Question 1

A men's clothing store arranges sports jackets by price level.This illustrates a functional product grouping.

Accepted Answer

Arranging sports jackets by price level illustrates a price-line grouping, not a functional product grouping. Functional product grouping would involve organizing items based on their use or function.

Question 2

A store attempting to increase sales of impulse goods should utilize a purchase motivation product grouping.

Accepted Answer

Placing impulse goods together based on a common purchase motivation can catch the consumers' attention and increase the likelihood of making an unplanned purchase. For example, placing snacks, candies, and magazines together can increase sales as consumers might be motivated to make these purchases for immediate consumption, entertainment, or distraction.

Question 3

A camera shop develops kits for amateurs that include a point-and-shoot camera,memory card,case,and a separate battery charger.The kit is sold at a discounted price from the price of the separate components.This concept is an example of ________.

Accepted Answer

This concept is an example of solutions selling, where a bundle or package of products is offered to meet the needs of a specific customer or group of customers. The kit is designed to provide a solution for amateur photographers who need a basic setup for taking photos.

Question 4

An appropriate use of dead areas is for personnel space.

Accepted Answer

Dead areas, which are spaces not directly involved in the primary function of a facility or layout, can be effectively utilized for personnel space, such as break rooms or private offices, enhancing the overall use of space within a facility.

Question 5

The sales-productivity ratio approach determines space needs based on assortment considerations.

Accepted Answer

The sales-productivity ratio approach determines space needs based on the sales potential or productivity of different merchandise categories, not on assortment considerations.

Question 6

Prototype store exteriors are commonly used by independents.

Accepted Answer

Prototype store exteriors are more commonly used by chain stores or franchises to maintain brand consistency across multiple locations, rather than by independent stores, which often have unique or customized exteriors.

Question 7

A straight traffic-flow pattern is most appropriate for self-service retailing.

Accepted Answer

A straight traffic-flow pattern allows for easy navigation and visibility in a self-service retail setting, leading to a better customer experience and higher sales.

Question 8

Atmosphere is based on a store's functional and psychological attributes.

Accepted Answer

The answer of Atmosphere is based on a store's functional...

Question 9

Most retailers devote the largest proportion of their total space to merchandise space.

Accepted Answer

The answer of Most retailers devote the largest proportion of...

Question 10

Which of the following is an example of experiential merchandising?

Accepted Answer

Experiential merchandising refers to providing an interactive or immersive shopping experience to customers. An interactive video kiosk provides customers with an engaging and interactive way to learn about products, try out new features, and make purchasing decisions. Self-service retailing and a centralized returns department do not necessarily provide an experiential aspect to the shopping experience, and impulse buying is a behavior rather than a merchandising strategy.

Question 11

Chain retailers and franchisors are concerned with developing and maintaining a consistent image across all units.

Accepted Answer

Chain retailers and franchisors rely on a consistent image to maintain brand recognition and customer loyalty across all their units. This involves standardized store layouts, merchandise displays, signage, employee uniforms, and other aspects of the customer experience.

Question 12

Browsing throughout a store in an unstructured manner is encouraged in a curving traffic-flow pattern.

Accepted Answer

A curving traffic-flow pattern is often used in retail stores to encourage customers to browse and explore the merchandise in a more organic and unstructured manner. This is achieved by creating a path that winds through the store, rather than a straight-line layout that simply leads shoppers directly to what they are looking for. The goal of this design is to create a more relaxed and enjoyable experience for customers, as well as to encourage them to discover and engage with products they may not have noticed otherwise.

Question 13

A co-branding program,such as a Starbucks in a Barnes & Noble store,most closely resembles ________.

Accepted Answer

A co-branding program, such as a Starbucks in a Barnes & Noble store, is similar to a leased department where one retailer rents a space within another retailer's store to sell their products. Starbucks is the leased department in this case, operating within the Barnes & Noble store.

Question 14

A Web site for an espresso machine retailer contains the history of espresso,tips on how to make an optimal cup of coffee,and recipes featuring espresso coffee.This is an example of ________.

Accepted Answer

This is an example of experiential merchandising, as the website is not only selling a product but also providing information, education, and inspiration to enhance the customer's experience with the product. The website is creating a total experience around the product, which is the essence of experiential merchandising.

Question 15

A high degree of online consumers enter the checkout counter and exit without purchasing goods.This can be due to ________.

Accepted Answer

All of the above factors could potentially lead to consumers exiting the checkout counter without making a purchase. High shipping and handling costs can make consumers hesitant to complete their purchase, a difficult or confusing order format can frustrate consumers and cause them to leave, and concerns over credit card security can also play a role in their decision to abandon their purchase.

Question 16

Which of these is an example of solutions selling by a supermarket?

Accepted Answer

Placing a weekly menu in a newspaper insert and stocking all of the required ingredients in a single location in the store is an example of solutions selling as it offers a solution to the customer's need for meal planning and convenience.

Question 17

A bridal registry is an example of ________.

Accepted Answer

A bridal registry is a type of wish list program, in which engaged couples can select items they would like their guests to purchase as gifts for their wedding. This helps guests to easily find and purchase gifts that the couple has chosen and ensures that the couple receives items they actually want or need.

Question 18

A kitchen renovation retailer assembles packages of plumbing fixtures,tiles,and window types that go together to create a given look.The packages are priced on a combined level that includes labor and materials.This illustrates ________.

Accepted Answer

The situation described involves a kitchen renovation retailer offering packages that combine plumbing fixtures, tiles, and window types to create a specific look. This approach is an example of solutions selling, which involves providing customers with a comprehensive package of products and services to meet their needs rather than selling individual products. The packages in this scenario are priced to include both labor and materials, indicating that the retailer is offering a complete solution to customers' kitchen renovation needs. Co-branding involves two or more brands working together to create a new product, which is not the case here. An enhanced shopping experience and impulse buying may be possible outcomes of solutions selling, but they are not the main focus of the scenario described.

Question 19

A small appliance retailer has in-store cooking demonstrations,offers free samples,and lets consumers try out selected new appliances in an environment that resembles a small kitchen.This retailer ________.

Accepted Answer

The retailer's approach of offering in-store cooking demonstrations, free samples, and letting consumers try out selected new appliances in a small kitchen-like environment is an example of experiential merchandising. This approach creates an experience for consumers and allows them to interact with the products before making a purchase.

Question 20

An interactive search engine within a retailer's site ________.

Accepted Answer

An interactive search engine within a retailer's site enables consumers to search and shop for a product from any Web page within the site, providing a convenient and efficient shopping experience for the consumer. The other options (B, C, and D) involve directing the consumer to other sites for additional product information or services, which is not the primary function of an interactive search engine within a retailer's site.

Quiz 18: Establishing and Maintaining a Retail Image