Deck 12: International Retailing

Question 1

Japanese department stores started out as electronics shops.

Answer 1

False
Japanese department stores started out as kimono shops which originally sold textiles.

Question 2

Carrefour has bought out the Asda Group in the United Kingdom.

Answer 2

False
Wal-Mart purchased the Asda Group (United Kingdom) has boosted its international sales to $47 billion, which is only a fraction of its total net sales figure (fiscal year ending in January 2004) of $256 billion.

Question 3

Factory outlet stores are examples of general discount retailers.

Answer 3

False
Among examples of off-price retailers are factory outlet stores; close-out retailers, with broad, inconsistent assortments; and single-price retailers.

Question 4

Although some of this growth can be attributed to its Latin American operations, Wal-Mart's primary expansion focus remains on Europe.

Question 5

Category specialists are large department stores that carry a narrow variety of merchandise and a deep assortment.

Question 6

American department stores have expanded in China and Hong Kong where they control 50% of the market.

Question 7

In most low-income countries, general merchandise stores represent the main retail format.

Question 8

Central European department stores have a substantial presence of leased departments that offer noncompeting products.

Question 9

In Canada, department stores have enjoyed substantial gains in the past decade.

Question 10

While off-price retailers are popular in the United States and Canada, there are limited opportunities in the rest of the world for purchasing brand names at a discount.

Question 11

The "all-purpose" general merchandise discount store tends to draw a substantial portion of profits from its supermarket section.

Question 12

Department stores are numerous in Central and Eastern Europe.

Question 13

Outside the United States, department stores typically also have a large supermarket section.

Question 14

Wal-Mart's primary focus is on Latin American expansion.

Question 15

Carrefour is the largest retailer in the world.

Question 16

Specialty stores offer a narrow product line and limited assortment.

Question 17

In the process of internationalization, many retailers are subscribing to the current trend of consolidation in the food and general merchandise sectors.

Question 18

While department stores remain a dominant retail outlet in Asia, they are currently displaying symptoms of decline.

Question 19

The top European grocery retailers command a forty percent market share in Europe.

Question 20

"Category killers" carry a wide variety of merchandise and offer a deep assortment.

Question 21

Sam's Club's most important operations are in Germany.

Question 22

Direct selling is in the mature stage in most of the developing world.

Question 23

Vending machines in Japan sell eggs, cameras, and even life insurance.

Question 24

Convenience stores abound in both low- and high-income countries.

Question 25

Which of the following is the largest retailer worldwide?

A)Bon Marché
B)Intermarché
C)Carrefour
D)Wal-Mart

Question 26

In some countries, salespeople keep the change and sell only those products that are priced under an even amount so that they can claim they do not have the change if a customer dares challenge them.

Question 27

In many low-income countries, not dressing well in upscale stores could easily result in denial of service.

Question 28

Hypermarkets combine supermarket and specialty store principles.

Question 29

In Japan and Korea, Saturday is a major shopping day.

Question 30

In countries where there may be shortages of certain products, salespeople are bribed with money and other goods such as coffee, cigarettes, and perfume.

Question 31

In China, the sales staff tend to be overly conscientious: If a customer forgets to pick up the change after a sale is complete, the salesperson will most likely follow him or her into the street to return the change.

Question 32

With the advent of the Smart Card, convenience stores have become more popular than ever.

Question 33

Consumers in the Philippines prefer to purchase fruit with bugs on it.

Question 34

In South Africa, the poor transportation infrastructure presents a challenge to network marketing.

Question 35

A typical format for a catalog showroom would be one where customers order from a catalog in the showroom where the product is only displayed, and then picks up the merchandise at a designated location.

Question 36

Which country dominates in terms of the retail sales market share?

A)France
B)United Kingdom
C)Japan
D)United States

Question 37

Wal-Mart's primary focus of international expansion is on which region?

A)Latin America
B)Europe
C)Asia
D)Africa

Question 38

Regarding superstores, hypermarkets have been more successful than combination stores in the United States.

Question 39

In Argentina and Saudi Arabia ,consumers prefer to purchase food products at supermarkets, while in Mexico, consumers prefer to go to farmer's markets for fresh produce.

Question 40

K-Mart is expanding internationally using mainly a combination store format.

Question 41

In the process of internationalization, many retailers are subscribing to the current trend of:

A)category specialization.
B)consolidation in the food and general merchandise sectors.
C)distribution center development.
D)diversification.

Question 42

Which company is not in the list of the five leading European retailers?

A)Carrefour
B)Metro
C)Intermarché
D)Edeka

Question 43

Single-price retailers, such as the dollar store, are examples of

A)Discount stores
B)Off-price retailers
C)Specialty stores
D)All of the above

Question 44

Which type of offering is characteristic of department stores?

A)Broad variety of goods and limited assortment
B)Broad variety of goods and deep assortments
C)Limited variety of goods and limited assortment
D)Limited variety of goods and deep assortments

Question 45

Japanese department stores started out as which type of specialty store?

A)Kimono shops
B)Electronic shops
C)Cosmetics kiosks
D)Grocery stores

Question 46

Factory outlet stores and close-out retailers are examples of

A)Hypermarkets
B)Off-price retailers
C)Specialty stores
D)All of the above

Question 47

____ combine supermarket, discount and warehouse retailing principles.

A)Specialty stores
B)Off-price retailers
C)Hypermarkets
D)All of the above

Question 48

Which type of offering is common for specialty stores?

A)Narrow product line and limited assortment
B)Broad product line and deep assortment
C)Narrow product line and deep assortment
D)Broad product line and limited assortment

Question 49

In low-income countries, which type of store represents the main retail format?

A)Specialty stores
B)Department stores
C)General merchandise discount stores
D)Off-price retailers

Question 50

Which of the following is not an example of a category specialist?

A)Ikea
B)Office Max
C)Toys 'R' Us
D)Wal-Mart

Question 51

Which of the following are examples of superstores?

A)Specialty stores
B)Off-price retailers
C)Hypermarkets
D)All of the above

Question 52

Which retail category is not included in the "superstore" classification?

A)Combination stores
B)Hypermarkets
C)Catalog showrooms
D)Each of the above is included in the "superstore" classification.

Question 53

Which type of offering is characteristic of category killers?

A)High variety of merchandise and limited assortment
B)High variety of merchandise and deep assortment
C)Narrow variety of merchandise and deep assortment
D)Narrow variety of merchandise and limited assortment

Question 54

Which of the following is not an example of a specialized market?

A)The Cairo Gold Market
B)The Jade Market in Hong Kong
C)The Spice Market in Turkey
D)All of the above are examples of specialized markets.

Question 55

Which company is the largest retailer in France?

A)Bon Marché
B)Intermarché
C)Carrefour
D)Wal-Mart

Question 56

Hypermarkets use which of the following retailing principles?

A)Supermarket retailing principles
B)Discount store retailing principles
C)Warehouse retailing principles
D)All of the above

Question 57

____ sell brand name and designer merchandise below regular retail.

A)Hypermarkets
B)Off-price retailers
C)Specialty stores
D)All of the above

Question 58

Which of the following is not characteristic of general merchandise discount stores?

A)High volumes of merchandise
B)Full service
C)Lower prices
D)All of the above are characteristic of general merchandise discount stores.

Question 59

This type of retailing is popular in the United States and Canada, but not in the rest of the world.

A)Hypermarkets
B)Off-price retailers
C)Specialty stores
D)Discount stores

Question 60

IKEA is an example of what kind of store?

A)Off-Price retailer
B)Catalog showroom
C)Category specialist
D)Wholesale club

Question 61

According to the text, which innovation has caused vending machine retailing to become more popular than ever?

A)Refrigeration
B)Interactive videos
C)Smart cards
D)The Internet

Question 62

In the process of internationalization, many retailers are subscribing to the current trend of consolidation in the ____________________ and general merchandise sectors.

Question 63

Neckermann and Quelle are examples of

A)Specialty stores
B)Catalog retailers
C)catalog showrooms
D)b and c only

Question 64

____________________ stores offer a broad variety of goods and deep assortments.

Question 65

Which of the following is not likely to be sold in a Japanese vending machine?

A)Insurance
B)Cola
C)Cameras
D)All of the above are likely to be sold in a Japanese vending machine.

Question 66

____________________ stores offer a narrow product line and deep assortment.

Question 67

Which form of retailing is currently experiencing rapid growth in South Africa despite infrastructure problems?

A)Specialty stores
B)Vending machines
C)General merchandise discount stores
D)Network marketing

Question 68

Which of the following statements is not true regarding Internet retailing?

A)In developed, high-income countries, Internet purchasing is experience-driven.
B)Shopping via the Internet is quite different for consumers in developed countries compared to consumers in developing countries.
C)The Internet presents dilemmas with regard to customer service.
D)Each of the above statements is true.

Question 69

Which regulation is not found in Germany?

A)Retail stores must locate in downtown areas.
B)Promotional pricing is limited.
C)It is illegal to offer three products for the price of two.
D)Hypermarket store hours are limited to protect smaller stores.

Question 70

Why do certain stores, for example an antique store selling masterpieces, charge an admission price?

A)The admission price serves as another source of revenue.
B)In some countries, it is a legal requirement for stores selling masterpieces and national treasures.
C)It adds to the prestigious image of the store.
D)The admission price ensures that individuals permitted to enter can actually afford the products sold there.

Question 71

Which of the following is not a regulation discussed in the text?

A)Germany requires stores to locate in downtown areas.
B)France limits the use of promotional pricing.
C)Belgium restricts the expansion of superstores and hypermarkets.
D)All of the above are regulations discussed in the text.

Question 72

According to the text, which country has serious restrictions on direct selling?

A)Saudi Arabia
B)China
C)Vietnam
D)Egypt

Question 73

Which company is not an example of a network marketing firm that has gone international?

A)Amway
B)Herbalife International
C)Equinox International
D)Ikea

Question 74

_________________________ is defined as all the activities involved in selling products and services to final international consumers for their personal consumption.

Question 75

Why are bugs on fruit important to consumers in the Philippines?

A)Fruit with bugs is cheaper, which is important for lower income consumers.
B)Bugs indicate the absence of dangerous pesticides.
C)Bugs indicate that the fruit is ripe.
D)Bugs are believed to increase the "positive energy" of fruit.

Question 76

_________________________ stores sell high volumes of merchandise, offer limited service, and charge lower prices.

Question 77

In most of the developing world, direct selling is in which stage?

A)Introduction
B)Growth
C)Maturity
D)Decline

Question 78

Catalog and Internet retailers found that consumers in Japan expect:

A)to pay after receiving the product.
B)a lifetime warranty.
C)products to be delivered within two days.
D)free shipping and handling.

Question 79

Mango, Zara, and Marks & Spencer are examples of ____________________ stores.

Question 80

Why do French companies rarely offer an extra product for free as a promotion?

A)French consumers are suspicious of "free" items.
B)Legal reasons make it difficult to offer high quality free items.
C)European Union policies discourage the use of free promotions.
D)Because demand exceeds supply for most consumer nondurables, promotions are unnecessary.