Chapter 15

B.) factory outlet (This describes a factory outlet.)

A _____ is an off-price retailer that is owned and operated by a manufacturer and carries one line of merchandise--its own. A.) mass merchandiser B.) factory outlet C.) wholesale club D.) discount store E.) bargain basement store

A.) suggestion selling (Suggestion selling is common in helping customers recognize true needs.)

A common practice among most retailers that seeks to broaden customers' original purchases with related items is called: A.) suggestion selling B.) trading up C.) bait and switch D.) comprehensive selling E.) interactive selling

E.) off-price discount retailers (Off-price discount retailers purchase goods at cost or less from manufacturers' overruns, bankruptcies, irregular stock supplies, and unsold end-of-season output. The other four categories may be current customers and would not have a use for the overruns and out-of-season stock.)

A publisher of books on holiday decorating, cooking, and crafts has to find a way to dispose of its overruns and unsold end-of-season output. As a marketing consultant, you suggest the firm sell the merchandise to: A.) mass merchandisers B.) convenience stores C.) department stores D.) supermarkets E.) off-price discount retailers

D.) supercenter (Supercenters offer an array of products and services, as well as groceries.)

A retail operation that has a 90,000-square-foot facility and houses a florist, baker, bank, craft shop, photo finisher, dry cleaner, and pharmacy under the same roof as grocery and household items would be called a: A.) membership warehouse club B.) wholesale outlet C.) factory outlet D.) supercenter E.) mass merchandiser

C.) Product assortment (A retail establishment can be classified according to its ownership, level of service, product assortment, and price.)

A retail store can be classified according to its: A.) distribution method B.) inventory control C.) product assortment D.) management style E.) decor and atmosphere

a.) product and trade name franchisee (In product and trade name franchising, a dealer agrees to buy or sell certain products or product lines from a supplier.)

A retailer in Winnsboro, Louisiana, is licensed to sell John Deere tractors. This retailer is a: a.) product and trade name franchisee B.) restricted franchisor C.) business format franchisee D.) licensed franchisor E.) relationship franchisee

D.) franchise (The franchisor grants the rights to the franchisee.)

A(n) _____ is a continuing relationship in which an individual or business grants business rights to operate or sell a product to another individual or business. A.) leasing contract B.) alliance for profit C.) brokered partnership D.) franchise E.) countertrade

D.) price (Influential factors in creating a store's atmosphere include employee type and density, merchandise type and density, fixture type and density, sound, odors, and visual factors.)

All of the following are factors in creating a store's atmosphere EXCEPT: A.) employee type and density B.) fixture type and density C.) sound D.) price E.) odors

A.) outbound (Outbound telemarketing is generally used for unsolicited selling.)

Amy received a phone call last night during supper. The caller wanted her to attend a meeting to learn about timeshares. Since Amy had never thought of purchasing this type of product before she received the call, this is obviously an example of _____ telemarketing. A.) outbound B.) lead generation C.) customer service D.) inbound E.) relationship

B.) are often large department stores that are located at opposite ends of a mall to create a heavy pedestrian traffic flow (This describes anchor (or generator) stores.)

Anchor stores: A.) are the stores within the mall that sell services rather than products B.) are often large department stores that are located at opposite ends of a mall to create a heavy pedestrian traffic flow C.) usually specialize in high-priced items like furniture D.) is the generic name given to supermarkets that are located within shopping malls E.) is a term for retail stores that "drop off" to freestanding locations

B.) generator store (Anchor stores or generator stores are usually located at opposite ends of the mall to create heavy foot traffic.)

Another name for an anchor store is a: A.) mass merchandiser B.) generator store C.) host store D.) shopping center pillar E.) destination store

C.) business format franchising (Business format franchising is an ongoing relationship between a franchisor and a franchisee in which the franchisor sells a franchisee the rights to use a format or approach to doing business.)

Arby's, Jiffy-Lube, Baskin-Robbins, and Sylvan Learning Centers are examples of _____ because the franchisee buys the right to use the franchisor's approach to doing business. A.) trade name franchising B.) product franchising C.) business format franchising D.) franchise wholesaling E.) logistic franchising

A.) independent (Independent retail outlets are owned by a single person or partnership and not operated as part of a larger retail institution.)

Around the world, most retailers are _____, operating one or a few stores in their community, owned by a single person or partnership and not operated as part of a larger retail institution. A.) independent B.) chain stores C.) franchise outlets D.) specialty clubs E.) product assortment stores

E.) High prices (The level of gross margin and the price level generally match.)

As a general rule of thumb, a retailer that has a high gross margin will have: A.) m-commerce capabilities B.) an inventory management system C.) low prices D.) salespeople trained in cross-selling techniques E.) high prices

E.) interactivity (Interactivity is used to differentiate one store from another. Interactivity gets customers involved in the retailing experience.)

At the American Girl store in Chicago, dolls can be purchased and girls can then go to the American Girl Cafe or American Girl Theatre and even have birthday parties. This is an example of using: A.) nonstore retailing B.) m-commerce C.) convenience retailing D.) e-business E.) interactivity

C.) has greater visibility to customers than it would in a shopping center (Stand-alone stores often have greater visibility and easier access than those in a mall location.)

Banana Republic stores are usually built in shopping centers, but in a few cities the company has chosen to build a stand-alone store. Its freestanding store entices customers to shop because it: A.) contains merchandise different from that offered in other Banana Republic stores B.) is near a shopping center C.) has greater visibility to customers than it would in a shopping center D.) is an off-price retailing operation for the store chain E.) is most likely a franchise that offers lower prices than the shopping center locations

E.) interactivity (Retailers use interactivity in stores to differentiate themselves from the competition. Interactivity gets customers involved in the retailing experience.)

Build-a-Bear is a retailer where children can design and assemble a stuffed animal from shelves full of parts. Each child starts by choosing an animal. Then, the child moves to a place where the stuffing is added. Finally, the child moves to the area where the last accessories are added. Build-a-Bear is part of a recent trend in retailing referred to as: A.) nonstore retailing B.) m-commerce C.) convenience retailing D.) e-business E.) interactivity

A.) product and trade name franchisee (In product and trade name franchising, a dealer agrees to sell certain products provided by a manufacturer or wholesaler.)

Chattanooga Bottling Company is licensed to bottle Coke products. The Chattanooga Bottling Company is an example of a: A.) product and trade name franchisee B.) redistributor franchisor C.) business format franchisee D.) licensed franchisor E.) relationship franchisee

A.) compete on the basis of low prices, high turnover, and high volume (Discount stores compete on the basis of low prices, high turnover, and high volume.)

Discount stores: A.) compete on the basis of low prices, high turnover, and high volume D.) offer more SKUs than department stores E.) sell high-priced, low-turnover products D.) provide their customers with full service E.) compete on the basis of assortment and depth

C.) business format franchisors (Business format franchising is an ongoing relationship between a franchisor and a franchisee in which the franchisor sells a franchisee the rights to use a format or approach to doing business.)

Domino's pizza, Hyatt Corporation, and Wendy's are all examples of _____ because the franchisee buys the right to use the franchisor's approach to doing business. A.) product and trade name franchisors B.) redistributor franchisors C.) business format franchisors D.) licensed franchisors E.) relationship franchisors

E.) Buyer (A buyer is a department head who selects the merchandise for his or her department and may also be responsible for promotion and personnel.)

Each department in a department store is usually headed by a _____ who selects the merchandise mix for the department and may also choose the promotional devices and personnel for that department. A.) franchisee B.) financial broker C.) comptroller D.) human resources manager E.) buyer

B.) They carry a limited line of high-turnover goods. (Convenience stores carry a limited line of high-turnover, high-priced goods and resemble miniature supermarkets.)

Flash Foods is the name of a chain of convenience stores with self-service gas pumps. What do you know about the convenience stores? A.) They carry a wide assortment of products. B.) They carry a limited line of high-turnover goods. C.) They compete on the basis of low price. D.) They carry a limited but deep assortment of products. E.) They carry the freshest of produce.

E.) supermarkets (The key factors are the emphasis on food and the size of the stores.)

Giant Eagle is a chain of retail outlets in Ohio, West Virginia, Maryland, and Pennsylvania that are described as large, departmentalized, self-service stores that specialize in food and limited nonfood items. Giant Eagle stores are: A.) off-price retailers B.) discount stores C.) wholesale clubs D.) convenience stores E.) supermarkets

B.) specialty discount store (A specialty discount store (also called a category killer) offers a nearly complete selection of single-line merchandise and uses self-service, discount prices, high volume, and high turnover to its advantage.)

Glen's Safety First! sells a huge assortment of firefighting equipment at greatly reduced prices. It offers customers few services and competes on the basis of moderate to low prices on the large quantities of merchandise it stocks. Glen's Safety First! is an example of a: A.) full-line discount store B.) specialty discount store C.) general store D.) department store E.) wholesale store

B.) atmosphere (Color is a main ingredient of a retail atmosphere.)

Home Depot has selected orange as its corporate color. It's a good choice. At the gut level, orange connotes happiness and warmth. A recent article in one of the company's advertising brochures spoke about choosing colors for home decorating. It referred to this color as "joyful orange." The color orange is part of the _____ at Home Depot stores. A.) cultural impact B.) atmosphere C.) target strategy D.) merchandise mix E.) promotional strategy

E.) Department store (Department stores house several departments under one roof.)

Housing several departments under one roof, a _____ carries a wide variety of shopping and specialty goods, including apparel, cosmetics, housewares, electronics, and sometimes furniture. A.) supermarket B.) specialty store C.) convenience store D.) super club E.) department store

C.) entertainment for customers to get them involved (Interactivity is more than just entertaining customers, it is an attempt to get them involved.)

Interactivity is one of the new developments in retailing. In retailing, interactivity refers to: A.) the use of improved communications with customers B.) a new form of customer relationship marketing C.) entertainment for customers to get them involved D.) the use of information kiosks E.) the creation of a static atmosphere

B.) A specialty store (Specialty stores specialize in a given type of merchandise.)

James wants to open a small store that offers only products, knowledge, and advice for those who like to build Hot Rods, Street Rods, and refurbish classic cars. Which of the following types of stores would most likely support an effective launch of his business idea? A.) An off-price retailer B.) A specialty store C.) A full-discount store D.) A general store E.) A warehouse club

B.) mass merchandiser (Mass merchandising is the retailing strategy whereby retailers use moderate to low prices on large quantities of merchandise and lower levels of service to stimulate high turnover of products.)

Kmart utilizes a strategy of moderate to low prices on large quantities of products and lower levels of service to stimulate a high turnover of inventory. Kmart offers a wide variety of different product lines. Kmart is an example of a: A.) factory outlet B.) mass merchandiser C.) convenience store D.) franchising operation E.) specialty store

A.) Consumer demand for one-stop shopping often leads to scrambled merchandising. (In many cases, supermarkets offer a wide variety of nontraditional goods and services under one roof (a strategy called scrambled merchandising) to respond to consumers who want convenience.)

Kroger is the second-largest supermarket chain in the United States. Which of the following is the most likely reason why Kroger supermarkets sell all types of foodstuffs as well as nonfood products including a wide range of eyewear and accessories? A.) Consumer demand for one-stop shopping often leads to scrambled merchandising. B.) The fulfillment of the wheel of retailing hypothesis C.) Inflationary economic climate D.) Repositioning as a discounter E.) Growth of convenience merchandising

D.) freestanding stores (Freestanding stores are often used by large retailers.)

Large retailers such as Target and Walmart and sellers of shopping goods such as automobiles and furniture often use _____ for their locations. A.) remote, rural locations B.) office complexes C.) factory outlets D.) freestanding stores E.) regional malls

D.) warehouse membership club (Warehouse membership clubs sell a limited selection of brand name appliances, household items, and groceries, usually in bulk on a cash-and-carry basis to members only.)

Laura buys supplies for her catering business at a retailer that stocks a limited selection of items, which are sold in bulk on a cash-and-carry basis to members only. As she browses through the huge store, she buys flour, a set of muffin pans, and a package of paper towels as well as an assortment of fresh produce. Laura is most likely shopping at a(n): A.) off-price discount retailer B.) factory outlet C.) industrial supply warehouse D.) warehouse membership club E.) wholesale outlet

C.) freestanding store (A freestanding store has the advantage of low site costs and will be a benefit if consumers are willing to seek it out.)

Maggie Moo's has decided that consumers will drive out of their way for the store's yummy ice cream offerings. The owner needs to keep his overhead costs (such as rent) low and wants to avoid locating near competitors. For a location, Maggie Moo's should open in a: A.) factory outlet B.) strip center C.) freestanding store D.) shopping center E.) regional mall

A.) market-basket analysis (The analysis looks for products that are commonly purchased together to help retailers merchandise their stores to place products in the right places.)

Many technologically advanced retailers are using a technique called _____ to analyze the huge amounts of data collected through their point-of-purchase scanning equipment that will enable them to better meet the needs of customers. A.) market-basket analysis B.) simulated test marketing C.) product/customer correlation analysis D.) market cross-tabulations E.) customer lifestyle analysis

A.) direct mail (Good mailing lists come from an internal database or from list brokers.)

Marketers can precisely target their customers according to demographics, geographics, and psychographics with: A.) direct mail B.) vending machines C.) franchise stores D.) specialty retail outlets E.) electronic selling

A.) are often able to take advantage of manufacturers' faulty sales forecasting (Off-price retailers buy manufacturers' overruns at cost or even less.)

Off-price retailers: A.) are often able to take advantage of manufacturers' faulty sales forecasting B.) very often offer a consistent assortment of merchandise C.) seldom stock brand name merchandise D.) are owned by the manufacturer of the products they sell E.) offer very deep assortments

D.) shop using wireless mobile devices (M-commerce goes beyond text message advertisements to allow consumers to purchase goods and services by using wireless mobile devices.)

One of the new developments in retailing is m-commerce. M-commerce refers to the ability to: A.) use unique communication techniques to send advertising messages B.) create situations in which the AIDA technique is effective C.) more efficiently manage customer demand with inventory D.) shop using wireless mobile devices E.) motivate consumers to buy more by creating more feedback channels

E.) mobile (M-commerce, or "mobile" e-commerce enables consumers using wireless mobile devices to connect to the Internet and shop.)

One of the new developments in retailing is m-commerce. The "m" in m-commerce stands for: A.) motivated B.) multimedia C.) marketing D.) managed E.) mobile

B.) trading up (To avoid selling customers something they do not need or want, however, salespeople should take care when practicing trading-up techniques.)

Persuading customers to buy a higher-priced item than they originally intended to buy is referred to as: A.) suggestion selling B.) trading up C.) conversion selling D.) relationship marketing E.) interactive selling

E.) temporary retail establishments (Pop-up shops are temporary shops that allow a flexible location without a long-term commitment.)

Pop-up shops are: A.) Web sites that pop up while you are visiting a site B.) m-commerce C.) convenience retailing D.) e-business E.) temporary retail establishments

D.) better location, longer hours, and faster service (Convenience stores carry a limited amount of high-turnover, high-priced goods and resemble miniature supermarkets. Customers patronize these stores because of convenience.)

Prices are usually higher in convenience stores than in supermarkets because convenience stores offer: A.) more specialty goods B.) a wider variety of products C.) a higher level of customer services D.) better location, longer hours, and faster service E.) higher-quality goods

B.) Level of sales (The four elements used to classify retail establishments are its ownership, level of service, product assortment, and price.)

Retail establishments are generally classified according to all of the following EXCEPT: A.) ownership B.) level of sales C.) level of service D.) price E.) product assortment

A.) presentation and personnel

Retailers control the six Ps of the retailing mix. The six Ps include the marketing mix plus: A.) presentation and personnel B.) production and people C.) potential and perception D.) personality and persuasion E.) positioning and purchasing

B.) retailing mixes (Retailers are altering several aspects of the six Ps of the retailing mix.)

Retailers such as Target and JCPenney are responding to consumer needs by changing product mixes, hours of operation, locations, and prices. These stores are changing aspects of their: A.) merchandising groupings B.) retailing mixes C.) product offerings D.) retail trade areas E.) store positioning strategies

C.) Franchise (Franchises are owned and operated by individuals but are licensed by larger supporting organizations.)

Rick owns and operates his own UPS shipping store. He has licensed the right to use UPS business systems. Rick's shipping store is a: A.) doubly managed outlet B.) chain store C.) franchise D.) independent retailer E.) licensor

E.) Scrambled merchandising (In many cases, supermarkets offer a wide variety of nontraditional goods and services under one roof, which is a strategy called scrambled merchandising.)

Safeway, Avanza (for the Hispanic market), Publix, and other supermarket chains offer a variety of nontraditional goods and services such as video rental, flower shops, dry cleaning, and banking. This practice is called: A.) convenience merchandising B.) retail wheeling C.) specialty service D.) trade-up positioning E.) scrambled merchandising

E.) Independent retailers (These are examples of independent retailers.)

Small neighborhood florists, shoe stores, and ethnic food markets are most likely to be: A.) supercenters B.) franchise outlets C.) membership clubs D.) chain stores E.) independent retailers

A.) they can destroy the profit potential for a category of merchandise for other retailers (Because these stores dominate their narrow merchandise segment, they are called category killers.)

Specialty stores such as Best Buy, Babies "R" Us, and Bed, Bath, and Beyond are often called category killers because: A.) they can destroy the profit potential for a category of merchandise for other retailers B.) they are located at stand-alone sites C.) of their broad merchandise mix and shallow assortment D.) they offer an exclusive category of merchandise E.) they carry only fast-selling items

D.) Chain stores (This is the definition of chain stores.)

Stores that are owned and operated as a group by a single organization are called _____. Under this form of ownership, many administrative tasks are handled by the home office. A.) home base stores B.) independent retailers C.) franchisees D.) chain stores E.) strip centers

E.) direct retailing (Direct retailing includes door-to-door selling and party plans.)

Susan Adams makes children's clothing. She is also the sales representatives and sets up parties and fashion shows at homes of mothers to demonstrate the quality and value of her clothing. Susan is using: A.) primary marketing B.) automatic vending C.) personal marketing D.) electronic retailing E.) direct retailing

E.) outbound; inbound (Outbound telemarketing is generally used for unsolicited selling, while inbound calls are from customers placing orders.)

Telemarketing can consist of either unsolicited _____ sales calls, or _____ sales calls, which allow companies to receive orders through toll-free telephone numbers. A.) order placement; lead generation B.) push strategy; pull strategy C.) systematic; synergistic D.) qualifying; finalizing E.) outbound; inbound

C.) Specialty store (A specialty store is a retail store specializing in a given type of merchandise.)

Texas-based Grape Vine Market is an 18,000-square-foot store offering highly collectible food and wine—along with some other culinary perks, including a cooking school—all in a setting crafted to make shoppers feel comfortable. It stocks more than 5,500 different kinds of wine. Grape Vine Market is best described as a: A.) hypermarket B.) convenience store C.) specialty store D.) department store E.) general store

A.) online retailing (Online retailing is a two-way interactive service offered to users with personal computers.)

The Cedar Store carries a full line of cedar swings, gliders, garden benches, and tables. All of its products can be purchased through its Web site. The site has done well since the Cedar Store's products do not need to be touched or smelled before purchase. The Cedar Store is engaging in: A.) online retailing B.) shop-at-home networking C.) mobile vending D.) franchising E.) electronic wholesaling

D.) pop-up shop (Pop-up shops are temporary shops that allow a flexible location without a long-term commitment.)

The Halloween Super Store is only open from September until November, usually in an otherwise vacant store. This is an example of a: A.) temp store B.) m-commerce C.) convenience retailing D.) pop-up shop E.) flash store

C.) shop-at-home network (Using a television channel to display goods that are sold over the phone is the shop-at-home network format.)

The Mad Stencilist has decided to demonstrate how to use its products to create custom gift tags on a local cable television channel and is encouraging shoppers to call a toll-free number to purchase the merchandise with a credit card. This form of retailing is called a(n): A.) in-store electronic shopping B.) videotex C.) shop-at-home network D.) electronic point of sale E.) catalog viewing

A.) Buyer (Each department in a department store is usually headed by a buyer who selects the merchandise mix for the department and may also choose the promotional devices and personnel for that department.)

The _____ at John Lewis, Britain's largest department store chain, selects the merchandise for his or her department and is often responsible for its promotion and for managing the personnel in that department. A.) buyer B.) purchasing agent C.) retail broker D.) merchandiser E.) franchisee

D.) merchandise mix in that department (Each department in a department store is usually headed by a buyer who selects the merchandise mix for the department and may also choose the promotional devices and personnel for that department.)

The buyer who heads a department in a department store is responsible for the: A.) store's exchange and return policies B.) store's credit policies C.) chain's expansion efforts D.) merchandise mix in that department E.) store's advertising program

C.) define the target market (The target market's wants and needs form the foundation for a successful retail strategy.)

The first task of developing a retail strategy is to: A.) create a buying organization B.) decide what to buy C.) define the target market D.) create a promotional strategy E.) define the pricing policies

A.) direct retailing (Direct retailing is the selling of products by representatives who work door-to-door, office-to-office, or at home sales parties.)

The manufacturer of Cutco knives uses students as salespeople. The salespeople go into customers' homes and demonstrate the product, and the sales transactions usually occur in a home setting. This form of nonstore retailing is called: A.) direct retailing B.) personal marketing C.) direct marketing D.) automatic vending E.) electronic retailing

E.) is the retailer's product offering (The retailer's product offering is the mix of products offered to the consumers, also called the product assortment or merchandise mix.)

The merchandise mix: A.) is the term used for price-bundled merchandise B.) is the term for the marketing communications used by retailers C.) refers to the six levels in a buying organization D.) describes the composition of a traditional shopping center E.) is the retailer's product offering

C.) lifestyle centers (Lifestyle centers are open-air shopping centers targeted to upper-income shoppers with an aversion for the "the mall.")

The newest generation of shopping centers is: A.) regional malls B.) shopping business districts C.) lifestyle centers D.) franchised centers E.) strip malls

E.) Assortment depth (Breadth and depth refers to product assortment.)

The number of different varieties of fishing lures carried by the Angler's Store refers to the store's: A.) store's supply standard B.) complete retail offering C.) retail mix D.) volume E.) assortment depth

A.) atmosphere (This is the definition of atmosphere.)

The overall impression conveyed by a store's physical layout, decor, and surroundings is referred to as the store's: A.) atmosphere b.) merchandising mix C.) aura D.) position E.) positioning

B.) franchisee (The franchisee sells the franchisor's products.)

The party in a franchise relationship that is an individual or business granted the right to sell another party's product is called the: A.) franchisor B.) franchisee C.) receiver D.) renter E.) owner/operator

A.) Independent retailer (Independent retailer stores are owned by a single person or partnership and not operated as part of a larger retail institution.)

Tiffany owns a gift shop that carries clothing and memorabilia of local high school teams as well as home decor objects. She is the sole owner of the store, so in terms of ownership, her store would be classified as a(n): A.) independent retailer B.) freestanding store C.) franchise D.) chain store E.) common retailer

C.) factory outlets (Factory outlets are a type of off-price retailer that is owned and operated by a manufacturer and carries one line of merchandise--its own.)

Well-known manufacturers such as Bose, Ralph Lauren, and Reebok have decided that the most profitable way to dispose of out-of-season and irregular stock is to open stores and sell their own merchandise. These stores are types of: A.) seasonal outlets B.) mass merchandisers C.) factory outlets D.) discount stores E.) bargain basements

B.) trading up (Trading up means persuading customers to buy a higher-priced item than the one they intended to buy.)

When Irvin went into Lowe's to buy his wife a small tool set she said she wanted, the sales clerk suggested a larger set with a tool kit on wheels that included a router and circular saw. In this example, the sales clerk engaged in: A.) suggestion selling B.) trading up C.) bait and switch D.) customer relationship retailing E.) service-disguised selling

C.) expected to create heavy foot traffic for the center (There is typically more than one anchor store in any mall. Freestanding stores are destination stores.)

When JCPenney announced it would open a 97,000-plus square foot anchor store in the new West Grand Promenade, it meant that JCPenney would be: A.) the only large store in the shopping center B.) a destination store C.) expected to create heavy foot traffic for the center D.) in an isolated location outside the shopping center structure E.) unable to control the local store's pricing policies

B.) employee density (Employee density is concerned with the amount of employees per 1,000 square feet in the store--not in the neighborhood. The other four factors are to be considered when deciding on a location.)

When opening a new retail operation, the retailer needs to consider all of the following factors EXCEPT: A.) traffic flow B.) employee density C.) nature of the competition D.) land costs E.) economic growth potential

C.) scrambled merchandising (This is the definition of scrambled merchandising.)

When supermarkets offer a wide variety of nontraditional goods and services under one roof, they are engaged in: A.) cross-selling B.) trading up C.) scrambled merchandising D.) disintermediation E.) cross-docking

B.) atmosphere (The main element of a store's presentation is its atmosphere, how the store's physical layout, decor, and surroundings convey an overall impression.)

When you walk into an Apple store, you are immediately greeted by a clerk. The store is simply designed with layouts where you can experience products such as iMacs, iPhones, a variety of iPods, cameras, printers, and other accessories. If you have questions about the products, you can visit the Genius Bar. There is a place where kids can play and experience Mac to by sitting on big round cushy chairs. This description is of the store's: A.) customer service strategy B.) atmosphere C.) target strategy D.) merchandise mix E.) promotional strategy

A.) suggestion selling (Suggestion selling seeks to broaden customers' original purchase with related items.)

Whenever a customer opens an account at First Southern National Bank, a teller or account representative asks the customer whether he or she needs a CD, online banking, or other services. In other words, the account representative engages in: A.) suggestion selling B.) trading up C.) bait and switch D.) customer relationship retailing E.) service-disguised selling

E.) Walmart (Walmart's annual U.S. sales alone are greater than the next five U.S. retail giants' sales combined.)

Which U.S. retailer is the number one sales volume retailer in the world? A.) Sears B.) JCPenney C.) Target D.) Kroger E.) Walmart

B.) Product and trade name franchising (This describes product and trade name franchising. Examples include Coca-Cola bottlers and retailers selling Michelin tires.)

Which form of franchising involves a dealer agreeing to sell certain products provided by a manufacturer or a wholesaler? A.) Primary franchising B.) Product and trade name franchising C.) Business format franchising D.) Limited franchising E.) Focused franchising

C.) Business format franchising (This describes business format franchising. Examples include restaurant, hotel and motel, printing, and real estate franchises.)

Which form of franchising is an ongoing business relationship between a franchisor and a franchisee where the franchisor "sells" a franchisee the rights to use the franchisor's approach to doing business? A.) Primary franchising B.) Product and trade name franchising C.) Business format franchising D.) Process franchising E.) Service franchising

B.) The goal of a retail store's promotion mix is to position the store in consumers' minds. (Promotion is part of the retailing mix and includes advertising, public relations and publicity, and sales promotions. Most advertising for retailers is carried out at the local level. Retailers have been very successful with direct marketing.)

Which of the following statements about a retailer's promotion strategy is true? A.) The design of the promotion strategy would be done separately from the creation of the retailing mix. B.) The goal of a retail store's promotion mix is to position the store in consumers' minds. C.) Most advertising for retailers is carried out at the national level. D.) Retailers find direct mail marketing inefficient. E.) Retail promotion strategy does not include public relations activities.

B.) Nonstore retailing is currently growing faster than in-store retailing. (Nonstore retailing refers to shopping without visiting a store; convenience is playing a major role in the growth of nonstore business.)

Which of the following statements about nonstore retailing is true? A.) The nature of the communications between the retailer and the customer is the same in all forms of nonstore retailing. B.) Nonstore retailing is currently growing faster than in-store retailing. C.) More than 80 percent of all sales are made through nonstore retailing. D.) The high growth rate for nonstore retailing is due to the growth of shop-at-home television networks. E.) Nonstore retailing is increasing at a rate lower than in-store retailing.

D.) Because barriers to entry are low, the restaurant business appeals to many people. (According to the text, restaurants straddle the line between a retailing establishment and a service industry. Time poverty is not a demographic factor. At the moment, food-service companies are generally overextended.)

Which of the following statements about restaurants is true? A.) Restaurants are clearly a retailing establishment. B.) There is a strong demand for many more restaurants. C.) The demographic issue of time-poor consumers has led to a growing demand for restaurants. D.) Because barriers to entry are low, the restaurant business appeals to many people. E.) Restaurants are clearly a service industry.

C.) Specialty stores typically avoid price wars. (Customers usually consider price to be of secondary importance in their selection of a specialty store. Customers at specialty stores are very concerned with the distinctiveness of the merchandise or the store's physical appearance. Specialty stores provide a low-risk testing ground for new products. A typical specialty store carries a narrower assortment of specialty merchandise than department stores.)

Which of the following statements about specialty stores is true? A.) Customers usually consider price to be the most important factor in their selection of a specialty store. B.) Customers at specialty stores are not concerned with the distinctiveness of the merchandise or the store's physical appearance. C.) Specialty stores typically avoid price wars. D.) Specialty stores are ineffective test markets. E.) A typical specialty store carries a wider assortment of specialty merchandise than department stores.

E.) A specialty store (These are characteristics of specialty stores.)

Which of the following types of stores has a high gross margin, a narrow product assortment, and a high level of service? A.) A supermarket B.) A warehouse club C.) A convenience store D.) A full-line discount store E.) A specialty store

A.) Full-line discount stores (This describes full-line discounters, which are often called mass merchandisers.)

Which type of discount store offers consumers very limited service and carries a broad assortment of nationally branded "hard goods," such as housewares, toys, automotive parts, clothing, bedding, and maybe a limited line of nonperishable food items? A.) Full-line discount stores B.) Discount specialty stores C.) Factory outlets D.) Fashion stores E.) Specialty supercenters

C.) Franchise (This describes a franchise.)

Which type of retail ownership is owned and operated by an individual but is licensed by a larger supporting organization? A.) Independent retailer B.) Chain store C.) Franchise D.) Cooperative E.) Secondary retailer

D.) A specialty store (This is the definition of a specialty store.)

Which type of retail store specializes in a given type of merchandise? A.) An independent store B.) A department store C.) A discount store D.) A specialty store E.) A first-level store

B.) A department store (A department store carries a wide variety of shopping and specialty goods in several departments and provides a high level of service, all of which is labor intensive and adds to the cost of doing business.)

Which type of retail store would typically have the highest labor costs? A.) A warehouse club B.) A department store C.) An off-price store D.) An off-price retailer E.) A discount store

C.) Direct retailing (This is the definition of direct retailing.)

Which type of retailing is the selling of products by representatives who work door-to-door, office-to-office, or at home sales parties? A.) Personal marketing B.) Remote retailing C.) Direct retailing D.) Off-site retailing E.) Primary retailing

C.) The franchisor (The franchisor grants rights to the franchisee in franchise relationships.)

Who is the originator of a trade name, product, methods of operation, and so on that grants operating rights to another party to sell its product? A.) The renter B.) The lessor C.) The franchisor D.) The franchisee E.) The owner/operator

D.) A location decision typically requires long-term commitment of resources (One critical point about location choice is that it ties up a large amount of resources and is difficult to change.)

Why is the selection of a retail location so critical to a store's success? A.) Location affects pricing decisions but does not affect store image. B.) Customers will not drive out of their way to find a store. C.) A location decision ties up funds that will not appreciate or gain in value. D.) A location decision typically requires long-term commitment of resources. E.) Employee density is affected by the area in which the store is located.

B.) Retailing (This is the definition of retailing)

____ is defined as all activities directly related to the sale of goods and services to the ultimate consumer for personal, nonbusiness use or consumption. A.) Wholesaling B.) Retailing C.) Business D.) Franchising E.) Distribution

A.) Nonstore retailing (Nonstore retailing is selling to consumers through other means than by visiting a store.)

____ refers to shopping without visiting a store and is currently growing faster than in-store shopping because of the consumer demand for convenience. A.) Nonstore retailing B.) Customization C.) Hypershopping D.) Niche marketing E.) Specialty merchandising

A.) Supermarkets (This is the definition of a supermarket.)

_____ are large, departmentalized, self-service retailers that specialize in food and some nonfood items. A.) Supermarkets B.) Convenience stores C.) Membership wholesale clubs D.) Discount stores E.) Assortment merchandisers

B.) Discount stores (This is the definition of discount stores. Convenience stores are miniature supermarkets, carrying only a limited line of high-turnover convenience goods.)

_____ are retailers that compete on the basis of low prices, high turnover, and high volume. A.) Convenience outlets B.) Discount stores C.) General stores D.) Department stores E.) Specialty stores

A.) Specialty discount stores (This describes specialty discount stores, which are also called category killers.)

_____ are single-line stores that offer a nearly complete selection of one line of merchandise and use self-service, discount prices, high volume, and high turnover of merchandise to their advantage. A.) Specialty discount stores B.) Factory outlets C.) Mass merchandisers D.) Membership clubs E.) General stores

A.) Destination stores (Consumers seek out destination stores.)

_____ are stores that consumers purposely plan to visit. They are often built as freestanding stores. A.) Destination stores B.) Benefit retailers C.) Relationship builders D.) Lifestyle stores E.) M-stores

C.) Convenience stores (This describes convenience stores.)

_____ carry a limited line of high-turnover, high-priced goods and resemble miniature supermarkets. These self-service stores are typically located near residential areas and are open long hours, seven days a week. A.) Specialty stores B.) Wholesale stores C.) Convenience stores D.) Factory outlets E.) General stores

A.) Automatic vending (Automatic vending is the use of machines to offer goods for sale.)

_____ is a low-profile yet important form of retailing in which consumers get products out of automated machines, and it accounts for billions of dollars worth of goods each year in the United States. A.) Automatic vending B.) Party-plan selling C.) Direct marketing D.) A pyramid scheme E.) Professional selling

B.) Online retailing (Online retailing is also called e-tailing and is a type of shopping available to consumers with access to the Internet.)

_____ is a type of shopping available to consumers with access to the Internet. A.) Shop-at-home networks B.) Online retailing C.) Franchising D.) Electronic wholesaling E.) Mobile vending

E.) Mass merchandising (This describes full-line discounters, which are often called mass merchandisers.)

_____ is the retailing strategy of using moderate to low prices on large quantities of products and lower service to stimulate a high turnover of inventory. A.) Specialty store positioning B.) Merchandise positioning C.) M-store retailing D.) The wheel of retailing E.) Mass merchandising

A.) Telemarketing (This is the definition of telemarketing.)

_____ is the use of the telephone to sell directly to consumers. A.) Telemarketing B.) Two-way vending C.) Teleprompting D.) Indirect marketing E.) Phone vending

D.) Direct marketing (Direct marketing includes techniques, such as catalogs and telemarketing, to get consumers to make a purchase from their home, office, or other nonretail setting.)

_____ refers to the techniques used to get consumers to buy from their home. Those techniques include direct mail, catalogs and mail-order, telemarketing, and electronic retailing. A.) Nonstore vending B.) In-home retailing C.) Franchising D.) Direct marketing E.) Direct retailing

E.) Warehouse membership clubs (This describes warehouse membership clubs.)

_____ sell a limited selection of brand name appliances, household items, and groceries, usually in bulk on a cash-and-carry basis to members only. A.) Super outlets B.) Factory outlets C.) Wholesale discounters D.) Off-price discount retailers E.) Warehouse membership clubs

E.) Gross margin (This is the definition of gross margin.)

_____ shows how much the retailer makes as a percentage of sales after the cost of goods sold is subtracted. A.) Net income B.) Retained earnings C.) Profitability D.) Net equity E.) Gross margin