Deck 1: An Introduction to Retailing

Question 1

The sorting process helps final consumers through ________.

A) allowing store credit
B) providing one-stop shopping convenience
C) operating long hours
D) providing delivery services

Answer 1

B

Question 2

About how many people are employed by traditional retailers in the United States?

A) 11 million
B) 15 million
C) 25 million
D) 34 million

Answer 2

B

Question 3

Data on U.S.retail employment understates actual employment because it does not include ________.

A) store or department managers
B) part-time personnel
C) seasonal employees and unreported workers in family businesses or partnerships
D) teenagers under 18 who are full-time students

Answer 3

C

Question 4

According to the Department of Commerce,annual U.S.retail store sales are about ________.

A) $200 billion
B) $1.5 trillion
C) $3.5 trillion
D) $5.0 trillion

Question 5

In exclusive distribution,suppliers enter into agreements with ________.

A) multiple retailers that designate the latter as the only companies in specified geographic areas that are allowed to carry certain brands and/or product lines
B) one or a few retailers that designate the latter as the only ones in specified geographic areas to carry certain brands or product lines
C) any retailer with ample credit that designates the latter to be allowed to carry certain brands and/or product lines
D) a retailer stating that the retailer cannot carry any competing product lines as a precondition for receiving favorable discounts

Question 6

Channel relations tend to be the smoothest in ________ distribution.

A) exclusive
B) selective
C) intensive
D) wide

Question 7

Retailers have increased their power in the channel of distribution due to ________.

A) the growing number of regional and national chains
B) the growth of franchising as an alternative to independent ownership
C) the increased market share of national brands
D) shopping center contract provisions' limiting the range of goods to be sold

Question 8

In 2015,the pre-tax profits for department stores averaged about ________ percent of sales.

A) 0.5
B) 1.0
C) 2.1
D) 3.5

Question 9

On the average,________ percent of every sales dollar goes to department stores as payment for the activities they perform.

A) 12
B) 18
C) 36
D) 50

Question 10

The sorting process helps manufacturers by ________.

A) paying on the basis of when goods are shipped, not sold
B) offering an assortment of goods that are collected from a large number of suppliers
C) enabling one-stop shopping
D) buying large orders at one time

Question 11

A retailer often must limit its selection of brands in ________ distribution.

A) wide
B) intensive
C) selective
D) exclusive

Question 12

Manufacturers can increase their power in a distribution channel through ________.

A) operating their own retail facilities
B) developing dealer brands
C) expanding into foreign markets
D) use of intensive distribution

Question 13

The largest company in the world based on sales is ________.

A) ExxonMobil
B) Sears Roebuck
C) Marks & Spencer
D) Walmart

Question 14

Which statement concerning retailing is correct?

A) Retailing activities must involve a store.
B) Retailing activities do not have to include a retailer.
C) Retailing activities cannot be performed by a wholesaler.
D) Retailing activities involve goods, not services.

Question 15

A retailer collects an assortment of goods and services from various sources,buys in large quantities,and sells in small amounts to final consumers.This is referred to as ________.

A) one-stop shopping
B) the retail concept
C) retail transactional efficiency
D) the sorting process

Question 16

A retailer sells to multiple retail formats and multiple points of contact.This illustrates ________.

A) vertical integration
B) the sorting process
C) omnichannel retailing
D) the importance of impulse retailing

Question 17

Which of the following activities does not fit within the scope of retailing?

A) medical services to families
B) direct-to-home sales
C) vending purchases by factory workers
D) sales to wholesalers

Question 18

The channel of distribution consists of ________.

A) the movement of goods and services from manufacturer to consumer-user
B) all of the businesses and people involved in the physical movement and transfer of ownership of goods and services from producer to consumer
C) all independent intermediaries involved with the transfer of title of goods and services
D) all middlemen involved with the physical movement of goods and services

Question 19

Which of the following is generally not considered a party in a typical channel of distribution?

A) retailer
B) final consumer
C) wholesaler
D) advertising agency

Question 20

In 2015,the four largest retailing companies (in order of size from largest to fourth largest on the basis of sales)were ________.

A) Walmart, Sears, Safeway, and J.C. Penney
B) Walmart, Kroger, Costco, and Home Depot
C) Walmart, Kmart, Kroger, and Federated Department Stores
D) Walmart, Woolworth, Kroger, and Kmart

Question 21

Which form of distribution has the effect of most severely limiting a manufacturer's long-run sales potential?

A) intensive distribution
B) selective distribution
C) dual distribution
D) exclusive distribution

Question 22

Suppliers sell through a moderate number of retailers in ________ distribution.

A) intensive
B) dual
C) exclusive
D) selective

Question 23

A manufacturer seeking to maximize its sales should utilize ________ distribution.

A) intensive
B) dual
C) exclusive
D) selective

Question 24

Point-of-purchase displays and the placement of goods in visible,high-traffic store locations are important in retailing because of the need to ________.

A) sell services to a broad target market
B) generate impulse sales
C) minimize the need for warehouse space
D) limit pilferage to an acceptable level

Question 25

Which of the following illustrates a retail transaction?

A) a supermarket purchasing a computer system to improve its inventory management
B) a discount retailer signing a 10-year lease on a new store location
C) a wholesaler selling new windows to a home improvement center for resale to homeowners
D) an attorney purchasing a computer in conjunction with a hobby

Question 26

The underlying principle of a strategic approach to the study of retailing is that a firm needs to ________.

A) be a low-cost provider
B) base all of its decisions on retail research
C) be aware of opportunities and constraints in decision making
D) plan for and adapt to a complex, changing retail environment

Question 27

The identifiable,but sometimes intangible,activities undertaken by a retailer in conjunction with the basic goods and services it sells is referred to as ________.

A) the retailing concept
B) the total retail experience
C) relationship retailing
D) customer service

Question 28

Which of the following is not part of the total retail experience for a men's clothing retailer?

A) offering store credit
B) corporate form of ownership
C) the store's atmosphere
D) the brands carried

Question 29

Competition among retailers selling the same goods and services is highest in which form of distribution?

A) intensive distribution
B) exclusive distribution
C) selective distribution
D) vertical integration

Question 30

Which statement concerning Home Depot's retail strategy is not correct?

A) Home Depot targets multiple segments.
B) Home Depot continuously innovates.
C) Despite its success, Home Depot has not done a good job of positioning itself.
D) Home Depot has never lost sight of its low price orientation.

Question 31

The retailing concept is comprised of ________.

A) objectives, implementable actions, feedback, and strategy adjustment
B) short- and long-term objectives, organization mission, and the development of a competitive defensible strategy
C) customer orientation, coordinated effort, value-driven, and goal orientation
D) niche strategy, cost leadership, and focus

Question 32

The first stage in development of a retail strategy should be to ________.

A) develop an overall long-run plan
B) decide on the appropriate target market
C) determine the type of business and specific orientation of the firm
D) implement an integrated strategy

Question 33

A retail strategy is ________.

A) the overall plan guiding a retail firm
B) the choice and satisfaction of a target market
C) an integrated effort by a retailer
D) a goal-directed effort by a retailer

Question 34

An optical chain purchasing goods from dozens of vendors (these include frame companies,lens firms,sunglass manufacturers,and eyeglass case firms)demonstrates ________.

A) a channel of distribution
B) economies of scale
C) vertical integration
D) the sorting process

Question 35

Which factor has had the greatest impact on the success of Home Depot?

A) its low pricing strategy
B) its development and use of a retail strategic plan
C) its excellent physical distribution systems
D) its outstanding customer service

Question 36

Which statement concerning retailing is not correct?

A) Retailing involves both goods and services.
B) Retailing must involve a retailer.
C) Direct selling is part of retailing.
D) Retailing is the final stage in a channel of distribution.

Question 37

A characteristic of relationship retailing is ________.

A) reliance on a database of current customers
B) search for new customers
C) constant bargaining between customers and suppliers
D) low trust among channel members

Question 38

Without the sorting process,final customers would ________.

A) not purchase goods on impulse
B) not receive credit
C) have to shop at individual manufacturers
D) require fewer transactions to complete a purchase

Question 39

The sorting process enables manufacturers to ________.

A) specialize in the production and marketing of a narrow product line
B) vertically integrate
C) increase their channel control over retailers
D) dictate final selling prices to retailers

Question 40

All of the elements in a retail offering that encourage or inhibit consumers during their contact with a given retailer comprises ________.

A) store atmosphere
B) the retail concept
C) the total retail experience
D) retail image

Question 41

A characteristic of a retail strategy is its ________.

A) attention to personnel availability and training
B) attention to short-run success
C) systematic assessment of the environment to ascertain opportunities and threats
D) focus on past operations and success

Question 42

An example of the contrasting viewpoints of retailers and manufacturers is a ________.

A) manufacturer-sponsored cooperative advertising program
B) manufacturer attempting to increase national brand display space
C) manufacturer sponsoring training programs for retail sales personnel
D) manufacturer sponsoring point-of-purchase materials

Question 43

The greatest advantage to a manufacturer's use of exclusive distribution is ________.

A) a high level of retail price competition
B) close channel cooperation
C) maximizing long-run sales potential
D) convenience of location to customers

Question 44

In which form of distribution do retailers typically agree to limit their assortment of brands in a selected product category?

A) intensive
B) dual
C) exclusive
D) selective

Question 45

The training of personnel to sell related merchandise (such as batteries,a case,and extra film with a camera)represents an attempt to maximize ________.

A) impulse sales
B) manufacturer cooperation
C) self-service merchandising
D) the number of customers drawn to a store

Question 46

The potential for channel conflict (due to the high power of a retailer relative to a manufacturer)is least in which form of distribution?

A) dual distribution
B) exclusive distribution
C) selective distribution
D) intensive distribution

Question 47

Retail price competition is generally highest in ________ distribution.

A) dual
B) exclusive
C) intensive
D) selective

Question 48

Which statement concerning strategic planning is correct?

A) Strategic plans can be best used by large retailers.
B) Strategic planning should be conducted on an annual basis.
C) Strategic plans should emphasize attracting customers via price-oriented promotions.
D) Strategic planning is a continuous process.

Question 49

Neither channel cooperation nor long-term sales potential is maximized in ________ distribution.

A) vertical
B) exclusive
C) intensive
D) selective

Question 50

Convenience goods are generally marketed using ________ distribution.

A) dual
B) exclusive
C) selective
D) intensive

Question 51

The selection of an appropriate target market by a retailer relates to which element of the retailing concept?

A) goal orientation
B) customer orientation
C) coordinated effort
D) value orientation

Question 52

A retailer is able to appeal to different target markets,as well as reach consumers through points of contact,through engaging in ________.

A) Web sales
B) omnichannel retailing
C) relationship retailing
D) vertical integration

Question 53

Strategic planning in retailing ________.

A) can be practiced by both small and large retailers
B) requires a comprehensive computer-based marketing information system to be properly implemented
C) should focus on short-run opportunities
D) requires the use of planning specialists with MBA degrees to succeed

Question 54

Channel cooperation and control is greatest when ________.

A) intensive distribution is utilized
B) selective distribution is utilized
C) exclusive distribution is utilized
D) manufacturers own and operate their own retailing facilities

Question 55

Retail price competition is generally lowest in ________ distribution.

A) dual
B) exclusive
C) intensive
D) selective

Question 56

Point-of-purchase displays,self-service merchandising,and the use of high-traffic locations to place selected goods represents an attempt by retailers to ________.

A) control expenses
B) increase the number of potential shoppers who enter a retail store
C) reduce inventory levels
D) increase impulse sales

Question 57

A manufacturer seeking maximum retailer cooperation should utilize which form of distribution?

A) exclusive distribution
B) intensive distribution
C) selective distribution
D) dual distribution

Question 58

Loss leaders,weekly promotions,an excellent location,and special events (such as cooking classes)are more common in retailing than in wholesaling because ________.

A) profit margins in retailing are higher than in wholesaling
B) retailing is the final stage in the channel of distribution
C) most retail customers must be drawn to a store location
D) the average sale in retailing is smaller than in wholesaling

Question 59

Consumers are able to shop in a "one-stop shopping environment" due to the ________.

A) increased size of stores
B) development of franchising
C) sorting process
D) development of prototype stores

Question 60

Retailers typically study prospective locations in terms of the characteristics of shoppers,neighboring retailers,pedestrian traffic counts by day of week and hour,and parking facilities.This intensive analysis is due to the ________.

A) importance of impulse sales to all retailers
B) long-term nature of retail leases
C) high rent charged for store locations
D) need to attract consumers to a store location

Question 61

Which retail strategy focuses on existing customers?

A) the retail concept
B) the functional approach to retailing
C) relationship retailing
D) transactional retailing

Question 62

An off-price chain specializing in fashion merchandise at deep discounts uses low-rent locations,self-service merchandising,and inexpensive fixtures.Alterations are not available and merchandise can be returned for store credit only.The chain illustrates which element of the retailing concept?

A) customer orientation
B) coordinated effort
C) competitive intelligence
D) goal orientation

Question 63

Retailing is an intermediate stage in the channel of distribution.

Question 64

A retailer's focusing on store atmosphere,customer service,and exceeding a consumer's expectations is concerned with ________.

A) the total retail experience
B) employee empowerment
C) relationship retailing
D) a value orientation

Question 65

Retailers seek to increase impulse purchases through point-of-purchase displays and attractive store layouts.

Question 66

A major home improvement retailer desires to increase its sales at the rate of 20 percent per year.This requires new stores in existing markets (to increase market penetration),renovation of existing stores that are over seven years old,and entrance into new domestic and foreign markets.The retailer also plans to pay increased attention to the female do-it-yourself segment of its market by hiring more female salespeople,gearing workshops on home repair to women,and providing delivery service at a small fee.This illustrates ________.

A) goal orientation
B) customer orientation
C) coordinated effort
D) the retailing concept

Question 67

Mail and telephone orders,direct selling,and vending machine sales are not part of retailing.

Question 68

Channel relations are generally smoothest when intensive distribution is used.

Question 69

A retailer uses multiple points of contact in omnichannel retailing.

Question 70

The use of customer loyalty programs by a hotel chain that grants rewards,such as room upgrades and free rooms to loyal customers,is an important part of ________.

A) the total retail experience
B) relationship retailing
C) customer service
D) the retailing concept

Question 71

Which of the following is not an important characteristic of relationship retailing?

A) the continuous monitoring of customer satisfaction
B) the development and maintenance of a database on all customers
C) the seeking of long-term bonds with existing customers
D) the continuous seeking of new customers to replace lost customers

Question 72

The strategic approach to the study of retailing stresses ________.

A) retail institutions
B) retail profits
C) legal issues
D) retail planning

Question 73

The functional orientation to the study of retailing stresses ________.

A) retail activities
B) retail planning
C) adaptation of retail strategy to match the retail environment
D) opportunities and constraints in decision making

Question 74

Through the sorting process,a retailer collects an assortment of goods and services from various suppliers and offers them to customers in small quantities.

Question 75

Generally,a manufacturer can maximize its long-run sales potential through the use of intensive distribution.

Question 76

A tire retailer guarantees to match all advertised specials of competitors,includes installation and balancing in its quoted price,and specializes in well-known tire brands.This illustrates which element of the retailing concept?

A) value-driven
B) customer service
C) competitive intelligence
D) goal orientation

Question 77

Retailers and their suppliers have common viewpoints relating to channel control,the intensity of distribution,and the setting of final retail prices.

Question 78

A major disadvantage of the retailing concept as applied to the development of a retail strategy is that it does not focus on ________.

A) the development of a coordinated strategy
B) a firm's competitive advantages
C) specific objectives such as market share or return on sales
D) the satisfaction of a firm's target market

Question 79

The largest retailer in the United States (in terms of sales)is Sears Holding.

Question 80

Through the retail concept,the retailer bridges the gap between the needs of manufacturers and customers.