Question 1

_____ is the retailing strategy of setting moderate to low prices on large quantities of products and utilizing promotion to stimulate a high turnover of inventory.

Accepted Answer

A)  Specialty store positioning 
B)  Merchandise positioning 
C)  M-store retailing 
D)  The wheel of retailing 
E)  Mass merchandising

Question 2

The most predominant aspect of the store's presentation is its _____,or the overall impression conveyed by the store's physical layout,decor,and surroundings.

Accepted Answer

A)  merchandise depth 
B)  location 
C)  price strategy 
D)  atmosphere 
E)  total merchandise mix

Question 3

Sunni received a phone call last night during supper.The caller wanted her to subscribe to a travel magazine.Since Sunni had never thought of purchasing this type of magazine before she received the call,this is obviously an example of _____ telemarketing.

Accepted Answer

A)  outbound 
B)  field sales 
C)  qualifying 
D)  inbound 
E)  relationship

Question 4

SCENARIOS
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 Golden Video.Golden Video can best be described as a:

Accepted Answer

A)  franchise 
B)  wholesaler 
C)  distributor 
D)  retailer 
E)  department

Question 5

Laura buys supplies for her catering business at a retailer that stocks a limited selection of items,which are sold in bulk on a cash-and-carry basis to members only.As she browses through a huge store,she buys flour,a set of muffin pans,and a package of paper towels as well as an assortment of fresh produce.Laura is most likely shopping at a(n):

Accepted Answer

A)  off-price discount retailer 
B)  factory outlet 
C)  industrial supply warehouse 
D)  warehouse membership club 
E)  wholesale outlet

Question 6

Supercenters are more than just larger versions of traditional "markets." In addition to foodstuffs,supercenters have pharmacies,dry cleaners,portrait studies,photo finishing,hair salons,and restaurants.

Accepted Answer

A) True 
 B)False

Question 7

Albertson's,Kroger,Winn-Dixie,and other supermarket chains offer a variety of nontraditional goods and services such as video rental,flower shops,dry cleaning,and banking.This practice is called:

Accepted Answer

A)  convenience merchandising 
B)  retail wheeling 
C)  specialty service 
D)  trade-up positioning 
E)  scrambled merchandising

Question 8

Which of the following statements about nonstore retailing is true?

Accepted Answer

A)  The nature of the communications between the retailer and the customer is the same in all forms of nonstore retailing. 
B)  Nonstore retailers is currently growing faster than in-store retailing. 
C)  More than 80 percent of all sales are made through nonstore retailing. 
D)  The high growth rate for nonstore retailing is due to the growth of TV home shopping 
E)  Nonstore retailing is increasing at a rate lower than in-store retailing.

Question 9

Interactivity is one of the new developments in retailing.In retailing,interactivity refers to:

Accepted Answer

A)  the use of improved communications with customers 
B)  a new form of customer relationship marketing 
C)  entertainment for customers to get them involved 
D)  the use of information kiosks 
E)  the creation of a static atmosphere

Question 10

Lorenzo Michaelson owns a small chain of retail outlets that are described as large,departmentalized,self-service stores that specialize in wide assortments of foodstuffs and limited nonfood items.Michaelson's stores are:

Accepted Answer

A)  off-price retailers 
B)  discount stores 
C)  wholesale clubs 
D)  convenience stores 
E)  supermarkets

Question 11

In an example of _____,Winn-Dixie supermarkets collaboratively marketed and sold Jimmy Dean sausage for half price.Consumers were invited to go to their nearest Winn-Dixie store to take advantage of the savings being offered on Jimmy Dean sausage.

Accepted Answer

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

Question 12

_____ refers to shopping without visiting a store and is currently growing faster than in-store shopping because of the consumer demand for convenience.

Accepted Answer

A)  Nonstore retailing 
B)  Customerization 
C)  Hypershopping 
D)  Niche marketing 
E)  Specialty merchandising

Question 13

_____ refers to the techniques used to get consumers to buy from their home.Those techniques include direct mail,catalogs and mail order,telemarketing,and electronic retailing.

Accepted Answer

A)  Nonstore vending 
B)  In-home retailing 
C)  Franchising 
D)  Direct marketing 
E)  Direct retailing

Question 14

Which group is targeted market by lifestyle centers?

Accepted Answer

A)  teenagers who don't drive 
B)  consumers on a fixed income 
C)  laggards 
D)  time-poor consumers 
E)  people who engage in cocooning

Question 15

To ensure that a firm has the desired atmosphere,retailers must select appropriately dense employees with lots of character.

Accepted Answer

A) True 
 B)False

Question 16

Kmart utilizes a strategy of setting moderate to low prices on large quantities of products,and then uses substantial amounts of promotion to stimulate a high turnover of inventory.Kmart offers a wide variety of different product lines.Kmart is an example of a:

Accepted Answer

A)  factory outlet 
B)  mass merchandiser 
C)  convenience store 
D)  franchising operation 
E)  specialty store

Question 17

One of the new developments in retailing is m-commerce.M-commerce refers to the ability to:

Accepted Answer

A)  use unique communication techniques to send advertising messages 
B)  create situations in which the AIDA technique is effective 
C)  to more efficiently manage customer demand with inventory 
D)  shop using wireless mobile devices 
E)  motivate consumers to buy more by creating more feedback channels

Question 18

When retailers decide on location,they have two basic site options,which are the freestanding store and the shopping center.Briefly describe these location alternatives.Cite one advantage and one disadvantage of each location alternative..

Accepted Answer

The answer of When retailers decide on location,they have two...

Question 19

_____ place a diverse group of retailers together in one location.This form of retail location first became popular in the 1950s when the U.S.population started migrating to the suburbs.

Accepted Answer

A)  Freestanding lifestyle centers 
B)  Shopping centers 
C)  Mass merchandising centers 
D)  Scrambled merchant areas 
E)  Mega-malls

Question 20

Which of the following groups is most likely to be the target market for extreme-value retailers?

Accepted Answer

A)  teenagers 
B)  professionals who like bargains 
C)  Asian-Americans 
D)  middle class innovators 
E)  people who are on fixed incomes

Exam 13: Retailing