Question 1

Lou Farrigamo is the store manager of a local retailing establishment that sells a wide variety of shopping and specialty goods,including apparel,cosmetics,housewares,and electronics.Farrigamo probably manages a department store.

Accepted Answer

The description given suggests that Lou Farrigamo manages a department store, which typically sells a range of merchandise across different departments such as clothing, beauty, home goods, and technology.

Question 2

When Golden Rental opened 10 years ago in Barrie,Ontario,it competed with only one or two other DVD rental stores within a five-km radius.Today,there are eight stores in that radius,including two Blockbusters,each one kilometre away in different directions.
There is little doubt that independently owned DVD rental stores are having a tough time competing with chains such as Blockbuster,but many are finding their own special ways of surviving.Part of the solution has been in supplementary merchandise and services such as sports cards and camcorder rentals,or renting and selling the X-rated titles shunned by many chains.Lower rental fees also are prevalent among independents,but the key to success in the mom-and-pop businesses appears to be personalized service.Golden Rental provides services such as helping parents choose G-rated movies that they can watch with their children from their specially designed children's section.To add value,Golden Rental also sells comic books,sports cards,and toys.With friendly and value-added services,Golden Rental has boosted business in spite of the stiff competition.
-Refer to Golden Rental.Blockbuster Rental grants individuals the right to open a Blockbuster store through the use of a contractual arrangement.This suggests that Blockbuster is which of the following?

Accepted Answer

Blockbuster Rental's contractual arrangement with individuals grants them the right to open a Blockbuster store, which indicates that Blockbuster is a franchise.

Question 3

Esther Jui has just opened a specialty store that will sell Asian wedding gowns to Asian-Canadians who want a traditional wedding.Because it will be a specialty store,she should have a broad product assortment with moderately low prices.

Accepted Answer

A broad product assortment typically involves a wider range of products and higher prices. A specialty store usually offers a narrow range of products and higher prices due to the uniqueness and specialized nature of the offerings. Additionally, traditional wedding dresses tend to be highly valued and therefore can command higher prices.

Question 4

Baggie Waggie is the name of a chain of small stores that which carry high-turnover products such as lip balm,milk,laundry detergent,bread,and aspirin.Baggie Waggie stores are open all day every day and would best be classified as convenience stores.

Accepted Answer

The description of Baggie Waggie stores as carrying high-turnover products such as lip balm, milk, laundry detergent, bread, and aspirin indicates that they are convenience stores. Additionally, their hours of operation all day every day also suggest that they are convenience stores.

Question 5

When Golden Rental opened 10 years ago in Barrie,Ontario,it competed with only one or two other DVD rental stores within a five-km radius.Today,there are eight stores in that radius,including two Blockbusters,each one kilometre away in different directions.
There is little doubt that independently owned DVD rental stores are having a tough time competing with chains such as Blockbuster,but many are finding their own special ways of surviving.Part of the solution has been in supplementary merchandise and services such as sports cards and camcorder rentals,or renting and selling the X-rated titles shunned by many chains.Lower rental fees also are prevalent among independents,but the key to success in the mom-and-pop businesses appears to be personalized service.Golden Rental provides services such as helping parents choose G-rated movies that they can watch with their children from their specially designed children's section.To add value,Golden Rental also sells comic books,sports cards,and toys.With friendly and value-added services,Golden Rental has boosted business in spite of the stiff competition.
-Refer to Golden Rental.How can Golden Rental best be described?

Accepted Answer

The passage describes Golden Rental as a DVD rental store that provides supplementary merchandise and services, such as sports cards and camcorder rentals, and sells X-rated titles shunned by many chains. It also offers personalized service, such as helping parents choose G-rated movies that they can watch with their children from their specially designed children's section. This indicates that Golden Rental is a retailer.

Question 6

Justin Nilssen and Joe Metzger disagree about what it means to be a specialty store.Nilssen says,"A specialty store is just one type of store." Metzger says,"It's more than that-it's also a method of retailing,and involves specializing in a type of merchandise,too." Metzger is correct.

Accepted Answer

Justin Nilssen's definition is too broad and does not fully encompass the characteristics of a specialty store. Joe Metzger's definition is more specific and includes the key factor of specializing in a type of merchandise, which is a defining feature of a specialty store.

Question 7

Hildebrand Stein operates a retail store that has a wide assortment of window treatments with little depth in any one product line.Stein operates a specialty store.

Accepted Answer

A specialty store focuses on a specific product category, offering a deep assortment within that category, unlike Stein's store which offers a wide assortment but little depth.

Question 8

When Golden Rental opened 10 years ago in Barrie,Ontario,it competed with only one or two other DVD rental stores within a five-km radius.Today,there are eight stores in that radius,including two Blockbusters,each one kilometre away in different directions.
There is little doubt that independently owned DVD rental stores are having a tough time competing with chains such as Blockbuster,but many are finding their own special ways of surviving.Part of the solution has been in supplementary merchandise and services such as sports cards and camcorder rentals,or renting and selling the X-rated titles shunned by many chains.Lower rental fees also are prevalent among independents,but the key to success in the mom-and-pop businesses appears to be personalized service.Golden Rental provides services such as helping parents choose G-rated movies that they can watch with their children from their specially designed children's section.To add value,Golden Rental also sells comic books,sports cards,and toys.With friendly and value-added services,Golden Rental has boosted business in spite of the stiff competition.
-Refer to Golden Rental.Stores in the DVD rental industry,such as Golden Rental and Blockbuster,can be classified on each of the following bases EXCEPT which of the following?

Accepted Answer

Location is not a basis for classifying stores in the DVD rental industry.

Question 9

The first Wawa store opened in 1964.Today the company has 15,000 employees and owns and operates more than 550 units in Ontario,New Brunswick,Manitoba,Saskatchewan,and Alberta.The chain's sales topped $2 billion in 2002.Wawa began as a store for distributing Wawa dairy products.Since then it has gotten into the gasoline business to increase store traffic,but its primary draw is hot meals and cold sandwiches in a quick-service restaurant format that mimics a shopping mall food court.Personalization is a fundamental part of the store concept and is built into things like coffee and sandwiches.Stores have an eight-head cappuccino machine where customers can mix and match whatever flavors they want and add steamed milk or cream,all for the same price as a regular cup of coffee.In addition to being restaurants,Wawa stores also do a big business in a limited line of high-turnover convenience products and can accurately be described as mini-supermarkets.
-Refer to Wawa.Its restaurant format that mimics a shopping mall food court would be a factor in which element of the retailing mix?

Accepted Answer

The restaurant format that mimics a shopping mall food court is a factor in the presentation element of the retailing mix.

Question 10

The first Wawa store opened in 1964.Today the company has 15,000 employees and owns and operates more than 550 units in Ontario,New Brunswick,Manitoba,Saskatchewan,and Alberta.The chain's sales topped $2 billion in 2002.Wawa began as a store for distributing Wawa dairy products.Since then it has gotten into the gasoline business to increase store traffic,but its primary draw is hot meals and cold sandwiches in a quick-service restaurant format that mimics a shopping mall food court.Personalization is a fundamental part of the store concept and is built into things like coffee and sandwiches.Stores have an eight-head cappuccino machine where customers can mix and match whatever flavors they want and add steamed milk or cream,all for the same price as a regular cup of coffee.In addition to being restaurants,Wawa stores also do a big business in a limited line of high-turnover convenience products and can accurately be described as mini-supermarkets.
-Refer to Wawa.In terms of types of retail operations,how could Wawa stores be categorized?

Accepted Answer

Wawa stores can be categorized as convenience stores.

Question 11

The first Wawa store opened in 1964.Today the company has 15,000 employees and owns and operates more than 550 units in Ontario,New Brunswick,Manitoba,Saskatchewan,and Alberta.The chain's sales topped $2 billion in 2002.Wawa began as a store for distributing Wawa dairy products.Since then it has gotten into the gasoline business to increase store traffic,but its primary draw is hot meals and cold sandwiches in a quick-service restaurant format that mimics a shopping mall food court.Personalization is a fundamental part of the store concept and is built into things like coffee and sandwiches.Stores have an eight-head cappuccino machine where customers can mix and match whatever flavors they want and add steamed milk or cream,all for the same price as a regular cup of coffee.In addition to being restaurants,Wawa stores also do a big business in a limited line of high-turnover convenience products and can accurately be described as mini-supermarkets.
-Refer to Wawa.The ability to personalize your coffee yourself is consistent with which new development in retailing?

Accepted Answer

The ability for customers to personalize their coffee is an example of interactivity, which is a new development in retailing that involves engaging customers and allowing them to be an active part of the shopping experience. This allows for greater customer satisfaction and can lead to increased loyalty and sales.

Question 12

The first Wawa store opened in 1964.Today the company has 15,000 employees and owns and operates more than 550 units in Ontario,New Brunswick,Manitoba,Saskatchewan,and Alberta.The chain's sales topped $2 billion in 2002.Wawa began as a store for distributing Wawa dairy products.Since then it has gotten into the gasoline business to increase store traffic,but its primary draw is hot meals and cold sandwiches in a quick-service restaurant format that mimics a shopping mall food court.Personalization is a fundamental part of the store concept and is built into things like coffee and sandwiches.Stores have an eight-head cappuccino machine where customers can mix and match whatever flavors they want and add steamed milk or cream,all for the same price as a regular cup of coffee.In addition to being restaurants,Wawa stores also do a big business in a limited line of high-turnover convenience products and can accurately be described as mini-supermarkets.
-Refer to Wawa.Who buys most of the merchandise sold in the individual stores?

Accepted Answer

The home office owns and operates all of the Wawa stores, so they are responsible for buying the merchandise sold in each individual store.

Question 13

The first Wawa store opened in 1964.Today the company has 15,000 employees and owns and operates more than 550 units in Ontario,New Brunswick,Manitoba,Saskatchewan,and Alberta.The chain's sales topped $2 billion in 2002.Wawa began as a store for distributing Wawa dairy products.Since then it has gotten into the gasoline business to increase store traffic,but its primary draw is hot meals and cold sandwiches in a quick-service restaurant format that mimics a shopping mall food court.Personalization is a fundamental part of the store concept and is built into things like coffee and sandwiches.Stores have an eight-head cappuccino machine where customers can mix and match whatever flavors they want and add steamed milk or cream,all for the same price as a regular cup of coffee.In addition to being restaurants,Wawa stores also do a big business in a limited line of high-turnover convenience products and can accurately be described as mini-supermarkets.
-Refer to Wawa.What would the decision to allow customers to create their own coffee drinks be part of?

Accepted Answer

The decision to allow customers to create their own coffee drinks is part of Wawa's retailing mix, specifically the product and service mix. Wawa allows for customization in their coffee offerings to appeal to individual customer preferences, which is a part of their product and service mix.

Question 14

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

Accepted Answer

Retail establishments can be classified according to various criteria, including ownership, level of service, product assortment, and price.

Question 15

Roland LaFarge owns an appliance store where he also sells bird feeders,tools,electrical and plumbing supplies,collectible figurines,homemade candy,and greeting cards,as well as wall paint.LaFarge uses multibrand merchandising.

Accepted Answer

The answer of Roland LaFarge owns an appliance store where...

Question 16

The first Wawa store opened in 1964.Today the company has 15,000 employees and owns and operates more than 550 units in Ontario,New Brunswick,Manitoba,Saskatchewan,and Alberta.The chain's sales topped $2 billion in 2002.Wawa began as a store for distributing Wawa dairy products.Since then it has gotten into the gasoline business to increase store traffic,but its primary draw is hot meals and cold sandwiches in a quick-service restaurant format that mimics a shopping mall food court.Personalization is a fundamental part of the store concept and is built into things like coffee and sandwiches.Stores have an eight-head cappuccino machine where customers can mix and match whatever flavors they want and add steamed milk or cream,all for the same price as a regular cup of coffee.In addition to being restaurants,Wawa stores also do a big business in a limited line of high-turnover convenience products and can accurately be described as mini-supermarkets.
-Retailing can be defined as all activities directly related to the sale of goods and services to the ultimate consumer for personal and nonbusiness use.

Accepted Answer

The definition of retailing provided in the statement is accurate and true.

Question 17

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

Accepted Answer

Supermarkets primarily deal with food and grocery items but may also carry nonfood products such as household items, personal care items, and healthcare products.

Question 18

When Golden Rental opened 10 years ago in Barrie,Ontario,it competed with only one or two other DVD rental stores within a five-km radius.Today,there are eight stores in that radius,including two Blockbusters,each one kilometre away in different directions.
There is little doubt that independently owned DVD rental stores are having a tough time competing with chains such as Blockbuster,but many are finding their own special ways of surviving.Part of the solution has been in supplementary merchandise and services such as sports cards and camcorder rentals,or renting and selling the X-rated titles shunned by many chains.Lower rental fees also are prevalent among independents,but the key to success in the mom-and-pop businesses appears to be personalized service.Golden Rental provides services such as helping parents choose G-rated movies that they can watch with their children from their specially designed children's section.To add value,Golden Rental also sells comic books,sports cards,and toys.With friendly and value-added services,Golden Rental has boosted business in spite of the stiff competition.
-Refer to Golden Rental.What type of site location would you expect Golden Rental to utilize?

Accepted Answer

A strip centre is a type of shopping center that is typically located along a busy road and has a row of stores facing the street. This type of location would be ideal for Golden Rental because it would provide them with good visibility and accessibility to potential customers.

Question 19

The retailing industry is dominated by a large number of small- and medium-sized companies.

Accepted Answer

The answer of The retailing industry is dominated by a...

Question 20

When Golden Rental opened 10 years ago in Barrie,Ontario,it competed with only one or two other DVD rental stores within a five-km radius.Today,there are eight stores in that radius,including two Blockbusters,each one kilometre away in different directions.
There is little doubt that independently owned DVD rental stores are having a tough time competing with chains such as Blockbuster,but many are finding their own special ways of surviving.Part of the solution has been in supplementary merchandise and services such as sports cards and camcorder rentals,or renting and selling the X-rated titles shunned by many chains.Lower rental fees also are prevalent among independents,but the key to success in the mom-and-pop businesses appears to be personalized service.Golden Rental provides services such as helping parents choose G-rated movies that they can watch with their children from their specially designed children's section.To add value,Golden Rental also sells comic books,sports cards,and toys.With friendly and value-added services,Golden Rental has boosted business in spite of the stiff competition.
-Refer to Golden Rental.Golden Rental and Blockbuster represent which type of retailers?

Accepted Answer

Golden Rental and Blockbuster are both DVD rental stores, which specialize in providing a specific product category to their customers. Mass merchandisers, such as Walmart and Target, sell a wide variety of products in multiple categories. Membership clubs, such as Costco and Sam's Club, offer bulk goods at discounted prices to their members. Factory outlets, such as Nike and Adidas, sell products directly from the manufacturer at a lower price.

Quiz 12: Retailing