mkt 320 chapter 5
E
Establishing a sustainable competitive advantage is the key to _____ performance. A. short-term market B. short-term financial C. short-term employee D. long-term employee E. long-term financial
E
Customer relationship management programs are also known as: A. transitional programs. B. sustaining programs. C. twelve-step programs. D. incentive programs. E. loyalty programs.
C
Customers who shop at Books-A-Million find that it has a large selection of books, in addition to a helpful and friendly staff. Furthermore, they can enjoy a peaceful place to read while sipping a cappuccino at their in-store Joe Muggs Café. This intimate perception of the store indicates its _____ strategy. A. perceptual retailing B. imaging C. positioning D. visual merchandising E. retail feedback
A
Dave is a part of the strategic retail planning process in his organization. He has defined the business mission. Which of the following steps is most likely Dave's next stage in the strategic planning process? A. Conduct a situation audit. B. Evaluate performance and make adjustments. C. Develop a retail mix to implement strategy. D. Establish specific objectives and allocate resources. E. Evaluate strategic alternatives.
C
Designing private-label merchandise is a(n) _____ because it builds on the retailer's knowledge of its customers. A. unrelated diversification growth opportunity B. market expansion growth opportunity C. related diversification growth opportunity D. market penetration growth opportunity E. retail format development growth opportunity
A
Developing programs to motivate and coordinate employee efforts, providing incentives, fostering a positive organizational culture, and managing diversity are functions of the: A. human resource management. B. district management. C. general store manager. D. chief executive officer. E. marketing manager.
C
67. (p. 136-137) A _____ is one in which a retailer introduces a new retail format directed toward a market segment that's not currently served by the retailer. A. retail format growth opportunity B. market penetration growth opportunity C. diversification growth opportunity D. market expansion growth opportunity E. wholesale format development growth opportunity
A
Although Rosa visits several retailers when shopping for suits, she always buys suits at Bow and Arrow Inc. Which of the following approaches best demonstrates her affinity for Bow and Arrow Inc.? A. Customer loyalty B. Product pricing C. Location D. Unique merchandise assortment E. Good vendor relations
D
85. (p. 143) Lezos LLC, a chain of international restaurants, has operations in more than 50 countries around the world. The company has a practice of investing in projects long enough for them to become successful. Which of the following is most likely a reason for the success of Lezos in international markets? A. A global culture B. Adaptability C. Human resources D. Financial resources E. Rigidity
A
A _____ involves using the retailer's existing retail format in new market segments. A. market expansion growth opportunity B. market penetration growth opportunity C. diversification growth opportunity D. wholesale format development growth opportunity E. retail format growth opportunity
A
A _____ is a group of consumers with similar needs and a group of retailers that satisfy those needs using a similar retail channels and format. A. retail market B. virtual market C. wholesale market D. target market E. global market
B
A _____ is a growth opportunity directed toward existing customers using the retailer's present retailing format. A. market expansion growth opportunity B. market penetration growth opportunity C. retail format development growth opportunity D. wholesale format development growth opportunity E. diversification growth opportunity
A
A _____ is an opportunity in which a retailer develops a new retail mix for the same target market. A. retail format development growth opportunity B. market penetration growth opportunity C. diversification growth opportunity D. market expansion growth opportunity E. wholesale format development growth opportunity
A
A bagel shop which decides to open up an hour earlier every morning is taking advantage of a _____ opportunity. A. market penetration B. diversification C. retail format development D. market depletion E. market divestment
C
A retail strategy is a statement that identifies all the following except: A. the target market. B. the format that the retailer plans to use. C. the employee compensation plan. D. the bases upon which the retailer plans to build a sustainable competitive advantage.
B
A toy store has acquired an edge over its competition that cannot be easily copied by its competitors. Which of the following has the store achieved? A. Customer brand affiliation B. Sustainable competitive advantage C. Customer loyalty D. Service excellence E. Brand recall
E
A(n) _____ describes the nature of the retailer's operations that it will use to satisfy the needs of its target market. A. situation analysis B. organizational chart C. competitor analysis D. market research report E. retail format
A
A(n) _____ is a collaborative relationship between independent firms. A. strategic alliance B. joint venture C. acquisition D. merger E. takeover
B
A(n) _____ is formed when the entering retailer pools its resources with a local retailer to form a new company in which ownership, control, and profits are shared. A. merger B. joint venture C. acquisition D. strategic alliance E. takeover
A
After selecting a target market and a retail mix, the final element in a retail strategy is the retailer's approach to: A. build a sustainable competitive advantage. B. identify all potential wholesalers. C. identify all possible channels of communication. D. identify possible channels of distribution. E. manage the logistics of the product.
D
Alvo's LLC, a producer of candy, has decided to expand its operations geographically. Which of the following strategies should Alvo's use to achieve its objective? A. Retail format growth opportunity B. Market penetration growth opportunity C. Diversification growth opportunity D. Market expansion growth opportunity E. Wholesale format development growth opportunity
E
An unrelated diversification growth opportunity: A. has a lot in common between the retailer's present business and the new growth opportunity. B. is less risky compared to a related growth opportunity. C. is less effective compared to a related growth opportunity. D. is less expensive compared to related growth opportunity. E. has little commonality between the retailer's present business and the new growth opportunity.
C
Ashton LLC, a chain of supermarkets, intends to change its pricing policy and promotional mix but intends on catering to the same market segment. Which of the following growth strategies will best suit Ashton LLC? A. Market penetration growth opportunity B. Market expansion growth opportunity C. Retail format growth opportunity D. Diversification growth opportunity E. Wholesale format growth opportunity
A
Avis LLC, a chain of international supermarkets, has operations in 20 countries around the world. Avis always encourages the rapid development of local management and retains few expatriates in its overseas operations. Avis's management ranks are truly international. Which of the following is most likely a reason for the success of Avis in international markets? A. A global culture B. Adaptability C. Capital assets D. Financial resources E. Rigidity
E
Bine Lane LLC is a fabric store that sells only cotton clothing. After a situation analysis, the marketing team of Bine Lane wants its current customers to visit and purchase from the store more frequently. Which of the following growth strategies should Bine Lane follow to achieve its objective? A. Wholesale format development growth opportunity B. Market expansion growth opportunity C. Retail format development growth opportunity D. Diversification growth opportunity E. Market penetration growth opportunity
E
Competitive retailers can sell the same popular national brands. Which of the following should retailers do to secure a competitive advantage? A. Prevent its customers from comparison shopping. B. Limit its store traffic to qualified buyers. C. Increase its sales expenses. D. Increase its merchandising flexibility. E. Develop private label brands.
E
Cross-selling is most commonly practiced with the: A. wholesale format development growth opportunity. B. market expansion growth opportunity. C. retail format development growth opportunity. D. diversification growth opportunity. E. market penetration growth opportunity.
D
Flee LLC, a chain of electronic stores, plans to grow geographically. It has tied up with local retailers in international markets to form a new company in which ownership, control, and profits are shared between all involved parties. Which of the following entry strategies is being followed by Flee? A. Acquisition B. Merger C. Takeover D. Joint venture E. Strategic alliance
B
Forester LLC, a jewelry store, has developed a sustainable competitive advantage. Which of the following characteristics of Forester is most likely to be the reason for this advantage? A. Repeat purchases from a vendor due to limited alternatives B. Knowledgeable and helpful salespeople C. Automated warehouses D. More merchandise E. Higher advertising budgets
E
Gini's LLC, a footwear store, has the following characteristics. Which of the following characteristics of Gini's is most likely to be its least sustainable competitive advantage? A. Shared systems with vendors B. Convenient store location C. Knowledgeable employee force D. Helpful sales force E. Lower price
A
Hot Topic LLC appeals to tweens and teens through their Gothic frocks, fad movie gear, piercing paraphernalia, and popular t-shirts and posters. The staff at Hot Topic wears the merchandise. Also, they are active in helping their young customers choose from the hip merchandise. The teens and tweens can be considered the: A. target market. B. marketing mix. C. marketing objective. D. retail format. E. retail mix.
E
In a related diversification growth opportunity, _____. A. the retailer's present target market and retail format shares nothing in common with the new opportunity B. the retailer's future target market and retail format shares nothing in common with a missed opportunity C. the retailer's past target market and retail format shares nothing in common with a missed opportunity D. the retailer's future target market and retail format shares something in common with a missed opportunity E. the retailer's present target market and retail format shares something in common with the new opportunity
E
In perceptual maps, retailers that are closer to an ideal point are evaluated: A. less favorably by the consumers. B. more favorably by the producers. C. more favorably by the suppliers. D. less favorably by the suppliers. E. more favorably by the consumers.
B
John plans to start a grocery store in his locality. Which of the following is most likely to give him the least sustainable competitive advantage in the market? A. Convenient locations B. More employees C. Exclusive merchandise D. Coordination of procurement efforts E. Helpful sales force
E
Jose runs a gallery which specializes in neon art with an emphasis on vacation icons like flamingos, dolphins, and palm trees. Since demand was high and supplies were low, he decided to buy an old warehouse and then hire craftspeople to work there in order to produce the art. He would provide them with all of the supplies they needed, and he would be their only customer. Jose engaged in: A. horizontal integration B. market expansion C. co-operative buying D. market penetration E. vertical integration
C
Josh is responsible for the strategic retail planning process in his organization. He has defined the business mission and conducted a situation audit. Which of the following steps is most likely his next stage in the strategic retail planning process? A. Evaluate strategic alternatives. B. Establish specific objectives and allocate resources. C. Identify strategic opportunities. D. Develop a retail mix to implement strategy. E. Evaluate performance and make adjustments.
C
Kola LLC is a chain of supermarkets across the country. Kola's sales staff treat their customers very well which in turn creates great customer satisfaction. Which of the following is most likely to be the sustainable competitive advantage of Kola? A. Unique merchandise B. Ethical business practices C. Customer service D. Location E. Price
D
Krueger Burgers LLC, a chain of restaurants, intends to change its pricing policy and promotional mix to cater to a new market segment. Which of the following growth strategies will best suit Kruger Burgers? A. Market penetration growth opportunity B. Market expansion growth opportunity C. Retail format growth opportunity D. Diversification growth opportunity E. Wholesale format growth opportunity
A
La Rouge LLC, a fabric store, is one of the most famous in the country. Customers flock to the store from all across the nation for its exclusive collection of store brands. Which of the following is most likely to be the sustainable competitive advantage of La Rouge LLC? A. Unique merchandise B. Ethical business practices C. Customer service D. Location E. Price
E
Luke is responsible for the strategic retail planning process in his organization. He is currently identifying the strategic opportunities. Which of the following steps is most likely to have been Luke's previous step before identifying the strategic opportunities? A. Evaluating performance B. Developing a retail mix C. Establishing specific objectives D. Evaluating strategic alternatives E. Conducting a situation audit
E
MarMa LLC, a retailer of auto accessories, plans to grow geographically. It has tied up with independent international firms to facilitate its local logistical activities. Which of the following entry strategies is being followed by MarMa? A. Takeover B. Joint venture C. Acquisition D. Merger E. Strategic alliance
E
Mindy's LLC, a fashion brand, has a significant cost benefit that facilitates success in international markets in which price plays an important role in consumer decision making. Which of the following is most likely a reason for Mindy's success in international markets? A. A global culture B. Adaptability C. Human resources D. Financial resources E. Globally sustainable competitive advantage
D
My Favorite Quilt Shop LLC offers members of their Fabric Lovers Club merchandise worth $20 for every $200 they purchase plus additional discounts on classes and new fabric lines. The Fabric Lovers Club LLC. is a good way to develop: A. internal excellence. B. store awareness. C. good customer service. D. customer loyalty. E. ethical business practices.
E
Myra wanted to purchase a vase as a wedding gift. Pier 1 Imports Inc. offers a better assortment and slightly lower prices, but she immediately went to her local gift shop instead of Pier 1 Imports Inc. This is an example of: A. a situation audit. B. strategic control. C. direct competition. D. retail perception. E. customer loyalty.
B
Papa Bean LLC, a global chain of pizzerias, has operations in more than 80 countries around the world. Its menu varies considerably in different countries, assimilating minute details from the local culture to add to its truly global flavor. Which of the following is most likely a reason for the success of Papa Bean in international markets? A. A global culture B. Adaptability C. Human resources D. Financial resources E. Rigidity
B
Positioning is the process of: A. acquiring a lease for a retail store in a region. B. creating and supporting a clear and distinct retailer image. C. finding a retail location site. D. negotiating the percentage-of-sales payment to the mall owners. E. performing a situation audit.
B
Private-label brands are also called: A. personal brands. B. store brands. C. faith brands. D. umbrella brands. E. individual brands.
B
Retailers can foster customer loyalty by: A. having a generalized organizational mission statement. B. providing good customer service. C. having no distinct brand image. D. trying to attain qualitative objectives rather than quantitative ones. E. using a mass advertising strategy.
c
Retailers have the least opportunity to exploit a competitive advantage when they pursue: A. retail format growth opportunities. B. market penetration growth opportunities. C. diversification growth opportunities. D. market expansion growth opportunities. E. wholesale format development growth opportunities.
C
Sally's LLC, a local supermarket, has all of the following characteristics. Which of the following characteristics of Sally's is most likely to be a more sustainable competitive advantage? A. Extended hours of operation B. More employees C. Shared systems with vendors D. More merchandise E. More sales promotions
D
Sam loves shopping. She frequently goes window shopping in the city. During times of need, she visits the nearest supermarket even though she loathes going there. Which of the following is most likely to be the reason why Sam shops in the supermarket? A. Unique merchandise B. Brand image C. Customer service D. Location E. Price
A
Which of the following steps is typically the next step after evaluating strategic alternatives in the strategic retail planning process? A. Establishing specific objectives B. Developing a retail mix C. Evaluating performance D. Defining the business mission E. Conducting a situation audit
E
Store design is a component of the: A. pricing mix. B. product mix. C. wholesale mix. D. organizational mix. E. retail mix.
D
Tara gets her oil changed only at Tires Plus Inc. This commitment to Tires Plus Inc. illustrates: A. ethical business practices. B. store awareness. C. good customer service. D. customer loyalty. E. price competitiveness. Customer loyalty is evident when customers are committed to buying merchandise and services from a particular retailer.
A
The _____ is the market segment(s) toward which the retailer plans to focus its resources and retail mix. A. target market B. retail market C. virtual market D. labor market E. global market
D
The best way for a retailer to develop a sustainable competitive advantage is to: A. concentrate on finding the best location. B. concentrate on having the lowest prices in town. C. develop a good distribution system. D. rely on multiple approaches. E. maintain good vendor relations.
E
The emerging international markets that receive the most attention from global retailers are collectively referred to as the _____ countries. A. Asian Tigers B. Next Eleven C. MIKT D. CIVETS E. BRIC
B
Tilly's Inc. is a chain of cafes. The company focuses primarily on customers who are aged between 18 and 35 and earning about $15,000 to $30,000 annually. This segmentation of customers by Tilly's is known as its: A. retail market. B. target market. C. virtual market. D. global market. E. labor market.
E
Toss LLC, a chain of sports equipment retailers, plans to invest in a retail operation in a foreign country. Which of the following categories of investments does this belong to? A. Philatelic investment B. Alternative investment C. Inventory investment D. Portfolio investment E. Direct investment
C
Which of the following steps is typically the previous step before evaluating the strategic alternatives in the strategic retail planning process? A. Defining the business mission B. Establishing specific objectives C. Identifying strategic opportunities D. Developing a retail mix E. Evaluating performance
C
Walgreens' rapid growth has resulted in a store opening every 17 hours. Many times, they are within a few blocks of each other. Walgreens practices: A. retail format development. B. diversification growth. C. market penetration. D. market expansion. E. market divestment.
B
Wendy's Inc. has established itself in the fast food market as one of the top 5 restaurants in the city. Customers frequent Wendy's because of the impeccable quality of food associated with it. Which of the following is most likely to be the reason for Wendy's sustainable competitive advantage? A. Unique merchandise B. Brand image C. Customer service D. Location E. Price
B
When Home Movies Inc. opened stores in other countries, it increased the company's international market share. Home Movies took advantage of a _____ opportunity. A. diversification B. market expansion C. market divestment D. retail format development E. market penetration
e
When Nordstrom department stores launched a website to sell its merchandise to its present customers; it took advantage of a _____ opportunity. A. diversification B. market format investment C. market expansion D. market penetration E. retail format development
D
Which of the following characteristics is most likely to be the least sustainable competitive advantage? A. Convenient locations B. Ability to get scarce merchandise C. Shared systems with vendors D. More sales promotions E. Coordination of procurement efforts
C
Which of the following characteristics is most likely to be the more sustainable competitive advantage? A. Extended hours of operation B. Bigger warehouses C. Ability to get scarce merchandise D. More employees E. Greater assortment of merchandise
B
Which of the following factors is classified as a competitive factor? A. Social changes B. Bargaining power of vendors C. New technology D. Economic conditions E. Market growth
E
Which of the following factors is classified as a market factor? A. Economic conditions B. New technology C. Barriers to entry D. Competitive rivalry E. Seasonality
D
Which of the following factors is classified as environmental dynamics? A. Market size B. Seasonality C. Barriers to entry D. Social changes E. Competitive rivalry
D
Which of the following is a component of retail mix? A. Product design B. Market intelligence C. Human resource practice D. Pricing policy E. Employee performance data
A
Which of the following is a condition that may lead to competitive rivalry? A. Large number of competitors of the same size B. Presence of perceived differences between competing retailers C. Fast growth D. Low fixed costs E. Lack of competition
A
Which of the following is a suggested method for improving the efficiency of internal operations? A. Unique merchandise B. Customer service C. Human resource management D. Brand image E. Building a retail community using social media
C
Which of the following is a suggested method for improving the efficiency of internal operations? A. Unique merchandise B. Customer service C. Human resource management D. Brand image E. Building a retail community using social media
B
Which of the following is an advantage of the use of sophisticated distribution and information systems? A. It creates a positive image of the brand in the minds of the consumers. B. It offers an opportunity for the retailer to reduce operating costs. C. It helps an organization to attain cultural diversity within its workforce. D. It helps an organization to monitor the productivity of its entire workforce. E. It helps an organization to monitor the movements of its employees.
B
Which of the following is an example of a market expansion growth opportunity? A. Displaying merchandise to increase impulse purchases B. Opening new stores in new geographic markets C. Opening more stores in the same market D. Keeping existing stores open for long hours E. Engaging in cross-selling
C
Which of the following is an example of a market penetration growth opportunity? A. Opening new stores in new geographical markets B. Changing the brand name to appeal to newer market segments C. Keeping existing stores open for longer hours D. Opening new stores to cater to a different demographic segment E. Changing the brand name in new geographical markets
B
Which of the following is an example of related diversification? A. Purchasing from different vendors B. Operating in similar locations C. Targeting another market segment D. Using newer medium for advertising E. Developing a management information system
B
Which of the following is an example of unrelated diversification? A. Operating in similar locations B. Creating a new management information system C. Using the same distribution D. Advertising in the same newspapers E. Purchasing from the same vendors
D
Which of the following is an opportunity for retailers to develop a sustainable competitive advantage? A. Reduced prices B. Deeper assortment C. Longer hours of operation D. Good customer service E. Coupons
C
Which of the following is most likely to be a disadvantage for a retailer in developing customer loyalty through offering popular national brands? A. The costs associated with offering popular national brands are very high. B. A huge reduction in the profit margin for the retailer. C. Other competitors can purchase and sell the same popular products. D. Training employees to operate the new product or service involves time and effort. E. It leads to brand cannibalization.
E
Which of the following is true of private-label brands? A. Products developed and marketed by a retailer and available with other retailers B. Products developed by a retailer but marketed and available with a third party C. Products developed and available with a retailer but marketed by a third party D. Products developed by a third party but marketed and available with a retailer E. Products developed and marketed by a retailer and available only from that retailer
C
Which of the following is true of scale economies? A. Scale economies are volume advantages due to a retailers cost. B. Scale economies are volume advantages due to a retailer's size. C. Scale economies are cost advantages due to a retailer's size. D. Scale economies are size advantages due to a retailer's cost. E. Scale economies are size advantages due to a retailer's volume.
B
Which of the following retail growth strategies has the greatest chance for succeeding? A. Related diversification growth opportunity B. Market penetration growth opportunity C. Market expansion growth opportunity D. Retail format development growth opportunity E. Unrelated diversification growth opportunity
C
Which of the following statements is a disadvantage of a joint venture? A. The entering retailer must bare all the loss. B. Only the local retailer is exempted from trade laws. C. Government places restrictions on the repatriation of profits. D. Only the local retailer is exempted from trade tax. E. The local retailer is at freedom to choose which laws they adhere to.
D
Which of the following statements is a disadvantage of franchising? A. The retailer bears all the loss. B. Heavy taxes are levied on the retailer. C. Local laws favor the franchise. D. The potential profit is reduced. E. This is the most expensive method of entering a new market.
A
Which of the following statements is a key advantage of direct investments? A. The retailer has complete control of the operations. B. The retailer is exempted from trade taxes. C. The retailer is at freedom to choose which nation's law they adhere to. D. The retailer is exempted from local trade laws. E. A loss is borne equally by all involved parties.
E
Which of the following statements is an advantage of a joint venture? A. The entering retailer is exempted from trade taxes. B. Trade laws favor the entering retailer. C. The entering retailer takes all the profits. D. The entering retailer has complete control of the operations. E. The local partner provides an understanding of the market.
A
Which of the following statements is true of a sustainable competitive advantage? A. It is not easily copied by the competitors. B. It cannot be maintained over a long period of time. C. It can only be maintained over a short period of time. D. It can be easily copied by the competitors. E. It can be achieved by reducing the price of the product.
B
Which of the following statements is true of franchising? A. It offers the highest risk and requires the least investment but also has the highest potential return on investment. B. It offers the lowest risk and requires the least investment but also has the lowest potential return on investment. C. It offers the lowest risk and requires the most investment but also has the highest potential return on investment. D. It offers the highest risk and requires the most investment but also has the highest potential return on investment. E. It offers the highest risk and requires the most investment but also has the lowest potential return on investment.
D
Which of the following statements is true of the challenges faced by organized retailing in China? A. Government impedes foreign investment in retailing. B. Stringent regulations on profit margins discourage capitalism. C. Unstable political scenario increases the risk associated with direct investments. D. Managerial talent is becoming more difficult to find and retain. E. Retailers cannot rely on domestic products as their quality is low.
C
Which of the following statements is true of the challenges faced by organized retailing in India? A. The cost of setting up facilities is significantly high. B. The ever increasing operating costs. C. Government impedes foreign investment in retailing. D. The supply chain is underdeveloped and inefficient. E. Managerial talent is becoming more difficult to find and retain.
A
Which of the following statements is true of the challenges faced by organized retailing in Russia? A. Retailers cannot rely on domestic products as their quality is low. B. Government impedes foreign investment in retailing. C. Managerial talent is becoming more difficult to find and retain. D. Stringent regulations on profit margins discourage capitalism. E. Unstable political scenario increases the risk associated with direct investments.
A
Which of the following statements is true of vertical integration? A. It is the diversification by retailers into manufacturing. B. It is the diversification by wholesalers into retailing. C. It is the diversification by manufacturers into marketing. D. It is the diversification by supply chain management into marketing. E. It is the diversification by marketing into manufacturing.
C
Which of the following steps is typically the first step in the strategic retail planning process? A. Develop a retail mix to implement strategy. B. Evaluate performance and make adjustments. C. Define the business mission. D. Evaluate strategic alternatives. E. Identify strategic opportunities.
B
Which of the following steps is typically the next step after establishing specific objectives and allocating resources in the strategic retail planning process? A. Identifying strategic opportunities B. Developing a retail mix to implement strategy C. Evaluating performance and making adjustments D. Defining the business mission E. Conducting a situation audit
E
Why should a retailer be concerned with building a sustainable competitive advantage? A. It could increase organizational turnover. B. It would decrease organizational commitment. C. It could decrease organizational productivity. D. It could result in short-term profitability. E. It could result in long-term profitability.
B
Zara is responsible for the strategic planning retail planning process in her organization. She has identified the strategic opportunities. Which of the following steps is most likely Zara's next stage in the strategic retail planning process? A. Define the business mission. B. Evaluate strategic alternatives. C. Evaluate performance. D. Develop a retail mix. E. Establish specific objectives.
A
_____ are developed so that the distance between two retailers' positions on the map indicates how similar the stores appear to consumers. A. Perceptual maps B. Geographical maps C. Brand perceptions D. Product perceptions E. Demographic maps
B
_____ is the design and implementation of a retail mix in order to create an image of the retailer within the customer's mind relative to its competitors. A. Retail perception B. Positioning C. Imaging D. Detailing E. Competitive feedback
C
_____ occurs when a retail firm invests in and owns a retail operation in a foreign country. A. Inventory investment B. Portfolio investment C. Direct investment D. Philatelic investment E. Alternative investment
