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| 1 | |
__________ is defined as all activities involved in selling, renting, and providing goods and services to ultimate consumers for personal, family, or household use. |
| | A) | Manufacturing |
| | B) | Wholesaling |
| | C) | Retailing |
| | D) | Facilitating |
| | E) | Logistics |
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| 2 | |
Customix.com is a retail website that allows customers to visit its website and design a sneaker to their own personal specifications. This website would particularly appeal to people who exercise regularly and are very aware of what shoe styles fit comfortably on their feet. Customix.com best represents how retailers create __________ utility. |
| | A) | price |
| | B) | form |
| | C) | place |
| | D) | time |
| | E) | promotion |
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| 3 | |
Which method of classifying retail outlets would be most appropriate for describing McDonald's, Holiday Inn, and Subway—all franchise operations? |
| | A) | form of ownership |
| | B) | level of service |
| | C) | merchandise line |
| | D) | method of operation |
| | E) | revenue generated |
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| 4 | |
Which of the following forms of retail ownership offers entrepreneurs the ability to be their own boss? |
| | A) | limited partnership |
| | B) | franchise |
| | C) | corporate chain |
| | D) | corporate proprietorship |
| | E) | independent retailer |
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| 5 | |
As a business-format franchiser, McDonald's assists its franchisees in selecting the store location, setting up the store, advertising, and: |
| | A) | paying their bills promptly. |
| | B) | shopping for the best food values. |
| | C) | keeping premises clean. |
| | D) | guidelines for the most likely decisions a franchisee will face. |
| | E) | disciplining dishonest employees. |
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| 6 | |
Which of the following statements BEST describes the term depth of product line? |
| | A) | Every unique item in the store has its own SKU. |
| | B) | Every stage of the product life cycle is represented by specific products in the store. |
| | C) | The retailer carries a large variety of different products. |
| | D) | The retail establishment carries enough merchandise so it never has to worry about a stockout. |
| | E) | The retailer carries a large assortment of each item. |
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| 7 | |
In addition to the four utilities offered by most retailers in varying degrees, consumers may seek additional utilities such as |
| | A) | entertainment, recreation, or information. |
| | B) | speed, recreation, and taste. |
| | C) | depth and breadth of line. |
| | D) | price, value, or durability. |
| | E) | service, speed, and taste. |
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| 8 | |
Which of the following stores will have the greatest breadth of product line? |
| | A) | American Fare hypermarket |
| | B) | Old Navy clothing store |
| | C) | Barnes & Noble bookstore |
| | D) | Ace hardware store |
| | E) | Family Dollar Store |
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| 9 | |
Scrambled merchandising produces __________ competition. |
| | A) | vertical |
| | B) | entreprenurial |
| | C) | intertype |
| | D) | intratype |
| | E) | transactional |
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| 10 | |
Carrefour, which means "crossroad" in French, is the world's second-biggest retailer after Wal-Mart. Carefour is a chain of hypermarkets, which means it: |
| | A) | engages in no intertype competition. |
| | B) | is a disintermediator. |
| | C) | uses scrambled merchandising. |
| | D) | can also be called a category killer. |
| | E) | uses dual distribution. |
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| 11 | |
Which of the following types of nonstore retailing is lowest in both customer and retailer involvement? |
| | A) | automatic vending |
| | B) | television home shopping |
| | C) | telemarketing |
| | D) | direct selling |
| | E) | online retailing |
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| 12 | |
Denny Howard is an avid fly fisherman who lives in Huston, a very small Alaskan village. For his hobby, Howard needs large rubber rafts, chest and hip waders, special fishing rods, reels, and line, and an assortment of fishing tackle and lures. There are no sporting goods stores in Huston, so Howard orders his fishing supplies from an L. L. Bean catalog. His supplies are generally delivered to his home within 72 hours. Howard is using a __________ to satisfy his fishing supply needs. |
| | A) | home delivery retailer |
| | B) | quick response retailer |
| | C) | direct mail marketer |
| | D) | flex response marketer |
| | E) | regional marketer |
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| 13 | |
Door-to-door retailing involves direct sales of goods and services to consumers through personal interactions and demonstrations in their homes or offices while direct selling: |
| | A) | involves demonstrations within stores. |
| | B) | uses the telephone to interact with customers. |
| | C) | allows consumers to evaluate and order products through the Internet. |
| | D) | sells through demonstrating and displaying products on television. |
| | E) | is exactly the same thing. |
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| 14 | |
The __________ is a means of positioning retail outlets in terms of the breadth of their product line and value added. |
| | A) | BCG growth share matrix |
| | B) | payoff table |
| | C) | market-product grid |
| | D) | retail positioning matrix |
| | E) | service pyramid |
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| 15 | |
In terms of the retail positioning matrix, an up-scale department store like Saks Fifth Avenue or Neiman-Marcus would be ranked as: |
| | A) | high in value added but low in product breadth. |
| | B) | high in product breadth and high in value added. |
| | C) | high in product depth and high in value added. |
| | D) | high in product breadth and high in product depth. |
| | E) | high in product breadth and low in value added. |
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| 16 | |
The retailing mix contains four elements. They are the retail pricing, store location, merchandise and: |
| | A) | utility mix. |
| | B) | store image and atmosphere. |
| | C) | guarantees and exchanges. |
| | D) | communications mix. |
| | E) | pricing mix. |
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| 17 | |
A retailer bought a pair of designer eyeglass frames for $16. She sets the initial selling price at $48 dollars. The final selling price was $34. What was the original markup? |
| | A) | $32 |
| | B) | $48 |
| | C) | $16 |
| | D) | $34 |
| | E) | cannot be determined because manufacturer's cost is not given |
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| 18 | |
Wal-Mart's Sam's Clubs and Costco's Warehouse Club are all examples of: |
| | A) | power centers. |
| | B) | one-price apparel chains. |
| | C) | off-price retailers. |
| | D) | hypermarkets. |
| | E) | direct marketers. |
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| 19 | |
A huge shopping strip with multiple anchor (or national) stores is called a: |
| | A) | central business district. |
| | B) | regional shopping center. |
| | C) | community shopping center. |
| | D) | mall. |
| | E) | power center. |
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| 20 | |
Lands' End is primarily known as a catalog retailer. However, it operates some retail stores and it sells at its website www.landsend.com. Lands' End is an example of one of the trends in retailing because it has: |
| | A) | used all of the elements of the utility mix. |
| | B) | created customers' needs where needs used to not exist. |
| | C) | uses a variety of sales locations to continually reposition itself on the retail positioning matrix. |
| | D) | eliminated the need for intermediaries to perform facilitating functions. |
| | E) | become a multichannel retailer. |
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