MRKT 362 Test #1

Which of the following best describes retailing?

It is the set of business activities that adds value to the products and services sold to consumers for their personal or family use.

New retail formats are created and evolve because:

Consumers' needs and competition change

More and more traditional brick-and-mortar retailers continue to add Internet channels to improve their ability to serve their customers and build a competitive advantage through the following ways except for:

Internet channels always negatively affect consumers' shopping experiences.

Why is providing assortments an advantageous business activity?

It enables the customer to choose from a wide selection of brands, designs, sizes and prices all in one store.

Which of the following does NOT describe breaking bulk?

It hurts manufacturers' profits

Conscious marketing encompasses all of the following principles except for:

Making a profit by selling products and services

Whereas conventional supermarkets carry about 30,000 SKUs, limited assortment supermarkets or extreme value food retailers only stock 1,500 SKUs. Which of the following is NOT the advantage of stocking fewer SKUs?

More fulfilling customer experience

A retailer that is vertically integrated:

Performs more than one set of activities in the supply chain from manufacturing to selling to end user

The competition between retailers that sell similar merchandise using different formats, such as discount and department stores, is called:

Scrambled merchandising

Each different item of merchandise in a retail store is called a(n):

Stock keeping unit (SKU)

How can conventional supermarkets differentiate their offerings?

They can generate private label merchandise.

Which of the following statements about warehouse clubs is true?

Warehouse clubs typically have relatively low inventory holding costs

Assortment

_________ refers to the number of different items in a merchandise category.

Variety

_________ refers to the number of different merchandise categories a retailer offers.

Convenience stores:

are a modern form of the mom-and-pop grocery/general store

Which of the following options is NOT a typical stakeholder of a retailer?

competitors

My Favorite Quilt Shop carries quilting thread of every brand, color, and strength in cotton and poly-cotton blends. With reference to quilting threads, My Favorite Quilt Shop has:

deep assortment

Sea Bees sells a variety of aquarium maintenance supplies ranging from filters, to chemicals, to lights, to feed and even aquatic toys. Sea Bees can be said to have:

deep assortment

The Men's Warehouse stocks 250 different styles and colors of ties. This assortment of ties can be referred to as the store's:

depth of merchandise

Coach, a popular handbag name brand, has manufactures their product selling the product to department and specialty stores as well has their own Coach stores. Coach is practicing:

forward integration

Category specialists:

offer a narrow variety but deep assortment of merchandise

How can a convenience store develop a sustainable advantage against the competition?

open smaller stores close to where consumers shop and work

A ______________ is a business that sells products and/or services to consumers for their personal or family use.

retailer

A(n) ______________ is a set of firms that make and deliver a given set of goods and services to the ultimate consumer.

supply chain

_________ refers to the number of different merchandise categories a retailer offers.

variety

Which of the following does NOT describe how retailers increase the value consumers receive from their purchases?

wholesaling