Deck 13: Retailing

Question 1

Harry Rosen is a retail chain of 15 high-end men's clothing stores.A privately owned company,Harry Rosen accounts for 40 per cent of the Canadian market in high-end menswear.The Harry Rosen stores carry the best of the best in menswear in Canada.How is Harry Rosen differentiating itself from other clothing stores?

A)through cultural positioning
B)through specialty retailing
C)through unique products
D)through store location modelling

Answer 1

B
A specialty store is not only a type of store,but also a method of retail operations,specializing in a given type of merchandise with a deep but narrow assortment.Customers are drawn by the assortment,which is highly specialized and more complete than in other types of retail stores.

Question 2

Ansonia owns and operates her own janitorial service,but the establishment is licensed by Maid2Clean.What is Ansonia's cleaning service?

A)a chain store
B)a franchise
C)an independent retailer
D)a licensor

Answer 2

B
Franchises are owned and operated by individuals,but licensed by larger supporting organizations.

Question 3

As a general rule of thumb,what will a retailer with a high gross margin also have?

A)an inventory management system
B)low prices
C)salespeople trained in cross-selling techniques
D)high prices

Answer 3

D
The level of gross margin and the price level generally match.

Question 4

What is the term for large,departmentalized,self-service retailers that specialize in wide assortments of foodstuffs and some nonfood items?

A)supermarkets
B)convenience stores
C)membership wholesale clubs
D)discount stores

Question 5

Which of the following is one way a retail store can be classified?

A)according to its distribution method
B)according to its inventory control
C)according to its product assortment
D)according to its decor and atmosphere

Question 6

Which of the following terms is defined as all activities directly related to the sale of goods and services to the ultimate consumer for personal,nonbusiness use or consumption?

A)wholesaling
B)retailing
C)business
D)distribution

Question 7

Which of the following is the best example of a retailer?

A)the public library
B)a radio station
C)a real estate company
D)an advertising agency

Question 8

Some retail stores are owned and operated as a group by a single organization.Administrative and purchasing tasks are handled by the home office.What are the stores called?

A)home base stores
B)independent retailers
C)franchisees
D)chain stores

Question 9

A manufacturer wants to introduce a line of hand-smocked children's clothing to the growing number of professional women who are now having babies.The least expensive of these outfits will be $75.Which of the following types of stores would most likely support an effective product launch?

A)an off-price retailer
B)a specialty store
C)a full-discount store
D)a warehouse club

Question 10

Who selects the merchandise for a department and is responsible for the promotion and management of the personnel in that department?

A)the buyer
B)the purchasing agent
C)the merchandiser
D)the franchisee

Question 11

The Grape Vine Market is an 18,000-square-foot store offering highly collectible food and wine-along with some other culinary perks,including a cooking school-all in a setting crafted to make shoppers feel comfortable.It stocks more than 5,500 different kinds of wine.From this description,what is Grape Vine Market?

A)a hypermarket
B)a factory outlet
C)a specialty store
D)a department store

Question 12

Around the world,most merchandisers operate one or a few stores in their community,owned by a single person or partnership and not operated as part of a larger retail institution.What are these operators called?

A)independent retailers
B)chain stores
C)franchise outlets
D)specialty clubs

Question 13

Which of the following houses several departments under one roof,carries a wide variety of shopping and specialty goods,and provides a high level of service?

A)a supermarket
B)a specialty store
C)a convenience store
D)a department store

Question 14

This type of retailer concantrates in a given type of merchandise with a deep but narrow assortment.It is not only a type of store,but also a method of retail operations.What is it?

A)a warehouse club
B)a convenience store
C)a specialty store
D)a general store

Question 15

What types of operations are small neighbourhood florists,shoe stores,and ethnic food markets most likely to be?

A)franchise outlets
B)membership clubs
C)chain stores
D)independent retailers

Question 16

Who heads a department in a department store,selects the merchandise mix for that department,and may also choose the promotional devices and personnel for that department?

A)a franchisee
B)a category manager
C)a marketing supervisor
D)a buyer

Question 17

What is the buyer who heads a category in a department store responsible for?

A)the store's exchange and return policies
B)the store's credit policies
C)the merchandise mix in that section
D)the store's advertising program

Question 18

Applying what you have learned about retailing,which type of retail store would typically have the highest labour costs?

A)warehouse club
B)department store
C)off-price retailer
D)discount store

Question 19

Which of the following statements best describes specialty stores?

A)Specialty stores focus only on three or four categories.
B)Specialty stores are not concerned with the distinctiveness of the merchandise or the store's physical appearance.
C)Specialty stores typically avoid price wars.
D)A typical specialty store carries a wider assortment of specialty merchandise than department stores.

Question 20

Which of the following types of retailers has a high gross margin,a narrow product assortment,and a high level of service?

A)drugstore
B)warehouse club
C)convenience store
D)specialty store

Question 21

Home Depot Fuel is the name of a chain of convenience stores owned and operated by The Home Depot.These stores typically sell gas and are located just outside The Home Depot warehouse store.What else can you presume about the Home Depot Fuel convenience stores?

A)They carry a wide assortment of products.
B)They carry a limited line of high-turnover goods.
C)They compete on the basis of low price
D)They carry the same merchandise found in The Home Depot.

Question 22

Which of the following environmental trends is most directly influencing supermarket operations?

A)Regional malls are hosting fewer anchor stores.
B)To make a profit,supermarkets are having to carry products with high gross margins.
C)The number of working women is increasing,and families are eating out more.
D)Consumers are more inclined to pamper themselves.

Question 23

Spar is Ireland's largest supermarket chain.Which of the following is the most likely reason that Spar supermarkets sell all types of foodstuffs as well as nonfood products including a wide range of firearms and gun accessories?

A)consumer demand for one-stop shopping often leads to scrambled merchandising
B)the fulfillment of the wheel of retailing hypothesis
C)repositioning as a discounter
D)growth of convenience merchandising

Question 24

Real Canadian Superstore is a chain of retail outlets in Canada that are described as large,departmentalized,self-service stores that specialize in wide assortments of foodstuffs and limited nonfood items.Real Canadian Superstores would be classified as which of the following?

A)off-price retailers
B)discount stores
C)wholesale clubs
D)supermarkets

Question 25

Which of the following best describes discount stores?

A)They compete on the basis of low prices,high turnover,and high volume.
B)They sell high-priced,low-turnover products.
C)They provide their customers with full service.
D)They compete on the basis of assortment and depth.

Question 26

Glen's Safety First! sells a huge assortment of firefighting and other safety equipment at greatly reduced prices.It offers customers few services and competes on the basis of moderate to low prices on the large quantities of merchandise it stocks.What is Glen's Safety First! an example of?

A)a full-line discount store
B)a specialty discount store
C)a general store
D)a wholesale store

Question 27

Costco,Safeway,Metro,and other supermarket chains offer a variety of nontraditional goods and services such as DVD rental,flower shops,dry cleaning,and banking.What is this practice called?

A)convenience merchandising
B)specialty service
C)trade-up positioning
D)scrambled merchandising

Question 28

Last year,over two million people visited Wine.com and bought 14,000 different fine wines at discounted prices.Wine.com shipped wine to over 100,000 customers generating more than $30 million in sales.Wine.com has since become the most trafficked wine site in the world.As an online retail operation,how would Wine.com correctly be labelled?

A)a full-line discount store
B)a category killer
C)a department store
D)an off-price retailer

Question 29

Why are specialty stores such as Office Depot,Bed Bath & Beyond,and Staples often called category killers?

A)They can destroy the profit potential for a grouping of merchandise for other retailers.
B)They are located at stand-alone sites.
C)They have a broad merchandise mix and shallow assortment.
D)They offer an exclusive category of merchandise.

Question 30

According to your textbook,what is one way supermarkets establish long-term relationships with their customers?

A)avoid any obviously ethnic appeal
B)limit the number of nonfood items carried by the stores
C)create and use loyalty marketing programs
D)create customer correlation studies

Question 31

Wal-mart utilizes a strategy of moderate to low prices on large quantities of products and lower levels of service to stimulate a high turnover of inventory.Wal-mart offers a wide variety of different product lines.What is Wal-mart an example of?

A)mass merchandiser.
B)convenience store.
C)franchising operation.
D)specialty store.

Question 32

The initial attraction of drugstores for consumers was the pharmaceuticals they carried,but now consumers can have their prescriptions filled at mass merchandisers and supermarkets,and through the mail.What have drugstores done to remain competitive?

A)raised their prices
B)taken legal steps to prevent the sale of prescription drugs at supermarkets
C)provided customers with value-added services
D)introduced generic prescription medicines

Question 33

What is the term for a retail operation that has a 90,000-square-foot facility,that houses a florist,baker,bank,craft shop,photo finisher,dry cleaner,and pharmacy under the same roof as grocery and household items?

A)a membership warehouse club
B)a wholesale outlet
C)a supercentre
D)a mass merchandiser

Question 34

These self-service stores carry a limited line of high-turnover,high-priced goods and resemble miniature supermarkets.They are typically located near residential areas and are open long hours,seven days a week.What are they?

A)specialty stores
B)wholesale stores
C)convenience stores
D)factory outlets

Question 35

What is the term for the retailing strategy of using moderate to low prices on large quantities of products and lower service to stimulate a high turnover of inventory?

A)specialty store positioning
B)merchandise positioning
C)the wheel of retailing
D)mass merchandising

Question 36

Which of the following carry a broad assortment of nationally branded hard goods (broader than a department store)and offer customers very limited service?

A)full-line discount stores
B)factory outlets
C)price cut stores
D)specialty supercentres

Question 37

Which of the following retailers compete on the basis of low prices,high turnover,and high volume?

A)convenience outlets
B)discount stores
C)general stores
D)department stores

Question 38

Which of the following are single-line stores that offer a nearly complete selection of one line of merchandise and use self-service,discount prices,high volume,and high turnover of merchandise to their advantage?

A)specialty discount stores
B)factory outlets
C)mass merchandisers
D)membership clubs

Question 39

When supermarkets offer a wide variety of nontraditional goods and services under one roof,what are they engaged in?

A)cross-selling
B)trading up
C)scrambled merchandising
D)cross-docking

Question 40

Why are prices usually higher in convenience stores than in supermarkets?

A)Convenience stores offer a wider variety of products.
B)Convenience stores offer a higher level of customer services.
C)Convenience stores offer better location,longer hours,and faster service.
D)Convenience stores offer higher quality goods.

Question 41

Chez Amie manufactures children's clothing for infants and toddlers.Its sales representatives set up parties at homes of mothers of preschool children so that its sales reps can demonstrate the quality and value of the Chez Amie products.What is Chez Amie using?

A)direct-response marketing
B)personal marketing
C)selling representation
D)direct retailing

Question 42

The Mad Stencilist has decided to demonstrate how to use its products to create custom gift tags on a local television channel and encourage shoppers to call a toll-free number to purchase the merchandise with a credit card.What is this form of retailing called?

A)an in-store electronic shopping experience
B)a shop-at-home network
C)an electronic point of sale
D)a catalogue viewing

Question 43

Jeanette Pelletier has decided to sell a sourcebook of French Canadian suppliers to businesses in predominantly French areas.She plans to call prospective customers and try to sell to them over the phone.Which of the following retailing techniques will Pelletier be using?

A)m-commerce
B)indirect retailing
C)franchising
D)direct-response marketing

Question 44

Which of the following best describes a warehouse membership club?

A)It sells only to ultimate consumers.
B)It is a type of category specialist.
C)It tends to have more educated and more affluent customers than other retail establishments.
D)It has extensive merchandise depth,which it uses to create demographic positioning.

Question 45

Which of the following statements best describes nonstore retailing?

A)The nature of the communications between the retailer and the customer is the same in all forms of nonstore retailing.
B)Nonstore retailing is currently growing faster than in-store retailing.
C)The high growth rate for nonstore retailing is due to the growth of TV home shopping.
D)Nonstore retailing is increasing at a rate lower than in-store retailing.

Question 46

What is the term for a low-profile,yet important,form of retailing in which consumers get products out of machines,and accounts for $60 million worth of sales each year in Canada?

A)automatic vending
B)machine retailing
C)direct marketing
D)robotic purchasing

Question 47

Manufacturers of Pampered Chef kitchen equipment and Longaberger baskets utilize party plan selling.The sales transactions usually occur in a home setting.What is the name for this form of nonstore retailing?

A)direct retailing
B)personal marketing
C)direct-response marketing
D)vending

Question 48

Well-known manufacturers such as Nike,Liz Claiborne,and Mikasa have decided the most profitable way to dispose of out-of-season and irregular stock is to open stores and sell their own merchandise.What type of stores are these?

A)seasonal outlets
B)factory outlets
C)discount stores
D)bargain basements

Question 49

What is the term for an off-price retailer that is owned and operated by a manufacturer and carries one line of merchandise-its own?

A)mass merchandiser
B)factory outlet
C)wholesale club
D)discount store

Question 50

Laura buys supplies for her catering business at a retailer that stocks a limited selection of items,which are sold in bulk on a cash-and-carry basis to those who belong.As she browses through a huge store,she buys flour,a set of muffin pans,and a package of paper towels as well as an assortment of fresh produce.Where is Laura most likely shopping?

A)at an off-price discount retailer
B)at a factory outlet
C)at an industrial supply warehouse
D)at a warehouse membership club

Question 51

Which of the following refers to shopping without visiting a store and is currently growing faster than in-store shopping because of the consumer demand for convenience?

A)nonstore retailing
B)customerization
C)hypershopping
D)virtual buying

Question 52

How can marketers precisely target their customers according to demographics,geographics,and psychographics?

A)with direct mail
B)with vending machines
C)with specialty retail outlets
D)with electronic selling

Question 53

Which of the following sell a limited selection of brand-name appliances,household items,and groceries,usually in bulk on a cash-and-carry basis to those who belong?

A)factory outlets
B)wholesale discounters
C)off-price discount retailers
D)warehouse membership clubs

Question 54

The Cedar Store carries a full line of cedar swings,gliders,garden benches,and tables.All of its products can be purchased through its website.The site has done well since the Cedar Store's products do not need to be touched or smelled before purchase.What is The Cedar Store engaging in?

A)online retailing
B)mobile vending
C)franchising
D)electronic wholesaling

Question 55

A publisher of books on holiday decorating,cooking,and crafts has to find a way to dispose of its overrun and unsold end-of-season output.To whom should the firm sell the remaining merchandise?

A)convenience stores
B)department stores
C)supermarkets
D)off-price discount retailers

Question 56

Techniques used to get consumers to buy from their home include direct mail,catalogues and mail order,telemarketing,and electronic retailing.What is the term for this process?

A)in-home retailing
B)franchising
C)direct marketing
D)direct retailing

Question 57

Telemarketing can consist of either unsolicited outbound sales calls,or calls which allow companies to receive orders through toll-free telephone numbers.These would be classified as which of the following?

A)lead generation calls
B)response calls
C)outbound calls
D)inbound calls

Question 58

Sunni received a phone call last night during supper.The caller wanted her to subscribe to a travel magazine.Since Sunni had never thought of purchasing this type of magazine before she received the call,this is obviously an example of what type of telemarketing?

A)outbound
B)qualifying
C)inbound
D)relationship

Question 59

What is the term for the use of a telephone to sell directly to customers?

A)telemarketing
B)teleprompting
C)indirect marketing
D)phone vending

Question 60

Which of the following best describes off-price retailers?

A)They are often able to take advantage of manufacturers' faulty sales forecasting.
B)They seldom stock brand-name merchandise.
C)They are owned by the manufacturer of the products they sell.
D)They offer very deep assortments.

Question 61

With General Nutrition centre,Uniglobe Travel and Wendy's the franchisee buys the right to use the franchisor's approach to doing business.These would be categorized as which of the following? .

A)product and trade name franchisors
B)redistributor franchisors
C)business format franchisors
D)licensed franchisors

Question 62

With Arby's,Jiffy-Lube,Baskin-Robbins,and Sylvan Learning Centres the franchisee buys the right to use the franchisor's approach to doing business.These are examples of which of the following? .

A)trade name franchising
B)product franchising
C)business format franchising
D)franchise wholesaling

Question 63

When opening a new retail operation,the retailer needs to consider all of the following factors EXCEPT

A)traffic flow
B)employee density
C)nature of the competition
D)land costs

Question 64

Breit Ideas is an online retailer that is licensed to sell products designed by Mary Engelbreit-everything from Christmas ornaments and books to wallpaper and toys.What is Breit Ideas an example of?

A)a product and trade name franchisee
B)a redistributor franchisor
C)a business format franchisee
D)a licensed franchisor

Question 65

The earliest example of the use of franchising occurred in the sale of products to housewives located on the American prairie.In 1851,Isaac Singer sold travelling independent salesmen the rights to sell his sewing machines to end users.What type of franchising was this an example of?

A)business format
B)product and trade name
C)licensed
D)consumer based

Question 66

What is a continuing relationship in which an individual or business grants business rights to operate or sell a product to another individual or business?

A)a leasing contract
B)a brokered partnership
C)a franchise
D)a countertrade

Question 67

Gap,Inc.opened its first freestanding Banana Republic store in Japan in the fall of 2006.Which of the following best describes its freestanding store?

A)It contains merchandise different from that offered in Banana Republic stores in shopping centres.
B)It is not a destination store.
C)It creates greater visibility for the store than it would have in a shopping centre.
D)It is an off-price retailing operation for the store chain.

Question 68

What is the first task of developing a retail strategy?

A)Decide what to buy.
B)Define the target market.
C)Create a promotional strategy.
D)Define the pricing policies.

Question 69

This form of retail location first became popular in the 1950s when the population started migrating to the suburbs.It places a diverse group of retailers together in one location.What is it?

A)a freestanding lifestyle centre
B)a shopping centre
C)a mass merchandising centre
D)a mega-mall

Question 70

Which of the following statements best describes a retailer's promotion strategy?

A)The design of the promotion strategy would be done separately from the creation of the retailing mix.
B)The goal of a retail store's promotion mix is to position the store in consumers' minds.
C)Most advertising for retailers is carried out at the national level.
D)Retail promotion strategy does not include public relations activities.

Question 71

Why is the selection of a retail location so critical to a store's success?

A)Customers will not drive out of their way to find a store.
B)A location decision ties up funds that will not appreciate or gain in value.
C)A location decision typically requires long-term commitment of resources.
D)Employee density is affected by the area in which the store is located.

Question 72

What do large retailers such as Zellers and Walmart and sellers of shopping goods such as automobiles and furniture often use for their locations?

A)remote,rural locations
B)factory outlets
C)freestanding stores
D)regional malls

Question 73

Passport Furniture is a manufacturer of fine home furnishings.It offers to share the costs (up to 5 percent of the amount of products purchased by the retailer)of advertising with any retailer that carries its line of furniture.What would retailers that took advantage of this offer use?

A)specialty promotion
B)cooperative advertising
C)comparative advertising
D)shared advertising

Question 74

Which of the following are stores that consumers plan to visit and are often built as freestanding stores?

A)destination stores
B)drugstores
C)department stores
D)lifestyle stores

Question 75

A retailer in Brandon,Manitoba,is licensed to sell Snapper lawn mowers.What type of retailer is it?

A)product and trade name franchisee
B)redistributor franchisor
C)business format franchisee
D)licensed franchisor

Question 76

Retailers such as Zellers and Sears are responding to consumer needs by changing product mixes,hours of operation,locations,and prices.Which aspects are these stores changing?

A)their merchandising groupings
B)their retailing mixes
C)their product offerings
D)their store positioning strategies

Question 77

Which of the following is NOT a reason that individuals may be tempted to buy a franchise business rather than develop their own independent business?

A)the individual can try his or her own personal innovative product and service ideas in the business
B)to obtain a well-known product or service name
C)management training requirements
D)the business's established image

Question 78

Retailers control the six Ps of the retailing mix.The six Ps include the marketing mix plus which of the following?

A)personnel and presentation
B)production and people
C)personality and persuasion
D)positioning and purchasing

Question 79

The Summer Place has decided consumers will be drawn to its offering of wicker furniture and will even be willing to drive out of their way.The store really needs to keep its overhead costs (such as rent)low and wants to avoid locating near competitors.For a location,what will the Summer Place probably choose?

A)a factory outlet
B)a freestanding store
C)a shopping centre
D)a regional mall

Question 80

Which of the following statements about best describes online retailing?

A)Online retailing is also called e-merchandising.
B)After a rapid increase in sales,the popularity of online retailing has declined over the last decade.
C)Most traditional retailers are using online retailing to move merchandise that can be purchased at their stores.
D)The earliest use of online retailing was for Internet auctions.