Question 1

Which of the following allows direct mailers from a manufacturing company to pick out (based on data analytics of census data,lifestyle patterns,financial information,and past purchase and credit history)those most likely to buy its products?

Accepted Answer

Microtargeting involves analyzing various data sources to identify and target specific individuals or groups who are most likely to be interested in a product or service, making it suitable for direct mail campaigns.

Question 2

The Hunt,a liquor store,is famous for its unique and extensive collection of alcoholic beverages.Its employees possess up-to-date knowledge of the liquor available in the store,which allows them to assist customers in their purchasing decisions.The Hunt is an example of a _____.

Accepted Answer

The Hunt is a specialty store because it specializes in a particular type of product, alcoholic beverages.

Question 3

Specialty stores such as Best Buy,Staples,and GameStop have the thinnest product assortments,usually carrying single or narrow product lines that are considerably deep.Specialty stores compete on the basis of low prices,high turnover,and high volume.

Accepted Answer

Specialty stores typically compete on the basis of specialized product offerings, expert knowledge, and customer service, rather than low prices, high turnover, and high volume.

Question 4

Many drugstores also carry an extensive selection of cosmetics,health and beauty aids,seasonal merchandise,greeting cards,toys,and some non-refrigerated convenience foods.

Accepted Answer

Many drugstores have diversified their offerings beyond pharmaceuticals to include a variety of products such as cosmetics, health and beauty aids, and other convenience items to cater to a wider range of customer needs.

Question 5

A _____ is a discount store that carries a vast depth and breadth of product within a single product category.

Accepted Answer

The answer of A _____ is a discount store that...

Question 6

Microtargeting is an effective tool for online retailing.

Accepted Answer

Microtargeting allows online retailers to deliver personalized marketing messages to specific segments of their audience, increasing the likelihood of engagement and conversion.

Question 7

Among department stores,specialty stores,drugstores,and convenience stores,the gross margin is highest for specialty stores.

Accepted Answer

Specialty stores often have higher gross margins due to their focus on niche markets and unique products, allowing them to charge premium prices.

Question 8

_____ is a form of nonstore retailing that uses machines to sell its goods.

Accepted Answer

Automatic vending is a form of nonstore retailing that uses machines to sell its goods.

Question 9

In a franchise,a franchisor pays a franchisee for the right to use its name,product,and methods of operation.

Accepted Answer

In a franchise, a franchisee pays a franchisor for the right to use its name, product, and methods of operation, not the other way around.

Question 10

Unlike supermarkets,convenience stores:

Accepted Answer

Convenience stores carry a limited line of high-turnover convenience goods, focusing on quick and easy access to essential items.

Question 11

Social networking sites such as Facebook,Instagram,and Twitter enable users to immediately purchase items recommended by their social connections,a phenomenon known as ______.

Accepted Answer

Social shopping refers to the use of social networking sites to facilitate the buying and selling of products, often influenced by recommendations from social connections.

Question 12

In-store retailing adds a level of convenience for customers who wish to shop from their current locations.

Accepted Answer

In-store retailing requires customers to physically visit the store, which does not allow them to shop from their current locations.

Question 13

With fewer loyal customers and a low customer penetration,the shop-at-home industry has shrunk over the years.

Accepted Answer

The answer of With fewer loyal customers and a low...

Question 14

Delta Graphics Inc.specializes in publishing educational books.It recruits and trains college students to sell its products door-to-door.Which of the following forms of nonstore retailing is illustrated in this scenario?

Accepted Answer

The scenario describes a situation where sales are made directly to consumers at their homes, which is characteristic of direct retailing.

Question 15

Berkley's Nooks are a self-service chain of service stations with stores that are located near residential areas.They are open long hours and offer fast service in exchange for charging premium prices.Their customers are beginning to demand more from them,such as higher quality food and lower prices on staple items such as gasoline and milk.Which type of retailers are Berkley's Nooks?

Accepted Answer

Berkley's Nooks are convenience stores as they are self-service, located near residential areas, open long hours, and offer fast service with premium prices.

Question 16

Which of the following represents the thinking behind single-line specialty discount stores such as Foot Locker?

Accepted Answer

They offer a nearly complete selection of merchandise within a single product category and use self-service, discount prices, high volume, and high turnover to their advantage.

Question 17

Which of the following describes vending as a nonstore option?

Accepted Answer

Automatic vending machines can be used to sell a variety of products, including luxury items like champagne, especially in urban areas where convenience is valued.

Question 18

Around the world,most retailers are independent,with each owner operating a singular store within a local community.

Accepted Answer

Most retailers globally are small, independent businesses that operate a single store, often serving local communities, rather than being part of large chains or franchises.

Question 19

A restaurant has a narrow product assortment and its level of service,price,and gross margin all range between low and high.

Accepted Answer

A narrow product assortment means the restaurant offers a limited range of products, but this does not inherently dictate the level of service, price, or gross margin, which can vary independently.

Question 20

Unlike nonstore retailing,in-store retailing enables customers to shop without visiting a physical store location.

Accepted Answer

In-store retailing requires customers to visit a physical store location to make purchases, whereas nonstore retailing allows shopping without visiting a physical store.

Quiz 14: Retailing

Which of the following allows direct mailers from a manufacturing company to pick out (based on data analytics of census data,lifestyle patterns,financial information,and past purchase and credit history) those most likely to buy its products?