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Chap 11 Test bank
Introduction to Marketing (Busi 2208)
Carleton University
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Name___________________________________
MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question.
1)Mind and Body Fitness recently entered into a financial agreement that allows 25 independent business people at select locations across the country to set up establishments that offer its holistic services and programs. They include weight-management, group programming, sport-specific training, yoga, Pilates, and nutrition. Which type of contractual retail association does this represent? A)retailer cooperative B)independent retailer C)franchise organization D)corporate chain E)voluntary chain
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2)Which of the following is an impact of the Great Recession on retailing trends? A)lower costs for retailers B)economic shift toward higher prices C)tighter consumer spending patterns D)longer retail life cycles E)prohibition on new retail forms
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3)Which of the following statements is true of retailing? A)Services like hotels, banks, airlines, restaurants, colleges, and hospitals can be retailed. B)A feature common to all types of retail stores is the use of the everyday low pricing strategy. C)A department store has a narrow product line with a deep assortment. D)The largest type of retail outlet is a supermarket. E)All retail stores are full-service retail stores.
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4)________ includes all the activities involved in selling goods and services to those buying them for resale or business use. A)Franchising B)Wholesaling C)Sole sourcing D)Showrooming E)Crowdsourcing
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5)Which of the following channel functions of wholesalers is demonstrated when a buyer receives quicker delivery because wholesalers are located closer than are producers? A)transportation B)buying and assortment building C)warehousing D)financing E)risk bearing
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6)Solutions Inc. negotiates the sale of materials between lumberyards and commercial construction companies, receiving a 15 percent commission on all transactions. Solutions Inc. is considered a ________. A)broker B)manufacturer C)supplier D)distributor E)retailer
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7)Walmart, Loblaws, Canadian Tire, and other major retailers offer handy ________ that pull customers to both their websites and stores. A)platforms B)mobile apps C)channels D)in-store shopping experiences E)product information
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8)Omni-channel retailers are those who ________. A)conduct all business activities online B)use mobile apps to sell their products C)expand their businesses internationally D)successfully merge the virtual and physical worlds E)sell products through third-party retailers
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9)Which wholesaler channel function is demonstrated when a wholesaler's sales force helps a manufacturer reach many small customers at a low cost? A)warehousing B)bulk breaking C)buying and assortment building D)risk bearing E)selling and promoting
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10)Which type of retailer typically carries deep product assortments of narrow product lines? A)specialty stores B)self-service retailers C)factory outlets D)warehouse clubs E)discount stores
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11)A ________ contains between 15 and 50 retail stores, including a department or variety store, a supermarket, specialty stores, professional offices, and sometimes a bank. A)community shopping centre B)neighbourhood shopping centre C)warehouse club D)regional shopping mall E)superstore
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18)Wayne Wholesaling fulfills many channel functions for its customers. The company mainly focuses on helping retailers to train their salespeople, improve store layouts, and set up inventory control systems. Based on this description, which channel function is provided by Wayne Wholesaling? A)management services and advice B)risk bearing services C)selling and promoting D)market information services E)buying and assortment building
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19)Which term refers to a giant specialty store with a very deep assortment of a particular product line? A)factory outlet B)category killer C)department store D)independent store E)convenience store
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20)A convenience store ________. A)markets to segments comprised mostly of white-collar workers B)involves high operation costs due to full-service customer assistance C)is a multi-channel food and discount retailer that targets niche markets D)stocks narrow product lines that have wide, deep assortments E)carries a limited line of high-turnover goods for consumer self-service
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21)An off-price retailing operation that is owned and operated by a manufacturer and normally carries the manufacturer's surplus, discontinued, or irregular goods is called a ________. A)specialty store B)superstore C)warehouse club D)factory outlet E)category killer
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22)Dina loves branded apparel and accessories but cannot afford to buy them too often. Fortunately, Dina lives close to an off-price retail store that is owned and operated by a famous brand. The company utilizes this store to sell its surplus, discontinued, or irregular goods at significantly lower costs. The retail store is best referred to as a ________. A)factory outlet B)superstore C)category killer D)power centre E)specialty store
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23)Which of the following statements is true of shopping centres? A)Shopping centres typically contain only those stores that target a niche market segment of high income groups. B)Shopping centres are groups of retail businesses built on a site that is planned, developed, owned, and managed as a unit. C)Most shopping centres function at the regional level rather than at the neighbourhood level. D)Shopping centres are huge superstores that offer a deep assortment of a particular product line. E)Shopping centres usually contain exclusive brands and specialty stores rather than convenience stores or department stores.
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24)As with other types of marketers, a primary goal in wholesaling is to ________. A)establish a greater number of locations B)hold prices constant C)match competitors' strategies D)build value-adding customer relationships E)maintain the status quo
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25)A ________ refers to a group of retail businesses built on a site that is planned, developed, owned, and managed as a unit. A)warehouse B)pop-up store C)category killer D)shopping centre E)convenience store
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26)________ creates a seamless cross-channel buying experience that integrates in-store, online, and mobile shopping. A)Consolidation marketing B)Test marketing C)Shopper marketing D)Online marketing E)Omni-channel retailing
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27)JP Wholesalers is one of the largest wholesalers of wooden furnishings in the country. Recently, the company opened a chain of stores called JP Designer Homes that has become popular due to the good reputation the company has as a wholesaler. The company has now started acquiring smaller retail chains and consolidating its position in the market. Which of the following trends is reflected in this scenario? A)the decline of the voluntary chain distribution method B)the blurring of distinctions between retailers and wholesalers C)the shift toward self-service retailing D)the rise of franchise organizations and joint partnerships E)the decline of superstores and megastores
27)
34)Department stores are most likely characterized by ________. A)narrow product lines B)wide varieties of product lines C)predatory pricing strategies D)specialty goods and services E)deep assortments of luxury brands
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35)Hamilton Wholesaling, an electronics wholesaling firm, provides many services to customers including buying, storing, and transporting expensive and delicate electronics equipment. Hamilton takes title of ownership to all goods that the firm handles. Hamilton is most likely a(n) ________. A)agent wholesaler B)manufacturer's representative C)manufacturer's agent D)merchant wholesaler E)wholesaling broker
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36)Winners is a retailer that buys clothing and home products from a variety of brand name manufacturers at less-than-regular wholesale prices and then charges customers less than retail. Winners is an example of a(n) ________. A)category killer B)full-service retailer C)specialty retailer D)independent off-price retailer E)departmental retailer
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37)The Hudson's Bay Company (The Bay), a major retail chain across Canada, offers a wide range of consumer goods such as clothing, furniture, home appliances, cosmetics, and jewellery. The Bay is best described as a ________. A)specialty store B)pop-up store C)supermarket D)category killer E)department store
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38)Foot Locker has mastered online and mobile efforts that link seamlessly with store operations, offering options such as "buy online, ship from store" and "buy online, reserve in store" for pickup. This is an example of ________. A)omni-channel retailing B)web-based retailing C)in-store ordering with a mobile device D)social media E)digital retailing
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39)A group of independent retailers that bands together to set up a jointly owned, central wholesale operation and conduct joint merchandising and promotion efforts is referred to as a ________. A)retailer cooperative B)voluntary chain C)corporate chain D)factory outlet mall E)warehouse club
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40)Specialty stores are characterized by ________. A)a wide range of products and categories B)the sale of convenience and staple items C)low prices on a wide range of goods D)routinely purchased food products and services E)narrow product lines with deep assortments
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41)When compared to merchant wholesalers, brokers and agents ________. A)perform more extensive functions B)deal only in services and not products C)rarely specialize in one product category or customer type D)do not engage in any negotiation of wholesale deals E)do not take title to goods
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42)Office Solutions is a large retailer that specializes in office products and services. Their offerings include a wide and deep assortment of computers, desk furniture, printers, office supplies, stationery, and printing. Office Solutions is most likely an example of a ________. A)pop-up store B)convenience store C)category killer D)lifestyle centre E)supermarket
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43)A ________ is a small open-air mall with upscale stores, convenient locations, and nonretail activities such as a playground, hotel, dining establishments, and a movie theater. A)lifestyle centre B)power centre C)community shopping centre D)warehouse club E)regional shopping centre
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44)Stores that provide moderate sales assistance because they carry shopping goods about which customers need a moderate level of information are called ________ retailers. A)self-service B)full-service C)off-price D)convenience E)limited-service
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50)Leading "big-box" stores, such as Walmart and Home Depot, now dominate the retail scene. However, even "small-box" stores like Dollarama, are thriving in the current economic environment. All three retailers are considered ________. A)specialty stores B)convenience stores C)full-service retailers D)designer shops E)discount stores
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51)Customers at Carat, a premium jewellery store, are encouraged to make an appointment before a visit so that a customer service representative is assigned to them. These representatives help every customer make a purchase that meets his or her needs and budget after considering numerous options. The different styles and special features of the jewellery are explained to each customer to aid the purchase decision. In this case, Carat is an example of a(n) ________. A)self-service retailer B)off-price retailer C)supermarket D)full-service retailer E)convenience store
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52)Electronics Storage is a wholesaler that holds inventories, thereby reducing carrying costs and risks for both suppliers and customers. Which channel function does Electronics Storage primarily provide? A)transporting B)showrooming C)financing D)warehousing E)assortment building
52)
53)According to the text, today's large and progressive wholesalers have successfully reacted to rising costs by ________. A)increasing customer service responsibilities B)relocating to low-rent, low-tax areas C)reducing promotional and personal selling activities D)investing in information technology systems E)eliminating the need for brokers and agents
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54)Which of the following is a type of off-price retailer? A)discount store B)full-service retailer C)specialty store D)supermarket E)warehouse club
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55)Rotanna's, a leading fashion brand, sets up small temporary boutiques across numerous locations during its year-end sale, promoting its outdated products at half the price. These temporary boutiques are referred to as ________. A)pop-up stores B)shopping centres C)power centres D)category killers E)franchises
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56)Bikers and non-bikers alike enjoy dining at the Harley Davidson Café in Las Vegas. Several Harley Davidson models are on display as well as a very large, uniquely crafted American flag. Menu items include the Easy Rider, the Choppers Cobb salad, and the Harley Hog sandwich. The Harley Davidson Café most likely uses ________. A)self-service retailing B)franchising C)everyday low pricing D)predatory pricing E)experiential retailing
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57)Wholesalers most likely discourage less-profitable customers by ________. A)carrying exclusive product lines B)overseeing inventory control systems C)requiring smaller orders to lower transportation costs D)increasing product promotions E)adding service charges to small purchase orders
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58)________ have filled the ultralow-price, high-volume gap by buying at less-than-regular wholesale prices and charging consumers less than retail. A)Specialty stores B)Off-price retailers C)Full-service retailers D)Convenience stores E)Designer shops
58)
59)Which type of retailer is much larger than a regular supermarket and offers a large assortment of routinely purchased food products, nonfood items, and services? A)off-price outlets B)factory outlets C)specialty stores D)superstores E)discount stores
59)
60)Grace and her fiancé visit several furniture stores in and around their hometown of Saskatoon. They use their smartphones to capture information about manufacturers and pricing, and ultimately decide to purchase their favourite items online. This is referred to as ________. A)franchising B)warehousing C)wholesaling D)retailing E)showrooming
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70)Casey's is a large supermarket that practices everyday low pricing. Therefore, consumers should expect few discounts or sales if shopping at Casey's regularly.
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71)Beyond direct online sales, retailer online sites, mobile apps, and social media influence a large amount of in-store buying.
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72)It's estimated that most Canadian retail sales are either transacted directly or influenced by online research.
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73)According to research, nearly 60 percent of shoppers research product information on their smartphone while shopping.
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74)Examples of a service retailer include hotels, airlines, banks, colleges, and many others. 74)
75)Too many retailers, even big ones, fail to clearly define their target markets and positions. 75)
76)In an automated warehouse, orders are fed directly from the retailer's information system into the wholesaler's, and the items are picked up by mechanical devices and taken to a shipping platform where they are assembled.
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77)The Great Recession put heavy pressure on wholesalers to increase their operation costs and limit warehouse automation systems.
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78)A franchise organization is a group of independent retailers who jointly establish a central buying organization and conduct joint promotion efforts.
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79)Pricing decisions of specialty stores are typically based on low markups on a high volume of products.
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80)Brokers and agents usually take title to goods and perform various functions for retailers. 80)
81)Merchant wholesalers are the largest single group of wholesalers, accounting for roughly 50 percent of all wholesaling.
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82)Retailers are greening up their stores and operations, promoting more environmentally responsible products and working with channel partners to reduce their environmental impact.
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83)According to the author, creating a digital-friendly store, high-powered website, and extensive social media presence constitutes good omni-channel retailing.
83)
84)A convenience store is owned and operated by a manufacturer and normally carries the manufacturer's surplus, discontinued, or irregular goods.
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85)Many online merchants–including Amazon–have experienced so much online growth that they are now moving into showrooms or their own stores.
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86)The retailer's product assortment should be distinguishable and also match target shoppers' expectations.
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87)Warehouse clubs appeal not only to low-income consumers seeking bargains on bare-bones products but to customers shopping for a wide range of goods, from necessities to extravagances.
87)
ESSAY. Write your answer in the space provided or on a separate sheet of paper.
88)Describe the growth of online retailing.
89)Canadex Retail, the country's largest and oldest retail chain, was recently recognized as one of the most influential companies in Canada. The company aims to capitalize on this opportunity by implementing major marketing activities to capture the attention of consumers, politicians, and environmentalists. The company was one of the first to do away with plastic bags, and the public relations division is contemplating the adoption of additional green retailing practices. Would this move reflect sound business tactics? What other measures can Canadex Retail take in this direction?
90)What have retailers learned about how customers make purchase decisions?
91)Posco, a limited-service retail chain with 130 stores across the country, is seeking to improve its standing in the market. Since its operations are widespread, altering the store atmosphere significantly is not feasible because of the costs involved. Similarly, upgrading the stores to full-service retail chains would require a large investment of time, effort, and employee training. Assuming that many of Posco's private-label brands are bringing in large revenues, what strategy could Posco Retail use to differentiate itself while matching target shoppers' expectations?
92)Differentiate between power centres and lifestyle centres.
93)Describe the promotion tools used by retailers.
94)Three types of shopping centres are regional shopping centres, community shopping centres, and neighbourhood shopping centres or strip malls. Describe how they differ from each other.
95)Compare and contrast specialty stores and convenience stores.
96)How are retailers classified based on the amount of service they provide to customers? Provide examples of each service level to illustrate your response.
97)Explain how wholesalers add value for a producer.
98)Crunch and Munch is the country's favourite fast-food vendor of fried chicken. Over the years, the company has diversified into providing a larger variety of snacks like hot dogs, burritos, and burgers, but consumers still consider it the best seller of fried chicken. Many potential investors have approached Crunch and Munch with offers to buy the company, but Crunch and Munch continues to operate through its stores. What is franchising? Why would franchising be a good contractual system for Crunch and Munch?
99)What is retailing? Explain the concept of shopper marketing.
100)Describe superstores, category killers, and service retailers.
Answer Key
Testname: CHAP 11_7CE
50)E
51)D
52)D
53)D
54)E
55)A
56)E
57)E
58)B
59)D
60)E
61)E
62)E
63)C
64)B
65)E
66)TRUE
67)TRUE
68)TRUE
69)TRUE
70)TRUE
71)TRUE
72)FALSE
73)TRUE
74)TRUE
75)TRUE
76)TRUE
77)FALSE
78)FALSE
79)FALSE
80)FALSE
81)TRUE
82)TRUE
83)FALSE
84)FALSE
85)FALSE
86)TRUE
87)TRUE
88)Online retailing is thriving. Although it currently accounts for only about 9 percent of total Canadian retail sales, online buying is growing at a much brisker pace than retail buying as a whole. Last year's Canadian online retail sales grew 7 percent over the previous year versus a 3 percent increase in overall retail sales. Beyond direct online sales, retailer online sites, mobile apps, and social media also influence a large amount of in-store buying. It's estimated that more than half of total retail sales are either transacted directly or influenced by online research.
Answer Key
Testname: CHAP 11_7CE
89)(Students' answers may vary. The answer given below is indicative.) Today's retailers are increasingly adopting environmentally sustainable practices. They are greening up their stores and operations, promoting more environmentally responsible products, launching programs to help customers be more responsible, and working with channel partners to reduce their environmental impact. At the most basic level, most large retailers are making their stores more environmentally friendly through sustainable building design, construction, and operations. Retailers are also greening up their product assortments. Many retailers have also launched programs that help consumers make more environmentally responsible decisions. Finally, many large retailers are joining forces with suppliers and distributors to create more sustainable products, packaging, and distribution systems. Green retailing yields both top- and bottom-line benefits. Sustainable practices lift a retailer's top line by attracting consumers looking to support environmentally friendly sellers and products. They also help the bottom line by reducing costs. Keeping all these benefits and measures in mind, the decision of Amex Retail to go green would make a tremendous positive impact. 90)Retailers have learned that shoppers with smartphones are doing far more than just checking online prices. More often, they are filling in the information gap. "The consumer has never been more informed, and that information comes from their phone," says a senior marketer at outdoor-gear retailer REI. "We love when someone enters the store holding their phone saying, 'I want this tent. I want this bike. Help me find this.' " This type of activity shows how digital and store retailing can come together to make a sale. 91)(Students' answers may vary. The answer given below is indicative.) Posco Retail should use its product assortment to differentiate its stores while matching target shoppers' expectations. One strategy is to offer merchandise that no other competitor carries, such as store brands or national brands on which it holds exclusive rights. Posco Retail has private-label brands that are doing well in the market and the company should capitalize on them. While the services mix and store atmosphere can also help set one retailer apart from another, these measures are not feasible in the current situation for Posco Retail. 92)Power centres are huge unenclosed shopping centres consisting of a long strip of retail stores, including large, freestanding anchors such as Walmart, Home Depot, Costco, Best Buy, Michaels, PetSmart, and OfficeMax. Each store has its own entrance with parking directly in front for shoppers who wish to visit only one store. In contrast, lifestyle centres are smaller, open-air malls with upscale stores, convenient locations, and nonretail activities, such as a playground, skating rink, hotel, dining establishments, and a movie theater. The most recent lifestyle centres often consist of mixed - use developments, with ground floor retail establishments and apartments or condominiums above, combining shopping convenience with community feel of a neighbourhood centre. Meanwhile, traditional regional shopping malls are adding lifestyle elements — such as fitness centres, common areas, and multiplex theaters — to make themselves more social and welcoming. In all, today's centres are more like places to hang out rather than just places to shop. 93)Retailers use any or all of the five promotion tools — advertising, personal selling, sales promotion, public relations (PR), and direct marketing — to reach consumers. They advertise in newspapers and magazines and on radio, television, and the Internet. Advertising may be supported by newspaper inserts and catalogs. Store salespeople greet customers, meet their needs, and build relationships. Sales promotions may include in-store demonstrations, displays, sales, and loyalty programs. PR activities, such as new-store openings, special events, newsletters and blogs, store magazines, and public service activities, are also available to retailers. Most retailers also interact digitally with customers via websites and digital catalogs, online ads and video, social media, mobile ads and apps, blogs, and e-mail. Almost every retailer, large or small, maintains a full social media presence. 94)Regional shopping centres are the largest and most dramatic shopping centres. They contain from 50 to more than 100 stores. They are like covered mini-downtowns and attract customers from a wide area. Smaller than regional shopping centres, community shopping centres contain between 15 and 50 stores. They normally contain a branch of a department store or variety store, a supermarket, specialty stores, professional offices, and sometimes a bank. Smaller still are neighbourhood shopping centres or strip malls, which generally contain 5 to 15 stores. They are close and convenient for consumers, usually containing a supermarket, a discount store, and several service stores.
Answer Key
Testname: CHAP 11_7CE
99)Retailing includes all the activities involved in selling products or services directly to final consumers for their personal, nonbusiness use. Many institutions–manufacturers, wholesalers, and retailers–do retailing. But most retailing is done by retailers, businesses whose sales come primarily from retailing. Retailing plays a very important role in most marketing channels. Last year, retailers accounted for more than $5 trillion of sales to final consumers. Many marketers are now embracing the concept of shopper marketing, focusing the entire marketing process–from product and brand development to logistics, promotion, and merchandising–toward turning shoppers into buyers as they approach the point of sale. Of course, every well-designed marketing effort focuses on customer buying behaviour. What differentiates the concept of shopper marketing is the suggestion that these efforts should be coordinated around the shopping process itself. 100)Superstores are much larger than regular supermarkets and offer a large assortment of routinely purchased food products, nonfood items, and services. Walmart, Target, Meijer, and other discount retailers offer supercentres, very large combination food and discount stores. Recent years have also seen the rapid growth of superstores that are actually giant specialty stores, the so-called category killers (e., Best Buy, Home Depot, Petco, and Bed, Bath & Beyond). They feature stores the size of airplane hangars that carry a very deep assortment of a particular line. Category killers are found in a wide range of categories, including electronics, home-improvement products, books, baby gear, toys, home goods, party goods, sporting goods, and even pet supplies. Finally, for many retailers, the product line is actually a service. Service retailers include hotels and motels, banks, airlines, restaurants, colleges, hospitals, movie theaters, tennis clubs, bowling alleys, repair services, hair salons, and dry cleaners.
Chap 11 Test bank
Course: Introduction to Marketing (Busi 2208)
University: Carleton University
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