MKT 310 WK 4 QUIZ 3 CHAPTER 5 & 6

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MKT 310 WK 4 QUIZ 3 CHAPTER 5 & 6

MKT 310 WK 4 Quiz 3 Chapter 5,6

1) A retailer can become a ________ through low prices, specialized products, a large selection, and superb customer service.

A) destination retailer

B) relationship retailer

C) parasite store

D) value-based retailer

2) An advantage to a retailer's reaching destination retailer status is its ability to ________.

A) charge higher prices for its goods

B) attract shoppers from a larger geographic area

C) attract a better work force

D) develop its own line of private label goods

3) According to the wheel of retailing theory, retail innovators first appear as ________.

A) low-price operators with low costs

B) power retailers

C) firms that provide a wide complement of customer services

D) firms that offer wide selections of highly specialized goods and services

4) According to the wheel of retailing theory, as retail innovators mature, they ________.

A) increase their market share at the expense of high-cost, full-service retailers

B) reduce customer services to concentrate on the price-conscious customer segment

C) further reduce price levels to maintain their low-cost competitive advantage

D) increase their services which leads to higher prices

5) The wheel of retailing suggests that ________.

A) consumers desire customer service over price

B) established retailers should be cautious in changing their strategy from low end to high end

C) retail consumers are store loyal

D) retailers that move up the wheel typically can keep their price-conscious customers

6) In scrambled merchandising, a retailer ________.

A) adds goods and services that may be unrelated to each other and to the firm's original business

B) trades up its customer services to attract a new target market

C) attempts to reduce its out-of-stock inventory

D) attempts to become a "category killer" retailer through its extensive assortment of merchandise

7) An important advantage of scrambled merchandising to consumers is ________.

A) one-stop shopping

B) self-service merchandising

C) increased customer service

D) lower prices

8) In the long-run, scrambled merchandising is ________ in nature.

A) low-end

B) nondistinctive

C) contagious

D) self-defeating

9) Which theory asserts that retail institutions pass identifiable stages ranging from innovation to decline?

A) scrambled merchandising

B) the wheel of retailing

C) rationalized retailing

D) the retail life cycle

10) In which stage of the retail life cycle theory does a company alter at least one element of the strategy mix from that of its traditional competitors?

A) maturity

B) decline

C) introduction

D) growth

11) Progressive firms expand their geographic bases of operations and newer companies enter the marketplace at which retail life cycle stage?

A) introduction

B) growth

C) maturity

D) decline

12) The retail life cycle stage characterized by market saturation is ________.

A) introduction

B) growth

C) maturity

D) decline

13) Through ________, retailers seek to jointly maximize resources, enlarge their customer base, and improve productivity and bargaining power.

A) mergers

B) diversification

C) downsizing

D) rightsizing

14) A merger benefits the affected retailers through ________.

A) increased bargaining power

B) greater store name awareness

C) more efficient ordering systems

D) higher return on investment

15) A retailer can reduce dependency on its core operations through ________.

A) a cost-containment strategy

B) downsizing

C) diversification

D) mergers

16) Retailers reduce both initial investments and ongoing costs through ________.

A) adaptation strategies

B) a cost-containment approach

C) positioned retailing

D) mass merchandising

17) The use of standardized store layouts, second-use locations, and buying refurbished equipment are characteristics of ________.

A) adaptation strategies

B) a cost-containment approach

C) positioned retailing

D) mass merchandising

18) Sales of fill-in merchandise are particularly important to which food-oriented retailer?

A) convenience store

B) conventional supermarket

C) food-based superstore

D) box (limited line) store

19) A departmentalized self-service food store with minimum annual sales of $2 million is a ________.

A) convenience store

B) specialty store

C) supermarket

D) food-based superstore

20) Which retail institution is not included in the traditional definition of a supermarket?

A) convenience store

B) food-based superstore

C) warehouse store

D) box (limited-line) store

21) The average gross margins (selling prices less merchandising costs) for conventional supermarkets have averaged about what percent of sales?

A) 5-6

B) 10-12

C) 20-22

D) 40-42

22) A combination store combines ________ into one facility.

A) multiple leased departments

B) a supermarket and a general merchandise retail operation

C) a department store and a full-line discount house

D) a warehouse store and a specialty store

23) A huge form of combination store is a ________.

A) convenience store

B) supercenter

C) box (limited-line) store

D) warehouse store

24) Which food-based retail institution depends on aggressively priced private-label or controlled brands and cut-case displays?

A) food-based superstore

B) box (limited-line) store

C) convenience store

D) conventional supermarket

25) A central aspect of the retail strategy of warehouse stores is ________.

A) special purchases of popular brands

B) a concentration on private label or controlled brands

C) use of high-rent retail locations

D) a focus on fill-in merchandise

26) A retailer that concentrates on selling one goods or service line is a ________ store.

A) full-line discount

B) specialty

C) variety

D) department

27) A category killer store is ________.

A) an especially large specialty store

B) an especially aggressive department store

C) a large combination store

D) any retail store that dominates a geographic market in terms of market share

28) Which retail institution has separate units responsible for buying, promotion, customer service, and control?

A) full-line discount store

B) factory outlet

C) department store

D) variety store

29) Which retail institution has the most selection of any general merchandise retailer?

A) full-line discount store

B) factory outlet

C) variety store

D) department store

30) Two types of retail institutions satisfy the Bureau of Census definition of a department store: the traditional department store and the ________.

A) full-line discount store

B) supercenter

C) variety store

D) hypermarket

31) Dollar discount stores and closeout chains are successful spinoffs of the ________.

A) full-line discount store

B) specialty store

C) department store

D) variety store

32) Which retail institution purchases brand-name merchandise on an opportunistic basis?

A) warehouse store

B) full-line discount store

C) flea market

D) off-price chain

33) A significant factor in the growth of factory outlets is the ________.

A) growth of off-price chains

B) desire of suppliers to control where their discounted merchandise is sold

C) desire for independent vertical systems by manufacturers

D) ability of outlets to purchase merchandise for cash

34) Which institution sells goods to both final consumers and retailers?

A) retail cooperative

B) flea market

C) factory outlet

D) membership club

35) The use of nontraditional sites is generally associated with which retail institution?

A) retail cooperative

B) flea market

C) factory outlet

D) membership club

36) A destination retailer ________.

A) is patronized because of convenience

B) has a large proportion of outshoppers

C) is a parasite

D) uses price as its major component in the retailing mix

37) A destination retailer can be differentiated from other retailers on the basis of its ________.

A) high overall value orientation

B) small trading area

C) low overall prices

D) high consumer loyalty

38) A destination retailer is characterized by ________.

A) high consumer loyalty

B) multiple department organization structure

C) an extensive direct marketing operation

D) a low-cost operating structure

39) According to the wheel of retailing theory, retail innovators have what major advantage over traditional retailers?

A) being a low-cost provider

B) a more convenient location

C) superior service

D) exclusive merchandise lines

40) According to the wheel of retailing theory, which pricing strategy is used by a retailer during the innovation phase?

A) pricing above the market

B) pricing at the market

C) pricing below the market

D) skimming pricing

41) According to the wheel of retailing, retail institutions become vulnerable when ________.

A) the innovator's strategy is no longer considered unique by its target market

B) consumers do not accept the retailer's new price-conscious image

C) competitors can match the innovator's low-price strategy

D) new institutions have a significant cost advantage due to the innovator's upgrading its image and costs

42) Which retail institutions best fit the innovator stage of the wheel of retailing theory?

A) convenience stores, food-based superstores, and supercenters

B) category killer stores, factory outlets, and Web-based direct marketers

C) food-based superstores, box (limited-line) stores, and combination stores

D) vending machines, direct selling, and direct marketing

43) The beginning stage of the wheel of retailing theory (when low-price institutions first appear) corresponds to which stage of the retail life cycle stage?

A) maturity

B) decline

C) introduction

D) growth

44) Scrambled merchandising is most similar to which retail institution format?

A) retail cooperative

B) chain

C) franchising

D) leased department

45) A pharmacy (due to increased competition from a neighboring supermarket) has now added an exclusive line of cosmetics, and has expanded its line of greeting cards and gift wrapping items. This strategy illustrates ________.

A) scrambled merchandising

B) the wheel of retailing

C) the retail life cycle

D) rationalized retailing

46) The evolution of the conventional supermarket into a combination store, food-based superstore, and supercenter can be explained by which retail concept?

A) wheel of retailing

B) the retail life cycle

C) rationalized retailing

D) scrambled merchandising

47) Which food-based retail institutions best fit the scrambled merchandising concept?

A) warehouse store and conventional supermarket

B) combination store and food-based superstore

C) warehouse store and box (limited-line) store

D) convenience store and conventional supermarket

48) A retailer that believes that a retail life cycle resembles a fad should use ________.

A) rationalized retailing

B) positioned retailing

C) a cost-containment approach

D) mass merchandising

49) The retail life cycle stage corresponding to an innovative retailer's first becoming vulnerable to a new retailer with a lower cost structure is ________.

A) maturity

B) decline

C) accelerated development

D) innovation

50) A retailer should limit its investment in essential expenditures during which stage of the retail life cycle?

A) maturity

B) decline

C) growth

D) introduction

51) The difference between a retail merger and diversification is based on the ________.

A) identity of the new business

B) size of the acquisition

C) similarity of the acquired business to the original business

D) source of capital for the acquisition

Course Home Work

Wednesday, 29 July 2015