Question 1

Assortment is often referred to as the ____________.

Accepted Answer

Assortment is the number of different items offered in a merchandise category,known as depth of merchandise.

Question 2

The _____________ focuses on reducing the carbon footprint caused by the transportation of food throughout the world.

Accepted Answer

As many Americans want to purchase more locally grown and produced food,the lacavore movement has been trending.

Question 3

Whereas conventional supermarkets carry about 30,000 SKUs,limited assortment supermarkets or extreme value food retailers only stock 2000 SKUs.Which of the following is NOT the advantage of stocking lesser SKUs?

Accepted Answer

Because more inventory turnover with smaller SKUs requires more frequent inventory replenishments,transportation costs associated with shipments are not necessarily lowered.

Question 4

Which of the following is NOT TRUE in describing retailers who offer a deep,and broad assortment?

Accepted Answer

Discounters and warehouse clubs offer a greater variety of merchandise instead of greater assortment (depth of merchandise).

Question 5

Stocking a deep and broad assortment is appealing to customers,but costly for retailers.What option does a small specialty store owner have to offset costs,and make a profit?

Accepted Answer

Often specialty stores have a unique and specialized product along with knowledgeable staff.For these benefits,customers are sometimes willing to pay a little more.

Question 6

Office Depot offers customers a huge selection of office supply merchandise.As a result,inventory investment _____________.

Accepted Answer

Category specialist stores such as Office Depot have gained success partly because they carry a wide range of products in the category,but also have ample stock,so stock outages are rare.Being in stock of the product is a form of customer service,so retailers need to carry back up stock for each SKU to ensure they will be in stock of products when the customer comes to purchase their merchandise.

Question 7

Angelo manages a local convenience store that sells gasoline.When gas prices are high,his sales increase,but gas margins are low.So,depending upon gas sales for the success of the business can be a problem for him.What should Angelo do?

Accepted Answer

Lowering gas prices will just erode Angelo's profits that much more.Customers are time-pressured today and will often combine their shopping by picking up products at a convenience store when filling up with gasoline.Therefore adding fresh healthy foods can capture some customers.Also adding convenient services such as postal or banking services gives the customers another reason to patronize the convenience store and hopefully while there,will also fill up with gas.

Question 8

Which of the following statements about warehouse clubs is TRUE?

Accepted Answer

They maintain low inventory holding costs because they carry a limited assortment of fast-moving items.

Question 9

A retailer that carries a broad variety and deep assortment,offers customer services,and is organized into separate departments for displaying merchandise is called a __.

Accepted Answer

Off-price retailers have an inconsistent assortment and a shallow assortment;discount stores have a broad variety,yet they offer a shallower assortment and little customer service;convenience stores have a broad variety with a very shallow assortment;specialty stores carry a narrow variety.

Question 10

How can supermarkets differentiate themselves from other food retailing formats?

Accepted Answer

There are many different ways that supermarkets are differentiating themselves from other food retailing formats.With discount stores entering the food market,supermarkets must differentiate themselves with emphasizing fresh produce,meats and bakery items,targeting niche markets such as the health conscious and ethnics consumers;providing a value product through their own store brand or private-label merchandise;and overall providing a more pleasing shopping experience.

Question 11

The outer walls of a supermarket that stocks fresh merchandise such as dairy,bakery,meat,produce,etc.is referred to as the ________.

Accepted Answer

The power perimeter that sells fresh merchandise is located on the outer walls of the store.Not only are they profitable,but they also encourage customers to go through the store to reach these outer walls.

Question 12

Warehouse clubs:

Accepted Answer

Warehouse clubs often have limited and varied assortments with little attention to the atmosphere of the store or the shopping experience.

Question 13

_________________ offer an inconsistent assortment of brand-name,fashion-oriented soft goods at low prices.

Accepted Answer

Because off-price retailers frequently procure their merchandise from over runs,product that is not selling at stores,etc. ,the merchandise is unpredictable and inconsistent.

Question 14

What is the challenge big box stores face,while developing locations in Europe and Japan?

Accepted Answer

Supermarket and large format stores have a difficult time finding land in the European and Japanese markets.There are also additional operating costs,restrictions on how big the building can be and a culture that is not receptive to big box retailing.

Question 15

Purchasing from factories that pay workers a living wage (more than the minimum wage)and offer other benefits to the employees is called __________.

Accepted Answer

Fair trade advocates the payment of a higher price to producers as well as to meet social and environmental standards.It focuses in particular on exports from developing countries.

Question 16

Building on their strength,supermarkets are offering fresh meal solutions for _________________ consumers.

Accepted Answer

Supermarkets have found a niche in competing with discount store supermarkets in offering healthy fresh meal solutions of restaurant quality to busy time-starved consumers who wish to have meals at home rather than to go to a restaurant.

Question 17

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 _________.

Accepted Answer

The depth of merchandise refers to the different items offered in a merchandise category."Ties" would be the category with many different colors and styles,giving great depth for the customer.

Question 18

Which of the following is the biggest threat to convenience stores?

Accepted Answer

Supermarkets are trying to capitalize on customers already in their parking lots by having gas pumps.

Question 19

What type of store is Kohl's considered?

Accepted Answer

Kohl's had a wide variety with mid-deep depth assortment,which best describes a department store.

Question 20

Why do category specialists call themselves "category killers"?

Accepted Answer

Category killers run their businesses faster,better,cheaper than their competitors and therefore usually force their competitors out of business.Category killers usually have lower prices and hire employees that are experts in the area or are passionate about the product and share this enthusiastically with their customers.

Quiz 2: Types of Retailers