware stores and discount retailers.

Question 9

A planned shopping center is designed to be operated as a unit, with tenants selected to limit direct competition.

Question 10

Big data analytics has yet to make a stronghold in the retail industry.

Question 11

When arranging merchandise for sale, the optimal location for a retailer's most profitable products are at the end of an aisle, at eye-level on a shelf, or at the check-out counter.

Question 12

Because they do not have aisles of unrelated products, off-price retailers can also offer a more intimate and intuitive shopping experience.

Question 13

Retail store managers typically evaluate vendors, negotiate prices, order merchandise, and arrange delivery schedules.

Question 14

An assortment includes both the breadth of product categories and the depth of product lines offered within each category.

Question 15

Wholesalers provide goods and services to other businesses as well as to consumers.

Question 16

Wholesale clubs are the same thing as membership warehouses.

Question 17

According to Forrester Research, almost half of the goods and services that consumers ultimately purchased in a store were actually influenced by online activity.

Question 18

The term retail apocalypse refers to the massive increase in the use of technology-artificial intelligence, augmented reality, etc.-that has flooded retail applications.

Question 19

Dollar discount stores and closeout chains are both types of off-price retailers.

Question 20

It is not necessary for a retailer to work on building and maintaining a positive store image-it usually happens on its own.

Question 21

In a retail setting, a visual merchandiser has the responsibility for

A)negotiating prices and ordering merchandise to be sold in the store.
B)developing layout plans and displays in order to grab shoppers' attention.
C)researching and selecting the most appropriate store location.
D)going to merchandise marts, looking at the offerings, and selecting what lines the store will carry.
E)working with retail buyers to come up with new merchandise lines that are visually appealing to customers.

Question 22

The number of distinct goods or service product lines that a retailer carries is referred to as

A)depth of assortment.
B)the manufacturing mix.
C)width of assortment.
D)breadth of assortment.
E)the retailing mix.

Question 23

What role in retailing involves the effective storage, distribution, and tracking of store merchandise?

A)supply chain/logistics manager
B)retail store manager
C)retail buyer
D)visual merchandiser
E)retail department manager

Question 24

Which statement is accurate about retailing as an economic activity?

A)Retailing is an important activity that affects nearly everyone, either directly or indirectly.
B)Historically, retailing accounted for a large part of the United States economy, but recent figures indicate that retailing's impact has waned.
C)Retailing's biggest impact can be seen in the amount of spending on clothing and food service items.
D)Retailing's effect on the economy has lessened due to the increase in online shopping.
E)The vast majority of retailers are very large organizations rather than small (one store)owners.

Question 25

All of the following situations involve retailing except

A)buying a set of golf clubs from a sporting goods store.
B)buying paper products from a wholesale club like Costco.
C)transporting newly manufactured cars to a dealership.
D)transporting newly manufactured cars to a dealership.
E)dining out at the new restaurant in town.

Question 26

The number-one private-sector employment category in the United States is in which industry?

A)manufacturing
B)banking and investments
C)food service
D)retail
E)entertainment

Question 27

What is a misconception about working in retail?

A)Retail is the number-one private-sector employment category in the United States.
B)For the most part, working in retail involves stocking shelves or working a cash register.
C)Retail offers plenty of room for career development and growth.
D)Experience gained in retail is valued by employers in other industries.
E)Because retailers tend to hire internally, there is often greater opportunity for rapid advancement.

Question 28

A retailer that adds goods and services that may be unrelated to each other and to the firm's original business is engaged in

A)deceptive merchandising.
B)full-service merchandising.
C)scrambled merchandising.
D)voluntary merchandising.

Question 29

What is a corporate chain?

A)businesses in which a supplier grants a dealer the right to sell products for a fee
B)an independent retail operation that employs 50 or more people
C)two or more retail outlets that are commonly owned and controlled
D)wholesale sponsored groups of independent retailers that band together
E)a group of independent retailers that band together to set up a jointly owned, central wholesale operation

Question 30

In a(n)________ franchise arrangement, the franchisee gains preferred exclusive access to the products manufactured by the franchisor.

A)product distribution
B)exclusive
C)standard
D)supply-oriented
E)business format

Question 31

A local craft brewer offers many varieties of beer. You can find robust stout beer, pale ales, and beer flavored with everything from coffee to citrus fruit. This is an example of the brewer's

A)variety of assortment.
B)length of assortment.
C)breadth of assortment.
D)width of assortment.
E)depth of assortment.

Question 32

A group of independent retailers that band together to set up a jointly owned, central wholesale operation that also conducts joint merchandising and promotion is referred to as a

A)franchise.
B)consumer cooperative.
C)retailer cooperative.
D)voluntary chain.
E)corporate chain.

Question 33

A retailer wanting to incorporate self-service into its stores may choose to

A)publish its advertising circular earlier.
B)incorporate customer-operated check-out lanes.
C)have more product available.
D)hire a professional sales staff.
E)have more fitting rooms.

Question 34

All of the following have contributed to the changes in modern retailing except

A)the growth in global retail opportunities.
B)the rise of Internet shopping outlets.
C)the development of business-to-consumer commerce.
D)industry consolidation and flattening sales growth.
E)the conversion of "mom and pop" shops to chain organizations.

Question 35

The majority of retail operations are

A)independent retailers.
B)conglomerates.
C)retailer cooperatives.
D)corporate chains.
E)consumer cooperatives.

Question 36

On the whole, the vast majority of retailers

A)are chain organizations that have stores in at least three locations.
B)are small businesses that employ fewer than 20 employees.
C)employ 50 or more people and have on average 10 locations.
D)are very large organizations, like Walmart, that have many outlets.
E)are now found on the Internet.

Question 37

What role in retailing involves evaluating vendors, negotiating prices, ordering merchandise and arranging delivery schedules?

A)supply chain/logistics manager
B)merchandiser
C)retail buyer
D)retail store manager
E)retail department manager

Question 38

Marketers commonly classify retailers on all of the following dimensions except

A)level of service.
B)merchandise pricing.
C)ownership/organization.
D)size of establishment.
E)breadth and depth of assortment.

Question 39

Evelyn's Evening Wear is a dress shop that caters to dresses for special occasions such as school proms, holiday parties, and weddings. Evelynhas a staff of trained employees that help in the selection of dresses regarding style, fit, and appropriateness for the occasion. The store also offers alteration services and free delivery. Evelyn's Evening Wear is an example of a

A)limited service store.
B)department store.
C)self-service store.
D)full-service store.
E)franchise.

Question 40

Tasks such as hiring, scheduling, and motivating employees is the responsibility of retail

A)department managers.
B)merchandisers.
C)supply chain managers.
D)sales staff.
E)store managers.

Question 41

In order to maintain high inventory turnover, discount stores choose

A)self-service over full-service.
B)breadth over depth.
C)full-service over self-service.
D)goods over services.
E)depth over breadth.

Question 42

"Fast fashion" is a term unique to which type of retailer?

A)off-price retailers
B)department stores
C)specialty stores
D)category killers
E)discount stores

Question 43

Online retailing is also known as

A)e-retailing.
B)secondary retailing.
C)omni-retailing.
D)cyber-retailing.
E)web-retailing.

Question 44

Nordstrom and Macy's are examples of

A)department stores.
B)full-line discount stores.
C)specialty discount stores.
D)fast fashion stores.
E)off-price retailers.

Question 45

Retail outlets such as Best Buy or Home Depot that are able to gain high market share within their chosen category, making it difficult for other types of retailers to profitably compete within that category. These types of stores are sometimes referred to as

A)value outlets.
B)high-margin retailers.
C)specialty stores.
D)department stores.
E)category killers.

Question 46

Carla owns a candy store called "Carla's confections." She just finalized an arrangement where she will operate one of her stores next to the floral department of a local grocery store. She will pay rent for the space and will be responsible for all aspects of her business. What is this type of arrangement called?

A)omni-channel retailing
B)a leased department
C)scrambled merchandising
D)an isolated store
E)a retail cooperative

Question 47

Julienne works as an independent representative for a specialty food company. She holds "parties" in peoples' homes where she can offer food samples and talk about the food items she sells. What form of retailing does this represent?

A)direct selling
B)convenience retailing
C)a retailing cooperative
D)shop-at-home retailing
E)opportunistic buying

Question 48

A type of purchasing behavior in which off-price retail stores negotiate especially low prices for certain categories of merchandise, such as end-of-season goods and closeouts is called

A)opportunistic buying.
B)negotiated buying.
C)seasonal buying.
D)strategic buying.
E)rock-bottom buying.

Question 49

________ stores are small, self-service retailers that aim to capture sales from people who are willing to pay higher prices in exchange for the ease of purchase these retailers offer.

A)Specialty stores
B)Extreme-value retailers
C)Supercenters
D)Factory outlets
E)Convenience stores

Question 50

The two types of extreme value retailers are

A)dollar discount stores and convenience stores.
B)factory outlets and closeout chains.
C)penny retailers and off-price retailers.
D)off-price retailers and discount stores.
E)dollar discount stores and closeout chains.

Question 51

Grouping many items together in a printed piece or an online store is referred to as

A)scrambled merchandising.
B)category management.
C)fast fashion.
D)mass merchandising.
E)catalog marketing.

Question 52

Perhaps the most famous online retailer in the world today, Amazon.com is guided by two principles: always putting the customer first and

A)always thinking about what the company needs to do in the short-term.
B)forgoing short-term financial gains to reinvest profits into its technology.
C)not getting carried away by the latest fads and innovations.
D)finding new ways to get the company's name in front of the consumer.
E)streamlining its promotion tactics to be more effective.

Question 53

How is the distribution of retailers along a price continuum shown?

A)The distribution is shown as a downward sloping curve.
B)The distribution is shown as an upward sloping curve.
C)The distribution is shown as following a bell curve.
D)The distribution is shown as a straight line.
E)The distribution is shown with many peaks and valleys.

Question 54

The cost to start a direct retailing business is typically very low which has led to

A)low turnover rates in this form of business.
B)more people using this form of business as a primary source of income.
C)the impression that this form of business is not worthwhile.
D)high turnover rates in this form of business.

Question 55

________ retailers primarily offer mechanical or human efforts, rather than merchandise to consumers.

A)Specialty
B)Private
C)Personal
D)Services
E)Benefit

Question 56

The most frequently visited retail category is

A)supermarkets
B)warehouse clubs.
C)convenience stores.
D)full-line discount stores.
E)department stores.

Question 57

The most impersonal form of retailing is

A)online retailing.
B)automated vending.
C)shop-at-home television networks.
D)catalog marketing.
E)direct selling.

Question 58

A retailer that offers ultra-low prices, but requires customers to pay an annual fee for the privilege of shopping in the store is referred to as

A)a warehouse club.
B)a convenience store.
C)an off-price retailer.
D)an extreme-value retailer.
E)a category killer.

Question 59

Which outlet is a type of nonstore retailing?

A)online retailing
B)warehouse clubs
C)specialty stores
D)services retailing
E)factory outlets

Question 60

Which statement is true regarding nonstore retailing?

A)Online shopping has failed to expand due to poor performance of retailing websites.
B)Online shopping does not provide the sensory elements that can be found with in-store shopping.
C)There is little difference between shopping in stores and shopping online.
D)Any retailer that offers goods and services can provide the same offering online.
E)Online shopping provides the same entertainment experience that physical stores offer.

Question 61

Isabella has a boutique where she sells women's fashion clothing. She recently added a line of jewelry and purses to her store offerings in the hope that customers will spend more overall. What technique is Isabella utilizing?

A)specialty merchandising
B)scrambled merchandising
C)micro-merchandising
D)cross-merchandising
E)complementary merchandising

Question 62

Sensory-based stimuli within a retailer's environment-the sights, sounds, smells, and other attributes-that project an image and draw customers to the store are referred to as

A)imprints.
B)assessments.
C)aspects.
D)impressions.
E)atmospherics.

Question 63

A(n)________ shopping center is an upscale retail operation that also offers fine dining and entertainment options and is often located within affluent neighborhoods.

A)exclusive
B)lifestyle
C)luxury
D)high-end
E)premium

Question 64

A unique feature of a planned shopping center is that it

A)is located on either a highway or a major road.
B)does not place retailers adjacent to one another.
C)is not centrally owned or managed.
D)has dedicated parking.
E)is not the result of long-range planning.

Question 65

Slotting allowances are used to

A)encourage manufacturers to minimize packaging.
B)entice customers to buy products in bulk quantities.
C)ensure products are preferentially displayed by the retailer.
D)encourage retailers to pay invoices on time.
E)encourage more frequent delivery of products.

Question 66

A freestanding retail outlet located on either a highway or major road is referred to as a(n)

A)one-stop shop.
B)freestanding store.
C)planned store.
D)solitary store.
E)isolated store.

Question 67

________ refers to how consumers perceive a retailer.

A)Atmospherics
B)Store image
C)Consumer confidence
D)Operational efficiency
E)Brand recognition

Question 68

Which activity relates to attaining retailer operational efficiency?

A)making sure point-of-sale systems capture customer and product data
B)thinking of how to eliminate traffic congestion in and around the store
C)determining whether to have a bricks-and-mortar store or an online store
D)improving the retailer's brand communications across social media
E)making the atmosphere of the store welcoming to customers

Question 69

There are many factors to take into consideration when choosing a site to open a retail location. Which factor would be least important?

A)distance to housing communities
B)traffic congestion
C)parking availability
D)population characteristics
E)number of employees needed

Question 70

Large regional shopping malls and neighborhood strip malls are examples of

A)isolated shopping centers.
B)unplanned shopping centers.
C)planned shopping centers.
D)unplanned business districts.
E)planned business districts.

Question 71

What is a retailer's goal in planning a store's layout with regard to traffic flows?

A)limit browsing behavior
B)optimize shopper convenience
C)maximize shelf space
D)eliminate free-flowing patterns
E)eliminate gridiron traffic flows

Question 72

Retailers that make sure their supply chain, inventory, and sales systems are able to connect with one another are concerned with which aspect of retail marketing strategy?

A)store image
B)workforce management
C)store location
D)operational efficiency
E)site selection

Question 73

Roberto owns a retail store. He often receives payments from some of his manufacturers to ensure their products are placed in the best location in the store or on the store shelves. These payments are referred to as ________ allowances.

A)shelf
B)placement
C)slotting
D)product
E)merchandise

Question 74

Category management is a merchandising technique that focuses on the performance of

A)a product category.
B)store atmospherics.
C)a store's layout.
D)individual brands.
E)competing brands.

Question 75

Randall notices that customers at his store prefer certain types of snack foods over others. In response to his customers' preferences, he allocates more shelf space to those types of snacks, and less shelf space to the snack items that are purchased less frequently. In this scenario, Randall is utilizing which of the following techniques?

A)supply-driven merchandising
B)cross-merchandising
C)scrambled merchandising
D)micro-merchandising
E)demand-driven merchandising

Question 76

A(n)________ is a type of retail location where two or more stores are situated together or in close proximity and the overall mix of stores is not the result of prior long-range planning.

A)unplanned business district
B)variety shopping center
C)isolated store combination
D)main street center
E)unplanned shopping center

Question 77

A retailer that operates a brick-and-mortar store but also sells merchandise on its website is practicing

A)direct selling.
B)omnichannel retailing.
C)micro-merchandising.
D)cross-merchandising.
E)secondary retailing.

Question 78

In terms of creating a seamless shopping experience for omnichannel consumers, what has arguably made one of the most transformational impacts within retail in recent years?

A)in-store self-serve kiosks
B)in-store pickup technology
C)customer returns without a receipt
D)self-serve check-out lanes
E)price-match guarantees

Question 79

When retailers use the information gathered about their customers' behavior in order to predict consumer trends, forecast demand, or identify consumer interest in products, they do so by applying

A)journey mapping.
B)category management.
C)the marketing mix.
D)big data analytics.
E)merchandising techniques.

Question 80

The activities involved in acquiring particular goods and services and making them available at the places, times, prices, and quantities that enable a retailer to achieve its goals is referred to as

A)merchandising.
B)journey mapping.
C)atmospherics.
D)omnichannel retailing.
E)retailing.