MULTIPLE CHOICE
1. _____ is defined as all activities directly related to the sale of goods and services to the ultimate consumer for personal, nonbusiness use or consumption.
a.
|
Wholesaling
|
b.
|
Retailing
|
c.
|
Business
|
d.
|
Franchising
|
e.
|
Distribution
|
ANS: B
This is the definition of retailing.
PTS: 1 REF: 231 OBJ: 15-1 TOP: AACSB Reflective Thinking
KEY: CB&E Model Distribution MSC: BLOOMS Knowledge
2. Which U.S. retailer is the number one sales volume retailer in the world?
a.
|
Sears
|
b.
|
JCPenney
|
c.
|
Target
|
d.
|
Kroger
|
e.
|
Walmart
|
ANS: E
Walmart’s annual U.S. sales alone are greater than the next five U.S. retail giants’ sales combined.
PTS: 1 REF: 231 OBJ: 15-1 TOP: AACSB Reflective Thinking
KEY: CB&E Model Distribution MSC: BLOOMS Comprehension
3. Retail establishments are generally classified according to all of the following EXCEPT:
a.
|
ownership
|
b.
|
level of sales
|
c.
|
level of service
|
d.
|
price
|
e.
|
product assortment
|
ANS: B
The four elements used to classify retail establishments are its ownership, level of service, product assortment, and price.
PTS: 1 REF: 232 OBJ: 15-2 TOP: AACSB Reflective Thinking
KEY: CB&E Model Distribution MSC: BLOOMS Analysis
4. A retail store can be classified according to its:
a.
|
distribution method
|
b.
|
inventory control
|
c.
|
product assortment
|
d.
|
management style
|
e.
|
decor and atmosphere
|
ANS: C
A retail establishment can be classified according to its ownership, level of service, product assortment, and price.
PTS: 1 REF: 232 OBJ: 15-2 TOP: AACSB Reflective Thinking
KEY: CB&E Model Distribution MSC: BLOOMS Comprehension
5. Around the world, most retailers are _____, operating one or a few stores in their community, owned by a single person or partnership and not operated as part of a larger retail institution.
a.
|
independent
|
b.
|
chain stores
|
c.
|
franchise outlets
|
d.
|
specialty clubs
|
e.
|
product assortment stores
|
ANS: A
Independent retail outlets are owned by a single person or partnership and not operated as part of a larger retail institution.
PTS: 1 REF: 232 OBJ: 15-2 TOP: AACSB Reflective Thinking
KEY: CB&E Model Distribution MSC: BLOOMS Comprehension
6. Small neighborhood florists, shoe stores, and ethnic food markets are most likely to be:
a.
|
supercenters
|
b.
|
franchise outlets
|
c.
|
membership clubs
|
d.
|
chain stores
|
e.
|
independent retailers
|
ANS: E
These are examples of independent retailers.
PTS: 1 REF: 232 OBJ: 15-2 TOP: AACSB Reflective Thinking
KEY: CB&E Model Distribution MSC: BLOOMS Application
7. Tiffany owns a gift shop that carries clothing and memorabilia of local high school teams as well as home decor objects. She is the sole owner of the store, so in terms of ownership, her store would be classified as a(n):
a.
|
independent retailer
|
b.
|
freestanding store
|
c.
|
franchise
|
d.
|
chain store
|
e.
|
common retailer
|
ANS: A
Independent retailer stores are owned by a single person or partnership and not operated as part of a larger retail institution.
PTS: 1 REF: 232 OBJ: 15-2 TOP: AACSB Reflective Thinking
KEY: CB&E Model Distribution MSC: BLOOMS Application
8. Stores that are owned and operated as a group by a single organization are called _____. Under this form of ownership, many administrative tasks are handled by the home office.
a.
|
home base stores
|
b.
|
independent retailers
|
c.
|
franchisees
|
d.
|
chain stores
|
e.
|
strip centers
|
ANS: D
This is the definition of chain stores.
PTS: 1 REF: 232 OBJ: 15-2 TOP: AACSB Reflective Thinking
KEY: CB&E Model Distribution MSC: BLOOMS Knowledge
9. Which type of retail ownership is owned and operated by an individual but is licensed by a larger supporting organization?
a.
|
Independent retailer
|
b.
|
Chain store
|
c.
|
Franchise
|
d.
|
Cooperative
|
e.
|
Secondary retailer
|
ANS: C
This describes a franchise.
PTS: 1 REF: 232 OBJ: 15-2 TOP: AACSB Reflective Thinking
KEY: CB&E Model Distribution MSC: BLOOMS Knowledge
10. Rick owns and operates his own UPS shipping store. He has licensed the right to use UPS business systems. Rick’s shipping store is a:
a.
|
doubly managed outlet
|
b.
|
chain store
|
c.
|
franchise
|
d.
|
independent retailer
|
e.
|
licensor
|
ANS: C
Franchises are owned and operated by individuals but are licensed by larger supporting organizations.
PTS: 1 REF: 232 OBJ: 15-2 TOP: AACSB Reflective Thinking
KEY: CB&E Model Distribution MSC: BLOOMS Application
11. The number of different varieties of fishing lures carried by the Angler’s Store refers to the store’s:
a.
|
store’s supply standard
|
b.
|
complete retail offering
|
c.
|
retail mix
|
d.
|
volume
|
e.
|
assortment depth
|
ANS: E
Breadth and depth refers to product assortment.
PTS: 1 REF: 232 OBJ: 15-2 TOP: AACSB Reflective Thinking
KEY: CB&E Model Distribution MSC: BLOOMS Application
12. Which of the following types of stores has a high gross margin, a narrow product assortment, and a high level of service?
a.
|
A supermarket
|
b.
|
A warehouse club
|
c.
|
A convenience store
|
d.
|
A full-line discount store
|
e.
|
A specialty store
|
ANS: E
These are characteristics of specialty stores. See Exhibit 15.1.
PTS: 1 REF: 232 OBJ: 15-2 TOP: AACSB Reflective Thinking
KEY: CB&E Model Distribution MSC: BLOOMS Comprehension
13. _____ shows how much the retailer makes as a percentage of sales after the cost of goods sold is subtracted.
a.
|
Net income
|
b.
|
Retained earnings
|
c.
|
Profitability
|
d.
|
Net equity
|
e.
|
Gross margin
|
ANS: E
This is the definition of gross margin.
PTS: 1 REF: 233 OBJ: 15-2 TOP: AACSB Reflective Thinking
KEY: CB&E Model Pricing MSC: BLOOMS Knowledge
14. As a general rule of thumb, a retailer that has a high gross margin will have:
a.
|
m-commerce capabilities
|
b.
|
an inventory management system
|
c.
|
low prices
|
d.
|
salespeople trained in cross-selling techniques
|
e.
|
high prices
|
ANS: E
The level of gross margin and the price level generally match.
PTS: 1 REF: 233 OBJ: 15-2 TOP: AACSB Reflective Thinking
KEY: CB&E Model Pricing MSC: BLOOMS Comprehension
15. Housing several departments under one roof, a _____ carries a wide variety of shopping and specialty goods, including apparel, cosmetics, housewares, electronics, and sometimes furniture.
a.
|
supermarket
|
b.
|
specialty store
|
c.
|
convenience store
|
d.
|
super club
|
e.
|
department store
|
ANS: E
Department stores house several departments under one roof.
PTS: 1 REF: 233 OBJ: 15-3 TOP: AACSB Reflective Thinking
KEY: CB&E Model Distribution MSC: BLOOMS Knowledge
16. Which type of retail store would typically have the highest labor costs?
a.
|
A warehouse club
|
b.
|
A department store
|
c.
|
An off-price store
|
d.
|
An off-price retailer
|
e.
|
A discount store
|
ANS: B
A department store carries a wide variety of shopping and specialty goods in several departments and provides a high level of service, all of which is labor intensive and adds to the cost of doing business.
PTS: 1 REF: 233 OBJ: 15-3 TOP: AACSB Reflective Thinking
KEY: CB&E Model Distribution MSC: BLOOMS Comprehension
17. 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.
a.
|
franchisee
|
b.
|
financial broker
|
c.
|
comptroller
|
d.
|
human resources manager
|
e.
|
buyer
|
ANS: E
A buyer is a department head who selects the merchandise for his or her department and may also be responsible for promotion and personnel.
PTS: 1 REF: 233 OBJ: 15-3 TOP: AACSB Reflective Thinking
KEY: CB&E Model Distribution MSC: BLOOMS Knowledge
18. The buyer who heads a department in a department store is responsible for the:
a.
|
store’s exchange and return policies
|
b.
|
store’s credit policies
|
c.
|
chain’s expansion efforts
|
d.
|
merchandise mix in that department
|
e.
|
store’s advertising program
|
ANS: D
Each department in a department store is usually headed by a buyer who selects the merchandise mix for the department and may also choose the promotional devices and personnel for that department.
PTS: 1 REF: 233 OBJ: 15-3 TOP: AACSB Reflective Thinking
KEY: CB&E Model Distribution MSC: BLOOMS Comprehension
19. The _____ at John Lewis, Britain’s largest department store chain, selects the merchandise for his or her department and is often responsible for its promotion and for managing the personnel in that department.
a.
|
buyer
|
b.
|
purchasing agent
|
c.
|
retail broker
|
d.
|
merchandiser
|
e.
|
franchisee
|
ANS: A
Each department in a department store is usually headed by a buyer who selects the merchandise mix for the department and may also choose the promotional devices and personnel for that department.
PTS: 1 REF: 233 OBJ: 15-3 TOP: AACSB Reflective Thinking
KEY: CB&E Model Distribution MSC: BLOOMS Application
20. Which type of retail store specializes in a given type of merchandise?
a.
|
An independent store
|
b.
|
A department store
|
c.
|
A discount store
|
d.
|
A specialty store
|
e.
|
A first-level store
|
ANS: D
This is the definition of a specialty store.
PTS: 1 REF: 234 OBJ: 15-3 TOP: AACSB Reflective Thinking
KEY: CB&E Model Distribution MSC: BLOOMS Knowledge
21. James wants to open a small store that offers only products, knowledge, and advice for those who like to build Hot Rods, Street Rods, and refurbish classic cars. Which of the following types of stores would most likely support an effective launch of his business idea?
a.
|
An off-price retailer
|
b.
|
A specialty store
|
c.
|
A full-discount store
|
d.
|
A general store
|
e.
|
A warehouse club
|
ANS: B
Specialty stores specialize in a given type of merchandise.
PTS: 1 REF: 234 OBJ: 15-3 TOP: AACSB Reflective Thinking
KEY: CB&E Model Distribution MSC: BLOOMS Application
22. Texas-based Grape Vine Market is an 18,000-square-foot store offering highly collectible food and wine—along with some other culinary perks, including a cooking school—all in a setting crafted to make shoppers feel comfortable. It stocks more than 5,500 different kinds of wine. Grape Vine Market is best described as a:
a.
|
hypermarket
|
b.
|
convenience store
|
c.
|
specialty store
|
d.
|
department store
|
e.
|
general store
|
ANS: C
A specialty store is a retail store specializing in a given type of merchandise.
PTS: 1 REF: 234 OBJ: 15-3 TOP: AACSB Reflective Thinking
KEY: CB&E Model Distribution MSC: BLOOMS Application
23. Which of the following statements about specialty stores is true?
a.
|
Customers usually consider price to be the most important factor in their selection of a specialty store.
|
b.
|
Customers at specialty stores are not concerned with the distinctiveness of the merchandise or the store’s physical appearance.
|
c.
|
Specialty stores typically avoid price wars.
|
d.
|
Specialty stores are ineffective test markets.
|
e.
|
A typical specialty store carries a wider assortment of specialty merchandise than department stores.
|
ANS: C
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.
PTS: 1 REF: 234 OBJ: 15-3 TOP: AACSB Reflective Thinking
KEY: CB&E Model Distribution MSC: BLOOMS Evaluation
24. _____ are large, departmentalized, self-service retailers that specialize in food and some nonfood items.
a.
|
Supermarkets
|
b.
|
Convenience stores
|
c.
|
Membership wholesale clubs
|
d.
|
Discount stores
|
e.
|
Assortment merchandisers
|
ANS: A
This is the definition of a supermarket.
PTS: 1 REF: 234 OBJ: 15-3 TOP: AACSB Reflective Thinking
KEY: CB&E Model Distribution MSC: BLOOMS Knowledge
25. Giant Eagle is a chain of retail outlets in Ohio, West Virginia, Maryland, and Pennsylvania that are described as large, departmentalized, self-service stores that specialize in food and limited nonfood items. Giant Eagle stores are:
a.
|
off-price retailers
|
b.
|
discount stores
|
c.
|
wholesale clubs
|
d.
|
convenience stores
|
e.
|
supermarkets
|
ANS: E
The key factors are the emphasis on food and the size of the stores.
PTS: 1 REF: 234 OBJ: 15-3 TOP: AACSB Reflective Thinking
KEY: CB&E Model Distribution MSC: BLOOMS Application
26. When supermarkets offer a wide variety of nontraditional goods and services under one roof, they are engaged in:
a.
|
cross-selling
|
b.
|
trading up
|
c.
|
scrambled merchandising
|
d.
|
disintermediation
|
e.
|
cross-docking
|
ANS: C
This is the definition of scrambled merchandising.
PTS: 1 REF: 234 OBJ: 15-3 TOP: AACSB Reflective Thinking
KEY: CB&E Model Distribution MSC: BLOOMS Knowledge
27. Kroger is the second-largest supermarket chain in the United States. Which of the following is the most likely reason why Kroger supermarkets sell all types of foodstuffs as well as nonfood products including a wide range of eyewear and accessories?
a.
|
Consumer demand for one-stop shopping often leads to scrambled merchandising.
|
b.
|
The fulfillment of the wheel of retailing hypothesis
|
c.
|
Inflationary economic climate
|
d.
|
Repositioning as a discounter
|
e.
|
Growth of convenience merchandising
|
ANS: A
In many cases, supermarkets offer a wide variety of nontraditional goods and services under one roof (a strategy called scrambled merchandising) to respond to consumers who want convenience.
PTS: 1 REF: 234 OBJ: 15-3 TOP: AACSB Reflective Thinking
KEY: CB&E Model Distribution MSC: BLOOMS Application
28. Safeway, Avanza (for the Hispanic market), Publix, 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:
a.
|
convenience merchandising
|
b.
|
retail wheeling
|
c.
|
specialty service
|
d.
|
trade-up positioning
|
e.
|
scrambled merchandising
|
ANS: E
In many cases, supermarkets offer a wide variety of nontraditional goods and services under one roof, which is a strategy called scrambled merchandising.
PTS: 1 REF: 234 OBJ: 15-3 TOP: AACSB Reflective Thinking
KEY: CB&E Model Distribution MSC: BLOOMS Application
29. _____ 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.
a.
|
Specialty stores
|
b.
|
Wholesale stores
|
c.
|
Convenience stores
|
d.
|
Factory outlets
|
e.
|
General stores
|
ANS: C
This describes convenience stores.
PTS: 1 REF: 235 OBJ: 15-3 TOP: AACSB Reflective Thinking
KEY: CB&E Model Distribution MSC: BLOOMS Knowledge
30. Prices are usually higher in convenience stores than in supermarkets because convenience stores offer:
a.
|
more specialty goods
|
b.
|
a wider variety of products
|
c.
|
a higher level of customer services
|
d.
|
better location, longer hours, and faster service
|
e.
|
higher-quality goods
|
ANS: D
Convenience stores carry a limited amount of high-turnover, high-priced goods and resemble miniature supermarkets. Customers patronize these stores because of convenience.
PTS: 1 REF: 235 OBJ: 15-3 TOP: AACSB Reflective Thinking
KEY: CB&E Model Distribution MSC: BLOOMS Comprehension
31. Flash Foods is the name of a chain of convenience stores with self-service gas pumps. What do you know about the convenience stores?
a.
|
They carry a wide assortment of products.
|
b.
|
They carry a limited line of high-turnover goods.
|
c.
|
They compete on the basis of low price.
|
d.
|
They carry a limited but deep assortment of products.
|
e.
|
They carry the freshest of produce.
|
ANS: B
Convenience stores carry a limited line of high-turnover, high-priced goods and resemble miniature supermarkets.
PTS: 1 REF: 235 OBJ: 15-3 TOP: AACSB Reflective Thinking
KEY: CB&E Model Distribution MSC: BLOOMS Application
32. _____ are retailers that compete on the basis of low prices, high turnover, and high volume.
a.
|
Convenience outlets
|
b.
|
Discount stores
|
c.
|
General stores
|
d.
|
Department stores
|
e.
|
Specialty stores
|
ANS: B
This is the definition of discount stores. Convenience stores are miniature supermarkets, carrying only a limited line of high-turnover convenience goods.
PTS: 1 REF: 235 OBJ: 15-3 TOP: AACSB Reflective Thinking
KEY: CB&E Model Distribution MSC: BLOOMS Knowledge
33. Discount stores:
a.
|
compete on the basis of low prices, high turnover, and high volume
|
b.
|
offer more SKUs than department stores
|
c.
|
sell high-priced, low-turnover products
|
d.
|
provide their customers with full service
|
e.
|
compete on the basis of assortment and depth
|
ANS: A
Discount stores compete on the basis of low prices, high turnover, and high volume.
PTS: 1 REF: 235 OBJ: 15-3 TOP: AACSB Reflective Thinking
KEY: CB&E Model Distribution MSC: BLOOMS Analysis
34. Which type of discount store offers consumers very limited service and carries a broad assortment of nationally branded “hard goods,” such as housewares, toys, automotive parts, clothing, bedding, and maybe a limited line of nonperishable food items?
a.
|
Full-line discount stores
|
b.
|
Discount specialty stores
|
c.
|
Factory outlets
|
d.
|
Fashion stores
|
e.
|
Specialty supercenters
|
ANS: A
This describes full-line discounters, which are often called mass merchandisers.
PTS: 1 REF: 235 OBJ: 15-3 TOP: AACSB Reflective Thinking
KEY: CB&E Model Distribution MSC: BLOOMS Knowledge
35. _____ is the retailing strategy of using moderate to low prices on large quantities of products and lower service to stimulate a high turnover of inventory.
a.
|
Specialty store positioning
|
b.
|
Merchandise positioning
|
c.
|
M-store retailing
|
d.
|
The wheel of retailing
|
e.
|
Mass merchandising
|
ANS: E
This describes full-line discounters, which are often called mass merchandisers.
PTS: 1 REF: 235 OBJ: 15-3 TOP: AACSB Reflective Thinking
KEY: CB&E Model Distribution MSC: BLOOMS Knowledge
36. Kmart utilizes a strategy of moderate to low prices on large quantities of products and lower levels of service to stimulate a high turnover of inventory. Kmart offers a wide variety of different product lines. Kmart is an example of a:
a.
|
factory outlet
|
b.
|
mass merchandiser
|
c.
|
convenience store
|
d.
|
franchising operation
|
e.
|
specialty store
|
ANS: B
Mass merchandising is the retailing strategy whereby retailers use moderate to low prices on large quantities of merchandise and lower levels of service to stimulate high turnover of products.
PTS: 1 REF: 235 OBJ: 15-3 TOP: AACSB Reflective Thinking
KEY: CB&E Model Distribution MSC: BLOOMS Application
37. A retail operation that has a 90,000-square-foot facility and houses a florist, baker, bank, craft shop, photo finisher, dry cleaner, and pharmacy under the same roof as grocery and household items would be called a:
a.
|
membership warehouse club
|
b.
|
wholesale outlet
|
c.
|
factory outlet
|
d.
|
supercenter
|
e.
|
mass merchandiser
|
ANS: D
Supercenters offer an array of products and services, as well as groceries.
PTS: 1 REF: 235 OBJ: 15-3 TOP: AACSB Reflective Thinking
KEY: CB&E Model Distribution MSC: BLOOMS Application
38. _____ are single-line stores that offer a nearly complete selection of one line of merchandise and use self-service, discount prices, high volume, and high turnover of merchandise to their advantage.
a.
|
Specialty discount stores
|
b.
|
Factory outlets
|
c.
|
Mass merchandisers
|
d.
|
Membership clubs
|
e.
|
General stores
|
ANS: A
This describes specialty discount stores, which are also called category killers.
PTS: 1 REF: 235 OBJ: 15-3 TOP: AACSB Reflective Thinking
KEY: CB&E Model Distribution MSC: BLOOMS Knowledge
39. Glen’s Safety First! sells a huge assortment of firefighting equipment at greatly reduced prices. It offers customers few services and competes on the basis of moderate to low prices on the large quantities of merchandise it stocks. Glen’s Safety First! is an example of a:
a.
|
full-line discount store
|
b.
|
specialty discount store
|
c.
|
general store
|
d.
|
department store
|
e.
|
wholesale store
|
ANS: B
A specialty discount store (also called a category killer) offers a nearly complete selection of single-line merchandise and uses self-service, discount prices, high volume, and high turnover to its advantage.
PTS: 1 REF: 235 OBJ: 15-3 TOP: AACSB Reflective Thinking
KEY: CB&E Model Distribution MSC: BLOOMS Application
40. Specialty stores such as Best Buy, Babies “R” Us, and Bed, Bath, and Beyond are often called category killers because:
a.
|
they can destroy the profit potential for a category of merchandise for other retailers
|
b.
|
they are located at stand-alone sites
|
c.
|
of their broad merchandise mix and shallow assortment
|
d.
|
they offer an exclusive category of merchandise
|
e.
|
they carry only fast-selling items
|
ANS: A
Because these stores dominate their narrow merchandise segment, they are called category killers.
PTS: 1 REF: 235 OBJ: 15-3 TOP: AACSB Reflective Thinking
KEY: CB&E Model Distribution MSC: BLOOMS Application
41. _____ sell a limited selection of brand name appliances, household items, and groceries, usually in bulk on a cash-and-carry basis to members only.
a.
|
Super outlets
|
b.
|
Factory outlets
|
c.
|
Wholesale discounters
|
d.
|
Off-price discount retailers
|
e.
|
Warehouse membership clubs
|
ANS: E
This describes warehouse membership clubs.
PTS: 1 REF: 236 OBJ: 15-3 TOP: AACSB Reflective Thinking
KEY: CB&E Model Distribution MSC: BLOOMS Knowledge
42. Laura buys supplies for her catering business at a retailer that stocks a limited selection of items, which are sold in bulk on a cash-and-carry basis to members only. As she browses through the huge store, she buys flour, a set of muffin pans, and a package of paper towels as well as an assortment of fresh produce. Laura is most likely shopping at a(n):
a.
|
off-price discount retailer
|
b.
|
factory outlet
|
c.
|
industrial supply warehouse
|
d.
|
warehouse membership club
|
e.
|
wholesale outlet
|
ANS: D
Warehouse membership clubs sell a limited selection of brand name appliances, household items, and groceries, usually in bulk on a cash-and-carry basis to members only.
PTS: 1 REF: 236 OBJ: 15-3 TOP: AACSB Reflective Thinking
KEY: CB&E Model Distribution MSC: BLOOMS Application
43. Off-price retailers:
a.
|
are often able to take advantage of manufacturers’ faulty sales forecasting
|
b.
|
very often offer a consistent assortment of merchandise
|
c.
|
seldom stock brand name merchandise
|
d.
|
are owned by the manufacturer of the products they sell
|
e.
|
offer very deep assortments
|
ANS: A
Off-price retailers buy manufacturers’ overruns at cost or even less.
PTS: 1 REF: 236 OBJ: 15-3 TOP: AACSB Reflective Thinking
KEY: CB&E Model Distribution MSC: BLOOMS Analysis
44. A publisher of books on holiday decorating, cooking, and crafts has to find a way to dispose of its overruns and unsold end-of-season output. As a marketing consultant, you suggest the firm sell the merchandise to:
a.
|
mass merchandisers
|
b.
|
convenience stores
|
c.
|
department stores
|
d.
|
supermarkets
|
e.
|
off-price discount retailers
|
ANS: E
Off-price discount retailers purchase goods at cost or less from manufacturers’ overruns, bankruptcies, irregular stock supplies, and unsold end-of-season output. The other four categories may be current customers and would not have a use for the overruns and out-of-season stock.
PTS: 1 REF: 236 OBJ: 15-3 TOP: AACSB Reflective Thinking
KEY: CB&E Model Distribution MSC: BLOOMS Application
45. A _____ is an off-price retailer that is owned and operated by a manufacturer and carries one line of merchandise––its own.
a.
|
mass merchandiser
|
b.
|
factory outlet
|
c.
|
wholesale club
|
d.
|
discount store
|
e.
|
bargain basement store
|
ANS: B
This describes a factory outlet.
PTS: 1 REF: 236 OBJ: 15-3 TOP: AACSB Reflective Thinking
KEY: CB&E Model Distribution MSC: BLOOMS Knowledge
46. Well-known manufacturers such as Bose, Ralph Lauren, and Reebok have decided that the most profitable way to dispose of out-of-season and irregular stock is to open stores and sell their own merchandise. These stores are types of:
a.
|
seasonal outlets
|
b.
|
mass merchandisers
|
c.
|
factory outlets
|
d.
|
discount stores
|
e.
|
bargain basements
|
ANS: C
Factory outlets are a type of off-price retailer that is owned and operated by a manufacturer and carries one line of merchandise––its own.
PTS: 1 REF: 236 OBJ: 15-3 TOP: AACSB Reflective Thinking
KEY: CB&E Model Distribution MSC: BLOOMS Application
47. Which of the following statements about restaurants is true?
a.
|
Restaurants are clearly a retailing establishment.
|
b.
|
There is a strong demand for many more restaurants.
|
c.
|
The demographic issue of time-poor consumers has led to a growing demand for restaurants.
|
d.
|
Because barriers to entry are low, the restaurant business appeals to many people.
|
e.
|
Restaurants are clearly a service industry.
|
ANS: D
According to the text, restaurants straddle the line between a retailing establishment and a service industry. Time poverty is not a demographic factor. At the moment, food-service companies are generally overexpanded.
PTS: 1 REF: 236 OBJ: 15-3 TOP: AACSB Reflective Thinking
KEY: CB&E Model Distribution MSC: BLOOMS Evaluation
48. _____ refers to shopping without visiting a store and is currently growing faster than in-store shopping because of the consumer demand for convenience.
a.
|
Nonstore retailing
|
b.
|
Customerization
|
c.
|
Hypershopping
|
d.
|
Niche marketing
|
e.
|
Specialty merchandising
|
ANS: A
Nonstore retailing is selling to consumers through other means than by visiting a store.
PTS: 1 REF: 237 OBJ: 15-4 TOP: AACSB Reflective Thinking
KEY: CB&E Model Distribution MSC: BLOOMS Knowledge
49. Which of the following statements about nonstore retailing is true?
a.
|
The nature of the communications between the retailer and the customer is the same in all forms of nonstore retailing.
|
b.
|
Nonstore retailing is currently growing faster than in-store retailing.
|
c.
|
More than 80 percent of all sales are made through nonstore retailing.
|
d.
|
The high growth rate for nonstore retailing is due to the growth of shop-at-home television networks.
|
e.
|
Nonstore retailing is increasing at a rate lower than in-store retailing.
|
ANS: B
Nonstore retailing refers to shopping without visiting a store; convenience is playing a major role in the growth of nonstore business.
PTS: 1 REF: 237 OBJ: 15-4 TOP: AACSB Reflective Thinking
KEY: CB&E Model Distribution MSC: BLOOMS Evaluation
50. _____ is a low-profile yet important form of retailing in which consumers get products out of automated machines, and it accounts for billions of dollars worth of goods each year in the United States.
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