Question 1

A traditional grocery store continues to thrive in the competitive food market by:
A) offering a wide variety of products,including food and many nonfood items.
B) specializing in a particular product category.
C) increasing the spending on advertising.
D) providing large discounts on perishable products.
E) finding special products and services that are important to their customers.

Accepted Answer

In a competitive food market, a traditional grocery store can thrive by finding special products and services that are important to their customers. As customers become increasingly informed and sophisticated, they are looking for grocery stores that cater to their specific needs and preferences. By providing unique items or services that can't be found elsewhere, a traditional grocery store can differentiate themselves from their competitors and build loyalty among their customer base.

Question 2

Which of the following general merchandise retailers concentrate on a limited number of complementary merchandise in relatively small stores?
A) Discount stores
B) Department stores
C) Specialty stores
D) Drugstores
E) Convenience stores

Accepted Answer

Specialty stores are known for concentrating on a limited number of complementary merchandise in relatively small stores. They have a narrow product line and focus on providing deep product knowledge and expertise in their area of specialization. Discount stores (A) offer a wide variety of merchandise at low prices, department stores (B) offer a wide range of merchandise across multiple categories and price points, drugstores (D) focus primarily on pharmaceuticals and health and beauty products, and convenience stores (E) specialize in providing a convenient location for quick purchases of food, beverages, and other household items.

Question 3

The key factor that distinguishes retailers from other members of the supply chain is that it sells products to:
A) wholesalers.
B) manufacturers.
C) businesses.
D) consumers.
E) resellers.

Accepted Answer

Retailers sell products directly to the end customers or consumers. This is what differentiates them from other members of the supply chain such as wholesalers who sell to retailers or other businesses, and manufacturers who produce products but sell them to either retailers or wholesalers. Resellers can include both B2B and B2C businesses, and may purchase products from retailers or manufacturers to sell to other businesses or end customers.

Question 4

Blossoms is a small bookstore in Ottawa with a preference for fine books and classic literature.It sells books on philosophy,art,literature,travel,and architecture and has sales associate expertise to help customers.Blossoms is an example of a:
A) hypermarket.
B) specialty store.
C) discount store.
D) supermarket.
E) convenience store.

Accepted Answer

Blossoms is a specialty store because it has a specific focus on fine books and classic literature and has sales associates with expertise in this area to assist customers.

Question 5

Neil's Mart has several outlets across Ontario and sells a limited number of items at accessible locations in small stores with speedy checkouts.It also typically charges higher prices than most other types of food stores.Neil's Mart is an example of a:
A) specialty store.
B) supermarket.
C) hypermarket.
D) discount store.
E) convenience store.

Accepted Answer

Neil's Mart is a small store with speedy checkouts that sells a limited number of items at accessible locations, which makes it an example of convenience stores. Additionally, the fact that it charges higher prices further supports this classification, as convenience stores often charge higher prices for the convenience they offer.

Question 6

A set of business activities that add value to products and services sold to consumers for their personal use is called:
A) licensing.
B) manufacturing.
C) advertising.
D) retailing.
E) reselling.

Accepted Answer

Retailing involves the sale of products and services to consumers for their personal use, adding value through marketing, merchandising, and customer service. Licensing involves granting the rights to use a specific product or brand name, manufacturing involves the production of goods, advertising involves promoting products or services, and reselling involves selling products that have already been sold once before.

Question 7

Virgo Inc.offers its products at relatively low prices to its customers.Virgo's strategy of procuring goods for sale from different manufacturers or retailers has resulted in an inconsistent assortment of goods at its store.Virgo is an example of a(n):
A) category killer.
B) drugstore.
C) hypermarket.
D) off-price retailer.
E) specialty store.

Accepted Answer

Virgo Inc. offers its products at relatively low prices and procures goods for sale from different manufacturers or retailers, which indicates that it is an off-price retailer.

Question 8

Richway offers a wide variety of products,such as clothing,footwear,electronics,housewares,bedding,and beauty products,at prices lower than traditional retail outlets with limited service.Richway is an example of a:
A) convenience store.
B) supermarket.
C) warehouse club.
D) discount store.
E) specialty store.

Accepted Answer

Richway's pricing strategy and product offerings align with those of a discount store.

Question 9

Shannon has limited time for shopping and prefers to buy tissues,grooming products,and other household needs from the same stores where she buys her groceries at low prices.Which of the following types of retailers is best suited for Shannon?
A) Off-price retailers
B) Services retailers
C) Discount stores
D) Specialty stores
E) Category specialists

Accepted Answer

Discount stores typically offer a variety of household needs along with groceries at lower prices compared to other types of retailers. This makes it a good fit for Shannon, who prefers to save time and money by buying everything in one trip to the store.

Question 10

Ochre,a store situated in a low-income locality,offers its products at relatively low prices.The goods for sale at Ochre vary frequently due to its low-budget procurement strategy.Ochre is an example of a(n):
A) specialty store.
B) extreme value retailer.
C) warehouse club.
D) convenience store.
E) category specialist.

Accepted Answer

Ochre's low prices and frequent variation of products are characteristic of an extreme value retailer, which aims to provide low-priced goods to a low-income demographic.

Question 11

Which of the following offers limited sales of nonfood items and general merchandise in a self-service format?
A) Big-box food retailers
B) Conventional supermarkets
C) Hypermarkets
D) Supercentres
E) Warehouse clubs

Accepted Answer

Conventional supermarkets typically offer limited sales of nonfood items and general merchandise in a self-service format. Big-box food retailers, hypermarkets, supercentres, and warehouse clubs all offer a wider variety of nonfood items and general merchandise.

Question 12

Which of the following is positioned at the end of the supply chain?
A) Retailing
B) Manufacturing
C) Advertising
D) Licensing
E) Warehousing

Accepted Answer

Retailing is the process of selling products to end consumers, which marks the end of the supply chain. Manufacturing, advertising, licensing, and warehousing are all part of the supply chain but are not necessarily positioned at the end.

Question 13

Which of the following types of stores receives 55 percent of its annual sales from selling gasoline?
A) Conventional supermarkets
B) Convenience stores
C) Hypermarkets
D) Supercentres
E) Warehouse clubs

Accepted Answer

Convenience stores are known for their sale of gasoline, and on average, 55 percent of their annual sales come from gasoline. Conventional supermarkets, hypermarkets, supercentres, and warehouse clubs do not rely heavily on gasoline sales for their revenue.

Question 14

Which of the following types of stores tailor their retail strategy to very specific market segments by offering deep but narrow assortments and sales associate expertise?
A) Specialty
B) Discount
C) Department
D) Off-price
E) Convenience

Accepted Answer

Specialty stores focus on offering a deep but narrow assortment of products to a specific customer segment. They differentiate themselves through their specialized expertise and personalized customer service, offering a shopping experience that cannot be replicated by other retailers. Discount, department, and off-price stores generally offer broader assortments at lower price points and do not specialize in specific market segments. Convenience stores typically offer a limited assortment of products and are focused on providing convenience to the customer, rather than specialized expertise.

Question 15

Red Den is a grocery retail chain that offers products such as dairy,frozen foods,meat,snacks,and a limited line of general merchandise.Red Den is an example of a:
A) convenience store.
B) specialty store.
C) hypermarket.
D) conventional supermarket.
E) drugstore.

Accepted Answer

Red Den is a conventional supermarket because it offers a variety of products including dairy, frozen foods, meat, snacks, and limited general merchandise. Conventional supermarkets are typically larger than convenience stores and offer a wider range of products. Specialty stores focus on a particular line of products such as jewelry or electronics. Hypermarkets are even larger than conventional supermarkets and offer a wider range of products including clothing and electronics. Drugstores primarily sell pharmaceuticals and health-related products.

Question 16

Firms involved in buying,often storing,and physically handling goods in large quantities and then reselling goods to business users are called:
A) manufacturers.
B) producers.
C) institutions.
D) retailers.
E) wholesalers.

Accepted Answer

Wholesalers are defined as firms involved in buying, often storing, and physically handling goods in large quantities and then reselling those goods to business users. This distinguishes them from retailers who sell goods directly to end consumers. Manufacturers and producers are typically involved in the actual creation and production of goods, while institutions refer to organizations such as banks, schools, or government bodies.

Question 17

Which of the following adds value to products by selling them to consumers for their personal use?
A) Wholesaler
B) Manufacturer
C) Retailer
D) Reseller
E) Advertiser

Accepted Answer

Retailers sell products directly to consumers for their personal use, adding value by providing convenient and accessible locations to purchase products.

Question 18

Which of the following offers a broad variety of merchandise,limited service,and low prices?
A) Specialty stores
B) Convenience stores
C) Category specialists
D) Drugstores
E) Discount stores

Accepted Answer

Discount stores offer a broad variety of merchandise at low prices, but typically provide limited customer service.

Question 19

A hypermarket is a type of:
A) big-box food retailer.
B) convenience store.
C) general merchandise retailer.
D) specialty store.
E) category specialist.

Accepted Answer

A hypermarket is a type of big-box food retailer that offers a wide range of products, including groceries, clothing, electronics, and household items. It is larger than a regular grocery store and can also include other services such as restaurants, pharmacies, and banks. The focus is on providing a one-stop shopping experience for customers.

Question 20

Which of the following best determines the level of difficulty a manufacturer has in getting retailers to purchase its products?
A) The level of sophistication of the product
B) Customer expectations
C) The relative power of the manufacturer and retailer
D) Product line complexity
E) Advertising expenditure

Accepted Answer

The relative power of the manufacturer and retailer is the key factor in determining the level of difficulty a manufacturer has in getting retailers to purchase its products. If the retailer has more power, they can demand favorable terms, pricing, and promotions from the manufacturer. If the manufacturer has more power, they can dictate the terms of the relationship and require retailers to carry their products. The other options may impact how attractive the product is to retailers, but they do not directly determine the level of difficulty in getting retailers to purchase the product.

Quiz 13: Pricing Concepts for Establishing Value

A traditional grocery store continues to thrive in the competitive food market by:

Which of the following general merchandise retailers concentrate on a limited number of complementary merchandise in relatively small stores?

The key factor that distinguishes retailers from other members of the supply chain is that it sells products to:

Blossoms is a small bookstore in Ottawa with a preference for fine books and classic literature.It sells books on philosophy,art,literature,travel,and architecture and has sales associate expertise to help customers.Blossoms is an example of a:

Neil's Mart has several outlets across Ontario and sells a limited number of items at accessible locations in small stores with speedy checkouts.It also typically charges higher prices than most other types of food stores.Neil's Mart is an example of a:

A set of business activities that add value to products and services sold to consumers for their personal use is called:

Virgo Inc.offers its products at relatively low prices to its customers.Virgo's strategy of procuring goods for sale from different manufacturers or retailers has resulted in an inconsistent assortment of goods at its store.Virgo is an example of a(n) :

Richway offers a wide variety of products,such as clothing,footwear,electronics,housewares,bedding,and beauty products,at prices lower than traditional retail outlets with limited service.Richway is an example of a:

Shannon has limited time for shopping and prefers to buy tissues,grooming products,and other household needs from the same stores where she buys her groceries at low prices.Which of the following types of retailers is best suited for Shannon?

Ochre,a store situated in a low-income locality,offers its products at relatively low prices.The goods for sale at Ochre vary frequently due to its low-budget procurement strategy.Ochre is an example of a(n) :

Which of the following offers limited sales of nonfood items and general merchandise in a self-service format?

Which of the following is positioned at the end of the supply chain?

Which of the following types of stores receives 55 percent of its annual sales from selling gasoline?

Which of the following types of stores tailor their retail strategy to very specific market segments by offering deep but narrow assortments and sales associate expertise?

Red Den is a grocery retail chain that offers products such as dairy,frozen foods,meat,snacks,and a limited line of general merchandise.Red Den is an example of a:

Firms involved in buying,often storing,and physically handling goods in large quantities and then reselling goods to business users are called:

Which of the following adds value to products by selling them to consumers for their personal use?

Which of the following offers a broad variety of merchandise,limited service,and low prices?

A hypermarket is a type of:

Which of the following best determines the level of difficulty a manufacturer has in getting retailers to purchase its products?