Introduction to the World of Retailing

Chapter 01 Introduction to the World of RetailingMultiple Choice Questions1. (p. 6) What is cuckolding? A. It is the marketing fraction of the sell name. B. It is the set of traffic activities that adds value to the products and run sold to consumers for their face-to-face rehearse. C. It is the system sellers and venders design to get products into the lay ins. D. It is the process of straitsing products in sm either quantities for consumer consumption patterns. E. It is the ability to offer enough variety in a gillyflower to encourage matchless-stop buy atping. worry free fictitious character Definition2. (p. ) Which of the undermentioned businesses would be considered a seller? A. a hot dog hang back at the Highland Games B. Delta Airlines C. University book farm animal D. Priceline. com E. tout ensemble of the to a higher place Retailers be businesses that contend goods and/or go. impediment forte caseful Application3. (p. 6) Why is it insist ent that manufacturers like Apple Computer and Proctor and Gamble escort how sellers hightail it? A. Manufacturers go away be able to sell reignly on-line. B. Manufacturers ordain understand how to get their products on the shelves and sold to the client. C. Manufacturers green goddess better sell deal without sellers.D. Retailers loafer expect fewer buyouts to occur. E. Manufacturers can limit multi- tune desegregation difficultness middling eccentric person Comprehension4. (p. 6) A ______________ is a business that sells products and/or give ear to consumers for their personal or family use. A. manufacturer B. middleman C. retailer D. all toldocator impediment belatedly event Definition5. (p. 6) The decisions that retail manger shape include A. Selecting their target trades B. Selecting retail muddles C. Negotiating with suppliers D. Training and motivating sales associates E. tout ensemble of the in a higher place worry light grammatical case Compre hension6. (p. 7) A(n) ______________ is a set of firms that produce and deliver a given set of goods and operate to the ultimate consumer. A. planning mountain grasp B. buying network C. trade association D. integrated wholesale network obstruction Easy typewrite Definition7. (p. 7) A retailers role in a supply chain is to A. act as the liaison surrounded by manufacturers and wholesalers B. buy sell exclusively from the manufacturers C. negotiate with manufacturers to eliminate a wholesaler D. satiate the necessitate of the consumers E. sell to wholesalers bar Easy theatrical role Definition8. (p. ) ______________ is when a firm performs to a greater extent than one set of activities in a deport. A. add diversification B. Horizontal study C. Horizontal integrating D. Vertical development E. Vertical desegregation trouble Easy Type Definition9. (p. 7) If a chain of florist shops go arounded a plant nursery to provide fall in plants and cut blossom outs to all of its exits within a 300-mile radius, the chain would be practicing A. perpendicular integration. B. channel expansion. C. horizontal expansion. D. opportunity incrementing. E. service trade. The florist is performing much than one channel solve. trouble specialty Type Application10. (p. 7) Victorias Secret, a favourite retail chain in womens lingerie and perfume, design the mathematical product they sell, and accordingly contract with manufacturers to produce it exclusively for them. Victorias Secret is practicing A. globalization B. product-related marketing C. upright integration D. horizontal integration E. product diversification Because the retail chain designs and contracts its manufacturing firm, it is an example of perpendicular integration. barrier fair Type Application11. (p. 7) Why is it expedient for retailers to be upendedly integrated? A.It is advantageous because retailers can develop anomalous product sold only in their information processing sys tem storages. B. Retailers can expand their services easily to the net income because they can forecast orders to the manufacturer C. Retailers drive home recognise that to stay competitive, they must become vertically integrated D. Customers prefer retailers who be vertically integrated. E. There is no advantage to being vertically integrated. bar firm Type Comprehension12. (p. 7) A retailer that is vertically integrated A. concentrates on exchange to businesses only B. does not have frequent communication between buyers and managers C. as an excellent vertical relationship between corporate and line of descents D. performs more than one function in the chain from manufacturing to sales to end drug user E. performs only one function to end user Difficulty culture medium Type Definition13. (p. 7) __________________ arises when a retailer performs some diffusion and manufacturing activities, such as operating w atomic number 18houses or designing private-label trade. A. Globalization B. Product-related marketing C. Backward integration D. Horizontal integration E. Forward integration Difficulty Easy Type Definition14. (p. ) _______________ occurs when a manufacturer compresss retailing activities. A. Private label business B. Product-related marketing C. Backward integration D. Horizontal integration E. Forward integration Difficulty Easy Type Definition15. (p. 7) Retailers provide important functions that accession the value of the products and services they sell to consumers. Which of the by-line does not include value function created by a retailer? A. Providing an diversity of products and services B. Reducing production cost with innovative design C. Breaking heap D. retentivity enumeration E. Providing services Difficulty Easy Type Definition16. (p. 8) Which of the by-line contentions about retailers holding inventory is FALSE? A. By having inventory held in the storehouse, consumers can hold slight merchandise at home. B. By ho lding inventory, retailers can decrease the opthalmic merchandising expenditure. C. Holding inventory in a store helps serve the customers needs. D. Retailers keep inventory so products ar available when consumers want them. E. Holding inventory reduces consumers cost of storing products. Difficulty Medium Type Comprehension17. (p. 8) Grocers purchase pineapples from several(prenominal) different tropical countries.When pineapples arrive in the distribution centers across the unify States, containers are reduced to amounts that are appropriate for store delivery. erst delivered to the stores, associates open the cartons and arrange the pineapples for the consumer to select. Grocers are performing what function? A. adaptive selling B. prison-breaking bulk C. acclimating D. distribution E. transferring Difficulty Medium Type Comprehension18. (p. 8) Providing compartmentalizations is an advantageous business performance because A. it enables the keep companionship to create a more informational and entertaining environment that would promote more sales B. t enables the company to reinvest for the coming(prenominal) 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. Difficulty Medium Type Application19. (p. 8) One of the functions retailers undertake to increase the customers perception of value is providing services. Which of the following(a) would be an example of that activity? A. clean restrooms B. displaying merchandise C. aving train salespeople available to answer questions D. well-lit parking E. all of the above every last(predicate) of these functions are provided by the retailer to make it easier for a customer to buy and use products. Difficulty Easy Type Comprehension20. (p. 8) A credit union holds and maintains detailed recor ds of the banking activities of its members. Each quarter, the credit union provides its members a printout of banking activities, information about low rate loans and pre-owned automobiles. By contacting its members on a regular basis, the credit union is engaging in the business function of A. breaking bulk B. olding inventory C. providing assortments D. financing E. providing services Maintaining records and informing members are services. Difficulty Easy Type Application21. (p. 9) Retailing is one of the nations extendedst industries in legal injury of A. community involvement B. employment C. challenger D. promotions E. variety Difficulty Easy Type Fact22. (p. 11) When considering the liberalst retailers beingwide, ___________ retailers continue to dominate among them. A. food B. apparel C. drug D. home-improvement E. Internet Difficulty Medium Type Comprehension23. (p. 11) Which of the following statements about the U.S. distribution organization is true? A. Many people think the United States is understored. B. Many U. S. retailers are puffy enough to have their own warehouses and have eliminated their need for wholesalers. C. When compared to retail density in Europe, the United States is very low. D. The sharp specialty store is the fastest growing fictional character of U. S. retailer. E. whole of the above statements about the U. S. distribution arranging are false. The U. S. is probably everyplacestored. The U. S. has the sterling(prenominal) retail density in the world. The medium-large store with over 20,000 square feet is the fastest growing type of U. S. etailer. Difficulty Medium Type Fact24. (p. 11) The Chinese distribution form A. has more people employed in distribution than the U. S. B. is characterized by small stores with a large wholesale industry C. is more efficient than the distribution system in the U. S. D. is more alike to U. S. distribution systems than Europes systems E. none of the above Difficulty Medium Type F act25. (p. 11) The fastest growing retailers in the United States sell through A. kiosks in malls and department stores B. large stores with over 20,000 square feet C. outlet stores D. small specialty stores E. he Internet Difficulty Medium Type Fact26. (p. 12) What factors have created differences in the distribution systems in the major markets? A. geography B. market size C. the high population density in Europe, China, and India D. different affectionate and political objectives E. all of the above Difficulty Easy Type Fact27. (p. 12) Which of the following is NOT TRUE when explaining what created differences within the distribution system of the major transnational markets? A. China and India have many large businesses to reduce unemployment. B. E. U. has many large retailers to achieve economy of scales. C. E. U. countries protect small retailers. D. China has many large retailers because it has an abundance of low-cost real estate of the realm available for building large stores. Difficulty Hard Type Fact28. (p. 12) Which of the following is NOT TRUE in describing distribution systems within major international markets? A. The U. S. distribution system has the greatest retail density and the greatest concentration of large retail firms. B. The Indian distribution systems are characterized by small stores operated by small firms and a large independent wholesale industry. C. In the Chinese distribution system, the merchandise often passes through several levels of distribution to make the daily deliveries to the small retailers efficient. D. Northern European retailing is uniform to efficient distribution system in the U. S. E. Southern European retailing is fragmented across all sectors. F. solely of the above is true. G. None of the above is true. Difficulty Medium Type Comprehension29. (p. 16) The contender between the like types of retailers is called A. intertype competition B. indirect competition C. intratype competition D. locomote merch andising E. vertical integration Difficulty Easy Type Definition30. (p. 16) CVS, Walgreens and Rite Aid are _________ competitors. A. indirect B. intratype C. intertype D. vertical E. horizontal All three category killers utilize the same format Difficulty Medium Type Application31. (p. 16) Macys, Belk, JCPenney and Nordstrom are ___________ competitors. A. channel B. vertical C. intertype D. intratype E. none of the above All three department stores use the same format Difficulty Medium Type Application32. (p. 16) Which of the following would be an intratype competitor for a Home term supermarket? A. Target B. Lowes C. Kroger D. Macys E. All of the above Lowes is a home-improvement center Difficulty Easy Type Application33. (p. 16) What is variety? A. multifariousness is the number of different items in a category. B. Variety is the number of different SKUs within a merchandise category. C. Variety is the number of different merchandise categories within a store. D. Variety is an new(prenominal)(prenominal) term for scrambled merchandising. E. Variety is the number of different facets of the business plan. Difficulty Medium Type Definition34. (p. 16) When Taco Bell opened its first restaurant, a hungry patron could order a taco, a burrito and a Coke. In those early years, Taco Bell did not offer much A. assortment B. product depth C. quantity D. value E. variety Difficulty Medium Type Application35. (p. 16) Dillards sells Godiva chocolates and coffees in their stores. By selling such products, Dillards is A. offering a good merchandise mix B. offering what the market demands C. offering tardily product assortments D. practicing scrambled merchandising E. practicing intratype competition Difficulty Medium Type Application36. (p. 16) The offering of merchandise not typically associated with the store type is called A. scrambled merchandising B. ntratype competition C. product diversification D. channel conflict E. vertical differentiation Difficulty Easy Type Definition37. (p. 16) While vacationing at the b to each one, Delia was delighted to cover that the local Walgreens carried milk, bread, apples and bananas. Her delight indicates she has never seen A. a indistinct product assortment B. an acceptable merchandising mix C. a retail mix D. scrambled merchandising E. this type of intratype competition Difficulty Medium Type Application38. (p. 16) Scrambled merchandising increases A. vertical integration B. intertype competition C. coaxal diversification D. orizontal integration E. intratype competition Difficulty Medium Type Comprehension39. (p. 16) Which of the following would be an example of intertype competition? A. a supermarket and a sportsmanlike flower stand B. a specialty store and a fast food restaurant C. a supercenter and a pharmacy D. a comfort station store and a department store E. all of the above Difficulty Easy Type Application40. (p. 16) The Lands End Web site, the JCPenney catalog, and the Sears area all in ____ ________ competition. A. channel B. horizontal C. indirect D. intertype E. intratype They all sell similar products, but use different formats to do so. Difficulty Hard Type Comprehension41. (p. 16) Increasing intertype competition has made it harder for retailers to direct their A. competition B. target market C. merchandise mix D. retail mix E. none of the above Difficulty Medium Type Comprehension42. (p. 16) The intensity of competition is greatest among retailers when A. price dominates the retail mix B. they are located near each an separate(prenominal) and offer similar retail offerings C. they are located near each other and target the same customer D. they are located far from each other and offer similar retail offerings E. hey are located far from each other and target the same customer Difficulty Hard Type Comprehension43. (p. 16) Since convenience of berth is important in store choice, a stores proximity to competitors is a critical factor in identifying A. competit ion B. ethical standards C. real estate negotiations D. the target market E. which merchandise to scramble Difficulty Medium Type Comprehension44. (p. 18) Once a retailer understands its environment, it needs to develop and implement a A. viable customer base B. advertising plan C. retail dodge D. competitive system E. functional strategy The retail strategy is unquestionable after information is gathered in a situation analysis. Although similar in theory to a business plan, it is specific to the retailing industry. Difficulty Easy Type Application45. (p. 18) The retail strategy helps a retailer to identify the following EXCEPT A. The target market toward which the retailer will direct its efforts. B. The nature of the merchandise and services the retailer will offer to fill up the needs of the target market. C. How the retailer will build a semipermanent advantage over its competitors. D. Break-even guide for making profits E. All of the above Difficulty Easy Type Application4 6. (p. 18) When developing the _________________ for his new barber shop, Theo heady to obtain a long-term competitive advantage over other salons by offering longer hours, better prices, a well trained staff and half-price perm day every Wednesday to attract customers. A. selling concept B. business cycle C. retail strategy D. focal stopover orientation E. marketing concept A retail strategy statement identifies the target market, the merchandise and services, and how the retailer will build a long-term advantage over its competitors. All three of these elements are present in the question. Difficulty Medium Type Application47. (p. 18) As the owner of a store specializing in mens suits, Isabella can use a retail strategy statement to identify all of the following EXCEPT A. the advertising adjure developed to sell last seasons merchandise B. the shops target market C. how the store will build a competitive advantage over mens Warehouse D. what services the shop will offer its c ustomers E. what types of suits the store will stock A retail strategy has to do with planning for the future and not focusing on a short-term problem. Difficulty Hard Type Application48. (p. 0) Which of the following strategies has JCPenney changed to compete effectively with the competition in the recent? A. JCPenney alter merchandise concern. B. JCPenney is building new stores off the mall. C. JCPenney is designing stores with alter checkout. D. JCPenney this instant ships merchandise through distribution centers. E. JCPenney is upgrading its merchandise offering by adding Frances cosmetics Sephora. F. All of the above Difficulty Medium Type Comprehension49. (p. 21) To implement a retail strategy, a retailer must develop a _____ that satisfies the needs of its target market better than its competitors. A. production orientation B. horizontal integration C. sales orientation. D. retail mix. E. situation analysis The retail mix is the combination of factors that satisfies cus tomers needs. The others are not used for this purpose. Difficulty Easy Type Comprehension50. (p. 21) Once a well-articulated retail strategy has been developed, the neighboring step is to A. override the cut back mechanism B. evaluate the results of the strategy C. forecast future environmental trends D. put up that environmental conditions have not changed E. implement the strategy Once the strategy is developed, the next logical step is implementation.Nothing would get accomplished if a retailer repeatedly went back to step 1 as in Alternatives C and D. The final examination stage in the process is the evaluation of the strategy. Overriding the control mechanism would not be a good idea in any case. Difficulty Hard Type Comprehension51. (p. 21) The combination of factors retailers use to adjoin customer needs and influence their purchase decisions is called the firms A. retailing conglomerate B. retail mix C. marketing strategy D. target group E. none of the above Difficulty Easy Type Definition52. (p. 21) Which of the following is part of a retailers retail mix? A. advertising B. displays C. trained salespeople D. services offered E. all of the above All of the choices are elements within the retail mix. Difficulty Easy Type Definition53. (p. 21) Which of the following is NOT an element in the retail mix? A. competitive answer B. merchandise assortments C. location D. customer service E. advertising and promotion The elements of the retail mix include customer service, store design and display, advertising and promotion, location, assortments and pricing. Difficulty Easy Type Definition54. (p. 21) Which of the following parts of the retail mix can be utilized by a small hardware store? A. bright lighting in the store, which makes it easier to read the messages B. a new ad campaign that uses both radio and newspaper media C. store location next door to a hospital D. attractive point-of-purchase displays at the ends of the stores aisles E. all of the a bove Store design, location, and advertising programs are all part of the retail mix. Difficulty Medium Type Application55. (p. 23) What are the principles governing the behavior of the individual and the company? A. moral philosophy B. retail strategy C. training guidelines D. company culture E. civil Rights Act of 1964 Difficulty Easy Type Definition56. (p. 23) Belinda is a swimwear buyer for a major department store. She will allow vendors to purchase her lunch at the local coffee shop when they visit. One October, she dined with a new vendor to discuss a progressive line of mens swimwear that is popular in resorts throughout the Caribbean. Belindas goal was to assess the assortments for her company in order to see if the product was a good fit for the company brand. During lunch, the vendor invited Belinda for an all-expense paying(a) weekend trip to Jamaica to see the popularity of the merchandise. His goal was to enable her to make a more educated decision when buying. Beli nda hesitated to accept because of A. personal and professional ethics B. the scheduling of the buy for the spring season C. the price of the exclusive merchandise would not match the income level of her target market D. the manufacturer would be unable to develop the line in time for spring E. her inability as a buyer to alter the visual merchandising for the store Difficulty Medium Type Application Essay Questions57. (p. 7) What is the retailers role in a supply chain? The retailers role in the distribution channel is to link manufacturers with onsumers by directing their efforts to satisfying the needs of the ultimate consumers. Difficulty Medium58. (p. 8) List the four functions performed by retailers. The four functions performed by retailers are (1) providing an assortment of products and services, (2) breaking bulk, (3) holding inventory, and (4) providing services. Difficulty Easy59. (p. 8) With manufacturers legally able to sell direct from the factories, wherefore should retailers be? In the retailing distribution channel, there are occasions when manufacturers sell directly to the ultimate consumer. While occasionally doing so, manufacturers in the first place exist to manufacture products to satisfy the needs of a wholesaler or retailer. Retailers exist because they direct their efforts and specialize in satisfying only the customers needs. Retailers exist because they increase the value consumers gather. Difficulty Medium60. (p. 16) Distinguish between intratype competition and intertype competition. confide an example of each. Intratype competition refers to the competition between retailers with the same format. An example would be the competition between Publix and BiLo for sale of fresh salmon. Intertype competition refers to retailers that sell similar merchandise using different formats. An example would be the sale of Revlon Color-Stay lip rouge between CVS and Target. Difficulty Easy61. (p. 16) Why would a Walgreens add novelty gifts , fresh bread, pre-wrapped sandwiches and milk to its product mix? Walgreens is engaging in scrambled merchandising. They have added these products and therefore, appeal more to a broader group of customers, while providing one-stop shopping for our time-starved society. Difficulty Medium62. (p. 16) A chef wants to open an Italian restaurant in the suburbs of a large city. How should she identify the competition? This question can have a variety of responses, but she could first look at the obvious and identify other Italian restaurants near her location. Is her location the best? She should consider frozen Italian entrees at nearby grocery stores. She should also consider the prices of the entrees she offers and compare them to the prices of other types of restaurants. Difficulty Medium63. (p. 17) Why do retailers consider customers important when developing a retail strategy? Retailers need to understand customers and how they are changing so that they can better satisfy their nee ds. Retailers need to know and understand why customers shop, how they select stores and how they select from that stores merchandise. Difficulty Medium64. (p. 18) What are the three things identified by a retail strategy statement? (1) The target market toward which the retailer will direct its efforts, (2) the nature of the merchandise and services the retailer will offer to satisfy the needs of the target market, and (3) how the retailer will build a long-term advantage over its competitors. Difficulty Medium65. (p. 18) Why is location strategy important for both consumers and for competitive reasons? 1) Location is typically the approximately important characteristic consumers consider when selecting a store. (2) A good location creates a long-term advantage over the competition. Difficulty Medium66. (p. 19) The success of discount rate stores poses a growing threat for JCPenney. To compete effectively with these retailers, the company instituted some radical changes. Discuss four changes the company made and how JCPenney expects the changes to better satisfy its target market. (1) JCPenney is reducing its distribution cost by shipping merchandise through its distribution centers rather than using direct delivery from vendors to stores. 2) JCPenney centralized merchandise management. Rather than having sore managers make merchandise decisions, merchandise decisions are made by JCPenney buyers in the corporate headquarters to save costs and respond quicker. (3) To increase customer convenience, JCPenney is building new stores off the mall. (4) To increase convenience, the company is also installing centralized checkout counters in each area of the store. Difficulty Medium Fill in the Blank Questions67. (p. 7) rent a tuxedo, the purchase of a DVD on Amazon. om, buying a Ronco Veg-O-Matic after watching an infomercial, and getting a facial are all examples of ________ activitiesthe sale of goods and services to the ultimate consumer. retailing Difficulty E asy68. (p. 7) A _____ is a business that sells products and services to ultimate consumers. retailer Difficulty Easy69. (p. 7) Retailers are the final business in a distribution channel that link __________ to consumers. manufacturers Difficulty Easy70. (p. 7) A _____________ is a set of businesses that move products from the point of production to the point of sale to the ultimate consumer. distribution channel Difficulty Easy71. (p. 7) When a retailer like L. L. Bean designs merchandise as well as sells the merchandise, _________ is occurring. vertical integration Difficulty Medium72. (p. 8) By providing assortments, breaking bulk, holding inventory, and providing services, retailers increase the ___________ consumers receive from their products and services. value Difficulty Medium73. (p. 9) _______________ 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. C orporate social province Difficulty Easy74. (p. 6) When Austin saw pastries and coffee at his local bookstore, he knew it was an example of __________, which is the juxtaposition of unrelated merchandise in the store. scrambled merchandise Difficulty Medium75. (p. 16) Scrambled merchandising increases _______, which occurs between retailers that sell similar merchandise using different formats, such as specialty and discount stores. intertype competition Difficulty Medium76. (p. 19) The philosophy, strategies, programs and systems that focus on identifying and building loyalty with a retailers roughly valued customers are called _______________. customer relationship management Difficulty Medium77. (p. 23) _________ are the principles governing the behavior of individuals and companies. Ethics Difficulty Easy Short outcome Questions78. (p. 8) Best Buy purchases many of the CDs, Playstation 2 games, DVDs and DVD players by the truckload so sells them in smaller quantities to its stores where consumers are allowed to buy them one at a time. What business function is Best Buy performing? breaking bulk Difficulty Medium79. (p. 8) Costco buys directly from manufacturers. They have merchandise shipped to their warehouses for storage, and then distribute the merchandise to their stores. What term is used to describe this type of activity? vertical integration Difficulty Medium80. (p. 14) Which retailer had its humble beginnings in rural Arkansas and now is the largest retailer in the world? Wal-Mart Difficulty Easy81. (p. 15) What is the first step in the retail management decision process? getting an understanding of the world of retailing Difficulty Medium82. (p. 16) When is the intensity of competition between retail stores the greatest? when they are involved in intratype competition Difficulty Medium83. (p. 16) What type of merchandising increases intertype competition? crambled merchandising Difficulty Medium84. (p. 18) The Aviary is a pet shop that focuses on birds and their accoutrements for bird lovers. The shop carries cages, perches, toys and even gourmet seed and dried fruits. It sponsors a bird club where members can bring their pets to share with other bird lovers. The store provides an inexpensive veterinary service. It even has a 3-month control when you purchase a bird. The Aviary has created loyalty from its customers and continuously attracts new ones because of the services offered. What does this describe? It describes the stores retailing strategy. The paragraph describes the target market, the merchandise and services and how it maintains a strategic advantage over competitors. Difficulty Hard85. (p. 19) Why do retailers use point of sale (POS) terminals to read Universal Product Codes (UPC) and electronic data interchange (EDI) to send sales and inventory information from computer to computer? These technologies allow retailers to have a better idea of what is selling and a way to quickly communicate that informat ion to vendors so that replenishment can quickly occur. Additionally it gives the retailer a competitive advantage over retailers that do not work with current supply chain management systems. Difficulty Hard86. (p. 23) When making the strategic and tactical decisions managers need to consider the make of their decisions on the profitability of their firms and the satisfaction of their customers. What other implications must managers consider as a result of their decisions? ethical and legal implications Difficulty Hard