Retailing Exam 1

Jamie wants to buy an imported car but has refrained from doing so because of the devaluation of her country's currency value against the dollar. Which of the following is a reason that seemed to influence Jamie's buying process?

The economy

Which of the following is a reason for the decline in the availability of retail managers?

The lack of a large talent pool

Which of the following statements is true of retailing in developing economies?

The large size of developing economies is likely to be a motivating factor.

Which of the following statements is true of stores in unplanned locations?

The store opening and closing hours are determined by the store management.

With reference to categorization by ownership, which of the following statements is true of single-store small retailers?

They are more likely to respond quickly to customer needs.

Which of the following is true of corporate chain retailers as compared to single-store retailers?

They can effectively negotiate lower prices for merchandise.

With discount stores also offering groceries in their offerings, what can conventional supermarkets do to differentiate their offerings?

They can produce private-label merchandise.

Which of the following statements is an advantage of freestanding sites?

They have fewer restrictions on signs, hours, or merchandise.

Which of the following statements is true of Main Street locations?

They often have some restrictions due to town or reorganization planning.

The ________ is responsible for providing security, parking lot lighting, outdoor signage, advertising, special events to attract consumers, and so on.

common area maintenance

When Jenna buys groceries, she shops at Whole Foods or Trader Joe's because she knows that these two stores carry organic and unique foods. For Jenna, these two stores make up her

consideration set.

Regression analysis

considers each store at different locations independently.

After watching the 1937 movie Captains Courageous, Don wanted a Chris-Craft wooden boat in the worst way. Since he just received a large sum of money from his grandfather's will, he had the funds. Since these historic boats are unique and difficult to find, Don started searching on the Internet for potential wooden boat dealers across the United States. This situation is referred to as

specialty shopping.

Full-line discount stores

stock both private labels and national brands.

Eric is a salesperson who takes a high-pressure sales approach when he knows that a product is not suitable for a customer's needs. This is most likely to be a violation of the

store's ethical policy.

What is retailing?

It deals with the sale of products meant for personal use.

Which of the following examples best illustrates a hedonic need?

Laura buys herself a cardigan because she ranked first in her class.

With respect to types of merchandise, which of the following is true of a retailer?

Similar merchandise retailers have different assortment and variety.

Nick has a profitable liquor store and plans to open up another liquor store in a neighboring community. He contacted the landlord of a shopping center with a vacant storefront. To his surprise, his request for a lease was denied. What most likely prevented the landlord from leasing to Nick?

A prohibited-use clause

What is an advantage of an independent, single-store over other forms of retail ownership?

Ability to react quickly to market changes

With reference to store sales, which of the following is true of the site accessibility?

Accessibility is greater for sites located near major highways.

Today, _____ has overtaken Walmart in terms of its stock market value, and it appears well positioned to compete in the digital marketplace, whereas Walmart continues to seek a firm toehold in the online realm.

Amazon

Retailing offers many opportunities for entrepreneurs to flourish. Jeff Bezos is one of many successful entrepreneurs in retail and is the founder of

Amazon.

________ is a positive indicator when evaluating store locations.

An area that has minimal legal regulations

Which of the following is an example of intratype competition?

CVS and Walgreens

Which of the following statements is true of comparison shopping?

Category specialists offer the same benefits of comparison shopping as a collection of co-located specialty stores.

Which of the following is the first step while using the analog approach?

Conducting a competitive analysis

Which of the following is true of customer characteristics as concluded from the VALS survey?

Consumers who are primarily motivated by self-expression want physical activity, and have a desire to make an impact.

Each time a transaction is made at Allen's store, he asks his customers for their zip code. Allen then manually plots the location of each customer on a map. Allen is attempting to identify the trade area for his store by what approach?

Customer spotting

Which of the following stages is most likely to involve generation of a trade map using the data warehouse of current customers using ESRI's GIS software?

Defining present trade area

________ are retail locations for an individual, isolated store unconnected to other stores.

Freestanding sites

Which of the following stages would involve determining the predominant ethnicity groups in an area?

Identifying trade area characteristics

Which of the following terms refers to the competition between the same types of retailers?

Intratype competition

________ are open-air shopping centers composed mainly of upscale apparel shops, boutiques, and gift shops carrying selected fashions or unique merchandise of higher quality and price along with restaurants and entertainment and therefore are usually located in higher-income areas.

Lifestyle centers

What is a retailer's role in the supply chain?

Linking manufacturers to consumers

With reference to store sales, which of the following considerations must be kept in mind while choosing a site?

Locations with complementary, as well as competing, adjacent retailers have the potential to build traffic.

Which of the following requires extended problem solving in a buying decision?

Purchasing a health-care policy for the whole family

Live Healthy Inc., a drug store retailer, has added jewelry, accessories, and apparel to its offerings. Which of the following terms best describes this scenario?

Scrambled merchandising

Brainwave Inc. had promoted an exchange offer in which Brainwave plastic shopping bags could be exchanged for a reusable one. The hope was that this reusable bag would be a short-term benefit for Brainwave as customers would be advertising for the retailer when they carried the bags around. Which stage of corporate social responsibility does this promotional strategy exhibit?

Second stage

________ locations involve an agreement in which a retailer rents a part of the retail space in a store operated by another independent retailer.

Store-within-a-store

________ are retailers that offer a limited and irregular assortment of food and general merchandise with little service at low prices for ultimate consumers and small businesses.

Warehouse clubs

Which of the following examples best illustrates a utilitarian need?

Zara buys new curtains to replace the worn out ones in her living room.

Dick's Sporting Goods has many store locations in the Minneapolis area. One of its stores is an attractive glass front, free-standing massive size two-level store and has great visibility from the Interstate. The only problem is that there are no Interstate exits near the store site and customers that see the store from the Interstate often cannot figure out how to get to the store. This store site has poor

accessibility.

Helen's, an apparel store, segments its market on the basis of the demographic characteristic of physical size and not on factors like ethnicity. This follows from the ________ criteria used for evaluating whether a retail segment is a viable target mark

actionable

John likes to have the latest electronics. He used to go from store to store looking at new cameras, but now just looks at them online from his home. The Internet dramatically reduces the cost of

an information search.

At Mall of America, Macy's and Nordstrom are

anchor stores.

Shopping malls

are climate-controlled and are open all-year around.

Trade area zones

are defined based on the driving time.

Neighborhood centers

are designed for convenience shopping.

The development of more robust data information systems has done all of the following except

been ignored and downplayed as a growth opportunity for retailers.

Tillers LLC—a famous retailer—carries groceries, sporting goods, automobiles, electronics, housewares, health and beauty aids, apparel, footwear, jewelry, camping gear, and more. Using the provided information, it can be concluded that Tillers has

broad variety.

A community that wishes to keep an old town atmosphere has forbidden the use of any neon lighting. A ________ would enforce this restriction.

building code

To reduce the level of conflict, most franchise agreements grant franchisees an exclusive territory. This can be a benefit of operating a franchise so as to avoid

cannabilization.

A retailer that has many people browsing in its store, but few people actually buying products, needs to strive to increase its

conversion rate.

An art supply store and a framing store sign a contract for leasing space in a shopping center such that if any one of them leaves, the other store would not be penalized if it decides to vacate as well. This is an example of a(n)

cotenancy clause.

A candy store specializes in selling a wide variety of candy. It even sells brands that are hard to get elsewhere. This is an example of an activity performed by retailers to

create value.

Elena usually shops for her clothing at Macy's but would never buy her cosmetics there. She buys her cosmetics at Walmart. Her pattern of buying would be an example of

cross-shopping.

Retailers that have similar target customers and compete against each other have greater drawing power which mutually benefits all the retailers when they are located near each other. This principle is referred to as

cumulative attraction.

Trade area zones are best determined based upon

customer drive time.

A fast-food retailer observes that his sales orders do not show much variety with respect to the store location. Instead, the needs of his customer are age-related. From the given information, it can be concluded that he is most likely to follow ________ market segmentation.

demographic

A department store knows from market research that their average customer comes from a household of $60,000 annual income, 33% of their customers have children at home, 51% of their customers have a college education, and the median age of their customers is 42. This information is based on

demographics.

Convenience stores

enable consumers with speedy checkout.

When Tamera negotiated her lease with the neighborhood shopping center to open her quilt and knitting shop, she requested that in her lease it should state that no other stores that sell crafts could also be located in the shopping center. This is an example of a(n)

exclusive-use clause.

A hotel's decision to redesign their seating plan to provide optimal space for visiting children is a consequence of the influence of the ________ on customer buying decisions.

family

The most common type of lease used at community and neighborhood shopping centers is

fixed-rate leases.

Some inner-city areas lack access to affordable fresh produce, meat, and dairy products. Because of this, these areas are considered

food deserts.

FlyMe Inc. is a sportswear manufacturer that also performs wholesaling to department and specialty retailers as well as retailing to customers directly through the FlyMe website and FlyMe stores. This is an example of

forward integration.

The ________ ownership format combines the advantages of owner-managed business with the efficiencies of centralized decision making in chain store operations.

franchise

Many inner-city areas are going through a process of ________ which is the renewal and rebuilding of offices, housing, and retailers in deteriorating areas coupled with an influx of more affluent people that displaces the former, lower-income residents.

gentrification

Instances where snack shops are located near college campuses and gourmet foods in affluent areas follow from the ________ criteria used for evaluating whether a retail segment is a viable target market.

identifiable

When it comes to service retailing, since customers cannot see, touch, or feel what is being sold, the ________ of the service can sometimes be a concern for customers in trying to decide whether to buy or not.

intangibility

Habitual decision making

involves little or no conscious effort.

The analog approach to estimating potential sales for a store site

is a more subjective approach.

In a specialty shopping situation, the consumer

is brand and/or retailer loyal.

Limited problem solving

is done on the spot after seeing the merchandise.

A retailer performing scrambled merchandising

is likely to experience intertype competition.

Extended problem solving in a buying decision

is likely to prompt the offer of money-back guarantees.

In a convenience shopping situation, the consumer

is relatively insensitive to price.

A store is slated to open in an urban area of Chicago's "Loop," formerly home to a department store for over 100 years. The store will carry its typical products, including grocery items stocked only in this store as there are no stores in a 5-mile radius. The store planners evaluated many different factors, but ________ was the most desirable factor for this site.

lack of competition

A company engaging in corporate social responsibility (CSR) is

likely to seek a Leadership in Energy and Environmental Design (LEED) certification.

Many Americans are choosing to purchase more locally grown and produced food in order to reduce the carbon footprint caused by the transportation of food throughout the world. This is part of the

locavore movement.

A company would enhance its corporate social responsibility image by

lowering its energy consumption.

Fonics Inc., the telecom provider, has rented a small space in the airport to set up a vending machine that supplies tourists with temporary calling cards. This is an example of a(n)

merchandise kiosk.

A ________ is a core urban area containing a population of more than 50,000 inhabitants, together with adjacent communities that have a high degree of economic and social integration with the core community.

metropolitan statistical area

Service retailers

must try to maintain consistent high-quality services.

The weather forecast is reporting that the season's first snowfall is predicted to hit tomorrow, and it will also involve ice and sleet. Many homeowners rush out to purchase shovels and de-icing rock salt for their driveways. This has stimulated ________, which is a part of the buying process.

need recognition

Assortment is the

number of different items offered in a merchandise category.

Variety is the

number of merchandise categories a retailer offers.

Department stores

offer a broad variety and deep assortment of goods.

Best Buy is considered to be a category specialist retailer because it

offers a narrow variety but deep assortment of merchandise.

A conventional supermarket

offers limited services to customers.

Service retailers sometimes find it difficult to match supply and demand because the creation and consumption of the service is simultaneous. This is a consequence of

perishability.

Some retailers locate a smaller version of their typical retail store to create a buzz, test new concepts, or to evaluate a new neighborhood or city. These retail formats are referred to as

pop-ups.

GreenMart is a grocery store that is exclusively involved in the sale of organic products. They also encourage their customers to be environmentally aware by requesting them to use reusable bags, in addition to banning plastics from their store. The retailer in this instance targets the ________ market segment.

psychographic

The ________ is a set of decisions retailers make to satisfy customer needs and influence their purchase decisions.

retail mix

Merchandise retailers

retail products whose quality is not affected by the time and location of sale.

After developing a thorough understanding of a retailer's competitive environment, a ________ is developed.

retail strategy

A restaurant's decision to convert its image from an upscale dining option into a something-for-everyone fast-food restaurant is a consequence of the influence of ________ on customer buying decisions.

the economy

BrainCord LLC is a retailer that engages in wholesaling activities by operating its own distribution centers to supply its stores. This exemplifies the concept of ________.

vertical integration

Some parts of Centerville are restricted for residents only, while other parts of the city allow for retail stores. This illustrates

zoning.