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Toys R Us has recently announced the closure of over 100 of its retail locations. Toy manufacturer, Hasbro, is concerned about how the closures will affect their bottom line. Toys R Us would often display some of Hasbro's toys outside of the packages to allow children to play with the products in stores-something that Hasbro felt greatly encouraged sales of their toys. As Hasbro searches for new retail partners, they should consider:


A) finding a retailer that is located near schools and parks.
B) finding a retailer that carries similar products.
C) finding a retailer that shares a similar store atmospherics strategy.
D) finding a retailer that encourages showrooming.

E) B) and D)
F) A) and B)

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Fastenal was one of the first business-to-business suppliers to offer vending machines or kiosks in manufacturing facilities to enable their customers' employees to "purchase" supplies such as gloves and safety equipment including goggles, ear protection, and masks. This innovation enabled the customers to track their purchases and hold employees accountable for using supplies. This is an example of:


A) automatic merchandising.
B) telemarketing.
C) direct-response retailing.
D) direct mail.

E) C) and D)
F) B) and C)

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Which of the following statements about retailing in the United States are true?


A) Consumers make more than half of their purchases online.
B) The largest retailers also have the largest e-commerce presence.
C) Shoppers browse and compare products online but make most purchases in brick-and-mortar locations.
D) The number of consumers that shop online is expected to grow each year.

E) B) and D)
F) A) and D)

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A retailer's merchandising strategy guides decisions regarding the items it will offer.

A) True
B) False

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David is recently divorced and his ex-wife took most of their kitchen equipment when she relocated. He's decided to host a Pampered Chef party and invite friends who enjoy cooking. He knows that they will enjoy sampling various dips and dishes and will likely buy an item or two. He can purchase Pampered Chef items at a discount and may even earn free items as a benefit of hosting the party. Pampered Chef is classified as a(n) :


A) direct sales retailer.
B) mass merchandiser.
C) specialty retailer.
D) retail cooperative.

E) C) and D)
F) All of the above

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The per reader cost of direct mail is high, so the effectiveness depends largely on:


A) the quality of the mailing list.
B) the markup on products the retailers sell.
C) whether the piece is printed in color or black and white.
D) the frequency in which direct mail is sent.

E) B) and D)
F) None of the above

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Uniqlo, a Japanese retailer, has started selling clothing items in vending machines in U.S. malls and airports. This is an example of:


A) direct selling.
B) automatic merchandising.
C) direct response retailing.
D) online retailing.

E) A) and D)
F) A) and C)

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Nordstrom carefully combines defined product lines and services in an attempt to convince consumers to expend considerable effort shopping at their stores. Nordstrom can be regarded as a specialty retailer.

A) True
B) False

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General merchandise retailers distinguish themselves from specialty and limited-line retailers by the large number of product lines they carry.

A) True
B) False

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When determining a customer service strategy, retailers must decide whether or not they will charge customers for the services they offer.

A) True
B) False

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How do retailers develop a marketing strategy?

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A retailer develops a marketing strategy...

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A full-service retailer usually sells convenience products that people can purchase without any assistance.

A) True
B) False

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Retailers can project their personalities through their ______.


A) pricing strategy
B) customer service strategy
C) atmospherics
D) merchandising strategy

E) B) and D)
F) C) and D)

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LensCrafters focuses on fashion-oriented merchandise, backed by a complete array of customer services. Hence, LensCrafters can be regarded as a:


A) self-selection retailer.
B) full-service retailer.
C) self-service retailer.
D) partial-assistance retailer.

E) A) and B)
F) All of the above

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Just Jerky makes jerky from bison, kangaroo, and alligator meat. Because of the unique aspect of the products, the company would like to maintain a premium product status and prices their jerky products higher than traditional beef jerky. The company would like to target hunters, campers, and hikers as their main customers. -Which of the following retail partners would be the best fit for Just Jerky's products?


A) Walmart
B) 7-Eleven convenience stores
C) Cabela's
D) Big Lots

E) A) and C)
F) B) and C)

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Which of the following is an example of a specialty store?


A) A discount house
B) A hypermarket
C) A men's shoe store
D) An off-price retailer

E) B) and C)
F) All of the above

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_______ occurs when a customer examines and compares products at a store, then buys the product for a lower price through an online retailer.


A) Window shopping
B) Showrooming
C) Cart abandonment
D) Webrooming

E) All of the above
F) None of the above

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Technology and e-commerce have not had an impact on retailers.

A) True
B) False

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Direct marketing and nonstore retailing are part of the _____ strategies for retailers.


A) pricing and merchandising
B) promotion and pricing
C) distribution and promotion
D) merchandising and distribution

E) B) and D)
F) B) and C)

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Vending machines are classified as a form of automatic merchandising.

A) True
B) False

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