Deck 15: Retailing

Question 1

One of the fastest growing trends in retail locations is:

A)larger box stores in urban centre
B)pop-up shops
C)online ordering
D)smaller stores in urban centres

Answer 1

B

Question 2

According to the text, Hudson's Bay Co. owns all of the following retail brands except:

A)Saks Fifth Avenue
B)Lord & Taylor
C)Tiffany's
D)Hudson's Bay department stores

Answer 2

C

Question 3

McDonald's introduction of kiosks in the U.S.A. where consumers can order customized meals, reflects the changing trend of customers' desire for:

A)accessibility with more convenient locations.
B)personalized customer service.
C)changing eating habits.
D)low-barrier franchise opportunities.

Answer 3

B

Question 4

Starbucks is adding a Starbucks Evenings menu including appetizers and alcohol. This change in their product offerings reflects a response to:

A)changes in the competitive retail food landscape.
B)expanding product lines at Starbucks.
C)the aging population in Canada (more adults than children).
D)the Canadian's growing interest in beer and wine.

Question 5

The top 250 retailers in the world, based on sales, had combined sales of approximately:

A)$3.3 trillion
B)$4.4 trillion
C)$1.3 trillion
D)$2.3 trillion

Question 6

A women's clothing store having only one outlet likely falls under what form of ownership?

A)Wholesaler
B)Independent retailer
C)Contractual system
D)Corporate chain

Question 7

Indochino is going against the traditional retail lifecycle by starting moving to retailing.

A)bricks-and-mortar; online
B)pop-up; online and then
C)continuous innovation; discontinuous

Question 8

Major retail categories in Canada include:

A)automotive, food, furniture, and clothing.
B)automotive, coffee, furniture, and clothing.
C)SUVs, food, homes, and clothing.
D)SUVs, beverage, homes, and services.

Question 9

Canada's retailers who made the top 250 retailers in the world (based on sales)include all of the following except:

A)Loblaws
B)Canadian Tire
C)Shoppers Drug Mart
D)Hudson's Bay Company

Question 10

Hudson's Bay, Walmart, Loblaws, and First Choice Haircutters are all examples of a(n)_.

A)business franchise
B)contractual system
C)independent retailer
D)corporate chain

Question 11

Indochino is going against the traditional retail lifecycle by taking its online store into the bricks-and-mortar retail space. To do this, the two inexperienced entrepreneurs have:

A)identified leaders in men's suits and retail financing.
B)studied the most successful retail models to create their winning strategy.
C)hired an experienced management team of fashion and retail.
D)created a full line of well-priced garments for the retail outlets.

Question 12

One of the fastest growing trends in direct mail is:

A)purchasing computers online
B)shopping online, and having products sent directly to your address
C)subscription services, where products are delivered right to your door after signing up
D)shopping online, and having products sent to the nearest store

Question 13

Kit and Ace is a high-end Canadian retailer using a series of pop-up shops in hotels to build its brand among:

A)young and newly wealthy.
B)fashionistas.
C)innovators.
D)global jetsetters.

Question 14

Retailing is an important marketing activity. Not only do producers and consumers meet through retailing actions, but retailing also creates and has a significant
Impact on the economy.

A)customer value
B)public service to charities
C)harvesting possibilities
D)the nation's largest source of tax revenues

Question 15

According to the text, Hudson's Bay Co. plans to open a new retail chain in 2017 called:

A)Joe Fresh
B)L & T's Spot to Stop
C)HBC Discount
D)Saks Off 5th Discount

Question 16

Rona, Tim Hortons, and Canadian Tire are all examples of businesses.

A)facilitating
B)wholesaling
C)manufacturing
D)retailing

Question 17

All of the following are described as aspects of v-commerce, except:

A)vending machines can accept cashless purchases from smartphones
B)new machines are becoming 'green'
C)some vending machines are integrated with Wi-Fi
D)vending machines only sell fast-food (chips, pop, chocolate bars, etc.)

Question 18

Shopper Marketing is focused on:

A)influencing the in-store behaviour of a shopper by using displays, samples, and coupons
B)bringing those individuals who primarily shop online, into the store
C)upselling to vulnerable customers
D)securing those customers who check prices in-store using their mobile device

Question 19

Enterprise car rental agency differentiates itself from other similar agencies by providing a delivery service. This delivery service is particularly valuable to someone who has been left stranded without transportation. What level of service does Enterprise appear to be offering?

A)limited service
B)low-service
C)full-service
D)self-service

Question 20

E-tailing, the ability to shop 24 hours a day, is expected to reach global sales of ________ by 2018.

A)$35 billion
B)$10 billion
C)$40 billion
D)$20 billion

Question 21

Each of the following is an example of a corporate chain EXCEPT:

A)Loblaws
B)Hudson's Bay
C)Guardian Drugs
D)Walmart

Question 22

Which method of classifying retail outlets would be most appropriate for describing McDonald's, Holiday Inn, and Subway-all franchise operations?

A)level of service
B)form of ownership
C)method of operation
D)merchandise line

Question 23

As described in the textbook, which factors below are making it difficult for retailers to compete?

A)scrambled merchandising and mobile phones
B)the internet and scrambled merchandising
C)the internet and intertype competition
D)scrambled merchandising and intertype competition

Question 24

As a recent graduate of university, you decided to open your own 'boutique' consulting firm and provide advice to clients along with selling your mobile app that you developed. In this scenario, you would be classified as a(n):

A)independent retailer
B)administered system
C)contractual system
D)corporate chain

Question 25

Which franchise below has the greatest number of global outlets?

A)Tim Hortons
B)Quiznos
C)Anytime Fitness
D)Subway

Question 26

Metro Inc., First Choice Haircutters, and Guardian Drugs are retail outlets that can be best classified by:

A)method of operation.
B)merchandise line.
C)form of ownership.
D)level of service.

Question 27

A Ford dealership would be classified under what form of ownership?

A)product-distribution franchise.
B)wholesaler.
C)business-format franchise.
D)corporate chain.

Question 28

Your neighbourhood dry cleaner or florist is likely to be categorized according to its form of retail ownership as an independent retailer. This means it is owned by a(n):

A)consortium.
B)individual.
C)conglomera te.
D)corporation.

Question 29

Amazon.ca would be classified as what form of non-store retailing?

A)television home shopping
B)online retailing
C)automatic vending
D)direct mail

Question 30

Direct selling involves ________ active customer involvement and active retailer involvement.

A)high, low
B)high, high
C)low, low
D)low, high

Question 31

During the days before Christmas, a health spa wants to recruit new clients. The owners realize that many people make New Year resolutions and will be looking to become fitter. What form of non-store retailing will likely be most cost effective in reaching potential new clients and making them aware of a special time-limited
Promotion?

A)online retailing
B)television home shopping
C)automatic vending
D)direct mail

Question 32

Specialty discount outlets focus on one type of product, such as electronics, or books, at very competitive prices. These outlets are referred to in the trade as:

A)hypermarkets
B)category killers
C)merchandise stores
D)supercentres

Question 33

Direct mail and catalogues involve relatively active customer involvement and relatively active retailer involvement.

A)high, low
B)low, high
C)low, low
D)high, high

Question 34

A store selling over the Internet 24/7 is characterized with relatively active customer involvement and relatively active retailer involvement.

A)high, high
B)low, high
C)high, low
D)low, low

Question 35

Rona stores carry over 1000 types of products, ranging from drills to faucets, and garden hoses to houseplants. Rona has a wide:

A)level of service.
B)product variety.
C)method of operation.
D)merchandise line.

Question 36

Which of the following is a commonly used method of classifying retail outlets?

A)form of ownership
B)proportion of national brands carried
C)revenue generated
D)service versus product

Question 37

Consumers are able to search for, evaluate, and order products through the Internet. This type of shopping occurs through:

A)television home shopping.
B)deep discount stores.
C)online retailing.
D)power centres.

Question 38

A form of ownership that involves multiple outlets under common ownership is known as a(n):

A)consumer cooperative
B)corporate chain
C)contractual system
D)independent retailer

Question 39

Which of the statements about corporate chains is NOT true?

A)Corporate chains are multiple outlets under common ownership.
B)Corporate chains account for over 60 percent of total retail trade in Canada.
C)Corporate chains are able to negotiate with suppliers for special services or volume discounts.
D)Corporate chains usually use centralized decision making.

Question 40

Level of service refers to:

A)breadth and depth of goods provided.
B)degree of product liability held by the manufacturer.
C)relationship between the manufacturer, the retailer, and the consumer.
D)degree of service provided to the customer.

Question 41

Breadth of product line refers to a store carries.

A)the variety of different items
B)a wide assortment of a few related items
C)the quality of merchandise
D)the physical size, from large to small, of products

Question 42

As a national franchisor, McDonald's assists its franchisees in selecting the store location, setting up the store, advertising, and:

A)keeping premises clean.
B)training personnel.
C)shopping for the best food values.
D)paying their bills promptly.

Question 43

Home building supply outlets, discount stores, and catalogue showrooms provide what level of retail service?

A)limited service
B)self-service
C)customized service
D)full-service

Question 44

When Bulk Barn says: "We carry over 4,000 products-everything from soup to nuts." they are describing their:

A)depth of product line.
B)level of service.
C)breadth of product line.
D)retailing mix.

Question 45

Global Pigeon Supplies is one of the biggest retailers of racing pigeon supplies in the country. The storeowner describes the store as "the Sam's [Club] of pigeon supplies." Which product breadth/depth assortment would best fit this store?

A)narrow/deep
B)narrow/broad
C)broad/deep
D)narrow/narrow

Question 46

The variety of different items a store carries is referred to as:

A)retailing mix.
B)breadth of product line.
C)level of service.
D)depth of product line.

Question 47

Franchising is a type of:

A)retail-sponsored cooperative.
B)vertically integrated chain.
C)contractual system.
D)administered system.

Question 48

Independently owned stores that band together to act like a chain are referred to as:

A)A contractual system
B)A franchise
C)An administered system
D)A vertical integration

Question 49

Dominion is a Canadian supermarket. Recently, it began its Baby Club program, which mails its members a $20 gift certificate when they purchase a certain dollar amount of infant products. By offering this and similar loyalty-type programs, Dominion is trying to:

A)become more self-service.
B)move from self-service to full-service.
C)move from self-service to limited service.
D)move from limited service to full-service.

Question 50

As a franchisor, Radio Shack would assist a franchisee in each of the following EXCEPT:

A)selecting the store location.
B)setting up the store.
C)bargaining with a manufacturer to obtain volume discounts.
D)advertising.

Question 51

Lighting-One is a national firm that allows its independent members, retailers of lighting fixtures, to concentrate their buying power and to plan collaborative promotional and pricing activities. Lighting-One could best be described as a(n):

A)vertically integrated chain
B)contractual system
C)franchised operation
D)administered system

Question 52

At which level of service would the retail customer perform the greatest number of functions?

A)selective service
B)self-service
C)exclusive service
D)limited service

Question 53

A Woman's Place is a retail store, created and staffed by women, that offers products and services relating to maternity needs. It carries in stock 3,000 items for expectant mothers in all dress sizes. This is an example of the A Woman's Place carries.

A)depth of product line
B)versatility of product line
C)breadth of product line
D)variety of product line

Question 54

A retail store carries a broad selection of small kitchen appliances. It has an informed staff and will even gift wrap your purchases free of charge. It does not, however, have a shop for repairs should your appliances need maintenance. This store offers:

A)economies-of-scale service.
B)self-service.
C)exclusive service.
D)limited service.

Question 55

A Woman's Place is a retail store, created and staffed by women, that offers products and services relating to maternity needs. In addition, for expectant mothers it offers advice, personal shopping services, help with hair and/or make-up problems, and free delivery. A Woman's Place is an example of a(n)retailer.

A)minimal service
B)exclusive service
C)self-service
D)full-service

Question 56

Urban Fare is a Canadian supermarket that caters to customers who want to cook at home. It offers free cooking classes, has frequent demonstrations by cookbook authors, and has employees who are knowledgeable about food preparation. Customers do make their own selections once they have decided what to prepare. Urban Fare offers its customers:

A)self-service.
B)exclusive service.
C)economies-of-scale service.
D)limited service.

Question 57

Being a full-service retailer can convey a competitive advantage over other non-full-service retailers because of:

A)cross-shopping by consumers
B)increasing use of the internet
C)comparison shopping by consumers
D)the new customer experience management era

Question 58

Franchising is attractive for the franchisee because:

A)it offers the franchisee the opportunity to enter into a well-known, established business where managerial advice is provided.
B)it relieves the franchisee from any company or product liabilities.
C)the license fees paid to the franchisor is the only fees the franchisee pays.
D)it gives the franchisee complete control over the delivery and presentation of merchandise.

Question 59

Organizations (franchisors)that decide to franchise (franchisors)have _ expansion costs in opening new outlets accompanied by control compared
To owning their own retail outlets.

A)greater; greater
B)reduced; reduced
C)greater; reduced
D)reduced; greater

Question 60

Ace Hardware, IGA, and Guardian Drugs are examples of:

A)Contractual systems
B)Regional shopping centres
C)Cooperative marketing systems
D)Corporate chains

Question 61

Competition between very dissimilar types of retail outlets that carry some of the same kind of merchandise is referred to as:

A)scrambled merchandising.
B)multi-service merchandising.
C)intertype competition.
D)breadth of line.

Question 62

Hypermarkets are:

A)category killers that specialize in electronics.
B)shopping malls anchored by four or more department stores such as Sears or Nordstrom.
C)large stores with more than 200,000 square feet offering a mix of food and general merchandise with prices below those of discount stores.
D)limited-service outlets focusing on general merchandise like that offered in department stores.

Question 63

Large stores (over 200,000 square feet)which offer consumers everything in a single outlet are referred to as:

A)Hypermarkets
B)Supermarkets
C)Discount wholesalers
D)Discount retailers

Question 64

The largest inventory of wedding dresses in Maritimes can be found at Low's Bridal and Formal in Halifax, Nova Scotia. Low's Bridal and Formals is an example of a(n):

A)intertype outlet.
B)general merchandise store.
C)scrambled merchandise store.
D)specialty outlet.

Question 65

Many supermarkets have in-store restaurants where a customer can buy prepared meals to take home or eat there. Supermarkets and restaurants that provide these same kind of meals are engaged in competition.

A)intermodal
B)functional
C)intertype
D)institutional

Question 66

A drug store that sells pharmaceuticals, beauty aids, camera equipment, non-perishable grocery items, and automobile motor oil is an example of a retailer using:

A)full-service.
B)cross-docking.
C)scrambled merchandising.
D)disintermediation.

Question 67

In Europe, stores are based on the concept of one-stop shopping for consumers. These can best be described as:

A)megamarkets
B)euromarkets
C)hypermarkets
D)one-stop markets

Question 68

Fresh-cut flowers that used to only be available from florists can now be purchased at neighbourhood supermarkets. This is an example of:

A)intertype competition.
B)mixed-line merchandising.
C)dysfunctional competition.
D)multi-product marketing.

Question 69

Shoppers Drug Mart carries both pharmaceuticals and now, fresh produce. This is an example of a(n):

A)Dual channel marketing
B)Scrambled merchandising
C)Disintermediation
D)Intertype competition

Question 70

Which type of store gives shoppers the greatest variety of merchandise?

A)a clothing outlet
B)a limited line gift store
C)a specialty clothing store
D)a hypermarket

Question 71

A supercentre:

A)is a mall with more than 100 stores and several important anchor stores.
B)combines a typical merchandise store with a full-size grocery.
C)is a type of specialty outlet.
D)is an auto service center that sells and leases cars as well as repairs them.

Question 72

A type of retail outlet that focuses on one type of product at very competitive prices and often dominates the market is called a:

A)general merchandise store.
B)category killer.
C)hypermarket.
D)specialty outlet.

Question 73

Large department stores, such as Sears or Hudson's Bay, are best classified as:

A)Limited-line stores
B)Scrambled merchandise stores
C)General merchandise stores
D)Hypermarkets

Question 74

Specialty discount outlets focus on one type of product, such as business supplies (Office Depot)or electronics (Best Buy), at very competitive prices. They are referred to as because they often dominate the market.

A)hypermarkets
B)megamarkets
C)regional dominators
D)category killers

Question 75

A diamond shop that only carries diamonds, could be best classified as a(n):

A)intertype outlet.
B)specialty outlet.
C)scrambled merchandise store.
D)general merchandise store.

Question 76

Stores that carry a considerable assortment (depth)of a related line of items are called:

A)scrambled merchandise stores.
B)hypermarkets.
C)general merchandise stores.
D)limited-line stores.

Question 77

Global Pigeon Supplies is one of the biggest retailers of racing pigeon supplies in the country. The storeowner describes the store as "the Sam's [Club] of pigeon supplies." Global Pigeon Supplies is an example of a(n):

A)intertype outlet.
B)general merchandise store.
C)single-line store.
D)limited-line store.

Question 78

Carrefour, which means "crossroad" in French, is the world's second-biggest retailer after Walmart. Carrefour is a chain of hypermarkets, which means it:

A)is a disintermediator.
B)uses scrambled merchandising.
C)engages in no intertype competition.

Question 79

A supercentre:

A)is a variation of the hypermarket.
B)is an auto service center that sells and leases cars as well as repairs them.
C)is a mall with more than 100 stores and several important anchor stores.
D)is a type of specialty outlet.

Question 80

Retailing that occurs outside a retail outlet, such as through direct marketing, direct selling, and automatic vending is classified as:

A)Hypermarket
B)Non-store
C)Limited-line
D)Scrambled merchandise