Mkt 201 Ch 16

Front 1

What is the final stop in the distribution channel in which organizations sell goods and services to consumers for their personal use?

Back 1

retailing

Front 2

What is true about retailers and retailing activities?

Back 2

Retailers are members of channels of distribution

Front 3

According to the ________ hypothesis, new retailing forms often begin as low-margin, low-price, low-status operations to challenge established retailers, then become successful, and eventually take the place of the established retailers they had challenged

Back 3

wheel of retailing

Front 4

What best explains why new retailers often squeeze out older retailers?

Back 4

the wheel-of-retailing hypothesis

Front 5

The ________ is a way to categorize retail operations by the conditions they face at different points in their existence

Back 5

retail life cycle

Front 6

In the ________ stage of the retail life cycle, the retailer often is an aggressive entrepreneur who takes a unique approach to doing business by creating a differential advantage, such as competing on the basis of low price, offering a distinctive assortment, or using a different way to distribute products

Back 6

introduction

Front 7

What is most likely to occur during the maturity stage of the retail life cycle?

Back 7

Prices are cut

Front 8

When two or more separately owned retail firms combine, a(n) ________ has occurred

Back 8

merger

Front 9

A retail firm downsizes when it _______

Back 9

closes unprofitable outlets

Front 10

In the ________ stage of the retail life cycle, retail businesses become obsolete as newer ways of doing business emerge

Back 10

decline

Front 11

What is NOT a function of a point-of-sale (POS) system?

Back 11

evaluating bids from potential suppliers

Front 12

_______ would enable a customer in one retail site to ask questions of a product "expert" in another retail site

Back 12

an in store kiosk

Front 13

Shoplifting, sweethearting, and retail borrowing are all problems that contribute to _______

Back 13

shrinkage

Front 14

For the retailer, the practice of ________ results in lower total sales and, in many cases, damaged merchandise

Back 14

retail borrowing

Front 15

A ________ is a set of related products a retailer offers

Back 15

product line

Front 16

________ combine an economy supermarket with other lower-priced non-food merchandise

Back 16

supercenters

Front 17

_______ is the basis of most discount operations. Retailers offering this level of service require customers to perform their own product selection and may require customers to handle their own checkout process

Back 17

self service

Front 18

Which types of retailers place the most emphasis on salespeople assisting customers throughout the purchase process?

Back 18

full service retailers

Front 19

_______ is the number of different product lines available at a particular retail store

Back 19

merchandise breadth

Front 20

What is LEAST likely to happen at a full-service retailer?

Back 20

Customers handle their own checkout process

Front 21

______, such as Target and Kohl's, provide merchandise return and offer credit, but customers select merchandise without much assistance

Back 21

Limited-service retailers

Front 22

Which statement about the services provided by retailers is true?

Back 22

Convenience stores are unlikely to be full-service retailers

Front 23

Retail stores are often classified on the breadth and depth of their merchandise assortment. The breadth of the merchandise is the number of different lines available. The merchandise breadth may be classified as ________ or _______

Back 23

narrow; broad

Front 24

Retail stores are often classified on the breadth and depth of their merchandise assortment. The depth of the merchandise is the variety of choices for each specific product. Merchandise depth may be classified as ________ or ________

Back 24

shallow; deep

Front 25

Which of the following is true about convenience stores?

Back 25

they create time utility for their customers

Front 26

_______ are food stores that carry a wide selection of edible and nonedible products

Back 26

supermarkets

Front 27

Which type of self-service store is a food store with a limited selection of items and few brands per item?

Back 27

box store

Front 28

_______ carry a narrow assortment of product lines with deep assortments within those lines

Back 28

specialty stores

Front 29

A large retail store that wants to offer a broader variety of products or services on site than it would otherwise carry would most likely make an arrangement with a(n) _______

Back 29

leased department

Front 30

Which type of self-service store offers a limited line of inexpensive items, often at a single price point?

Back 30

variety store

Front 31

__________ is a discount retailer owned by a manufacturer that provides the manufacturer a store to sell off defective merchandise

Back 31

a factory outlet store

Front 32

Which of the following is true about general merchandise discount stores?

Back 32

They appeal to consumers who want easy access to a lot of merchandise

Front 33

Which type of retailers obtain surplus merchandise from manufacturers and offer brand-name, fashion-oriented goods at low prices?

Back 33

off price retailers

Front 34

Customers of a ________ buy most of the store's products in larger-than-normal packages and quantities

Back 34

warehouse club

Front 35

What is NOT true about warehouse clubs?

Back 35

They have not followed the pattern set forth by the wheel-of-retailing hypothesis

Front 36

Which of the following stores is most likely to have a narrow assortment of merchandise?

Back 36

a factory outlet store

Front 37

Which of the following statements about department stores is true?

Back 37

Department stores were a dominant type of retailer in the first half of the twentieth century

Front 38

Which type of store carries a wide variety of items and offers a deep selection, but has been squeezed in recent years between more focused and more service-oriented specialty stores on the one hand and more efficient, lower-priced discounters on the other?

Back 38

department

Front 39

Which types of retailers have been more successful in Europe than in the United States?

Back 39

hypermarkets

Front 40

Which type of store combines the characteristics of a warehouse store and a supermarket?

Back 40

hypermarket

Front 41

Which types of retail stores would likely offer the broadest assortment of merchandise and services?

Back 41

hypermarkets

Front 42

__________ is any method a firm uses to complete an exchange that does not require a customer to visit a store

Back 42

nonstore retailing

Front 43

Avon is successful at giving customers alternatives to traditional store outlets. Avon uses ________, which does not require a customer to visit a store

Back 43

nonstore retailing

Front 44

What prohibits door-to-door selling unless prior permission has been granted by the household?

Back 44

a Green River Ordinance

Front 45

Through the ________ of direct selling, people tend to get caught up in the "group spirit" and buy things they would not normally buy if alone

Back 45

party plan system

Front 46

Another name for multilevel marketing is ________

Back 46

network marketing

Front 47

In ________, a master distributor recruits other people to become distributors. The master distributor sells the company's products to the people she entices to join and receives commissions on all the merchandise sold by the people she recruits

Back 47

multilevel marketing

Front 48

A master distributor is most likely to work in _____

Back 48

network marketing

Front 49

What is an illegal sales technique?

Back 49

a pyramid scheme

Front 50

In general, vending machines are best suited for selling ______

Back 50

food and beverages

Front 51

_____ e-commerce is the online exchange between companies and individual consumers

Back 51

B2C

Front 52

What is NOT a benefit provided by e-commerce?

Back 52

It provides consumers the satisfaction of instant gratification

Front 53

Experts predicting that destination retail will be a future trend believe that consumers will soon visit retailers more for ________ than for the basic process of purchasing products

Back 53

entertainment

Front 54

What is the term for how the marketplace perceives a retailer relative to the competition?

Back 54

store image

Front 55

Which of the following is NOT an element involved in the creation of store atmospherics?

Back 55

knowledgeable personnel

Front 56

Which of the following factors is most likely to be used to create store atmospherics?

Back 56

store layout

Front 57

Which kind of retail store would be most likely to use a grid layout?

Back 57

a supermarket

Front 58

Which of the following statements about store layout is NOT true?

Back 58

A grid layout is more conducive to browsing than a free-flow layout

Front 59

In general, a cluttered and crowded arrangement of merchandise conveys to customers a sense that the store focuses on ________.

Back 59

low priced merchandise

Front 60

A retail site's storefront and marquee are both examples of ______

Back 60

visual merchandising

Front 61

Which of the following statements about the use of color in retail stores is true?

Back 61

Orange is used to stimulate hunger

Front 62

Which of the following statements about retail store personnel is true?

Back 62

Shoppers tend to rate the quality of service they receive from sales personnel as low

Front 63

Why has the practice of running frequent sales often backfired for retailers?

Back 63

Consumers become trained to buy only when the retailer is having a sale

Front 64

A store using an everyday low-pricing (EDLP) strategy does what?

Back 64

sets prices between the list price the manufacturer suggests and the deeply discounted price stores that compete on price alone offer

Front 65

In terms of the basic types of retail locations, the traditional downtown business area found in most towns and cities is referred to as a _______

Back 65

central business district

Front 66

A ________ is a group of commercial establishments owned and managed as a single property

Back 66

shopping center

Front 67

Which of the following statements about shopping centers is true?

Back 67

The smallest form of shopping center is called a strip center

Front 68

What is the best example of an anchor store?

Back 68

a department store such as Macy's in a shopping center

Front 69

_______ accurately describes a lifestyle center

Back 69

It combines the feel of a neighborhood park with the convenience of a strip mall

Front 70

A ________ is a smaller shopping center with upscale stores, convenient locations, and expensive landscaping. It is typically located near affluent residential neighborhoods

Back 70

lifestyle center

Front 71

What is true about freestanding retailers?

Back 71

They are located by themselves in a separate building

Front 72

Store location planners look at a store's ________, the geographic zone that accounts for the majority of its sales and customers

Back 72

trade area

Front 73

Store location planners conducting a site evaluation would consider all of the following EXCEPT

Back 73

the impact of color on customer behavior

Front 74

Why do stores locate in saturated trade areas?

Back 74

to access high customer traffic

Front 75

A(n) ________ trade area is a site where a sufficient number of stores already exist and the retailer believes it can compete successfully by going head-to-head with the competition

Back 75

saturated

Front 76

The Home Depot entered the market as a store for professional and amateur plumbers, electricians, and carpenters. Then it introduced its garden centers. Next came its home design center that provides help with all kinds of interior decorating problems. Now it is enlarging its garden centers and hiring knowledgeable gardeners to staff these centers. The addition of more amenities and greater assortment can be best explained by ...

Back 76

the wheel-of-retailing hypothesis

Front 77

The Healthy Bites Grill is fast-food restaurant chain that sells burgers made from lean buffalo meat, fries that aren't fried, and veggie pockets with soy cheese. The company is four years old and already has outlets in New York, Japan, Canada, and Kuwait, and has plans to expand to many other markets. In which stage of the retail life cycle is the Healthy Bites Grill?

Back 77

growth

Front 78

What identifies how the wheel-of-retailing hypothesis and the retail life cycle are alike?

Back 78

They both indicate that most retailers shift strategies over time

Front 79

V&E Bridal Design Shop caters to engaged couples who desire a traditional Eastern Asian wedding ceremony. The brides-to-be who shop at this store are typically Japanese, Laotian, Vietnamese, Korean, or Chinese. This retailer has used ________ to identify a market segment

Back 79

demographics

Front 80

When sales are made in a local Walmart, the sales data is sent to Walmart headquarters where the data are used to build a picture of the buying habits of people who shop at individual Walmarts across the nation. The use of ________ makes this possible

Back 80

POS system

Front 81

Josh purchased a new tie from an upscale men's clothing store to impress the managers he would meet at an important job interview. The day after the job interview, Josh returned the tie to the store for a full refund. This is an example of ________.

Back 81

retail borrowing

Front 82

Costco's surprise offerings of seconds, overstocks, and closeouts–occasionally including diamonds–is an example of how a retailer can differentiate itself through its ________

Back 82

merchandise mix

Front 83

A shoe department carries more than fifty-five different styles of white sandals. This is a description of the shoe department's ________

Back 83

merchandise depth

Front 84

The Paper Moon sells gift wrapping paper, stationery, and greeting cards. It does not sell any other products. The number of different kinds of wrapping paper, stationery, and cards make up its _______

Back 84

merchandise assortment

Front 85

Five years ago, the Paradise Surf Shop was the only surf-gear store catering to women. It carried everything the serious female surfer needed to ride the waves. In terms of its merchandise assortment, it had a ________ assortment

Back 85

narrow and deep

Front 86

At Neiman Marcus, a first-class department store, customers shop for specialty products and have come to expect assistance in every phase of the shopping process. Neiman Marcus is a _______

Back 86

full service retailer

Front 87

Stop-N-Go and Circle K, small stores that traditionally have had a market of consumers who are willing to pay a higher price for the ease of buying staples close to home, are _______

Back 87

convenience stores

Front 88

GameStop sells video games and systems, offering a narrow product line with a deep assortment within that line. GameStop is a(n) ________

Back 88

specialty store

Front 89

ShopWell, a large supermarket chain, wants to offer a wider variety of fresh ready-to-go meals for its customers. ShopWell has contracted with The Great Wall, a Chinese restaurant, and Salad Heaven, a health food restaurant, to set up small take-out areas within the supermarket. This arrangement is an example of _______

Back 89

leased departments

Front 90

Stan Clark, the owner of Eskimo Joe's bar, is considering closing the bar and selling the logo apparel with direct marketing through a catalog. Stan Clark is considering a(n) ________ option

Back 90

nonstore retailing

Front 91

A telephone call from a salesperson requesting you to purchase a subscription to an educational magazine designed to help children improve their math skills is an example of which of the following?

Back 91

direct selling

Front 92

Using current sales as a predictor, which products would likely be most effectively sold using direct selling?

Back 92

cleaning products

Front 93

Which of the following products would most likely be sold through automatic vending?

Back 93

beverages

Front 94

The purchase of a set of flannel sheets from the Lands' End catalog Web site is an example of ________ e-commerce

Back 94

B2C

Front 95

The Paradise Surf Store carried everything the serious female surfer needed to ride the waves. It displayed lightweight surfboards with flowers painted on them stacked along the walls of the store. It also had clean, well-lit dressing rooms for trying on wetsuits and knowledgeable staff who knew what a woman needed to succeed in an essentially male-dominated sport. These factors together created its _______

Back 95

store image

Front 96

In which of the following would you be most likely to see a free-flow layout?

Back 96

a clothing specialty store like the Gap

Front 97

The lighting in Jake's Steak Restaurant is muted. The chairs are covered in leather and solid enough to last a lifetime, and each table is covered with a white linen cloth. The colors are limited to earth tones with an occasional splash of red. Patrons can not hear any kitchen noises, only a pleasant melody that seems familiar but unrecognizable. The smells are extraordinarily varied. This is a description of the restaurant's ______

Back 97

atmospherics

Front 98

What is most likely true about shoppers who prefer to shop at lifestyle centers?

Back 98

They value an aesthetically pleasing shopping environment

Front 99

Laclede's Landing in downtown St. Louis, Missouri, has been turned into a vibrant development with small shops and restaurants. It has done a lot to reverse the fortunes of the aging area near the river, including helping to increase foot traffic enough to support entertainment areas and the opening of additional stores. This is an example of...

Back 99

a festival marketplace

Front 100

Kurt Jeannopolous is looking to locate one of his men's clothing stores in an area with a growing population but few retail options. Kurt is looking for a(n) ________ trade area

Back 100

understored