MKT 350: Chapter 15 Practice Problems

_______, popular in Europe, combine supermarkets and discount shopping in one location. These retailers offer 45,000-60,000 different types of low-priced products. a.Hypermarkets b.Warehouse clubs c.Megamarts d.Superstores

a. Hypermarkets - Hypermarkets are stores that combine supermarkets and discount shopping in one location. These stores are larger than superstores and dedicate 40 to 50 percent of their space to grocery products and the remainder to general merchandise.

Jessica invites a sales representative from The Pampered Chef, a company that sells kitchen tools, to her home. The representative brings sample products and makes a sales presentation to Jessica and 10 of her friends. Once the presentation is over, the representative takes orders from Jessica and the guests. This is an example of _______. a.a party plan b.direct-response marketing c.online retailing d.home shopping

a. a party plan - A party plan is when a consumer acts as a host and invites friends and associates to view merchandise in an informal atmosphere (type of direct selling)

Which of the following is the definition for retailing? a.The act of producing and distributing goods and services to channel members in order to earn a profit b.All transactions in which the buyer is the ultimate consumer and intends to use the product for personal, family, or household purposes c.All activities involved in producing, distributing, pricing, and staging items in a storeroom setting for ultimate purchase by business and household consumers d.The business of selling to customers, especially in large quantities

b. all transactions in which the buyer is the ultimate consumer and intends to use the product for personal, family, or household purposes

KidRead is developing a way to increase the number of subscribers to its children's book subscription service using direct marketing. It has narrowed down the options to _______ in which it would mail out postcards advertising the service and having new customers place mail, telephone, or online orders or _______ in which it would call potential subscribers to sell them the service over the phone. a.catalog marketing; online marketing b.direct-response marketing; telemarketing c.catalog marketing; television home shopping d.online marketing; telemarketing

b. direct-response market, telemarketing - direct-response marketing is when retailer advertises product and makes it available through mail or phones order - telemarketing is marketing-related activities by telephone

Which type of store offers a wide assortment of products, has high inventory turnover, and operates with low margins and high sales volume? a.Convenience store b.Discount store c.Department store d.Warehouse club

b. discount stores - Discount stores are self-service general-merchandise outlets that offer products at low prices. They have lower profit margins than conventional retailers, but higher sales volume. To keep inventory turnover high, they have a wide assortment of products.

When a retailer purchases a product, it does so in order to _______. a.store the product for future use b.resell the product to ultimate consumers c.use the product in its day-to-day operations d.resell the product to other retailers

b. resell the product to ultimate consumers

Amazon, Target, Kroger, Bed Bath & Beyond, and Lowe's are examples of _______. a.manufacturers b.retailers c.end-users d.wholesalers

b. retailers - A retailer is an organization that purchases products for the purpose of reselling them to ultimate consumers

All of the following are differences between superstores and discount stores, except _______. a.superstores carry food products that a grocery store carries, but discount stores do not b.superstores carry routinely purchased consumer products, but discount stores do not c.superstores carry more items in overall inventory than discount stores d.superstores offer more services such as auto repair, dry cleaning, and check cashing than discount stores

b. superstore carry routinely purchased consumer products, but discount store do not - superstores and discount stores both carry routinely purchased products, superstores just carry a wider variety of food products ex. Target vs. Target Superstore

Sometimes called limited-line retailers, _______ carry a narrow product mix with deep product lines. a.off-price retailers b.traditional specialty retailers c.category killers d.warehouse clubs

b. traditional speciality retailers - Traditional specialty retailers are stores that carry a narrow product mix with deep product lines. They are sometimes called limited-line retailers or single-line retailers.

A general-merchandise retailer offers _______. a.few product lines with deep assortments of these lines b.few choices of a large variety of product lines c.a variety of product lines that are stocked in depth d.a single product line that is stocked in depth

c. a variety of product lines that are stocked in depth

Advo Systems is an organization that mails product brochures and coupons to potential consumers who can then purchase these products by mail or by phone. Advo Systems illustrates which of the following methods of selling retail products? a.Party plan b.Catalog marketing c.Direct-response marketing d.Specialty retailing

c. direct-response marketing - Direct-response marketing occurs when a retailer advertises a product and makes it available through mail or telephone orders. Advo Systems is engaging in direct-response marketing.

Which of the following is least likely to be considered when deciding on a retailer's location? a.Placement of competitors' stores b.Kinds of product being sold c.Distance from corporate headquarters d.Customer characteristics

c. distance from corporate headquarters - factors that affect retail store location include intended target market, kinds of products, suitability site/customer access, and characteristics of existing retail operations

Department stores, convenience stores, and warehouse clubs can all be classified as _______. a.specialty retailers b.variety stores c.general-merchandise stores d.superstores

c. general- merchandise stores

Online sales are _______ by 2022. a.expected to remain the same b.projected to rise then fall rapidly c.projected to grow d.expected to fall slightly

c. projected to grow

_______ have wide product mixes and are often organized into separate departments. Separate departments help to facilitate marketing efforts and internal management. a.Convenience stores b.Superstores c.Discount stores d.Department stores

d. Department stores - department stores are large retail organizations organized into separate departments and are characterized by wide product mixes, their strength is customer service ex: Nordstrom, Macy's

What type of self-service store typically is less than 5,000 square feet, open 24 hours a day and 7 days a week, and stocks about 500 items? a.Department store b.Discount store c.Supermarket d.Convenience store

d. convenience store - A convenience store is a small, self-service store that remains open for long hours and carries a narrow assortment of products. Such stores are typically less than 5,000 square feet, open 24/7, and stock about 500 items

ff-price retailers compete primarily on the basis of _______. a.broad selection of products including food, electronics, and clothing b.high-quality private brands at low prices c.low prices and broad product availability in one major product category d.deeply discounted prices on name-brand merchandise

d. deeply discounted prices on name-bran merchandise - . Off-price retailers are stores that buy name-brand manufacturers' seconds, overruns, returns, and off-season merchandise for resale to consumers at deep discounts.

_______ is the most expensive form of retailing. a.Vending b.Direct-response marketing c.Telemarketing d.Direct selling

d. direct selling

Josh tells the loan officer at First Bank and Trust that Clarksville really needs a store that offers high-quality fishing gear to enthusiasts and provides the service and advice that many people want. No other store in the area seems to provide this combination. Josh is trying to use _______ to support his request for a loan to start such a retail operation. a.location analysis b.the wheel of retailing c.scrambled merchandising d.retail positioning

d. retail positioning - retail positioning involves identifying an unserved or underserved market segment and reaching it through a strategy that distinguishes the retailer from others in the minds of customers in the market segment.

Which of the following is not considered an element of a store's atmospherics? a.Complexity of layout b.Merchandise presentation c.Floor coverings d.Variety of products

d. variety of products - Exterior and interior characteristics of a store's design, including the appearance of the storefront, complexity of the store's layout, the floor coverings used, and the presentation of the merchandise are all elements of atmospherics.

Quentin and his friends saw a commercial advertising the latest Dwayne "The Rock" Johnson movie on Blu-ray, so they rented it from Redbox, an automated movie and game kiosk. This is an example of _______. a.television home shopping b.direct selling c.direct-response marketing d.vending

d. vending