Deck 16: Retailing: Bricks and Clicks

Question 1

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

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

Answer 1

D

Question 2

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

A)product life cycle
B)retail life cycle
C)pyramid scheme
D)merchandise mix
E)retail placement theory

Answer 2

B

Question 3

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

A)collecting sales data
B)connecting directly into a store's inventory-control system
C)evaluating bids from potential suppliers
D)collecting data on returns and transfers to other stores
E)automatically sending orders to suppliers

Answer 3

C

Question 4

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

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

Question 5

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

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

Question 6

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

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

Question 7

When two or more separately owned retail firms combine,a(n)________ has occurred.

A)downturn
B)merger
C)expansion
D)shrinkage
E)niche strategy

Question 8

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

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

Question 9

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

A)retail borrowing
B)the wheel-of-retailing hypothesis
C)shrinkage
D)pop-up retailing
E)pyramid schemes

Question 10

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

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

Question 11

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

Question 12

For the retailer,the practice of ________ results in lower total sales and,in many cases,damaged merchandise.

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

Question 13

According to the ________ hypothesis,new retailing forms often begin as low-margin,low-price,low-status operations to challenge established retailers,then become successful,and eventually take the place of the established retailers they had challenged.

A)agent
B)broker
C)wheel-of-retailing
D)warehousing
E)retail life cycle

Question 14

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

Question 15

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

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

Question 16

A retail firm downsizes when it ________.

A)acquires one or more competitors with a low-end strategy
B)enters the maturity stage of the retail life cycle
C)leaves the introduction stage of the retail life cycle
D)closes unprofitable outlets
E)shifts away from an upscale strategy

Question 17

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)introduction
C)extension
D)maturity
E)growth

Question 18

________ combine an economy supermarket with other lower-priced non-food merchandise.

A)Variety stores
B)Category killers
C)Supercenters
D)Box stores
E)Convenience stores

Question 19

Which of the following types of retailers place the most emphasis on salespeople assisting customers throughout the purchase process?

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

Question 20

Which of the following would enable a customer in one retail site to ask questions of a product "expert" in another retail site?

A)an in-store kiosk
B)an RFID tag
C)a POS system
D)a perpetual inventory control system
E)an e-menu

Question 21

Which type of self-service store is a food store with a limited selection of items and few brands per item?

A)convenience store
B)box store
C)specialty store
D)variety store
E)leased department store

Question 22

Which type of store combines the characteristics of a warehouse store and a supermarket?

A)freestanding store
B)department store
C)box store
D)hypermarket
E)factory outlet store

Question 23

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

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

Question 24

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

Question 25

Which of the following is NOT true about warehouse clubs?

A)They are not full-service stores.
B)They often charge their customers with a modest annual membership fee.
C)They carry items in bulk.
D)They are a form of discount store.
E)They have not followed the pattern set forth by the wheel-of-retailing hypothesis.

Question 26

Which of the following is true about general merchandise discount stores?

A)They typically have deep and narrow assortments.
B)They typically have shallow and narrow assortments.
C)They do not use price differentiation.
D)They appeal to consumers who want easy access to a lot of merchandise.
E)They are typically full-service retailers.

Question 27

________ are food stores that carry a wide selection of edible and nonedible products.

A)Supermarkets
B)Convenience stores
C)Specialty stores
D)Variety stores
E)Department stores

Question 28

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

Question 29

________ carry a narrow assortment of product lines with deep assortments within those lines.

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

Question 30

Which of the following stores is most likely to have a narrow assortment of merchandise?

A)a supermarket
B)a factory outlet store
C)a department store
D)a warehouse club
E)a hypermarket

Question 31

________,such as Target and Kohl's,provide merchandise return and offer credit,but customers select merchandise without much assistance.

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

Question 32

Which of the following statements about department stores is true?

A)Department stores are more successful in America today than they have ever been.
B)Department stores typically offer shallow and narrow assortments.
C)Department stores are more popular in America than they are abroad.
D)Department stores are typically self-service.
E)Department stores were a dominant type of retailer in the first half of the twentieth century.

Question 33

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)off-price
D)hypermarket
E)wholesaler

Question 34

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

Question 35

Which type of self-service store offers a limited line of inexpensive items,often at a single price point?

A)convenience store
B)box store
C)specialty store
D)variety store
E)leased department store

Question 36

Customers of a ________ buy most of the store's products in larger-than-normal packages and quantities.

A)warehouse club
B)department store
C)factory outlet store
D)leased department store
E)hypermarket

Question 37

Which of the following types of retailers obtain surplus merchandise from manufacturers and offer brand-name,fashion-oriented goods at low prices?

A)specialty stores
B)warehouse clubs
C)off-price retailers
D)department stores
E)hypermarkets

Question 38

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

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

Question 39

Which of the following is true about convenience stores?

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

Question 40

A large retail store that wants to offer a broader variety of products or services on site than it would otherwise carry would most likely make an arrangement with a(n)________.

A)leased department
B)convenience store
C)variety store
D)factory outlet
E)off-price retailer

Question 41

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

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

Question 42

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

A)It provides consumers the satisfaction of instant gratification.
B)It reduces the cost of doing business.
C)It enables specialized businesses to be more successful.
D)It provides consumers more access to pricing information.
E)It broadens product choices for consumers in smaller communities.

Question 43

Which of the following is an illegal sales technique?

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

Question 44

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

A)a box store
B)a B2B e-commerce site
C)a party plan system
D)network marketing
E)an experiential store

Question 45

Another name for multilevel marketing is ________.

A)the party plan system
B)network marketing
C)the pyramid system
D)e-commerce
E)experiential marketing

Question 46

Which of the following factors is most likely to be used to create store atmospherics?

A)employee training
B)sales promotion
C)store layout
D)event sponsorship
E)price points

Question 47

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

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

Question 48

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

A)convenience stores
B)factory outlet stores
C)specialty stores
D)box stores
E)hypermarkets

Question 49

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

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

Question 50

Which of the following prohibits door-to-door selling unless prior permission has been granted by the household?

A)the National Do Not Call Registry
B)a Green River Ordinance
C)permission-based e-marketing
D)network marketing
E)a party plan system

Question 51

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

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

Question 52

Through 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)multilevel network
B)pyramid scheme
C)automatic vending system
D)door-to-door sales
E)party plan system

Question 53

Which kind of retail store would be most likely to use a grid layout?

A)a high-end restaurant
B)a clothing specialty store
C)a jewelry store
D)a supermarket
E)a factory outlet store

Question 54

A retail site's storefront and marquee are both examples of ________.

A)store layout
B)visual merchandising
C)experiential marketing
D)trade areas
E)customer services

Question 55

Experts predicting that destination retail will be a future trend believe that consumers will soon visit retailers more for ________ than for the basic process of purchasing products.

A)information
B)credit services
C)comparison shopping
D)entertainment
E)social opportunities

Question 56

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

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

Question 57

In general,vending machines are best suited for selling which of the following?

A)specialty goods
B)unsought goods
C)capital items
D)food and beverages
E)accessory equipment

Question 58

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

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

Question 59

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)nonstore retailing
C)direct selling
D)exchange retailing
E)e-commerce

Question 60

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

A)multilevel marketing
B)integrated sales
C)disintermediated sales
D)hierarchical sales
E)party plan systems

Question 61

Which of the following accurately describes a lifestyle center?

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

Question 62

Which of the following statements about retail store personnel is true?

A)The presence of knowledgeable sales personnel is generally unimportant to shoppers.
B)Shoppers tend to rate the quality of service they receive from sales personnel as low.
C)The turnover rate among sales personnel is low.
D)Superior customer service is rarely seen as a competitive advantage.
E)Store personnel are unrelated to a store's image.

Question 63

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

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

Question 64

Which of the following statements about shopping centers is true?

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

Question 65

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

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

Question 66

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

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

Question 67

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

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

Question 68

V&E Bridal Design Shop caters to engaged couples who desire a traditional Eastern Asian wedding ceremony.The brides-to-be who shop at this store are typically Japanese,Laotian,Vietnamese,Korean,or Chinese.This retailer has used ________ to identify a market segment.

A)psychographics
B)geography
C)demographics
D)socioeconomics
E)its merchandise mix

Question 69

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

Question 70

Which of the following identifies how the wheel-of-retailing hypothesis and the retail life cycle are alike?

A)They both have specific stages through which all retailers progress.
B)They both are based on the structure of the product life cycle.
C)They both suggest that the majority of retailers enter the market through low-end strategies.
D)They both depict how changes in technology and culture affect retailers.
E)They both indicate that most retailers shift strategies over time.

Question 71

Why has the practice of running frequent sales often backfired for retailers?

A)Fewer shoppers are interested in bargain hunting.
B)Changing price points have had little effect on store images.
C)Consumers become trained to buy only when the retailer is having a sale.
D)Shoppers are more interested in store image than in price points.
E)Department stores have resisted using everyday-low-pricing strategies.

Question 72

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

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

Question 73

Which of the following is the best example of an anchor store?

A)a freestanding store such as IKEA
B)an upscale retailer such as Williams-Sonoma in a lifestyle center
C)a department store such as Macy's in a shopping center
D)a kiosk selling perfume or jewelry in a shopping center
E)a small restaurant in a strip center

Question 74

In terms of the basic types of retail locations,the traditional downtown business area found in most towns and cities is referred to as a ________.

A)saturated trade area
B)understored trade area
C)lifestyle center
D)shopping center
E)central business district

Question 75

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

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

Question 76

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

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

Question 77

The Healthy Bites Grill is fast-food restaurant chain that sells burgers made from lean buffalo meat,fries that aren't fried,and veggie pockets with soy cheese.The company is four years old and already has outlets in New York,Japan,Canada,and Kuwait,and has plans to expand to many other markets.In which stage of the retail life cycle is the Healthy Bites Grill?

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

Question 78

Why do stores locate in saturated trade areas?

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

Question 79

When sales are made in a local Walmart,the sales data is sent to Walmart headquarters where the data are used to build a picture of the buying habits of people who shop at individual Walmarts across the nation.The use of ________ makes this possible.

A)POS systems
B)social shopping
C)e-commerce
D)e-menus
E)direct selling

Question 80

Which of the following is true about freestanding retailers?

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