Deck 16: Retailing: Bricks and Clicks

Question 1

7- Eleven,Stop- N- Go,and Circle K,small stores that traditionally have had a market of consumers who are willing to pay a higher price for the ease of buying staples close to home,are .

A)supermarkets
B)convenience stores
C)off- price retailers
D)specialty stores
E)hypermarkets

Answer 1

B

Question 2

Which of the following statements about the use of color in retail stores is true?

A)Light colors convey excitement.
B)Reds and yellows convey an atmosphere of elegance and cleanliness.
C)Blue and green are warm colors.
D)Bright colors make shoppers feel more relaxed.
E)Orange is used to stimulate hunger.

Answer 2

E

Question 3

Retail stores are often classified on the breadth and depth of their merchandise assortment.The depth of the merchandise is the variety of choices for each specific product.Merchandise depth may be classified as _ or .

A)shallow; deep
B)shallow; broad
C)narrow; full
D)narrow; broad
E)narrow; deep

Answer 3

A

Question 4

Which of the following is true about freestanding retailers?

A)They are located by themselves in a separate building.
B)They benefit from the close proximity of stores selling similar merchandise.
C)They are typically small entrepreneurial operations.
D)They anchor large shopping centers.
E)They rely on spillover from other stores to attract customer traffic.

Question 5

The is a way to categorize retail operations by the conditions they face at different points in their existence.

A)pyramid scheme
B)merchandise mix
C)retail placement theory
D)80/20 rule of retailing
E)retail life cycle

Question 6

GameStop sells video games and systems,offering a narrow product line with a deep assortment within that line.GameStop is a .

A)department store
B)off- price retailer
C)general merchandise discount store
D)convenience store
E)specialty store

Question 7

Which of the following is a discount retailer owned by a manufacturer that provides the manufacturer a store to sell off defective merchandise?

A)a department store
B)a general merchandise discount store
C)a specialty store
D)a warehouse club
E)a factory outlet store

Question 8

Which of the following is LEAST likely to happen at a full- service retailer?

A)Customers seek and receive helpful guidance from trained sales associates.
B)Gift wrapping services are offered.
C)Customers handle their own checkout process.
D)Customers have access to alteration services.
E)Product consultants are available to answer specialized questions.

Question 9

Which of the following is most likely to occur during the maturity stage of the retail life cycle?

A)Competitors become obsolete as newer ways of doing business emerge.
B)Profits are low due to development costs.
C)Declining competition makes it easier to maintain customer loyalty.
D)The retailer fundamentally changes to meet customers' new needs.
E)Prices are cut.

Question 10

Using current sales as a predictor,which of the following products would likely be most effectively sold using direct selling?

A)automobiles
B)women's clothing
C)cookware
D)pet food
E)baby furniture

Question 11

In a(n),a master distributor recruits other people to become distributors.The master distributor sells the company's products to the people he or she entices to join and receives commissions on all the merchandise sold by the people he or she recruits.

A)disintermediated sales system
B)hierarchical sales network
C)party plan system
D)integrated sales system
E)multilevel network

Question 12

is the basis of most discount operations.Retailers offering this level of service require customers to perform their own product selection and may require customers to handle their own checkout process.

A)Self- service
B)Full- service
C)Specialty service
D)Limited- service
E)Wholesale service

Question 13

Which of the following products would most likely be sold through automatic vending?

A)grooming products
B)baseball caps
C)mobile telephones
D)office supplies
E)beverages

Question 14

A _ _ is a set of related products a retailer offers.

A)merchandise mix
B)product line
C)merchandise breadth
D)product depth
E)merchandise assortment

Question 15

The Home Depot entered the market as a store for professional and amateur plumbers,electricians,and carpenters.Then it introduced its garden centers.Next came its home design center that provides help with all kinds of interior decorating problems.Now it is enlarging its garden centers and hiring knowledgeable gardeners to staff these centers.The addition of more amenities and greater assortment can be best explained by which of the following?

A)the 80/20 rule of retailing
B)the success of off- price retailers
C)the wheel- of- retailing hypothesis
D)the interconnectedness of the retail life cycle
E)the trend toward disintermediation

Question 16

Which of the following is NOT a benefit provided by e- commerce?

A)It enables specialized businesses to be more successful.
B)It reduces the cost of doing business.
C)It broadens product choices for consumers in smaller communities.
D)It allows the retailer to use real- time pricing.
E)It provides the consumer the satisfaction of instant gratification.

Question 17

A master distributor is most likely to work in which of the following?

A)an activity store
B)a party plan system
C)an e- commerce site
D)a multilevel network
E)a pop- up retail site

Question 18

Product impression,click- through,and basket placement are all measured by which of the following metrics?

A)the traffic flow rate
B)the conversion rate
C)the point- of- sale rate
D)the microconversion rate
E)the off- price rate

Question 19

Which of the following best explains why new retailers often squeeze out older retailers?

A)pyramid schemes
B)shrinkage
C)the 80/20 rule of retailing
D)pop- up retailing
E)the wheel- of- retailing hypothesis

Question 20

In recent years,has(have)become increasingly important.This includes selling to final consumers through direct mail,catalogs,telephone,and the Internet.

A)nonstore retailing
B)e- commerce
C)shopping centers
D)specialty stores
E)discount stores

Question 21

Kurt Jeannopolous is looking to locate one of his men's clothing stores in an area with a growing population but few retail options.Kurt is looking for a(n)_ trade area.

A)saturated
B)primary
C)overstored
D)secondary
E)understored

Question 22

In which of the following would you be most likely to see a free- flow layout?

A)a clothing specialty store like the Gap
B)a general discount store like Target
C)a warehouse club like Sam's Club
D)a hypermarket
E)a supermarket

Question 23

Store location planners look at a store's ,the geographic zone that accounts for the majority of its sales and customers.

A)primary market
B)traffic paths
C)target market
D)trade area
E)microenvironment

Question 24

A department store that has pruned its merchandise assortment to focus more on soft goods has decided to concentrate on marketing which of the following?

A)service amenities
B)brand- name items
C)appliances
D)luxury items
E)clothing and home furnishings

Question 25

Which of the following is an illegal sales technique?

A)a pyramid scheme
B)off- price retailing
C)atmospherics
D)a party plan system
E)a multilevel network

Question 26

Retail stores are often classified on the breadth and depth of their merchandise assortment.The breadth of the merchandise is the number of different lines available.The merchandise breadth may be classified as _ or .

A)narrow; deep
B)shallow; deep
C)narrow; broad
D)shallow; broad
E)narrow; full

Question 27

Which of the following statements about department stores is true?

A)Mass merchandisers have had little or no effect on the profitability of department stores.
B)Department stores were a dominant type of retailer in the first half of the twentieth century.
C)Department stores are more successful today than they have ever been.
D)Department stores are typically self- service.
E)Department stores typically offer shallow and narrow assortments.

Question 28

Which of the following is any method a firm uses to complete an exchange that does NOT require a customer to visit a store?

A)kiosk merchandising
B)exchange retailing
C)e- commerce
D)direct selling
E)nonstore retailing

Question 29

In general,a cluttered and crowded arrangement of merchandise conveys to customers a sense that the store focuses on .

A)low- priced merchandise
B)brand- name merchandise
C)customer service
D)staples
E)specialty items

Question 30

In order to survive in the competitive marketplace,a retailer must offer which of the following to customers?

A)constant innovation
B)experiential retailing
C)full customer service
D)a low price point
E)a competitive advantage

Question 31

Which of the following is NOT an element involved in the creation of store atmospherics?

A)sounds
B)color
C)smells
D)knowledgeable personnel
E)furnishings

Question 32

A _ is a smaller shopping center with upscale stores,convenient locations,and expensive landscaping.It is typically located near affluent residential neighborhoods.

A)strip center
B)freestanding retailer
C)superregional center
D)franchise
E)lifestyle center

Question 33

The Paper Moon sells gift wrapping paper,stationery,and greeting cards.It does not sell any other products.The number of different kinds of wrapping paper,stationery,and cards make up its .

A)merchandise diversity
B)retail format
C)merchandise assortment
D)point- of- sale range
E)atmospherics

Question 34

A(n)trade area is a site where a sufficient number of stores already exist so that high customer traffic is present and the retailer believes it can compete successfully by going head- to- head with the competition.

A)overstored
B)understored
C)secondary
D)saturated
E)primary

Question 35

The lighting in Jake's Steak Restaurant is muted.The chairs are covered in leather and solid enough to last a lifetime,and each table is covered with a white linen cloth.The colors are limited to earth tones with an occasional splash of red.Patrons can not hear any kitchen noises,only a pleasant melody that seems familiar but unrecognizable.The smells are extraordinarily varied.This is a description of the restaurant's _ .

A)atmospherics
B)image
C)experiential retailing
D)layout
E)service mix

Question 36

Which of the following is the number of different product lines available at a particular retail store?

A)retail diversity
B)point- of- sale range
C)merchandise breadth
D)merchandise depth
E)inventory depth

Question 37

Historically,vending machines are a tried- and- true way to sell which of the following?

A)accessory equipment
B)unsought goods
C)capital items
D)specialty goods
E)convenience goods

Question 38

carry narrow product lines with deep assortments within those lines.

A)Discount stores
B)Specialty stores
C)Convenience stores
D)Supermarkets
E)Off- price stores

Question 39

Which of the following accurately describes a lifestyle center?

A)It is a nontraditional retail center that offers marketers more flexibility than a shopping center.
B)It combines the feel of a neighborhood park with the convenience of a strip mall.
C)It is a freestanding retail operation that has designated itself as a shopping destination.
D)It is the new term for a redesigned central business district that provides a rich variety of services and products.
E)It is a form of a superregional center.

Question 40

In the stage of the retail life cycle,retail businesses become obsolete as newer ways of doing business emerge.

A)decline
B)growth
C)competition
D)maturity
E)overexpansion

Question 41

Hypermarkets combine the characteristics of which of the following?

A)factory outlets and department stores
B)general merchandise discounters and specialty stores
C)warehouse stores and supermarkets
D)convenience stores and supermarkets
E)warehouse stores and specialty stores

Question 42

In the stage of the retail life cycle,the retailer often is an aggressive entrepreneur who takes a unique approach to doing business by creating a differential advantage,such as competing on the basis of low price.offering a distinctive assortment,or using a different way to distribute products.

A)expansion
B)growth
C)maturity
D)extension
E)introduction

Question 43

Which of the following is a way that consumers in countries with a cash economy can take advantage of e- commerce opportunities?

A)disintermediation
B)electronic cash exchange (ECE)
C)vending machine cards
D)digitalization
E)digital cash

Question 44

For the retailer,the practice of _ often results in lower total sales and damaged merchandise.

A)retail borrowing
B)sweethearting
C)off- price retailing
D)network marketing
E)shrinkage

Question 45

Which of the following types of retail stores would likely offer the broadest assortment of merchandise and services?

A)general merchandise discount stores
B)hypermarkets
C)factory outlet stores
D)specialty stores
E)convenience stores

Question 46

Which of the following is NOT a function of a point- of- sale (POS)system?

A)automatically sending orders to vendors
B)collecting sales data
C)connecting directly into a store's inventory- control system
D)establishing product price ranges
E)analyzing patterns of demand for different products

Question 47

The purchase of a set of flannel sheets from the Lands' End catalog Web site is an example of e- commerce.

A)POS
B)C2B
C)B2C
D)C2C
E)B2B

Question 48

With the of direct selling,people tend to get caught up in the "group spirit" and buy things they would not normally buy if alone.

A)group norm method
B)party plan system
C)pyramid scheme
D)multilevel network
E)automatic vending system

Question 49

Which of the following types of retailers likely require the most emphasis on salespeople to assist customers?

A)discount retailers
B)full- service retailers
C)limited- service retailers
D)limited- service retailers
E)off- price retailers

Question 50

Stan Clark,the owner of Eskimo Joe's bar,is considering closing the bar and selling the logo apparel with direct marketing through a catalog.Stan Clark is considering a option.

A)wholesaling
B)nonstore retailing
C)specialty store
D)B2B commerce
E)experiential shopping

Question 51

Manufacturers send last year's merchandise and defective merchandise to .

A)department stores
B)convenience stores
C)hypermarkets
D)lifestyle centers
E)factory outlet stores

Question 52

Which of the following statements about store layout is NOT true?

A)Store layout is an element of atmospherics.
B)A free- flow layout is most often found in specialty stores and department stores.
C)In a typical grid layout,staples are placed in more remote areas.
D)A grid layout is more conducive to browsing than a free- flow layout.
E)A grid layout is useful for systematically moving shoppers through the retail space.

Question 53

Which type of store carries a wide variety of items and offers a deep selection,but has been squeezed in recent years between more focused and more service- oriented specialty stores on the one hand and more efficient,lower- priced discounters on the other?

A)department
B)factory outlet
C)hypermarket
D)wholesaler
E)off- price

Question 54

Which of the following is true about convenience stores?

A)They create form,time,and place utility for their customers.
B)They carry mostly shopping goods.
C)They create time utility for their customers.
D)They are reluctant to change their store designs and offerings to adjust to changes in the market.
E)They charge lower- than- normal prices for shopping goods.

Question 55

Which of the following types of retailers have been more successful in Europe than in the United States?

A)specialty stores
B)supermarkets
C)hypermarkets
D)convenience stores
E)warehouse clubs

Question 56

Which of the following is most likely true about shoppers who prefer to shop at "lifestyle centers"?

A)They prefer inexpensive,thrifty atmospheres.
B)They value an aesthetically pleasing shopping environment.
C)They rarely dine out.
D)They are motivated by deals on last year's merchandise.
E)They prefer out- of- the- way locations.

Question 57

Which of the following is NOT a new technology retailers are using to improve the retail experience for customers?

A)e- menus
B)POS systems
C)social shopping
D)cash- and- carry checkouts
E)RFID tags

Question 58

A store using an everyday low- pricing (EDLP)strategy does which of the following?

A)positions itself as an anchor store in a shopping center
B)eliminates most forms of customer service in order to maintain low prices
C)relies on its pricing strategy to create its competitive advantage and engages in a price war if necessary to maintain the advantage
D)sets prices between the list price the manufacturer suggests and the deeply discounted price stores that compete on price alone offer
E)has weekly sales

Question 59

Which of the following is the final stop in the distribution channel in which organizations sell goods and services to consumers for their personal use?

A)retailing
B)wholesaling
C)franchising
D)brokering
E)disintermediation

Question 60

A telephone call from a salesperson requesting a purchase of a subscription to an educational magazine designed to help children improve their math skills is an example of which of the following?

A)two- way vending
B)direct wholesaling
C)e- commerce
D)direct selling
E)one- way communication

Question 61

Why do stores locate in saturated trade areas?

A)to decrease competition
B)to create retailer cooperatives
C)to standardize the service mix
D)to access high customer traffic
E)to take advantage of tax breaks

Question 62

During the Civil War,citizens set up their wagons full of merchandise on the edge of army camps and sold the soldiers items such as stationery,shaving mirrors,and tobacco that the U.S.government did not supply in the soldier's rations.These citizens were early .

A)indirect marketers
B)retailers
C)experiential owners
D)disintermediaries
E)demarketers

Question 63

e- commerce is the online exchange between companies and individual consumers.

A)B2C
B)B2B
C)P2P
D)C2C
E)C2B

Question 64

Store location planners conducting a site evaluation would consider all of the following EXCEPT which one?

A)visibility from the street
B)traffic flow
C)the impact of color on customer behavior
D)local zoning laws
E)ease of delivery access

Question 65

Which of the following statements about the services provided by retailers is true?

A)Factory outlet stores are typically full- service retailers.
B)Convenience stores are unlikely to be full- service retailers.
C)Wal- Mart,Target,and Kohls are all examples of self- service retailers.
D)Discount stores are full- service retailers.
E)Only a few stores are actually classified as full- service retailers.

Question 66

Costco's surprise offerings of seconds,overstocks,and closeouts-occasionally including diamonds -is an example of how a retailer can differentiate itself through its .

A)merchandise mix
B)store atmosphere
C)destination retailing
D)services mix
E)level of service

Question 67

operate in bare- bones facilities and offer few frills.Customers pay annual membership fees and are able to purchase goods at deep discounts.

A)General discount stores
B)Factory outlet stores
C)Warehouse clubs
D)Hypermarkets
E)Department stores

Question 68

A _ is the total set of all products offered for sale by a retailer,including all product lines sold to all consumer groups.

A)merchandise mix
B)merchandise depth
C)merchandise assortment
D)merchandise program
E)merchandise breadth

Question 69

Which of the following statements about shopping centers is true?

A)A shopping center is a group of commercial establishments managed as multiple properties.
B)The smallest form of shopping center is called a strip center.
C)Shopping centers are not sources of entertainment aside from the shopping experience.
D)The largest form of shopping center is called a lifestyle center.
E)Rents for stores in shopping centers tend to be low.

Question 70

Avon is successful at giving customers alternatives to traditional store outlets.Avon uses ,which does NOT require a customer to visit a store.

A)mass retailing
B)broad geographic exchange
C)social shopping
D)locational merchandising
E)nonstore retailing

Question 71

Which of the following is the term for how the marketplace perceives a retailer relative to the competition?

A)store image
B)store atmosphere
C)merchandise assortment
D)store layout
E)market segmentation

Question 72

Which of the following best explains why within a given two- mile radius you frequently can find almost any fast- food franchise you can name?

A)the retail life cycle
B)the wheel- of- retailing hypothesis
C)the equity principle of retailing
D)the 80/20 rule of retailing
E)the saturated trade area strategy

Question 73

Five years ago,the Paradise Surf Shop was the only surf- gear store catering to women.It carried everything the serious female surfer needed to ride the waves.In terms of its merchandise assortment,it had a _ assortment.

A)shallow and narrow
B)shallow and broad
C)broad and deep
D)shallow and deep
E)narrow and deep

Question 74

Which of the following is NOT true about warehouse clubs?

A)They are a form of discount store.
B)They often charge their customers with a modest annual membership fee.
C)They have not followed the pattern set forth by the wheel- of- retailing hypothesis.
D)They carry a broad assortment of food and nonfood items in bulk.
E)They often display merchandise in its original boxes.

Question 75

Shoplifting,sweethearting,and retail borrowing are all problems that contribute to .

A)shrinkage
B)pop- up retailing
C)off- price retailing
D)pyramid schemes
E)understored trade areas

Question 76

Retailers would be LEAST likely to consider which of the following in order to meet the needs of working consumers who have little time to shop?

A)using "social shopping" systems
B)offering related services at the retail location
C)expanding their operating hours
D)adding drive- up windows
E)providing shopping consultants for regular customers

Question 77

Which of the following is the retail strategy that involves a store planning to open and then close down within a short period of time?

A)a pyramid scheme
B)shrinkage
C)activity retailing
D)multilevel networking
E)pop- up retailing

Question 78

Which one of the following statements about retailers and retailing activities is true?

A)Most retailers are multi- million dollar operations.
B)About half of all U.S.workers are employed by retailers.
C)Retailers sell only to businesses.
D)Retailers create form utility.
E)Retailers are members of channels of distribution.

Question 79

A is a group of commercial establishments owned and managed as a single property.

A)wholesaler
B)hypermarket
C)franchise
D)business district
E)shopping center

Question 80

,such as Sears and Kohl's,provide some sales assistance and offer credit.

A)Self- service retailers
B)Full- service retailers
C)Off- price retailers
D)Specialty retailers
E)Limited- service retailers