Chapter 14 Flashcards
Retailing can be defined as all activities directly related to the sale of goods and services to the
ultimate consumer for personal, nonbusiness use.
T
Retailing decisions primarily target which group?
a) Manufacturers
b) Distributors
c) Suppliers
d) Final consumers (end-users)
D
Which type of retail ownership is owned and operated by an individual but is licensed by a larger
supporting organization?
a. independent retailer
b. chain store
c. franchise
d. cooperative
e. secondary retailer
C
Around the world, most retailers are _____, operating one or a few stores in their community,
owned by a single person or partnership and not operated as part of a larger retail institution.
a. independent retailers
b. chain stores
c. franchise outlets
d. specialty clubs
e. product assortment stores
A
Small neighborhood florists, shoe stores, and ethnic food markets are most likely to be:
a. supercenters
b. franchise outlets
c. membership clubs
d. chain stores
e. independent retailers
E
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):
a. independent retailer
b. free-standing store
c. franchise
d. chain store
e. common retailer
A
Retail stores that are owned and operated as a group by a single organization are called _____.
Under this form of ownership, administrative and purchasing tasks are handled by the home
office.
a. home base stores
b. independent retailers
c. franchisees
d. chain stores
e. strip centers
D
Rick owns and operates his own UPS shipping store. He has licensed the right to use UPS’s
business systems. Rick’s shipping store is a:
a. doubly managed outlet
b. chain store
c. franchise
d. independent retailer
e. licensor
C
In terms of ownership, Wal-Mart would be classified as a(n):
a. independent retailer
b. chain store
c. franchise
d. discount store
e. department store
B
In terms of ownership, which of the following best describes Apple stores?
a. independent retailer
b. chain stores
c. franchises
d. pop-up shop
e. department stores
B
Manufacturer-owned and flagship stores are primarily owned by:
a) Independent entrepreneurs
b) Franchisees
c) Manufacturers themselves
d) Government agencies
C
What is a defining characteristic of vertically integrated retail stores?
a) They are owned by multiple manufacturers
b) They are owned and operated by different entities
c) They operate independently of the manufacturing process
d) They are owned by companies that control the entire supply chain from production to retail
D
Manufacturer-owned and flagship stores serve which primary purposes?
a) Maximizing profit through high-volume sales
b) Providing a platform for independent retailers
c) Showcasing innovation, building brand loyalty, and gathering marketing intelligence
d) Acting solely as distribution centers for products
C
A retail establishment can be classified according to its ownership, level of service, product
assortment, and price.
T
Emily has just opened a health food store that sells organic foods, herbal supplements, and
environmentally-friendly products. Because it will be a specialty store, she should have a broad
product assortment with moderately low prices.
F
Retail establishments are generally classified according to all of the following EXCEPT:
a. ownership
b. level of sales
c. level of service
d. price
e. product assortment
B
A retail store can be classified according to its:
a. distribution method
b. inventory control
c. product assortment
d. management style
e. decor and atmosphere
C
The number of different varieties of fishing lures carried by the Angler’s Store refers to the
store’s:
a. store’s supply standard
b. complete retail offering
c. retail mix
d. volume
e. assortment depth
E
Why is it important for retailers to define their target market in relation to product assortment?
a) To limit the number of products offered
b) To maximize profit margins
c) To create a meaningful product mix
d) To minimize competition from other retailers
C
Which factor primarily influences the product assortment in retail stores?
a) The number of competitors in the market
b) The size of the store’s physical space
c) The demographics and preferences of the target market
d) The availability of products from manufacturers
C
Pricing in retail plays a crucial role in:
a) Maximizing profit margins
b) Reducing sales volume
c) Building brand recognition and market position
d) Minimizing customer satisfaction
C
Different retail stores often adopt distinct pricing strategies based on:
a) Their geographical location
b) The number of employees they have
c) Their target market and brand identity
d) The size of their product assortment
C
Which level of service involves customers browsing aisles and bringing items to the checkout, sometimes even utilizing self-checkout options?
a) Full service
b) Self-service
c) Limited service
d) Assisted service
B
Self-service is commonly associated with which type of goods?
a) Convenience goods
b) Shopping goods
c) Specialty goods
d) Luxury goods
A
In which level of service are employees available to assist customers when needed, and are knowledgeable about the products?
a) Full service
b) Self-service
c) Limited service
d) Assisted service
C
Full service typically involves employees actively engaging with customers, providing personalized assistance, and showcasing products. This level of service is commonly found in which type of establishments?
a) Grocery stores
b) Clothing stores
c) Jewelry stores
d) Electronics stores
C
Which level of service restricts customers from handling products without permission, with staff often involved in every step of the purchasing process?
a) Self-service
b) Limited service
c) Full service
d) Assisted service
C
Specialty goods are typically associated with which level of service?
a) Full service
b) Self-service
c) Limited service
d) Assisted service
A
_____ are stores that consumers purposely plan to visit. They are often built as freestanding
stores.
a. Destination stores
b. Benefit retailers
c. Relationship builders
d. Lifestyle stores
e. M-stores
A
When JCPenney announced it would open a 97,000-plus square foot anchor store in the new West
Grand Promenade, it meant that JCPenney would be:
a. the only large store in the shopping center
b. a destination store
c. expected to create heavy foot traffic for the
center
d. in an isolated location outside the shopping
center structure
e. unable to control the local store’s pricing
policies
C
Some shoppers purposely plan to visit the Apple store on Fifth Avenue in
New York City, which is characteristic of:
a. generator stores
b. lifestyle stores
c. interactive stores
d. m-stores
e. destination stores
E
Anchor stores (or generator stores):
a. are the stores within the mall that sell services
rather than products
b. are often large department stores that are
located at opposite ends of a mall to create a
heavy pedestrian traffic flow
c. usually specialize in high-priced items like
furniture
d. is the generic name given to supermarkets that
are located within shopping malls
e. is a term for retail stores that “drop off” to
freestanding locations
B