Question 1

They carry more shopping goods and services such as credit and merchandize-return privileges. Customers need more information and assistance. These are usually features of ________ retailing.

Accepted Answer

A

Question 2

An independent retailer using a central buying organization and joint promotion efforts is known as a

Accepted Answer

A retailer cooperative is a group of independent retailers who band together to set up a central buying organization and conduct joint promotion efforts.

Question 3

Retailers can position themselves as offering one of four service levels. Which of the following is characterized by customers finding their own goods, but able to ask for assistance?

Accepted Answer

Self-selection service level allows customers to find their own goods but provides the option to ask for assistance if needed.

Question 4

Retailing involves getting the goods or services to the ultimate consumer. A ________ is any business enterprise whose sales volume comes primary from retailing.

Accepted Answer

The definition given describes a retailer, thus the correct choice is C. Superstores and wholesalers may also engage in retailing but it is not their primary source of sales volume. Agents and intermediaries do not necessarily depend on retailing for their sales volume.

Question 5

Nonstore retailing falls into four major categories. Which of the following involves telemarketing, television direct-response marketing, and electronic shopping?

Accepted Answer

Direct marketing involves methods such as telemarketing, television direct-response marketing, and electronic shopping.

Question 6

Franchising accounts for more than $1 trillion of annual U.S. sales and nearly one-third of all retail transactions. Franchises are distinguished by three characteristics that are: (1) the franchisee pays for the right to be part of the system: (2) the franchisor provides its franchisees with a system for doing business; and (3)

Accepted Answer

The franchisor owns a trade or service mark and licenses it to franchisees in return for royalty payments. This is the third characteristic that distinguishes franchises. Option A is incorrect as it only mentions the franchisee's payment for the right to belong, but not about the franchisor receiving a percentage of sales. Option B is incorrect as it suggests that the franchisor controls all actions of the franchisee, which is not entirely true. Option D is incorrect as the franchisee must follow the established system provided by the franchisor. Option E is incorrect as the franchisor usually has control over the marketing plan.

Question 7

In your restaurant you offer a wide variety of dishes and are open for breakfast, lunch, and dinner. In terms of product assortment, you can claim that your restaurant has a product-assortment that has a large

Accepted Answer

"Breadth and depth" refers to the variety of different products (breadth) and the number of options within each product category (depth). Since the restaurant offers a wide variety of dishes for breakfast, lunch, and dinner, it has both breadth and depth in its product assortment.

Question 8

After deciding on the product-assortment strategy, the retailer must establish merchandise source, ________, and practices.

Accepted Answer

The retailer must establish policies, which include guidelines and practices for managing the merchandise, after deciding on the product-assortment strategy.

Question 9

Intermediaries include retailers, ________, and logistical organizations.

Accepted Answer

Intermediaries such as retailers, box stores, and internet companies directly sell products to consumers. Manufacturers may sell their products to intermediaries who then sell the products to consumers. Logistical organizations handle transportation and distribution of products. Competitors are not intermediaries, as they are businesses that offer similar products to consumers.

Question 10

Retailers must make marketing decisions in the areas of product assortment and procurement, services and store atmosphere, price, communications, locations and

Accepted Answer

Retailers must make marketing decisions in the areas of product assortment and procurement, services and store atmosphere, price, communications, locations and, most importantly, target market. All other options listed are important considerations as well, but target market is the most essential as decisions in the other areas should be made based on the preferences and needs of the target market.

Question 11

One of the advantages of corporate retailing is that corporate retail organizations achieve economies of scale, greater purchasing power, better-trained employees, and

Accepted Answer

Corporate retail organizations benefit from wider brand recognition due to their larger presence and consistent branding across multiple locations.

Question 12

A retailer that has salespeople ready to assist in every phase of the locate-compare-select process for the shopper, that has high staffing, and high specialty goods would be considered a ________ retailer.

Accepted Answer

The retailer described in the question has salespeople ready to assist in every phase of the locate-compare-select process, indicating full service. Additionally, the high staffing and specialty goods also suggest a full-service approach.

Question 13

You have ideas of owning a Subway after graduation. In owning a Subway location, you are entering a ________ agreement.

Accepted Answer

Owning a Subway location as described in the question suggests that the individual is becoming a franchisee of the Subway franchise system, making E the best choice as a franchisee is a person who is granted the right to operate a business using the franchisor's trademark, products, and business system.

Question 14

In the pursuit of higher sales volume, retailers are studying their store environments for ways to improve the shopper's experience. According to Paco Underhill, one of his suggestions for fine-tuning retail space is to

Accepted Answer

Honoring the "transition zone" and allowing the shopper time to "sort out" the stimuli can improve the shopper's experience and lead to higher sales volume. This means giving shoppers a clear and uncluttered entryway to the store, as well as an open space between the entrance and key displays or departments, where customers can adjust to the new environment and pause to get their bearings before moving deeper into the store. This can reduce the overwhelming feeling some shoppers experience and create a more relaxed and pleasurable shopping experience.

Question 15

The retailer must decide on product-assortment breadth and

Accepted Answer

Product-assortment breadth refers to the variety of product categories or types that a retailer offers. Depth, on the other hand, refers to the variation within a category. Since the question is asking about breadth, the best choice is C, which refers to the variety of product categories that the retailer will carry.

Question 16

Retailers are rapidly improving their skills in demand forecasting, merchandise selection, stock control, space allocation, and

Accepted Answer

Display is a critical aspect of retail operations, as it directly influences how products are presented to customers, impacting sales and customer experience.

Question 17

Which of the following major retailer types is characterized by a narrow product line?

Accepted Answer

A specialty store is characterized by a narrow product line, often offering a specific type of product or serving a particular customer segment. Catalogue showrooms offer a wide range of products from different categories, off-price retailers offer a broad but limited merchandise selection, discount stores offer a variety of products at lower prices, and superstores offer a wide and deep assortment of merchandise.

Question 18

One-on-one selling firms like Avon, Electrolux, and Mary Kay are examples of the type of retailing that has been growing much faster than traditional brick-and-mortar retailers have. To which of the following types of retailing is this referring?

Accepted Answer

One-on-one selling firms like Avon, Electrolux, and Mary Kay are examples of direct selling, also known as direct selling or network marketing. This type of retailing involves selling products directly to individuals through personal contacts and relationships, rather than through traditional retail stores.

Question 19

Some intermediaries use strategic planning, advanced information systems, sophisticated marketing tools, measure performance on a return-on-investment basis, segment their markets, improve their target marketing and positioning, and

Accepted Answer

The sentence mentions intermediaries using strategies such as advanced information systems, marketing tools, and target marketing. These actions indicate that the intermediaries are aggressively pursuing market expansion and diversification strategies. The other options, such as contending with dwindling customer bases or squeezing manufacturer margins, are not mentioned in the sentence.

Question 20

You and your best friend are considering opening a retail store. You have identified your target market and location. Now you must decide on the format. You are pressing for a store that offers leftover goods, overruns and irregular merchandise sold at less than full retail. This is a description of a(n) ________ retailer.

Accepted Answer

The description of offering leftover goods, overruns, and irregular merchandise sold at less than full retail fits the definition of an off-price retailer. This format differs from a discount store, which typically offers new and current merchandise at lower prices. Superstores, self-service, and limited service are not specific enough to describe the format being proposed.

Quiz 16: Managing Retailing, Wholesaling, and Logistics