Question 1

Figure 15-5
 
-Which of the following stores would best fit in quadrant "A" shown in Figure 15-5?

Accepted Answer

Walmart fits best in quadrant "A" because this quadrant typically represents stores that focus on offering lower prices and high volume, which aligns with Walmart's business model of providing a wide range of products at low prices to attract a large customer base.

Question 2

Direct selling is likely to continue to grow in markets:

Accepted Answer

Direct selling is likely to grow in markets where there is a lack of effective distribution channels. This is because, in such markets, direct selling provides an efficient and cost-effective way for companies to reach consumers. In contrast, in markets with effective distribution channels, direct selling may not be as necessary or appealing to consumers.

Question 3

Figure 15-5
 
-Which of the following stores would best fit in quadrant "B" shown in Figure 15-5?

Accepted Answer

The answer of Figure 15-5
 
-Which of the following stores...

Question 4

Figure 15-5
 
-Which of the following stores would best fit in quadrant "C" shown in Figure 15-5?

Accepted Answer

Quadrant C represents a low market share and a low market growth rate. Payless ShoeSource is a discount footwear retailer, which is likely to have a low market share in the industry and operate in a low-growth market. Therefore, it is the best fit for this quadrant. Bergdorf Goodman and Dillard's are both department stores that offer luxury and high-end products, so they are less likely to fit in quadrant C. Kmart is a discount department store that offers a wide range of products, including apparel, home goods, and electronics, so it may not align perfectly with the shoe industry, which is targeted by quadrant C.

Question 5

One of the reasons given for the failure of the hypermarket concept in North America is an inability to locate the stores at the most visible and accessible sites. All the best locations were already occupied by Walmart, category killers, and other retail outlets. In terms of the retailing mix, hypermarkets had a problem with their:

Accepted Answer

The passage explicitly states that one reason for the failure of hypermarkets in North America is an inability to locate the stores at the most visible and accessible sites. This indicates that store location was a problem for hypermarkets. The other choices - price, discounts and allowances, and communications - are not mentioned as factors contributing to the failure of hypermarkets in the passage.

Question 6

One of the key challenges for retailers when embracing mobile technology is:

Accepted Answer

Privacy and security are a major concern for retailers when it comes to mobile technology, especially with the increasing frequency of data breaches and cyber attacks. Retailers need to ensure that their customers' personal and financial information is secured when they use their mobile devices for transactions, and that their privacy is respected at all times. Proper security measures, such as encryption and two-factor authentication, must be put in place to protect against potential threats.

Question 7

When developing marketing strategies, marketing managers use the elements of the marketing mix, which includes product, price, place, and promotion. The marketer can effectively control these elements to develop marketing strategies and to change those strategies in response to environmental changes. In a similar fashion, when developing retailing strategies, marketers use what is called the retailing mix, which includes:

Accepted Answer

The retailing mix includes merchandise, store location, pricing, and communications. While store location and merchandise are common elements in both marketing mix and retailing mix, the other two elements are different. Personal selling and product are elements of the marketing mix that are not part of the retailing mix. Therefore, option C is the best choice.

Question 8

To successfully position a store, it:

Accepted Answer

The key to successfully positioning a store is to have an identity that sets it apart from competitors and is valued by consumers. This can be achieved through a unique brand image, high-quality products or services, exceptional customer service, or some other advantage that appeals to the target market. The other options presented (B, C, and D) are not necessarily prerequisites for successful store positioning.

Question 9

The goods and services mix, the physical distribution mix, and the communication mix chosen by a store are known collectively as the:

Accepted Answer

The goods and services mix, physical distribution mix, and communication mix are all factors that go into creating the overall retailing mix of a store. This mix includes all of the strategic decisions made by a retailer to create a unique and appealing shopping experience for customers. The wheel of retailing and consumer-retailer matrix are both concepts related to the overall evolution and development of retailing over time, but do not specifically refer to the mix of elements that make up a retailer's strategy. The distribution mix, while important, only addresses one part of the overall retailing mix.

Question 10

A retailer bought a pair of designer eyeglass frames for $16. She sets the initial selling price at $48 dollars. The final selling price was $34. What was the original markup?

Accepted Answer

The original markup is the difference between the initial selling price and the cost price, which is $48 - $16 = $32. Therefore, the correct answer is C.

Question 11

Which of the following is NOT an element of the retailing mix?

Accepted Answer

The elements of the retailing mix include communications, goods and services, physical distribution, pricing, and store layout and design. Segmentation is a marketing strategy used to divide a market into smaller groups of consumers with similar needs or characteristics. While segmentation is an important component of a retailer's marketing strategy, it is not considered an element of the retailing mix.

Question 12

Loblaws, a Canadian supermarket, features fruits and vegetables piled high on tables which have umbrellas. The idea behind this arrangement was to give Loblaws "a market feel." In terms of the retailing mix, this tactic was concerned with:

Accepted Answer

The answer of Loblaws, a Canadian supermarket, features fruits and...

Question 13

Dillard's and Parisian's are two department store chains that have high value added and broad product lines. They pay close attention to store design and product lines. Merchandise in these stores often has a high margin of profit and is of high quality. Such stores typically provide:

Accepted Answer

The passage states that these department store chains pay close attention to store design and product lines, and that merchandise in these stores often has a high margin of profit and is of high quality. These factors suggest that the stores provide high levels of service.

Question 14

Toronto-based Whole Foods supermarkets targets people who want to eat healthy. The stores use placards throughout, which tell shoppers about the farmers who grew and harvested various products. This use of signage to provide consumer information is a part of which element of the retailing mix?

Accepted Answer

The use of signage to provide consumer information is a part of the communications mix, which involves all the methods and tools used by a retailer to communicate with customers about its products and services.

Question 15

One dimension of the retail positioning matrix is value added, and the other is:

Accepted Answer

The other dimension of the retail positioning matrix is breadth of product line. The matrix is used to determine a retailer's position in the market based on these two dimensions: value added (which reflects the level of service and benefits provided to customers) and breadth of product line (which reflects the variety and depth of products offered). The other options (relative market share and revenue generated) are not dimensions of the matrix.

Question 16

Figure 15-5
 
-Which of the following stores would best fit in quadrant "D" shown in Figure 15-5?

Accepted Answer

Quadrant D represents stores with high-price points and high-quality products. Birks, a luxury jewelry retailer, would be the best fit for this quadrant.

Question 17

You are developing a retailing strategy for a new women's clothing store. Your strategy should consider each of the following EXCEPT:

Accepted Answer

Selecting suppliers who offer volume and seasonal discounts is important for the store's operations, but it is not directly related to developing a retailing strategy that differentiates it from competitors, corresponds to the neighbourhood, and positions the store based on its product line and value added.

Question 18

The pricing manager for Loblaws tries to ensure that the difference between their selling price and the price the manufacturer charges them is at least ten percent of the manufacturer's price. This is referred to as the:

Accepted Answer

The answer of The pricing manager for Loblaws tries to...

Question 19

As a Marketing Analyst for Rona, your manager asked you to complete a competitive overview where you looked at other retail outlets, their breadth of product lines, and any value-added services offered. Essentially, your manager is asking you to complete a:

Accepted Answer

A retail positioning matrix is a tool that allows companies to plot their own position against their competitors on a visual map. This helps to identify areas of potential differentiation, as well as opportunities to emphasize areas where the competition is weaker. A market-product grid is used to identify the various market segments and product offerings available to a company. A BCG growth share matrix is used to classify a company's products into four categories based on their market share and growth potential. A payoff table is a tool used in decision making to compare the potential outcomes of different choices. None of these tools are specifically designed for a competitive overview of retail outlets.

Question 20

Markup is:

Accepted Answer

Markup refers to the amount added to the cost the retailer paid for a product to reach the final selling price.

Quiz 15: Retailing

Figure 15-5 -Which of the following stores would best fit in quadrant "A" shown in Figure 15-5?