Question 1

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

Accepted Answer

The selection of a retail location is critical to a store's success because it typically requires a long-term commitment of resources. Choosing the wrong location can result in a significant waste of time, money, and effort. It is not easy or cost-effective to move to a new location if the original choice proves unpopular with customers. Therefore, it is crucial to make an informed decision that takes into account factors such as accessibility, visibility, and potential foot traffic.

Question 2

As competition in the retail industry has intensified,Kmart began selling a _____ of clothing called Route 66.It is the only place that you will find the Route 66 brand.The prices of this merchandise are lower than that for national brands and give consumers greater value.

Accepted Answer

Private brand, also known as store brand, refers to products that are exclusively sold by a particular retailer under its own brand name. Kmart's Route 66 clothing line is a private brand because it is only available in Kmart stores and is not sold by any other retailer.

Question 3

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 mall location?

Accepted Answer

Inexpensive leases are not a likely benefit associated with a mall location as rental costs in malls tend to be higher due to the prime location and high foot traffic.

Question 4

The newest generation of shopping centers is:

Accepted Answer

Lifestyle centers represent the newest generation of shopping centers as they offer a mix of upscale shopping, dining, entertainment, and leisure activities in an open-air setting designed to resemble a town square. Unlike regional malls or strip malls, they prioritize experiences and socialization over pure retail transactions.

Question 5

Anchor stores (or generator stores):

Accepted Answer

Anchor stores, also known as generator stores, are often large department stores that are strategically located at opposite ends of a mall to create heavy pedestrian traffic flow and attract customers to the other stores within the mall.

Question 6

When establishing a type of site location,_____ are often used by large retailers such as Target or Kmart,and sellers of shopping goods such as automobiles and furniture.

Accepted Answer

Freestanding stores are often used by large retailers such as Target or Kmart and sellers of shopping goods such as automobiles and furniture. They offer more convenience for customers by being located in easily accessible areas, often with ample parking.

Question 7

The Summer Place has decided consumers will be drawn to its offering of wicker furniture and even be willing to drive out of their way.The store really needs to keep its overhead costs (such as rent)low and wants to avoid locating near competitors.For a location,the Summer Place will probably choose a:

Accepted Answer

A freestanding store would be the best choice for the Summer Place as it allows for more flexibility in terms of location and rent negotiation. It also eliminates the possibility of being located near competitors, which is a priority for the store. While strip centers and shopping centers may offer potential foot traffic, they may also come with higher overhead costs and the risk of being near competitors. Factory outlets and regional malls may not be suitable for the store's target market and offering of wicker furniture.

Question 8

_____ are typically located along busy streets and include a supermarket,a variety store,and a few specialty stores.These are often unplanned business districts and may be crowded and have inadequate parking.Their biggest selling point is their convenience.

Accepted Answer

The characteristics listed in the description (located along busy streets, unplanned, crowded, inadequate parking, convenience) align with strip centers, making this the correct choice. Mass merchandisers and category killers typically refer to specific types of stores within shopping centers, and community shopping centers and regional markets are larger, planned retail developments.

Question 9

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:

Accepted Answer

Retailing mix encompasses all the efforts by a retailer to have the right collection of merchandise or services, at the right place, at the right time, and at the right price. Changes in product mixes, hours of operation, locations, and prices are all part of the retailer's efforts to adjust their retailing mix to cater to consumer needs.

Question 10

Linus is opening a store that will carry pet supplies and is trying to decide on a location.He should consider all of the following factors EXCEPT:

Accepted Answer

Employee density is not a relevant factor in the location decision for a pet supply store. The other factors listed (traffic flow, nature of competition, land costs, and area growth) are all important considerations for choosing a location.

Question 11

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

Accepted Answer

The six Ps of the retailing mix are product, price, promotion, place, personnel, and presentation. Option A correctly identifies the additional two Ps as personnel and presentation. Option B is incorrect because production is not a part of the retailing mix, and people are already included in the personnel aspect. Option C and D are incorrect because potential, perception, personality, and persuasion are not part of the six Ps. Option E is also incorrect because positioning and purchasing are already covered by the other Ps.

Question 12

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

Accepted Answer

The goal of a retailer's promotion mix is to position the store in consumers' minds by communicating the store's unique selling proposition and creating a distinct image. Other options are incorrect: A is incorrect because the promotion strategy should be an integral part of the retailing mix; C is incorrect as most advertising for retailers is carried out at the local level; D is incorrect as direct-mail marketing can be an effective tool for retailers, and E is incorrect, as retail promotion strategy can include public relations activities.

Question 13

Which of the following statements about freestanding stores is true?

Accepted Answer

All of the statements provided about freestanding stores are true. Freestanding stores have become more popular in recent years due to their ability to create easier customer access and greater visibility, which can help retailers build their brand identity with shoppers.

Question 14

_____ place a diverse group of retailers together in one location.This form of retail location first became popular in the 1950s when the U.S.population started migrating to the suburbs.

Accepted Answer

Shopping centers place a diverse group of retailers together in one location and became popular in the 1950s as the U.S. population migrated to the suburbs. Freestanding lifestyle centers, mass merchandising centers, scrambled merchant areas, and mega-malls are all variations or types of shopping centers.

Question 15

Which United States retailer is the number one sales volume retailer in the world?

Accepted Answer

Wal-Mart is the number one sales volume retailer in the world, surpassing all other options listed in terms of revenue and location numbers.

Question 16

Data mining:

Accepted Answer

Data mining uses complex mathematical models to analyze large amounts of data and identify patterns, which can be used to help retailers make better product mix decisions. It is not a method of inventory control, site location decision-making, or measuring levels of service. While data mining can potentially identify inadequate service, this is not its primary purpose.

Question 17

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

Accepted Answer

Destination stores are stores that consumers purposely plan to visit, often for a specific product or experience. They are typically built as freestanding stores and may feature unique or exclusive products to attract shoppers. Benefit retailers focus on specific benefits or features of their products, relationship builders emphasize building long-term relationships with customers, lifestyle stores cater to a particular lifestyle or aesthetic, and M-stores refer to mobile stores or retail apps. None of these options fully capture the definition of destination stores.

Question 18

In an example of _____,Winn-Dixie supermarkets collaboratively marketed and sold Jimmy Dean sausage for half price.Consumers were invited to go to their nearest Winn-Dixie store to take advantage of the savings being offered on Jimmy Dean sausage.

Accepted Answer

Cooperative advertising involves two or more companies collaborating together to advertise their products or services, typically sharing the cost of the advertising. In this case, Winn-Dixie supermarkets and Jimmy Dean sausage worked together to offer a promotion on the sausage, which resulted in cost savings for consumers.

Question 19

The merchandise mix:

Accepted Answer

The merchandise mix refers to the assortment of products that a retailer offers for sale to its customers. It includes all the products that are part of the retailer's product offering. Therefore, choice E is the correct answer. The other options are not related to the merchandise mix.

Question 20

The primary goal of the retail promotion strategy is to:

Accepted Answer

The answer of The primary goal of the retail promotion...

Quiz 13: Retailing