Question 1

Why do stores locate in saturated trade areas?
A)to decrease competition
B)to create retailer cooperatives
C)to standardize the service mix
D)to access high customer traffic
E)to take advantage of tax breaks

Accepted Answer

Stores locate in saturated trade areas to access high customer traffic, which can lead to increased sales and visibility.

Question 2

During the Civil War,citizens set up their wagons full of merchandise on the edge of army camps and sold the soldiers items such as stationery,shaving mirrors,and tobacco that the U.S.government did not supply in the soldier's rations.These citizens were early .
A)indirect marketers
B)retailers
C)experiential owners
D)disintermediaries
E)demarketers

Accepted Answer

These citizens were early retailers because they sold goods directly to consumers (the soldiers) at army camps.

Question 3

e- commerce is the online exchange between companies and individual consumers.
A)B2C
B)B2B
C)P2P
D)C2C
E)C2B

Accepted Answer

B2C (Business to Consumer) refers to the online exchange between companies and individual consumers.

Question 4

Store location planners conducting a site evaluation would consider all of the following EXCEPT which one?
A)visibility from the street
B)traffic flow
C)the impact of color on customer behavior
D)local zoning laws
E)ease of delivery access

Accepted Answer

Store location planners typically focus on logistical and regulatory factors such as visibility, traffic flow, zoning laws, and delivery access, rather than psychological factors like the impact of color on customer behavior.

Question 5

Which of the following statements about the services provided by retailers is true?
A)Factory outlet stores are typically full- service retailers.
B)Convenience stores are unlikely to be full- service retailers.
C)Wal- Mart,Target,and Kohls are all examples of self- service retailers.
D)Discount stores are full- service retailers.
E)Only a few stores are actually classified as full- service retailers.

Accepted Answer

Convenience stores typically offer limited services, focusing on quick and easy access to products rather than full-service offerings.

Question 6

Costco's surprise offerings of seconds,overstocks,and closeouts-occasionally including diamonds -is an example of how a retailer can differentiate itself through its .
A)merchandise mix
B)store atmosphere
C)destination retailing
D)services mix
E)level of service

Accepted Answer

Costco differentiates itself by offering a unique merchandise mix that includes unexpected items like diamonds, which attracts customers looking for special deals and variety.

Question 7

operate in bare- bones facilities and offer few frills.Customers pay annual membership fees and are able to purchase goods at deep discounts.
A)General discount stores
B)Factory outlet stores
C)Warehouse clubs
D)Hypermarkets
E)Department stores

Accepted Answer

Warehouse clubs operate in bare-bones facilities, offer few frills, and require customers to pay membership fees to access goods at discounted prices.

Question 8

A _ is the total set of all products offered for sale by a retailer,including all product lines sold to all consumer groups.
A)merchandise mix
B)merchandise depth
C)merchandise assortment
D)merchandise program
E)merchandise breadth

Accepted Answer

The answer of A _ is the total set of...

Question 9

Which of the following statements about shopping centers is true?
A)A shopping center is a group of commercial establishments managed as multiple properties.
B)The smallest form of shopping center is called a strip center.
C)Shopping centers are not sources of entertainment aside from the shopping experience.
D)The largest form of shopping center is called a lifestyle center.
E)Rents for stores in shopping centers tend to be low.

Accepted Answer

The smallest form of shopping center is called a strip center, which typically includes a small row of stores with parking in front.

Question 10

Avon is successful at giving customers alternatives to traditional store outlets.Avon uses ,which does NOT require a customer to visit a store.
A)mass retailing
B)broad geographic exchange
C)social shopping
D)locational merchandising
E)nonstore retailing

Accepted Answer

Nonstore retailing refers to selling goods and services outside the confines of a retail facility, which aligns with Avon's approach of providing alternatives to traditional store outlets.

Question 11

Which of the following is the term for how the marketplace perceives a retailer relative to the competition?
A)store image
B)store atmosphere
C)merchandise assortment
D)store layout
E)market segmentation

Accepted Answer

Store image refers to the overall perception and impression that consumers have of a retailer compared to its competitors, encompassing factors like reputation, branding, and customer experience.

Question 12

Which of the following best explains why within a given two- mile radius you frequently can find almost any fast- food franchise you can name?
A)the retail life cycle
B)the wheel- of- retailing hypothesis
C)the equity principle of retailing
D)the 80/20 rule of retailing
E)the saturated trade area strategy

Accepted Answer

The saturated trade area strategy explains why multiple fast-food franchises cluster within a small area to maximize market coverage and capture as many customers as possible.

Question 13

Five years ago,the Paradise Surf Shop was the only surf- gear store catering to women.It carried everything the serious female surfer needed to ride the waves.In terms of its merchandise assortment,it had a _ assortment.
A)shallow and narrow
B)shallow and broad
C)broad and deep
D)shallow and deep
E)narrow and deep

Accepted Answer

The Paradise Surf Shop had a narrow and deep assortment because it specialized in surf gear for women (narrow focus) and carried everything needed for serious female surfers (deep selection within that category).

Question 14

Which of the following is NOT true about warehouse clubs?
A)They are a form of discount store.
B)They often charge their customers with a modest annual membership fee.
C)They have not followed the pattern set forth by the wheel- of- retailing hypothesis.
D)They carry a broad assortment of food and nonfood items in bulk.
E)They often display merchandise in its original boxes.

Accepted Answer

Warehouse clubs have followed the wheel-of-retailing hypothesis by starting with low prices and minimal services and gradually adding more services and increasing prices over time.

Question 15

Shoplifting,sweethearting,and retail borrowing are all problems that contribute to .
A)shrinkage
B)pop- up retailing
C)off- price retailing
D)pyramid schemes
E)understored trade areas

Accepted Answer

Shrinkage refers to the loss of inventory in retail, often due to theft, fraud, or errors, which includes shoplifting, sweethearting, and retail borrowing.

Question 16

Retailers would be LEAST likely to consider which of the following in order to meet the needs of working consumers who have little time to shop?
A)using "social shopping" systems
B)offering related services at the retail location
C)expanding their operating hours
D)adding drive- up windows
E)providing shopping consultants for regular customers

Accepted Answer

"Social shopping" systems are more about online interactions and recommendations rather than directly addressing the time constraints of working consumers who need quick and efficient shopping solutions.

Question 17

Which of the following is the retail strategy that involves a store planning to open and then close down within a short period of time?
A)a pyramid scheme
B)shrinkage
C)activity retailing
D)multilevel networking
E)pop- up retailing

Accepted Answer

Pop-up retailing involves opening a temporary store for a short period to take advantage of a trend or seasonal demand.

Question 18

Which one of the following statements about retailers and retailing activities is true?
A)Most retailers are multi- million dollar operations.
B)About half of all U.S.workers are employed by retailers.
C)Retailers sell only to businesses.
D)Retailers create form utility.
E)Retailers are members of channels of distribution.

Accepted Answer

Retailers are indeed members of channels of distribution, as they play a crucial role in delivering goods from producers to consumers.

Question 19

A is a group of commercial establishments owned and managed as a single property.
A)wholesaler
B)hypermarket
C)franchise
D)business district
E)shopping center

Accepted Answer

A shopping center is a group of commercial establishments owned and managed as a single property.

Question 20

,such as Sears and Kohl's,provide some sales assistance and offer credit.
A)Self- service retailers
B)Full- service retailers
C)Off- price retailers
D)Specialty retailers
E)Limited- service retailers

Accepted Answer

Limited-service retailers provide some sales assistance and offer credit, which matches the description given for stores like Sears and Kohl's.

Quiz 16: Retailing: Bricks and Clicks

Why do stores locate in saturated trade areas?

During the Civil War,citizens set up their wagons full of merchandise on the edge of army camps and sold the soldiers items such as stationery,shaving mirrors,and tobacco that the U.S.government did not supply in the soldier's rations.These citizens were early .

e- commerce is the online exchange between companies and individual consumers.

Store location planners conducting a site evaluation would consider all of the following EXCEPT which one?

Which of the following statements about the services provided by retailers is true?

Costco's surprise offerings of seconds,overstocks,and closeouts-occasionally including diamonds -is an example of how a retailer can differentiate itself through its .

operate in bare- bones facilities and offer few frills.Customers pay annual membership fees and are able to purchase goods at deep discounts.

A _ is the total set of all products offered for sale by a retailer,including all product lines sold to all consumer groups.

Which of the following statements about shopping centers is true?

Avon is successful at giving customers alternatives to traditional store outlets.Avon uses ,which does NOT require a customer to visit a store.

Which of the following is the term for how the marketplace perceives a retailer relative to the competition?

Which of the following best explains why within a given two- mile radius you frequently can find almost any fast- food franchise you can name?

Five years ago,the Paradise Surf Shop was the only surf- gear store catering to women.It carried everything the serious female surfer needed to ride the waves.In terms of its merchandise assortment,it had a _ assortment.

Which of the following is NOT true about warehouse clubs?

Shoplifting,sweethearting,and retail borrowing are all problems that contribute to .

Retailers would be LEAST likely to consider which of the following in order to meet the needs of working consumers who have little time to shop?

Which of the following is the retail strategy that involves a store planning to open and then close down within a short period of time?

Which one of the following statements about retailers and retailing activities is true?

A is a group of commercial establishments owned and managed as a single property.

,such as Sears and Kohl's,provide some sales assistance and offer credit.