MKTG Chapter 14 quiz

Which of the following is true of a freestanding location? a. It has low site cost or rent and no nearby competitors. b. It is easier to attract customers to a freestanding location. c. There is limited visibility because it is often located in pedestrian malls. d. There are many retailers around the location to share costs.

a. It has low site cost or rent and no nearby competitors.

_____ is a direct marketing technique that is based on data analytics of census data, lifestyle patterns, financial information, and past purchase and credit history that allows direct mailers to pick out those most likely to buy their products. a. Microtargeting b. M-commerce c. E-tailing d. Telemarketing

a. Microtargeting

_____ pricing focuses on the worth of a product to a consumer more than the cost of the product to a supplier. a. Value-based b. Revenue-oriented c. Operations-oriented d. Bundle

a. Value-based

Zara's retailing operation model: a. combines a mass merchandising strategy with low levels of customer service. b. has the potential to increase repurchases. c. creates demand by continually restocking popular items. d. likely means that the retailer has higher inventory costs.

b. has the potential to increase repurchases.

Perhaps the best way to address retail product or service failures is to: a. dimiss customer complaints. b. have a plan in place to deal with any issues that may arise. c. train employees on how to appropriately apologize to customers. d. offer customers a percentage off discount.

b. have a plan in place to deal with any issues that may arise.

An objective of strategic retailing is to a. decrease store traffic. b. increase total sales. c. increase the cost of goods sold. d. focus mainly on online selling.

b. increase total sales.

Which of the following is not one of the main areas that service distribution must focus on? a. Minimizing wait times b. Managing service capacity c. Increasing profitability through customer service d. Improving service delivery

c. Increasing profitability through customer service

Which of the following is true of trading up? a. It helps shoppers recognize true needs and spend less. b. It seeks to increase store traffic by attracting people through advertisements outside the store. c. It tries to persuade customers to buy a higher-priced item than they originally intended to purchase. d. It seeks to broaden customers' original purchases with related items.

c. It tries to persuade customers to buy a higher-priced item than they originally intended to purchase.

Luxury handbag and accessories retailer Rebecca Minkoff utilizes _____ in its stores. Fitting rooms have "magic mirrors" that identify a garment a customer is trying on and then show the customer recommended accessories they could buy to accompany it. a. beacons b. facial recognition c. RFID technology d. big data analytics

c. RFID technology

_____ is defined as the reduction of multiple retail channel systems into a single, unified system for the purpose of creating efficiencies or saving costs. a. Retail channel distribution b. Nonstore retailing c. Retail channel omnification d. Microtargeting

c. Retail channel omnification

Which of the following statements is true of product assortment? a. Retailers are categorized according to the relationship between their products and their customers' needs. b. Product assortment allows traditional department stores and specialty stores to use low prices and discounts to lure shoppers. c. Stores often modify their product assortments in order to accommodate factors in the external environment. d. The service levels that retailers provide can also be categorized by the width and depth of their product lines.

c. Stores often modify their product assortments in order to accommodate factors in the external environment.

_____ are large, departmentalized, self-service retailers that specialize in food and some nonfood items. a. Specialty stores b. Department stores c. Supermarkets d. Supercenters

c. Supermarkets

Kohls utilizes ______, when a customer drives by their store, they receive a text message with a code for a percentage off in store. a. facial recognition b. big data analytics c. beacons d. RFID technology

c. beacons

Which of the following is a difference between exclusive stores and warehouse clubs? a. Exclusive stores use an indirect distribution channel, while warehouse clubs use a direct channel. b. Exclusive stores offer products at a heavy discount, while warehouse clubs offer no discounts. c. Exclusive stores offer standardized products, while warehouse clubs offer customized goods. d. Exclusive stores offer very high service levels, while warehouse clubs offer almost no service.

d. Exclusive stores offer very high service levels, while warehouse clubs offer almost no service.

Which of the following is true of direct mail? a. It employs outbound and inbound telephone contacts to sell directly to consumers. b. It allows consumers to order products online and collect them from a physical store. c. It enables customers to shop over the Internet and have items delivered directly to their doors. d. It allows marketers to precisely target their customers according to demographic, geographic, and/or psychographic characteristics.

d. It allows marketers to precisely target their customers according to demographic, geographic, and/or psychographic characteristics.

Which of the following describes a department store? a. It is a retail store that stocks pharmacy-related products and services as its main draw. b. It is an off-price retailer that is owned and operated by a single manufacturer and carries only its own line of merchandise. c. It carries a deeper but narrower assortment of merchandise within a single category of interest. d. It carries a wide range of products and specialty goods, including apparel, cosmetics, housewares, electronics, and sometimes furniture.

d. It carries a wide range of products and specialty goods, including apparel, cosmetics, housewares, electronics, and sometimes furniture.

Which of the following is a disadvantage of having a freestanding unit? a. It does not allow the store to build an identity with shoppers. b. It has high site costs or rent. c. It reduces the visibility of the store. d. It is difficult to attract customers to a freestanding location.

d. It is difficult to attract customers to a freestanding location.

Which of the following is a difference between specialty stores and full-line discounters? a. Specialty stores de-emphasize customer service, while full-line discounters focus on giving quality customer service. b. Specialty stores offer discounts to lure shoppers, while full-line discounters sell at prices 25 percent or more below traditional department store prices. c. Specialty stores have shallow product lines, while full-line discounters have considerably deep product lines. d. Specialty stores have the thinnest product assortments, while full-line discounters typically carry very wide assortments of merchandise.

d. Specialty stores have the thinnest product assortments, while full-line discounters typically carry very wide assortments of merchandise.

The retail industry in the United States: a. is weak, with most consumers cutting spending. b. is shrinking, due to offshoring. c. is small, accounting for only one fifth of the U.S. GDP. d. employs 42 million people.

d. employs 42 million people.