Chapter 2
Chapter 2
Chapter 3
Chapter 4
Chapter 5
100
If a chain of florist shops opened a plant nursery to provide gift plants and cut flowers to all of its stores within a 300-mile radius, the chain would be practicing A. vertical integration. B. channel expansion. C. horizontal expansion. D. opportunity incrementing. E. service marketing.
vertical integration
100
Each different item of merchandise in a retail store is called a(n) _____________. A. consumer offering B. store counted item (SCI) C. stored and keyed unit (SKU) D. stock keeping unit (SKU) E. economic unit
D. stock keeping unit (SKU)
100
Which of the following is ONLY a benefit of store channel shopping? A. Convenience B. Personal safety C. Personalization D. Immediate gratification E. Broad and deep assortments
D. Immediate gratification
100
What are the two sources of information which consumers use during the information stage of the buying process? A. Internal and external B. Primary and secondary C. Psychological and functional D. Emotional and rational E. Motivational and attitudinal
A. Internal and external
100
Which of the following is NOT true in describing positioning? A. A retailer builds customer loyalty by developing a clear, distinctive image of its retail offering. B. Positioning reinforces the image in the retail manager's mind. C. A retailer consistently reinforces its image through merchandise and service. D. Positioning involves the design and implementation of a retail mix to create an image of the retailer in the customer's mind relative to its competitors. E. None of the above
B. Positioning reinforces the image in the retail manager's mind.
200
Providing assortments is an advantageous business activity because: A. it enables the company to create a more informational and entertaining environment that would promote more sales. B. it enables the company to reinvest for the future of the business. C. it enables the customer to choose from a wide selection of brands, designs, sizes and prices all in one store. D. it enables the customer to try more products. E. it enables the customer to stock up on the assortments because of bulk availability.
C. it enables the customer to choose from a wide selection of brands, designs, sizes and prices all in one store.
200
The Men's Wearhouse stocks over 350 different styles and colors of ties. This assortment of ties can be referred to as the store's _________. A. supply standard B. complete retail offering C. breadth of merchandise D. retailer mix E. depth of merchandise
E. depth of merchandise
200
Retail websites typically offer _____________ than the retail store channel. A. deeper assortments B. better service C. less information on merchandise D. cheaper prices E. None of the above
A. deeper assortments
200
The multi-attribute attitude model is designed to: A. predict how a customer will evaluate a store based upon its attributes and how important these attributes are to the customer. B. forecast inventory needs based on a multiple regression model. C. segment the target market by examining customers' attributes and determine the store's or product's position in the market. D. modify preexisting attitudes by providing customers with a list of benefits (attributes) for shopping at a particular store or buying a particular product. E. shorten the buying process by highlighting the attributes that will most likely affect the buying behavior of the targeted market.
A. predict how a customer will evaluate a store based upon its attributes and how important these attributes are to the customer.
200
Select the growth strategy that best supports this description: A retailer using "cross-selling" or "add-on" sales strategy to increase their average sales per customer. A. Market Penetration B. Related Diversification C. Market Expansion D. Vertical Integration E. Retail Format Development
A. Market Penetration
300
Office Depot offers customers a huge selection of office supply merchandise. As a result, inventory investment _____________. A. increases because they have to carry back up stock for each SKU B. increases because of the increase in demand C. increases because of the value of the assortment D. decreases because of the increase of the customer base E. decreases because of the introduction of back up stock
A. increases because they have to carry back up stock for each SKU
300
______________ are products that have minor blemishes to the fabric or errors in the construction. A. Close-outs B. Irregulars C. Third-degree items D. Undergrounds E. None of the above
B. Irregulars
300
Ayesha went to Amazon.com to see the latest book by her favorite author. When she opened the website, Amazon.com greeted her by name, and recommended books based upon the purchases and books she viewed in the past. Amazon.com was utilizing: A. shopping bots B. cookies C. broad-band Internet access D. limited information E. repeat customer service strategy
B. cookies
300
Before selecting a store where he can purchase his son's shoes, Lamar evaluated the Athletic Attic, Macy's, Target, Red Goose Shoe Store, and the Shoe Rack. What is the term used to describe these stores that are being evaluated? A. his targeted market B. the retail market segment C. his consideration set D. retail criterion E. the consumer attitudinal set
C. his consideration set
300
Which of the following describes the market expansion growth strategy? A. Realizing growth by directing efforts toward existing customers using the retailer's present retailing format. B. Cross-selling. C. Keeping existing stores open for longer hours. D. Displaying merchandise to increase impulse purchases and training salespeople to cross-sell. E. Opening stores of the same retail format in new market segments.
E. Opening stores of the same retail format in new market segments.
400
Why do category specialists call themselves "category killers"? A. Because they have a lock on the competition, they can demand higher prices. B. By offering a complete assortment in a category at low prices, category specialists can "kill" a category of merchandise for other retailers. C. To keep costs low, employee assistance is nonexistent, thus has "killed" off customer service. D. As they edit their product assortments, they narrow down and drop off classifications. E. None of the above
B. By offering a complete assortment in a category at low prices, category specialists can "kill" a category of merchandise for other retailers.
400
In a franchise contract, the franchisor _________. A. makes sure all franchise outlets provide the same quality of service and products B. agrees to operate a franchise outlet in accordance with procedures prescribed in the contract C. agrees to pay a royalty to the franchisee D. is given permission to use a franchise name and format E. does all of these things
E. does all of these things
400
) When consumers collect product information on a retailer's website but buy the product from another retailer's store it is referred to as ________. A. channel migration B. cross-shopping C. multi-channel users D. entrepreneurs E. electronic agents
A. channel migration
400
What would be a measure of retailers' success at converting positive evaluations into purchases? A. The number of traffic at a store. B. The number of visits on a Web site. C. The number of browsing page on a Web site. D. The time spent at a store. E. The number of abandoned carts on a Web site.
E. The number of abandoned carts on a Web site.
400
When Blockbuster moved its stores into other countries, it increased the company's international market share. Blockbuster took advantage of a ______ opportunity. A. diversification B. market expansion C. market divestment D. retail format development E. market penetration
B. market expansion
500
CVS, Walgreens and Rite Aid are _________ competitors. A. indirect B. intratype C. intertype D. vertical E. horizontal
B. intratype
500
Which of the following is NOT a benefit of store channel shopping experience? A. Browsing B. Immediate gratification C. Personal safety D. Personal service E. Risk reduction
C. Personal safety
500
What is a way that retailers can reduce channel migration? A. Promote private-label merchandise that can be purchased only from that retailer. B. Persuade suppliers to increase their sales forecasts. C. Encourage vendors to deliver complete assortments. D. Increase efficiencies of supply chain management. E. None of the above
A. Promote private-label merchandise that can be purchased only from that retailer.
500
Bella is getting married in two months. When she chooses bridesmaids' gowns, her gown, and flowers for the ceremony, she will be using _____________ because she must be sure that the mothers and the groom will approve of her choices. This will not be easy as she has never organized a wedding before. A. unlimited problem solving B. extended problem solving C. complex decision making D. habitual decision making E. limited problem solving
B. extended problem solving
500
Which of the following summarizes a firm's financial performance over a period of time? A. balance sheet B. income statement C. profitability statement D. strategic profit model E. financial leverage statement
B. income statement
M
e
n
u