Question 1

Toronto-based Whole Foods supermarkets targets people who want to eat healthy.The stores use placards throughout,which tell shoppers about the farmers who grew and harvested various products.This use of signage to provide consumer information is a part of which element of the retailing mix?

Accepted Answer

A) communications mix 
B) discounts and allowances 
C) variety and assortment 
D) goods and services mix

Question 2

Lighting-One is a national firm that allows its independent members,retailers of lighting fixtures,to concentrate their buying power and to plan collaborative promotional and pricing activities.Lighting-One could best be described as a(n):

Accepted Answer

A) administered system 
B) contractual system 
C) vertically integrated chain 
D) franchised operation

Question 3

Michelle works at McDonalds and is responsible for offloading the delivery truck every Sunday morning,before other staff and customers enter the store.When she is offloading the frozen packets of grilled chicken,she slips one into the trunk of her car.McDonalds refers to this loss as:

Accepted Answer

A) an opportunity loss. 
B) shrinkage. 
C) UIL (unexplained inventory loss). 
D) an opportunity cost.

Question 4

Which of the following is NOT an element of the retailing mix?

Accepted Answer

A) goods and services 
B) physical distribution 
C) segmentation 
D) communications

Question 5

Level of service refers to:

Accepted Answer

A) breadth and depth of goods provided. 
B) degree of product liability held by the manufacturer. 
C) degree of service provided to the customer. 
D) relationship between the manufacturer, the retailer, and the consumer.

Question 6

A drug store that sells pharmaceuticals,beauty aids,camera equipment,non-perishable grocery items,and automobile motor oil is an example of a retailer using:

Accepted Answer

A) cross-docking. 
B) full-service. 
C) scrambled merchandising. 
D) disintermediation.

Question 7

A Ford dealership would be classified under what form of ownership?

Accepted Answer

A) wholesaler. 
B) business-format franchise. 
C) product-distribution franchise. 
D) corporate chain.

Question 8

Maintained markup is:

Accepted Answer

A) the difference between the final selling price and the retailer cost. 
B) selling brand name merchandise at lower than regular prices. 
C) the amount added to the cost the retailer paid for a product to reach the final selling price. 
D) the amount added by the manufacturer to achieve the desired retail price.

Question 9

All of the following are aspects of Tim Hortons' strategy,as mentioned in the textbook,except:

Accepted Answer

A) provide top-quality, always fresh products 
B) good customer value 
C) continuous innovation 
D) community leadership

Question 10

To shop at Costco,you require a membership card that is purchased.Costco is an example of:

Accepted Answer

A) One price stores 
B) Specialty stores 
C) Hypermarkets 
D) Warehouse clubs

Question 11

Retailing is an important marketing activity.Not only do producers and consumers meet through retailing actions,but retailing also creates ______ and has a significant impact on the economy.

Accepted Answer

A) the nation's largest source of tax revenues 
B) public service to charities 
C) harvesting possibilities 
D) customer value

Question 12

Regional shopping centres are the suburban malls of today,containing 50 to 150 stores.The typical drawing distance is 5 to 10 miles from the mall.The centres often contain two or three ____,which are well-known national or regional stores such as Sears or Hudson's Bay.

Accepted Answer

A) general stores 
B) off-price retailers 
C) anchor stores 
D) warehouse clubs

Question 13

The largest inventory of wedding dresses in the Maritimes can be found at Low's Bridal and Formal in Halifax,Nova Scotia.The store is located in an old railroad hotel.It has high ceilings,dark woodwork,heavy chandeliers,and a lobby where customers can find refreshments and sometimes be surrounded by music that might be played at weddings.This description refers to the store's:

Accepted Answer

A) atmosphere. 
B) image. 
C) psychological attributes. 
D) antecedent attributes.

Question 14

E-tailing,the ability to shop 24 hours a day is expected to reach global sales of ________ by 2015.

Accepted Answer

A) $10 billion 
B) $20 billion 
C) $30 billion 
D) $40 billion

Question 15

You are developing a retailing strategy for a new women's clothing store.Your strategy should consider each of the following EXCEPT:

Accepted Answer

A) positioning the store based on the retail positioning matrix of breadth of product line and value added. 
B) developing a retail mix that corresponds to the neighbourhood where located. 
C) establishing a retail image that differentiates the store from its chief competitors. 
D) selecting suppliers who will offer volume and seasonal discounts.

Question 16

One of the major reasons online stores can offer lower prices than their brick-and-mortar counterparts is because they have:

Accepted Answer

A) less overhead costs 
B) larger market 
C) can offer more products 
D) faster delivery

Question 17

A massive shopping area,just off the 403 in Ancaster,Ontario,contains over 50 stores including the following: Best Buy,Future Shop,Rona,Costco,LCBO,Chapters,and Starbucks.This shopping area would be considered a(n):

Accepted Answer

A) anchor business district. 
B) regional shopping centre. 
C) community shopping centre. 
D) power centre

Question 18

Explain why direct mail has grown so rapidly in recent years.

Accepted Answer

The answer of Explain why direct mail has grown so...

Question 19

Family Dollar,Dollar General,and Dollar Tree are examples of:

Accepted Answer

A) extreme-value or single-price retailers. 
B) one-price apparel chains. 
C) outlet stores. 
D) hypermarkets.

Question 20

Explain the difference between breadth of line and depth of line.Be sure to include the definition of scrambled merchandising in your explanation.

Accepted Answer

The answer of Explain the difference between breadth of line...

Exam 15: Retailing