Retailing Management Quizzes

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.

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 the customer needs.

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

They can produce private-label merchandise.

_____ is described as diversification by retailers into wholesaling or manufacturing.

Vertical integration

When customers conduct product research on a retailer's websites but then purchase the product elsewhere, it is referred to as _____.

channel migration

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 Taylor, these two stores make up her _____.

consideration set

Patagonia reinforces its image of selling environmentally friendly sports equipment in its stores by using optimal lighting and manufacturing goods from recycled material. This scenario demonstrates _____.

consistent brand image across channels

The mission statement:

specifies the scope of the activities that a retailer intends to undertake.

Full-line discount stores:

stock both private labels and national brands.

The _____ channel is better suited for selling products with important "touch-and-feel" attributes such as the fit of a shirt.

store

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

Which of the following is an advantage of shopping through the store channel?

It allows customers to make cash payments.

Which of the following is a benefit of the information generated by placing cookies on a customer's hard drive?

It allows the retailer to provide customized promotions.

What is retailing?

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

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

Ability to react quickly to market changes

Anna requires a new dress for her graduation ceremony, and she decides to visit Drezzez Inc., the apparel store. Which of the following scenarios describes a possible retail improvement that might exist in an apparel store of the future?

Anna will be able to try on her dress of choice on a virtual platform.

Which of the following does not illustrate a sustainable competitive advantage?

BP gas stations offering a $10 gift card to customers after five fill-ups of at least eight gallons each time

Which of the following is an example of intratype competition?

CVS and Walgreens

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

Consumers who are primarily motivated by self-expression desire social or physical activity, variety, and risk.

_____ occurs when a retail firm invests in and owns a retail operation in a foreign country.

Direct investment

Of the different approaches of entering a global market, which of the following has the highest risk and requires the most investment?

Direct investments

Which of the following is an advantage of the catalog channel?

Ease of use

Which of the following is an advantage of shopping through the Internet channel?

Extensive and timely information

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

Intratype competition

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

Linking manufacturers to consumers

_____ involves using more than one channel to sell and deliver merchandise and services to consumers.

Multichannel retailing

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

John has been invited to Sarah's wedding, and he decides to buy her a gift at Natasha's, a department store. Sarah is a frequent shopper at Natasha's, and John is more likely to choose something that she will like. Which of the following technologies would enable that?

Shared customer database

Which of the following statements is not true about online retailing?

The Internet is a revolutionary retail format that will eventually replace stores and catalogs.

Tina is a frequent shopper at a department store and is well known at her hometown outlet. She has travelled to another city where the store has a branch and happens to visit it. Which of the following technologies would enable the store to identify her and offer her the privileges of a frequent shopper?

The RFID on her card

_____ 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.

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 market.

actionable

Retail distribution centers:

are customized to support store, Internet, and catalog channels.

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

conversion rate

At Forever 21, a sales associate is suggesting accessories to a customer at the check-out area to go with the sweater she is purchasing. This selling approach is called _____.

cross-selling

To be successful in international markets, retailers have found that it is essential to develop all of the following except _____.

cross-selling strategies

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

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

Tangent Inc., the department store, knows from market research that their average customers 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

The SWOT analysis:

describes the opportunities and threats faced by a retailer from external factors.

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

economy

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

franchise

Chinese consumers exposed to the American programs and trends desire to emulate Americans. This has given the American brands an edge in the _____ characteristic for successful exploitation of international growth opportunities.

globally sustainable competitive advantage

The development of information systems has:

helped in the maintenance of the inventory system of retailers.

KartonKings Inc., a food retailer, processes customer feedback data to make an informed decision about product performance. The ability to process huge volumes of customer data is a consequence of the development of _____ on the retail industry.

information systems

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.

Limited problem solving decision process:

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.

A retailer expanding their hours to be open an additional hour each evening is using the _____ growth strategy.

market penetration

A company would enhance its corporate social responsibility image by:

lowering its energy consumption.

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 deicing 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

A perpetual map is developed to identify how customers view competing retailers' _____.

positioning

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 and ban plastics from their store. The retailer in this instance targets the _____ market segment.

psychographic

Showrooming:

results in loss of revenue for the retailer.

The direct selling channel

results in the communication of extensive information about the product.

A _____ is a group of consumers with similar needs that a group of retailers can service using a similar retail formats to satisfy them.

retail market

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

retail mix

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

retail strategy

A retail strategy identifies the format the retailer plans to use to satisfy the _____.

target market

Gamerz Inc., a video gaming developer, has come up with an idea of designing two versions for each of their bestselling games, one suitable for teenagers and the other for adults. This is an example of the _____.

target market

A retail format development growth opportunity involves:

using a different retail mix for the same target market.

BrainCord LLC is a retailer that designs its own merchandise and then contracts with manufacturers to produce it exclusively for them. It does not perform any direct manufacturing or wholesaling. This is an example of _____ integration.

vertical