Question 1

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.

Question 2

Service quality is a priority in service industries because they are so customer oriented.

Accepted Answer

Service industries rely heavily on the satisfaction and loyalty of their customers, which is why ensuring high service quality is paramount for their success.

Question 3

Determining a target market is optional while creating the retailing mix.

Accepted Answer

Determining a target market is a crucial step in creating a successful retailing mix as it helps in understanding the needs and preferences of the customers, creating products and services accordingly, and positioning them effectively in the market.

Question 4

The use of mobile devices and social media while browsing, comparison shopping, and making a purchase limits retailers from accessing any useful information about their customers, thereby giving retailers no concrete way to appeal to shoppers.

Accepted Answer

Retailers can access valuable data from mobile devices and social media, such as browsing history, preferences, and purchase behavior, which can be used to tailor marketing strategies and enhance customer engagement.

Question 5

Redoubt Nation, a specialty store that sells adventure sports gears, employs one salesperson per customer. Each salesperson is required to influence customers to purchase items related to the products they have purchased. In this scenario, Redoubt Nation is using _____ as its marketing strategy.
A)low employee density
B)suggestion selling
C)merchandise type
D)trading up

Accepted Answer

Redoubt Nation is using suggestion selling as its marketing strategy by employing one salesperson per customer who is required to influence customers to purchase items related to the products they have purchased.

Question 6

Specialty stores compete on the basis of low prices, high turnover, and high volume.

Accepted Answer

Specialty stores usually compete on the basis of providing unique and high-quality products, superior customer service, and a tailored shopping experience. They may have higher prices, lower turnover, and lower volume compared to general merchandise stores that compete on low prices and high volume.

Question 7

Target markets in retailing are often defined by demographics, geographic boundaries, and psychographics.

Accepted Answer

Target markets in retailing can be segmented based on demographics (age, gender, income), geographic boundaries (region, city, neighborhood), and psychographics (lifestyle, interests, values).

Question 8

Suggestion selling by sales or service associates should always help shoppers recognize true needs rather than sell them unwanted merchandise.

Accepted Answer

Suggestion selling should aim to fulfill the customer's genuine needs and provide them with solutions that add value. This approach builds long-term trust and customer satisfaction, leading to repeat business and positive referrals. Pushing unnecessary or unwanted merchandise may result in short-term gains but can ultimately harm the customer relationship and damage the company's reputation.

Question 9

Shopper marketing is responsible for the decline of the partnership trend between brand manufacturers and specific retailers.

Accepted Answer

The answer of Shopper marketing is responsible for the decline...

Question 10

Establishing channel-wide network coherence is a key factor in maintaining service quality.

Accepted Answer

Achieving coherence throughout the network enhances the efficiency of operations within the network, which ultimately results in maintaining high-quality services.

Question 11

Salespeople should practice trading-up techniques, whether customers need those products or not, to increase overall product sales.

Accepted Answer

Salespeople should focus on selling products that meet the customer's needs and provide value, rather than trying to sell higher-priced items that the customer doesn't need or want. This approach builds trust and loyalty with the customer, leading to repeat business and positive referrals.

Question 12

Since retail prices are usually based on the cost of the merchandise, an essential part of pricing is efficient and timely buying.

Accepted Answer

Retail prices are commonly determined based on the cost of goods. Therefore, efficient and timely purchasing is a critical aspect of pricing strategy.

Question 13

Customers are always skeptical about the reasons for retailer errors, however, their reactions to mistakes such as product stockouts and unexpectedly poor quality products are limited to casual indifference.

Accepted Answer

Customers are not always casually indifferent to retailer errors. They can be reactive and express dissatisfaction or even switch to a competitor.

Question 14

Higher prices often indicate a level of exploitation that weakens the prestigious image of retailers.

Accepted Answer

The answer of Higher prices often indicate a level of...

Question 15

Retailers can better acquire and use assets when they customize store layouts and merchandise mixes to the tastes of local consumer bases.

Accepted Answer

Customizing store layouts and merchandise mixes to local consumer tastes can increase the likelihood of acquiring and using assets effectively in retail.

Question 16

Floor stock refers to the inventory held in reserve for potential future sale in a retailer's storeroom or stockroom.

Accepted Answer

Floor stock refers to the inventory that is displayed and available for immediate sale on the sales floor or showroom of a retailer, not in the storeroom or stockroom.

Question 17

Will, a salesperson at a superstore, mistakenly provides wrong information to a customer about the location of a specific brand of dishwashing liquid. The customer, as a result, wastes time searching for the product. This is an example of brand cannibalization.

Accepted Answer

This is not an example of brand cannibalization, but rather a case of providing incorrect information causing customer inconvenience. Brand cannibalization refers to a situation where sales of one product or brand cannibalize the sales of another product or brand within the same company.

Question 18

Unlike supermarkets, convenience stores:
A)charge lower prices.
B)carry a much more limited line of high-turnover convenience goods.
C)enable customers to shop without visiting a physical store location.
D)offer no service to customers.

Accepted Answer

Convenience stores carry a much more limited line of high-turnover convenience goods compared to supermarkets. They don't have a wide range of products or brands like supermarkets do. The limited products offered in convenience stores are meant to cater to immediate needs and are usually purchased for quick consumption.

Question 19

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 shop, while nonstore retailing allows customers to shop using various methods such as online, catalog, or phone orders, without physically visiting a store.

Question 20

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

Accepted Answer

The answer of In-store retailing adds a level of convenience...

Quiz 14: Retailing