Retail Management Quiz Questions

Which of the following statements is true of retailing in developing economies? 1.It does not affect gross domestic product across the world. 2.The same retailing model used in developed countries is likely to be retained. 3.The large size of developing economies is likely to be a motivating factor. 4.There is a larger urban target market. 5.There is a higher local demand for imported goods.

3.The large size of developing economies is likely to be a motivating factor

What is an advantage of an independent, single-store over other forms of retail ownership? Presence of a decision making managerial board Bureaucratic operation Economies of scale Specialized managers to oversee specific tasks Ability to react quickly to market changes

Ability to react quickly to market changes

Anna requires a new dress for her graduation ceremony, and she decides to visit Drezzez Inc., the apparel store. Which of the following scenarios describes a possible retail improvement that might exist in an apparel store of the future? Anna will be able to get a discount on her dress. Anna will be able to try on her dress of choice on a virtual platform. Anna will be able to make changes to the design of the dress. Anna will be able to pay for her purchase through a credit card. Anna will be able to acquire the product virtually.

Anna will be able to try on her dress of choice on a virtual platform.

Which of the following does not illustrate a sustainable competitive advantage? Kohl's offering exclusive brands such as ELLE, FILA, Food Network, Simply Vera, Vera Wang, and Dana Buchman at their stores Wet Seal devoting considerable time and effort to social networking to establish personal relationships with each of its customers to drive conversion, sales, and brand loyalty My Coke Rewards program requires customers to enter codes found on specially marked packages of Coca-Cola products on a website. These codes are converted into virtual "points" which can in turn be redeemed by members for various prizes or sweepstakes entries. Millions of consumers rely on Martha Stewart as their arbiter of style and taste and their guide to all aspects of everyday living—from cooking and entertaining to decorating and gardening, and much more. Different segmented exclusive Martha Stewart products can be found at Macy's, Home Depot, and PetsSmart. BP gas stations offering a $10 gift card to customers after five fill-ups of at least eight gallons each time

BP gas stations offering a $10 gift card to customers after five fill-ups of at least eight gallons each time

Which of the following is an example of intratype competition? CVS and Victoria's Secret CVS and Walmart CVS and Amazon.com CVS and Walgreens CVS and Best Buy

CVS and Walgreens

Which of the following statements is true of comparison shopping? Category specialists offer the same benefits of comparison shopping as a collection of co-located specialty stores. Consumers avoid comparison shopping when the store is located in a destination store. Consumers involved in comparison shopping have a well-developed preference for a brand or model. Consumers involved in comparison shopping situations are seldom involved in the purchase decision.

Category specialists offer the same benefits of comparison shopping as a collection of co-located specialty stores.

Which of the following is true of customer characteristics as concluded from the VALS survey? Customers primarily motivated by ideals look for products and services that demonstrate success to their peers. Customers' primary motivation for buying is independent of their income group. Customers who are motivated by achievement are guided by knowledge and principles. Customers' primary motivation for buying is independent of their self-image. Consumers who are primarily motivated by self-expression desire social or physical activity, variety, and risk.

Consumers who are primarily motivated by self-expression desire social or physical activity, variety, and risk.

_____ occurs when a retail firm invests in and owns a retail operation in a foreign country. Wholesaling Joint venture Direct investment Franchising Strategic alliance

Direct investment

Of the different approaches of entering a global market, which of the following has the highest risk and requires the most investment? Direct investments Franchises Strategic implementation Strategic alliances Joint ventures

Direct investments

Which of the following is an advantage of the catalog channel? Cash payment Immediate gratification Extensive and timely information Personalization Ease of use

Ease of use

Which of the following is an advantage of shopping through the Internet channel? Entertainment and social interaction Extensive and timely information Risk reduction Ease of use Cash payment

Extensive and timely information

_____ are retail locations for an individual, isolated store unconnected to other stores. Discount-anchored centers Central business districts Neighborhood centers Freestanding sites Off-price centers

Freestanding sites

Which of the following is an advantage of shopping through the store channel? It requires that customers watch a home video. It allows customer to shop from the comfort of their home. It allows customers to make cash payments. It requires that orders be placed over the Internet. It allows customers to make purchases at any time of the day.

It allows customers to make cash payments.

Which of the following is a benefit of the information generated by placing cookies on a customer's hard drive? It provides information about a customer's bank account details. It allows the retailer to provide customized promotions. It allows customers to make direct cash payments to the retailers. It provides information about a customer's credit rating details. It allows the customers to interact directly with the retailers

It allows the retailer to provide customized promotions.

What is retailing? It deals with the sale of products meant for personal use. It refers exclusively to the sale of services in stores. It refers exclusively to the sale of products and services over the internet. It refers exclusively to the sale of products in stores. It deals with the sale of products meant for industrial use.

It deals with the sale of products meant for personal use.

_____ are open-air shopping centers composed mainly of upscale apparel shops, boutiques, and gift shops carrying selected fashions or unique merchandise of higher quality and price along with restaurants and entertainment and are therefore are usually located in higher-income areas. Community strip shopping centers Omnicenters Theme/festival centers Power centers Lifestyle centers

Lifestyle centers

What is a retailer's role in the supply chain? Initiating the supply chain process Selling products to wholesalers Linking manufacturers to consumers Acting as the liaison between manufacturers and wholesalers Buying merchandise exclusively and directly from the manufacturers

Linking manufacturers to consumers

_____ involves using more than one channel to sell and deliver merchandise and services to consumers. Single-channel retailing Multichannel retailing Internet retailing Direct selling Mobile retailing

Multichannel retailing

Live Healthy Inc., a drug store retailer, has added jewelry, accessories, and apparel to its offerings. Which of the following terms best describes this scenario? Backward integration Scrambled merchandising Inverted merchandising Vertical integration Intratype competition

Scrambled merchandising

John has been invited to Sarah's wedding, and he decides to buy her a gift at Natasha's, a department store. Sarah is a frequent shopper at Natasha's, and John is more likely to choose something that she will like. Which of the following technologies would enable that? Customized promotional offers Self-checkout systems Personalized virtual reality displays RFID tags on the clothes Shared customer database

Shared customer database

_____ locations involve an agreement in which a retailer rents a part of the retail space in a store operated by another independent retailer. Pop-up Store-within-a-store Shopping mall Merchandise kiosk Theme center

Store-within-a-store

Which of the following statements is not true about online retailing? Internet sales represent less than 10 percent of total retail sales. Online retailers who have niche target markets are more likely to be successful than those that have abundant competition. Traditional store-based retailers are using the Internet for multichannel retailing to gain a better share of a customer's wallet. Online retail sales continue to grow much faster than retail sales through stores and catalogs. The Internet is a revolutionary retail format that will eventually replace stores and catalogs.

The Internet is a revolutionary retail format that will eventually replace stores and catalogs.

Tina is a frequent shopper at a department store and is well known at her hometown outlet. She has travelled to another city where the store has a branch and happens to visit it. Which of the following technologies would enable the store to identify her and offer her the privileges of a frequent shopper? Self-checkout systems Customized customer database Personalized virtual reality displays The RFID on her card The credit card reader

The RFID on her card

Which of the following is a reason for the decline in the availability of retail managers? The low remuneration package The highly generalized nature of work The lack of a large talent pool The lack of responsibility associated with the position The lack of growth in the profession

The lack of a large talent pool

With discount stores also offering grocery in their offerings, what can conventional supermarkets do to differentiate their offerings? They can eliminate perishables. They are concentrating on building a single channel presence by not diversifying. They can invest in a just-in-time inventory management. They are decreasing the amount of exclusive merchandise that they sell. They can produce private-label merchandise.

They can produce private-label merchandise.

Which of the following statements is an advantage of freestanding sites? They have lower vehicular traffic. They have lower occupancy costs than shopping centers. They have higher pedestrian traffic. They have fewer restrictions on signs, hours, or merchandise. They do not have any common area maintenance fees

They have fewer restrictions on signs, hours, or merchandise.

Which of the following statements is true of main street locations? They have a range of recreational and entertainment activities. They draw large crowds of people. They have high occupancy costs. They have a large number of stores and a large workforce. They have restrictions due to town or reorganization planning.

They have restrictions due to town or reorganization planning.

_____ is described as diversification by retailers into wholesaling or manufacturing. Unrelated diversification Horizontal integration Vertical integration Related diversification Cross-selling

Vertical integration

_____ are retailers that offer a limited and irregular assortment of food and general merchandise with little service at low prices for ultimate consumers and small businesses. Warehouse clubs Hypermarkets Supercenters Convenience stores Supermarkets

Warehouse clubs

Which of the following examples best illustrates a utilitarian need? Asif buys himself a new car on receiving a promotion in his job. Josh buys himself a new bat as a reward for scoring three home runs in the last game. Zara buys new curtains to replace the worn out ones in her living room. Soraya buys herself a new laptop for her birthday. Carol buys herself a new sweater in summer as it was offered at a discount.

Zara buys new curtains to replace the worn out ones in her living room.

Helen's, an apparel store, segments its market on the basis of the demographic characteristic of physical size and not on factors like ethnicity. This follows from the _____ criteria used for evaluating whether a retail segment is a viable target market. sustainable identifiable substantial reachable actionable

actionable

At Mall of America, Macy's, Bloomingdales, Sears, and Nordstrom are the _____. shopping malls anchors outparcels lifestyle stores fringe stores

anchors

Shopping malls: have a small trade area. experience significant vehicular traffic and drive through business. are climate-controlled and are open all-year around. are the latest trend in retail outlets. have low occupancy costs.

are climate-controlled and are open all-year around.

Retail distribution centers: are involved in managing quality control for the retailers. are virtual inventories that help to keep track of the quantity of goods. are involved in managing product placement for the retailer. are used to display goods for customers to browse. are customized to support store, Internet, and catalog channels.

are customized to support store, Internet, and catalog channel

Tillers LLC—a famous retailer—carries groceries, sporting goods, automobiles, electronics, housewares, health and beauty aids, apparel, footwear, jewelry, camping gear, and more. Using the provided information, it can be concluded that Tillers has _____. broad variety low inventory deep assortment good customer base low shrinkage

broad variety

A community that wishes to keep an old town atmosphere has forbidden the use of any neon lighting. This would be an example of a _____. zoning code building code common maintenance code trading area code blue law

building code

When customers conduct product research on a retailer's websites but then purchase the product elsewhere, it is referred to as _____. acquisition competition intertype merchandising channel migration scrambled merchandising centralization

channel migration

The _____ is responsible for providing security, parking lot lighting, outdoor signage, advertising, and special events to attract consumers and so on. location revival association mixed use arrangement common area maintenance community coverage development preservation

common area maintenance

When Jenna buys groceries, she shops at Whole Foods or Trader Joe's because she knows that these two stores carry organic and unique foods. For Taylor, these two stores make up her _____. market segment conversion rate consideration set retail criterion retail union

consideration set

Patagonia reinforces its image of selling environmentally friendly sports equipment in its stores by using optimal lighting and manufacturing goods from recycled material. This scenario demonstrates _____. the importance of information systems in retailing centralized multichannel retailing consistent brand image across channels the advent of channel migration deep merchandise assortment

consistent brand image across channels

A retailer that has many people browsing in their store, but few people actually buying products, needs to strive to increase its _____. market segment conversion rate innovativeness advertising consideration set

conversion rate

At Forever 21, a sales associate is suggesting accessories to a customer at the check-out area to go with the sweater she is purchasing. This selling approach is called _____. down-selling incentive-selling cross-selling up-selling straight-selling

cross-selling

To be successful in international markets, retailers have found that it is essential to develop all of the following except _____. a global culture adaptability a globally sustainable competitive advantage financial resources cross-selling strategies

cross-selling strategies

Elena usually shops for her clothing at Macy's but would never buy her cosmetics there. She buys her cosmetics at Walmart. Her pattern of buying would be an example of _____ . segmenting cross-shopping cross-docking cocooning comparison shopping

cross-shopping

A fast-food retailer observes that his sales orders do not show much variety with respect to the store location. Instead, the needs of his customer are age-related. From the given information, it can be concluded that he is most likely to follow _____ market segmentation. geographic demographic benefit psychographic lifestyle

demographic

Tangent Inc., the department store, knows from market research that their average customers 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. This information is based on _____ . innovativeness geographics lifestyles psychographics demographics

demographics

The SWOT analysis: specifies the retail format that a retailer will follow. specifies the scope of the activities that a retailer intends to undertake. describes the social causes that the retailer supports. describes the promotional offers provided by the retailer. describes the opportunities and threats faced by a retailer from external factors.

describes the opportunities and threats faced by a retailer from external factors.

A restaurant's decision to convert its image from an upscale dining option into a one-for-all fast food is a consequence of the influence of _____ on customer buying decisions. economy friends family reference groups culture

economy

A hotel's decision to redesign their seating plan to provide optimal space for visiting children is a consequence of the influence of the _____ on customer buying decisions. economy friends reference groups culture family

family

The _____ ownership format combines the advantages of owner-managed business with the efficiencies of centralized decision making in chain store operations. full-line discount stores wholesale-sponsored voluntary cooperative chain retail chain franchise single-store establishment

franchise

Many inner-city areas are going through a process of _____ which is the renewal and rebuilding of offices, housing, and retailers in deteriorating areas coupled with an influx of more affluent people that displaces the former, lower-income residents. retail segmentation globalization gentrification marginalization trade zone expansion

gentrification

Chinese consumers exposed to the American programs and trends desire to emulate Americans. This has given the American brands an edge in the _____ characteristic for successful exploitation of international growth opportunities. regulatory adjustments globally sustainable competitive advantage supplier support adaptability globally cultural mindset

globally sustainable competitive advantage

KartonKings Inc., a food retailer, processes customer feedback data to make an informed decision about product performance. The ability to process huge volumes of customer data is a consequence of the development of _____ on the retail industry. advertising information systems social awareness the Internet social media

information systems

When it comes to service retailing, since customers cannot see, touch, or feel what is being sold, the _____ of the service can sometimes be a concern for customers in trying to decide whether to buy or not. availability intangibility necessity durability perishability

intangibility

Which of the following terms refers to the competition between the same types of retailers? Scrambled merchandising Backward integration Intratype competition Forward integration Intertype competition

intratype competition

Habitual decision making: engages when the decision is of a high-risk nature. engages when the decision is of a high uncertainty. involves the offer of money-back guarantees. involves little or no conscious effort. involves extensive thought and planning.

involves little or no conscious effort.

In a specialty shopping situation, the consumer: is willing to expend effort in comparing all the available options. is brand and/or retailer loyal. is concerned with minimizing the purchase effort. expects the product to be available in a convenient location. does not have a specific brand in mind.

is brand and/or retailer loyal.

Limited problem solving decision process: is likely to prompt the offer of money-back guarantees. is done on the spot after seeing the merchandise. is engaged in when the decision is of a high uncertainty. is engaged in when the decision is of a high-risk nature. is more likely to happen when a hedonic need is being satisfied.

is done on the spot after seeing the merchandise.

A retailer performing scrambled merchandising: is likely to experience intertype competition. is likely to retail products at the lowest prices. is likely to experience intratype competition. is likely to provide highly specialized and rare products. is likely to stock only perishables.

is likely to experience intertype competition.

Extended problem solving in a buying decision: is engaged in when the decision is of a low uncertainty. is more likely to happen when a hedonic need is being satisfied. is engaged in when the decision is of a low-risk nature. is likely to prompt the offer of money-back guarantees. is more likely to happen when the needs are commonplace.

is likely to prompt the offer of money-back guarantees.

A company would enhance its corporate social responsibility image by: advertising its products through social media. increasing the salaries of its employees. not expanding to global locations. recruiting more number of people for its offices. lowering its energy consumption.

lowering its energy consumption.

A retailer expanding their hours to be open an additional hour each evening is using the _____ growth strategy. retail format development related diversification market expansion unrelated diversification market penetration

market penetration

Service retailers: must try to maintain consistent high-quality services. are involved in the sale of tangible goods. are not dependent on customer feedback to evaluate the quality of their offerings. are not affected by the time and location of service. do not deal in perishables.

must try to maintain consistent high-quality services.

The weather forecast is reporting that the season's first snowfall is predicted to hit tomorrow, and it will also involve ice and sleet. Many homeowners rush out to purchase shovels and deicing rock salt for their driveways. This has stimulated _____ which is a part of the buying process. choice of alternatives need recognition post-purchase satisfaction evaluation of consideration sets information search

need recognition

Assortment is the: number of countries in which a particular offering is available. number of merchandise categories a retailer offers. measure of ethnic and cultural categories a product caters to. number of stores that a particular vendor has. number of different items offered in a merchandise category.

number of different items offered in a merchandise category.

Variety is the: number of countries in which a particular offering is available. number of different items offered in a merchandise category. number of stores that a particular vendor has. number of merchandise categories a retailer offers. measure of ethnic and cultural categories a product caters to.

number of merchandise categories a retailer offers.

Department stores: enable consumers to make purchases quickly. offer a broad variety and deep assortment of goods. offer limited customer services to keep operation costs low. combine with a supermarket to make up a warehouse club. offer the best deals and lowest prices in the market.

offer a broad variety and deep assortment of goods.

Best Buy is considered to be a category specialist retailer because it _____. competes directly with discount retailers offers a narrow variety but deep assortment of merchandise relies on extended warranty sales has extensive customer services has special categories of merchandise

offers a narrow variety but deep assortment of merchandise

Service retailers sometimes find it difficult to match supply and demand because the creation and consumption of the service is simultaneous. This is a consequence of _____. perishability intangibility availability necessity durability

perishability

Some retailers locate a smaller version of their typical retail store to create a buzz, test new concepts, or to evaluate a new neighborhood or city. These retail formats are referred to as _____. pop-ups omnicenters multiformat developments mixed use developments free-standing sites

pop-ups

A perpetual map is developed to identify how customers view competing retailers' _____. product placement pricing policies product design positioning market penetration

positioning

GreenMart is a grocery store that is exclusively involved in the sale of organic products. They also encourage their customers to be environmentally aware by requesting them to use reusable bags and ban plastics from their store. The retailer in this instance targets the _____ market segment. geographic psychographic benefit demographic geodemographic

psychographic

Showrooming: results from providing deeper assortments. results in loss of revenue for the retailer. results in gain of revenue for the retailers. results from providing better customer service. results from lowering product prices.

results in loss of revenue for the retailer.

The direct selling channel: provides little or no scope for customer interaction. results in the communication of extensive information about the product. involves direct interaction between the manufacturers and retailers. requires that the orders for purchase be placed over the Internet. is the most cost effective way to reach out to a large number of people.

results in the communication of extensive information about the product.

A _____ is a group of consumers with similar needs that a group of retailers can service using a similar retail formats to satisfy them. retail mix global market virtual market marketing cluster retail market

retail market

The _____ is a set of decisions retailers make to satisfy customer needs and influence their purchase decisions. advertising strategy promotional mix communication mix retail strategy retail mix

retail mix

After developing a thorough understanding of a retailer's competitive environment, a _____ is developed. advertising plan deployment strategy competitive strategy retail strategy viable customer base

retail strategy

After watching the movie "Captains Courageous," Don wanted a Chris Craft wooden boat in the worst way. Since he just received a large sum of money from his grandfather's will, he had the funds. Since these historic boats are unique and difficult to find, Don started searching on the internet for potential wooden boat dealers across the United States. This situation is referred to as _____. demand oriented shopping specialty shopping impulse shopping comparison shopping convenience shopping

specialty shopping

The mission statement: describes the promotional offers provided by the retailer. does not specify the societal obligations of the firm. specifies the scope of the activities that a retailer intends to undertake. describes the opportunities and threats faced by a retailer from external factors. describes a retailer's internal strengths and weaknesses.

specifies the scope of the activities that a retailer intends to undertake.

Full-line discount stores: emphasize extensive customer service to maintain customer loyalty. offer goods belonging to a single product category. stock both private labels and national brands. offer exclusive designer merchandise. combine with a supermarket to make up a warehouse club.

stock both private labels and national brands.

The _____ channel is better suited for selling products with important "touch-and-feel" attributes such as the fit of a shirt. catalog television home shopping direct-response TV Internet store

store

Eric is a salesperson who takes a high-pressure sales approach when he knows that a product is not suitable for a customer's needs. This is most likely to be a violation of the _____. retailer's non-disclosure policy store's advertising policy company's recruitment policy region's legal policy store's ethical policy

store's ethical policy

A retail strategy identifies the format the retailer plans to use to satisfy the _____. virtual market private-label brand store brand own brand target market

target market

Gamerz Inc., a video gaming developer, has come up with an idea of designing two versions for each of their bestselling games, one suitable for teenagers and the other for adults. This is an example of the _____. retail format target market private-label brand virtual market global market

target market

A retail format development growth opportunity involves: using a different retail mix for a different target market. investing in a new opportunity that has something in common with the retailer's present target market and retail format. using the same retail mix for a different target market. using a different retail mix for the same target market. selling complementary merchandise to the primary product of the main department.

using a different retail mix for the same target market.

BrainCord LLC is a retailer that designs its own merchandise and then contracts with manufacturers to produce it exclusively for them. It does not perform any direct manufacturing or wholesaling. This is an example of _____ integration. vertical backward horizontal forward diagonal

vertical

In a city, some parts of it are restricted for residents only while other parts of the city allow for retail stores. This illustrates _____. trading area codes zoning blue law building codes common maintenance codes

zoning