Question 1

Banana Republic stores are usually built in shopping centers,but in a few cities the company chose to build a stand-alone store.Its freestanding store entices customers to shop because it _____.
A) contains merchandise different from that offered in other Banana Republic stores
B) is near a shopping center
C) has greater visibility to customers than it would have in a shopping center
D) is an off-price retailing operation for the store chain
E) is most likely a franchise that offers lower prices than the shopping center locations

Accepted Answer

Stand-alone stores often have greater visibility and easier access than in a mall location.

Question 2

Brands that are designed and developed using the retailer's name are called:
A) signature brands
B) exclusive brands
C) generic brands
D) private brands
E) specialty brands

Accepted Answer

Private brands are more profitable for retailers than national brands.

Question 3

Why is the selection of a retail location so critical to a store's success?
A) Location affects pricing decisions but does not affect store image.
B) Customers will not drive out of their way to find a store.
C) A location decision ties up funds that will not appreciate or gain in value.
D) A location decision typically requires long-term commitment of resources.
E) Employee density is affected by the area in which the store is located.

Accepted Answer

One critical point about location choice is that it ties up a large amount of resources and is difficult to change.

Question 4

Which of the following statements about a retailer's promotion strategy is true?
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) Retailers find direct-mail marketing inefficient.
E) Retail promotion strategy does not include public relations activities.

Accepted Answer

Promotion is part of the retailing mix and includes advertising,public relations and publicity,and sales promotions.Most advertising for retailers is carried out at the local level.Retailers have been very successful with direct marketing.

Question 5

Retailers control the six Ps of the retailing mix.The six Ps include the marketing mix plus:
A) personnel and presentation
B) production and people
C) potential and perception
D) personality and persuasion
E) positioning and purchasing

Accepted Answer

The six Ps of the retailing mix include product, place, price, promotion, personnel, and presentation. So, option A is the correct answer.

Question 6

Lancôme is a manufacturer of fine perfumes.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 fragrances.This is an illustration of:
A) specialty promotion
B) cooperative advertising
C) comparative advertising
D) shared advertising
E) advertising advocacy

Accepted Answer

Cooperative advertising is a collaborative effort in which both the retailer and the manufacturer share the costs and benefits.

Question 7

When JCPenney announced it would open a 97,000-plus square foot anchor store in the new West Grand Promenade,it meant that JCPenney would be:
A) the only large store in the shopping center
B) a destination store
C) expected to create heavy foot traffic for the center
D) in an isolated location outside the shopping center structure
E) unable to control the local store's pricing policies

Accepted Answer

There is typically more than one anchor store in any mall.Freestanding stores are destination stores.

Question 8

_____ are stores that consumers purposely plan to visit.They are often built as freestanding stores.
A) Destination stores
B) Benefit retailers
C) Relationship builders
D) Lifestyle stores
E) M-stores

Accepted Answer

Consumers seek out destination stores.

Question 9

Maggie Moo's has decided that consumers will drive out of their way for the store's yummy ice cream offerings.The owner needs to keep his overhead costs (such as rent)low and wants to avoid locating near competitors.For a location,Maggie Moo's should open in a:
A) factory outlet
B) strip center
C) freestanding store
D) shopping center
E) regional mall

Accepted Answer

A freestanding store has the advantage of low site costs and will be a benefit if consumers are willing to seek it out.

Question 10

Retailers such as Target and JCPenney are responding to consumer needs by changing product mixes,hours of operation,locations,and prices.These stores are changing aspects of their:
A) merchandising groupings
B) retailing mixes
C) product offerings
D) retail trade areas
E) store positioning strategies

Accepted Answer

Retailers are altering several aspects of the six Ps of the retailing mix.

Question 11

The only place the Hampton Bay ceiling fans can be purchased is at The Home Depot.The Home Depot has instructed Hampton Bay on how the ceiling fans should be built.This indicates that Hampton Bay is a:
A) private brand
B) generic brand
C) family brand
D) promotional brand
E) specialty brand

Accepted Answer

Private brands are those brands that are designed and developed using the retailer's name.

Question 12

The newest generation of shopping centers is:
A) regional malls
B) shopping business districts
C) lifestyle centers
D) franchised centers
E) strip malls

Accepted Answer

Lifestyle centers are open-air shopping centers targeted to upper-income shoppers with an aversion for the "the mall" and seek to create an atmosphere that is part neighborhood park and part urban shopping center.

Question 13

Another name for an anchor store is a _____.
A) mass merchandiser
B) generator store
C) host store
D) shopping center pillar
E) destination store

Accepted Answer

Anchor stores or generator stores are usually located at opposite ends of the mall to create heavy foot traffic.

Question 14

A specialty store is considering locating a retail store in a regional shopping mall.Which of the following is NOT a likely benefit associated with a locating in a mall?
A) anchors that attract customers
B) ample parking
C) unified image of mall
D) ability to target different demographics groups
E) inexpensive leases

Accepted Answer

Leases are usually expensive.

Question 15

A recent pricing trend among retailers is EDLP,which stands for:
A) electronic data laser purchasing
B) efficient data long-range planning
C) everyone doing large purchases
D) everyday low pricing
E) efficient dollar loss planning

Accepted Answer

Everyday low pricing,EDLP,offers consumers a low price all the time rather than holding periodic sales on merchandise.

Question 16

Which group is the targeted market by lifestyle centers?
A) teenagers who don't drive
B) consumers on a fixed income
C) laggards
D) upper-income consumers with an aversion for "the mall"
E) people who engage in cocooning

Accepted Answer

Some lifestyle centers even include luxury apartments and condominiums for this target market.

Question 17

Anchor stores (or generator stores):
A) are the stores within the mall that sell services rather than products
B) are often large department stores that are located at opposite ends of a mall to create a heavy pedestrian traffic flow
C) usually specialize in high-priced items like furniture
D) is the generic name given to supermarkets that are located within shopping malls
E) is a term for retail stores that "drop off" to freestanding locations

Accepted Answer

Anchors are the large stores at the ends of shopping malls and may sell a variety of products

Question 18

The merchandise mix:
A) is the term used for price-bundled merchandise
B) is the term for the marketing communications used by retailers
C) refers to the six levels in a buying organization
D) describes the composition of a traditional shopping center
E) is the retailer's product offering

Accepted Answer

The retailer's product offering is the mix of products offered to the consumers,also called the product assortment or merchandise mix.

Question 19

Large retailers such as Target and Wal-Mart and sellers of shopping goods such as automobiles and furniture often use _____ for their locations.
A) remote,rural locations
B) office complexes
C) factory outlets
D) freestanding stores
E) regional malls

Accepted Answer

Freestanding stores are often used by large retailers.

Question 20

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
E) area growth

Accepted Answer

Employee density is concerned with the amount of employees per 1,000 square feet in the store--not in the neighborhood.The other four factors are to be considered when deciding on a location.

Quiz 13: Retailing

Banana Republic stores are usually built in shopping centers,but in a few cities the company chose to build a stand-alone store.Its freestanding store entices customers to shop because it _____.

Brands that are designed and developed using the retailer's name are called:

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

Which of the following statements about a retailer's promotion strategy is true?

Retailers control the six Ps of the retailing mix.The six Ps include the marketing mix plus:

Lancôme is a manufacturer of fine perfumes.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 fragrances.This is an illustration of:

When JCPenney announced it would open a 97,000-plus square foot anchor store in the new West Grand Promenade,it meant that JCPenney would be:

_____ are stores that consumers purposely plan to visit.They are often built as freestanding stores.

Maggie Moo's has decided that consumers will drive out of their way for the store's yummy ice cream offerings.The owner needs to keep his overhead costs (such as rent) low and wants to avoid locating near competitors.For a location,Maggie Moo's should open in a:

Retailers such as Target and JCPenney are responding to consumer needs by changing product mixes,hours of operation,locations,and prices.These stores are changing aspects of their:

The only place the Hampton Bay ceiling fans can be purchased is at The Home Depot.The Home Depot has instructed Hampton Bay on how the ceiling fans should be built.This indicates that Hampton Bay is a:

The newest generation of shopping centers is:

Another name for an anchor store is a _____.

A specialty store is considering locating a retail store in a regional shopping mall.Which of the following is NOT a likely benefit associated with a locating in a mall?

A recent pricing trend among retailers is EDLP,which stands for:

Which group is the targeted market by lifestyle centers?

Anchor stores (or generator stores) :

The merchandise mix:

Large retailers such as Target and Wal-Mart and sellers of shopping goods such as automobiles and furniture often use _____ for their locations.

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