MKT 320
SWOT stands for
strengths, weaknesses, opportunities, threats
A __________ is a set of firms that make and deliver goods and services to consumers. A. cartel B. supply chain C. conglomerate D. syndicate E. co-operative
B. Supply Chain
Which of the following retailers is not classified as a category specialist? A. H&M B. Bath & Body Works C. Target D. Pottery Barn E. Urban Outfitters
C. Target
A(n) __________ identifies the set of SKUs (within a category) that a retailer will offer in each of its stores. A. sell-through analysis B. merchandise budget plan C. assortment plan D. merchandise menu E. variety vector
C. assortment plan
Trade area zones are best determined based upon __________. A. demographics B. customer interests C. customer drive time D. psychographics E. topographical characteristics
C. customer drive time
The authors of your textbook state that retailers create value by ordering large quantities that are convenient for manufacturers to ship, and then offering them for sale in the smaller quantities that are convenient for consumers to buy. According to the authors, the technical name for providing value in this manner is __________. A. Breaking bulk B. inventory turnover C. re-assorting D. reductionist retailing E. inventory shrinkage
A. Breaking bulk
A "Walmart Neighborhood Market" is smaller than a Walmart Supercenter or a standard Walmart discount store. It occupies, on average, 38,000 square feet and offers about 28,000 items, including fresh produce, meat and dairy products, bakery and deli items, household supplies, health and beauty aids, and a pharmacy. At present, there are approximately 200 Neighborhood Markets in the U.S. (compared with approximately 3,000 Supercenters and about 600 standard Walmart discount stores). Walmart Neighborhood Markets most closely resemble stores in which food retailer category? A. Conventional supermarkets B. Hypermarkets C. Warehouse clubs D. Extreme-value food retailers E. Convenience stores
A. Conventional Supermarkets
Which of the following is not one of the overriding principles of conscious marketing? A. Maximizing sales revenue, profit, and market share B. Consideration of stakeholders and their interdependence C. The understanding that decisions are ethically based D. The presence of conscious leadership, creating a corporate culture E. Recognition of the retailing firm's greater purpose
A. Maximizing sales revenue, profit, and market share
A Marathon gas station in Memphis (located at the intersection of Poplar Avenue and Ridgeway Road) has an on-site sushi chef and sells about 300 boxes of sushi a day. This is an example of __________. A. scrambled merchandising B. backward integration C. cannibalization D. forward integration E. an extreme-value food retailer
A. Scrambled merchandising
Inside the corporate offices of a well-known store chain, marketing executives Carly Farley and Cecil Diesel are having a spirited discussion. Specifically, they are debating whether they should tailor the marketing mix of their new product to appeal to the "Achievers" market segment or the "Innovators" segment, or whether they should develop a separate marketing mix for each of those segments. From their use of labels like "Achievers" and "Innovators" to describe their target market, we can determine that Carly and Cecil's company has bought into the __________ segmentation typology. A. VALS™ B. PRIZM® C. Ansoff Product-Market Matrix D. BCG (Boston Consulting Group) Matrix E. Tapestry™
A. VALS™
an example of intratype competition is when ____and ____ compete for the same customers dollar. A. walmart, target B. target, dicks sporting goods C. dollar tree, walmart D. speedway, walgreens E. abercromnie, macys
A. Walmart, Target Intratype = competition between same types of retailers Intertype = competition between retailers that sell similar merch with different formats
Regarding supply chain management, with which of the following statements would the authors of your textbook likely agree? A. When supply chain management activities are performed efficiently, consumers are able to buy merchandise in the desired quantities at a preferred location and appropriate time. B. Efficient supply chain management enables retailers to carry less backup inventory. But . . . while spending less for inventory is an attractive prospect to retailers, it is also risky in that it reduces their total investment in assets and increases their inventory turnover, which in turn lowers their return on assets (ROA). C. In recent years, retailers have played a less active role in managing their supply chains. During the same period of time, producers/manufacturers have greatly increased their leadership in the supply chain. D. All of the above. E. A and C only.
A. When supply chain management activities are performed efficiently, consumers are able to buy merchandise in the desired quantities at a preferred location and appropriate time.
Kirk Burke is shopping for tires for his pride and joy, i.e., his 2016 Camaro SS. When Kirk bought the car new, it came equipped with Pirelli P Zero tires. Kirk is not sure he wants to replace the original tires with more of the same. The Pirellis performed admirably in the spring and summer months. However, for the $850 to $1,100 that he'll end up spending, Kirk suspects that there may be other brands and types of tires that would be more appropriate for year-round driving. Kirk also knows that some tires are more appropriate than others for a cool car like his. He wouldn't want to buy tires that he and his buddies think of as belonging on their grandfathers' Oldsmobiles (such as Uniroyal, Goodyear, or General), just like he wouldn't want to disgrace his beloved Camaro by buying tires that would look more at home on the Volvos, Subarus, and minivans of cautious "soccer moms." Maybe BFGoodrich? Toyo? Stick with Pirelli? Kirk isn't at all sure what to buy. All he knows at this point is that he'll visit a lot of websites and tire retailers, and he'll have a lot of conversations with service representatives before he makes his final choice. Kirk's tire shopping behavior most closely resembles __________. A. extended problem solving B. impulse buying C. limited problem solving D. habitual decision making E. autonomic decision making
A. extended problem solving
All other things being equal, retailers can expect a consumer's most important reference group to be his or her __________. A. family B. fellow sorority or fraternity members C. work colleagues D. favorite celebrities E. college classmates, past or present
A. family
Sondra Alondra owns Gothic Ghoullery, a specialty apparel and accessories retailer. At present, the retailer has eleven locations: three at regional malls, six in strip centers, and two standalone stores. Sondra has five-year leases for each of her standalone locations. At one of these (the Batwing Boulevard location), Sondra pays a monthly amount that is equal to $1.30 per square foot. At the other store (located on Darque Alley), Sondra pays a monthly amount that is equal to 7 percent of her previous month's sales, but no more than $3,100 per month. Sondra's current lease at the Batwing Boulevard location is a(n) __________ lease. The Darque Alley lease, on the other hand, is a(n) __________ lease. A. fixed-rate; percentage B. percentage; fixed-rate C. percentage; graduated D. fixed-rate; sliding scale E. fixed-rate; graduated
A. fixed-rate; percentage
The authors of your textbook describe a buying process that begins with __________ and ends with __________. A. need recognition; post purchase evaluation B. merchandise evaluation; purchase C. an unsatisfied need; loyalty D. information search; disposal E. information search; purchase
A. need recognition; post purchase evaluation
If you use a desktop or laptop to shop, you are shopping in the ____ channel. If you use a smartphone or tablet, that is called_____. A. direct to customer, crowdsourced retailing B. automated, social media retailing C. electronic, the mobile channel D. out of home, electronic retailing E. analog, digital retailing
C. electronic, the mobile channel
Common sense tells us that customers will stay away from a shopping center if there are too few parking spaces. The textbook authors tell us, however, that too many empty spaces may also send a negative signal (i.e., that the stores are unpopular). For a shopping center, retail industry experts recommend _____ spaces per thousand square feet of retail store space. A. 3 B. 5.5 C. 10 to 15 D. 20 E. 25
B. 5.5
For a shopping center, retail industry experts recommend ____ spaces per thousand square feet of retail store space. A. 3 B. 5.5 C. 10 to 15 D. 20 E. 25
B. 5.5
__________ is the number of merchandise categories a retailer offers. Women's clothing, food, and household cleaning products, for example, are three different categories. A. Depth B. Breadth C. Assortment D. Range E. Scope
B. Breadth
When two discount department stores such as JCPenney and Kohl's compete for the same customer, what type of competition is occurring? A. Conceptual B. Intratype C. Divertive D. Intertype E. Monopolistic
B. Intratype
The NAICS code for the Kroger supermarket on Euclid Avenue in Lexington is 445110. Which of the following is also true about NAICS code 445110? A. The fourth, fifth, and sixth digits (110) identify the store as belonging to The Kroger Company. B. It is also the NAICS code of Whole Foods Market at The Summit. C. The first two digits (44) identify the store's location as Fayette County. D. It is also the NAICS code for the Walmart Supercenter in the Hamburg area of Lexington. E. is also the NAICS code for Pet Value, which is one of Kroger's neighbor on Euclid Avenue.
B. It is also the NAICS code of Whole Foods Market at The Summit.
Which of the following is not a service retailer? A. Southwest Airlines B. Lululemon C. Massage Envy D. Republic Bank E. Wendy's
B. Lululemon
The retail mix consists of pricing, communication mix, store design and display, location, customer service, and __________. A. signage B. merchandise management C. information technology D. ambience E. parking lot configuration
B. Merchandise Management
The authors of your textbook state that retailers create value by enabling customers to choose from a wide selection of products, brands, sizes, and prices - all at one location. According to the authors, the technical name for providing value in this manner is __________. A. channel integration B. providing assortments C. breaking bulk D. providing services E. expansive retailing
B. Providing Assortments
In a typical supply chain for a low-cost, frequently-purchased consumer product (such as a magazine or package of candy), a wholesaler would primarily sell to and be concerned about the ___________, and a manufacturer would primarily sell to and be concerned about the ___________. A. consumer; retailer B. retailer; wholesaler C. manufacturer; retailer D. retailer; consumer E. broker; manufacturer's representative
B. Retailer; Wholesaler
When evaluating the performance of a retailer, which of the following is the best financial performance measurement to use? A. Earnings before interests, taxes, and depreciation B. Return on assets C. Net margin D. Asset turnover E. Gross margin
B. Return on assets
In the world of retailing, the initials SKU stand for __________. A. specialized kiosk usage B. stock keeping unit C. skewness and kurtosis unbounded D. sustainable kilowatt utilization E. shoplifting and kleptomaniac unit
B. Stock keeping unit
The __________ system classifies all U.S. neighborhoods into 67 segments based on demographics and socioeconomic characteristics. To get this proprietary analysis of the population surrounding a prospective retail site, a retailer would need to buy it from _________. A retailer might use this information if it wished to take a __________approach to market segmentation. A. census blocking; U.S. Bureau of the Census; demographic B. Tapestry™ Segmentation; Esri; geodemographic C. PRIZM®; Nielsen Claritas; psychographic D. MapInfo; Pitney Bowes Business Insight; geographic E. VALS™; Strategic Business Insights (SBI); psychographic
B. Tapestry™ Segmentation; Esri; geodemographic
Carrefour asked a vendor, Colgate, to help it better understand how consumers shop for oral care products, and to help maximize sales of all oral care products that Carrefour carries, regardless of brand. Colgate dug into its own past research into consumer behavior and made several well-informed recommendations, including the suggestion that Carrefour display toothbrush products directly above toothpaste products, instead of side by side as it had been doing for years. Carrefour followed Colgate's advice. Thereafter, sales of oral care products in Carrefour stores increased by 6 to 16 percent, depending on location. Colgate's sales increased as well. By asking Colgate to serve in this advisory capacity, Carrefour gave the company preference over other oral care product vendors such as Unilever, Procter & Gamble, GlaxoSmithKline, and Church & Dwight. The authors of your textbook would say that in this example, Colgate is Carrefour's __________ for oral care products. A. market maven B. category captain C. display deacon D. assortment adviser E. brand benchmark
B. category captain
Decision makers at a department store chain know from market research that their average customer comes from a household of $60,000 annual income, 33% of their customers have children at home, 51% of their customers have a college education, and the median age of their customers is 42. These statistics are an example of __________ information that a retailer might use for market segmentation. A. psychographic B. demographic C. geographic D. benefits sought E. geodemographic
B. demographic
Compared to a(n) __________, a(n) __________ usually carries deeper assortments of merchandise within the merchandise categories that it sells. A. supermarket; warehouse club B. extreme-value retailer; drugstore C. home improvement center; extreme-value retailer D. category specialist; discount store E. specialty store; discount store
B. extreme-value retailer; drugstore
As they are developing their CRM programs, many retailers use the "customer pyramid" classification to identify their highest-value customers. On the pyramid, customers are classified hierarchically based upon their customer lifetime value (CLV) scores. These four tiers of customers, in order of bottom of the pyramid to top, are labeled __________, __________, __________, and __________. A. silver; gold; platinum; titanium B. lead; iron; gold; platinum C. rhinestone; pearl; sapphire; diamond D. dogs; problem children; question marks; cash cows E. deadwood; oak; mahogany; teak
B. lead; iron; gold; platinum
Finley McKinley has little to no preference for a brand of tires. He says, "Goodyear, Hoosier, Firestone, Toyo, Michelin, Uniroyal, Dunlop, BF Goodrich, Cooper, Hankook, Yokohama, Mastercraft, Bridgestone, Nexxen, Cooper, General — they're all about the same. Round, black, and made of rubber." Finley will go only one place to buy tires for his Toyota Camry: NTB (National Tire and Battery) Auto Center. When the tires on the Camry are worn enough to need replacement, Finley goes to NTB. Once he's there, Finley will look at the displays and read the signs and brochures, as well as talking to the service representative (if necessary). Finley's strategy is to choose the tires that have the best warranty in his price range. Based on the authors' explanation of "types of buying decisions," Finley's tire shopping behavior most closely resembles __________. A. autonomic decision making B. limited problem solving C. impulse buying D. habitual decision making E. extended problem solving
B. limited problem solving
In the five-stage buying process, as it is presented by the authors of your textbook, a customer enters the __________ stage because of an unsatisfied need. A. postpurchase B. need recognition C. information search D. evaluation of alternatives E. purchase
B. need recognition
The purpose of an open-to-buy system is to __________. A. develop long-term sales forecasts B. record how much of the merchandise budget has been spent at any given time, and keep track of how much remains available to spend C. decrease operating expenses D. maintain consistent average inventory E. avoid seasonal buying
B. record how much of the merchandise budget has been spent at any given time, and keep track of how much remains available to spend
A retail strategy identifies (1) the retailers target market, (2) _____, (3) the basis on which the retailer plans to build a sustainable competitive advantage A. the geographic coordinates of any distribution centers the retailer expects to build B. the format the retailer plans to use to satisfy the target markets needs C. the retailers intertype competitors D. the retailers NAICS code E. the retailers most valued vendor relationships
B. the format the retailer plans to use to meet the target markets needs
According to the authors of your textbook, people go shopping because of __________ needs. A. latent B. utilitarian and hedonic C. hedonic D. utilitarian E. latent and manifest
B. utilitarian and hedonic
Which of the following pairs of items would retailers think of as the same SKU? A. A 15-ounce package of Oreo Double Delight Chocolate Mint'n Creme cookies and a 15-ounce package of Oreo Double Delight Peanut Butter'n Chocolate Cream cookies B. An 18-ounce package of Oreo cookies and an 18-ounce package of Oreo Double Stuf cookies C. A 14.3-ounce package of Golden Oreo cookies and a 14.3-ounce package of Golden Oreo cookies D. A 3-ounce package of Oreo Minis and an 8-ounce package of Oreo Minis E. A 6.75-ounce package of Oreo SugarFree cookies and a 6.75-ounce package of Oreo Reduced Fat cookies
C. A 14.3-ounce package of Golden Oreo cookies and a 14.3-ounce package of Golden Oreo cookies
The NAICS code for the Kroger supermarket on Euclid Avenue in Lexington is 445110. The first three digits (445) identify it as __________. A. a store that is in Fayette County B. a supermarket with a bakery C. a store that sells food and beverages D. a supermarket that has a pharmacy E. a stored that is owned by The Kroger Company
C. A store that sells food and beverages
When Paul Swentzel, principal owner and CEO of S&S Tire (a retail chain), purchased a Bridgestone/Firestone distributorship (a wholesaler), S&S became a wholesaler selling to S&S stores, as well as a wholesaler selling to the S&S chain's retail competitors. When S&S Tire retail stores began buying Bridgestone and Firestone tires from a distributorship that was also owned by S&S Tire, the company was engaging in __________. A. social retailing B. scrambled merchandising C. backward integration D. forward integration E. mobile retailing
C. Backward integration?
On March 16, 2016, a long-awaited event took place in Lexington, Kentucky: Cabela's opened its Hamburg store. According to the authors of your textbook, the correct general-merchandise retailer classification for Cabela's is __________. A. full-line discount store B. warehouse club C. category specialist D. second-tier department store E. off-price retailer
C. Category specialist
On her way home from classes at the university, Staci Casey remembers that she used her last paper towel that morning. Staci is aware that Walmart is likely to have the best price in town on national brands such as Bounty or Brawny. She also knows that Kroger may have one brand of paper towels or another on sale at a reasonable price. Staci does not alter her course to drive toward either Walmart or Kroger; rather, she turns into the parking lot of a Walgreens drug store that is directly on her route home from school. Staci enters the store with the intention of buying whatever brand of paper towels is available, in whatever quantity of rolls the package contains, at whatever price Walgreens is charging. The authors of your textbook would say that this scenario illustrates which "shopping situation"? A. Specialty shopping B. Destination shopping C. Convenience shopping D. Heterogeneous shopping E. Comparison shopping
C. Convenience shopping
Which method of entering the global marketplace is the most expensive and also the most risky - but also offers the highest profit potential? A. A strategic alliance B. A joint venture C. Direct investment D. Franchising
C. Direct investment
Which of the following successful retail entrepreneurs is not matched with the correct retailer? A. Do Won and Jin Sook Chang: Forever 21 B. Sam Walton: Walmart C. Ingvar Komprad: H&M D. Jeff Bezos: Amazon E. Howard Schultz: Starbucks
C. Ingvar Komprad: H&M
To develop and refine its target marketing and positioning, a retailer may rely on a two-dimensional plot of consumers' perceptions of the retailer and its competitors. This visual aid is called a __________. A. Venn diagram B. PERT diagram C. perceptual map D. planogram E. Blake Mouton grid
C. perceptual map
According to the authors of your textbook, the three basic types of retail locations are __________, __________, and __________. A. community center; neighborhood center; regional mall B. freestanding; business district; shopping center C. planned; unplanned; nontraditional D. power center; lifestyle center; omnicenter E. community center; neighborhood center; regional mall
C. planned; unplanned; nontraditional
an open-air shopping center consisted of mainly big box retailers, which may be freestanding. Hamburg is an example A. community shopping center B. neighborhood shopping center C. Power center D. themed center E. Omnicenter
C. power center
A(n) _____ market segment is one to which the retailer can effectively target promotions and other elements of the retail mix A. actionable B. vulnerable C. reachable D. substantial E. identifiable
C. reachable
A(n) __________ describes the nature of the retailer's operations - its retail mix - that will be used to satisfy the needs of its target market. A. service blueprint B. mission statement C. retail format D. operating plan E. Corporate charter
C. retail format
Merchandise like men's crew socks, frozen peas, college-ruled loose-leaf notebook paper, and 60-watt light bulbs would be considered __________. A. fashion merchandise B. complementary merchandise C. staple merchandise D. seasonal merchandise E. impulse merchandise
C. staple merchandise
The authors of your textbook state that efficient supply chain management provides two principal benefits to retailers and their customers. Those benefits are fewer stockouts and __________. A. value-added point-of-sale promotion B. Increased certainty of products' country of origin C. tailored assortments D. more precise targeting of customers in the retailer's secondary trading area E. larger delivery quantities
C. tailored assortments
The authors of the textbook classify __________ as a limited-assortment supermarket. A. Costco B. Albertsons C. Winn-Dixie D. ALDI E. Wegmans
D. Aldi
As a retailer develops its CRM program, which of the following is likely to be one of its objectives? A. Get rid of unprofitable customers, i.e., "get the lead out." B. Retain high-LTV customers - and gain a greater share of wallet from them by providing more value. C. Convert "good" customers into high-LTV customers, perhaps through add-on sales. D. All of the above. E. Both B and C.
D. All of the above.
Regarding omnicenters, with which of the following statements would the authors of your textbook likely agree? A. They accommodate the desires of cross-shoppers, such as the shopper who wants to visit Neiman Marcus, Walmart, and P.F. Chang's in one outing. B. Omnicenters typically combine more than one retail setting (e.g., an enclosed mall, a lifestyle center, and a power center) into the same location. C. Compared to most other shopping center locations, they spread the common area maintenance (CAM) charges among a larger pool of retail tenants, which reduces each individual retailer's share of the cost. D. All of the above. E. Both A and C.
D. All of the above.
__________ is the number of different items offered within a merchandise category. For example, a pint of Ben & Jerry's Cherry Garcia, a 13-ounce bag of Tostitos Scoops, and an 18.8-ounce can of Campbell's Chunky New England clam chowder are three different items in the food category. A. Variety B. Range C. Plenitude D. Assortment E. Scope
D. Assortment
Which of the following describes a consumer who is using an internal source of information during the information search step of the buying process? A. Grace Chase visits stores and talks to salespeople. B. Abel Gable reads product information at a retailer's website. C. Joyce Royce tries to "get inside" the minds of friends and family members. D. Cierra Barrera "takes mental inventory" of what she has learned from her past shopping and purchase experiences. E. Brewster Schuster looks inside magazines, books, consumer guides, and product brochures.
D. Cierra Barrera "takes mental inventory" of what she has learned from her past shopping and purchase experiences.
According to the authors of your textbook, a retailer that engages in __________ has a sense of purpose that is higher than simply making a profit by selling products and services. A. virtue signaling B. bounded rationality C. profit maximization D. conscious marketing E. greenwashing
D. Conscious marketing
Retailing is described by the authors of your textbook as "the set of business activities that adds value to the products and services sold to __________ for their __________." A. consumers; ultimate enjoyment B. organizations; use in the course of doing business C. nonprofit and governmental organizations; charitable and humanitarian purposes D. consumers; personal and family use E. companies; resale or operational use
D. Consumers; personal and family use
Gordon Food Service is a Grand Rapids, Michigan-based wholesaler/distributor. The company sells to grocers, restaurants, and institutions in a multi-state area that extends from Northern Michigan to Key West. You've probably seen its red-and-white "GFS" tractor/trailer rigs on the highway. In 1979, the company opened its first retail store, GFS Marketplace, making a large selection of restaurant-quality products available for household use. GFS Marketplace stores now exist in over 100 locations, and are an ideal source for large households and consumers who may be planning to throw parties - and no membership fee is required of those who wish to shop there. When Gordon Food Service began opening GFS Marketplace stores, the company was __________. A. engaging in industry consolidation B. establishing a wholesale-sponsored voluntary cooperative group C. engaging in backward integration D. engaging in forward integration E. implementing a reverse supply chain
D. Engaging in forward integration
In 2017, Target made charitable contributions of $217,673,712 in cash and products. Much of the money was used to improve children's education and development through grants for field trips, youth soccer, and the arts. In addition to supporting K-12 education through its giving, the company also provides financial support to St. Jude's Children's Research Hospital, the American Red Cross, and the Salvation Army. Target employees also donate hundreds of thousands of hours to volunteer projects in their communities each year. Target's actions are an example of a retail corporation's commitment to __________. A. generating projects to keep its employees busy B. managing its excess inventory C. obeying the law D. fulfilling its corporate social responsibility E. distracting its critics
D. Fulfilling its corporate social responsibility
In the typical system for grouping merchandise within a retailer's buying organization, which of the following correctly describes the levels of merchandise, from highest to lowest? Or, said differently, from the broadest to the most specific? A. Classification > Department > Category > Merchandise Group > SKU B. Department > Merchandise Group > Classification > Category > SKU C. Category > Classification > Merchandise Group > Department > SKU D. Merchandise Group > Department > Classification > Category > SKU E. Merchandise Group > Classification > Department > Category > SKU
D. Merchandise Group > Department > Classification > Category > SKU
By recent estimates, the Nashville-Davidson-Murfreesboro-Franklin __________ had a population of 1,670,890, with 691,243 of those individuals residing within Nashville itself. By similar estimates, the Somerset KY __________ is populated by 63,063, of whom 11,487 live within the community of Somerset itself. A. Metropolitan Statistical Area (MSA); Metropolitan Statistical Area (MSA) B. Micropolitan Statistical Area (MiSA); Metropolitan Statistical Area (MSA) C. Micropolitan Statistical Area (MiSA); Micropolitan Statistical Area (MiSA) D. Metropolitan Statistical Area (MSA); Micropolitan Statistical Area (MiSA) E. Micropolitan Statistical Area (MiSA); Combined Statistical Area (CSA)
D. Metropolitan Statistical Area (MSA); Micropolitan Statistical Area (MiSA)
An example of intertype competition is when __________ and __________ compete for the same customer's dollar. A. Costco; Sam's Club B. Whole Foods Market: Fresh Market C. Lowe's; Home Depot D. Speedway; Walgreens E. Walmart; Target
D. Speedway; Walgreens
Regarding stakeholders, which of the following is not consistent with the information that appears in your textbook? A. A retailer's supply chain partners are stakeholders. B. A retailer's employees are stakeholders. C. Stakeholders are people who might be affected by a company's actions. D. The words stakeholder and shareholder mean the same thing. E. A retailer's customers are stakeholders.
D. The words stakeholder and shareholder mean the same thing
When a retailer is deciding upon a type of location (e.g., freestanding location, Main Street, regional mall, community strip center), it needs to select a location that is consistent with __________. A. the typical shopping behavior of members of its target market B. its positioning strategy C. the density of the target market in relation to the location D. all of the above E. none of the above
D. all of the above
For retailers who wish to involve themselves in the CRM process, the first necessary activity is collecting customer shopping data. The second activity is __________. A. inviting vendor collaboration B. setting up a frequent-shopper program C. deciding on a way to deal with unprofitable customers D. analyzing customer data and identifying target customers E. CRM program implementation
D. analyzing customer data and identifying target customers
Gross margin return on investment (GMROI) is a metric used by retailers to determine a(n) __________'s contribution to __________. A. department; inventory turnover B. SKU; net profit C. category; cost of returned merchandise D. buyer; ROA E, single store; total chain-wide revenue
D. buyer; ROA
According to the authors of your textbook, we can consider Dollar General and Dollar Tree to be __________. A. off-price retailers B. third-tier department stores C. full-line discount stores D. extreme-value retailers E. specialty stores
D. extreme-value retailers
Tucker Rucker has little to no preference for a brand of tires. He says, "Goodyear, Bridgestone, Toyo, Michelin, Uniroyal, Dunlop, BF Goodrich, Cooper, Hankook, Yokohama, Mastercraft, Cooper, General - they're all about the same. Round, black, and made of rubber." Tucker will go only one place to buy tires for his Ford F-150 truck and for the family Taurus: Walmart Auto Care Center. If one of the vehicles needs tires, Tucker goes to Walmart. Once he's there, he'll try to keep the process short and simple by buying whatever the sales associate recommends, unless he considers the price to be outrageously out of line. Based on the authors' explanation of "types of buying decisions," Tucker's tire shopping behavior most closely resembles __________. A. impulse buying B. autonomic decision making C. extended problem solving D. habitual decision making E. Limited problem solving
D. habitual decision making
The authors of your textbook describe [a] __________ as "a specific type of retail analytics that focuses on the composition of the . . . bundle of products purchased by a household during a single shopping occasion." A. depth interview B. RFM (recency-frequency-monetary) analysis C. cohort analysis D. market basket analysis E. focus group
D. market basket analysis
A store's __________ is the geographic area from which it draws 50 to 70 percent of its customers. Its __________ is located immediately beyond that area, and generates another 20 to 30 percent of the store's customers. The remaining customers come from the store's __________. A. performance center; mezzanine habitants; remote audience B. sphere of influence; gravity zone; orbital zone C. impact zone; fallout zone; incidental exposure zone D. primary trading area; secondary trading area; tertiary trading area E. epicenter; suburban feed; exurban diaspora
D. primary trading area; secondary trading area; tertiary trading area
The authors of your textbook define __________ as "a set of activities and techniques firms employ to efficiently and effectively manage the flow of merchandise from the vendors to the retailer's customers." A. logistics B. direct store delivery (DSD) C. vendor-managed inventory (VMI) D. supply chain management E. electronic data interchange (EDI)
D. supply chain management
The authors of your textbook define a retail strategy as a statement that identifies (1) the retailer's target market, (2) the format the retailer plans to use to satisfy the target market's needs, and (3) __________. A. a graphic representation of the retailer's trade area B. a summary of the company's approach to site selection C. a "competitive intelligence" section that analyzes the retailer's three largest intratype competitors D. the bases on which the retailer plans to build a sustainable competitive advantage E. the bio(s) of the company's principal owners (if private) or board of directors (if publicly traded)
D. the bases on which the retailer plans to build a sustainable competitive advantage
In a typical supply chain for a low-cost, frequently-purchased consumer product (such as a magazine or package of candy) a manufacturer would primarily sell to and be concerned about the _____, and a wholesaler would primarily sell to and be concerned about the ______. A. consumer, retailer B. retailer, consumer C. wholesaler, consumer D. wholesaler, retailer
D. wholesaler, retailer
_______________ is the process of grouping consumers into market segments based on what they want the product to do for them. A. Buying situation segmentation B. Psychographic segmentation C. Geographic segmentation D. Demographic segmentation E. Benefit segmentation
E. Benefit segmentation
Beverly Everly takes her lunch to work every day, and a sandwich is always part of her lunch. Bev's favorite part of a sandwich is the cheese, and she enjoys just about any cheese that has a bold flavor. Bev is loyal to the Sargento brand of sliced cheese, which she buys at her neighborhood supermarket. In the past, Bev has bought—and enjoyed—Sargento Chipotle Cheddar slices, Sargento Jarlsberg Swiss slices, Sargento Pepper Jack slices, Sargento Muenster slices, Sargento Extra-Sharp Cheddar slices, Sargento Aged Swiss slices, and Sargento Vermont White Cheddar. Each of these Sargento cheeses is almost always available at Bev's neighborhood supermarket, as are the more "ordinary" kinds (such as Sargento Mild Cheddar, Sargento Monterrey Jack, Sargento Provolone). Today, Bev is unable to shop at her neighborhood supermarket because of recent storm damage to the store. Instead, she is shopping at a competing supermarket a few miles from her home. When she arrives at the cheese section, Bev is dismayed to see that this store carries only five kinds of Sargento slices: Swiss, Mild Cheddar, Monterey Jack, Medium Cheddar, and a Cheddar-Mozzarella blend—and none of these appeal to her adventuresome taste buds. Compared to Bev's neighborhood supermarket, the store where she is shopping today appears to offer __________. A. fewer brands of merchandise B. less ambience C. less service D. a more narrow variety of merchandise E. a more shallow assortment of merchandise
E. a more shallow assortment of merchandise
When a manufacturer ships merchandise to a retailer's distribution center, a(n) __________ tells the retailer's distribution center what has been shipped and when it will be delivered. A. radio frequency identification (RFID) tag B. shipping document (SD) C. universal product code (UPC) D. bill of lading (BOL) E. advance shipping notice (ASN)
E. advance shipping notice (ASN)
_____ is the process of grouping consumers into market segments based oon what they want the product to do for them. A. geographic segmentation B. psychographic segmentation C. Demographic segmentation D. Buying situation segmentation E. Benefit segmentation
E. benefit segmentation
Typically, we'd expect a(n) __________ to carry a broader variety of merchandise than a(n) __________. A. home-improvement center; discount store B. extreme-value retailer; discount store C. specialty store; department store D. drugstore; off-price retailer E. department store; category specialist
E. department store; category specialist
A(n) __________ is an assortment of items that customers see as substitutes for one another. A few examples might be men's outerwear, soft drinks, fashion footwear, salty snacks, kitchen gadgets, floor coverings, and swim apparel. A. department B. merchandise classification C. merchandise group D. stock-keeping unit (SKU) E. merchandise category
E. merchandise category
A _____ retailer uses more than one channel to sell and deliver merchandise and services to customers. A ____ retailer coordinates multichannel retail activities in a way that provides seamless and synchronized customer experience A. mobile, automated B. uber-channel, opti-channel C. bricks-and-clicks, nonstore D. enhanced-channel, ultrachannel E. multichannel, omnichannel
E. multichannel, omnichannel
According to the authors of your textbook, we can consider Burlington (formerly known as Burlington Coat Factory), Marshalls, and Big Lots to be __________. A. extreme-value retailers B. full-line discount stores C. specialty stores D. third-tier department stores E. off-price retailers
E. off-price retailers
In a SWOT analysis the letter O stands for A. online B. ownership C. optimization D. original E. opportunities
E. opportunities strengths, weaknesses, opportunities, threats
Rather than owning warehouses to store merchandise, retailers can use public warehouses that are owned and operated by an independent company. This is a form of __________. A. pull supply chain B. freight forwarding C. backhauling D. reverse logistics E. outsourcing
E. outsourcing
A(n) __________ is a group of consumers with similar needs and a group of retailers that satisfy those needs using a similar retail format. A. mass market B. retail cartel C. metropolitan statistical area (MSA) D. designated market area (DMA) E. retail market segment
E. retail market segment
Stages in the Consumer Decision-Making Process are
need recognition > information search > evolution of alternatives > purchase > post-purchase behavior
Conversion rate is:
the total number of customers who leave the store (or exit a website) having made a purchase, divided by the total number of shoppers who enter the store (or access the website)
