Marketing Test 1

True or False? Mass-merchandisers have proved to be effective competitors in taking away department store customers.

True

True or False? Prescription pharmaceuticals account for over half or more of drugstores annual sales.

True

dollar general/family dollar

extreme value retailers

Specialty shops generally: a. want to be known for the distinctiveness of their product assortment and the special services they offer. b. sell homogeneous shopping products. c. are very good at speeding turnover. d. carry complete lines--like department stores. e. All of the above.

A

Why have department store sales stagnated in recent years A) Increased competition from discount and specialty stores B) price points are too high C) Not enough new brands D) Elimination of national brands E) Assortments are too broad

A) Increased competition from discount and specialty stores

What type of store is T.J. Maxx considered to be? A. Off-price retailer B. Department store C. Full-line discount store D. Extreme-value retailer E. Specialty retailer

A. Off-price retailer

_________________ offer an inconsistent assortment of brand-name, fashion-oriented soft goods at low prices. A. Off-price retailers B. Department stores C. Discount retailers D. Convenience stores E. Specialty retailers

A. Off-price retailers

Stocking a deep and broad assortment is appealing to customers, but costly for retailers. What option does a small specialty store owner have to offset costs, and make a profit? A. charge higher prices B. hire less staff C. offer less expensive assortments D. offer less hours of operation E. substitute services for merchandise

A. charge higher prices

To respond to a competitive discount environment, Walmart is fighting back by __. A. opening supercenters while closing full-line discount stores B. focusing on promotional temporary sales C. increasing assortments D. offering better customer service on the floor E. reducing prices below wholesale

A. opening supercenters while closing full-line discount stores

Specialty stores that focus on specific market segments are vulnerable to _____. A. shifts in customer tastes and preferences B. high price points C. operating parameters set by mall management D. strong competition from the department stores that sell comparable merchandise E. overstocking

A. shifts in customer tastes and preferences

Department stores: are basically a group of limited-line stores under one roof. are decreasing in number, average sales per store, and share of retail business. usually aim at customers seeking shopping products. All of the above are true. Only B and C are true.

All of the above are true.

19. (p. 32) What is the word used to describe a retailer's merchandise "depth"? A. Apparition B. Assortment C. Modicum D. Variety E. Product

B. Assortment

Why do category specialists call themselves "category killers"? A. Because they have a lock on the competition, they can demand higher prices. B. By offering a complete assortment in a category at low prices, category specialists can "kill" a category of merchandise for other retailers. C. To keep costs low, employee assistance is nonexistent, thus has "killed" off customer service. D. As they edit their product assortments, they narrow down and drop off classifications.

B. By offering a complete assortment in a category at low prices, category specialists can "kill" a category of merchandise for other retailers.

Off-price retailers ________. A. offer a consistent assortment of soft goods at low prices B. sell brand-name merchandise at reduced prices C. offer gift registries D. require suppliers to give them a variety of advertising allowances and markdown discounts E. None of the above

B. sell brand-name merchandise at reduced prices

Off-price retailers will often sell merchandise less than the MSRP which means: A. the merchandise sales are profitable. B. the merchandise is sold below the suggested retail price. C. the merchandise is sold below the suggested realized profit. D. the merchandise is sold less than the surrounding retail competitors.

B. the merchandise is sold below the suggested retail price.

True or False? Specialty shops are limited-line stores which aim at a carefully defined target market with a unique product assortment, good service, and knowledgeable salespeople.

True

What are three types of off-price retailers? A) Traditional, promotional, and specialty B) manufacturer, retailer, and wholesaler C) outlet, close-out, and value retailer D) functional, promotional, and price-oriented E) customer-oriented, price-based, and distributive

C) outlet, close-out, and value retailer

Which of the following is NOT TRUE in describing retailers who offer a deep, and broad assortment? A. It increases inventory holding costs B. It increases inventory investment because a retailer must have backup stock for each SKU C. Discounters and warehouse clubs offer a greater assortment D. Specialty retailers offer the depth of merchandise

C. Discounters and warehouse clubs offer a greater assortment

What type of store is Target considered? A. Off-price retailer B. Department store C. Full-line discount store D. Extreme value retailer E. Specialty retailer

C. Full-line discount store

What can department stores do to differentiate their merchandise offering AND strengthen their image? A. Increase their pricing B. Network with a broader variety of vendors C. Seek exclusive arrangements with nationally recognized brands D. Merge with faltering retailers to gain their market share E. Keep assortments in line with European styles and fads

C. Seek exclusive arrangements with nationally recognized brands

Assortment is often referred to as the ____________. A. breadth of merchandise B. complete retail offering C. depth of merchandise D. object of the buy E. retail mix

C. depth of merchandise

Which statement about full-line discount stores is false? Centralized checkout service is not provided. The non-durable (soft) goods carried are usually private brands. Hard goods generally emphasize well-known manufacturer brands. Products are sold via self-service.

Centralized checkout service is not provided.

Rona and The Home Depot are both category specialists for the home improvement industry. This means the stores: A) offer their customers narrow breadth and depth B) use quick-response inventory management systems C) have excellent after-the-sale service D) offer a narrow but deep assortment of merchandise E) appeal to the mature consumers

D) offer a narrow but deep assortment of merchandise

What type of store is Dollar-General considered to be? A. Off-price retailer B. Department store C. Full-line discount store D. Extreme-value retailer E. Specialty retailer

D. Extreme-value retailer

Why are category specialists sometimes called category killers? A. because they are often located in dying shopping malls B. because they are located at stand-alone sites C. because of their broad merchandise mix and shallow assortment D. because they can dominate a category of merchandise making it difficult for other retailers to compete E. because they carry mainly technologically obsolete merchandise

D. because they can dominate a category of merchandise making it difficult for other retailers to compete

Variety is often referred to as the _____________. A. store's supply standard B. complete retail offering C. retail mix D. breadth of merchandise E. depth of merchandise

D. breadth of merchandise

Each different item of merchandise in a retail store is called a(n) _____________. A. consumer offering B. store counted item (SCI) C. stored and keyed unit (SKU) D. stock keeping unit (SKU) E. economic unit

D. stock keeping unit (SKU)

Whereas conventional supermarkets carry about 30,000 SKUs, limited assortment supermarkets or extreme value food retailers only stock 2000 SKUs. Which of the following is NOT the advantage of stocking lesser SKUs? A. Less inventory holding costs B. Less backup stocks C. Less inventory investments D. More inventory turnover E. Lower transportation costs

E. Lower transportation costs

Which of the following statements about full-line discount stores is TRUE? A. They do not carry private-label merchandise. B. They have a narrow breadth of merchandise. C. They typically carry more brands and sizes in each category than department stores. D. They have inconsistent assortments. E. None of the above statements about full-line discount stores are true.

E. None of the above statements about full-line discount stores are true.

Which of the following is a third tier department store? A. Macy's B. Neiman Marcus C. TJ Maxx D. Nordstrom E. None of these

E. None of these

What is the challenge big box stores face, while developing locations in Europe and Japan? A. limited and expensive land B. increased operating costs C. restricted building size in some counties D. opposing sentiments from local residents E. all of these

E. all of these

The Men's Wearhouse stocks over 350 different styles and colors of ties. This assortment of ties can be referred to as the store's _________. A. supply standard B. complete retail offering C. breadth of merchandise D. retailer mix E. depth of merchandise

E. depth of merchandise

Best Buy is a category specialist for the electronics industry. This means the stores ___________. A. offer their customers narrow breadth and depth B. use quick-response inventory management systems C. have excellent after-the-sale service D. appeal to the mature consumers E. offer a narrow but deep assortment of merchandise

E. offer a narrow but deep assortment of merchandise

An off-price store that is owned by manufacturers or retailers is called a/an _______. A. subsidiary B. tangent C. branch D. parasite E. outlet

E. outlet

Walgreens, CVS and Rite Aid see the largest portion of their sales results from ____. A. soda and snacks B. office and paper products C. cosmetics D. photo processing E. prescription drugs

E. prescription drugs

Department stores are stores which usually try to serve customers seeking a variety of convenience products. True False

False

True or False? "Supercenters" are very large stores that specialize in selling a big variety of infrequently purchased products that would otherwise be hard for consumers to find.

False

True or False? Department stores keep growing in numbers, sales, and market share.

False

True or False? Walmart is classified as an off-price retailer.

False

Walmart, K-Mart, Target

Full-Line Discount Stores

Regarding retailing, which of the following statements is NOT true? Supermarkets average about $17 million in sales per year. Single-line mass-merchandisers have not been successful--probably because their assortments are so limited. Mass-merchandisers put less emphasis on knowledgeable salespeople than more conventional retailers. Discount houses got their start selling "hard goods" at lower prices. None of the above

Single-line mass-merchandisers have not been successful--probably because their assortments are so limited.

True or False? General merchandise wholesalers handle a wide variety of nonperishable items--and usually serve many different kinds of retail stores

True

The development of department stores and supermarkets is explained by the "Wheel of Retailing" theory. True False

True

True or False? Extreme-value retailers have a broad variety but shallow assortment of products offered at very low prices.

True

Compared to specialty wholesalers, general merchandise wholesalers handle: a narrower line--or perhaps only a specific line of merchandise. almost no physical products. a very narrow assortment of products. products they do not own, while specialty wholesalers do own them. a broader variety of products.

a broader variety of products.

Convenience (food) stores offer: wide assortments. low prices. more customer service than supermarkets. a limited assortment of "fill-in" items. All of the above.

a limited assortment of "fill-in" items.

Which of the following is the best example of a conventional retailer? A limited-line store. A department store. A supermarket. A convenience (food) store. None of the above.

a limited-line store

Which of the following is a second tier department store? A. Macy's B. Neiman Marcus C. TJ Maxx D. Nordstrom E. None of these

a. macy's

Which of the following could be considered part of a retailer's "Product"? location of store. width and depth of product assortment. reputation for fairness. helpfulness of salespeople. all of the above.

all of the above

Which of the following would be considered a retailing "category killer"? Office Deport (office supplies) PayLess (drugstores) Lowe's (home improvements) B. Dalton (books) all of the above

all of the above

Which of the following would be considered a retailing "category killer"? Toys "R" Us (toys) Circuit City (electronics) Home Depot (home improvements) IKEA (furniture) all of the above

all of the above

Internet retailers include: limited-line retailers. service providers. mass-merchandisers. department stores. all of the above.

all the above

Department stores: usually aim at customers seeking convenience products. have accounted for a larger share of retail sales every year since 1950. have no trouble holding their own against mass-merchandisers. are organized into separate departments. All of the above are true.

are organized into separate departments.

the number of different items offered in a merchandise category

assortment

A retailer that carries a broad variety and deep assortment, offers customer services, and is organized into separate departments for displaying merchandise is called a __. A. off-price retail B. department store C. discount retailer D. convenience store E. specialty retailer

b. department store

Department stores have placed an emphasis on their own private branded merchandise to _______________. A. attract the attention of the junior market B. differentiate their product offerings C. keep price points lower D. reduce the number of markdowns at the end of a season E. sever relationships with low profit vendors

b. differentiale their product offerings

Which of the following is a first tier department store? A. Macy's B. Nordstrom C. Sears D. Kohl's E. JCPenney

b. nordstrom

The drugstore industry has seen a decrease in their annual sales mainly due to _____. A. higher prices on prescription drugs B. pharmacies in full-line discount stores C. the aging population D. government regulations on pharmaceutical sales

b. pharmacies in full-line discount stores

discount stores that offer a narrow but deep assortment of merchandise

big box retailer

________ stores overall sales and share have declined due to increased competition from discount stores and specialty stores A) Small B) Multichannel C) Department D) Big Box E) Privately owned

c. department

Which of the following retailers would most likely appeal to a 12 year olds' desire for discount fashion clothing from Joe Fresh A) category specialist B) supercenter C) department store D) specialty store E) conventional supermarket

c. department store

by offering a complete assortment in a category, category specialists can "kill a category of merchandise for other retailers

category killer

Home Depot, Bass Pro-Shop, Lowes

category specialist

big box stores that offer a narrow but deep assortment of merchandise

category specialist

a store that accepts bed merchandise from people and pays them after it is sold

consignment shop

Specialty stores have recently seen a trend of cheap and chic "fast fashion". The fast-fashion concept introduces new products in a store _________. A. 10-12 times per year B. 10-12 times per quarter C. each week D. 2-3 times per week E. each day

d. 2-3 times per week

Attempting to combat losing market share, department stores are ____________. A. becoming more effective with multichannel retailing B. adding exclusive merchandise to their assortments C. developing stronger marketing campaigns to enhance their store image D. all of these

d. all of these

What is the word used to describe a retailer's merchandise "breadth"? A. Apparition B. Assortment C. Modicum D. Variety E. Product

d. variety

_________ refers to the number of different merchandise categories a retailer offers. A. Inventory mixture B. Product measurement C. Product depth D. Variety E. Assortment

d. variety

What type of store is Kohl's considered? A. Off-price retail B. Department store C. Full-line discount store D. Extreme value retailer E. Specialty retailer

department

Retailer store 'Sears' is an example of outbound store inbound store department store intensive store

department store

retailers that carry a broad variety and deep assortment, offer customer service, and organize their stores into distinct departments for displaying merchandise

department store retailer

specialty stores that concentrate on health and beauty care

drug store

small, full line discount stores that offer a limited merchandise at very low prices

extreme value retailers

retailers that offer a brand variety of merchandise, limited service and low prices

full-line discount stores

Offer a variety of product lines, stocked in considerable depth.

general merchandise retailer

Department stores: are large stores which emphasize depth and distinctiveness rather than variety. have declined since the 1970s because of competition from well-run limited-line stores and mass-merchandisers. are usually weak in customer service. usually emphasize specialty products. All of the above are true.

have declined since the 1970s because of competition from well-run limited-line stores and mass-merchandisers.

Category specialist that offer some improvement tools for contractors and do-it-yourselfers

home improvement center

Most conventional retailers in the U.S. are: supermarkets. mass-merchandisers. limited-line stores. specialty stores. department stores.

limited-line stores

Large self-service retail stores that emphasize lower margins to get faster turnover--especially on "soft goods"--are called: mass-merchandisers. convenience food stores. department stores. specialty shops. single-line stores.

mass-merchandisers

On a department store organization chart, the buyer's position is located in what division? Management Merchandising Operations Sales promotion

merchandising

Factory outlets and ware house clubs are classified as types of independent super retailer off-price retailer on-price retailer independent off-price retailer

off-price retailer

the different elements that help define & differentiate a retailer from its competitors

retail mix

Compared to more conventional retailers, which of the following retailers offer both expanded assortment and service? mass-merchandisers. door-to-door salespeople. mail order. specialty shops. supermarkets.

speciality shops

victoria secret, foot locker, abercrombie, pottery barn

speciality store

concentrate on a limited number of complementary merchandise categories and provide a high level of service.

speciality stores

Which of the following stores are considered Category Killers? A) Sears B) Zellers C) Staples D) Holt Renfrew E) Reitmans

staples

An individual item or product that has an identifying code and is held in inventory somewhere along the supply chain

stock keeping unit (sku)

Very large retail stores that carry not only foods--but all goods and services which consumers purchase ROUTINELY--are called: supercenters. general stores. supermarkets. mass-merchandisers. department stores.

supercenters

A retail store that averages about $17 million in sales annually and specializes in groceries--with self-service and large assortments is a: mass-merchandiser. specialty shop. convenience food store. discount house. supermarket.

supermarket

Compared to conventional retailers, which of the following types of retailers offer a wider product assortment but less service? convenience stores. supermarkets. telephone order retailers. department stores. limited-line stores.

supermarkets

The first retailers to really show the importance of the mass-merchandising concept were the operators of: general stores. supermarkets. single-line stores. department stores. limited-line stores.

supermarkets

Which of the following retailers was the first to adopt the mass-merchandising concept? department stores. discount houses. supermarkets. general stores. supercenters.

supermarkets

where merchandise is donated and proceeds go to charity

thrift store

True or False? 24. Category killers is another name for single-line mass-merchandisers.

true

True or False? 25. Because of their higher margins, faster turnover, and narrower assortments, convenience food stores generally are more profitable than supermarkets.

true

Convenience (food) stores: have enjoyed higher profits as more gas stations have converted and made this approach more popular. charge about the same prices as nearby supermarkets. try to earn better profits by high margins on a narrow assortment which turns over quickly. offer greater width of assortment but less depth than most supermarkets. none of the above.

try to earn better profits by high margins on a narrow assortment which turns over quickly.

Because the only merchandise categories at the University Futon Shop are double-sized futons, the Futon Shop can be said to have no ______________. A. inventory control B. need for customer service C. variety D. shrinkage E. product depth

variety

Number of Merchandise categories within a store department

variety

A number of independent drugstores are working with a wholesaler to obtain economies of scale in buying. They were organized by this wholesaler after a recent meeting to discuss ways of competing with corporate chains. These drugstores are now part of a: corporate chain. voluntary chain. consumer cooperative. cooperative chain. franchise chain.

voluntary chain