Quiz 12: Retailing

Wholesalers provide goods and services to other businesses as well as to consumers.

Over 95 percent of retailers operate more than one store.

Retail is the number-one private-sector employment category in the United States.

Retail store managers typically evaluate vendors, negotiate prices, order merchandise, and arrange delivery schedules.

Since retailer cooperatives are wholesale-sponsored, there tends to be much greater consistency across stores in terms of merchandising and promotions.

An assortment includes both the breadth of product categories and the depth of product lines offered within each category.

Wholesale clubs are the same thing as membership warehouses.

Because they do not have aisles of unrelated products, off-price retailers can also offer a more intimate and intuitive shopping experience.

Dollar discount stores and closeout chains are both types of off-price retailers.

According to Forrester Research, almost half of the goods and services that consumers ultimately purchased in a store were actually influenced by online activity.

A disadvantage of catalog marketing is the difficulty in targeting the right customers and tracking their activity.

The tendency for consumers to watch TV while also swiping and tapping on a smartphone is termed gamification.

A planned shopping center is designed to be operated as a unit, with tenants selected to limit direct competition.

It is not necessary for a retailer to work on building and maintaining a positive store image-it usually happens on its own.

A store's lighting, music, and displays are all part of its atmospherics.

When arranging merchandise for sale, the optimal location for a retailer's most profitable products are at the end of an aisle, at eye-level on a shelf, or at the check-out counter.

Frequent users of category management are supermarkets, drugstores, hardware stores and discount retailers.

The term retail apocalypse refers to the massive increase in the use of technology-artificial intelligence, augmented reality, etc.-that has flooded retail applications.

Big data analytics has yet to make a stronghold in the retail industry.

Being able to shop online at any time of the day through the use of a computer or a mobile phone is a phenomenon called experiential retail. A)supplier. B)wholesaler. C)producer. D)distributor. E)retailer.

All of the following situations involve retailing except A)buying a set of golf clubs from a sporting goods store. B)buying paper products from a wholesale club like Costco. C)transporting newly manufactured cars to a dealership. D)transporting newly manufactured cars to a dealership. E)dining out at the new restaurant in town.

Which statement is accurate about retailing as an economic activity? A)Retailing is an important activity that affects nearly everyone, either directly or indirectly. B)Historically, retailing accounted for a large part of the United States economy, but recent figures indicate that retailing's impact has waned. C)Retailing's biggest impact can be seen in the amount of spending on clothing and food service items. D)Retailing's effect on the economy has lessened due to the increase in online shopping. E)The vast majority of retailers are very large organizations rather than small (one store)owners.

On the whole, the vast majority of retailers A)are chain organizations that have stores in at least three locations. B)are small businesses that employ fewer than 20 employees. C)employ 50 or more people and have on average 10 locations. D)are very large organizations, like Walmart, that have many outlets. E)are now found on the Internet.

All of the following have contributed to the changes in modern retailing except A)the growth in global retail opportunities. B)the rise of Internet shopping outlets. C)the development of business-to-consumer commerce. D)industry consolidation and flattening sales growth. E)the conversion of "mom and pop" shops to chain organizations.

The number-one private-sector employment category in the United States is in which industry? A)manufacturing B)banking and investments C)food service D)retail E)entertainment

What is a misconception about working in retail? A)Retail is the number-one private-sector employment category in the United States. B)For the most part, working in retail involves stocking shelves or working a cash register. C)Retail offers plenty of room for career development and growth. D)Experience gained in retail is valued by employers in other industries. E)Because retailers tend to hire internally, there is often greater opportunity for rapid advancement.

Tasks such as hiring, scheduling, and motivating employees is the responsibility of retail A)department managers. B)merchandisers. C)supply chain managers. D)sales staff. E)store managers.

What role in retailing involves the effective storage, distribution, and tracking of store merchandise? A)supply chain/logistics manager B)retail store manager C)retail buyer D)visual merchandiser E)retail department manager

What role in retailing involves evaluating vendors, negotiating prices, ordering merchandise and arranging delivery schedules? A)supply chain/logistics manager B)merchandiser C)retail buyer D)retail store manager E)retail department manager

In a retail setting, a visual merchandiser has the responsibility for A)negotiating prices and ordering merchandise to be sold in the store. B)developing layout plans and displays in order to grab shoppers' attention. C)researching and selecting the most appropriate store location. D)going to merchandise marts, looking at the offerings, and selecting what lines the store will carry. E)working with retail buyers to come up with new merchandise lines that are visually appealing to customers.

Marketers commonly classify retailers on all of the following dimensions except A)level of service. B)merchandise pricing. C)ownership/organization. D)size of establishment. E)breadth and depth of assortment.

A retailer wanting to incorporate self-service into its stores may choose to A)publish its advertising circular earlier. B)incorporate customer-operated check-out lanes. C)have more product available. D)hire a professional sales staff. E)have more fitting rooms.

Evelyn's Evening Wear is a dress shop that caters to dresses for special occasions such as school proms, holiday parties, and weddings. Evelynhas a staff of trained employees that help in the selection of dresses regarding style, fit, and appropriateness for the occasion. The store also offers alteration services and free delivery. Evelyn's Evening Wear is an example of a A)limited service store. B)department store. C)self-service store. D)full-service store. E)franchise.

The majority of retail operations are A)independent retailers. B)conglomerates. C)retailer cooperatives. D)corporate chains. E)consumer cooperatives.

What is a corporate chain? A)businesses in which a supplier grants a dealer the right to sell products for a fee B)an independent retail operation that employs 50 or more people C)two or more retail outlets that are commonly owned and controlled D)wholesale sponsored groups of independent retailers that band together E)a group of independent retailers that band together to set up a jointly owned, central wholesale operation

A group of independent retailers that band together to set up a jointly owned, central wholesale operation that also conducts joint merchandising and promotion is referred to as a A)franchise. B)consumer cooperative. C)retailer cooperative. D)voluntary chain. E)corporate chain.

In a(n)________ franchise arrangement, the franchisee gains preferred exclusive access to the products manufactured by the franchisor. A)product distribution B)exclusive C)standard D)supply-oriented E)business format

The number of distinct goods or service product lines that a retailer carries is referred to as A)depth of assortment. B)the manufacturing mix. C)width of assortment. D)breadth of assortment. E)the retailing mix.

A local craft brewer offers many varieties of beer. You can find robust stout beer, pale ales, and beer flavored with everything from coffee to citrus fruit. This is an example of the brewer's A)variety of assortment. B)length of assortment. C)breadth of assortment. D)width of assortment. E)depth of assortment.

A retailer that adds goods and services that may be unrelated to each other and to the firm's original business is engaged in A)deceptive merchandising. B)full-service merchandising. C)scrambled merchandising. D)voluntary merchandising.

How is the distribution of retailers along a price continuum shown? A)The distribution is shown as a downward sloping curve. B)The distribution is shown as an upward sloping curve. C)The distribution is shown as following a bell curve. D)The distribution is shown as a straight line. E)The distribution is shown with many peaks and valleys.

In order to maintain high inventory turnover, discount stores choose A)self-service over full-service. B)breadth over depth. C)full-service over self-service. D)goods over services. E)depth over breadth.

Retail outlets such as Best Buy or Home Depot that are able to gain high market share within their chosen category, making it difficult for other types of retailers to profitably compete within that category. These types of stores are sometimes referred to as A)value outlets. B)high-margin retailers. C)specialty stores. D)department stores. E)category killers.

The most frequently visited retail category is A)supermarkets B)warehouse clubs. C)convenience stores. D)full-line discount stores. E)department stores.

A retailer that offers ultra-low prices, but requires customers to pay an annual fee for the privilege of shopping in the store is referred to as A)a warehouse club. B)a convenience store. C)an off-price retailer. D)an extreme-value retailer. E)a category killer.

________ stores are small, self-service retailers that aim to capture sales from people who are willing to pay higher prices in exchange for the ease of purchase these retailers offer. A)Specialty stores B)Extreme-value retailers C)Supercenters D)Factory outlets E)Convenience stores

"Fast fashion" is a term unique to which type of retailer? A)off-price retailers B)department stores C)specialty stores D)category killers E)discount stores

A type of purchasing behavior in which off-price retail stores negotiate especially low prices for certain categories of merchandise, such as end-of-season goods and closeouts is called A)opportunistic buying. B)negotiated buying. C)seasonal buying. D)strategic buying. E)rock-bottom buying.

Nordstrom and Macy's are examples of A)department stores. B)full-line discount stores. C)specialty discount stores. D)fast fashion stores. E)off-price retailers.

Carla owns a candy store called "Carla's confections." She just finalized an arrangement where she will operate one of her stores next to the floral department of a local grocery store. She will pay rent for the space and will be responsible for all aspects of her business. What is this type of arrangement called? A)omni-channel retailing B)a leased department C)scrambled merchandising D)an isolated store E)a retail cooperative

The two types of extreme value retailers are A)dollar discount stores and convenience stores. B)factory outlets and closeout chains. C)penny retailers and off-price retailers. D)off-price retailers and discount stores. E)dollar discount stores and closeout chains.

________ retailers primarily offer mechanical or human efforts, rather than merchandise to consumers. A)Specialty B)Private C)Personal D)Services E)Benefit

Which outlet is a type of nonstore retailing? A)online retailing B)warehouse clubs C)specialty stores D)services retailing E)factory outlets

Online retailing is also known as A)e-retailing. B)secondary retailing. C)omni-retailing. D)cyber-retailing. E)web-retailing.

Which statement is true regarding nonstore retailing? A)Online shopping has failed to expand due to poor performance of retailing websites. B)Online shopping does not provide the sensory elements that can be found with in-store shopping. C)There is little difference between shopping in stores and shopping online. D)Any retailer that offers goods and services can provide the same offering online. E)Online shopping provides the same entertainment experience that physical stores offer.

Perhaps the most famous online retailer in the world today, Amazon.com is guided by two principles: always putting the customer first and A)always thinking about what the company needs to do in the short-term. B)forgoing short-term financial gains to reinvest profits into its technology. C)not getting carried away by the latest fads and innovations. D)finding new ways to get the company's name in front of the consumer. E)streamlining its promotion tactics to be more effective.

Grouping many items together in a printed piece or an online store is referred to as A)scrambled merchandising. B)category management. C)fast fashion. D)mass merchandising. E)catalog marketing.

The most impersonal form of retailing is A)online retailing. B)automated vending. C)shop-at-home television networks. D)catalog marketing. E)direct selling.

Julienne works as an independent representative for a specialty food company. She holds "parties" in peoples' homes where she can offer food samples and talk about the food items she sells. What form of retailing does this represent? A)direct selling B)convenience retailing C)a retailing cooperative D)shop-at-home retailing E)opportunistic buying

The cost to start a direct retailing business is typically very low which has led to A)low turnover rates in this form of business. B)more people using this form of business as a primary source of income. C)the impression that this form of business is not worthwhile. D)high turnover rates in this form of business.

Retailers that make sure their supply chain, inventory, and sales systems are able to connect with one another are concerned with which aspect of retail marketing strategy? A)store image B)workforce management C)store location D)operational efficiency E)site selection

Which activity relates to attaining retailer operational efficiency? A)making sure point-of-sale systems capture customer and product data B)thinking of how to eliminate traffic congestion in and around the store C)determining whether to have a bricks-and-mortar store or an online store D)improving the retailer's brand communications across social media E)making the atmosphere of the store welcoming to customers

There are many factors to take into consideration when choosing a site to open a retail location. Which factor would be least important? A)distance to housing communities B)traffic congestion C)parking availability D)population characteristics E)number of employees needed

A freestanding retail outlet located on either a highway or major road is referred to as a(n) A)one-stop shop. B)freestanding store. C)planned store. D)solitary store. E)isolated store.

A(n)________ is a type of retail location where two or more stores are situated together or in close proximity and the overall mix of stores is not the result of prior long-range planning. A)unplanned business district B)variety shopping center C)isolated store combination D)main street center E)unplanned shopping center

Large regional shopping malls and neighborhood strip malls are examples of A)isolated shopping centers. B)unplanned shopping centers. C)planned shopping centers. D)unplanned business districts. E)planned business districts.

A unique feature of a planned shopping center is that it A)is located on either a highway or a major road. B)does not place retailers adjacent to one another. C)is not centrally owned or managed. D)has dedicated parking. E)is not the result of long-range planning.

A(n)________ shopping center is an upscale retail operation that also offers fine dining and entertainment options and is often located within affluent neighborhoods. A)exclusive B)lifestyle C)luxury D)high-end E)premium

________ refers to how consumers perceive a retailer. A)Atmospherics B)Store image C)Consumer confidence D)Operational efficiency E)Brand recognition

Sensory-based stimuli within a retailer's environment-the sights, sounds, smells, and other attributes-that project an image and draw customers to the store are referred to as A)imprints. B)assessments. C)aspects. D)impressions. E)atmospherics.

What is a retailer's goal in planning a store's layout with regard to traffic flows? A)limit browsing behavior B)optimize shopper convenience C)maximize shelf space D)eliminate free-flowing patterns E)eliminate gridiron traffic flows

Slotting allowances are used to A)encourage manufacturers to minimize packaging. B)entice customers to buy products in bulk quantities. C)ensure products are preferentially displayed by the retailer. D)encourage retailers to pay invoices on time. E)encourage more frequent delivery of products.

Roberto owns a retail store. He often receives payments from some of his manufacturers to ensure their products are placed in the best location in the store or on the store shelves. These payments are referred to as ________ allowances. A)shelf B)placement C)slotting D)product E)merchandise

The activities involved in acquiring particular goods and services and making them available at the places, times, prices, and quantities that enable a retailer to achieve its goals is referred to as A)merchandising. B)journey mapping. C)atmospherics. D)omnichannel retailing. E)retailing.

Category management is a merchandising technique that focuses on the performance of A)a product category. B)store atmospherics. C)a store's layout. D)individual brands. E)competing brands.

Randall notices that customers at his store prefer certain types of snack foods over others. In response to his customers' preferences, he allocates more shelf space to those types of snacks, and less shelf space to the snack items that are purchased less frequently. In this scenario, Randall is utilizing which of the following techniques? A)supply-driven merchandising B)cross-merchandising C)scrambled merchandising D)micro-merchandising E)demand-driven merchandising

Isabella has a boutique where she sells women's fashion clothing. She recently added a line of jewelry and purses to her store offerings in the hope that customers will spend more overall. What technique is Isabella utilizing? A)specialty merchandising B)scrambled merchandising C)micro-merchandising D)cross-merchandising E)complementary merchandising

A retailer that operates a brick-and-mortar store but also sells merchandise on its website is practicing A)direct selling. B)omnichannel retailing. C)micro-merchandising. D)cross-merchandising. E)secondary retailing.

In terms of creating a seamless shopping experience for omnichannel consumers, what has arguably made one of the most transformational impacts within retail in recent years? A)in-store self-serve kiosks B)in-store pickup technology C)customer returns without a receipt D)self-serve check-out lanes E)price-match guarantees

When retailers use the information gathered about their customers' behavior in order to predict consumer trends, forecast demand, or identify consumer interest in products, they do so by applying A)journey mapping. B)category management. C)the marketing mix. D)big data analytics. E)merchandising techniques.

Journey mapping is a technique that helps companies identify A)points in the manufacturing process where delays are occurring. B)customers' movements on social media. C)points in the journey of a product's delivery that take too long or are unnecessary. D)points in their customers' journey where the buying process breaks down. E)parts of the promotional process that most resonate with consumers.

Taking a yoga class at a Lululemon store or a cooking class at Whole Foods is an example of A)journey mapping. B)cross-merchandising. C)scrambled merchandising. D)experiential retail. E)planned shopping behavior.

A location-based technology that uses small sensors to send messages to smartphone users who enter a nearby, defined geographic area is called A)journey mapping. B)gamification. C)geofencing. D)experiential retail. E)augmented reality.

A retail store places sensors throughout the store that have the ability to link to customers' phones. Once linked, customers receive product information, bar code scanning and other helpful features. This describes A)journey mapping. B)gamification. C)geofencing. D)experiential retail. E)augmented reality.

An online marketing technique that encourages customer engagement with a product or service through the use of typical game playing elements is called A)journey mapping. B)gamification. C)geofencing. D)experiential retail. E)augmented reality.

A paint manufacturer has an app that allows customers to narrow down color choices for paint. The customer can upload a picture of a room in their home and then select paint colors that are then applied to the room's walls so the customer can see how the color will look. This is an example of A)journey mapping. B)gamification. C)geofencing. D)experiential retail. E)augmented reality.

An interactive, computer-generated experience that takes place within an immersive simulated environment, typically incorporating multisensory feedback is known as A)journey mapping. B)gamification. C)geofencing. D)virtual reality. E)augmented reality.

While watching television, you see a commercial for a new type of running shoe. You ask your smart speaker to search online for the shoe so you can find more information about it and how much it costs. This is a form of A)journey mapping. B)artificial intelligence. C)experiential retail. D)virtual reality. E)augmented reality.

Tarik and his friends like to visit Brady's, a local bar near campus that sells drinks for low prices. What type of retail store are Tarik and his friends going to? A)department store B)chain store C)service retailer D)specialty store E)off-price retailer

Miranda wants to start her own store in fashion, targeting a very narrow market segment. If this business carried a deep assortment of a specific type of clothing, which type of physical retail score would be most ideal for her business? A)department store B)factory outlet C)specialty store D)off-price retailer E)extreme value retailer

Nathan goes to PetSmart to buy a crate for his new puppy. PetSmart also offers the same crate online for a cheaper price. PetSmart's use of an online platform as well as a physical store is an example of what concept? A)cross merchandising B)micro-merchandising C)bricks and clicks D)experiential retailing E)scrambled merchandising

A manager is told to acquire a particular set of goods and make them available in a way that the retailer can achieve its goals. This is called A)licensing. B)retailing. C)merchandising. D)vending. E)leasing.

IGA, or Independent Grocers Alliance, is a group of independently owned grocery stores that band together to share resources and increase buying power. IGA is an example of a A)consumer cooperative. B)volunteer union. C)franchise. D)corporate chain. E)voluntary chain.

You and a close friend have decided to open a new retail store that specializes in selling fan apparel featuring the local university. According to your textbook, what is the most important factor that the two of you should consider before opening the store? A)how many athletic retail shops already exist B)what assortment of products you should sell C)how many university students you will hire D)where the store is located in your town E)how you will promote via social media

The local Coastal Tide store has a distinct image that draws customers to its store. Along with its lavish window displays and trendy music, the store is known for the smell of its candles burning throughout the store. Coastal Tide has placed a large emphasis on A)atmospherics. B)category management. C)micro-merchandising. D)experiential retailing. E)geofencing.

Which level of service offers retailers improved efficiency, while also allowing for enhanced customer convenience? A)limited service B)self-service C)moderate-service D)full-service E)employee service

________ encompasses all of the business activities involved in the sales of goods and services to the ultimate consumer for their personal, family, or household use.

The retail professional responsible for purchasing wholesale merchandise for retailers to sell in store or online is the ________.

Brandi works for a large department store chain. She collaborates with the store's buyers in designing store layouts that will highlight merchandise and grab shoppers' attention, in the hopes that it will increase sales. Brandi is a ________ merchandiser.

When it comes to level of service, it typically makes most sense for a retailers that sells a large percentage of low-margin products to use ________ service.

In most instances, the products that ________-service retailers offer are of a higher-perceived quality or possess added or more complex features than those in the standard offering in its class.

________ ________ are two or more retail outlets that are commonly owned and controlled.

A group of independent retailers that band together to set up a jointly owned, central wholesale operation that also conducts joint merchandising and promotion is a ________ ________.

The type of franchise arrangement that is less common but accounts for a larger percentage of franchise-based sales is a ________ ________ franchise arrangement.

Retailers that add goods and services that may be unrelated to each other and to the firm's original business are looking to increase their ________ of assortment.

A full-line discount store that combines a grocery store, pharmacy, and services is called a ________.

Barnes and Noble, because it can gain a high share of the bookstore market, is considered to be a category ________.

The most frequently visited type of retail store is the ________.

The retail trend that has been criticized on the grounds that it encourages a "throw-away" attitude that is ultimately harmful to the environment is ________ fashion.

In-store banks, photo studios, hair and nail salons, and coffee shops are all types of ________ departments-a section within a retail store that is rented to an outside party.

________ retailers primarily offer mechanical or human efforts, rather than merchandise, to consumers.

A limitation of ________ retailing is that it does not provide the sensory elements of shopping in a store.

One-click ordering, which allows customers to purchase with the single press of a button, was a retail innovation introduced by ________, a company founded by Jeff Bezos.

A retail sales technique in which many items are grouped together in a printed piece or an online store is referred to as ________ marketing.

Home shopping network, QVC has centered its retail strategy on the ________ ________, which is the tendency to watch TV while also swiping and tapping on a smartphone or tablet.

Tara went to a store to buy a new dress but the store did not have the dress she wanted in her size. So, Tara used the kiosk inside the store to order the dress in her size and have it shipped to her house for free. The in-store kiosk is an example of ________ ________.

Direct selling is also known as direct ________.

Low start-up costs and flexibility are two reasons ________ selling is attractive to its independent representatives.

Regarding store location, a(n)________ store has no adjacent retailers with which it shares traffic.

Blair likes shopping in her city's downtown area. It has many fashion stores, gift and specialty shops, and several restaurants where she can eat. This describes a(n)___________ business district.

Retail centers that feature upscale retail operations as well as fine dining and entertainment options and are located within affluent neighborhoods are referred to as ___________ shopping centers.

In order to succeed, a retailer must communicate a store ___________ that is clear, distinctive, and consistent.

Consumer views of a retailer's image are heavily grounded in the store's ___________ -the psychological feeling a person gets when visiting the retail store, catalog, vending machine, or website.

Retail ___________, which are the sensory-based stimuli within the retailer's environment, have been shown to contribute greatly to people's shopping enjoyment.

Payments made by manufacturers to retailers to ensure that products are preferentially displayed by the retailer are called ___________ allowances.

A retailer that operates a brick-and-mortar store but also sells its products through its website and catalogs is practicing ________ retailing.

By using ________ mapping, retailers are better able to design customer experiences that move the consumer from awareness and discovery to purchase, use, and advocacy of a good or service.

The use of GPS or RFID technology to create a virtual boundary around a particular location, which can trigger a response when a mobile device enters or leaves a certain area is known as ___________.

Through the use of ___________ reality, retailers can offer customers an interactive, computer-generated experience within an immersive simulated environment.

An area of computer science that emphasizes the creation of intelligent machines that work and react like humans is referred to as ___________ intelligence.

What is "level of service" and describe the varying service levels retailers may provide.

Explain the difference between product breadth and product depth.

Describe the difference between full line discount stores and specialty discount stores and provide examples of each.

What is opportunistic buying and what type of retailer would most likely use this method?

What are the limitations of online retailing?

Describe the three different location types available to a retailer.

What is "journey mapping" and how is it used by retailers?

Explain emerging retail technologies and how these technologies add value for customers?