Question 1

TJ Maxx,a discount apparel and home decor store,recently added an online retail option.It cautiously promoted this online shopping outlet because the company was concerned that online shopping might decrease in-store sales.TJ Maxx wanted to minimize ______.

Accepted Answer

A)   microtargeting
B)   brand cannibalization
C)   retail mixing
D)   retail channel omnificationE) B) and D)
F) C) and D)

Question 2

In addition to making shopping easy and convenient for the customer,an effective layout:

Accepted Answer

A)   heightens the olfactory sense of the customers.
B)   provides customers with the ability to easily replace sold items.
C)   can persuade customers to purchase expensive products.
D)   has a powerful influence on traffic patterns and purchasing behavior.E) All of the above
F) A) and C)

Question 3

Determining a target market is optional while creating the retailing mix.

Accepted Answer

A) True 
 B)False

Question 4

A _____ is the originator of a trade name,product,methods of operation,and the like that grants operating rights to another party to sell its product.

Accepted Answer

A)   broker
B)   franchisor
C)   consumer
D)   wholesalerE) B) and D)
F) B) and C)

Question 5

Which of the following is a difference between off-price retailers and specialty shops?

Accepted Answer

A)   Off-price retailers keep a greater amount of floor stock,whereas specialty shops keep a lower amount of floor stock.
B)   Off-price retailers charge customers higher prices,whereas specialty shops charge customers lower prices.
C)   Off-price retailers focus on lean inventory management,whereas specialty shops have an agile approach to inventory.
D)   Off-price retailers focus on providing high-quality customer service,whereas specialty shops de-emphasize customer service.E) A) and B)
F) A) and C)

Question 6

Floor stock refers to the inventory held in reserve for potential future sale in a retailer's storeroom or stockroom.

Accepted Answer

A) True 
 B)False

Question 7

Gross margin is how much the retailer makes as a percentage of ______.

Accepted Answer

A)   profit after the discount on the goods sold is subtracted
B)   sales after the cost of the goods sold is subtracted
C)   sales after the discount on the goods sold is added
D)   the cost of all goods after the profit is subtractedE) A) and D)
F) A) and B)

Question 8

Social networking sites such as Facebook,Instagram,and Twitter enable users to immediately purchase items recommended by their social connections,a phenomenon known as ______.

Accepted Answer

A)   e-tailing
B)   sharing economy
C)   microtargeting
D)   social shoppingE) A) and C)
F) A) and B)

Question 9

Which customer behavior has motivated retailers to reduce the amount of stock kept on hand,rent or lease smaller spaces,and ramp up their fulfillment capabilities at distribution centers?

Accepted Answer

A)   Customers visit an online retail store to examine product features or quality,but then eventually make the purchase in a physical store.
B)   Customers visit a physical retail store to examine product features or quality firsthand,but then eventually make the purchase online.
C)   Customers visit an online retail store to buy a single product but eventually buy several related items that are not often stocked in a physical store.
D)   Customers visit a physical retail store to buy a single product but eventually buy several related items that are not often stocked in an online store.E) A) and B)
F) A) and C)

Question 10

Which type of retailer generally has a medium-to-broad product assortment,while the others typically have a broad product assortment?

Accepted Answer

A)   Department stores
B)   Warehouse clubs
C)   Supermarkets
D)   Full-line discount storesE) C) and D)
F) B) and D)

Question 11

Henry runs Moonlight Café,a world-renowned,fast-food restaurant,in his locality.He started the restaurant after getting a license from Moonlight Café and by regularly paying a fee for the right to use its brand name,products,and methods of operation.Henry most likely operates a(n) _____.

Accepted Answer

A)   independent retail store
B)   warehouse club
C)   chain store
D)   franchiseE) A) and C)
F) A) and D)

Question 12

Specialty stores such as Best Buy,Staples,and GameStop have the thinnest product assortments,usually carrying single or narrow product lines that are considerably deep.Specialty stores compete on the basis of low prices,high turnover,and high volume.

Accepted Answer

A) True 
 B)False

Question 13

Which of the following represents the thinking behind supercenters?

Accepted Answer

A)   They offer a nearly complete selection of merchandise within a single category and use self-service,discount prices,high volume,and high turnover to their advantage.
B)   They sell overruns,irregular merchandise,and/or overstocks purchased from manufacturers at or below cost.
C)   They sell items from a full-line discount stock to customers who are drawn in primarily by the food on sale.
D)   They specialize in a single line of merchandise and become the dominant retailer in its category.E) C) and D)
F) A) and B)

Question 14

Shopper marketing is responsible for the decline of the partnership trend between brand manufacturers and specific retailers.

Accepted Answer

A) True 
 B)False

Question 15

Unlike nonstore retailing,in-store retailing enables customers to shop without visiting a physical store location.

Accepted Answer

A) True 
 B)False

Question 16

The technology involved in RFID (Radio Frequency Identification) has traditionally been used to ______.

Accepted Answer

A)   track items that customers pick up during the course of their shopping
B)   manage inventory prior to items reaching the sales floor
C)   create instant promotion for the specific item in a customer's hand
D)   conduct market surveys to help redistribution across geographiesE) A) and C)
F) B) and D)

Question 17

Both Goodwill stores and thredUP ______.

Accepted Answer

A)   are online used goods retailers
B)   are brick-and-mortar used goods retailers
C)   turn customers into suppliers
D)   turn suppliers into customersE) A) and B)
F) B) and C)

Question 18

Redoubt Nation,a specialty store that sells adventure sports gears,employs one salesperson per customer.Each salesperson is required to influence customers to purchase items related to the products they have purchased.In this scenario,Redoubt Nation is using _____ as its marketing strategy.

Accepted Answer

A)   low employee density
B)   suggestion selling
C)   merchandise type
D)   trading upE) All of the above
F) A) and B)

Question 19

Destination stores are very likely to be profitable even in isolated locations.

Accepted Answer

A) True 
 B)False

Question 20

One risk of executing a store promotion that results in brand cannibalization is that the promotion could ______.

Accepted Answer

A)   create inaccurate sales forecasts for both the promoted and cannibalized products.
B)   create inaccurate sales forecasts for the promoted product and none for the cannibalized products.
C)   increase the accuracy of the sales forecasts for both the promoted and cannibalized products.
D)   create accurate sales forecasts for the promoted product and none for the cannibalized products.E) All of the above
F) A) and C)

Exam 14: Retailing

Specialty stores such as Best Buy,Staples,and GameStop have the thinnest product assortments,usually carrying single or narrow product lines that are considerably deep.Specialty stores compete on the basis of low prices,high turnover,and high volume.

Correct AnswerverifiedShow Answer

The technology involved in RFID (Radio Frequency Identification) has traditionally been used to ______.

Correct AnswerverifiedShow Answer

Shopper marketing is responsible for the decline of the partnership trend between brand manufacturers and specific retailers.

Correct AnswerverifiedShow Answer

Destination stores are very likely to be profitable even in isolated locations.

Correct AnswerverifiedShow Answer

TJ Maxx,a discount apparel and home decor store,recently added an online retail option.It cautiously promoted this online shopping outlet because the company was concerned that online shopping might decrease in-store sales.TJ Maxx wanted to minimize ______.

Correct AnswerverifiedShow Answer

One risk of executing a store promotion that results in brand cannibalization is that the promotion could ______.

Correct AnswerverifiedShow Answer

Which type of retailer generally has a medium-to-broad product assortment,while the others typically have a broad product assortment?

Correct AnswerverifiedShow Answer

Unlike nonstore retailing,in-store retailing enables customers to shop without visiting a physical store location.

Correct AnswerverifiedShow Answer

A _____ is the originator of a trade name,product,methods of operation,and the like that grants operating rights to another party to sell its product.

Correct AnswerverifiedShow Answer

Gross margin is how much the retailer makes as a percentage of ______.

Correct AnswerverifiedShow Answer

Both Goodwill stores and thredUP ______.

Correct AnswerverifiedShow Answer

In addition to making shopping easy and convenient for the customer,an effective layout:

Correct AnswerverifiedShow Answer

Henry runs Moonlight Café,a world-renowned,fast-food restaurant,in his locality.He started the restaurant after getting a license from Moonlight Café and by regularly paying a fee for the right to use its brand name,products,and methods of operation.Henry most likely operates a(n) _____.

Correct AnswerverifiedShow Answer

Which customer behavior has motivated retailers to reduce the amount of stock kept on hand,rent or lease smaller spaces,and ramp up their fulfillment capabilities at distribution centers?

Correct AnswerverifiedShow Answer

Social networking sites such as Facebook,Instagram,and Twitter enable users to immediately purchase items recommended by their social connections,a phenomenon known as ______.

Correct AnswerverifiedShow Answer

Determining a target market is optional while creating the retailing mix.

Correct AnswerverifiedShow Answer

Which of the following is a difference between off-price retailers and specialty shops?

Correct AnswerverifiedShow Answer

Redoubt Nation,a specialty store that sells adventure sports gears,employs one salesperson per customer.Each salesperson is required to influence customers to purchase items related to the products they have purchased.In this scenario,Redoubt Nation is using _____ as its marketing strategy.

Correct AnswerverifiedShow Answer

Which of the following represents the thinking behind supercenters?

Correct AnswerverifiedShow Answer

Floor stock refers to the inventory held in reserve for potential future sale in a retailer's storeroom or stockroom.

Correct AnswerverifiedShow Answer

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