Question 1

A category specialist is a type of retail store that offers a(n):
A) broad variety of merchandise at low prices.
B) deep variety and narrow assortment of merchandise and sales associate expertise.
C) narrow variety but a deep assortment of merchandise.
D) broad variety and deep assortment of merchandise and customer services.
E) extensive assortment in many categories.

Accepted Answer

The answer of A category specialist is a type of...

Question 2

Retailers can distinguish themselves from their competitors by developing and marketing which brands?
A) Manufacturer's
B) Reseller's
C) Producer's
D) National
E) Store

Accepted Answer

Retailers can distinguish themselves from their competitors by developing and marketing their own store brands, also known as private label brands. This helps to create a unique image and value proposition for the retailer, who can offer exclusive products that cannot be found elsewhere. Manufacturer's and producer's brands are owned and marketed by the companies that produce them, while reseller's brands are typically created by a retailer to market products sourced from various manufacturers. National brands are well-known brands that are sold by multiple retailers.

Question 3

Retail stores that offer a broad variety and deep assortment of merchandise,provide some customer services,and are organized into separate departments to display their merchandise are referred to as:
A) discount stores.
B) department stores.
C) specialty stores.
D) category specialists.
E) convenience stores.

Accepted Answer

The characteristics described in the question fit the definition of a department store. Discount stores typically offer lower-priced merchandise and may not have as wide of a selection. Specialty stores focus on a specific category of merchandise. Category specialists offer a deep assortment in a specific category, but may not offer a broad variety of merchandise overall. Convenience stores typically offer a small selection of basic necessities and convenience items.

Question 4

The Small Store is a retail chain with small stores that offer a limited variety of products at lower prices.It targets customers in rural and lower-income urban areas.The Small Store is an example of a(n):
A) specialty store.
B) extreme value retailer.
C) hypermarket.
D) warehouse club.
E) supercentre.

Accepted Answer

The Small Store's focus on offering a limited variety of products at lower prices indicates that it is an extreme value retailer, which is a type of discount retailer that offers a smaller selection of products than traditional discount stores, but at even lower prices. Coupled with its target market of rural and lower-income urban areas, this makes B the best choice.

Question 5

Which of the following general merchandise retailers have lost market share to other retailers that provide better value at low prices and high-end store chains in the recent years?
A) Department stores
B) Discount stores
C) Specialty stores
D) Drugstores
E) Category specialists

Accepted Answer

Department stores have lost market share to both discount stores, which offer lower prices and better value, and high-end store chains, which provide a more luxurious shopping experience. Additionally, many department stores have struggled to adapt to the rise of online shopping, further contributing to their decline in market share.

Question 6

Which of the following offers an inconsistent assortment of merchandise at relatively low prices?
A) Department stores
B) Discount stores
C) Convenience stores
D) Specialty stores
E) Off-price retailers

Accepted Answer

Off-price retailers specialize in buying merchandise at lower prices and often from irregular or overstock inventories, which leads to an inconsistent assortment of goods. They pass the savings onto consumers, offering brand-name or designer products at significant discounts.

Question 7

Peach Inc.,a retailer of food products,promotes olive oil packaged with its own brand name.Customers find the olive oil sold at Peach cost-effective and of good quality and continue to make repeat purchases since it cannot be found at other retailers.Which of the following elements of the marketing mix is being used by the retailer in this scenario?
A) Process
B) People
C) Product
D) Price
E) Place

Accepted Answer

The answer of Peach Inc.,a retailer of food products,promotes olive...

Question 8

Retail stores that concentrate on health and personal grooming merchandise and sell prescription drugs are known as:
A) convenience stores.
B) discount stores.
C) department stores.
D) drugstores.
E) category killers.

Accepted Answer

Drugstores are retail stores that specialize in selling health and personal grooming merchandise along with prescription drugs. Convenience stores sell a variety of products for daily use and discount stores offer a wide range of products at lower prices. Department stores offer a variety of products across different categories, and category killers focus on dominating a specific product category such as electronics, sports equipment, or home improvement products.

Question 9

Which of the following organize a broad variety of merchandise based on categories and,hence,resemble a collection of specialty shops?
A) Specialty stores
B) Drug stores
C) Traditional grocery stores
D) Convenience stores
E) Department stores

Accepted Answer

Department stores organize a wide variety of merchandise into different categories or departments, similar to a collection of specialty shops. Specialty stores typically focus on one specific product category, such as clothing or electronics. Drug stores and convenience stores generally have a smaller selection of merchandise, and traditional grocery stores organize their merchandise by item type rather than creating distinct specialty shop areas.

Question 10

Woody's is a retail chain that offers a broad variety of products,organized into separate departments for the convenience of customers.It also offers a wide variety in each category and employs sales associates to assist customers.Woody's is an example of a:
A) conventional supermarket.
B) hypermarket.
C) department store.
D) specialty store.
E) convenience store.

Accepted Answer

Woody's is a department store because it offers a variety of products categorized into separate departments and employs sales associates to assist customers.

Question 11

Wellcome is a retail store that sells personal grooming items,cosmetics,and medicines.It also sells some snacks.Wellcome is an example of a:
A) department store.
B) drugstore.
C) discount store.
D) convenience store.
E) hypermarket.

Accepted Answer

Wellcome is primarily a drugstore as it specifically sells medicines and personal grooming items. It may also be considered a convenience store as it sells snacks, but this is not its primary focus.

Question 12

Which of the following offers an extensive assortment in a particular segment overwhelmingly that other retailers have difficulty competing?
A) Discount stores
B) Specialty stores
C) Category specialists
D) Drugstores
E) Convenience stores

Accepted Answer

Category specialists offer an extensive assortment in a particular segment, such as electronics or sporting goods, that other retailers have difficulty competing with. They have a deep knowledge of their product category and are able to offer a wider variety and deeper selection than other retailers in the same segment.

Question 13

Toys For Us is a retail chain that specializes in children's toys.It offers an extensive assortment of new toys and old favourites.It also carries exclusive toys that cannot be found in other toy stores.Toys For Us is an example of a:
A) hypermarket.
B) category killer.
C) drugstore.
D) discount store.
E) department store.

Accepted Answer

Toys For Us is a category killer because it specializes in one category of products, children's toys, and offers a vast selection of both new and exclusive toys.

Question 14

Style Icon,a clothes retailer,adds a new summer collection to its stores,keeping in mind the approaching summer season.As a keen market observer,Style Icon understands fashion trends and maintains inventory appropriately.Which of the four Ps is Style Icon using here to create value for consumers?
A) Promotion
B) Product
C) Price
D) People
E) Process

Accepted Answer

Style Icon is using the "Product" element of the marketing mix by introducing a new summer collection to its stores, which is in line with the approaching summer season and fashion trends, and helps create value for consumers.

Question 15

Crimson Corp.is a retail chain that sells a variety of products such as food,clothing,furniture,appliances,and other accessories.Since the store buys merchandise directly from vendors at very low prices,it is able to offer products at lower prices than traditional discount retailers.Crimson is an example of a(n):
A) department store.
B) specialty store.
C) discount store.
D) off-price retailer.
E) convenience store.

Accepted Answer

Crimson Corp. is able to offer products at lower prices than traditional discount retailers because they buy merchandise directly from vendors at very low prices, which is a characteristic of off-price retailers.

Question 16

Leo Corp.,a hardware retailer,sells products at low prices that appeal to the working class.Leo has flyer inserts that advertise current sales and special pricing delivered with a popular newspaper.Which of the following elements of the marketing mix is Leo using to create its retail strategy?
A) Process
B) Product
C) People
D) Price
E) Place

Accepted Answer

Leo Corp.'s strategy involves offering low prices to attract the working class, which falls under the price element of the marketing mix. Additionally, the use of flyer inserts delivered with a popular newspaper is an example of place, as it involves the distribution and placement of the marketing messages in a specific location.

Question 17

Retailers provide value to both manufacturers and customers by providing:
A) reciprocity.
B) discounts.
C) advertising consultancy.
D) coupons.
E) storage.

Accepted Answer

Retailers provide value to manufacturers by storing and handling their products, reducing their costs by not having to invest in their own storage facilities. They also provide value to customers by making products easily accessible and offering convenience in terms of location and operating hours. Choices A, B, C, and D provide some benefits but are not the main ways that retailers provide value to both manufacturers and customers.

Question 18

A general merchandise discount store located in a lower-income urban or rural area is known as a(n):
A) convenience store.
B) category specialist.
C) department store.
D) specialty store.
E) extreme value retailer.

Accepted Answer

An extreme value retailer typically sells a broad assortment of household and personal items at discounted prices in lower-income urban or rural areas. This type of store focuses on providing value to their customers by offering low prices on everyday items.

Question 19

Which of the following offers a narrow variety but a deep assortment of merchandise?
A) Discount stores
B) Department stores
C) Convenience stores
D) Category specialists
E) Drugstores

Accepted Answer

Category specialists are stores that focus on a specific category of merchandise, such as sporting goods or electronics. While they may not offer a wide variety of merchandise, they typically have a deep assortment within their specific category.

Question 20

Draper is a clothing retail that offers a deep assortment but exclusively in menswear.It uses a self-service approach.Draper is an example of a:
A) discount store.
B) department store.
C) category specialist.
D) convenience store.
E) supermarket.

Accepted Answer

Draper is a category specialist as it specializes in offering a deep assortment exclusively in menswear. The self-service approach is also a characteristic of category specialists. Discount stores, convenience stores, and supermarkets do not typically offer specialized assortments, and department stores carry a wider range of product categories.

Quiz 13: Pricing Concepts for Establishing Value

A category specialist is a type of retail store that offers a(n) :

Retailers can distinguish themselves from their competitors by developing and marketing which brands?

Retail stores that offer a broad variety and deep assortment of merchandise,provide some customer services,and are organized into separate departments to display their merchandise are referred to as:

The Small Store is a retail chain with small stores that offer a limited variety of products at lower prices.It targets customers in rural and lower-income urban areas.The Small Store is an example of a(n) :

Which of the following general merchandise retailers have lost market share to other retailers that provide better value at low prices and high-end store chains in the recent years?

Which of the following offers an inconsistent assortment of merchandise at relatively low prices?

Retail stores that concentrate on health and personal grooming merchandise and sell prescription drugs are known as:

Which of the following organize a broad variety of merchandise based on categories and,hence,resemble a collection of specialty shops?

Woody's is a retail chain that offers a broad variety of products,organized into separate departments for the convenience of customers.It also offers a wide variety in each category and employs sales associates to assist customers.Woody's is an example of a:

Wellcome is a retail store that sells personal grooming items,cosmetics,and medicines.It also sells some snacks.Wellcome is an example of a:

Which of the following offers an extensive assortment in a particular segment overwhelmingly that other retailers have difficulty competing?

Toys For Us is a retail chain that specializes in children's toys.It offers an extensive assortment of new toys and old favourites.It also carries exclusive toys that cannot be found in other toy stores.Toys For Us is an example of a:

Style Icon,a clothes retailer,adds a new summer collection to its stores,keeping in mind the approaching summer season.As a keen market observer,Style Icon understands fashion trends and maintains inventory appropriately.Which of the four Ps is Style Icon using here to create value for consumers?

Leo Corp.,a hardware retailer,sells products at low prices that appeal to the working class.Leo has flyer inserts that advertise current sales and special pricing delivered with a popular newspaper.Which of the following elements of the marketing mix is Leo using to create its retail strategy?

Retailers provide value to both manufacturers and customers by providing:

A general merchandise discount store located in a lower-income urban or rural area is known as a(n) :

Which of the following offers a narrow variety but a deep assortment of merchandise?

Draper is a clothing retail that offers a deep assortment but exclusively in menswear.It uses a self-service approach.Draper is an example of a: