Question 1

Which of these is a successful European store type that has not done well in the United States?

Accepted Answer

A) warehouse store 
B) convenience store 
C) superstore 
D) hypermarket

Question 2

Which retail institution is organized into specific divisions for purposes of buying,promotion,customer service,and control?

Accepted Answer

A) department store 
B) variety store 
C) full-line discount store 
D) retail catalog showroom

Question 3

The food-oriented retailer with the highest percent of fill-in sales is the _____.

Accepted Answer

A) convenience store 
B) conventional supermarket 
C) combination store 
D) food-based superstore

Question 4

Off-price chains typically purchase their merchandise through traditional wholesale channels.

Accepted Answer

A) True 
 B)False

Question 5

Which concept characterizes all destination retailers?

Accepted Answer

A) Destination retailers are dominant in terms of some aspect of their overall retail strategy. 
B) Destination retailers are chains. 
C) Destination retailers have large locations. 
D) Destination retailers have low prices.

Question 6

Which of the following is not a basic assumption of the wheel of retailing?

Accepted Answer

A) A large number of price-sensitive shoppers exist. 
B) Retailers increase operating costs over time to improve their image. 
C) New institutions are able to reduce operating costs. 
D) Related-item merchandising increases sales because of one-stop shopping appeals.

Question 7

A special type of combination store that integrates an economy supermarket with a discount department store is a _____.

Accepted Answer

A) convenience store 
B) supercenter 
C) box (limited-line)store 
D) warehouse store

Question 8

Which food-oriented retailer specializes in fill-in merchandise?

Accepted Answer

A) convenience store 
B) supermarket 
C) specialty store 
D) superfood store

Question 9

Which food-oriented retailer traditionally uses cut cases,relies on customers doing their own bagging,and heavily utilizes private-label brands?

Accepted Answer

A) box (limited-line)store 
B) convenience store 
C) combination store 
D) superstore

Question 10

According to the wheel-of-retailing theory,which pricing strategy is used by an innovator?

Accepted Answer

A) pricing at the market 
B) prestige pricing 
C) competitive pricing 
D) deep discount pricing

Question 11

The high total sales volume from off-price chains,factory outlets,membership clubs,and flea markets can be explained by _____.

Accepted Answer

A) the retail life cycle 
B) scrambled merchandising 
C) retail downsizing 
D) the wheel of retailing

Question 12

A food-oriented retailer in which general merchandise accounts for 25 percent to 40 percent of total store sales is a _____.

Accepted Answer

A) superstore 
B) combination store 
C) box store 
D) warehouse store

Question 13

A narrow but deep product assortment characterizes _____.

Accepted Answer

A) department stores 
B) specialty stores 
C) variety stores 
D) retail catalog showrooms

Question 14

During which stage of the retail life cycle do sales and then profits rise for the first retailers in this category?

Accepted Answer

A) maturity 
B) decline 
C) introduction 
D) accelerated development

Question 15

A pharmacy (due to increased competition from a neighboring supermarket)has added an exclusive line of cosmetics and expanded its line of greeting cards and gift-wrapping items.This strategy illustrates _____.

Accepted Answer

A) scrambled merchandising 
B) the retail life cycle 
C) the wheel of retailing 
D) rationalized retailing

Question 16

There is much discussion about saturation of fast-food franchises and the need for unconventional locations (such as schools,zoos,or U.S.naval bases)in the United States.This illustrates which retail life cycle stage?

Accepted Answer

A) introduction 
B) accelerated development 
C) maturity 
D) decline

Question 17

Which retail institution generally does not mention specific brand names and/or prices in its advertising?

Accepted Answer

A) department store 
B) off-price chain 
C) full-line discount store 
D) variety store

Question 18

Which retail institutions do not require advertising support from suppliers?

Accepted Answer

A) off-price chains and membership clubs 
B) department stores and variety stores 
C) superstores and traditional department stores 
D) variety stores and membership clubs

Question 19

In downsizing,retailers increase productivity through _____.

Accepted Answer

A) closing unprofitable stores or selling unprofitable divisions 
B) economies of scale 
C) increasing the number of destination stores 
D) appealing to consumers with value-driven retailing

Question 20

A retailer tries to appeal to consumers' one-stop shopping needs through _____.

Accepted Answer

A) the retail life cycle 
B) vertical marketing systems 
C) the wheel of retailing 
D) scrambled merchandising

Exam 5: Retail Institutions by Store-Based Strategy