Party-plan selling
c.
|
Direct marketing
|
d.
|
A pyramid scheme
|
e.
|
Professional selling
|
ANS: A
Automatic vending is the use of machines to offer goods for sale.
PTS: 1 REF: 237 OBJ: 15-4 TOP: AACSB Reflective Thinking
KEY: CB&E Model Distribution MSC: BLOOMS Knowledge
51. Which type of retailing is the selling of products by representatives who work door-to-door, office-to-office, or at home sales parties?
a.
|
Personal marketing
|
b.
|
Remote retailing
|
c.
|
Direct retailing
|
d.
|
Off-site retailing
|
e.
|
Primary retailing
|
ANS: C
This is the definition of direct retailing.
PTS: 1 REF: 237 OBJ: 15-4 TOP: AACSB Reflective Thinking
KEY: CB&E Model Distribution MSC: BLOOMS Knowledge
52. The manufacturer of Cutco knives uses students as salespeople. The salespeople go into customers’ homes and demonstrate the product, and the sales transactions usually occur in a home setting. This form of nonstore retailing is called:
a.
|
direct retailing
|
b.
|
personal marketing
|
c.
|
direct marketing
|
d.
|
automatic vending
|
e.
|
electronic retailing
|
ANS: A
Direct retailing is the selling of products by representatives who work door-to-door, office-to-office, or at home sales parties.
PTS: 1 REF: 237 OBJ: 15-4 TOP: AACSB Reflective Thinking
KEY: CB&E Model Distribution MSC: BLOOMS Application
53. Susan Adams makes children’s clothing. She is also the sales representatives and sets up parties and fashion shows at homes of mothers to demonstrate the quality and value of her clothing. Susan is using:
a.
|
primary marketing
|
b.
|
automatic vending
|
c.
|
personal marketing
|
d.
|
electronic retailing
|
e.
|
direct retailing
|
ANS: E
Direct retailing includes door-to-door selling and party plans.
PTS: 1 REF: 237 OBJ: 15-4 TOP: AACSB Reflective Thinking
KEY: CB&E Model Distribution MSC: BLOOMS Application
54. _____ refers to the techniques used to get consumers to buy from their home. Those techniques include direct mail, catalogs and mail-order, telemarketing, and electronic retailing.
a.
|
Nonstore vending
|
b.
|
In-home retailing
|
c.
|
Franchising
|
d.
|
Direct marketing
|
e.
|
Direct retailing
|
ANS: D
Direct marketing includes techniques, such as catalogs and telemarketing, to get consumers to make a purchase from their home, office, or other nonretail setting.
PTS: 1 REF: 238 OBJ: 15-4 TOP: AACSB Reflective Thinking
KEY: CB&E Model Strategy MSC: BLOOMS Knowledge
55. Marketers can precisely target their customers according to demographics, geographics, and psychographics with:
a.
|
direct mail
|
b.
|
vending machines
|
c.
|
franchise stores
|
d.
|
specialty retail outlets
|
e.
|
electronic selling
|
ANS: A
Good mailing lists come from an internal database or from list brokers.
PTS: 1 REF: 238 OBJ: 15-4 TOP: AACSB Reflective Thinking
KEY: CB&E Model Strategy MSC: BLOOMS Comprehension
56. _____ is the use of the telephone to sell directly to consumers.
a.
|
Telemarketing
|
b.
|
Two-way vending
|
c.
|
Teleprompting
|
d.
|
Indirect marketing
|
e.
|
Phone vending
|
ANS: A
This is the definition of telemarketing.
PTS: 1 REF: 238 OBJ: 15-4 TOP: AACSB Reflective Thinking
KEY: CB&E Model Strategy MSC: BLOOMS Knowledge
57. Telemarketing can consist of either unsolicited _____ sales calls, or _____ sales calls, which allow companies to receive orders through toll-free telephone numbers.
a.
|
order placement; lead generation
|
b.
|
push strategy; pull strategy
|
c.
|
systematic; synergistic
|
d.
|
qualifying; finalizing
|
e.
|
outbound; inbound
|
ANS: E
Outbound telemarketing is generally used for unsolicited selling, while inbound calls are from customers placing orders.
PTS: 1 REF: 238 OBJ: 15-4 TOP: AACSB Technology
KEY: CB&E Model Strategy MSC: BLOOMS Comprehension
58. Amy received a phone call last night during supper. The caller wanted her to attend a meeting to learn about timeshares. Since Amy had never thought of purchasing this type of product before she received the call, this is obviously an example of _____ telemarketing.
a.
|
outbound
|
b.
|
lead generation
|
c.
|
customer service
|
d.
|
inbound
|
e.
|
relationship
|
ANS: A
Outbound telemarketing is generally used for unsolicited selling.
PTS: 1 REF: 238 OBJ: 15-4 TOP: AACSB Technology
KEY: CB&E Model Strategy MSC: BLOOMS Application
59. The Mad Stencilist has decided to demonstrate how to use its products to create custom gift tags on a local cable television channel and is encouraging shoppers to call a toll-free number to purchase the merchandise with a credit card. This form of retailing is called a(n):
a.
|
in-store electronic shopping
|
b.
|
videotex
|
c.
|
shop-at-home network
|
d.
|
electronic point of sale
|
e.
|
catalog viewing
|
ANS: C
Using a television channel to display goods that are sold over the phone is the shop-at-home network format.
PTS: 1 REF: 239 OBJ: 15-4 TOP: AACSB Reflective Thinking
KEY: CB&E Model Strategy MSC: BLOOMS Application
60. _____ is a type of shopping available to consumers with access to the Internet.
a.
|
Shop-at-home networks
|
b.
|
Online retailing
|
c.
|
Franchising
|
d.
|
Electronic wholesaling
|
e.
|
Mobile vending
|
ANS: B
Online retailing is also called e-tailing and is a type of shopping available to consumers with access to the Internet.
PTS: 1 REF: 239 OBJ: 15-4 TOP: AACSB Reflective Thinking
KEY: CB&E Model Distribution MSC: BLOOMS Knowledge
61. The Cedar Store carries a full line of cedar swings, gliders, garden benches, and tables. All of its products can be purchased through its Web site. The site has done well since the Cedar Store’s products do not need to be touched or smelled before purchase. The Cedar Store is engaging in:
a.
|
online retailing
|
b.
|
shop-at-home networking
|
c.
|
mobile vending
|
d.
|
franchising
|
e.
|
electronic wholesaling
|
ANS: A
Online retailing is a two-way interactive service offered to users with personal computers.
PTS: 1 REF: 239 OBJ: 15-4 TOP: AACSB Technology
KEY: CB&E Model Distribution MSC: BLOOMS Application
62. A(n) _____ is a continuing relationship in which an individual or business grants business rights to operate or sell a product to another individual or business.
a.
|
leasing contract
|
b.
|
alliance for profit
|
c.
|
brokered partnership
|
d.
|
franchise
|
e.
|
countertrade
|
ANS: D
The franchisor grants the rights to the franchisee.
PTS: 1 REF: 241 OBJ: 15-5 TOP: AACSB Reflective Thinking
KEY: CB&E Model Distribution MSC: BLOOMS Knowledge
63. Who is the originator of a trade name, product, methods of operation, and so on that grants operating rights to another party to sell its product?
a.
|
The renter
|
b.
|
The lessor
|
c.
|
The franchisor
|
d.
|
The franchisee
|
e.
|
The owner/operator
|
ANS: C
The franchisor grants rights to the franchisee in franchise relationships.
PTS: 1 REF: 241 OBJ: 15-5 TOP: AACSB Reflective Thinking
KEY: CB&E Model Distribution MSC: BLOOMS Knowledge
64. The party in a franchise relationship that is an individual or business granted the right to sell another party’s product is called the:
a.
|
franchisor
|
b.
|
franchisee
|
c.
|
receiver
|
d.
|
renter
|
e.
|
owner/operator
|
ANS: B
The franchisee sells the franchisor’s products.
PTS: 1 REF: 241 OBJ: 15-5 TOP: AACSB Reflective Thinking
KEY: CB&E Model Distribution MSC: BLOOMS Knowledge
65. Which form of franchising involves a dealer agreeing to sell certain products provided by a manufacturer or a wholesaler?
a.
|
Primary franchising
|
b.
|
Product and trade name franchising
|
c.
|
Business format franchising
|
d.
|
Limited franchising
|
e.
|
Focused franchising
|
ANS: B
This describes product and trade name franchising. Examples include Coca-Cola bottlers and retailers selling Michelin tires.
PTS: 1 REF: 241 OBJ: 15-5 TOP: AACSB Reflective Thinking
KEY: CB&E Model Distribution MSC: BLOOMS Knowledge
66. Chattanooga Bottling Company is licensed to bottle Coke products. The Chattanooga Bottling Company is an example of a:
a.
|
product and trade name franchisee
|
b.
|
redistributor franchisor
|
c.
|
business format franchisee
|
d.
|
licensed franchisor
|
e.
|
relationship franchisee
|
ANS: A
In product and trade name franchising, a dealer agrees to sell certain products provided by a manufacturer or wholesaler.
PTS: 1 REF: 241 OBJ: 15-5 TOP: AACSB Reflective Thinking
KEY: CB&E Model Distribution MSC: BLOOMS Application
67. A retailer in Winnsboro, Louisiana, is licensed to sell John Deere tractors. This retailer is a:
a.
|
product and trade name franchisee
|
b.
|
restricted franchisor
|
c.
|
business format franchisee
|
d.
|
licensed franchisor
|
e.
|
relationship franchisee
|
ANS: A
In product and trade name franchising, a dealer agrees to buy or sell certain products or product lines from a supplier.
PTS: 1 REF: 241 OBJ: 15-5 TOP: AACSB Reflective Thinking
KEY: CB&E Model Distribution MSC: BLOOMS Application
68. Which form of franchising is an ongoing business relationship between a franchisor and a franchisee where the franchisor “sells” a franchisee the rights to use the franchisor’s approach to doing business?
a.
|
Primary franchising
|
b.
|
Product and trade name franchising
|
c.
|
Business format franchising
|
d.
|
Process franchising
|
e.
|
Service franchising
|
ANS: C
This describes business format franchising. Examples include restaurant, hotel and motel, printing, and real estate franchises.
PTS: 1 REF: 241 OBJ: 15-5 TOP: AACSB Reflective Thinking
KEY: CB&E Model Distribution MSC: BLOOMS Knowledge
69. Domino’s pizza, Hyatt Corporation, and Wendy’s are all examples of _____ because the franchisee buys the right to use the franchisor’s approach to doing business.
a.
|
product and trade name franchisors
|
b.
|
redistributor franchisors
|
c.
|
business format franchisors
|
d.
|
licensed franchisors
|
e.
|
relationship franchisors
|
ANS: C
Business format franchising is an ongoing relationship between a franchisor and a franchisee in which the franchisor sells a franchisee the rights to use a format or approach to doing business.
PTS: 1 REF: 241 OBJ: 15-5 TOP: AACSB Reflective Thinking
KEY: CB&E Model Distribution MSC: BLOOMS Application
70. Arby’s, Jiffy-Lube, Baskin-Robbins, and Sylvan Learning Centers are examples of _____ because the franchisee buys the right to use the franchisor’s approach to doing business.
a.
|
trade name franchising
|
b.
|
product franchising
|
c.
|
business format franchising
|
d.
|
franchise wholesaling
|
e.
|
logistic franchising
|
ANS: C
Business format franchising is an ongoing relationship between a franchisor and a franchisee in which the franchisor sells a franchisee the rights to use a format or approach to doing business.
PTS: 1 REF: 241 OBJ: 15-5 TOP: AACSB Reflective Thinking
KEY: CB&E Model Distribution MSC: BLOOMS Application
71. The first task of developing a retail strategy is to:
a.
|
create a buying organization
|
b.
|
decide what to buy
|
c.
|
define the target market
|
d.
|
create a promotional strategy
|
e.
|
define the pricing policies
|
ANS: C
The target market’s wants and needs form the foundation for a successful retail strategy.
PTS: 1 REF: 241 OBJ: 15-6 TOP: AACSB Reflective Thinking
KEY: CB&E Model Strategy MSC: BLOOMS Comprehension
72. Retailers control the six Ps of the retailing mix. The six Ps include the marketing mix plus:
a.
|
presentation and personnel
|
b.
|
production and people
|
c.
|
potential and perception
|
d.
|
personality and persuasion
|
e.
|
positioning and purchasing
|
ANS: A
See Exhibit 15.3.
PTS: 1 REF: 242 OBJ: 15-6 TOP: AACSB Reflective Thinking
KEY: CB&E Model Strategy MSC: BLOOMS Comprehension
73. Retailers such as Target and JCPenney are responding to consumer needs by changing product mixes, hours of operation, locations, and prices. These stores are changing aspects of their:
a.
|
merchandising groupings
|
b.
|
retailing mixes
|
c.
|
product offerings
|
d.
|
retail trade areas
|
e.
|
store positioning strategies
|
ANS: B
Retailers are altering several aspects of the six Ps of the retailing mix. See Exhibit 15.3.
PTS: 1 REF: 242 OBJ: 15-6 TOP: AACSB Reflective Thinking
KEY: CB&E Model Strategy MSC: BLOOMS Application
74. The merchandise mix:
a.
|
is the term used for price-bundled merchandise
|
b.
|
is the term for the marketing communications used by retailers
|
c.
|
refers to the six levels in a buying organization
|
d.
|
describes the composition of a traditional shopping center
|
e.
|
is the retailer’s product offering
|
ANS: E
The retailer’s product offering is the mix of products offered to the consumers, also called the product assortment or merchandise mix.
PTS: 1 REF: 242 OBJ: 15-6 TOP: AACSB Reflective Thinking
KEY: CB&E Model Strategy MSC: BLOOMS Analysis
75. Which of the following statements about a retailer’s promotion strategy is true?
a.
|
The design of the promotion strategy would be done separately from the creation of the retailing mix.
|
b.
|
The goal of a retail store’s promotion mix is to position the store in consumers’ minds.
|
c.
|
Most advertising for retailers is carried out at the national level.
|
d.
|
Retailers find direct mail marketing inefficient.
|
e.
|
Retail promotion strategy does not include public relations activities.
|
ANS: B
Promotion is part of the retailing mix and includes advertising, public relations and publicity, and sales promotions. Most advertising for retailers is carried out at the local level. Retailers have been very successful with direct marketing.
PTS: 1 REF: 243 OBJ: 15-6 TOP: AACSB Reflective Thinking
KEY: CB&E Model Promotion MSC: BLOOMS Evaluation
76. Why is the selection of a retail location so critical to a store’s success?
a.
|
Location affects pricing decisions but does not affect store image.
|
b.
|
Customers will not drive out of their way to find a store.
|
c.
|
A location decision ties up funds that will not appreciate or gain in value.
|
d.
|
A location decision typically requires long-term commitment of resources.
|
e.
|
Employee density is affected by the area in which the store is located.
|
ANS: D
One critical point about location choice is that it ties up a large amount of resources and is difficult to change.
PTS: 1 REF: 243 OBJ: 15-6 TOP: AACSB Reflective Thinking
KEY: CB&E Model Strategy MSC: BLOOMS Evaluation
77. When opening a new retail operation, the retailer needs to consider all of the following factors EXCEPT:
a.
|
traffic flow
|
b.
|
employee density
|
c.
|
nature of the competition
|
d.
|
land costs
|
e.
|
economic growth potential
|
ANS: B
Employee density is concerned with the amount of employees per 1,000 square feet in the store––not in the neighborhood. The other four factors are to be considered when deciding on a location.
PTS: 1 REF: 243-244 OBJ: 15-6 TOP: AACSB Reflective Thinking
KEY: CB&E Model Strategy MSC: BLOOMS Analysis
78. Banana Republic stores are usually built in shopping centers, but in a few cities the company has chosen to build a stand-alone store. Its freestanding store entices customers to shop because it:
a.
|
contains merchandise different from that offered in other Banana Republic stores
|
b.
|
is near a shopping center
|
c.
|
has greater visibility to customers than it would in a shopping center
|
d.
|
is an off-price retailing operation for the store chain
|
e.
|
is most likely a franchise that offers lower prices than the shopping center locations
|
ANS: C
Stand-alone stores often have greater visibility and easier access than those in a mall location.
PTS: 1 REF: 244 OBJ: 15-6 TOP: AACSB Reflective Thinking
KEY: CB&E Model Distribution MSC: BLOOMS Application
79. Large retailers such as Target and Walmart and sellers of shopping goods such as automobiles and furniture often use _____ for their locations.
a.
|
remote, rural locations
|
b.
|
office complexes
|
c.
|
factory outlets
|
d.
|
freestanding stores
|
e.
|
regional malls
|
ANS: D
Freestanding stores are often used by large retailers.
PTS: 1 REF: 244 OBJ: 15-6 TOP: AACSB Reflective Thinking
KEY: CB&E Model Distribution MSC: BLOOMS Comprehension
80. _____ are stores that consumers purposely plan to visit. They are often built as freestanding stores.
a.
|
Destination stores
|
b.
|
Benefit retailers
|
c.
|
Relationship builders
|
d.
|
Lifestyle stores
|
e.
|
M-stores
|
ANS: A
Consumers seek out destination stores.
PTS: 1 REF: 244 OBJ: 15-6 TOP: AACSB Reflective Thinking
KEY: CB&E Model Distribution MSC: BLOOMS Knowledge
81. Maggie Moo’s has decided that consumers will drive out of their way for the store’s yummy ice cream offerings. The owner needs to keep his overhead costs (such as rent) low and wants to avoid locating near competitors. For a location, Maggie Moo’s should open in a:
a.
|
factory outlet
|
b.
|
strip center
|
c.
|
freestanding store
|
d.
|
shopping center
|
e.
|
regional mall
|
ANS: C
A freestanding store has the advantage of low site costs and will be a benefit if consumers are willing to seek it out.
PTS: 1 REF: 244 OBJ: 15-6 TOP: AACSB Reflective Thinking
KEY: CB&E Model Strategy MSC: BLOOMS Application
82. Another name for an anchor store is a:
a.
|
mass merchandiser
|
b.
|
generator store
|
c.
|
host store
|
d.
|
shopping center pillar
|
e.
|
destination store
|
ANS: B
Anchor stores or generator stores are usually located at opposite ends of the mall to create heavy foot traffic.
PTS: 1 REF: 244 OBJ: 15-6 TOP: AACSB Reflective Thinking
KEY: CB&E Model Distribution MSC: BLOOMS Knowledge
83. Anchor stores:
a.
|
are the stores within the mall that sell services rather than products
|
b.
|
are often large department stores that are located at opposite ends of a mall to create a heavy pedestrian traffic flow
|
c.
|
usually specialize in high-priced items like furniture
|
d.
|
is the generic name given to supermarkets that are located within shopping malls
|
e.
|
is a term for retail stores that “drop off” to freestanding locations
|
ANS: B
This describes anchor (or generator) stores.
PTS: 1 REF: 244 OBJ: 15-6 TOP: AACSB Reflective Thinking
KEY: CB&E Model Distribution MSC: BLOOMS Analysis
84. When JCPenney announced it would open a 97,000-plus square foot anchor store in the new West Grand Promenade, it meant that JCPenney would be:
a.
|
the only large store in the shopping center
|
b.
|
a destination store
|
c.
|
expected to create heavy foot traffic for the center
|
d.
|
in an isolated location outside the shopping center structure
|
e.
|
unable to control the local store’s pricing policies
|
ANS: C
There is typically more than one anchor store in any mall. Freestanding stores are destination stores.
PTS: 1 REF: 244 OBJ: 15-6 TOP: AACSB Reflective Thinking
KEY: CB&E Model Distribution MSC: BLOOMS Application
85. The newest generation of shopping centers is:
a.
|
regional malls
|
b.
|
shopping business districts
|
c.
|
lifestyle centers
|
d.
|
franchised centers
|
e.
|
strip malls
|
ANS: C
Lifestyle centers are open-air shopping centers targeted to upper-income shoppers with an aversion for the “the mall.”
PTS: 1 REF: 244 OBJ: 15-6 TOP: AACSB Reflective Thinking
KEY: CB&E Model Distribution MSC: BLOOMS Comprehension
86. Pop-up shops are:
a.
|
Web sites that pop up while you are visiting a site
|
b.
|
m-commerce
|
c.
|
convenience retailing
|
d.
|
e-business
|
e.
|
temporary retail establishments
|
ANS: E
Pop-up shops are temporary shops that allow a flexible location without a long-term commitment.
PTS: 1 REF: 244 OBJ: 15-6 TOP: AACSB Reflective Thinking
KEY: CB&E Model Distribution MSC: BLOOMS Comprehension
87. The Halloween Super Store is only open from September until November, usually in an otherwise vacant store. This is an example of a:
a.
|
temp store
|
b.
|
m-commerce
|
c.
|
convenience retailing
|
d.
|
pop-up shop
|
e.
|
flash store
|
ANS: D
Pop-up shops are temporary shops that allow a flexible location without a long-term commitment.
PTS: 1 REF: 244 OBJ: 15-6 TOP: AACSB Reflective Thinking
KEY: CB&E Model Distribution MSC: BLOOMS Application
88. The overall impression conveyed by a store’s physical layout, decor, and surroundings is referred to as the store’s:
a.
|
atmosphere
|
b.
|
merchandising mix
|
c.
|
aura
|
d.
|
position
|
e.
|
positioning
|
ANS: A
This is the definition of atmosphere.
PTS: 1 REF: 245 OBJ: 15-6 TOP: AACSB Reflective Thinking
KEY: CB&E Model Strategy MSC: BLOOMS Knowledge
89. Many technologically advanced retailers are using a technique called _____ to analyze the huge amounts of data collected through their point-of-purchase scanning equipment that will enable them to better meet the needs of customers.
a.
|
market-basket analysis
|
b.
|
simulated test marketing
|
c.
|
product/customer correlation analysis
|
d.
|
market cross-tabulations
|
e.
|
customer lifestyle analysis
|
ANS: A
The analysis looks for products that are commonly purchased together to help retailers merchandise their stores to place products in the right places.
PTS: 1 REF: 245 OBJ: 15-6 TOP: AACSB Reflective Thinking
KEY: CB&E Model Strategy MSC: BLOOMS Knowledge
90. All of the following are factors in creating a store’s atmosphere EXCEPT:
a.
|
employee type and density
|
b.
|
fixture type and density
|
c.
|
sound
|
d.
|
price
|
e.
|
odors
|
ANS: D
Influential factors in creating a store’s atmosphere include employee type and density, merchandise type and density, fixture type and density, sound, odors, and visual factors.
PTS: 1 REF: 245-246 OBJ: 15-6 TOP: AACSB Reflective Thinking
KEY: CB&E Model Strategy MSC: BLOOMS Analysis
91. When you walk into an Apple store, you are immediately greeted by a clerk. The store is simply designed with layouts where you can experience products such as iMacs, iPhones, a variety of iPods, cameras, printers, and other accessories. If you have questions about the products, you can visit the Genius Bar. There is a place where kids can play and experience Mac to by sitting on big round cushy chairs. This description is of the store’s:
a.
|
customer service strategy
|
b.
|
atmosphere
|
c.
|
target strategy
|
d.
|
merchandise mix
|
e.
|
promotional strategy
|
ANS: B
The main element of a store’s presentation is its atmosphere, how the store’s physical layout, decor, and surroundings convey an overall impression.
PTS: 1 REF: 245-246 OBJ: 15-6 TOP: AACSB Reflective Thinking
KEY: CB&E Model Strategy MSC: BLOOMS Application
92. Home Depot has selected orange as its corporate color. It’s a good choice. At the gut level, orange connotes happiness and warmth. A recent article in one of the company’s advertising brochures spoke about choosing colors for home decorating. It referred to this color as “joyful orange.” The color orange is part of the _____ at Home Depot stores.
a.
|
cultural impact
|
b.
|
atmosphere
|
c.
|
target strategy
|
d.
|
merchandise mix
|
e.
|
promotional strategy
|
ANS: B
Color is a main ingredient of a retail atmosphere.
PTS: 1 REF: 246 OBJ: 15-6 TOP: AACSB Reflective Thinking
KEY: CB&E Model Strategy MSC: BLOOMS Application
93. Persuading customers to buy a higher-priced item than they originally intended to buy is referred to as:
a.
|
suggestion selling
|
b.
|
trading up
|
c.
|
conversion selling
|
d.
|
relationship marketing
|
e.
|
interactive selling
|
ANS: B
To avoid selling customers something they do not need or want, however, salespeople should take care when practicing trading-up techniques.
PTS: 1 REF: 246 OBJ: 15-6 TOP: AACSB Reflective Thinking
KEY: CB&E Model Promotion MSC: BLOOMS Knowledge
94. When Irvin went into Lowe’s to buy his wife a small tool set she said she wanted, the sales clerk suggested a larger set with a tool kit on wheels that included a router and circular saw. In this example, the sales clerk engaged in:
a.
|
suggestion selling
|
b.
|
trading up
|
c.
|
bait and switch
|
d.
|
customer relationship retailing
|
e.
|
service-disguised selling
|
ANS: B
Trading up means persuading customers to buy a higher-priced item than the one they intended to buy.
PTS: 1 REF: 246 OBJ: 15-6 TOP: AACSB Reflective Thinking
KEY: CB&E Model Promotion MSC: BLOOMS Application
95. A common practice among most retailers that seeks to broaden customers’ original purchases with related items is called:
a.
|
suggestion selling
|
b.
|
trading up
|
c.
|
bait and switch
|
d.
|
comprehensive selling
|
e.
|
interactive selling
|
ANS: A
Suggestion selling is common in helping customers recognize true needs.
PTS: 1 REF: 246 OBJ: 15-6 TOP: AACSB Reflective Thinking
KEY: CB&E Model Promotion MSC: BLOOMS Knowledge
96. Whenever a customer opens an account at First Southern National Bank, a teller or account representative asks the customer whether he or she needs a CD, online banking, or other services. In other words, the account representative engages in:
a.
|
suggestion selling
|
b.
|
trading up
|
c.
|
bait and switch
|
d.
|
customer relationship retailing
|
e.
|
service-disguised selling
|
ANS: A
Suggestion selling seeks to broaden customers’ original purchase with related items.
PTS: 1 REF: 246 OBJ: 15-6 TOP: AACSB Reflective Thinking
KEY: CB&E Model Promotion MSC: BLOOMS Application
97. Interactivity is one of the new developments in retailing. In retailing, interactivity refers to:
a.
|
the use of improved communications with customers
|
b.
|
a new form of customer relationship marketing
|
c.
|
entertainment for customers to get them involved
|
d.
|
the use of information kiosks
|
e.
|
the creation of a static atmosphere
|
ANS: C
Interactivity is more than just entertaining customers, it is an attempt to get them involved.
PTS: 1 REF: 246 OBJ: 15-7 TOP: AACSB Technology
KEY: CB&E Model Strategy MSC: BLOOMS Knowledge
98. Build-a-Bear is a retailer where children can design and assemble a stuffed animal from shelves full of parts. Each child starts by choosing an animal. Then, the child moves to a place where the stuffing is added. Finally, the child moves to the area where the last accessories are added. Build-a-Bear is part of a recent trend in retailing referred to as:
a.
|
nonstore retailing
|
b.
|
m-commerce
|
c.
|
convenience retailing
|
d.
|
e-business
|
e.
|
interactivity
|
ANS: E
Retailers use interactivity in stores to differentiate themselves from the competition. Interactivity gets customers involved in the retailing experience.
PTS: 1 REF: 246 OBJ: 15-7 TOP: AACSB Reflective Thinking
KEY: CB&E Model Distribution MSC: BLOOMS Application
99. One of the new developments in retailing is m-commerce. The “m” in m-commerce stands for:
a.
|
motivated
|
b.
|
multimedia
|
c.
|
marketing
|
d.
|
managed
|
e.
|
mobile
|
ANS: E
M-commerce, or “mobile” e-commerce enables consumers using wireless mobile devices to connect to the Internet and shop.
PTS: 1 REF: 246 OBJ: 15-7 TOP: AACSB Technology
KEY: CB&E Model Strategy MSC: BLOOMS Knowledge
100. One of the new developments in retailing is m-commerce. M-commerce refers to the ability to:
a.
|
use unique communication techniques to send advertising messages
|
b.
|
create situations in which the AIDA technique is effective
|
c.
|
more efficiently manage customer demand with inventory
|
d.
|
shop using wireless mobile devices
|
e.
|
motivate consumers to buy more by creating more feedback channels
|
ANS: D
M-commerce goes beyond text message advertisements to allow consumers to purchase goods and services by using wireless mobile devices.
PTS: 1 REF: 246 OBJ: 15-7 TOP: AACSB Technology
KEY: CB&E Model Strategy MSC: BLOOMS Knowledge
101. At the American Girl store in Chicago, dolls can be purchased and girls can then go to the American Girl Cafe or American Girl Theatre and even have birthday parties. This is an example of using:
a.
|
nonstore retailing
|
b.
|
m-commerce
|
c.
|
convenience retailing
|
d.
|
e-business
|
e.
|
interactivity
|
ANS: E
Interactivity is used to differentiate one store from another. Interactivity gets customers involved in the retailing experience.
PTS: 1 REF: 246 OBJ: 15-7 TOP: AACSB Reflective Thinking
KEY: CB&E Model Distribution MSC: BLOOMS Application
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