Test 1

Chapters stores sell Godiva chocolates. By selling such products, Chapters is: a) Offering a good merchandise mix b) Offering what the market demands c) Offering deep product assortments d) Practicing intratype competition e) Practicing scrambled merchandise

e) Practicing scrambled merchandise

Which business activities are undertaken by retailers? a) Purchasing goods and services b) Developing management information systems c) Raising capital d) Managing a sales force e) All of the above

ANSWER

Due to the _______ of services, service retailers like Disney, Famous Players, and Air Canada sometimes find it difficult to match supply and demand a) Intangibility b) Perishability c) Inconsistency d) Consumability e) Compatibility

b) Perishability

What is retailing? a) It is the set of business activities that adds value to the products and services sold to consumers for their personal or family use b) It is the merchandising component of the retail mix c) It is the strategy retailers and vendors use to get products into the stores d) It is the process of offering products in smaller quantities for consumer consumption patterns e) It is the ability to offer enough variety in a store in encourage one-stop shopping

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

A doughnut shop that decides to open up an hour earlier every morning is taking advantage of a ____________ opportunity. a) Market penetration b) Diversification c) Retail format development d) Market depletion e) Market divestment

a) Market penetration

What is variety? a) Number of different merchandise categories within a store b) Number of different SKU's within a merchandise category c) Number of different items in a category d) Another term for scrambled merchandising e) Number of different facets of the business plan

a) Number of different merchandise categories within a store

The two types of off-price retailers are a) Outlet and closeout stores b) Value retailers and closeout stores c) Closeout and value stores d) Warehouse clubs and closeout stores e) Outlet stores and warehouse club

a) Outlet and closeout stores

Which of the following is an example of a private-label brand? a) President's Choice coffee b) Kellogg's cornflakes c) Kodak film d) Levi's jeans e) Sony DVD player

a) President's Choice coffee

Talbots is a catalogue and a specialty store retailer. Its target market is 35-55 year old women. 60% of its customers are college-educated with an average family income of $75000. Talbots offers ____ brands, moderate to better-priced women's classic apparel, shoes and accessories. Its stores are located in village locations and upscale regional malls. Synergies among the store, catalogue and website operations provide a competitive advantage over other retailers. This is a description of Talbots: a) Retail strategy b) Marketing objective c) Merchandise budget plan d) Mission statement e) Organizational structure

a) Retail strategy

Why is it advantageous for retailers to be vertically integrated? a) Retailers can develop unique merchandise sold only in their stores b) Retailers can expand their services early to the Internet because they can direct orders to the manufacturer c) Retailers have realized that to stay competitive, they must become vertically integrated

a) Retailers can develop unique merchandise sold only in their stores

If a chain of florist shops opened a plant nursery to provide gift plants and cut flowers to all of its outlets within a 300-mile radius, the chain would be practicing a) Vertical integration b) Channel expansion c) Horizontal expansion d) Vertical retailing e) Service marketing

a) Vertical integration

Big and Tall stores select their merchandise assortments for larger men. Men who meet this criterion compose a: a) Retail market segment b) Consideration set c) Demographic set d) Media set e) Psychosocial segment

b) Consideration set

Even though there are several garages in town, Kelly gets her oil changed only at Mr. Lube. Her commitment to Mr. Lube illustrates: a) Brand acceptance b) Customer loyalty c) Good customer service d) Store awareness e) None of these

b) Customer loyalty

Lisa loves to stop into Winners once a week. Winners purchases overruns or out of season merchandise from vendors and retailers then sells them in their stores for less. With each visit, she never knows what she will find, but she feels assured it will be a bargain. Winners store is ___________ in Lisa's mind as a retailer with varied assortments with reasonable prices. a) Perceived b) Positioned c) Solidified d) Sustained e) Visualized

b) Positioned

A SWOT analysis is often conducted during which stage of the strategic retail planning process? a) Definition of business mission b) Situational audit c) Evaluating strategic alternatives d) Establishing objectives e) Retail segmentation process

b) Situational audit

A management orientation that focuses a retailer on determining its target market's needs and satisfying those needs more effectively than its competitors is called: a) The retail mix b) The retailing concept c) A merchandise assortment plan d) A management style e) The communication management

b) The retailing concept

The intensity of competition is greatest among retailers when: a) Price dominates the retail mix b) They are located near each other and offer similar retail offerings c) They are located near each other and target the same customer d) They are located far from each other and offer similar retail offerings e) They are located far from each other and target the same customer

b) They are located near each other and offer similar retail offerings

Grocers purchase bananas from several different tropical countries When bananas arrive in the distribution centres across Canada, containers are reduced to amounts that are appropriate for store delivery. Once delivered to the stores, associates open the cartons and arrange the bananas for the consumer to select. Grocers are performing which function? a) Holding inventory b) Vertical integration c) Breaking bulk d) Distribution e) Providing services

c) Breaking bulk

A business philosophy and set of strategies, programs, and systems that focus on identifying and building loyalty with a firm's most-valued customers is called: a) Customer decision area b) Customer loyalty c) Customer relationship management d) Intratype competition e) Strategizing

c) Customer relationship management

The first step in the strategic planning process is to: a) Identify strategic opportunities b) Develop a retail mix c) Define the business mission d) Conduct the situation audit e) Assess the strengths and weaknesses of the business relative to its competition

c) Define the business mission

The retail market segments for licensed World Wrestling Entertainment shirts, jackets and hats are 6-17 year old boys, 18-24 year old women, and 18-44 year old men. This retail market segment is based on: a) Lifestyle b) Geographic c) Demographic d) Psychological e) User status

c) Demographic

The largest sectors in terms of retail sales are: a) General merchandise and clothing b) Pharmacies and building supplies c) Food, beverage, and automotive d) Furniture and pharmacies e) Automotive and building supplies

c) Food, beverage, and automotive

Home Depot operates home improvement store in major Canadian cities. Hope Depot management has learned that different merchandise is needed to satisfy the different needs of the customers living in different areas across the country. What kind of retail market segmentation has Hope Depot used? a) Race b) Benefit c) Geographic d) Lifestyle e) Age

c) Geographic

When Starbucks opened in Seattle, it allowed store density to promote the business. Sometimes, the storefronts occupied two corners of an intersection. Only when the Seattle market was saturated did Starbucks move into other markets. Starbucks understands the value of building a competitive advantage through securing: a) Customer loyalty b) Database warehouses c) Good Locations d) Positioning e) Trained servers

c) Good Locations

The competition between the same types of retailers is called: a) Indirect competition b) Intertype competition c) Intratype competition d) Scrambled merchandising e) Vertical integration

c) Intratype competition

H&M uses the philosophy of "disposable chic". This means: a) Consumers can dispose of their income at H&M b) The product line at H&M is recyclable c) Its merchandise is so inexpensive it doesn't matter if it goes out of style quickly d) It has a merchandise agreement with Gillette disposable razors e) Its merchandise is considered "chic" in Sweden

c) Its merchandise is so inexpensive it doesn't matter if it goes out of style quickly

When J. Crew moved its stores into other countries, it increased the company's international market share. J. Crew took advantage of a ________ opportunity. a) Diversification b) Market divestment c) Market expansion d) Market penetration e) Retail format development

c) Market expansion

Depth of merchandise is often referred to as the: a) Variety b) Complete retail offering c) Number of items within each product line d) Object of the buy e) Retail mix

c) Number of items within each product line

David is starting his first job out of college with a consulting firm and wants to make a good impression on his supervisors. He noticed the attire of the associates when he was interviewed, and decided to mimic them by wearing power suits and Italian shoes. What social factor most influences David's wardrobe? a) Family b) Culture c) Reference group d) Peer group e) Subculture

c) Reference group

Warehouse clubs a) Have high margins b) Spend on visual displays c) Sell merchandise in no-frills atmosphere d) Have low turnover e) Provide extensive customer service

c) Sell merchandise in no-frills atmosphere

Which of the following segmentation methods would be most appropriate for a retailer selling fish tackle and bait? a) Personality b) Buying situation c) Demographic d) Benefit sought e) Lifestyle

d) Benefit sought

The Grand Casino has identified 2000 people it categorizes as high rollers. Since the casino people contend that there are no unifying demographics that can be used to identify a high roller, what sort of segmentation must they be using? a) Social class and income b) Occupation, perceived risk, and social class c) Occupation, education, and lifestyle d) Lifestyle e) Occupation, education and geographic

d) Lifestyle

Category specialists a) Have little customer service b) Are limited to clothing, office supply, pet supplies and toy retailing c) Rely on warranty sales to promote loyalty d) Offer a narrow variety but deep assortment of merchandise e) Compete directly with off-price retailers

d) Offer a narrow variety but deep assortment of merchandise

To implement a retail strategy, a retailer must develop a ______ that satisfies the needs of its target market a) Production orientation b) Horizontal integration c) Sales orientation d) Retail Mix e) Situation analysis

d) Retail Mix

A retailer's role in the distribution channel is to: a) Act as the liaison between manufacturers and wholesalers b) Buy merchandise exclusively from the manufacturers c) Negotiate with consumers through a series of focus groups d) Simplify the needs of the consumers e) Sell to wholesalers

d) Simplify the needs of the consumers

What do WestJet, Four Seasons, Century 21 and Rogers Video have in common? a) These retailers have established long-term relationships with their manufacturers b) They are all examples of off-price retailers c) They sell tangible products d) They are all examples of service retailers e) They have high operating margins due to the size of their inventories

d) They are all examples of service retailers

To compete against intrusions by other food retailing formats, conventional supermarkets are: a) Targeting health-conscious consumers b) Offering more private-label products c) Emphasizing fresh-perishables d) Providing a better in-store experience e) All answers provided are correct

e) All answers provided are correct

Which of the following trends are changing the retail industry? a) Growing retailer concentration and power b) Blurring boundaries among channels and formats c) Growth in consumer data d) Discriminating consumers e) All answers provided are correct

e) All answers provided are correct

Having efficient distribution and information systems is vital to retailers to sustain a competitive advantage because: a) They are able to get the merchandise to the customer quickly and efficiently b) They are able to get the assortments to the customer they want c) They are able to deliver merchandise at lower costs and apply the margin to lower prices or better services d) The information flow between vendors and stores is seamless enabling rapid replenishment e) All of the above

e) All of the above

Retailers compete with each other on: a) Format b) Variety c) Assortment d) Customer services e) All of the above

e) All of the above

The key strategic elements of the retail strategy are: a) Financial strategies b) Organizational structures c) Location strategies d) Market strategies e) All of the above

e) All of the above

The objectives a retailer establishes after evaluating its strategic investment opportunities should: a) Identify the performance sought b) Include a time frame in which the goal is to be achieved c) Include the level of investment needed for the goal to be achieved d) Include a numerical index against which progress can be measured e) All of the above

e) All of the above

_____________ segmentation is the primary means for segmenting the aging baby boomer retail market. a) Lifestyle b) Geographic c) Benefit sought d) Psychographic e) Demographic

e) Demographic

A dry cleaner can develop a sustainable competitive advantage by: a) Securing a good location b) Developing a customer database to offer special promotions c) Developing a coupon offering with some of the local department stores d) Develop a patented chemical that removes wine stains without harming the fabric e) Doing all of these

e) Doing all of these

Which of the following can be considered a barrier to entry in a market? a) A maturing market b) Bad customer service c) Few competitors d) Good economic conditions e) No available good locations

e) No available good locations

A retail strategy is a statement that will identify which of the following? a) Output measures b) Price points c) The advertising campaign d) The retail market e) The target market

e) The target market

Jack runs a gallery that specializes in neon art with emphasis on vacation icons like flamingos, dolphins and palm trees. Since demand was high, and supplies were low, he decided to buy an old warehouse and hire craftspeople to work there to produce the art. He would provide them with all the supplies they needed, and he would be their only customer. Jack engaged in: a) Horizontal integration b) Market expansion c) Co-operative buying d) Market penetration e) Vertical integration

e) Vertical integration