CNSR SCI 257: Intro to Retail

More retail transactions take place online now than in stores.

False

What type of retailer is Target considered to be?

Full-line discount store

Which of the following statements is a disadvantage of a joint venture?

Government places restrictions on the repatriation of profits.

What kind of consumer decision making process is MOST closely associated with retailer loyalty?

Habitual decision making

When Erica calculates the current assets for her picture framing business, she should not include which of the following?

Her accounts payable

Which of the following differentiates a hypermarket from a supercenter?

Hypermarkets carry a larger proportion of food items, whereas supercenters carry a larger portion of nonfood items.

_____ means that the retailer is able to determine which customers are in the market segment.

Identifiable

Where would you most likely find a lifestyle center?

In higher-income neighborhoods

Darius Foods Inc. and Winston Foods and Beverages Inc. are competitors selling frozen meals. Darius sells its products through a large number of local convenience stores, while Winston sells its frozen meals through delis. Which form of competition is seen between these two firms?

Intertype competition

Which of the following would be the best example of an input measure?

Inventory

Which type of retailer is Save-A-Lot considered to be?

Limited-assortment supermarket

Bine Lane LLC is a fabric store that sells only cotton clothing. After a situation analysis, the marketing team of Bine Lane wants its current customers to visit and purchase from the store more frequently. Which of the following growth strategies should Bine Lane follow to achieve its objective?

Market penetration growth opportunity

Which of the following is typically the last step in site selection?

Match characteristics of present trade area with potential sites.

Which of the following characteristics is most likely to be the least sustainable competitive advantage?

More sales promotions

Which of the following is true of retailing activities in the BoP market?

Most people in BoP markets live in rural areas with limited access to mass media.

Which of the following is not a factor affecting the size of the trade area?

Type of lease

Avis LLC, a chain of international supermarkets, has operations in 20 countries around the world. Avis always encourages the rapid development of local management and retains few expatriates in its overseas operations. Avis's management ranks are truly international. Which of the following is most likely a reason for the success of Avis in international markets?

A global culture

Melanie's Bead Shoppe LLC has total assets of $45,000, accounts receivable of $2,000, accounts payable of $3,100, and inventory valued at $20,000. Last year, her net sales were $29,000, and her operating profit margin equaled $14,000. What is her return on assets?

31.1%

Which of the following examples would customers LEAST LIKELY consider a destination store?

A gas station also selling milk and eggs

Which of the following would not be listed as an asset on the balance sheet of a hardware store?

Accounts payable

Which of the following can be considered as a current asset?

Accounts receivable

A clothing retailer realizes that its customers desire the latest clothing designs and accordingly maintains selection. Which criteria for evaluating retail segments is seen in this example?

Actionable

_____ equals a company's net sales divided by its total assets.

Asset turnover

Ethical principles can change over time.

True

James, a store manager, works at Fresco LLC. His store is located in the traditional downtown financial business area in the city. In which of the following classifications of retail locations is James' store located?

Central business district

Which of the following is NOT an element in the retail mix?

Competitive response

_____ form a part of the microenvironment that influences retail management decisions.

Competitors

Which of the following would NOT affect the operating costs of a store?

Congestion of people and cars

_____ describes the voluntary actions taken by a company to address the ethical, social, and environmental impacts of its business operations and the concerns of its stakeholders.

Corporate social responsibility

The Mediterranean Cafe features light cuisine and folk entertainment. It is located in the middle of an upper-class neighborhood. The owners are curious about where the customer base lives so that it can focus direct mail to those areas. For the last several weeks, employees scoped the parking lot noting license plate numbers so they could have a private research company trace them to the owners. Which of the following is the Mediterranean Café engaging in?

Customer spotting

What type of retailer is Kohl's considered to be?

Department store

Which of the following best defines a stock-keeping unit?

Each different item of merchandise offered by a retailer

Which of the following statements is true of ethical principles?

Ethical principles can change over time.

____ are the principles governing the behavior of individuals and companies that establish appropriate behavior and indicate what is right and wrong

Ethics

What is the difference between multiple regression analysis and the analog approach?

Multiple regression analysis uses statistics rather than judgment to predict sales at existing store locations.

Which of the following locations is typically the best for a supermarket?

Neighborhood and community shopping centers

Which of the following is a first tier department store?

Nordstrom

Which of the following businesses would NOT be considered a retailer?

Proctor and Gamble

Many retailers have and offer their own store credit card. Which of the following value-creating activities is evident in the given example?

Providing services

Which of the following is true of the career opportunities offered by the retailing industry?

Retail managers are often given considerable responsibility early in their careers.

How can brand loyalty become a problem for retailers?

Retailers may develop problems with the suppliers of the brand.

Which of the following is true of scale economies?

Scale economies are cost advantages due to a retailer's size.

Which of the following factors is classified as a market factor?

Seasonality

What can department stores do to differentiate their merchandise offering and strengthen their image?

Seek exclusive arrangements with nationally recognized brands

Which of the following is a disadvantage of main street locations?

Small overall draw

The development of information systems is one the forces facilitating the growth of large retail firms.

True

What type of a retail store is Victoria's Secret considered to be?

Specialty retailer

_____ are customers who like a store so much that they actively share their positive experiences with friends and family.

Store advocates

What type of store is Meijer considered to be?

Supercenter

Which of the following is a drawback of the franchise ownership?

The franchisee must adhere to the franchisor's rules and operating guidelines.

Why would a small retailer not be interested in selling at kiosks situated in airports?

The rent per square foot is very expensive.

Which of the following statements best describes outlet centers?

They are often located in tourist areas.

Which of the following statements is true of department stores?

They often resemble a collection of specialty shops.

Which of the following is true of off-price retailers?

They sell brand-name merchandise at reduced prices.

Which of the following statements is true about specialty stores?

They tailor their retail strategy toward very specific market segments.

Why do movie theaters sell tickets for an afternoon showing of a movie at a lower price than the 7 p.m. showing of the same movie?

To deal with the perishability of services

_____ means that a firm performs more than one set of activities in the channel, as occurs when a retailer engages in wholesaling activities by operating its own distribution centers to supply its stores.

Vertical integration

In a town in Georgia, the McDonald's restaurant was required by _____ to have no sign taller than 8 feet, no arches, and no garish or bright colors on the outside of the building.

building codes

When Chris charges a gallon of chlorine for his pool at Pinch-A-Penny to his store account, he creates a(n) _____ for the retailer.

accounts receivable

Store locations in a mall that are located next to one another are ______ stores.

adjacent

Amanda considers shopping to be like a game. She goes shopping because she enjoys finding bargains and discounts. Amanda is always on the lookout for special offers and discounts. Hence, Amanda's hedonic needs are satisfied by a sense of:

adventure

Florals is a popular retail chain specializing in women's lingerie and perfume. It designs and sources their own private-label merchandise being sold in the store. Therefore, Florals is practicing _____.

backward integration

The strategic profit model is useful to retailers because it:

combines profit margin management and asset management.

The amount paid for the merchandise by the retailer is the:

cost of goods sold

At the Mall of America, all of the children's specialty stores are on the ground floor and are near the restaurant Rainforest Café which also targets adults with children. This would be an example of the principle of _____.

cumulative attraction

If a retailer's gross margin percent is on plan, however the retailer is tracking below plan for net operating profit margin plan, which of these options would help improve their situation?

decrease selling, general and administrative expenses

A retailer that carries a broad variety and deep assortment, offers customer services, and is organized into distinct sections for displaying merchandise is called a(n) _____.

department store

With respect to retailing, assortment is often referred to as the _____.

depth of merchandise

A(n) _____ is one in which the merchandise, selection, presentation, pricing, or other unique factors attract customers even if it is in an inconvenient location.

destination store

Reference groups can influence buying decisions by:

enhancing a consumer's image.

A purchase decision process in which customers devote considerable time and effort for analyzing alternatives is called:

extended problem solving

Consumer Reports, a nonprofit organization that evaluates products, would serve as a source of _____ as it provides Lewis with useful knowledge about available features, convenience of use, and machine quality of various table saws.

external information

Limited assortment supermarkets are referred to as:

extreme-value food retailers

With respect to off-price retailing, in a _____ sale, each day at the same time, members receive an email that announces the deals available.

flash

Geraldo went to the supermarket to buy a bottle of chocolate syrup. While there, he saw the latest copy of National Enquirer at the checkout stand. He had not planned on buying the magazine, but on the spur of the moment, he bought himself a copy. This decision by Geraldo is an example of:

impulse buying

A dermatologist has her diplomas prominently displayed above her large desk, which sits on a Persian rug in an office filled with tasteful, yet expensive furnishings. Which of the following service characteristics is the doctor trying to handle with her office décor?

intangibility

The competition between the same type of retailers is called _____.

intratype competition

"Do It Again Sports" has everything a weekend warrior needs to get back into shape at reduced prices. They feature an array of treadmills, weights, sporting gear, and helpful staff. Thus, Do It Again Sports utilizes _____ as the scheme to segment the market.

lifestyle segmentation

The Main Game, a retail store, appeals to people who enjoy role-playing games. The store carries games, books, and has a play area where fans can meet and play against one another. The store mainly targets people who enjoy adventure and games. Therefore, the store is using _____ as the scheme for classifying its target market.

lifestyle segmentation

Which type of consumer decision-making process will MOST likely result in an impulse buy?

limited problem solving

Cross-selling is most commonly practiced with the:

market penetration growth opportunity.

The formula for calculating gross margin is:

net sales minus the cost of the goods sold.

Shopping centers consisting primarily of collections of big-box retail stores, such as Walmart, TJMaxx, Home Depot, Dick's Sporting Goods, and Borders are called:

power centers

In terms of trade areas, the owner of Bubba's Bar and Grille defines his _____ as the geographic area in which 70% of his customers live.

primary trading area

A(n) _____ limits the shopping center management from leasing to certain kinds of tenants.

prohibited-use clause

Retailers stimulate sales from customers engaged in extended problem solving by:

providing the required information in an understandable manner.

In the 1960s, bands like the Beatles and the Rolling Stones influenced culture. Students grew their hair, wore beads, and became more socially conscious about war, segregation, and family. The culture looked up on bands like these for inspiration and encouragement. Therefore, the members of these bands whose style was emulated by people are known as:

reference groups

Catherine's is a chain of retail stores having merchandise assortments for women over size 14. Women who meet this criterion form a:

retail market segment.

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

retailer

Marybeth usually shops for her wardrobe in various department stores. However, when purchasing shoes, she shops only at Great Shoes. Marybeth's allegiance to Great Shoes is an example of:

retailer loyalty

Students often view retailing as part of marketing because:

retailing involves the management of distribution systems.

Retailers must consider the trade-offs between lower operating costs and potential _____ from having multiple stores in an area.

sales cannibalization

Catherine enjoys relaxing while getting a manicure and pedicure at the Mystique Resort and Spa. She enjoys the attention and respect given to her by the staff. Hence, Catherine's hedonic needs are satisfied by a sense of _____ at the spa.

status and power

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

supply chain

Hot Topic LLC appeals to tweens and teens through their Gothic frocks, fad movie gear, piercing paraphernalia, and popular t-shirts and posters. The staff at Hot Topic wears the merchandise. Also, they are active in helping their young customers choose from the hip merchandise. The teens and tweens can be considered the:

target market

The _____ is the market segment(s) toward which the retailer plans to focus its resources and retail mix.

target market

Conversion rate can be described as:

the percentage of customers who enter a store and buy products from that same store.

Parents shopping for their children's school uniforms and stationery are motivated by _____ which involve accomplishing a specific task.

utilitarian needs

Because the only merchandise categories at the University Futon Shop are double-sized futons, the Futon Shop can be said to have no _____.

variety

Fresh n Fragrant is a chain of flower shops offering a variety of flowers and ornamental plants. It recently opened a distribution center to supply ornamental plants and cut flowers to all its stores within a 300-mile radius. From the given scenario, it can be seen that Fresh n Fragrant is practicing _____.

vertical integration