Deck 13: Retailing

Question 1

In retailing, atmosphere refers to the physical characteristics of a retail store or a group of stores that are used to develop an image and attract customers.

Answer 1

True

Question 2

Shoppers are more likely to visit power malls because they are suffering from "time starvation"and looking for convenience.

Answer 2

True

Question 3

Anchor stores such as The Bay and Walmart are typically located in suburban malls.

Answer 3

True

Question 4

Retailing accounts for 5.5% of Canada's GDP.

Question 5

IKEA stores are often isolated stores located on busy streets away from shopping malls. These stores can be classified as freestanding stores.

Question 6

Loblaws practised assortment consistency when it added large pharmacy sections.

Question 7

A Coach store located in The Bay is called a boutique.

Question 8

Shifts in consumer behaviour and technology have had a minimal impact on retailers.

Question 9

Real Canadian Superstore, a large Canadian grocery retailer, launched the "Joe"clothing line. This demonstrates boutique merchandising.

Question 10

Mark's has a walk-in freezer at some locations that customers can use to test cold weather clothing. This is known as scrambled merchandising.

Question 11

Avoiding stock outages is the main focus of stock balance.

Question 12

The marketing strategy a retailer uses to attract customers is called the retailing marketing mix.

Question 13

The retail marketing mix consists of the following elements: price, product, service, access, and experience.

Question 14

Warehouse outlets are no-frills, cash-and-carry outlets that offer consumers name brand merchandise at discount prices. They are commonly referred to as big-box stores.

Question 15

Walmart is a warehouse outlet.

Question 16

The amount of time people currently spend shopping has climbed.

Question 17

The biggest challenge for retailers is showrooming behaviour.

Question 18

A pop-up store involves opening a temporary sales space one day and then disappearing anywhere from one day to a few weeks later.

Question 19

Time-pressed and tired of fighting traffic, consumers are visiting stores that offer convenience and efficient service. As a result, stores located in power malls are winning the battle.

Question 20

Retailers take into account the following merchandising components: breadth and depth of selection, assortment consistency, and stock balance.

Question 21

A fashion boutique for clothing lines such as Ralph Lauren located within The Bay is an example of a pop-up store.

Question 22

An example of a stock balance decision is Canadian Tire adding sports clothing to its merchandise.

Question 23

Apple's minimalist design emphasis helps create the shopping atmosphere.

Question 24

Retailing employs less than 10% of Canada's workforce.

Question 25

Retailing refers to those activities involved in the sale of goods and services to final consumers for personal, family, or household use.

Question 26

Once Jameson's Tires, an independent retailer, owns more than two stores it is considered a chain.

Question 27

It is called multi-branding when Taco Bell and KFC are located under the same roof.

Question 28

Coca-Cola vending machines are not a form of retailing.

Question 29

A retailer with an annual inventory turn goal of 7, average inventory of $300,000, and annual sales of $2,000,000 is meeting its goals.

Question 30

Inventory turns is the number of times during a specific time period that brand new stock is added to existing supplies.

Question 31

The practice of maintaining an adequate assortment of goods that will attract customers while keeping inventories of both high-price and low-price goods at reasonable levels is called stock balance.

Question 32

Retailers are not an active part of the marketing process.

Question 33

When a store buys an assortment of goods and services from a variety of suppliers, stores them, and then offers them to customers, they are part of the sorting process.

Question 34

Costco is a no-frills, cash-and-carry outlet also known as a warehouse outlet.

Question 35

A retail franchise is not a contractual arrangement but rather a marketing function.

Question 36

Canadian Tire abandoned their weekly print flyer as part of their marketing communications strategy.

Question 37

Approximately 70% of all retail purchase decisions are made right in the store.

Question 38

Shopper marketing is an outdated concept that pertains to monitoring consumer behaviour only in physical retail locations.

Question 39

Which of the following are the four key functions of retailers?

A) personal selling, displaying, inventory management, delivery
B) sorting, selling, financing, delivery
C) service, selling, sorting, transacting
D) marketing, e-commerce services, selling, servicing
E) marketing, sorting, transacting, e-commerce services

Question 40

What are the five most important elements to consider in making sure that retailing appeals to consumers?

A) product, price, promotion, place of products, access
B) product selection, service, marketing, access, experience
C) price mix, marketing, product, access, experience
D) product, quality, service, access, experience
E) price, product, service, access, experience

Question 41

What is the retail marketing mix?

A) product, price, promotion, and service
B) selling goods to customers
C) the four Ps
D) the plan a retailer uses to attract customers
E) the store plan for a retailer

Question 42

Which of the following statements best reflects the recent changes in Canada's retail landscape?

A) Consumers have the time and energy to compare products and services across many platforms.
B) Most consumers are both value-conscious and comfortable with technology, putting pressure on bricks-and-mortar retailers.
C) There are few bricks-and-mortar retailers because these types of retailers are no longer required.
D) Canadians are one of the least technologically savvy populations and for this reason bricks-and-mortar stores will always be a retail mainstay.
E) Canadians are polite and as such are reluctant to comparison shop while standing in a physical retail location.

Question 43

What category do both IKEA and Walmart fall under?

A) limited service stores
B) warehouse stores
C) full-serve stores
D) specialty stores
E) power stores

Question 44

What is a crucial consumer trend to consider in retailing?

A) Consumers are looking for more quality and service.
B) Consumers are spending less time shopping.
C) Consumers are looking for a full shopping experience.
D) Consumers are looking for new shopping experiences.
E) Consumers will travel far to get what they want.

Question 45

Both Sony and Microsoft opened temporary locations to launch their new game consoles in 2013. What are these stores called?

A) pop-up stores
B) seasonal stores
C) Christmas stores
D) targeted stores
E) instant stores

Question 46

Which kind of retail location appears to be the way of the future?

A) suburban malls
B) lifestyle malls
C) central business districts
D) strip malls
E) power malls

Question 47

Which of the following is a warehouse outlet?

A) Sears
B) Canadian Tire
C) Walmart
D) Costco
E) The Bay

Question 48

What are current trends in developing retail atmosphere?

A) selection, trial, and fun
B) minimalism, demonstration, and in-store boutiques
C) comfort, experience, and selection
D) fun and action
E) choice, in-store boutiques, and comfort

Question 49

What is it called when a retailer begins to carry products and product lines that seem unrelated to the products it already carries?

A) merchandising extension
B) expanding assortment
C) increasing product depth
D) increasing product breadth
E) scrambled merchandising

Question 50

What is the biggest problem facing independent retail stores?

A) too many other stores create confusion for customers
B) they require strong brand identity
C) they require more effort to build atmosphere
D) the risk of financial loss
E) insufficient parking

Question 51

A department store carries fashion apparel, furniture, appliances, toys, sporting goods, home furnishings, mens' and ladies' wear, and numerous other groupings of products. Such a variety of merchandise is called

A) breadth of selection.
B) depth of selection.
C) stock balance.
D) scrambled merchandising.
E) assortment consistency.

Question 52

What was the primary element that Google addressed when using pop-up stores in key urban markets?

A) merchandise assortment
B) merchandise control
C) marketing communications
D) atmosphere
E) location

Question 53

What marketing communications were key in Canadian Tire's changes to its retailing marketing mix?

A) an effective website
B) clear information on product features
C) build brand loyalty
D) catchy advertising directed to females
E) upbeat music playing in the stores

Question 54

Why is shopper marketing becoming so important to retail stores today?

A) Consumers demand a unique experience.
B) Consumers are time starved.
C) Store brands are more important than product brands.
D) 70% of all retail choices are made right in the store.
E) Most purchases will be made online in a few years.

Question 55

Loblaws added clothing to its stores. What is the name for that?

A) merchandising extension
B) expanding assortment
C) increasing product depth
D) increasing product breadth
E) scrambled merchandising

Question 56

What is a good example of non-store retailing used by Canadian Tire?

A) seasonal catalogues
B) customer service
C) tradeshows
D) vending machines
E) kiosks

Question 57

Retailing includes all activities directly related to the sale of

A) industrial goods to consumers.
B) clothes, shoes, and food products.
C) consumer goods and services to other businesses.
D) products sold in malls.
E) goods and services sold to final consumers for personal use.

Question 58

A store's hours of operation, availability of parking, and image are all part of

A) time and place utility.
B) the retailing marketing mix.
C) the promotion mix.
D) information utility.
E) the store operations.

Question 59

Angela prefers to shop for groceries at larger "superstore"format outlets because she believes that the smaller stores don't have the selection of products she is looking for. The "superstores"are performing which retailing function that is a priority for Angela?

A) enabling transactions
B) participating in the sorting process
C) providing information to customers
D) marketing items
E) offering online shopping

Question 60

IKEA's business idea is "To offer a wide range of well-designed, functional home furnishing products at prices so low that as many people as possible will be able to afford them."Onto which of the five elements of consumer transactions is IKEA choosing to focus?

A) product and access
B) product and experience
C) service and experience
D) product and price
E) price and service

Question 61

The distinction between a retail chain store and an independent retail store is

A) the dollar sales volume each type of store generates.
B) the amount of business conducted annually in terms of dollars.
C) the type of product each type of store carries.
D) the location of the different types of stores.
E) the number of stores under the same ownership.

Question 62

In a retail franchise agreement, the franchisee

A) learns by trial and error the successful operation of the business.
B) supplies managerial expertise to the owners.
C) chooses the location and suppliers that are most beneficial to the franchisee.
D) follows the management practices and accounting systems of the franchisor.
E) takes no initial risk, but pays a very heavy percentage in royalties.

Question 63

The practice of locating two or more different franchises under the same roof is called

A) joint venturing.
B) joint occupancy.
C) co-branding.
D) co-franchising.
E) turf sharing.

Question 64

A store that relies heavily on in-store displays, merchandising, and reasonable prices would be described as

A) a self-serve store.
B) a full-serve store.
C) a business format store.
D) a limited-line store.
E) a general merchandise store.

Question 65

A limited-line store carries

A) only "special edition" products.
B) a small assortment of a few products.
C) a large assortment of one product line or a few related lines.
D) a small assortment of many items.
E) a large assortment of only low-priced products.

Question 66

Independent retailing dominates in

A) local pharmacies.
B) Ontario.
C) shoe stores.
D) variety stores.
E) major urban centres.

Question 67

In response to the entrance of Costco and Home Depot into the marketplace, Canadian Tire

A) opened their own warehouse stores and added new and non-traditional product lines.
B) changed from penetration pricing to prestige pricing.
C) changed to a just-in-time inventory system.
D) moved away from a strategy of being all things to all people.
E) rapidly increased its number of product lines.

Question 68

Retail outlets such as Subway, Tim Hortons, and Canadian Tire are examples of

A) superstores.
B) retail cooperatives.
C) retail chain stores.
D) voluntary chain stores.
E) retail franchises.

Question 69

Pizza Hut, Taco Bell, and KFC are often located under one roof. This is referred to as

A) retail cooperatives.
B) franchising.
C) dual franchising.
D) co-branding.
E) bilateral franchising.

Question 70

Rona and Home Depot are examples of

A) general merchandise stores.
B) independent retailers.
C) specialty stores.
D) superstores.
E) warehouse outlets.

Question 71

A soft drink dispensing machine is an example of

A) non-store retailing.
B) e-tailing.
C) a power centre.
D) freestanding retailing.
E) limited service retailing.

Question 72

Retailers such as piano stores that carry only concert-quality pianos are called

A) category stores.
B) exclusive stores.
C) premium line stores.
D) limited line stores.
E) superstores.

Question 73

In college hallways, vending machines exist for soft drinks and confectionery. These vending machines are

A) a form of warehousing.
B) a form of non-store retailing.
C) a form of direct distribution.
D) a form of direct marketing.
E) types of wholesalers.

Question 74

Canada's Internet penetration is

A) 90%, one of the highest in the world.
B) 90%, one of the lowest in the world.
C) 50%, the world average.
D) 40%, one of the lowest in the world.
E) 100%, one of the highest in the world.

Question 75

Big-box stores are said to be hybrid operations because they perform many wholesaling and retailing functions. That is,

A) they buy in volume so that the manufacturer can deliver directly to each outlet.
B) they developed a strong relationship with the manufacturers.
C) they occupy large square footage.
D) they have downtown store locations.
E) they developed strong relationships with customers.

Question 76

Golf Town, which sells golfing equipment, clothing, and related accessories, is an example of which type of retailer?

A) limited-line store
B) self-serve retailer
C) independent retailer
D) specialty store
E) general merchandise store

Question 77

What is the component of the retailing marketing mix that addresses the physical characteristics of a retail store to develop image and attract customers?

A) the retail appearance
B) the internal merchandising display
C) the atmosphere
D) the store frontage
E) the store layout

Question 78

Which type of retail location strives to offer consumers a unique shopping experience and a "back-to-the-community"kind of feel?

A) strip mall
B) power centre
C) suburban mall
D) full-service mall
E) lifestyle mall

Question 79

Ensuring that the distinctive Canadian Tire red triangle appears prominently in all consumer touch points, in-store, online, on the exterior of stores, in television commercials, and so on is part of which element of Canadian Tire's retail planning?

A) atmosphere
B) merchandise assortment
C) brand identity
D) location
E) merchandise control

Question 80

Miranda is the owner/operator of a floral shop. She wants to add a line of handcrafted paper flowers even though she previously focused strictly on fresh flowers and potted plants. Which element of the retailing mix does this fall under?

A) merchandise assortment
B) merchandise quality
C) merchandise control
D) product selection
E) product depth