Deck 2: Types of Retailers

Question 1

Depth of merchandise is often referred to as the:

A) variety
B) complete retail offering
C) retail mix
D) number of items within each product line
E) object of the buy

Answer 1

D

Question 2

The spawning of new categories and retailers from supercentres to the Internet best demonstrates the:

A) growing diversity of retail formats
B) necessity to go global with domestic retailers
C) tremendous need for better customer services
D) need for training and development programs
E) necessity to focus on competition

Answer 2

A

Question 3

Pinch-A-Penny sells a variety of pool maintenance supplies including filters, chemicals, lights, skimmers, and pool toys. Pinch-A-Penny can be said to have:

A) breadth of merchandise
B) depth of merchandise
C) complete retail offering
D) supply standard
E) retail mix

Answer 3

A

Question 4

Variety is often referred to as the:

A) complete retail offering
B) retail mix
C) depth of merchandise
D) breadth of merchandise
E) store's supply standard

Question 5

Compared to other food retailers, convenience stores

A) Have higher food prices
B) Have a wide breadth and depth of merchandise
C) Have less than 30% of their store devoted to food
D) Are experiencing slow growth in Asia
E) Benefit from the high margins of gasoline sales

Question 6

My Favourite Quilt Shop carries quilting thread of every brand, colour and strength in cotton and poly-cotton blends. With reference to quilting threads, My Favourite Quilt Shop has:

A) broad variety
B) good customer base
C) little shrinkage
D) deep assortment
E) few SKU's

Question 7

Frank was shopping for electric fuses for his fuse box. Flash Hardware sold them for $3.99 for a box of six, but when he went to the same retailer's website, he found the same set for $2.99. Flash Hardware has a problem with:

A) a communication problem between channels
B) a pricing mistake by the store manager
C) depth of merchandise
D) price consistency across channels
E) product consistency

Question 8

The Home Depot offers customers a huge selection of home improvement merchandise. As a result inventory investment:

A) increases because of the increase in demand in the home improvement industry
B) increases because of the value of the assortment
C) decreases because of the increase of the customer base
D) increases because they have to carry backup stock for each SKU
E) decreases because of the introduction of backup stock

Question 9

The Canadian retail marketplace is dominated by a small number of large retailers -which term does this describe?

A) concentration
B) diversity
C) development
D) globalization
E) Americanization

Question 10

Al is the office manager for a large travel agency. He is responsible for maintaining the office supplies and works within a budget. This month, he needs to restock the agency's #10 envelopes, ball-point pens, coffee, sweetener and plastic spoons. Where's the best place for him to shop?

A) Loblaws
B) Office Depot
C) Costco
D) 7-Eleven
E) Both B and C

Question 11

Which of the following can be purchased at a hypermarket?

A) Sports equipment
B) Hotdogs and luncheon meat
C) Electronics
D) Photographic film development
E) All answers provided are correct.

Question 12

Isaac's Men's Store stocks 322 different styles and colours of ties. This assortment of ties can be referred to as Isaac's:

A) store's supply standard
B) retailer mix
C) breadth of merchandise
D) complete retail offering
E) depth of merchandise

Question 13

Which of the following trends are changing the retail industry?

A) Discriminating consumers
B) Growing retailer concentration and power
C) Growth in consumer data
D) Blurring boundaries among channels and formats
E) All answers provided are correct.

Question 14

Each different item of merchandise in a retail store is called a/an:

A) consumer offering
B) store counted item (SCI)
C) stored and keyed unit (SKU)
D) economic unit
E) stock keeping unit (SKU)

Question 15

To compete against intrusions by other food retailing formats, conventional supermarkets are:

A) Providing a better in-store experience
B) Offering more private-label products
C) Targeting health-conscious consumers
D) Emphasizing fresh perishables
E) All answers provided are correct.

Question 16

Mark's Work Wearhouse (clothing retailer) carries sizes for small, average, and big men, but all sizes are not available in all their stores. What should Mark's do to communicate this message to their customers?

A) They should train their sales associates to mention this when closing sales with each customer
B) Mark's should advertise this by featuring big men on their Holiday Catalogue
C) Mark's should actively advertise these assortments to competitors
D) A database should be developed of those who purchase merchandise for big men and then Mark's should market specifically to those shoppers
E) They should advertise big men's merchandise on all of their newspaper supplements and commercials

Question 17

Because the only merchandise category at the Futon Shop is double-sized futons, the Futon Shop can be said to have no:

A) inventory control
B) shrinkage
C) variety
D) need for customer service
E) product depth

Question 18

Warehouse clubs:

A) have deep assortment within it's merchandise categories
B) have low turnover
C) provide extensive customer service
D) sell merchandise in a no-frills atmosphere
E) spend on visual displays

Question 19

NAICS:

A) Is an on-package series of thick and thin lines readable by check-out scanners
B) Is a number used to identify an item in a company's inventory
C) Is a classification scheme used by retailers in Canada to monitor after-tax profits
D) Is a classification scheme where every North American business is assigned a 6-digit code
E) None of these

Question 20

Which of the following is a self-service food store offering groceries, meat, and produce with limited sales of nonfood items?

A) Big-box food retailer
B) Superstore
C) Convenience store
D) Conventional supermarket
E) All answers provided are correct.

Question 21

To respond to a competitive environment, discount retailers are fighting back by:

A) developing more private-label merchandise programs
B) focusing on a EDLP strategy
C) offering better customer service on the floor
D) increasing assortments
E) All of these.

Question 22

Target and Walmart are examples of:

A) department stores
B) specialty stores
C) variety stores
D) discount stores
E) convenience stores

Question 23

Off-price retailers:

A) sell brand-name and even designer-label merchandise at reduced prices.
B) offer gift wrapping services.
C) offer a consistent assortment of soft goods at low prices.
D) give cash refunds.
E) require suppliers to give them a variety of allowances and discounts.

Question 24

Which of the following is an example of a department store?

A) Mark's Work Wearhouse
B) Hudson's Bay
C) Home Hardware
D) Future Shop
E) Chapters

Question 25

Which of the following categories are department stores moving away from offering?

A) Kitchenware
B) Women's apparel
C) Accessories
D) Home furnishings
E) Toys

Question 26

Kelly is a primary school teacher. She needed some small gifts for her students. She was pleased when she went in A Buck or Two and found she could buy colouring books, plastic scissors, pencil bags, puzzles, and games all priced at $1.00 each. A Buck or Two is an example of a:

A) value retailer
B) general merchandise retailer
C) price killer
D) price specialist
E) specialty retailer

Question 27

The two types of off-price retailers are:

A) warehouse clubs and closeout stores
B) value retailers and closeout stores
C) outlet stores and warehouse clubs
D) outlet and closeout stores
E) closeout and value stores

Question 28

Specialty stores that concentrate on health and personal grooming merchandise are:

A) closeout retailers
B) drugstores
C) discount stores
D) direct-mail retailers
E) off-price retailers

Question 29

Rona and Home Depot are both category specialists for the home improvement industry. This means the stores:

A) offer their customers narrow breadth and depth
B) offer a narrow but deep assortment of merchandise
C) have excellent after-the-sale service
D) appeal to the mature consumers
E) use quick-response inventory management systems

Question 30

Zara, a specialty store, produces how much of its own clothing line?

A) None
B) less than 20%
C) less than 40%
D) 100%
E) greater than 50%

Question 31

The primary issue facing supermarket and convenience store retailers today is:

A) increasing level of competition from other types of retailers
B) price wars
C) downsizing of middle management
D) expiration dates on perishables
E) corporate development racing to catch up to store level

Question 32

Category specialists:

A) have little customer service
B) rely on warranty sales to promote loyalty
C) offer a narrow variety but deep assortment of merchandise
D) are limited to clothing, office supply, pet supplies, and toy retailing
E) compete directly with off-price retailers

Question 33

What is one way a convenience store can develop a sustainable advantage against competition?

A) Nothing: convenience stores are becoming extinct
B) Open more stores
C) Close less convenient locations
D) Extend hours of operation
E) Sell prepared meals

Question 34

The retail format in which the retailers communicate with customers and offer products and services for sale over the Internet is called:

A) computerized shopping
B) direct selling
C) electronic retailing
D) television home shopping
E) catalogue retailing

Question 35

A retailer that carries a broad variety and deep assortment of stock, offers customer services, and are organized into separate departments for displaying merchandise is called a:

A) discount retailer
B) home improvement centre
C) specialty retailer
D) department store
E) category killer

Question 36

Which of the following offers drive-through windows as a response to competition from discounters and grocery stores?

A) Drugstores
B) Specialty shops
C) Category specialists
D) Kiosks
E) Big-box retailers

Question 37

Manufacturers view their outlet stores as advantageous over selling to other off-price retailers because:

A) they do not have to offer rock-bottom prices
B) they do not have to work with buyers of other companies
C) they are interested in by-passing traditional retailers and wholesalers and sell direct to the consumer
D) it allows them some control over where their branded merchandise is sold
E) All answers provided are correct.

Question 38

Category specialists in direct competition with each other typically compete on the basis of:

A) in-store promotions
B) advertising
C) cost of goods/retail price
D) distribution strategies
E) product variety and assortment

Question 39

Which of the following statements about discount stores is true?

A) They have greater depth of merchandise than department stores.
B) They do not carry private-label merchandise.
C) They tend to offer a broad variety of merchandise.
D) They typically carry more brands and sizes in each category than department stores.
E) All answers provided are true.

Question 40

Category specialists are sometimes called category killers because they:

A) are located at stand-alone sites.
B) have a broad merchandise mix and shallow assortment.
C) carry mainly technologically obsolete merchandise.
D) are often located in dying shopping malls.
E) can destroy a category of merchandise for other retailers.

Question 41

When multilevel direct selling becomes a pyramid scheme:

A) the selling format is usually franchised
B) the use of the party plan becomes more commonplace
C) the salespeople are no longer independent agents
D) typical annual sales of products often double
E) little merchandise is sold to end users

Question 42

Infomercials:

A) are 60-seconds commercials
B) are not shown on cable television
C) do not usually solicit orders
D) use testimonials rather than demonstrations to sell products
E) are 30-minutes commercials

Question 43

In a franchise contract, the franchisee pays the franchisor a:

A) commission on all sales
B) start-up costs plus a monthly predetermined cash amount
C) salary plus a variety of employee benefits
D) lump sum plus a royalty on all sales
E) bonus if the sales quota is achieved

Question 44

Martina was watching a Made-for-Television Movie on the Life Channel when she saw an ad for a series of books for people who want to save money on home repairs. She called and ordered the book on plumbing that was first in the series. Martina responded to:

A) an infomercial
B) direct selling
C) interactive electronic retailing
D) outbound telemarketing
E) direct-response advertising

Question 45

When compared to catalogue retailing, TV home shopping has which of the following disadvantages?

A) The customer's ability to watch products being demonstrated
B) The customer's inability to look at products when they want to
C) The lack of federal regulation of the medium
D) The difficulty inherent in returning unsatisfactory products
E) The ability to schedule when certain types of merchandise will be sold

Question 46

Direct selling:

A) is a highly interactive form of retailing
B) is mainly performed by independent agents
C) most often takes place in the home
D) can be done over the telephone
E) All answers provided are correct.

Question 47

Which of the following describes an advantage that independent, single-store establishments have over other forms of ownership?

A) Economies of scale
B) Distribution efficiency
C) Bureaucratic operation
D) Ability to respond almost immediately to market changes
E) Very low set-up costs

Question 48

Ben saw a half-hour TV show with George Foreman on it. During the show Foreman was showing how to prepare a variety of foods so that they would be totally fat-free. Each item was prepared using a special cooker. During the show the TV audience were given several opportunities to buy the cooker. Ben was watching:

A) direct selling
B) a sales promotion
C) an infomercial
D) outbound telemarketing
E) interactive electronic retailing

Question 49

Where are most direct sales made?

A) On the job site
B) At street festivals and craft shows
C) Over the phone
D) Via a computer connection
E) Face-to-face, in a home

Question 50

The main difference between direct-mail retailers and catalogue retailers is that direct-mail retailers are:

A) highly involved in database management
B) businesses that have low start-up costs
C) consistent with catalogue retailers in that they maintain long-term relationships
D) primarily interested in a single sale from a specific mailing while catalogue retailers maintain relationships with customers over time
E) usually considered junk mail and are discarded

Question 51

The major advantage of TV home shopping compared to catalogue retailing is:

A) its ability to schedule when certain types of merchandise will be shown
B) customers can see the merchandise being demonstrated on TV
C) the lack of federal regulation of the medium
D) its ability to create time and place utility
E) the easy return policy for unsatisfactory products

Question 52

Due to the of services, service retailers like Disney, Famous Players, and Air Canada sometimes find it difficult to match supply and demand.

A) intangibility
B) consumability
C) perishability
D) inconsistency
E) compatibility

Question 53

Why do movie theatres sell tickets for an afternoon showing at a lower price than the 7 p.m. showing of the same movie?

A) To make sure the service offered in consistent
B) To deal with the perishability of services
C) To deal with the intangible characteristic of services
D) To deal with the incompatibility characteristic of services
E) To minimize inventory losses

Question 54

How can a service retailer best cope with the some of the problems associated with the intangibility of service?

A) Solicit customer evaluations and complaints.
B) Increase staffing at peak demand times.
C) Emphasize quality control.
D) Use mass production.
E) Use low prices during off-seasons to help match supply and demand.

Question 55

The most common purchases from vending machines are:

A) cigarettes
B) ice
C) airplane insurance
D) condoms
E) beverages and snack food

Question 56

A retailer that sells merchandise and/or services through more than one channel is called a/an:

A) direct seller
B) multichannel retailer
C) electronic retailer
D) computerized retailer
E) single-channel retailer

Question 57

What do WestJet (airline), Four Seasons (hotel chain), Century 21 (real estate company), and Rogers Video (video outlet) have in common?

A) They are all examples of service retailers.
B) They have high operating margins due to the size of their inventories.
C) They are all examples of off-price retailers.
D) They sell tangible products.
E) These retailers have established long-term relationships with their manufacturers.

Question 58

A company operating multiple retail units under common ownership and usually has centralized decision making for defining and implementing its strategy is called a:

A) franchise
B) single-store establishment
C) retail chain
D) wholesale-sponsored voluntary cooperative group
E) full-line discount stores

Question 59

In a multilevel network, master distributors:

A) may receive a commission on all merchandise purchased by the distributors in their network
B) sell to customers in their network
C) are responsible for training the salespeople they recruit
D) recruit other people to become distributors in their network
E) All answers provided are correct.

Question 60

A ______ develops when a firm's marketing program is designed to sell merchandise and services to other distributors rather than to retail customers.

A) multilevel network
B) pyramid scheme
C) party plan
D) commission
E) general merchandise retailer

Question 61

Consumers are using their mobile devices to help their retail buying decisions in the following way.

A) Compare prices with competing firms
B) Find location and hours of a retailer.
C) Read reviews about products and services.
D) Look up product information.
E) All apply.

Question 62

Multichannel retailers:

A) want to encourage consumers' collecting information about products and pricing on their channels and then buying the product from a competitor
B) want to encourage channel migration
C) should avoid offering uniquely relevant information based on proprietary data that the retailer has collected about their customers
D) should consider promoting private-label or exclusive merchandise that can be purchased only from them
E) cannot respond to the challenge of differences in local competition

Question 63

Choose the term that best fits the following: Consumers want to consume in a responsible, sustainable way. Retailers are responding b embracing the issues and helping customers and suppliers do the same.

A) Ubiquitous connectivity
B) New age of marketing
C) Growing retailer power
D) Empowered, discriminating consumers
E) Buying local, going green

Question 64

Which of the following retailers is the best example of a multichannel retailer?

A) eBay
B) The Keg restaurant
C) Sears
D) Susan and Michael's Hair Salon
E) 7-Eleven convenience stores

Question 65

Choose the term that best fits the following: Consumers can make informed decisions with the increased access to product informatio comparisons, and user reviews, and then widely share their experiences with others.

A) Empowered, discriminating consumers
B) Ubiquitous connectivity
C) Buying local, going green
D) New age of marketing
E) Growing retailer power

Question 66

Which of the following is a benefit of store channel shopping?

A) The touch and feel of products
B) The ability to make cash payments
C) Personal service
D) The ability to browse
E) All answers provided are correct.

Question 67

A multichannel retailer is one that:

A) buys merchandise from multiple channels to sell in the stores
B) sells merchandise or services through more than one channel
C) is a combination of single-channel retailers
D) works with other retailers who are in the channel
E) channels all assortments through the stores

Question 68

Which of the following is not a benefit of retail store channel shopping?

A) Browsing
B) Cash payment
C) Personal service
D) Touch and feel products
E) Personal safety

Question 69

Choose the term that best fits the following: It has never been more critical for retailers to integrate digital opportunities into the shopp experience, with the Internet available at work, at home, and on the go (mobile). Digital a physical experiences are converging, with shoppers expecting interactive, value-added experiences anytime, anywhere, and through any channel.

A) Ubiquitous connectivity
B) Growing retailer power
C) New age of marketing
D) Buying local, going green
E) Empowered, discriminating consumers

Question 70

Choose the term that best fits the following: Physical stores turning into showrooms in the minds of consumers and the rise of online b are forcing retailers to rethink their costly real-estate assets and merchandising formats.

A) Blurring boundaries among channels, formats, and brands
B) Explosion of consumer data
C) Challenged store economics
D) Scientific retailing
E) Maturing retail technologies

Question 71

Choose the term that best fits the following: The top five grocery stores in Canada now have 67 percent share of the market, with Lobl Companies Ltd. dominating with 29.9 percent.

A) Ubiquitous connectivity
B) Empowered, discriminating consumers
C) Growing retailer power
D) Buying local, going green
E) New age of marketing

Question 72

Choose the element of the retail mix that best applies to the following: Retailers may appeal to different customer needs and offer different assortments and varie merchandise and services.

A) Type of merchandise/services offered
B) Breadth and depth of merchandise offered
C) Price of merchandise
D) Level of customer service
E) None of these apply

Question 73

Choose the term that best fits the following: A wide range of maturing technologies is allowing companies to streamline backroom fu and increase efficiency, helping to offset higher labour costs.

A) Challenged store economics
B) Maturing retail technologies
C) Scientific retailing
D) Explosion of consumer data
E) Blurring boundaries among channels, formats, and brands

Question 74

Choose the term that best fits the following: The enormous amount of data generated by points of sale, social media, corporate websit tracking URLs is greater than the ability of many retailers to exploit the potential value of input.

A) Maturing retail technologies
B) Blurring boundaries among channels, formats, and brands
C) Scientific retailing
D) Explosion of consumer data
E) Challenged store economics

Question 75

Choose the element of the retail mix that best applies to the following: The United States, Canada, and Mexico have developed a classification scheme, called th American Industry Classification System (NAICS), to collect data on business activity in each country.

A) Type of merchandise/services offered
B) Price of merchandise
C) Breadth and depth of merchandise offered
D) Level of customer service
E) None of these apply

Question 76

Margaret went to the mall on her lunch hour. While she was there, she witnessed a back-to-school fashion show in Target, saw an old friend, took a walk and watched the
Children play in the centre arena. What benefit of store shopping was Margaret enjoying?

A) Detailed information
B) Touch and feel products
C) Convenience
D) Personal service
E) Entertainment and social interaction

Question 77

Choose the term that best fits the following: Shoppers Drug Mart is selling food; Loblaws has in-house bank branches; and Indigo has Starbucks cafés in stores. Retailers are evolving into a more integrated business model wh channels share a common strategy for profitable growth.

A) Scientific retailing
B) Blurring boundaries among channels, formats, and brands
C) Maturing retail technologies
D) Challenged store economics
E) Explosion of consumer data

Question 78

Choose the term that best fits the following: By applying smart algorithms and deep, data-driven analytics to the massive amounts of d retailers are able to maximize all aspects of their business, including pricing, assortments, displays, staffing, and warehouse space.

A) Challenged store economics
B) Maturing retail technologies
C) Explosion of consumer data
D) Blurring boundaries among channels, formats, and brands
E) Scientific retailing

Question 79

Mobile device and smartphone retail application research indicates that smartphones:

A) are most likely to be used for store-related shopping when the customer is close to the point of making a purchase
B) are rarely used in conjunction with retailer's apps
C) influence is expected to grow over the next few years, driven by advertisers' desire for greater market share
D) are used more in convenience stores than in any other retail format
E) none of these answers are correct

Question 80

Choose the term that best fits the following: With increasing amounts of data available on customers, their online activities, and their purchasing patterns, retailers are able to create more targeted marketing campaigns.

A) New age of marketing
B) Ubiquitous connectivity
C) Growing retailer power
D) Buying local, going green
E) Empowered, discriminating consumers