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

Question 1

V&E Bridal Design Shop caters to engaged couples who desire a traditional Eastern Asian wedding ceremony. The brides-to-be who shop at this store are typically Japanese, Laotian, Vietnamese, Korean, or Chinese. This retailer has used ________ to identify a market segment.

A) psychographics
B) geography
C) demographics
D) socioeconomics
E) its merchandise mix

Answer 1

C

Question 2

Which of the following is the purpose of a beacon in a retail space?

A) to deliver promotions and rewards to customers as they shop in a physical retail space
B) to keep a running total on sales, returns, and transfers to other stores
C) to automatically reorder products when inventories decline to a certain level
D) to allow customers to automatically pay for items without cash or a credit card
E) to provide a seamless shopping experience for customers across shopping locations

Answer 2

A

Question 3

Which of the following is the purpose of omnichannel marketing?

A) to deliver promotions and rewards to customers as they shop in a physical retail space
B) to keep a running total on sales, returns, and transfers to other stores
C) to automatically reorder products when inventories decline to a certain level
D) to allow customers to automatically pay for items without cash or a credit card
E) to provide a seamless shopping experience for customers across shopping locations

Answer 3

E

Question 4

Josh purchased a new tie from an upscale men's clothing store to impress the managers he would meet at an important job interview. The day after the job interview, Josh returned the tie to the store for a full refund. This is an example of ________.

A) buyer's remorse
B) sweethearting
C) retail borrowing
D) shoplifting
E) customer profiling

Question 5

Which of the following refers to store personnel tailoring the level of service they give based on a customer's perceived ability to pay?

A) sweethearting
B) experiential shopping
C) retail borrowing
D) off-price retailing
E) customer profiling

Question 6

A marketing strategy that enhances the shopping experience for experiential shoppers is called ________.

A) sweethearting
B) retail borrowing
C) omnichannel marketing
D) nonstore retailing
E) retailtainment

Question 7

According to the ________ hypothesis, new retailing forms often begin as low-margin, low-price, low-status operations to challenge established retailers; then become successful; and eventually take the place of the established retailers they had challenged.

A) agent
B) broker
C) wheel-of-retailing
D) warehousing
E) retail life cycle

Question 8

Which of the following is the final stop in the distribution channel in which organizations sell goods and services to consumers for their personal use?

A) franchising
B) retailing
C) brokering
D) wholesaling
E) disintermediation

Question 9

For the retailer, the practice of ________ results in lower total sales and, in many cases, damaged merchandise.

A) sweethearting
B) experiential shopping
C) retail borrowing
D) off-price retailing
E) network marketing

Question 10

A cashier who purposely undercharges a customer or allows a friend to walk away without paying for items would most likely be accused of which of the following?

A) sweethearting
B) experiential shopping
C) retail borrowing
D) off-price retailing
E) customer profiling

Question 11

Which of the following is most closely associated with upscaling in retailing?

A) fewer members in the channel of distribution
B) more members in the channel of distribution
C) greater operating costs
D) lower operating costs
E) lower levels of customer service

Question 12

Which of the following is NOT a function of a point-of-sale (POS) system?

A) collecting sales data
B) connecting directly into a store's inventory-control system
C) transmitting coupons to customers in the store
D) collecting data on returns and transfers to other stores
E) automatically sending orders to suppliers

Question 13

Wholesaling includes all the activities involved in selling goods or services directly to final consumers for their personal use.

Question 14

Shoplifting, sweethearting, and retail borrowing are all problems that contribute to ________.

A) off-price retailing
B) shrinkage
C) pyramid schemes
D) omnichannel marketing
E) pop-up retailing

Question 15

Using the strategy of ________, retailers convert shopping into an interactive activity for customers in bricks and mortar locations.

A) destination retailing
B) beaconing
C) sweethearting
D) experiential merchandising
E) customer profiling

Question 16

Which of the following best explains why new retailers often squeeze out older retailers?

A) retail borrowing
B) the wheel-of-retailing hypothesis
C) shrinkage
D) pop-up retailing
E) pyramid schemes

Question 17

Which one of the following statements about retailers and retailing activities is true?

A) Retailers create form utility.
B) Most retailers are multi-million dollar operations.
C) Retailers are members of channels of distribution.
D) About half of all U.S. workers are employed by retailers.
E) Retailers sell only to businesses.

Question 18

Demographic changes have motivated marketers to make changes in the retailing industry.

Question 19

When sales are made in a local Walmart, the sales data is sent to Walmart headquarters where the data are used to build a picture of the buying habits of people who shop at individual Walmarts across the nation. The use of ________ makes this possible.

A) POS systems
B) social shopping
C) e-commerce
D) e-menus
E) beacons

Question 20

One of the most thorough and complex explanations of changes in the retailing industry is the wheel-of-retailing hypothesis.

Question 21

Retail stores are often classified on the breadth and depth of their merchandise assortment. The depth of the merchandise is the variety of choices for each specific product. Merchandise depth may be classified as ________ or ________.

A) narrow; broad
B) narrow; deep
C) shallow; broad
D) shallow; deep
E) narrow; full

Question 22

Retailers offering ________ require customers to perform their own product selection and may require customers to handle their own checkout process.

A) limited-service
B) full-service
C) self-service
D) specialty service
E) wholesale service

Question 23

When a cashier at the local grocery store purposefully fails to scan all of the items purchased by her friends and allows her friends to leave the store without paying for all of their items, the cashier is engaged in sweethearting.

Question 24

Give an example of how global retailers have adjusted their offerings to meet the needs of different populations around the world.

Question 25

Give an example of how the economic downturn that began in 2007 affected retailers' strategies.

Question 26

Give an example of how the recent economic downturn affected retailers' strategies.

Question 27

Pier 1 Imports started as a single store in San Mateo, California, offering low-priced beanbags, love beads, and incense to baby boomers. Today it sells quality home furnishings and decorative accessories. Why is Pier 1 Imports a perfect case study of the wheel-of-retailing hypothesis?

Question 28

Failing to provide equal access to customers who appear economically disadvantaged is both unethical and illegal.

Question 29

Briefly explain the wheel-of-retailing concept.

Question 30

________ is the basis of most discount operations. Retailers offering this level of service require customers to perform their own product selection and may require customers to handle their own checkout process.

A) Limited-service
B) Full-service
C) Self-service
D) Specialty service
E) Wholesale service

Question 31

A destination retailer is a store that consumers view as distinctive enough to go out of their way to shop there.

Question 32

________, such as Target and Kohl's, provide merchandise return and offer credit, but customers select merchandise without much assistance.

A) Self-service retailers
B) Full-service retailers
C) Specialty retailers
D) Off-price retailers
E) Limited-service retailers

Question 33

Which of the following is LEAST likely to happen at a full-service retailer?

A) Customers have access to alteration services.
B) Gift wrapping services are offered.
C) Customers seek and receive helpful guidance from trained sales associates.
D) Customers handle their own checkout process.
E) Product consultants are available to answer specialized questions.

Question 34

The fair trade goods designation means that a producer has agreed to pay the prevailing minimum wage to its employees.

Question 35

Which of the following types of retailers place the most emphasis on salespeople assisting customers throughout the purchase process?

A) limited-service retailers
B) full-service retailers
C) self-service retailers
D) discount retailers
E) off-price retailers

Question 36

Retail stores are often classified on the breadth and depth of their merchandise assortment. The breadth of the merchandise is the number of different lines available. The merchandise breadth may be classified as ________ or ________.

A) narrow; broad
B) narrow; deep
C) shallow; broad
D) shallow; deep
E) narrow; full

Question 37

________ are large stores that combine an economy supermarket with other lower-priced non-food merchandise.

A) Variety stores
B) Category killers
C) Supercenters
D) Box stores
E) Convenience stores

Question 38

Describe the practice of retail borrowing and explain why it is unethical.

Question 39

A ________ is a set of related products a retailer offers.

A) merchandise mix
B) merchandise assortment
C) merchandise breadth
D) product depth
E) product line

Question 40

Which of the following is the number of different product lines available at a particular retail store?

A) merchandise breadth
B) inventory depth
C) merchandise depth
D) retail diversity
E) point-of-sale range

Question 41

Which of the following is a discount retailer owned by a manufacturer that provides the manufacturer a store to sell off defective merchandise?

A) a specialty store
B) a factory outlet store
C) a department store
D) a general merchandise discount store
E) a warehouse club

Question 42

Stop-N-Go and Circle K, both small stores that serve consumers willing to pay a higher price for the ease of buying staples close to home, are ________.

A) specialty stores
B) convenience stores
C) supermarkets
D) hypermarkets
E) off-price retailers

Question 43

Which of the following is true about convenience stores?

A) They carry mostly shopping goods.
B) They charge lower-than-normal prices for shopping goods.
C) They are reluctant to change their offerings to adjust to changes in the market.
D) They create time utility for their customers.
E) They create form, time, and place utility for their customers.

Question 44

Which type of self-service store offers a limited line of inexpensive items, often at a single price point?

A) convenience store
B) box store
C) specialty store
D) variety store
E) leased department store

Question 45

Several years ago, the Paradise Surf Shop was the only surf-gear store catering to women. It carried everything the serious female surfer needed to ride the waves. In terms of its merchandise assortment, it had a ________ assortment.

A) shallow and deep
B) narrow and deep
C) shallow and broad
D) broad and deep
E) shallow and narrow

Question 46

Which of the following types of retail stores would likely offer the broadest assortment of merchandise and services?

A) convenience stores
B) factory outlet stores
C) specialty stores
D) box stores
E) hypermarkets

Question 47

The Paper Moon sells gift wrapping paper, stationery, and greeting cards. It does not sell any other products. The number of different kinds of wrapping paper, stationery, and cards make up its ________.

A) point-of-sale range
B) merchandise diversity
C) atmospherics
D) merchandise assortment
E) retail format

Question 48

Which of the following statements about department stores is true?

A) Department stores are more successful in America today than they have ever been.
B) Department stores typically offer shallow and narrow assortments.
C) Department stores are more popular in America than they are abroad.
D) Department stores are typically self-service.
E) Department stores were a dominant type of American retailer in the first half of the twentieth century.

Question 49

Which of the following types of retailers obtain surplus merchandise from manufacturers and offer brand-name, fashion-oriented goods at low prices?

A) specialty stores
B) warehouse clubs
C) off-price retailers
D) department stores
E) hypermarkets

Question 50

Customers of a ________ buy most of the store's products in larger-than-normal packages and quantities.

A) warehouse club
B) department store
C) factory outlet store
D) leased department store
E) hypermarket

Question 51

Which of the following is true about general merchandise discount stores?

A) They typically have deep and narrow assortments.
B) They typically have shallow and narrow assortments.
C) They do not use price differentiation.
D) They appeal to consumers who want easy access to a lot of merchandise.
E) They are typically full-service retailers.

Question 52

A shoe department carries more than 55 different styles of white sandals. This is a description of the shoe department's ________.

A) merchandise breadth
B) retail diversity
C) merchandise depth
D) point-of-sale range
E) service assortment

Question 53

Which type of self-service store is a food store with a limited selection of items and few brands per item?

A) convenience store
B) box store
C) specialty store
D) variety store
E) leased department store

Question 54

Which type of store combines the characteristics of a warehouse store and a supermarket?

A) freestanding store
B) department store
C) box store
D) hypermarket
E) factory outlet store

Question 55

Which of the following is NOT true about warehouse clubs?

A) They are not full-service stores.
B) They often charge their customers with a modest annual membership fee.
C) They carry items in bulk.
D) They are a form of discount store.
E) They have not followed the pattern set forth by the wheel-of-retailing hypothesis.

Question 56

A large retail store that wants to offer a broader variety of products or services on site than it would otherwise carry would most likely make an arrangement with a(n) ________.

A) leased department
B) convenience store
C) variety store
D) factory outlet
E) off-price retailer

Question 57

Costco's surprise offerings of seconds, overstocks, and closeouts-occasionally including diamonds-is an example of how a retailer can differentiate itself through its ________.

A) merchandise mix
B) services mix
C) destination retailing
D) store atmosphere
E) level of service

Question 58

Which of the following stores is most likely to have a narrow assortment of merchandise?

A) a supermarket
B) a factory outlet store
C) a department store
D) a warehouse club
E) a hypermarket

Question 59

________ carry a narrow assortment of product lines with deep assortments within those lines.

A) Supermarkets
B) Specialty stores
C) Convenience stores
D) Discount stores
E) Off-price stores

Question 60

GameStop sells video games and systems, offering a narrow product line with a deep assortment within that line. GameStop is a(n) ________http://www.xbox.com/en-us/games/forza-6.

A) department store
B) convenience store
C) specialty store
D) general merchandise discount store
E) off-price retailer

Question 61

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?

Question 62

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

Question 63

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

Question 64

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

Question 65

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.

Question 66

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

Question 67

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 ________.

A) convenience stores
B) leased departments
C) specialty stores
D) hypermarkets
E) off-price retailing

Question 68

Compare and contrast the four types of discount stores.

Question 69

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.

Question 70

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?

A) kiosk merchandising
B) nonstore retailing
C) direct selling
D) exchange retailing
E) e-commerce

Question 71

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

A) the National Do Not Call Registry
B) a Green River Ordinance
C) permission-based e-marketing
D) network marketing
E) a party plan system

Question 72

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

A) the party plan system
B) network marketing
C) the pyramid system
D) e-commerce
E) experiential marketing

Question 73

Which of the following is an illegal sales technique?

A) retailtainment
B) a party plan system
C) a multilevel network
D) a pyramid scheme
E) off-price retailing

Question 74

Another name for multilevel marketing is ________.

A) integrated marketing
B) network marketing
C) the pyramid system
D) the party plan system
E) experiential marketing

Question 75

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

Question 76

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.

A) multilevel marketing
B) integrated sales
C) disintermediated sales
D) hierarchical sales
E) party plan systems

Question 77

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

Question 78

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

Question 79

Compare and contrast specialty stores and convenience stores.

Question 80

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