Intro to Retail Final Exam

Many department stores have advisory teen boards to help the retailer understand the fashions and fads of teens. This teen board acts as a(n) _____ for other teens to emulate. A) attribute mix B) subculture C) reference group D) consideration set E) peer group

C) reference group

A ____ is a business that sells products and/or services to consumers for their personal or family use. A) none of these B) distributor C) retailer D) manufacturer E) wholesaler

C) retailer

Why do category specialists call themselves "category killers"?

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

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 __.

department store

The type of retailer that focuses mostly on soft goods, carries both national and private brands, and has a wide breadth with a high ambiance would be best described as a(n):

department store

A retailer that carries both hard and soft lines, with a wide breadth, shallow depth, usually freestanding store, centrally located checkouts and a low profit margin percent best describes which type of retailer?

discount store

A physical store that is not part of a mall or shopping center would be considered a ____ store.

free standing

The most salient reason to invest in a franchise is: A) the recognition of a well known brand name B) the exclusive territory granted C) the financial assistance available to start the business D) the advertising and merchandising advice

A) the recognition of a well known brand name

There are over 1 million retail establishments across the US and the majority of these retailers are small businesses. A) true B) false

A) true

Retailers do not perform traditional business activities. A) true B) false

B) false

Many retailers have and offer their own store credit card. Which of the following value-creating activities is evident in the given example? A) Holding inventory B) providing services C) breaking bulk D) exclusive dealing E) offering assortments

B) providing services

Retail contributes approximately ____ to the USA gross domestic product.

16%

Students often view retailing as part of marketing because: A) retailing involves the management of distribution systems B) retailing does not involve traditional business activities C) activities in retailing are confined to advertising and promotion D) retailing requires only people with expertise in marketing

A) retailing involves the management of distribution systems

What type of retailer store is Costco considered to be?

A warehouse club

Ethical principles can change over time. A) True B) False

A) True

Dailies is a large retail chain in New Jersey. Apart from selling to customers, Dailies supplies bread and vegetables to a large number of restaurants in and around New Jersey. Therefore, Dailies is engaged in _______ when selling to restaurants. A) Wholesaling B) Retailing C) Channel expansion D) Breaking bulk E) Merchandising

A) Wholesaling

New retail formats are created and evolve because _______________. A) consumers' needs, wants and competition change B) private branding dictates new fashion C) consumers lose interest D) retailers have built better relationships with key customers E) large retailers have undertaken stronger marketing campaigns

A) consumers' needs, wants and competition change

Calvin enjoys dining at Dawson's, a fast food restaurant. He feels that they make the best french-fries for a low price. However, when it comes to dessert, he feels he's a cake connoisseur. He prefers to have cake only at Marina's Patisserie, even though a piece of cake costs $7.00. Calvin's patronizing of Dawson's and Marina's demonstrates a behavior called: A) cross-shopping B) postpurchase satisfaction C) composite segmentation D) cross-docking E) comparison shopping

A) cross-shopping

Both a weight-loss center and a health club would be pleased to learn that health and fitness, along with individualism, mastery and control, and self-improvement are core values common in the _____ of the U.S. A) culture B) marketing mix C) experiential base D) civilization E) environment

A) culture

A company in the final stage of integrating corporate social responsibility into its strategies: A) engages in responsible activities for the well-being of everyone B) only engages in CSR activities that are required of them by law C) engages in CSR activities that provide a short-term financial benefit D) engages in CSR activities because they believe it is the right thing to do

A) engages in responsible activities for the well-being of everyone

Prime Industries Inc. is a large company producing a wide range of chemicals. The company recently installed a waste water treatment facility in its premises. It believes that releasing water containing chemical waste into the river would harm the entire population of the city. Thus, it is in the _____ stage of incorporating corporate social responsibility. A) final B) initial C) second D) tertiary E) acquisition

A) final

Darius Foods Inc. and Winston Foods and Beverages Inc. are competitors selling frozen meals. Darius sells its products through a large number of local convenience stores, while Winston sells its frozen meals through delis. Which form of competition is seen between these two firms? A) intertype competition B) indirect competition C) intratype competition D) scrambled merchandising E) intrinsic competition

A) intertype competition

____ are products that have minor blemishes to the fabric or errors in the construction. A) irregulars B) hard goods C) close-outs D) category killers E) soft goods

A) irregulars

Which of the following statements about retailers holding inventory is FALSE? A) It allows customers to get the lowest price possible B) Holding inventory reduces consumer's cost of storing products C) This activity benefits customers with limited storage space, such as families living in small apartments D) Holding inventory in a store helps serve customers' needs E) Retailers keep inventory so products are available when consumers want them

A) it allows customers to get the lowest price possible

According to the most recent top USA retailers from NRF, who is the 2nd largest sales volume retailer in the USA?

Amazon

What is the parent company of Whole Foods?

Amazon

Where is the corporate headquarters for the largest retailer in the world? A) New York, New York B) Bentonville, Arkansas C) Minneapolis, Minnesota D) Chicago, Illinois

B) Bentonville, Arkansas

A specific mens store stocks over 350 different styles and colors or ties. This assortment of ties can be referred to as the store's _____. A) consignment merchandise B) depth of merchandise C) breadth of merchandise D) power perimeter E) closeouts

B) depth of merchandise

Bella is about to be married in two months. When she shopped for the bridesmaids' gowns, her gown, and flowers for the ceremony, she spent a lot of time in deciding what to buy. She was not sure whether her parents, in-laws, and fiancé would like her selections. Which form of purchase decision process is Bella engaged in? A. Composite segmentation B. Extended problem solving C. Consideration set D. Habitual decision making E. Limited problem solving

B) extended problem solving

More retail transactions take place online now than in stores. A) no answer text provided B) false C) no answer text provided D) true

B) false

Diego began his first job out of college with a consulting firm, and wants to make a good impression upon his supervisors. He noticed the attire of the associates when he interviewed, and he decided to mimic them by wearing power-suits and Italian shoes. What social factor most influences Diego's wardrobe? A) peer group B) reference group C) culture D) subculture E) consideration set

B) reference group

When Austin saw pastries and coffee being sold at his local bookstore, he knew it was an example of _____. A) channel conflict B) scrambled merchandising C) intertype competition D) vertical differentiation E) product diversification

B) scrambled merchandising

Are footwear (shoes) considered hard or soft goods? A) hard B) soft

B) soft

A(n)_______ is a set of firms that make and deliver a given set of goods and services to the ultimate consumer. A) buying network B) supply chain C) integrated wholesale network D) trade association

B) supply chain

Which of the following statements is true about specialty stores? A) they discourage sampling B) they tailor their retail strategy toward very specific market segments C) they group products by brand instead of product category like in department stores D) they offer very shallow and narrow assortments E) they completely avoid including their own private-label brands in the store

B) they tailor their retail strategy toward very specific market segments

In what era did enclosed malls get introduced in the USA? A) 1970-1990 B) 1920-1940 C) 1940-1970 D) 1900-1930

C) 1940-1970

Approximately what percent of working people are employed in the retail industry? A) 35-40% B) 55-60% C) 20-25% D) 5-10%

C) 20-25%

Which of the following business would NOT be considered a retailer? A) Delta Airlines B) Priceline.com C) Proctor and Gamble D) A hot dog cart at the Highland Games E) University Bookstore

C) Proctor and Gamble

While eating may satisfy a functional need, Lucia's Italian Restaurant features gurgling fountains, live music, Baroque paintings, and lush gardens to stroll while you wait. Which of the following needs is also satisfied while eating at Lucia's? A. Physiological needs B. Rational needs C. Hedonic needs D. Social needs E. Motivational needs

C) hedonic needs

A retail mix is developed to: A) promote scrambled merchandising B) understand the retail market C) implement a retail strategy D) implement vertical integration E) formulate a retail strategy

C) implement a retail strategy

The competition between the same type of retailers is called: A) intrinsic competition B) intertype competition C) intratype competition D) indirect competition E) scrambled merchandising

C) intratype competition

What is retailing? A) it is the merchandising component of the retail mix B) it is the ability to offer enough variety in a store to encourage one-stop shopping C) it is the set of business activities that adds value to the products and services sold to consumers for their personal use D) it is the strategy retailers and vendors use to get products into the stores E) it is the process of offering products in smaller quantities for consumer consumption patterns

C) it is the set of business activities that adds value to the product and services sold to consumers for their personal use

Which of the following statements is true of the North American Industry Classification System (NAICS)? A) it was developed by the Federal Trade Commission (FTC) B) it is a classification system developed by the US C) it was created to collect data on North America's business activity D) it uses an 8-digit classification system E) it is limited in its use to only manufacturing companies

C) it was created to collect data on North America's business activity

How can a service retailer best cope with the problems associated with the intangibility of service? A) use mass production B) increase staffing at peak demand times C) solicit customer evaluations and complaints D) use low prices during off-seasons to help match supply and demand E) emphasize quality control

C) solicit customer evaluations and complaints

A ____ refers to the market toward which a retailer will direct its effort. A) mass market B) warm market C) target market D) channel member E) market segment

C) target market

Which of the following statements is true of department stores? A) they focus almost exclusively on hard goods B) they offer a limited variety and shallow assortment of merchandise C) they often resemble a collection of specialty shops D) they are usually located in local neighborhoods rather than large regional malls E) they can be categorized into two tiers

C) they often resemble a collection of specialty shops

How can a service retailer best cope with the problems associated with the inconsistency of service? A) increase staffing at peak demand times B) use low prices during off-seasons to help match supply and demand C) train and motivate service providers D) use mass production E) avoid simultaneity of production and consumption of service

C) train and motivate service providers

According to the most recent top USA retailers from NRF, what is the 4th largest sales volume retailer in the USA?

Costco

Of the top 5 USA Retailers, which retailer has the fewest stores?

Costco

Online retailing makes up about ___ of all retail sales. A) 46% B) 36% C) 26% D) 16% E) 60% F) 6%

D) 16%

A major value-providing activity performed by retailers is ____, so that products will be available when consumers want them. A) scrambled merchandising B) backward integration C) providing assortments D) holding inventory E) breaking bulk

D) Holding inventory

Managers in retail make many different decisions regarding their business. A decision that would NOT be a part of retail management is: A) negotiating with suppliers B) selecting retail locations C) training and motivating sales associates D) deciding which customers can buy what products E) selecting target markets

D) deciding which customers can buy what products

Purchasing from factories that pay workers a living wage and offer other benefits to the employees is called_____. A) flash sale B) a closeout C) power perimeter D) fair trade E) cash wrap

D) fair trade

With respect to off-price retailing, in a _____ sale, each day at the same time, members receive an email that announces the deals available. A) enterprise B) consultative C) closeout D) flash E) clearance

D) flash

Samson's is a large clothing retailer. The store offers over 1,000 brands and 50,000 different products. Which of the following value-creating activities can best be seen in the given example? A) Add-on selling B) Breaking bulk C) Scrambled merchandising D) offering assortments E) Vertical integration

D) offering assortments

Consumers make habitual decision making for all the following cases EXCEPT: A) for purchases that aren't important to the consumers B) for merchandise they have purchased in the past C) when they are loyal to a store D) when they haven't developed brand loyalty

D) when they haven't developed brand loyalty

Which state has the highest percentage of RETAIL GDP?

Florida

With respect to retailing, variety is often referred to as the____. A) closeouts B) assortment of merchandise C) stock-keeping units D) irregulars E) breadth of merchandise

E) breadth of merchandise

Which of the following is NOT an element in the retail mix? A) advertising and promotion B) merchandising pricing C) location D) customer service E) competitive response

E) competitive response

Limited assortment supermarkets are referred to as: A) warehouse clubs B) full-line discount stores C) consignment shops D) conventional supermarkets E) extreme-value food retailers

E) extreme-value food retailers

____ are the most concentrated sector of the retail industry in the U.S. A) apparel stores B) fitness centers C) food and beverage services D) drugstore chains E) home improvement centers

E) home improvement centers

When serving brand loyal customers, which of the following factors is most important for a retailer? A) offering suitable alternatives B) offering only private-label brands C) encouraging cross-shopping D) offering only national brands E) offering specific brands

E) offering specific brands

The outer walls of a supermarket that stocks fresh-merchandise such as dairy, bakery, meat, produce, etc. is referred to as the _____. A) closeouts B) supercenters C) irregulars D) convenience rack E) power perimeter

E) power perimeter

Retailers use stimulation to: A. satisfy customers' utilitarian needs. B. enable extended problem solving. C. promote cross-shopping. D. segment the market based on lifestyles. E. satisfy customers' hedonic needs.

E) satisfy customers' hedonic needs

Alfani (women's fashion), Hotel Collection (luxury fabrics), Tools of the Trade (housewares) are examples of Macy's ____. A) inclusive brands B) irregulars C) closeouts D) national brands E) store brands

E) store brands

A retailer sells products & services to __________. A) wholesalers B) middlemen C) all of the above D) vendors E) the end user

E) the end user

Which of the following is a drawback of the franchise ownership? A) the franchisor lacks any benefit from the success of his or her franchisee B) the franchisee lacks any kind of off- or onsite training from the franchisor C) the franchisee must join a single-store retailer to become independent of the franchisor D) the franchisor must incur the capital costs like purchase and modification of the retail space E) the franchisee must adhere to the franchisor's rules and operating guidelines

E) the franchisee must adhere to the franchisor's rules and operating guidelines

_____ refers to the number of different merchandise categories a retailer offers. A) product depth B) product measurement C) inventory mixture D) assortment E) variety

E) variety

Which country has the LEAST total retail square footage per capita?

Italy

What is the parent company of Pick n Save and Copps?

Kroger Co

Over the past century, retail has evolved and has been driven by changes in three core retail building blocks. These three core retail building blocks are: Merchandising and pricing, store experience and _____

Marketing Approach

____ are off-price retailers owned by manufacturers, brands or retailers.

Outlet stores

Which retailer is a co-op?

REI

Who is the largest retailer in the world?

Walmart

Who is the largest sales volume retailer in the USA?

Walmart

A retailer in Lincoln, Nebraska, who wants to open a store that will sell surfboards and surfing accessories, finds that the local market is very small. He would be able to serve a national market better by means of internet marketing. Which factor for evaluating a market segment is seen in the given scenario?

Substantiality

According to the most recent top USA retailers from NRF, who is the 3rd largest sales volume USA retailer?

The Kroger Co.

Which country has the most retail square footage per capita?

USA

According to the most recent top USA retailers from NRF, what is the 5th largest sales volume retailer in the USA?

Walgreens Boots Alliance

A retailer that is owned and controlled by "members" where costs are kept low, wages are kept high, and no profits are expected is best described as a(n):

co-op store

Due to the COVID-19 pandemic, it was discussed at the end of the lecture that the two driving forces or attributes for successful retailers are:

convenience & safety

A purchase decision process in which customers devote considerable time and effort for analyzing alternatives is called:

extended problem solving

What type of store is Dollar General considered to be?

extreme-value retailer

A special type of off-price retailer stores owned by manufacturers is called a ____.

factory outlet

Geraldo went to the supermarket to buy a bottle of chocolate syrup. While there, he saw the new National Enquirer at the checkout stand. He had not planned on buying the magazine, but on the spur of the moment, he bought himself a copy. This is an example of:

impulse buying

While waiting in the checkout line at Essentials, Autumn spotted a nail care kit displayed amongst the candy and batteries. She liked it and asked the cashier to add it to her bill. Which form of limited problem solving did Autumn engage in?

impulse buying

Which type of consumer decision-making process will MOST likely result in an impulse buy?

limited problem solving

Kohl's is best described as:

lower end department store

After using her same car for 17 years, Tracey's mechanic told her that it would cost more to fix the transmission than what the car was worth. She decided it was time for a new car. In which stage of the buying process if Tracey involved?

need recognition

Ross, TJ Maxx and Burlington are best described as:

off price retailers

Ross Stores would be best described as what format of retail?

off-price

What type of store is TJMaxx considered to be?

off-price retailer

the type of retailer that is mostly known for inconsistent assortments is best described as a(n):

off-price store

The Tackle Box is a store that sells anything you may need to catch fish including local information about what is running, where it's running and what bait works best. The fishing enthusiasts who rely on the Tackle Box for reliable equipment and information constitute the retailer's:

retail market segment

Retailers that have narrow product variety and deep assortments, focused on a certain target market or classification or merchandise are best described as:

specialty stores

What does the acryonym SKU stand for?

stock keeping unit

Which of the following is the biggest threat to convenience stores?

supermarket chains and discount stores that also offer gasoline

How did the original owners of Macy's pass away?

they were passengers on the Titanic when it sank

When customers go shopping to accomplish a specific task, they are seeking to satisfy:

utilitarian needs

The Amazon Go store is unique because it

utilizes just walk out shopping technology