Question 1

Among department stores,specialty stores,drugstores,and convenience stores,the gross margin is highest for specialty stores.

Accepted Answer

A) True 
 B)False

Question 2

Which statement describes department stores such as JCPenney and Macy's?

Accepted Answer

A)   All departments-such as shoes,children's clothing,electronics,housewares,etc.-operate collectively as a single profit center,but policies about pricing and the types of merchandise carried are set at the individual departmental level.
B)   All the departments-such as shoes,children's clothing,electronics,housewares,etc.-operate collectively as a single profit center,and the central management sets policies about pricing and the types of merchandise carried.
C)   Each department acts as a separate profit center,setting its own policies about pricing and the types of merchandise carried.
D)   Each department acts as a separate profit center,but the central management sets policies about pricing and the types of merchandise carried.E) A) and B)
F) None of the above

Question 3

In a particular supermarket,a customer picks up a J.K.Rowling book to examine before purchase.The retailer uses technology to suggest related items,such as other books by the author and Harry Potter merchandise,via the customer's mobile phone.What technology is the store using?

Accepted Answer

A)   Beacon
B)   RFID
C)   Swarm
D)   Click-and-collectE) C) and D)
F) A) and D)

Question 4

Which of the following represents the thinking behind off-price retailers?

Accepted Answer

A)   They sell items from a full-line discount stock to customers who are drawn in primarily by the food on sale.
B)   They sell overruns,irregular merchandise,and/or overstocks purchased from manufacturers at or below cost.
C)   They turn customers into suppliers by buying back pre-owned items from customers and reselling to different customers.
D)   They offer a nearly complete selection of merchandise within a single category and use self-service,discount prices,high volume,and high turnover to their advantage.E) B) and C)
F) B) and D)

Question 5

According to research,how does a customer typically view a product that is out of stock?

Accepted Answer

A)   Customers view stockouts as an indication of the store's poor management of inventory.
B)   The stockout will lead the customer to buy an item that is similar to the out-of-stock item.
C)   Customers who cannot buy the out-of-stock item will not buy an item similar to that item.
D)   The tendency to buy an out-of-stock item decreases with every subsequent stockout.E) All of the above
F) A) and D)

Question 6

Unlike off-price retailers,specialty shops:

Accepted Answer

A)   adopt an operating model that implies low prices for customers.
B)   focus on lean inventory management.
C)   can accommodate a broader range of customer demands.
D)   de-emphasize customer service and product selection.E) A) and D)
F) B) and C)

Question 7

Which of the following statements is true of click-and-collect?

Accepted Answer

A)   It requires representatives to sell products door-to-door,in offices,or at in-home sales parties.
B)   It employs outbound and inbound telephone contacts to sell directly to customers.
C)   It enables consumers to make their purchases online and pick up their orders from physical stores.
D)   It allows customers to shop over the Internet and have items delivered directly to their doors.E) B) and D)
F) None of the above

Question 8

Which of the following statements is true of retail channel omnification?

Accepted Answer

A)   Physical and online stores are combined into a single system for delivering on customer demand.
B)   Consumers are required to pick up their orders from a physical store after purchasing online.
C)   Physical stores are replaced by warehouses to store goods that can be purchased online.
D)   Consumers are required to visit physical stores before getting access to their online store.E) A) and C)
F) B) and C)

Question 9

_____ is an emerging retailing trend that employs market data to best serve customers as they prepare to make a purchase.

Accepted Answer

A)   Channel omnification
B)   Click-and-collect
C)   Shopper marketing
D)   Cloud computingE) A) and D)
F) All of the above

Question 10

In-store retailing adds a level of convenience for customers who wish to shop from their current locations.

Accepted Answer

A) True 
 B)False

Question 11

Suggestion selling by sales or service associates should always help shoppers recognize true needs rather than sell them unwanted merchandise.

Accepted Answer

A) True 
 B)False

Question 12

Consumer use of mobile devices and social media-while browsing,comparison shopping,and making a purchase-limits retailers from accessing useful information about their customers and provides retailers no concrete way to appeal to shoppers.

Accepted Answer

A) True 
 B)False

Question 13

Which of the following allows direct mailers from a manufacturing company to pick out (based on data analytics of census data,lifestyle patterns,financial information,and past purchase and credit history) those most likely to buy its products?

Accepted Answer

A)   Automatic vending
B)   Direct retailing
C)   Microtargeting
D)   TelemarketingE) All of the above
F) C) and D)

Question 14

At the store level,one goal of tactical retailing is to:

Accepted Answer

A)   eliminate the need for segmenting a market.
B)   increase the sales of a specific item.
C)   increase overhead costs.
D)   eliminate the need for new advertising campaigns.E) B) and C)
F) A) and C)

Question 15

A large discount store that specializes in a single line of merchandise and becomes the dominant retailer in its category is called a ______.

Accepted Answer

A)   superstore
B)   category killer
C)   warehouse club
D)   factory outletE) C) and D)
F) A) and C)

Question 16

_____ is a selling technique that seeks to broaden customers' original purchases with related items.

Accepted Answer

A)   Suggestion selling
B)   Co-marketing
C)   Shopper marketing
D)   Benefit sellingE) None of the above
F) B) and C)

Question 17

Which of the following represents the thinking behind used goods retailers?

Accepted Answer

A)   They sell items from a full-line discount stock to customers who are drawn in primarily by the food on sale.
B)   They sell overruns,irregular merchandise,and/or overstocks purchased from manufacturers at or below cost.
C)   They offer a nearly complete selection of merchandise within a single category and use self-service,discount prices,high volume,and high turnover to their advantage.
D)   They turn customers into suppliers by buying back pre-owned items from customers and reselling to different customers.E) A) and B)
F) None of the above

Question 18

Toys"R"Us working with Macy's to open stores-within-a-store at numerous Macy's locations is an example of a smaller specialty line opening shop inside a larger store to expand the former's retail opportunities without risking investment in a separate store.

Accepted Answer

A) True 
 B)False

Question 19

How do retailers respond to customers who "showroom" and just visit a physical retail store to examine product features or quality firsthand before eventually making the purchase online?

Accepted Answer

A)   They increase the amount of stock kept on hand.
B)   They rent or lease much larger spaces in prominent locations.
C)   They ramp up their fulfillment capabilities at distribution centers.
D)   They reject the strategy of retail channel omnification.E) All of the above
F) C) and D)

Question 20

Many drugstores also carry an extensive selection of cosmetics,health and beauty aids,seasonal merchandise,greeting cards,toys,and some non-refrigerated convenience foods.

Accepted Answer

A) True 
 B)False

Exam 14: Retailing

Which of the following statements is true of click-and-collect?

Correct AnswerverifiedShow Answer

Which of the following represents the thinking behind off-price retailers?

Correct AnswerverifiedShow Answer

Consumer use of mobile devices and social media-while browsing,comparison shopping,and making a purchase-limits retailers from accessing useful information about their customers and provides retailers no concrete way to appeal to shoppers.

Correct AnswerverifiedShow Answer

Which of the following represents the thinking behind used goods retailers?

Correct AnswerverifiedShow Answer

At the store level,one goal of tactical retailing is to:

Correct AnswerverifiedShow Answer

According to research,how does a customer typically view a product that is out of stock?

Correct AnswerverifiedShow Answer

_____ is a selling technique that seeks to broaden customers' original purchases with related items.

Correct AnswerverifiedShow Answer

Many drugstores also carry an extensive selection of cosmetics,health and beauty aids,seasonal merchandise,greeting cards,toys,and some non-refrigerated convenience foods.

Correct AnswerverifiedShow Answer

A large discount store that specializes in a single line of merchandise and becomes the dominant retailer in its category is called a ______.

Correct AnswerverifiedShow Answer

How do retailers respond to customers who "showroom" and just visit a physical retail store to examine product features or quality firsthand before eventually making the purchase online?

Correct AnswerverifiedShow Answer

In a particular supermarket,a customer picks up a J.K.Rowling book to examine before purchase.The retailer uses technology to suggest related items,such as other books by the author and Harry Potter merchandise,via the customer's mobile phone.What technology is the store using?

Correct AnswerverifiedShow Answer

_____ is an emerging retailing trend that employs market data to best serve customers as they prepare to make a purchase.

Correct AnswerverifiedShow Answer

Which of the following statements is true of retail channel omnification?

Correct AnswerverifiedShow Answer

Toys"R"Us working with Macy's to open stores-within-a-store at numerous Macy's locations is an example of a smaller specialty line opening shop inside a larger store to expand the former's retail opportunities without risking investment in a separate store.

Correct AnswerverifiedShow Answer

Which statement describes department stores such as JCPenney and Macy's?

Correct AnswerverifiedShow Answer

Which of the following allows direct mailers from a manufacturing company to pick out (based on data analytics of census data,lifestyle patterns,financial information,and past purchase and credit history) those most likely to buy its products?

Correct AnswerverifiedShow Answer

In-store retailing adds a level of convenience for customers who wish to shop from their current locations.

Correct AnswerverifiedShow Answer

Suggestion selling by sales or service associates should always help shoppers recognize true needs rather than sell them unwanted merchandise.

Correct AnswerverifiedShow Answer

Among department stores,specialty stores,drugstores,and convenience stores,the gross margin is highest for specialty stores.

Correct AnswerverifiedShow Answer

Unlike off-price retailers,specialty shops:

Correct AnswerverifiedShow Answer

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