Deck 11: Retailing Strategies

Question 1

Retailers take ownership of products and assume all related risks, for theft or loss.

Answer 1

True

Question 2

Supermarkets constitute the largest category of retailing, accounting for 18 percent of total sales.

Answer 2

True

Question 3

Approximately 55 percent of all retail sales are made in the general merchandise retailing category.

Answer 3

True

Question 4

General merchandise retailers are comprised of specialty stores, department stores, general merchandise discount stores, conventional supermarkets, supercenters, and convenience stores.

Question 5

In the general merchandise retailing category, specialty stores offer a narrow product line and deep assortment.

Question 6

In the general merchandise retailing category, stores that offer broad product lines are known as specialty stores.

Question 7

In the general merchandise retailing category, category specialists are retailers that offer a narrow product line and limited assortment.

Question 8

In the general merchandise retailing category, category specialists are also known as category killers.

Question 9

In the general merchandise retailing category, department stores offer a broad variety of goods and deep assortments.

Question 10

In the general merchandise retailing category, anchor stores are situated at the end or corner positions in a mall to generate consumer traffic for the stores situated in-between.

Question 11

Specialty stores, chains in particular, are expanding at the expense of all forms of nonfood retailing.

Question 12

Someone looking for a new camera, stereo, kitchen utensils, or clothing will find more brands and selections in department stores than they would in specialty stores.

Question 13

The cosmetic department in most department stores is leased rather than owned by the department store.

Question 14

Department stores have suffered substantial losses in the past decade, mostly attributed to the rise in discount stores, specialty stores, and supercenters.

Question 15

The rental fee in malls tends to be higher than for stand-alone facilities, generating greater expenses for department stores than for stand-alone discount stores.

Question 16

In good times department stores do okay; in bad times shoppers tend to buy their merchandise at other stores, such as discount stores and category specialists.

Question 17

General merchandise discount stores are divided into two categories: all-purpose discount stores and specialty stores.

Question 18

Pure catalog showrooms where consumers shop from catalogs and where there is only one product sample on the shelves, have almost completely disappeared.

Question 19

The food retailing category accounts for approximately 38 percent of all retail sales.

Question 20

Conventional supermarkets are self-service retailers with annual sales higher than $20 million, but with less than 30,000 square feet of store space.

Question 21

In the food retailing category, conventional supermarkets are self-service retailers with annual sales of over $2 million and with an area of under 20,000 square feet.

Question 22

In the food retailing category, conventional supermarkets are large retailers, such as combination stores or hypermarkets, that sell food, drugs, and other products.

Question 23

In the food retailing category, combination stores are medium-sized retail stores that combine food and drug retailing.

Question 24

In the food retailing category, supercenters are stores that carry an extensive food selection and drug products, as well as nonfood items, combining supermarket, discount, and warehouse retailing principles.

Question 25

Internet retailing provides opportunities for current brick-and-mortar retail stores to define their market beyond their geographic target regions.

Question 26

Most catalog retailers also sell their merchandise through their own web sites.

Question 27

Over two-thirds of the retail establishments in the United States are independently owned.

Question 28

Retailer cooperatives are associations between two members of the distribution channel to merge buying and promotions.

Question 29

The merchandise mix is the product assortment and brands that a retail store carries.

Question 30

The merchandise mix is the totality of dealer brands offered by a particular retailer.

Question 31

Many retailers today attempt to increase their merchandise mix to become a one-stop shopping experience for consumers.

Question 32

When a retail store adds products that are not related to their existing merchandise mix, it is known as scrambled merchandising.

Question 33

To compete with other stores and to provide customers with one-stop shopping, retailers often enter into a self-perpetuating spiral of scrambled merchandising where more and more items are added and customers are confused about what a store really does sell.

Question 34

In the past, most retail stores were located in secondary business districts.

Question 35

Regional shopping centers tend to have three or four anchor stores or generator stores and several other retailers in-between.

Question 36

Community shopping centers are normally anchored by a discount store.

Question 37

For existing retailers, the Internet has created new possibilities for reaching old and new consumers, but it has also created new competition.

Question 38

While the department store took a century to reach maturity, new formats, such as warehouse clubs and Internet retailing, have reached or are quickly reaching maturity in less than a decade.

Question 39

The wheel of retailing can explain the disappearance of many department stores that lost their middle-class customers as they tried to climb higher on the wheel.

Question 40

Technology is facilitating the retailing function by eliminating the need for salespeople, and increasing the accuracy of transactions.

Question 41

Based on retailing trends, retailers are facing increasing competition from retailers who are not in the same retail category.

Question 42

Retailers are rapidly expanding internationally to gain a competitive advantage and to increase sales, profits, and overall firm performance.

Question 43

Consumers in Japan prefer to shop less frequently and purchase products in bulk.

Question 44

Consumers in the United States prefer to purchase products in smaller quantities, packaged individually.

Question 45

The three main retail formats include all of the following except

A) general merchandise retailing
B) food retailing
C) discount retailing
D) non-store retailing

Question 46

General merchandise retailers include all of the following except

A) general merchandise discount stores
B) catalog showrooms
C) off-price retailers
D) convenience stores

Question 47

In the general merchandise retailing category, specialty stores

A) offer a narrow product line and deep assortment
B) are large discount stores that carry a narrow variety of merchandise and a wide assortment
C) offer a broad variety of goods and deep assortments
D) are situated at the end or corner positions in a mall to generate consumer traffic for the stores situated in-between

Question 48

In the general merchandise retailing category, category specialists

A) offer a narrow product line and deep assortment
B) are large discount stores that carry a narrow variety of merchandise and a wide assortment
C) offer a broad variety of goods and deep assortments
D) are situated at the end or corner positions in a mall to generate consumer traffic for the stores situated in-between

Question 49

In the general merchandise retailing category, category specialists are also known as

A) off-brand retailers
B) category killers
C) warehouse specialists
D) none of the above

Question 50

In the general merchandise retailing category, department stores

A) offer a narrow product line and deep assortment
B) are large discount stores that carry a narrow variety of merchandise and a wide assortment
C) offer a broad variety of goods and deep assortments
D) are situated at the end or corner positions in a mall to generate consumer traffic for the stores situated in-between

Question 51

In the general merchandise retailing category, anchor stores

A) offer a narrow product line and deep assortment
B) are large discount stores that carry a narrow variety of merchandise and a wide assortment
C) offer a broad variety of goods and deep assortments
D) are situated at the end or corner positions in a mall to generate consumer traffic for the stores situated in-between

Question 52

In the general merchandise retailing category, general merchandise discount stores

A) sell high volumes of merchandise, offer limited service, and charge lower prices
B) offer a wide variety of merchandise and limited depth
C) sell brand-name and designer merchandise below regular retail
D) sell primarily food products

Question 53

In the general merchandise retailing category, all-purpose discount stores

A) sell high volumes of merchandise, offer limited service, and charge lower prices
B) offer a wide variety of merchandise and limited depth
C) sell brand-name and designer merchandise below regular retail
D) sell primarily food products

Question 54

In the general merchandise retailing category, off-price retailers

A) sell high volumes of merchandise, offer limited service, and charge lower prices
B) offer a wide variety of merchandise and limited depth
C) sell brand-name and designer merchandise below regular retail
D) sell primarily food products

Question 55

Clothing stores such as Gap, Victoria's Secret, and Acorn would be classified as

A) specialty stores
B) department stores
C) general merchandise discount stores
D) off-price retailers

Question 56

Anchor or generator stores are typically

A) specialty stores
B) department stores
C) discount stores
D) off-price retailers

Question 57

Of the following types of retail stores, _____ tend to suffer the most during recessions because customers buy from other types of stores.

A) specialty stores
B) department stores
C) general merchandise discount stores
D) off-price retailers

Question 58

General merchandise discount stores are divided into the two categories of

A) all-purpose discount stores and specialty stores
B) all-purpose discount stores and off-price retailers
C) all-purpose discount stores and category killers
D) catalog showrooms and warehouse or wholesale clubs

Question 59

Large category stores such as Office Max, Home Depot, Staples, Borders, and Toys "R" Us are types of

A) specialty stores
B) department stores
C) warehouse stores
D) general merchandise discount stores

Question 60

The products sold by _____ include overruns, irregular products, and products from previous seasons.

A) off-price retailers
B) catalog showrooms
C) television home shopping
D) nonstore retailing

Question 61

Which of the following is an example of an off-price retailer?

A) TJ Maxx
B) Bloomingdale's
C) Target
D) all of the above are examples of off-price retailers

Question 62

Off-price retailers are facing difficult times because

A) they do not sell brand-name merchandise
B) consumers find that their prices are not that much lower
C) they sell the same merchandise that is sold at department stores
D) they are not able to sell designer merchandise

Question 63

In the food retailing category, conventional supermarkets are

A) self-service retailers with annual sales of over $2 million and with an area of under 20,000 square feet
B) large retailers, such as combination stores or hypermarkets, that sell food, drugs, and other products
C) medium-sized retail stores that combine food and drug retailing
D) stores that carry an extensive food selection and drug products, as well as nonfood items, combining supermarket, discount, and warehouse retailing principles

Question 64

In the food retailing category, superstores are

A) self-service retailers with annual sales of over $2 million and with an area of under 20,000 square feet
B) large retailers, such as combination stores or hypermarkets, that sell food, drugs, and other products
C) medium-sized retail stores that combine food and drug retailing
D) stores that carry an extensive food selection and drug products, as well as nonfood items, combining supermarket, discount, and warehouse retailing principles

Question 65

In the food retailing category, combination stores are

A) self-service retailers with annual sales of over $2 million and with an area of under 20,000 square feet
B) large retailers, such as combination stores or hypermarkets, that sell food, drugs, and other products
C) medium-sized retail stores that combine food and drug retailing
D) stores that carry an extensive food selection and drug products, as well as nonfood items, combining supermarket, discount, and warehouse retailing principles

Question 66

In the food retailing category, supercenters are

A) self-service retailers with annual sales of over $2 million and with an area of under 20,000 square feet
B) large retailers, such as combination stores or hypermarkets, that sell food, drugs, and other products
C) medium-sized retail stores that combine food and drug retailing
D) stores that carry an extensive food selection and drug products, as well as nonfood items, combining supermarket, discount, and warehouse retailing principles

Question 67

In the food retailing category, hypermarkets are

A) very large retail stores overseas that combine supermarket, discount, and warehouse retailing principles - similar to superstores in the United States
B) stores that require members to pay an annual fee and that operate in low-overhead, warehouse type facilities, offering limited lines of brand-name and dealer-brand groceries, apparel, appliances, and other goods at a substantial discount
C) small retailers located in residential areas that are open long hours and carry a limited line of high-turnover products
D) retailers that sell brand-name and designer merchandise below regular retail

Question 68

In the food retailing category, warehouse clubs are

A) very large retail stores overseas that combine supermarket, discount, and warehouse retailing principles - similar to superstores in the United States
B) stores that require members to pay an annual fee and that operate in low-overhead, warehouse type facilities, offering limited lines of brand-name and dealer-brand groceries, apparel, appliances, and other goods at a substantial discount
C) small retailers located in residential areas that are open long hours, and carry a limited line of high-turnover products
D) retailers that sell brand-name and designer merchandise below regular retail

Question 69

In the food retailing category, convenience stores are

A) very large retail stores overseas that combine supermarket, discount, and warehouse retailing principles - similar to superstores in the United States
B) stores that require members to pay an annual fee and that operate in low-overhead, warehouse type facilities, offering limited lines of brand-name and dealer-brand groceries, apparel, appliances, and other goods at a substantial discount
C) small retailers located in residential areas that are open long hours, and carry a limited line of high-turnover products
D) retailers that sell brand-name and designer merchandise below regular retail

Question 70

Of the following nonstore retailing formats, _____ has(have) the greatest potential for growth.

A) vending machines
B) television home shopping
C) Internet retailing
D) direct selling

Question 71

QVC, Inc. is the envy of many direct marketers and e-commerce retailers for all of the following reasons except

A) repeat purchases account for a large portion of their sales
B) almost all of the items shown sell out each day
C) shipping charges are never disputed
D) customers have a high level of trust in both the products being sold and the host presenting the merchandise

Question 72

The non-store retailing format that is the envy of many direct marketers because shipping charges are not disputed, repeat purchases are a large portion of sales, and customers have a high level of trust in the product being sold is

A) television home shopping
B) Internet retailing
C) catalog or direct-mail retailing
D) direct selling

Question 73

In terms of retail organization, independent retailers

A) operate only one outlet that is usually conveniently located close to the customer
B) operate from one to ten outlets in rural or small town locations
C) are privately owned
D) all of the above

Question 74

In terms of retail organization, retail chains

A) operate only one outlet that is usually conveniently located close to the customer
B) operate two or more outlets that are commonly owned and involve central purchasing and decision making
C) operate two or more outlets that are commonly owned, but have decentralized purchasing and decision making
D) result from a contract with a franchiser

Question 75

In terms of retail organization, half of all retail sales come from

A) independent retailers
B) retail chains
C) retail franchises
D) retailer cooperatives

Question 76

The local automobile dealer that sells Ford, Lincoln, and Mercury vehicles is an example of a(n)

A) independent retailer
B) retail chain
C) retail franchise
D) retail cooperative

Question 77

Supermarkets like Kroger, Albertson's and Food Lion are examples of a(n)

A) independent retailer
B) retail chain
C) retail franchise
D) retail cooperative

Question 78

The different types of services a retail outlet will offer to customers is called the

A) merchandise mix
B) brand mix
C) product mix
D) service mix

Question 79

Many retailers have become involved in scrambled merchandising because

A) it reduces costs
B) it meets the needs of their target markets
C) they want to provide a one-stop shopping experience for their customers
D) of excess physical space available in most retail outlets

Question 80

_____ refer(s) to the physical attributes of a retail store, such as lighting, music tempo, fixtures, displays, colors, and odors.

A) Merchandise mix
B) Servicescape
C) Interior decor
D) Atmospherics