Question 1

A manufacturer wants to introduce a line of hand-smocked children's clothing in conjunction with the growing number of professional women who are now having babies.The least expensive of these outfits will be $75.Which of the following types of stores would most likely support an effective product launch?

Accepted Answer

A specialty store would be the best choice for launching a line of higher-end children's clothing. These stores typically cater to a specific target market and carry a wider range of specialized products than a general store or discount store. This would allow the manufacturer to showcase their unique and more expensive clothing in a more personalized atmosphere, which would appeal to the target market of professional women having babies. An off-price retailer, full-discount store or warehouse club would not be the best choice for launching a higher-end line of hand-smocked children's clothing.

Question 2

The development and opening of a store that sell nothing but materials used in creating scrapbooks is an example of:

Accepted Answer

The store that specializes in selling materials for creating scrapbooks falls under the category of specialty retailing, as it focuses on catering to a specific niche market.

Question 3

Using what you have learned about retailing,which type of retail store would typically have the highest labor costs?

Accepted Answer

Department stores have the highest labor costs among the given options because they have a larger store footprint, more employees, and offer a wider range of products and services compared to other types of retail stores. Department stores require a larger number of sales associates, managers, and other staff to operate, resulting in higher labor costs.

Question 4

Which of the following provides the most likely reason to explain why Ingall's supermarkets sell planters,lawn furniture,and baking utensils as well as food products?

Accepted Answer

Consumer demand for one-stop shopping often leads to scrambled merchandising, where retailers add non-food products to their product offerings to meet the needs of their customers and increase sales.

Question 5

Prices are usually higher in convenience stores than in supermarkets because convenience stores offer:

Accepted Answer

Convenience stores offer better location, longer hours, and faster service, which allow them to charge higher prices for the convenience they provide. They cater to consumers who prioritize time and convenience over cost.

Question 6

When supermarkets offer a wide variety of nontraditional goods and services under one roof,they are engaged in:

Accepted Answer

Scrambled merchandising refers to offering a wide variety of nontraditional goods and services that are not necessarily related to the store's primary business under one roof. Supermarkets engaging in this practice may carry items such as clothing, electronics, or even financial services alongside their traditional grocery offerings. Cross-selling and trading up both refer to strategies for increasing sales in a particular category or upselling to higher-priced products, but do not necessarily involve offering unrelated items. Disintermediation refers to the elimination of intermediaries in the distribution process, while cross-docking is a logistics strategy for reducing inventory holding costs.

Question 7

The initial attraction of drugstores for consumers was the pharmaceuticals they carried,but now consumers can have their subscriptions filled at mass merchandisers,supermarkets,and through the mail.What have drugstores done to remain competitive?

Accepted Answer

Drugstores have remained competitive by offering value-added services, which enhance the customer experience and differentiate them from other retailers.

Question 8

The buyer who heads a department in a department store is responsible for the:

Accepted Answer

The buyer of a department is responsible for selecting and managing the merchandise mix in that department, including purchasing, pricing, and inventory decisions. The other responsibilities listed, such as exchange and return policies, credit policies, chain expansion efforts, and advertising programs may be overseen by other departments or higher-level executives within the company.

Question 9

The Faux Store is a chain of stores selling an assortment of products needed to create custom decorator painting effects such as crackling,aging,and marble textures.Its products have high gross margins,and its salespeople are willing and able to answer any how-to questions its customers might ask.The store would most likely be classified as a:

Accepted Answer

The Faux Store is a specialty store that provides a unique assortment of products for a specific niche market (decorator painting effects). Its high gross margins and knowledgeable salespeople further demonstrate its specialization in this area.

Question 10

______ are large,departmentalized,self-service retailers that specialize in wide assortments of foodstuffs and a few nonfood items.

Accepted Answer

Supermarkets are large, departmentalized, self-service retailers that specialize in wide assortments of foodstuffs and a few nonfood items. Convenience stores are small, limited assortment retailers that focus on convenience items. Membership wholesale clubs are retailers that require a membership to shop and specialize in bulk purchases. Discount stores are retailers that offer low prices and a limited assortment of merchandise. Assortment merchandisers is not a commonly used term in the retail industry.

Question 11

Each department in a department store is usually headed by a _____ who selects the merchandise mix for the department and may also choose the promotional devices and personnel for that department.

Accepted Answer

A buyer is responsible for selecting the merchandise mix for a department and may also choose the promotional devices and personnel for that department.

Question 12

Which of the following statements about specialty stores is true?

Accepted Answer

Customers usually consider price to be of secondary importance in their selection of a specialty store.Customers at specialty stores are very concerned with the distinctiveness of the merchandise or the store's physical appearance.Specialty stores provide a low-risk testing ground for new products.A typical specialty store carries a narrower assortment of specialty merchandise than department stores.

Question 13

A _____ is not only a type of store,but also a method of retail operations.This type of retailer specializes in a given type of merchandise with a deep but narrow assortment.

Accepted Answer

The description of the retailer specializing in a given type of merchandise with a deep but narrow assortment fits that of a specialty store.

Question 14

According to the text,one way supermarkets establish long-term relationships with their customers is to:

Accepted Answer

The text mentions that supermarkets establish long-term relationships with their customers through loyalty marketing programs, which indicates that creating and using such programs is a way supermarkets can achieve this goal. Choice A (conducting longitudinal focus group studies) and choice E (creating customer correlation studies) are not mentioned in the text as ways supermarkets establish long-term relationships with their customers. Choice B (avoiding any obviously ethnic appeal) may be a strategy to appeal to a wider range of customers, but it is not mentioned in the text as a way to establish long-term relationships. Choice C (limiting the number of nonfood items carried by the stores) is not mentioned in the text as a way supermarkets establish long-term relationships with their customers.

Question 15

Which of the following environmental trends is most directly influencing supermarket operations?

Accepted Answer

The increase in dual-income and single-parent families affects supermarket operations by influencing shopping habits, such as the demand for convenience foods and flexible shopping hours.

Question 16

_____ carry a limited line of high-turnover,high-priced goods and resemble miniature supermarkets.These self-service stores are typically located near residential areas and are open long hours,seven days a week.

Accepted Answer

The description fits that of convenience stores, which are known for carrying a limited selection of high-turnover items and operating long hours, seven days a week. Specialty stores typically focus on a narrower range of products and may have more limited hours, while wholesale stores are geared toward businesses rather than individual consumers. Factory outlets typically sell discounted or clearance merchandise, while general stores are more common in rural areas and carry a broader range of merchandise than convenience stores.

Question 17

The _____ at a Dillard's department store selects the merchandise for his or her department and is often responsible for the promotion and for personnel in that department.

Accepted Answer

A buyer is responsible for selecting merchandise and managing the department's promotion and personnel. Purchasing agents focus more on negotiating contracts and obtaining goods from suppliers, while a retail broker acts as an intermediary between retailers and suppliers. A merchandiser may be responsible for visual merchandising and display, but not necessarily for personnel and promotion. A franchisee is a person who owns and operates a franchise business, which is a different role altogether.

Question 18

Albertson's,Kroger,Winn-Dixie,and other supermarket chains offer a variety of nontraditional goods and services such as video rental,flower shops,dry cleaning,and banking.This practice is called:

Accepted Answer

Scrambled merchandising refers to the practice of offering a variety of nontraditional goods and services in a retail setting. This allows retailers to differentiate themselves from competitors and provide additional conveniences to customers.

Question 19

_____ are retailers that compete on the basis of low prices,high turnover,and high volume.

Accepted Answer

Discount stores are known for their low prices, high turnover, and high volume. Convenience outlets are small stores located in convenient locations such as gas stations, while general stores and department stores offer a wider range of products at varying price points. Specialty stores cater to a specific market with a focus on a particular product or service.

Question 20

Lorenzo Michaelson owns a small chain of retail outlets that are described as large,departmentalized,self-service stores that specialize in wide assortments of foodstuffs and limited nonfood items.Michaelson's stores are:

Accepted Answer

The description of Michaelson's stores as large, departmentalized, self-service with wide assortments of foodstuffs and limited nonfood items indicate that they are supermarkets.

Quiz 13: Retailing