Question 1

Which U.S.retailer is the number one sales volume retailer in the world?

Accepted Answer

A)  Sears 
B)  JCPenney 
C)  Target 
D)  Kroger 
E)  Wal-Mart.

Question 2

_____ is the use of a telephone to sell directly to customers.

Accepted Answer

A)  Telemarketing 
B)  Two-way vending 
C)  Teleprompting 
D)  Indirect marketing 
E)  Phone vending

Question 3

Wal-Mart
Wal-Mart, the world's largest retailer by revenue, announced that it will get back to its founder's roots by initiating more price cuts. Critics claimed that the giant was getting away from its original focus because it posted relatively high gross profit margins. CEO Mike Duke assuaged critics by saying Wal-Mart's $400 billion in sales will become even larger because the price cuts will attract more customers and it will lower its costs of goods sold.
-Refer to Wal-Mart. Which type of pricing strategy describes Wal-Mart's commitment to offer consistently lower prices?

Accepted Answer

A)  high-low pricing 
B)  everyday low pricing (EDLP) 
C)  promotional pricing 
D)  prestige pricing 
E)  marginal pricing

Question 4

Lancôme is a manufacturer of fine perfumes.It offers to share the costs (up to 5 percent of the amount of products purchased by the retailer)of advertising with any retailer that carries its line of fragrances.This is an illustration of:

Accepted Answer

A)  specialty promotion 
B)  cooperative advertising 
C)  comparative advertising 
D)  shared advertising 
E)  advertising advocacy

Question 5

A typical discount store competes by carrying a limited line of high-turnover,high-margin goods.

Accepted Answer

A) True 
 B)False

Question 6

A retailer in Winnsboro,Louisiana,is licensed to sell John Deere tractors. This retailer is a:

Accepted Answer

A)  product and trade name franchisee 
B)  restricted franchisor 
C)  business format franchisee 
D)  licensed franchisor 
E)  relationship franchisee

Question 7

Diaz
John Diaz immigrated to Tallahassee from Cuba in the 1980s. He set up a coffee shop called Diaz in a small upper-middle-class neighborhood. It rapidly became popular because of the wonderful coffee it brewed. Soon Diaz was selling the finest coffees from around the world, plus coffee-making necessities such as grinders and brewers. Within ten years, Diaz was operating a lucrative mail-order business in addition to his coffee shop.
Upon entering the shop, the first thing the customer sees is a countertop crowded with all of the machinery needed for making a perfect cup of coffee. Marble-topped tables are set in cozy nooks with overstuffed chairs. Bookshelves on one wall hold books about coffee for patrons to read while they sip. The smell is intoxicating to a real coffee lover. Coffee drinkers can take home a pound when they leave. The store carries all types of coffee from $300 per pound Kopi Luwak from Sumatra to Brazilian Cerrado for $8 a pound.
-Refer to Diaz.The type of merchandise carried by Diaz is deep but with a narrow assortment.The store would most likely be classified as a:

Accepted Answer

A)  convenience store 
B)  mass merchandiser 
C)  specialty store 
D)  category killer 
E)  membership club

Question 8

Discount stores are retail chains that compete on the basis of low prices,high turnover,and high volume.Name and briefly describe four types of discounters,and give an example of each type.

Accepted Answer

The answer of Discount stores are retail chains that compete...

Question 9

Which type of retail store specializes in a given type of merchandise?

Accepted Answer

A)  independent store 
B)  department store 
C)  discount store 
D)  specialty store 
E)  first-level store

Question 10

The Cedar Store carries a full line of cedar swings,gliders,garden benches,and tables.All of its products can be purchased through its Web site.The site has done well since the Cedar Store's products do not need to be touched or smelled before purchase.The Cedar Store is engaging in:

Accepted Answer

A)  online retailing 
B)  shop-at-home networking 
C)  mobile vending 
D)  franchising 
E)  electronic wholesaling

Question 11

Which type of discount store offers consumers very limited service and carries a broad assortment of nationally branded hard goods,such as housewares,toys,automotive parts,clothing,bedding,and maybe a limited line of nonperishable food items?

Accepted Answer

A)  full-line discount stores 
B)  discount specialty stores 
C)  factory outlets 
D)  fashion stores 
E)  specialty supercenters

Question 12

Small neighborhood florists,shoe stores,and ethnic food markets are most likely to be:

Accepted Answer

A)  supercenters 
B)  franchise outlets 
C)  membership clubs 
D)  chain stores 
E)  independent retailers

Question 13

After defining and selecting a target market,retailers must develop the six Ps of the retailing mix to successfully meet the needs of the chosen target market.What are the six Ps of the retailing mix?

Accepted Answer

The answer of After defining and selecting a target market,retailers...

Question 14

Apple Stores
Apple Inc. opened its first Apple Store in 2001 and currently has hundreds of stores spanning several countries. Many of the Apple Stores are inside malls, but Apple also has several free standing stores they call their flagship stores, with each looking a little different on the outside. These are located in New York City, Boston, Los Angeles, Chicago, San Francisco, Montreal, Tokyo, and Osaka.
The store in New York City is a glass cube with a glass cylindrical elevator and spiral staircase that leads to an underground store. Inside they have long tables displaying products ranging from the iMac, MacBook Air, iPods, printers, cameras, and other accessories. All these products are accessible to customers who can try them out and ask various questions of informed associates. The walls are mostly metallic and the signs are all backlit.
All stores have a Genius Bar where a customer can receive technical advice or set up service and repair for their products. To address the needs of the many iPod users, some stores, such as the New York store, have set up a separate iPod Bar where customers can get their own technical assistance. They also have an iMac station for kids who want to try out games and learning products and a theatre for workshops, product training sessions and special presentations.
Apple introduced the handheld Easy Pay system where customers don't have to wait in line to purchase products and with a simple click of a paperless, handheld credit card scanner, the employee brings the cash register to the customer. Items can be rung up anywhere on the show room floor. Apple plans to open several more stores in the years to come.
Apple also has its online store. At its web site a customer can order any Mac or iPod product, plus a large variety of accessories. In addition to its product offerings, a customer can watch a demonstration of how products work or check out the latest Mac ads or news.
-Refer to Apple Stores.What method of nonstore retailing does Apple take advantage of through the use of its Web site?

Accepted Answer

A)  telemarketing 
B)  automatic vending 
C)  direct mail 
D)  catalogs and mail orders 
E)  electronic retailing

Question 15

There are several types of retail stores,each offering a different product assortment,service level,and price level,according to the shopping preferences of its customers.Name eight types of retailers.For each type,indicate the level of service,price level,and width of product assortment.

Accepted Answer

The answer of There are several types of retail stores,each...

Question 16

Flash Foods is the name of a chain of convenience stores with self-service gas pumps.What do you know about the convenience stores?

Accepted Answer

A)  They carry a wide assortment of products 
B)  They carry a limited line of high-turnover goods 
C)  They compete on the basis of low price 
D)  They carry a limited but deep assortment of products 
E)  They carry the freshest of produce

Question 17

Tiffany owns a gift shop that carries clothing and memorabilia of local high school teams as well as home decor objects. She is the sole owner of the store,so in terms of ownership,her store would be classified as a(n):

Accepted Answer

A)  independent retailer 
B)  free-standing store 
C)  franchise 
D)  chain store 
E)  common retailer

Question 18

Which type of retailing is the selling of products by representatives who work door-to-door,office-to-office,or at home parties?

Accepted Answer

A)  personal marketing 
B)  remote retailing 
C)  direct retailing 
D)  off-site retailing 
E)  primary retailing

Question 19

A common practice among most retailers that seeks to broaden customers' original purchases with related items is called:

Accepted Answer

A)  suggestion selling 
B)  trading up 
C)  bait and switch 
D)  comprehensive selling 
E)  interactive selling

Question 20

Well-known manufacturers such as Bose,Ralph Lauren,and Reebok have decided the most profitable way to dispose of out-of-season and irregular stock is to open stores and sell their own merchandise.These stores are types of:

Accepted Answer

A)  seasonal outlets 
B)  mass merchandisers 
C)  factory outlets 
D)  discount stores 
E)  bargain basements

Exam 15: Retailing