MARK 3336 Chapter 13

A ________ contains between 15 and 50 retail stores, including a department or variety store, a supermarket, specialty stores, professional offices, and sometimes a bank. A) community shopping center B) neighborhood shopping center C) strip mall D) regional shopping center E) power center

A

A ________ is a small store, located near a residential area that is open long hours seven days a week and carries a limited line of high-turnover goods. A) convenience store B) chain store C) department store D) supermarket E) specialty store

A

A ________ is a wholesaler-sponsored group of independent retailers that engages in group buying and common merchandising. A) voluntary chain B) retailer cooperative C) franchise D) wholesale club E) warehouse club

A

As discount stores traded up, ________ have filled the ultra low-price, high-volume gap by buying at less-than-regular wholesale prices and charging consumers less than retail. A) off-price retailers B) specialty stores C) convenience stores D) chain stores E) supercenters

A

At Neiman Marcus, a first-class department store, customers shop for high-end products and they are assisted in every phase of the shopping process. Neiman Marcus is a ________. A) full-service retailer B) limited-service retailer C) self-service retailer D) specialty store E) superstore

A

In the 1970s, Shipshewana was only a small town with a hardware store, a grain mill, a shoe store, a small restaurant, and a grocery store. Over the next two decades, the small town transformed into an international tourist attraction, attracting thousands of tourists who were intrigued by the lifestyle of Shipshewana's largest population-the Amish. Ben and Mary Miller, having grown up within the Amish faith, decided to capitalize on their town's popularity and their woodworking skills. Their shop, Indiana Wood, began with a small display of handmade hickory rocking chairs, Ben Miller's specialty. But within a few months, the display at Indiana Wood included picnic tables, flower boxes, and small handmade novelty items. No other shop offers the same variety. Mary Miller decorated the shop's display room with authentic Amish décor and eventually hired three Amish friends to sew and embroider napkins and other textiles as customers had requested such items. In addition, two women from the Amish community sought permission from the Millers to display home-baked pastries and jellies on Tuesdays and Wednesdays, when Shipshewana attracts swarms of visitors to its flea market on the south edge of town. The Millers also hired four more people to help customers throughout the purchasing process and to provide the required product-related information to the customers. "Shipshewana is full of specialty shops," Mary Miller stated. "People don't come here to buy things made in China or Taiwan. They want real, Amish-made goods." Indiana Wood can be best classified as a(n) ________. A) full-service retailer B) industrial distributor C) self-service retailer D) warehouse club E) limited-service retailer

A

Most shopping centers are ________. A) strip malls B) regional shopping malls C) community shopping centers D) lifestyle centers E) power centers

A

Press conferences, speeches, store openings, special events, newsletters, and store magazines are examples of ________ activities used by retailers to promote themselves. A) public relations B) sales promotions C) personal selling D) affinity marketing E) social marketing

A

Retailers are classified on characteristics including the amount of service they offer, the breadth and depth of their product lines, how they are organized, and ________. A) the relative prices they charge B) the number of locations they have C) the strength of their Internet presence D) their sustainability and environmental policies E) the stability of their financial situation

A

Springfield, a convenience store, has recently begun to redesign and restock its stores to offer a more upscale environment with products such as house wines and fresh foods. This information indicates that Springfield has most likely changed its ________. A) positioning B) price strategy C) service level D) corporate identity E) organizational structure

A

Upon determining who will want the product, retailers must determine in more detail how to ________ in those markets. A) differentiate and position themselves B) market themselves C) entice customers to them D) offer the correct products E) properly price the product offerings

A

Walmart, Target, Macy's, and other major retailers offer handy ________ that pull customers to both their websites and stores. A) mobile apps B) in-store shopping experiences C) channels D) platforms E) product information

A

Which of the following is an off-price retailer that operates in a huge, warehouse-like facility and offers few frills? A) warehouse club B) service retailer C) convenience store D) hypermarket E) superstore

A

Which of the following plays the most important role in omni-channel retailing? A) Social media B) Advertising C) Discounts D) Daily alerts E) In-store promotions

A

Which type of store carries a deep assortment of a particular product line, has knowledgeable staff, and can be viewed as a giant specialty store? A) category killer B) convenience store C) factory outlet D) warehouse club E) off-price retailer

A

________ are two or more outlets that are commonly owned and controlled. A) Corporate chains B) Convenience stores C) Off-price retailers D) Independent off-price retailers E) Power centers

A

A large retailer of home improvement and construction products offers "how-to" classes for do-it-yourselfers, featuring instructions on how to complete home improvement projects using products sold at its stores. This is an example of how the retailer has differentiated itself through its ________. A) product assortment B) services mix C) segmentation D) atmosphere E) pricing

B

A small, open-air mall with upscale stores, convenient locations, and nonretail activities, such as a playground, skating rink, hotel, dining establishments, and a movie theater, is an example of a ________. A) regional shopping center B) lifestyle center C) community shopping center D) franchise E) power center

B

As a result of the great success of corporate chains, many independent stores choose to band together in either a voluntary chain or a ________. A) factory outlet B) retailer cooperative C) wholesale club D) warehouse club E) convenience cooperative

B

At JCPenney, a mid-level department store, customers shop for moderately priced products and they are assisted in some phases of the shopping process. JCPenney is a ________. A) full-service retailer B) limited-service retailer C) self-service retailer D) specialty store E) superstore

B

Big and Tall Men's Shop carries men's clothing in larger sizes; this allows the store to ________ other stores. A) align itself with B) differentiate itself from C) cluster with D) affect the store atmosphere of E) converge with

B

Foot Locker has mastered online and mobile efforts that link seamlessly with store operations, offering options such as "buy online, ship from store" and "buy online, reserve in store" for pickup. This is an example of ________. A) digital retailing B) omni-channel retailing C) web-based retailing D) in-store ordering with a mobile device E) social media

B

In recent years, service differentiation among retailers has ________. A) increased at a steady rate B) decreased C) stayed the same D) increased exponentially E) tripled

B

In-store demonstrations, displays, sales, and loyalty programs are examples of ________. A) direct marketing B) sales promotion C) public relations D) personal selling E) affinity marketing

B

Overstock.com, a Web seller that buys furniture, clothing, electronics, and more from a variety of producers at less-than-regular wholesale prices and then charges customers less than retail, is a(n) ________. A) specialty store B) off-price retailer C) factory outlet D) wholesale club E) category killer

B

Retailers can also be classified by the length and breadth of their product assortments. In terms of product line, what kind of retailer is Indiana Wood? A) supermarket B) specialty store C) category killer D) department store E) convenience store

B

Specialty stores carry ________ with ________ within them. A) only convenience products; shallow assortments B) narrow product lines; deep assortments C) narrow product lines; shallow assortments D) wide product lines; shallow assortments E) wide product lines; deep assortments

B

Stop-N-Go , 7-Eleven, and Circle K are examples of ________. A) department stores B) convenience stores C) category killers D) specialty stores E) supermarkets

B

Today, ________ are flourishing due to the increased use of market segmentation and market targeting. A) chain stores B) specialty stores C) superstores D) discount stores E) off-price stores

B

Which of the following is most likely gained by stores that cluster together? A) decreased competition B) increased customer pulling power C) compliance with franchise agreements D) creation of retailer cooperatives E) standardization of the service mix

B

Which of the following is most likely true about shoppers who prefer to shop at "lifestyle centers"? A) They use coupons. B) They prefer upscale stores. C) They prefer indoor shopping locations. D) They rarely dine out in expensive restaurants. E) They are motivated by deals on last year's merchandise.

B

Which of the following kind of organization best represents a contractual association based on some unique product or service, a method of doing business, or a trade name or goodwill? A) corporate chain B) franchise C) voluntary chain D) retailer cooperative E) warehouse club

B

Which of the following terms best describes a large, low-cost, low-margin, high-volume, self-service store that carries a wide variety of grocery and household products? A) convenience store B) supermarket C) specialty store D) warehouse club E) factory outlet

B

Which type of retailer is most likely to require its employees to focus most on assisting customers as they shop? A) self-service retailer B) full-service retailer C) off-price retailer D) limited-service retailer E) convenience retailer

B

Which type of store carries a wide variety of product lines and has been squeezed in recent years between more focused and flexible specialty stores on the one hand and more efficient, lower-priced discounters on the other? A) warehouse clubs B) department store C) factory outlet D) merchant wholesaler E) category specialist

B

________ are huge unenclosed shopping centers consisting of a long strip of retail stores, including at least one large, freestanding anchor store like Walmart. Each store has its own entrance with parking directly in front for shoppers who wish to visit only one store. A) Shopping malls B) Power centers C) Superstores D) Chain stores E) Regional shopping centers

B

________ are manufacturer-owned and operated stores that offer prices as low as 50 percent below retail on a wide range of mostly surplus, discounted, or irregular items. A) Category killers B) Factory outlets C) Specialty stores D) Superstores E) Power centers

B

________ creates a seamless cross-channel buying experience that integrates in-store, online, and mobile shopping. A) Shopper marketing B) Omni-channel retailing C) Test marketing D) Online marketing E) Consolidation marketing

B

________ includes all the activities involved in selling products or services directly to final consumers for their personal, nonbusiness use. A) Franchising B) Retailing C) Brokering D) Wholesaling E) Disintermediation

B

________ involves using in-store promotions and advertising to extend brand equity to "the last mile" and encourage favorable point-of-purchase decisions. A) Differentiation B) Shopper marketing C) Social media marketing D) Retailer marketing E) Segmentation

B

________ is a type of service offered by those retailers who serve customers that are willing to perform their own "locate-compare-select" process in order to save money. A) Limited-service B) Self-service C) Full-service D) Specialty-service E) Wholesaling

B

________ sell standard merchandise at lower prices by accepting lower margins and selling higher volume. A) Merchant wholesalers B) Discount stores C) Full-service retailers D) Limited-service retailers E) Factory outlets

B

74) Store retailers must master ________, integrating store and online channels into a single shopper experience. A) showrooming B) single-channel retailing C) omni-channel retailing D) webrooming E) dual-channel retailing

C

A ________ generally contains between 5 and 15 stores. It is close and convenient for consumers, usually contains a supermarket, perhaps a discount store, and several service stores such as a dry cleaner, a drugstore, and a hardware store. A) regional shopping center B) community shopping center C) neighborhood shopping center D) warehouse club E) factory outlet

C

A ________ is a group of retail businesses built on a site that is planned, developed, owned, and managed as a unit. A) warehouse club B) franchise C) shopping center D) supermarket E) hypermarket

C

An ideal price policy scenario for retailers would be to achieve ________ while earning ________. A) low volume; high markups B) low volume; low markups C) high volume; high markups D) high volume; low markups E) high volume; zero markups

C

Daizy's is a shop that carries only plus-size clothing. According to this information, Daizy's differentiates itself from its competitors based on ________. A) service mix B) pricing C) product assortment D) store atmosphere E) distribution strategy

C

Independent Grocers Alliance, Do-It Best, and Western Auto are examples of ________. A) franchise organizations B) warehouse clubs C) voluntary chains D) category killers E) wholesale clubs

C

Macy's department stores carry a wide range of product lines, including clothing, jewelry, kitchenware, and home furnishings. Macy's typically charges a relatively high markup, but also holds frequent sales and price promotions, in particular offering discounts to customers who use a Macy's credit card. Macy's uses ________. A) self-service retailing B) experiential retailing C) high-low pricing D) everyday low pricing E) retail convergence

C

McDonald's, Subway, and Jiffy Lube are all examples of ________. A) voluntary chains B) retailer cooperatives C) franchises D) category killers E) power centers

C

Omni-channel retailing includes all of the following except ________. A) cross-shopping on mobile devices B) integrating available shopping channels C) boosting online selling options D) omitting digital selling options E) increasing in-store shopping channels

C

Retailers connect brands with consumers in the ________ phases of the buying process. A) need identification B) evaluation of alternatives C) final D) information gathering E) post-purchase

C

Sears, Target, and Kroger are examples of ________. A) voluntary chains B) retailer cooperatives C) corporate chains D) franchise organizations E) warehouse clubs

C

The authentic Amish décor of Indiana Wood's contributes to the store's ________. A) product assortment B) services mix C) atmosphere D) segmentation E) retail convergence

C

The early ________ cut expenses by offering few services and operating in warehouse-like facilities in low-rent, heavily traveled districts. A) department stores B) hypermarkets C) discount stores D) supermarkets E) full-service retailers

C

The lighting in Jake's Steak Restaurant is dim. The chairs are covered in leather and each table is covered with a white linen cloth. The colors are limited to earth tones with an occasional splash of red. Patrons cannot hear any kitchen noises, only a pleasant melody that seems familiar but unrecognizable. The smells are extraordinarily varied. This is a description of the restaurant's ________. A) promotions B) target C) atmosphere D) services mix E) product assortment

C

Which of the following is the most frequently visited type of retail store? A) convenience store B) department store C) supermarket D) superstore E) off-price retailer

C

Which type of retailer usually carries more specialty goods at high prices and is more likely to provide customers with assistance in every phase of the shopping process? A) self-service retailer B) limited-service retailer C) full-service retailer D) independent retailer E) off-price retailer

C

________ retailers in the United States are growing faster than product retailers. A) Discount B) Merchant C) Service D) Specialty E) Off-price

C

A ________ contains from 50 to 100 stores, is like a covered mini-downtown, and attracts customers from a wide area. A) community shopping center B) neighborhood shopping center C) central business district D) regional shopping center E) strip mall

D

Cabela's stores are as much natural history museums for outdoor enthusiasts as they are retail outlets. This information indicates that Cabela's is practicing ________. A) wholesaling B) nonstore retailing C) shopper marketing D) experiential retailing E) showrooming

D

Changes to service differentiation include all of the following EXCEPT ________. A) smarter customers B) decreased services at department stores C) more price-sensitive consumers D) customers' willingness to pay more for identical brands E) increased services from discounters

D

GameStop sells only video games and systems, offering a narrow product line with a deep assortment within that line. GameStop is a(n) ________. A) department store B) convenience store C) category killer D) specialty store E) off-price retailer

D

Many institutions, including retailers, wholesalers, and ________ do retailing. A) schools B) government agencies C) factory farmers D) manufacturers E) defense contractors

D

Neighborhood shopping centers are also known as ________. A) power centers B) lifestyle centers C) warehouse clubs D) strip malls E) regional shopping centers

D

Until retailers ________ their markets, they cannot make consistent decisions about product assortment, services, pricing, or advertising. A) create B) communicate with C) divide up D) define and profile E) design products for

D

Which of the following best describes a similarity between Costco and Walmart? A) Both are warehouse clubs. B) Both target the same affluent market. C) Both are specialty stores. D) Both use everyday low pricing. E) Both are examples of merchant wholesalers.

D

Which of the following is NOT a type of off-price retailer? A) independent B) factory outlet C) warehouse club D) category killer E) wholesale club

D

Which of the following would be considered a service retailer? A) factory outlets B) supermarkets C) jewelry stores D) restaurants E) gas stations

D

Which type of store is much larger than regular supermarkets and offers a large assortment of routinely purchased food products, nonfood items, and services? A) off-price retailer B) specialty store C) factory outlet D) superstore E) convenience store

D

________ are facing slow sales growth because of slower population growth, increased competition, and the rapid growth of out-of-home eating. A) Warehouse clubs B) Off-price retailers C) Discount stores D) Supermarkets E) Factory outlets

D

________ are retailers that offer sales assistance because they carry more shopping goods about which customers might need information. A) Self-service retailers B) Full-service retailers C) Off-price retailers D) Limited-service retailers E) Specialty-service retailers

D

________ were the main form of retail clusters until the 1950s. A) Strip malls B) Discount stores C) Independent off-price retailers D) Central business districts E) Regional shopping malls

D

Digital promotions have grown in usage and include e-mail, social media, Web sites, and ________. A) demonstrations B) displays C) store flyers D) newsletters E) online ads and video

E

Home Depot and PetSmart are examples of ________. A) factory outlets B) warehouse clubs C) superstores D) off-price retailers E) category killers

E

In addition to segmenting and targeting the correct market, which of the following is NOT an area in which marketers must make decisions? A) product assortment B) services mix C) store's atmosphere D) using experiential retailing E) manufacturing schedules

E

Omni-channel retailers are those who ________. A) expand their businesses internationally B) conduct all business activities online C) sell products through third-party retailers D) use mobile apps to sell their products E) successfully merge the virtual and physical worlds

E

________ creates a seamless cross-channel buying experience that integrates in-store, online, and mobile shopping. A) Shopper marketing B) Point-of-purchase marketing C) Social media marketing D) Virtual marketing E) Omni-channel retailing

E

A discount store buys at less-than-regular wholesale prices and charges consumers less than retail. T/F

False

Department stores carry narrow product lines with deep assortments within those lines. T/F

False

Franchises constitute only a small portion of all retail sales in the United States. T/F

False

In recent years, convenience stores have redesigned their stores to closely focus on serving their primary target market made up of young, blue-collar men. T/F

False

Many online merchants-including Amazon-have experienced so much online growth that they are now moving into showrooms or their own stores. T/F

False

Off-price retailers pay regular wholesale prices for their merchandise but maintain low prices by accepting lower margins and selling higher volume. T/F

False

Retailers first must position themselves in a market and then decide how they will define the target customers in these markets. T/F

False

Supermarkets are located near residential areas and are open long hours, seven days a week. They carry a limited line of high-turnover goods. T/F

False

Supermarkets sell a limited selection of goods at deep discounts to consumers who pay membership fees. T/F

False

Wholesaling includes all the activities involved in selling products or services directly to final consumers for their personal, nonbusiness use. T/F

False

A voluntary chain is a wholesaler-sponsored group of independent retailers that engages in group buying and common merchandising. T/F

True

Beyond direct online sales, retailer online sites, mobile apps, and social media influence a large amount of in-store buying. T/F

True

Category killers are giant specialty stores that carry a very deep assortment of a particular line. T/F

True

Corporate chains are two or more outlets that are commonly owned and controlled. T/F

True

Full-service stores usually carry more specialty goods for which customers need or want assistance or advice. T/F

True

In a retailer cooperative, independent retailers band together to set up a jointly owned, central wholesale operation and conduct joint merchandising and promotion efforts. T/F

True

Independent off-price retailers either are independently owned and run or are divisions of larger retail corporations. T/F

True

It's estimated that U.S. retail sales are either transacted directly or influenced by online research. T/F

True

Self-service retailers serve customers who are willing to perform their own locate-compare-select process to save time or money. T/F

True

Shopper marketing involves focusing the entire marketing process-from product and brand development to logistics, promotion, and merchandisings-toward turning shoppers into buyers at the point of sale. T/F

True

Superstores are much larger than regular supermarkets and offer a large assortment of routinely purchased food products, nonfood items, and services. T/R

True

The boundaries between in-store and online retailing are rapidly blurring. T/F

True