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Mkg > Chapter 14 > Flashcards

Chapter 14 Flashcards

1
Q

Retailing can be defined as all activities directly related to the sale of goods and services to the
ultimate consumer for personal, nonbusiness use.

A

T

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2
Q

Retailing decisions primarily target which group?
a) Manufacturers
b) Distributors
c) Suppliers
d) Final consumers (end-users)

A

D

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3
Q

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

A

C

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4
Q

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

A

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5
Q

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

A

E

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6
Q

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

A

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7
Q

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

A

D

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8
Q

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

A

C

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9
Q

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

A

B

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10
Q

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

A

B

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11
Q

Manufacturer-owned and flagship stores are primarily owned by:
a) Independent entrepreneurs
b) Franchisees
c) Manufacturers themselves
d) Government agencies

A

C

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12
Q

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

A

D

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13
Q

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

A

C

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14
Q

A retail establishment can be classified according to its ownership, level of service, product
assortment, and price.

A

T

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15
Q

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.

A

F

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16
Q

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

A

B

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17
Q

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

A

C

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18
Q

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

A

E

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19
Q

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

A

C

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20
Q

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

A

C

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21
Q

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

A

C

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22
Q

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

A

C

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23
Q

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

A

B

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24
Q

Self-service is commonly associated with which type of goods?
a) Convenience goods
b) Shopping goods
c) Specialty goods
d) Luxury goods

A

A

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25
Q

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

A

C

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26
Q

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

A

C

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27
Q

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

A

C

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28
Q

Specialty goods are typically associated with which level of service?
a) Full service
b) Self-service
c) Limited service
d) Assisted service

A

A

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29
Q

_____ 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

A

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30
Q

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

A

C

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31
Q

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

A

E

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32
Q

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

A

B

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33
Q

Co-locating with other stores, workplaces, residential areas, or areas of high traffic is beneficial for “most other stores” because:
a) It reduces competition
b) It ensures a quieter environment
c) It increases operational costs
d) It enhances exposure and accessibility

A

D

34
Q

Which scenario illustrates a suitable location for a convenience store according to the description?
a) A remote area with low foot traffic
b) Near a busy intersection or within a commercial district
c) In a secluded residential neighborhood
d) Far away from workplaces and other stores

A

B

35
Q

A retailing establishment that sells a wide variety of shopping and specialty goods, including
apparel, cosmetics, housewares, and electronics would be classified as a department store.

A

T

36
Q

Housing several departments under one roof, a _____ carries a wide variety of shopping and
specialty goods and provides a high level of service.
a. supermarket
b. specialty store
c. convenience store
d. super club
e. department store

A

E

37
Q

Which type of retail store would typically have the highest labor costs?
a. warehouse club
b. department store
c. off-price store
d. off-price retailer
e. discount store

A

B

38
Q

Department stores typically offer:
a) A narrow product selection
b) A wide and deep product mix
c) Limited departments or sections
d) Specialized products only

A

B

39
Q

What is a current trend within the department store sector?
a) Rapid growth and expansion
b) Increased profitability
c) Decline in performance
d) Dominance over online retail

A

C

40
Q

The phrase “wide and deep product mix” in relation to department stores implies:
a) Offering a limited range of products
b) Focusing on niche markets
c) Providing an extensive selection of products across various categories
d) Specializing in high-end luxury goods only

A

C

41
Q

Why might the department store sector be facing challenges?
a) Due to a lack of innovation and modernization
b) A shift in consumer preferences towards online shopping
c) Decline in consumer spending
d) Increased competition from specialty stores

A

B

42
Q

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.

A

F. Specialty stores have narrow product assortments and moderate to high prices.

43
Q

Which type of retail store specializes in a given type of merchandise?
a. independent store
b. department store
c. discount store
d. specialty store
e. first-level store

A

D

44
Q

James wants to open a small store that offers only products, knowledge and advice for those who
like to build Hot Rods, Street Rods, and refurbish classic cars. Which of the following types of
stores would most likely support an effective launch of his business idea?
a. off-price retailer
b. specialty store
c. full-discount store
d. general store
e. warehouse club

A

B

45
Q

Texas-based Grape Vine Market is an 18,000-square-foot store offering highly collectible food
and wine—along with some other culinary perks, including a cooking school—all in a setting
crafted to make shoppers feel comfortable. It stocks more than 5,500 different kinds of wine.
Grape Vine Market is best described as a:
a. hypermarket
b. convenience store
c. specialty store
d. department store
e. general store

A

C

46
Q

Which of the following types of stores has a high gross margin, a narrow product assortment, and
a high level of service?
a. supermarket
b. warehouse club
c. convenience store
d. full-line discount store
e. specialty store

A

E

47
Q

Specialty retailers typically focus on:
a) Offering a wide range of product categories
b) Providing generic products with limited variety
c) Specific product categories with a narrow but deep assortment
d) Selling products at discounted prices

A

C

48
Q

Supermarkets are self-service retailers that specialize in food and food products although many
now carry nonfood items as well.

A

T

49
Q

_____ are large, departmentalized, self-service retailers that specialize in wide assortments of
foodstuffs and a few nonfood items.
a. Supermarkets
b. Convenience stores
c. Membership wholesale clubs
d. Discount stores
e. Assortment merchandisers

A

A

50
Q

Giant Eagle is a chain of retail outlets in Ohio, West Virginia, Maryland, and Pennsylvania
markets that are described as large, departmentalized, self-service stores that specialize in wide
assortments of foodstuffs and limited nonfood items. Giant Eagle stores are:
a. off-price retailers
b. discount stores
c. wholesale clubs
d. convenience stores
e. supermarkets

A

E

51
Q

What is the primary focus of drug stores in terms of their product mix?
a) Offering a wide range of general merchandise
b) Providing a narrow assortment of products
c) Specializing in pharmaceuticals and over-the-counter medicine
d) Selling exclusively convenience products

A

A

52
Q

Which types of products are typically emphasized in drug stores?
a) Luxury goods
b) Pharmaceuticals and over-the-counter medicine
c) Electronics and appliances
d) Clothing and apparel

A

B

53
Q

Compared to supermarkets, how do drug stores typically fare in terms of pricing?
a) They offer lower prices
b) They charge similar prices
c) They charge more
d) Pricing varies widely based on location

A

C

54
Q

What distinguishes drug stores from other types of retailers in terms of their product assortment?
a) They offer a broader assortment of products
b) They focus exclusively on convenience products
c) They specialize in pharmaceuticals and health-related items
d) They sell primarily luxury good

A

C

55
Q

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

A

F. Discount stores compete on the basis of low prices, high turnover, and high volume. The strategy
in the example describes a convenience store.

56
Q

Flash Foods is the name of a chain of small stores, which carry high-turnover products such as lip
balm, milk, soda, beer, bread, and aspirin. Flash Foods stores are open all day every day and
would best be classified as convenience stores.

A

T

57
Q

_____ carry a limited line of high-turnover, high-priced goods and resemble miniature
supermarkets. These self-service stores are typically located near residential areas and are open
long hours, seven days a week.
a. Specialty stores
b. Wholesale stores
c. Convenience stores
d. Factory outlets
e. General stores

A

C

58
Q

Prices are usually higher in convenience stores than in supermarkets because convenience stores
offer:
a. more specialty goods
b. a wider variety of products
c. a higher level of customer services
d. better location, longer hours, and faster
service
e. higher quality goods

A

D

59
Q

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

A

B

60
Q

What is a characteristic of convenience stores regarding their product mix?
a) Narrow and deep assortment
b) Wide and deep assortment
c) Moderately wide but shallow assortment
d) Extremely limited product selection

A

C

61
Q

What type of goods are typically prioritized in convenience stores?
a) Luxury goods
b) High-turnover convenience and impulse goods
c) Specialized products
d) Bulk goods

A

B

62
Q

_____ are retailers that compete on the basis of low prices, high turnover, and high volume.
a. Convenience outlets
b. Discount stores
c. General stores
d. Department stores
e. Specialty stores

A

B

63
Q

Discount stores:
a. compete on the basis of low prices, high
turnover, and high volume
b. offer more SKUs than department stores
c. sell high-priced, low-turnover products
d. provide their customers with full service
e. compete on the basis of assortment and depth

A

A

64
Q

What distinguishes discount stores or mass merchandisers in terms of their pricing strategy?
a) They offer products at regular prices
b) They provide high-end luxury goods
c) They offer a vast selection of products at discounted prices
d) They have limited product variety

A

C

65
Q

What is a notable characteristic of the product mix in discount stores?
a) Narrow assortment with limited options
b) Limited product categories
c) Extensive product mix with both width and depth
d) High-end luxury goods only

A

C

66
Q

What type of service is typically provided in discount stores?
a) High level of service
b) Personalized service
c) Limited service
d) Full-service assistance

A

C

67
Q

_____ sell a limited selection of brand-name appliances, household items, and groceries, usually
in bulk on a cash-and-carry basis to members only.
a. Super outlets
b. Factory outlets
c. Wholesale discounters
d. Off-price discount retailers
e. Warehouse membership clubs

A

E

68
Q

Katie buys supplies for her consulting 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. Katie is most likely shopping at a(n):
a. off-price discount retailer
b. factory outlet
c. industrial supply warehouse
d. warehouse membership club
e. wholesale outlet

A

D

69
Q

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):
a. off-price discount retailer
b. factory outlet
c. industrial supply warehouse
d. warehouse membership club
e. wholesale outlet

A

D

70
Q

What characterizes the product mix in warehouse membership stores?
a) Narrow and deep assortment
b) Wide but very shallow assortment
c) Limited variety with high margins
d) Specialized luxury goods

A

B

71
Q

What is a key factor driving profitability for warehouse membership stores?
a) High prices per unit
b) Membership fees
c) Selling products with high margins
d) Limited selection of products

A

B

72
Q

What distinguishes warehouse membership stores in terms of pricing?
a) They offer products at premium prices
b) They have the highest prices per unit among retailers
c) They usually offer the lowest price per unit
d) They maintain high profit margins on all products

A

C

73
Q

_____ is a low-profile, yet important, form of retailing in which consumers get products out of
automated machines, and it accounts for $40 billion worth of sales each year in the United States.
a. Automatic vending
b. Party-plan selling
c. Direct marketing
d. A pyramid scheme
e. Professional selling

A

A

74
Q

What characterizes the product mix in automatic vending machines?
a) Wide and deep assortment
b) Narrow and deep assortment
c) Very narrow and very shallow assortment
d) Limited to only one product category

A

C

75
Q

What is a notable feature that contributes to the appeal of automatic vending machines?
a) High levels of customer service
b) Wide product variety
c) Convenience of location and operating hours
d) Personalized shopping experience

A

C

76
Q

Marketers who use nonstore retailing no longer have to worry about the “place” element of the
four Ps

A

F. Nonstore retailing refers to shopping without visiting a store; however, products must still be
distributed to end users, whether by vending, in-home retailing, or direct marketing

77
Q

____ 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.
a. Nonstore vending
b. In-home retailing
c. Franchising
d. Direct marketing
e. Direct retailing

A

D

78
Q

____ is the use of a telephone to sell directly to customers.
a. Telemarketing
b. Two-way vending
c. Teleprompting
d. Indirect marketing
e. Phone vending

A

A

79
Q

Electronic retailing includes the 24 hour, shop-at-home television networks and online retailing.

A

T

80
Q

. What method of nonstore retailing does Apple take advantage of through
the use of its Web site?
a. telemarketing
b. automatic vending
c. direct mail
d. catalogs and mail orders
e. electronic retailing

A

E

81
Q
A

Mkg (22 decks)

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