Q&A Hero

Q: The four utilities offered to consumers through retailing are a. convenience, performance, possession, and form. b. time, place, possession, and form. c. product, price, place, and promotion. d. people, productivity, process, and physical environment. e. convenience, consistency, competition, and choice.

Q: A management approach in which a manger is assigned the responsibility for selecting all products that consumers in a market segment might view as substitutes for each other, with the objective of maximizing sales and profits in the category, is referred to as __________. a. capacity management b. product management c. retail inventory management d. category management e. automated inventory control

Q: The __________ provided by retailers create value for consumers. a. utilities b. wholesaling functions c. outsourcing d. logistics e. synergies

Q: The use of displays, coupons, product samples, and other brand communications to influence shopping behavior in a store is referred to as a. functional qualities b. level of service c. shopper marketing d. lifestyle attributes e. psychographic elements

Q: Retailing is an important marketing activity. Not only do producers and consumers meet through retailing actions, but retailing also creates __________. a. the nation's largest source of tax revenues b. the largest source of charitable contributions c. limited utilities for consumers d. customer value e. a sense of community

Q: The music played in the grocery store has a slow tempo to get shoppers to stay longer and hopefully put more items in their cart. Music is part of the grocery store's __________. a. atmosphere b. image c. psychological attributes d. personality type e. sociological profile

Q: Retailing refers to all activities involved in the a. selling, renting, and providing of products and services to ultimate consumers for personal, family, or household use. b. selling of tangible products to ultimate consumers for personal, family, or household use. c. selling of tangible products to ultimate consumers for personal, household, or industrial use. d. selling, renting, leasing, or reselling of products and services to ultimate consumers or small industrial users. e. selling, renting, and providing of products and services without retaining the title to these offerings.

Q: Store layout, colors, lighting, and music are all considered part of a store's retail a. image. b. psychological attributes. c. antecedent attributes. d. personality type. e. atmosphere.

Q: All activities involved in selling, renting, and providing products and services to ultimate consumers for personal, family, or household use are referred to as __________. a. manufacturing b. retailing c. wholesaling d. facilitating e. logistics

Q: Intangibles such as a sense of belonging, excitement, style, or warmth are considered to be __________ of a store's image. a. functional qualities b. sociological qualities c. psychological attributes d. antecedent attributes e. personality elements

Q: Why do retailers like location-based apps such as Foursquare? a. they use audio and video to communicate a message b. all consumers demand technology-based offerings today c. they are free d. they attract consumers who are not price sensitive e. they provide an opportunity to personalize offerings to potential customers

Q: Price ranges, store layouts, and breadth and depth of merchandise lines are considered to be __________ of a store's image. a. functional qualities b. sociological qualities c. psychological attributes d. lifestyle attributes e. atmospheric elements

Q: Foursquare, Gowalla, Booyah, Brightkite, and Loopt are a. multiplayer video games. b. advertising agencies. c. location-based social networking apps for smartphones. d. names of new phones targeted at college students. e. restaurants with new food concepts.

Q: Loblaws, a Canadian supermarket, features fruits and vegetables piled high on tables that have umbrellas. The idea behind this arrangement was to give Loblaws "a market feel." In terms of the retailing mix, this tactic is related to __________. a. pricing b. goods and services factor c. communication d. merchandise e. location

Q: Location-based social networking apps such as Foursquare reward customers for a. using minutes on their mobile phones. b. shopping online. c. responding to TV ads. d. reporting their locations and visiting stores. e. answering customer service surveys on their mobile phones.

Q: Texas-based Whole Foods supermarkets target people who want to eat healthy. The stores use placards throughout, which tell shoppers about the farmers who grew and harvested the various products sold. This use of signage to provide consumer information is a part of which element of the retailing mix? a. communication b. pricing c. merchandise d. goods and services factor e. location

Q: Impressions of the corporation that operates the store, the category or type of store, the product categories in the store, the brands in each category, merchandise and service quality, and the marketing activities of the store all contribute to the store's a. prices. b. image. c. emotional feelings. d. name. e. psychological attributes.

Q: In the late 1950s, Pierre Martineau described __________ as "the way in which the store is defined in the shopper's mind." a. size b. location c. product mix d. image e. anchor store

Q: Large strip malls that often have two to five anchor stores, a supermarket, and are designed to bring shoppers on a weekly basis are referred to as a. suburban malls. b. warehouse malls. c. power centers. d. retail malls. e. cluster malls.

Q: A huge shopping strip with multiple anchor (or national) stores is referred to as a __________. a. central business district b. regional shopping center c. community shopping center d. strip mall e. power center

Q: Not every suburban store is located in a shopping mall. Many neighborhoods have clusters of stores, referred to as a strip mall, to serve people who are within a 5- to 10-minute drive. Unlike the larger shopping centers, the composition of these stores is usually __________. a. unplanned b. national anchor stores c. privately-owned specialty stores d. fast food restaurants e. amusement and theme parks

Q: A strip mall refers to a a. suburban mall containing up to 100 stores that draws customer from a 5-to 10-mile radius. b. a cluster of stores in a downtown area. c. retail location that typically has one primary store (usually a department store branch) with 20 to 40 smaller outlets serving a population of consumers who are within a 10- to 20-minute drive. d. cluster of neighborhood stores designed to serve people within a five- to ten- minute drive. e. collection of category killers usually located outside a major amusement park or attraction.

Q: A cluster of neighborhood stores that serves people within a 5-to 10-mile radius is referred to as a(n) a. suburban shopping mall. b. strip mall. c. mini-mart. d. hypermarket. e. central business district.

Q: A community shopping center refers to a a. suburban mall containing up to 100 stores that draws customer from a 5-to 10-mile radius. b. cluster of stores in a downtown area. c. cluster of stores that serves people who are within a five- to ten-minute drive. d. collection of category killers usually located outside a major amusement park or attraction. e. retail location that typically has one primary store (usually a department store branch) with 20 to 40 smaller outlets serving a population of consumers who are within a 10- to 20-minute drive.

Q: A retail location that typically has one primary store (usually a department store branch) with 20 to 40 smaller outlets serving a population of consumers who are within a 10- to 20-minute drive is referred to as a(n) __________. a. power center b. regional shopping center c. community shopping center d. central business district e. urban megacenter

Q: Which of the following stores are most likely to be an anchor store at a regional shopping center? a. Old Navy, Abercrombie & Fitch, and Kay-Bee toy store b. Hickory Farms, a locally-owned jewelry store, and Radio Shack c. an antique store, Dollar General, and a bakery d. Sears, Macy's, and JCPenney e. Hallmark shop, a sporting goods consignment store, and a Barnes & Noble bookstore

Q: The West Edmonton Mall in Alberta, Canada is a conglomerate of more than 800 stores, the world's largest indoor amusement park, more than 100 restaurants, a movie complex, and two hotels. This retail complex is an example of a(n) __________. a. regional shopping center b. urban microcenter c. megaplex d. hypermarket e. supercenter

Q: Large shopping areas often contain two or three __________ stores, which are well-known national or regional stores such as Sears, Saks Fifth Avenue, and Bloomingdale's. a. power centers b. mega centers c. anchor d. value e. outlet

Q: A group of 50 to 150 stores that typically attract customers who live or work within a 5- to 10-mile range, often containing two or three anchor stores is referred to as a __________. a. power center b. regional shopping center c. strip mall d. central business district e. urban megacenter

Q: Regional shopping centers refer to a a. retail cluster in a downtown area. b. retail location that typically has one primary store and about 20 to 40 smaller outlets, and serves a population base of about 100,000. c. cluster of stores that serve people who are within a five- to ten-minute drive and serves a population base of under 30,000. d. group of 50 to 150 stores that typically attract customers who live or work within a 5- to 10-mile range, often containing two or three anchor stores. e. retail cluster of stores in uptown areas.

Q: Consumers often view central business district shopping as less convenient because of the lack of parking, higher crime rates, and __________. a. out-dated stores b. a lack of ambiance c. fewer quality restaurants d. few public restrooms e. exposure to the weather

Q: The oldest retail setting, usually located in the community's downtown area, is referred to as a. the central business district. b. main street. c. community anchor. d. uptown center. e. historical commerce district.

Q: The central business district refers to a. a suburban mall that contains up to 100 stores and draws customer from 5 to 10 miles away. b. the oldest retailing setting, located in a community's downtown area. c. a retail location that typically has one primary store and about 20 to 40 smaller outlets, and serves a population base of about 100,000. d. a cluster of stores that serves people who are within a five- to ten-minute drive and serves a population base of under 30,000. e. a collection of large stores over 100,000 square feet that offers a mix of about 40 percent food products and 60 percent general merchandise items.

Q: Most stores today are near several others in one of five settings: the central business district, the regional shopping center, the community shopping center, the strip mall,or the __________. a. rural micromall b. urban megacenter c. power center d. exurb value center e. suburban downtown

Q: Most stores today are near several others in one of five settings: the central business district, the community shopping center, the regional shopping center, the power center, or the __________. a. suburban downtown b. strip mall c. exurb value center d. rural micromall e. urban megacenter

Q: Most stores today are near several others in one of five settings: the central business district, the community shopping center, the strip mall, the power center, or the __________. a. exurb value center b. urban megacenter c. suburban downtown d. regional shopping center e. rural micromall

Q: Most stores today are in one of five settings that include all of the following EXCEPT: a. the regional shopping center. b. the strip mall. c. the uptown shopping center. d. the community shopping center. e. the power center.

Q: Off-price stores that attract customers who like a "corner store" environment rather than a large supercenter experience are referred to as __________. a. extreme value retailers b. hypermarkets c. warehouse clubs d. outlet stores e. everyday value retailers

Q: Dollar General and the Dollar Tree are examples of which type of retailer? a. warehouse club b. hypermarket c. outlet store d. everyday value retailer e. extreme value retailer

Q: Another name for an extreme value retailer is a(n) __________. a. specialty outlet b. single-price retailer c. hypermarket d. outlet store e. warehouse club

Q: Saks Fifth Avenue Off 5th Photo Consider the Saks Fifth Avenue Off 5th photo above. This retailer is an example of a(n) __________. a. hypermarket b. off-price store c. outlet store d. category killer e. warehouse club

Q: Nordstrom Rack and the Gap Factory Store allow retailers to sell excess merchandise and still maintain an image of offering merchandise at full price in their primary stores. These retailers are referred to as __________. a. extreme value retailers b. warehouse clubs c. discount houses d. outlet stores e. community shopping centers

Q: A variation of off-price retailing includes __________. a. discount wholesalers b. outlet stores c. discount retailers d. supermarkets e. hypermarkets

Q: Sam's Club and Costco are examples of __________. a. supercenters b. hypermarkets c. warehouse clubs d. single-price retailers e. outlet stores

Q: A(n) __________carries 4,000 to 8,000 items and usually stocks just one brand of appliance or food product. a. warehouse club b. single-price retailer c. extreme value retailer d. hypermarket e. supercenter

Q: An off-price retailer that requires customers to purchase an annual membership card for the privilege of shopping at the store is referred to as a __________. a. outlet store b. single-price retailer c. hypermarket d. warehouse club e. supercenter

Q: Three common forms of off-price retailers are a. warehouse clubs, factory outlet stores, and hypermarkets. b. warehouse clubs, factory outlets, and extreme value retailer. c. factory outlets, single-price retailers, online auction services. d. factory outlets, supercenters, hypermarkets. e. extreme value retailers, buying clubs, online auction services.

Q: Savings to the consumer at off-price retailers are reported as high as __________ off the prices of a traditional department store. a. 50% b. 60% c. 70% d. 80% e. 90%

Q: T.J. Maxx HomeGoods Photo Consider the T.J. Maxx HomeGoods photo above. This retailer uses a(n) __________ pricing practice. a. markdown b. maintained markup c. gross margin d. manufactured suggested retail e. off-price retail

Q: Merchants such as the Burlington Coat Factory sell brand-name merchandise at lower than regular prices. As such, they are using a(n) a. off-price retailing strategy. b. markdown pricing strategy. c. everyday fair pricing strategy. d. everyday low pricing strategy. e. maintained markdown pricing strategy.

Q: The major difference between an off-price retailer and a discount store is that off-price retailers purchase merchandise from manufacturers __________ and discount stores buy from wholesalers __________. a. who are trying to offload returned or slightly irregular inventory; selling new but inexpensive merchandise b. at below wholesale prices; and charge a high initial price with the full intent of taking markdowns later c. at below wholesale prices; at full price but take a less of a markup d. at various price points; at the lowest price points possible e. who are part of a retailing cooperative; who are part of a wholesaling cooperative

Q: The sale of brand name merchandise at lower than regular prices is referred to as __________. a. discount pricing b. everyday low pricing c. markdown pricing d. off-price retailing e. loss-leader pricing

Q: Off-price retailing refers to the a. differences between the final selling price and the retailer's cost. b. sale of brand name merchandise at lower than regular prices. c. sales of merchandise at maintained markups. d. amount added by the manufacturer to achieve the desired suggested retail price. e. reduction in retail price usually expressed as the gross margin.

Q: The National Retail Federation estimates that about __________ percent of retail shrinkage is due to employee theft. a. 14 b. 24 c. 34 d. 44 e. 54

Q: Shrinkage refers to a. the declining number of small privately owned retail stores due to economic hard times. b. breakage, theft, and fraud by customers and employees. c. the percentage of inventory that is damaged or unsalable because of product failure or problems in shipping. d. loss of profits in clothing items that are returned because of inferior materials. e. polycarbonate packaging that encases products with a tamper-resistant plastic seal.

Q: Which of the following statements regarding retail pricing is most accurate? a. Consumers will often base their perceptions of a store's prices on a benchmark of the highest priced item in the store. b. Consumers are influenced more by a store's ambiance than its product prices. c. Stores that offer rebates and take an excessive amount of time to process them may create negative consumer perceptions. d. New technology has almost made shrinkage a thing of the past. e. The only difference between everyday low pricing and everyday fair pricing is whether the store sells food or non-food items.

Q: Consumers often use the prices of __________ items, such as a can of Coke, to form an overall impression of the store's prices. a. benchmark b. stoplight c. point-of-purchase d. value-based e. loss-leader

Q: Many retailers advocate a(n) __________ strategy, a pricing strategy that may not offer the lowest prices but does try to create value for customers through its service and the total buying experience. a. customer loyalty b. emphasize-value c. everyday low pricing d. low-margin e. everyday fair pricing

Q: Walmart and Home Depot emphasize consistently low prices and eliminate most markdowns with a retail pricing strategy called a. low-margin. b. value based. c. everyday low pricing. d. everyday fair pricing. e. markdown pricing.

Q: Emphasizing consistently low prices and eliminating most markdowns is referred to as __________. a. low-margin pricing b. everyday low pricing c. everyday fair pricing d. value-based pricing e. maintained pricing

Q: The largest inventory of wedding dresses in the Southeast can be found at Low's Bridal and Formal in Brinkley, Arkansas. From December 26 to January 16, a prospective bride shopping at Low's can find gowns once priced at $6,000 for $2,999 and $800 gowns for $400. The reduced prices of these gowns are reflected in which retail pricing strategy? a. markdowns b. original markups c. maintained markups d. inventory shrinkages e. net markups

Q: Timing is an important element of markdowns. Those retailers who take a markdown as soon as sales fall off are most likely doing so to __________. a. placate dissatisfied customers b. enhance customer perceptions of product quality c. create an image as a "cutting edge" retailer d. free up valuable selling space and cash e. react to the entry of a new competitor

Q: To increase demand for complementary products, the price of a product often is a. marked up. b. off-priced. c. marked down. d. value-added. e. maintained.

Q: Markdowns can be used to a. increase competition with other retailers in the immediate vicinity. b. placate dissatisfied customers. c. enhance customer perceptions of product quality. d. increase demand for complementary products. e. create a sense of urgency amongst repeat buyers.

Q: To increase the demand for complementary products, the price of a product often is a. marked up b. marked down c. off-priced d. value-subtracted e. maintained

Q: Often new models or styles force the price of existing models to be __________. a. marked up b. off-priced c. value-subtracted d. maintained e. marked down

Q: When retailers set prices on new models or styles of products, the price of existing models often is _________. a. marked up b. off-priced c. value-added d. marked down e. maintained

Q: A markdown refers to a. the difference between the final selling price and the retailer's cost. b. the amount the manufacturer adds to achieve the desired suggested retail price. c. discounting a product when the product does not sell at the original price. d. the lowest price to which a retailer can reduce a sales ticket and still make a profit. e. the net margin.

Q: Discounting a product when the product does not sell at the original price is referred to as __________. a. inverse markup b. markdown c. price sensitivity d. concession pricing e. rebate

Q: Many retailers take a markdown as soon as sales fall to free valuable selling space and cash. This concept of retail pricing based on _________. a. timing b. demand c. availability d. bargain hunting e. customer value

Q: A retailer bought a collectible Precious Moments figurine for $26. She sets the initial selling price at $60. The final selling price was $52. What was the original markup? a. $8 b. $16 c. $26 d. $34 e. $86

Q: Another term for maintained markup is __________. a. original markup b. maintained markup c. markdown d. gross margin e. net margin

Q: Another term for gross margin is __________. a. original markup b. markdown c. return on sales d. discounted price e. maintained markup

Q: The difference between the final selling price and the retailer's cost is referred to as a(n) __________. a. original markup b. maintained markup c. markdown d. differential markup e. discounted price

Q: A maintained markup refers to a. the difference between the final selling price and the retailer's cost. b. the amount subtracted from the cost the retailer paid for a product to reach the initial selling price. c. the amount the manufacturer adds to achieve the desired suggested retail price. d. the net margin. e. the highest price listed on the product sales ticket.

Q: A retailer bought a collectible Precious Moments figurine for $26. She sets the initial selling price at $60. The final selling price was $52. What was the original markup? a. $8 b. $16 c. $26 d. $34 e. $86

Q: The difference between the retailer's cost and the initial selling price is referred to as __________. a. markup b. maintained markup c. markdown d. differential markup e. original markup

Q: The amount added to the cost the retailer paid for a product to reach the final selling price is referred to as a(n) __________. a. markup b. markdown c. original markup d. maintained markup e. cost-plus markup

Q: A markup refers to a. the difference between the final selling price and how the customer values the product. b. selling brand name merchandise at lower than regular prices. c. the amount added to the cost the retailer paid for a product to reach the final selling price. d. the difference between the retail cost and initial selling price. e. the reduction in retail price, usually expressed as a percentage equal to the amount reduced, divided by the original price, and multiplied by 100.

Q: When setting prices for merchandise, retailers must decide on the markup, markdown, and the __________ for markdowns. a. relevance b. necessity c. percentage d. timing e. consequence