Question 1

A typical discount store competes by carrying a limited line of high-turnover,high-margin goods.

Accepted Answer

Discount stores compete on the basis of low prices,high turnover,and high volume.The strategy in the example describes a convenience store.

Question 2

A retail establishment can be classified according to its ownership,level of service,product assortment,and price.

Accepted Answer

This statement is true. Retail establishments can be classified based on various factors such as ownership (independent, chain, franchise), level of service (self-service, full-service), product assortment (narrow, deep, broad, shallow), and price (discount, mid-range, luxury).

Question 3

A retailing establishment that sells a wide variety of shopping and specialty goods,including apparel,cosmetics,housewares,and electronics would be classified as a department store.

Accepted Answer

A department store typically sells a wide variety of shopping and specialty goods across multiple departments, including apparel, cosmetics, housewares, and electronics.

Question 4

Retailing can be defined as all activities directly related to the sale of goods and services to the ultimate consumer for personal,nonbusiness use.

Accepted Answer

This is the correct definition of retailing.

Question 5

The person who called Alisa last night and tried to sell her double-paned windows for her home was using inbound telemarketing.

Accepted Answer

Inbound telemarketing is used to take orders and provide customer service.Alisa experienced outbound telemarketing.

Question 6

Factory outlet stores are generally the same as warehouse clubs,except that a factory outlet store carries only the merchandise of the manufacturer that owns it.

Accepted Answer

Factory outlet stores are generally the same as off-price discount stores.

Question 7

Marketers who use nonstore retailing no longer have to worry about the "place" element of the four Ps.

Accepted Answer

Nonstore retailing refers to shopping without visiting a store; however,products must still be distributed to end users,whether by vending,in-home retailing,or direct marketing.

Question 8

Flash Foods is the name of a chain of small stores,which carry high-turnover products such as lip balm,milk,soda,beer,bread,and aspirin.Flash Foods stores are open all day every day and would best be classified as convenience stores.

Accepted Answer

The passage states that Flash Foods stores carry high-turnover products and are open all day every day, which are characteristics of convenience stores.

Question 9

Supermarkets are self-service retailers that specialize in food and food products although many now carry nonfood items as well.

Accepted Answer

Supermarkets are indeed self-service retailers that specialize in food and food products, and many have expanded to carry nonfood items as well.

Question 10

Off-price retailers differ from other discount stores in the merchandise they carry.While most other discounters offer a predictable assortment of merchandise,the styles and brands offered at off-price retailers change frequently because they buy only what is currently available at a good deal.

Accepted Answer

Off-price retailers differentiate themselves from other discount stores by carrying a constantly changing range of merchandise as they purchase only what is being offered at a good deal currently.

Question 11

Jennifer owns a greeting card store where she also sells women's purses,crocs for the whole family,jibbitz,cell phone skins,Sandy Lion stickers,Yankee candles,Godiva chocolates,Precious Memories figurines,beaded jewelry,and stuffed animals.Jennifer uses multibrand merchandising.

Accepted Answer

This would be an example of scrambled merchandising because it involves offering nontraditional goods.There is no such thing as a multibrand.

Question 12

Pick of the Litter has just purchased a sizable plot of land on which it will build a store building with a large parking lot.Across the street is a collection of specialty shops and a furniture store.Pick of the Litter will be part of a strip shopping center.

Accepted Answer

Because all the other stores are across the street,Pick of the Litter cannot be part of a strip center.It is a freestanding store.

Question 13

Specialty discount stores are often called category killers because they dominate the competition in their narrow merchandise segment.

Accepted Answer

Specialty discount stores are known for offering a wide variety of products in a particular category or segment. They are called "category killers" because they often dominate the competition in that specific merchandise segment.

Question 14

The two types of franchising are target market franchising and geographic franchising.

Accepted Answer

The two types of franchising are product and trade name franchising and business format franchising.

Question 15

A store's atmosphere is the overall impression conveyed by a store's physical layout,decor,and surroundings.

Accepted Answer

This is the correct definition of a store's atmosphere.

Question 16

Emily has just opened a health food store that sells organic foods,herbal supplements,and environmentally-friendly products. Because it will be a specialty store,she should have a broad product assortment with moderately low prices.

Accepted Answer

Specialty stores have narrow product assortments and moderate to high prices.

Question 17

Direct retailers' sales have suffered as women have entered the workforce.

Accepted Answer

As more women entered the workforce, they had less time available for shopping and relied more on convenience-based retail options such as online shopping and large chain stores. This shift in shopping behavior has led to a decline in direct retailers' sales.

Question 18

The six Ps of the retailing mix are product,place,price,promotion,personnel,and planning.

Accepted Answer

Presentation,not planning,is one of the six Ps of the retailing mix.

Question 19

Supercenters are more than just larger versions of traditional "markets." In addition to foodstuffs,supercenters have pharmacies,dry cleaners,portrait studies,photo finishing,hair salons,and restaurants.

Accepted Answer

This statement is true. Supercenters are larger versions of traditional markets that offer a wide range of products and services, including foodstuffs, pharmacies, dry cleaners, portrait studios, photo finishing, hair salons, and restaurants.

Question 20

Electronic retailing includes the 24 hour,shop-at-home television networks and online retailing.

Accepted Answer

Electronic retailing refers to both the 24 hour, shop-at-home television networks and online retailing.

Quiz 15: Retailing