Question 1

Which of the following is True of the career opportunities offered by the retailing industry?

Accepted Answer

Retail managers are often given considerable responsibility early in their careers. Retail management is also financially rewarding.

Question 2

Retailers use customer transaction data to do all of the following except

Accepted Answer

Many retailers now use the data they have on their customers to identify their best customers and target customized promotions to them, place products close to each other when they find that many customers are buying the same products at the same time, and tailor the assortment of products in each store to better match the needs of the store's local market.

Question 3

A retailer's primary competitors are other retailers that

Accepted Answer

The competition between the same type of retailers is called intratype competition. A retailer's primary competitors are other retailers that use the same retail approach.

Question 4

When Austin saw pastries and coffee being sold at his local bookstore, he knew it was an example of

Accepted Answer

Scrambled merchandising occurs when retailers offer merchandise not typically associated with their type of store.

Question 5

Daily Needs and Smart Saves are two large retailers in Canada. They compete with each other using similar marketing strategies. Which form of competition is seen between these two retailers?

Accepted Answer

A retailer's primary competitors are other retailers that use the same retail approach. The competition between the same type of retailers is called intratype competition.

Question 6

Which of the following does not describe the distribution systems of the major international markets?

Accepted Answer

Restrictions on retail locations, store size, and ownership are extensive in northern Europe and India. They are minimal in the U.S. and modest in China.

Question 7

________ are the most concentrated sector of the retail industry in the U.S.

Accepted Answer

Home improvement centers in particular are highly concentrated; the two largest firms (Home Depot and Lowe's) account for 45.6 percent of U.S. market share.

Question 8

________ form a part of the microenvironment that influences retail management decisions.

Accepted Answer

The retailer's microenvironment focuses specifically on its competitors and customers.

Question 9

Prime Industries Inc. is a large company producing a wide range of chemicals. It decides to focus on making its products more environmentally friendly. This is an example of

Accepted Answer

Conscious marketing entails a sense of purpose for the firm higher than simply making a profit by selling products and services. One of the principles of conscious marketing is recognition of the retailing firm's great purpose, such as making strides toward more environmentally friendly products.

Question 10

The offering of merchandise not typically associated with the store type is called

Accepted Answer

Scrambled merchandising is when retailers offer merchandise not typically associated with their type of store.

Question 11

Which of the following is the first step in the retail management decision process?

Accepted Answer

The first step in the retail management decision process is understanding the world of retailing. Retail managers need to know the environment in which they operate before they can develop and implement effective strategies.

Question 12

Students often view retailing as part of marketing because

Accepted Answer

Students often view retailing as part of marketing because managing distribution (place) is one of the 4 Ps of marketing.

Question 13

Which of the following is True of retailing activities in the bottom of the pyramid (BoP) market?

Accepted Answer

It is difficult to communicate and complete transactions with people in the BoP market because they are more likely to lack access to mass media, the Internet, mobile phones, or credit cards than more affluent markets.

Question 14

When a firm's leaders adopt a conscious marketing approach

Accepted Answer

A conscious marketing approach implies that the firm's leaders are dedicated to the proposition of being conscious at all levels of the business, throughout its entire culture. The resulting conscious corporate culture stays in line with its higher purpose and in accordance with the leader's ideals.

Question 15

Scrambled merchandising increases

Accepted Answer

Scrambled merchandise is offering merchandise not typically associated with the store type, and it increases intertype competition or competition between retailers that sell similar merchandise using different types of stores.

Question 16

Which of the following is an example of a decision that involves business ethics?

Accepted Answer

Business ethics is concerned with distinguishing between right and wrong actions and decisions that arise in a business setting, according to broad and well-established moral principles. Retail managers may have to ask themselves: Should retail salespeople use a high-pressure sales approach when they know the product is not the best for the customer's needs?

Question 17

Happy Kids clothing store started a program where customers could bring in gently used clothing for donation to a local shelter for women and children. This is an example of which principle of conscious marketing?

Accepted Answer

When a retailer recognizes that its purpose should be more than just making profits the actions it undertakes change in focus. By taking action to help local children in need, Happy Kids is engaged in conscious marketing.

Question 18

The competition between the same type of retailers is called

Accepted Answer

The competition between the same type of retailers is called intratype competition.

Question 19

________ describes the voluntary actions taken by a company to address the ethical, social, and environmental impacts of its business operations and the concerns of its stakeholders.

Accepted Answer

Corporate social responsibility (CSR) involves an organization voluntarily engaging in business practices that meet or exceed the ethical and legal expectations of its stakeholders-its employees, customers, community, and society in general.

Question 20

Karen's is a popular clothing store in Boston. The store recently started selling designer watches. Thus, Karen's is practicing

Accepted Answer