Question 1

The person who called Grace last night and tried to sell her a subscription to Better Homes & Gardens magazine was using inbound telemarketing.

Accepted Answer

Inbound telemarketing involves receiving calls from customers, whereas the scenario describes an outbound telemarketing call, where the caller initiates contact to sell a product.

Question 2

Retailing can be defined as all activities directly related to the sale of goods and services to the ultimate consumer for personal and nonbusiness use.

Accepted Answer

Retailing involves selling goods and services directly to the end-user or consumer for their personal or non-business use, which makes the statement true.

Question 3

A retail establishment can be classified according to its ownership,level of service,product assortment,and price.

Accepted Answer

This statement is true as a retail establishment can be characterized by these four key factors.

Question 4

Supermarkets are self-service retailers that specialize in food and food products although many now carry nonfood items as well.

Accepted Answer

Supermarkets primarily specialize in food and food products, but may also carry nonfood items.

Question 5

Marketers who use nonstore retailing no longer have to worry about the "place" element of the four Ps.

Accepted Answer

Nonstore retailing may not require a physical location, but marketers still need to consider the distribution channels and methods used to deliver their products to customers. Therefore, the "place" element of the four Ps still applies.

Question 6

Baggie Waggie is the name of a chain of small stores,which carry high-turnover products such as lip balm,milk,laundry detergent,bread,and aspirin.Baggie Waggie stores are open all day every day and would best be classified as convenience stores.

Accepted Answer

The description provided in the statement matches the characteristics of convenience stores, which are typically open for extended hours and carry a variety of regularly needed items with high turnover rates.

Question 7

Hildebrand Stein operates a retail store that has a wide assortment of window treatments with little depth in any one product line.Stein operates a specialty store.

Accepted Answer

A specialty store typically offers a deep assortment of products within a specific category, whereas Stein's store offers a wide assortment with little depth, indicating it is not a specialty store.

Question 8

Electronic retailing includes the twenty-four hour,shop-at-home television networks and on-line retailing.

Accepted Answer

Electronic retailing includes both television networks and online retailing.

Question 9

Roland LaFarge owns an appliance store where he also sells bird feeders,tools,electrical and plumbing supplies,collectible figurines,homemade candy,and greeting cards,as well as wall paint.LaFarge uses multibrand merchandising.

Accepted Answer

The answer of Roland LaFarge owns an appliance store where...

Question 10

Most direct retailers use a party plan in lieu of door-to-door selling.

Accepted Answer

Party plan is a popular method used by direct retailers to market and sell their products through in-home demonstrations and parties. It is a more personal and interactive approach than door-to-door selling.

Question 11

Esther Jui has just opened a specialty store that will sell Asian wedding gowns to Asian-Americans who want a traditional wedding.Because it will be a specialty store,she should have a broad product assortment with moderately low prices.

Accepted Answer

Since Esther Jui's store will specialize in Asian wedding gowns, it is more important to have a narrow and focused product assortment with higher prices that reflect the uniqueness and quality of the gowns. This will attract customers who are specifically seeking traditional Asian wedding attire and are willing to pay a premium for it, rather than trying to attract a broader customer base with lower prices.

Question 12

Supercenters are more than just larger versions of traditional "markets." In addition to foodstuffs,supercenters have pharmacies,dry cleaners,portrait studies,photo finishing,hair salons,and restaurants.

Accepted Answer

This statement is true. Supercenters offer a wide range of services other than just groceries, including those listed in the statement.

Question 13

Factory outlet stores are generally the same as warehouse clubs,except that a factory outlet store carries only the merchandise of the manufacturer that owns it.

Accepted Answer

Factory outlet stores are generally the same as off-price discount stores.

Question 14

The retailing industry is dominated by a large number of small- and medium-sized companies.

Accepted Answer

The retailing industry is often dominated by a few large corporations, although there are many small- and medium-sized companies within the industry.

Question 15

The two types of franchising are target market franchising and geographic franchising.

Accepted Answer

The two types of franchising are product distribution franchising and business format franchising. Target market and geographic are factors that may influence the choice of franchise location, but they do not determine the type of franchising.

Question 16

Lou Farrigamo is the store manager of a local retailing establishment that sells a wide variety of shopping and specialty goods,including apparel,cosmetics,housewares,and electronics.Farrigamo probably manages a department store.

Accepted Answer

Based on the description provided, Farrigamo is likely managing a department store that sells a variety of goods.

Question 17

Off-price retailers differ from other discount stores in the merchandise they carry.While most other discounters offer a predictable assortment of merchandise,the styles and brands offered at off-price retailers change frequently because they buy only what is currently available at a good deal.

Accepted Answer

Off-price retailers are known for their constantly changing merchandise as they source products from cancelled orders, overstocks, and closeouts. This is different from other discount stores, such as dollar stores, which typically carry a consistent assortment of merchandise at low prices.

Question 18

Specialty discount stores are often called category killers because they dominate the competition in their narrow merchandise segment.

Accepted Answer

Specialty discount stores focus on specific merchandise categories and dominate the competition in that segment, earning the nickname "category killers."

Question 19

Justin Nilssen and Joe Metzger disagree about what it means to be a specialty store.Nilssen says,"A specialty store is just one type of store." Metzger says,"It's more than that--it's also a method of retailing,and involves specializing in a type of merchandise,too." Metzger is correct.

Accepted Answer

The statement confirms that Justin Nilssen's definition of a specialty store is limited and Joe Metzger's definition is more accurate. Therefore, option A is the correct answer as it affirms that Metzger is correct.

Question 20

A typical discount store competes by carrying a limited line of high-turnover,high-margin goods.

Accepted Answer

Discount stores compete on the basis of low prices,high turnover,and high volume.The strategy in the example describes a convenience store.

Quiz 13: Retailing