Question 1

Which of the following factors has adversely affected the competitive position of some department stores?

Accepted Answer

A)  inability to find knowledgeable salespeople 
B)  high operating costs 
C)  intense horizontal competition 
D)  abandonment of exclusive distribution to department stores by many producers 
E)  all of the above

Question 2

_____ position themselves below discount stores with lower prices on selected product lines. They typically concentrate on apparel and shoes; have a narrow, deep product assortment; emphasize their lower prices; and offer few customer services.

Accepted Answer

A)  Specialty stores 
B)  Limited-line stores 
C)  Off-price retailers 
D)  Warehouse clubs 
E)  Corporate chains

Question 3

A Saturn automobile dealership and a Shell service station are both examples of _____ franchises.

Accepted Answer

A)  services 
B)  business format 
C)  product and trade name 
D)  retailer cooperative 
E)  voluntary chain

Question 4

Both Mikell Sevier and Jayson Hammerschmidt are considered comic book experts. They both have an extensive private collection of comics. Both are recognized as experts in their field, and both dream of owning their own business. Sevier wants to open a small retail store in which he buys, sells, and trades comics to other collectors. Hammerschmidt wants to open a similar retail operation on the Internet. Both will offer extensive customer service, and customer satisfaction will be their ultimate goals.
-Which of the following statements correctly describes Sevier's proposed retail operation?

Accepted Answer

A)  The depth of its merchandise assortment will be shallow. 
B)  It will emphasize low prices. 
C)  It will engage in price competition. 
D)  It will have a very broad assortment of products. 
E)  The breadth of its merchandise assortment will be very narrow.

Question 5

Large retail stores always have a competitive advantage over smaller ones.

Accepted Answer

A) True 
 B)False

Question 6

Retail analysts predict by 2011, department stores will have only 17 percent of the retail market, whereas _____ that combine a complete grocery store with a discount store will have 40 percent of the retail market.

Accepted Answer

A)  category-killer stores 
B)  warehouse clubs 
C)  supercenters 
D)  department stores 
E)  limited-line stores

Question 7

Which of the following statements about supermarket retailing is True?

Accepted Answer

A)  A defensive pricing strategy features low prices to attract customers. 
B)  Supermarket retailing features a high degree of self-service. 
C)  Supermarket retailing is synonymous with scrambled merchandising. 
D)  An offensive pricing strategy relies on leader pricing to avoid a price disadvantage. 
E)  All of the above statements about supermarket retailing are True.

Question 8

_____ is the first decision that needs to be made about a retail store's physical facilities.

Accepted Answer

The answer of _____ is the first decision that needs...

Question 9

Which of the following statements about corporate chains is True?

Accepted Answer

A)  Most auto parts and home supply stores are chain stores. 
B)  Corporate chains are the same as contractual vertical marketing systems. 
C)  Corporate chains are very responsive to changing market conditions. 
D)  A high degree of standardization is the hallmark of a chain of retail stores. 
E)  Individual units in a chain typically have complete autonomy.

Question 10

Which of the following statements about warehouse clubs is True?

Accepted Answer

A)  Warehouse clubs always accept all brands of credit cards. 
B)  The target markets for warehouse clubs are small businesses, select groups of employees, and credit union members. 
C)  A warehouse club is strictly a wholesaling institution that has extremely low prices. 
D)  The primary target market for warehouse clubs is middle-income families. 
E)  A warehouse club carries a much greater depth of product assortment than a discount house.

Question 11

Why were the first retailer cooperatives and voluntary chains initiated?

Accepted Answer

A)  to enable independents to improve the level of cooperation, which is sometimes called collusion, among individual stores 
B)  to counter the financial disaster of the Great Depression 
C)  in response to federal antitrust legislation 
D)  to enable independents to compete against corporate chains 
E)  to allow the stores access to shopping center locations

Question 12

Which of the following statements about independent retailers is True?

Accepted Answer

A)  The majority of retailers are independent. 
B)  It is difficulty to compare the prices of chains and independent retailers directly. 
C)  Convenience stores frequently provide a higher level of service than independent stores do. 
D)  Most independent retailers are affiliated with vertical marketing systems. 
E)  None of the above statements about independent retailers is True.

Question 13

Hootin Annies sells dolls, doll kits, patterns for dolls clothes all in the primitive style. This is all the store sells, it sells these at manufacturers' suggested retail prices. After you make a selection, the customer service oriented salespeople at Hootin Annies will help you create your doll's personality by suggesting outfits or showing you how to make your own. In which category of retail stores does Hootin Annies belong?

Accepted Answer

A)  category-killer store 
B)  limited-line store 
C)  warehouse club 
D)  factory outlet 
E)  convenience store

Question 14

Direct selling:

Accepted Answer

A)  has also been called in-home selling. 
B)  is typically done by part-time salespeople. 
C)  is primarily used for the marketing of home/family care and personal care products. 
D)  pays high commissions. 
E)  is accurately described by all of the above.

Question 15

A(n) _____ is formed by a group of retailers who agree to establish and operate a wholesale warehouse.

Accepted Answer

A)  retailer cooperative 
B)  voluntary chain 
C)  consumer cooperative 
D)  independent chain 
E)  retailer-sponsored franchise

Question 16

Corporate chains:

Accepted Answer

A)  avoid price competition. 
B)  have central ownership. 
C)  have narrow, relatively deep assortments. 
D)  are classified as limited-line stores. 
E)  provide extensive personal service.

Question 17

Which of the following factors has adversely affected the competitive position of some department stores?

Accepted Answer

A)  intense horizontal competition 
B)  the high cost of advertising on network TV 
C)  intense vertical competition 
D)  their low operating expenses 
E)  all of the above

Question 18

Wendy went to the website called GoodHome.com to buy a new bedside table. After looking at several options, she purchased a cherry table with one drawer. GoodHome.com used _____ to sell Wendy a bedside table.

Accepted Answer

A)  online retailing 
B)  automatic vending 
C)  direct sales 
D)  direct marketing 
E)  telemarketing

Question 19

Traditional department stores:

Accepted Answer

A)  have a very broad and deep product assortment. 
B)  try not to compete on the basis of price. 
C)  typically have prime and expensive locations. 
D)  provide a wide array of customer services. 
E)  are accurately described by all of the above.

Question 20

Most discount stores carry a broad assortment of soft goods and a narrow assortment of hard goods.

Accepted Answer

A) True 
 B)False

Exam 15: Retailing

Which of the following factors has adversely affected the competitive position of some department stores?

_____ position themselves below discount stores with lower prices on selected product lines. They typically concentrate on apparel and shoes; have a narrow, deep product assortment; emphasize their lower prices; and offer few customer services.

A Saturn automobile dealership and a Shell service station are both examples of _____ franchises.

Large retail stores always have a competitive advantage over smaller ones.

Retail analysts predict by 2011, department stores will have only 17 percent of the retail market, whereas _____ that combine a complete grocery store with a discount store will have 40 percent of the retail market.

Which of the following statements about supermarket retailing is True?

_____ is the first decision that needs to be made about a retail store's physical facilities.

Which of the following statements about corporate chains is True?

Which of the following statements about warehouse clubs is True?

Why were the first retailer cooperatives and voluntary chains initiated?

Which of the following statements about independent retailers is True?

Direct selling:

A(n) _____ is formed by a group of retailers who agree to establish and operate a wholesale warehouse.

Corporate chains:

Which of the following factors has adversely affected the competitive position of some department stores?

Wendy went to the website called GoodHome.com to buy a new bedside table. After looking at several options, she purchased a cherry table with one drawer. GoodHome.com used _____ to sell Wendy a bedside table.

Traditional department stores:

Most discount stores carry a broad assortment of soft goods and a narrow assortment of hard goods.