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

Question 1

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

Answer 1

A

Question 2

In retailing, 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

Answer 2

E

Question 3

________ 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) Leased departments

Answer 3

B

Question 4

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 5

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 6

Which of the following types of retailers places 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 7

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 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

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 10

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 11

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 12

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 arrange with a(n) ________.

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

Question 13

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 14

________ 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 15

________, 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 16

Briefly explain the wheel-of-retailing concept.

Question 17

Which type of retailer is most likely to require customers to perform their own product selection and require customers to handle their own checkout process?

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

Question 18

The wheel-of-retailing hypothesis can be used to explain the development and evolution of all forms of retailing.

Question 19

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 20

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) extreme-value food retailer
C) specialty store
D) variety store
E) leased department

Question 21

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) pop-up stores
E) hypermarkets

Question 22

GameStop sells video games and systems, offering a narrow product line with a deep assortment within that line. GameStop is a(n) ________.

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

Question 23

Which of the following is a discount retailer owned by a manufacturer that provides the manufacturer with 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 24

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) consignment stores
E) pop-up stores

Question 25

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 26

Which of the following is NOT true about warehouse clubs?

A) They are 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 followed the pattern set forth by the wheel-of-retailing hypothesis.

Question 27

In response to the growth of category killers, department stores have focused more on marketing hard goods and have placed less emphasis on soft goods.

Question 28

Resale stores are primarily ________ and ________.

A) convenience stores; pop-up stores
B) extreme-value retailers; thrift stores
C) warehouse clubs; consignment stores
D) leased departments; pop-up stores
E) consignment stores; thrift stores

Question 29

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

A) convenience store
B) extreme-value retailer
C) specialty store
D) variety store
E) leased department store

Question 30

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

A) consignment store
B) department store
C) extreme-value retailer
D) hypermarket
E) factory outlet store

Question 31

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 32

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 33

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 American retailer in the first half of the twentieth century.

Question 34

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 35

At a(n) ________, customers buy most products in larger-than-normal packages and quantities.

A) warehouse club
B) department store
C) factory outlet store
D) leased department store
E) extreme-value retailer

Question 36

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

A) merchandise breadth
B) hard goods
C) merchandise depth
D) bifurcated retailing
E) service assortment

Question 37

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

Question 38

In general, vending machines are best suited for selling which of the following?

A) specialty goods
B) unsought goods
C) capital items
D) food and beverages
E) accessory equipment

Question 39

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) extreme-value retailers

Question 40

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) pop-up stores
E) off-price retailers

Question 41

Experts who predict a trend of destination retail believe that consumers will soon visit retailers more for ________ than for the basic process of purchasing products.

A) information
B) credit services
C) comparison shopping
D) entertainment
E) product returns

Question 42

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) omnichannel marketing
E) e-commerce

Question 43

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 44

Compare and contrast specialty stores and convenience stores.

Question 45

Group dynamics are important to the success of party plan systems.

Question 46

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 47

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 48

Compare and contrast four types of discount stores.

Question 49

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 50

Interactive videos, games, and contests are all ________ strategies that marketers use to engage online shoppers.

A) in-home shopping
B) virtual experiential marketing
C) digitally influenced purchase
D) pop-up marketing
E) shopping cart

Question 51

Retailers may use online liquidators to address the problem of ________.

A) distressed inventory
B) shopping cart abandonment
C) digitally influenced purchase
D) cannibalization
E) pyramid schemes

Question 52

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

Question 53

A customer browses through several online retail sites and examines product descriptions of several different styles and brands of bed linens. The customer then goes to Macy's and purchases a set of flannel sheets that he had read about on another retailer's site. The purchase of this set of flannel sheets is most clearly an example of ________.

A) m-commerce
B) shopping cart abandonment
C) digitally influenced purchasing
D) virtual experiential marketing
E) distressed inventory

Question 54

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 55

Using current sales as a predictor, which of the following products would likely be most effectively sold using direct selling?

A) women's shoes
B) cleaning products
C) baby furniture
D) automobiles
E) pet food

Question 56

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) virtual experiential marketing

Question 57

Which of the following is NOT a benefit provided by e-commerce?

A) It provides consumers the satisfaction of instant gratification.
B) It reduces the cost of doing business.
C) It enables specialized businesses to be more successful.
D) It provides consumers more access to pricing information.
E) It broadens product choices for consumers in smaller communities.

Question 58

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

Question 59

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

Question 60

Another name for multilevel marketing is ________.

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

Question 61

Which of the following is the purpose of omnichannel commerce?

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

Question 62

A marketing strategy that enhances the shopping experience for experiential shoppers, creating excitement and encouraging impulse purchases is called ________.

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

Question 63

Explain the concept of nonstore retailing, giving one example of a well-known product that has been marketed this way.

Question 64

The majority of online shopping trips end in shopping cart abandonment.

Question 65

Explain the differences between multilevel marketing and a pyramid scheme.

Question 66

Bass Pro Shops, a chain of outdoor sports equipment stores, features giant aquariums, waterfalls, trout ponds, archery and rifle ranges, putting greens, and free classes on topics from ice fishing to conservation. Why would a retailer do this?

Question 67

Stores using POS systems may create ________ to keep a running total on sales, returns, and transfers to other stores.

A) digital wallets
B) perpetual inventory unit control systems
C) experiential merchandising
D) proximity marketing
E) e-fencing

Question 68

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

Question 69

Promotional and other e-commerce activities transmitted over smartphones and other mobile devices are referred to as m-commerce.

Question 70

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 re-orders when supplies decline to a certain level

Question 71

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

Question 72

Describe how nonstore retailing has recently grown.

Question 73

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) a POS system
B) proximity marketing
C) e-fencing
D) digital wallets
E) a beacon

Question 74

The only types of retailers that have proven that e-commerce can be profitable are bricks-and-mortar retailers.

Question 75

Explain the limitations for marketers offering e-commerce shopping.

Question 76

Using ________, customers are able to use their smartphones to pay for items without needing cash or a credit card.

A) a digital wallet
B) a booster
C) an automatic ordering system
D) proximity marketing
E) e-fencing

Question 77

Cannibalization is not a concern for traditional retailers who also operate an e-commerce site because the two locations attract completely different markets.

Question 78

Using the strategy of ________, retailers convert shopping from a passive pursuit 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 79

Barnes & Noble has many retail stores as well as a presence on the web. What are the concerns of Barnes & Noble regarding the relationship between the company's store sales and web sales?

Question 80

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