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| 1 | |
What does a retail strategy identify? |
| | A) | the retail trade areas |
| | B) | the advertising campaign |
| | C) | output measures |
| | D) | the target market |
| | E) | partnerships |
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| 2 | |
A flower shop can develop a sustainable competitive advantage by: |
| | A) | providing customized plant care services |
| | B) | developing a customer database to offer special promotions |
| | C) | developing a coupon offering with some of the local gift stores |
| | D) | securing a good location |
| | E) | doing all of the above |
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| 3 | |
Which of the following does NOT describe a sustainable competitive advantage? |
| | A) | Chico's delivers high-quality customer service and devotes considerable time and effort to training its sales associates to establish personal relationships with each of its customers. |
| | B) | Steve & Barry's offers university-logoed sportswear and builds reputation by partnerships with vendors and heavy advertising campaigns. |
| | C) | Curves develops fitness programs tailored to aging baby boomers. |
| | D) | Zara, a Spanish fashion retailer, offers quality fashion apparel at low prices with vertically integration, shorter-time-to-market, and no advertising. |
| | E) | Magazine Luiza, Brazil's third-largest nonfood retailer, targets low-income consumers by selling consumer electronics and appliances on installment payment plans and offering affordable credit. |
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| 4 | |
Which of the following does NOT describe the ways that retailers build customer loyalty? |
| | A) | developing a strong brand for the store or store brands |
| | B) | providing good customer service |
| | C) | creating an emotional attachment with customers through loyalty programs |
| | D) | offering frequent promotions |
| | E) | developing clear and precise positioning strategies |
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| 5 | |
Which of the following does NOT describe what a retailer can do by using the information provided from a data warehouse? |
| | A) | Retailers target their advertisements to more profitable market segments. |
| | B) | Retailers can determine new locations that attract more businesses. |
| | C) | Retailers can easily gauge price points to meet the competitor's prices. |
| | D) | Retailers can tailor services to certain groups of customers. |
| | E) | Retailers can tailor offerings to better meet the needs of their customers. |
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| 6 | |
Which of the following is an example of a private label brand? |
| | A) | Kenmore dishwasher |
| | B) | Samsung plasma TV |
| | C) | Nike athletic shoes |
| | D) | Levi's jeans |
| | E) | Kellogg's cornflake cereals |
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| 7 | |
A sales associate who has just sold a DVD player to a customer will take the customer to the accessories department to sell special cables to improve the performance of the play. This selling approach is called: |
| | A) | Up-selling |
| | B) | Cross-selling |
| | C) | Merchandise diversification |
| | D) | Incentive-selling |
| | E) | Accessory promotion |
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| 8 | |
Which of the following describes growth opportunities that retailers pursue? |
| | A) | Retailers realize growth by directing efforts toward existing customers using the retailer's present retailing format. |
| | B) | Retailers open more stores in the target market and keep existing stores open for longer hours to penetrate markets. |
| | C) | Retailers use the existing retail format in new market segments. |
| | D) | Retailers develop a new retail format for the same target market. |
| | E) | All of the above |
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| 9 | |
Abercrombie & Fitch's (A & F) primary target market is college students. A & F opened a new, lower-priced chain called Hollister C. What growth strategy did A & F use? |
| | A) | market penetration |
| | B) | related diversification |
| | C) | unrelated diversification |
| | D) | retail format development |
| | E) | market expansion |
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| 10 | |
Some retailers, such as Wal-Mart, Carrefour, Starbucks, Zara, and IKEA, have been successful in international markets. Key characteristics of these retailers that have successfully exploited international growth opportunities included all the following except: |
| | A) | a globally sustainable competitive advantage |
| | B) | global culture |
| | C) | financial resources |
| | D) | strong marketing strategies |
| | E) | adaptability |
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