Q&A Hero

Q: When developing marketing strategies, marketing managers use the elements of the marketing mix, which includes product, price, place, and promotion. In a similar fashion, when developing retailing strategies, marketers use what is called the retailing mix, which includes a. retail pricing, store location, retail communication, and merchandise. b. products and services, promotions, and communications. c. physical distribution, promotions, and communications. d. physical distribution, products, and personal selling. e. products, price, and personal selling.

Q: The retailing mix includes all of the following EXCEPT: a. merchandise. b. target market. c. retail pricing. d. store location. e. retail communication.

Q: When developing retailing strategies, marketers use what is called the retailing mix, which includes a. products, services, promotions, and retail communication. b. promotions, publicity, and press releases. c. retail pricing, store location, retail communication, and merchandise. d. physical environment, people, process, and productivity. e. direct mail, online stores, traditional stores, and outlet stores.

Q: The retailing mix refers to a. the activities related to managing the store and the merchandise in the store, which includes product, price, promotion, and place. b. the activities related to managing the store and the merchandise in the store, which includes the four utilities time, form, possession, and place. c. the activities related to managing the store and the merchandise in the store, which includes the colors, sizes, shapes, and perceived value of the store's products. d. the activities related to managing the store and the merchandise in the store, which includes retail pricing, store location, retail communication, and merchandise. e. the activities related to managing the store and the merchandise in the store, which includes selection of store location, selection of merchandise, hiring and training of employees, and promotion of both the store and products.

Q: The retailing mix refers to the activities related to the management of and the merchandise in the store, which includes a. retail pricing, store location, retail communication, and merchandise. b. product, price, promotion, and place. c. the utilities of time, form, possession, and price. d. the colors, sizes, shapes, and point-of-purchase display locations of the store's products. e. selection of store location, selection of merchandise, hiring and training of employees, and promotion of both the store and products.

Q: The activities related to managing the store and the merchandise in the store, which includes retail pricing, store location, retail communication, and merchandise are referred to as the __________. a. wheel of retailing b. distribution mix c. retail life cycle d. retailing mix e. retail store positioning

Q: Figure 1. Which of the following stores would best fit in "D" shown in Figure 1. above? a. Kmart b. Payless ShoeSource c. Dillard's department store d. a Toyota automobile dealer e. Tiffany & Co.

Q: Figure 1. Which of the following stores would best fit in "C" shown in Figure 1. above? a. Kmart b. Payless ShoeSource c. Dillard's department store d. 7-Eleven e. Lamborghini automobile dealer

Q: Figure 1. Which of the following stores would best fit in "B" shown in Figure 1. above? a. Kmart b. Payless ShoeSource c. Bloomingdales department store d. 7-Eleven e. Lamborghini automobile dealer

Q: Figure 1. Which of the following stores would best fit in "A" shown in Figure 1. above? a. Payless ShoeSource b. Macy's department store c. 7-Eleven convenience store d. Walmart e. Lamborghini automobile dealer

Q: The value added dimension of the retail positioning matrix includes elements such as location, product reliability, and __________. a. prestige b. price c. market share d. number of employees e. level of service

Q: The value added dimension of the retail positioning matrix includes elements such as location, prestige, and __________. a. level of service b. market share c. price d. number of employees e. product reliability

Q: The value added dimension of the retail positioning matrix includes elements such as product reliability, prestige, and __________. a. level of service b. market share c. location d. price e. number of employees

Q: The horizontal dimension of the retail positioning matrix is a. depth of product line. b. value added. c. relative market share. d. breadth of product line. e. stage in the retail life cycle.

Q: The vertical dimension of the retail positioning matrix is a. depth of product line. b. relative market share. c. value added. d. breadth of product line. e. stage in the retail life cycle.

Q: The retailing positioning matrix refers to an analytical tool that a. positions retail outlets in terms of the breadth of product line and value added. b. identifies the best location for building or leasing a retail store. c. identifies the specific customer base served by all stores within a given radius. d. identifies the most likely target market for a retail outlet based upon its size. e. identifies the elements of the retailing mix.

Q: The analytical tool that positions retail outlets in terms of the breadth of their product line and value added, such as location, product reliability, or prestige, is referred to as the __________. a. BCG growth share matrix b. MAC breadth-depth of line framework c. market-product grid d. retail positioning matrix e. wheel of retailing framework

Q: A customer was unable to go to the store on her own to buy gifts for the holidays. She contacted a Tupperware representative who came to her home, showed her not only catalogs but actual products, answered all her questions, and had all the customer's gifts sorted and delivered. This is an example of __________. a. interface marketing b. flex-marketing c. direct selling d. interactive selling e. responsive selling

Q: The Direct Selling Association reports that the number of companies using direct selling has __________ in the past five years. a. increased by 10 percent b. increased by 30 percent c. increased by 50 percent d. decreased by 20 percent e. decreased by 40 percent

Q: Direct selling is likely to continue to grow in markets a. for people who prefer not to have a social shopping experience. b. where there are effective distribution channels. c. in which consumers are knowledgeable shoppers. d. where door-to-door convenience is important. e. that have an excellent infrastructure.

Q: Which of the following statements regarding direct selling is most accurate? a. Unlike other forms of nonstore retailing, direct selling takes place in the business market. b. Direct selling is found exclusively in the United States. c. Direct selling succeeds because it provides customers with convenience and personalized service. d. Direct sales have been declining rapidly in the United States since the 1980s. e. By definition, direct selling can only take place in a home.

Q: Growth in the direct-selling industry is the result of two trends: (1) there is a growing number of companies that are using direct selling to reach consumers who prefer one-on-one customer service and a social shopping experience rather than online shipping or big discount stores and (2) a. many direct selling retailers are expanding into markets outside of the United States. b. increased gas prices and traffic congestion are causing people to want stores to deliver products to them. c. the pendulum is beginning to swing back to more mothers (and fathers) staying home during the day with children, making direct selling more convenient. d. the purchase or lease of real estate to build an actual "brick" retail store is becoming prohibitive. e. graduating business students are finding it more difficult to find a traditional sales position and like the idea of being their own bosses.

Q: Growth in the direct-selling industry is the result of two trends: (1) direct selling retailers are expanding into markets outside the United States and (2) a. increased gas prices and traffic congestion are causing people to want the store to deliver the products to them. b. the pendulum is beginning to swing back to more mothers (and fathers) staying home during the day with children, making direct selling more convenient. c. the purchase or lease of real estate to build an actual "brick" retail store is becoming prohibitive. d. graduating business students are finding it more difficult to find a traditional sales position and like the idea of being their own bosses. e. there is a growing number of companies that are using direct selling to reach consumers who prefer one-on-one customer service and a social shopping experience rather than online shopping or big discount stores.

Q: Direct selling is likely to continue to have strong growth in markets a. in which people prefer not to have a social shopping experience. b. where convenience is not especially important. c. in which consumers are knowledgeable shoppers. d. where there is a lack of effective distribution channels. e. that have an excellent infrastructure.

Q: In response to the changes in the United States, many direct sellers are implementing a __________ strategy by expanding into other countries with their current product lines. a. market development b. market penetration c. accelerated development d. product development e. diversification

Q: Companies such as Avon, Fuller Brush, Mary Kay, and World Book are examples of firms that use a. interface marketing. b. flex-marketing. c. direct selling. d. interactive selling. e. responsive selling.

Q: Direct selling, sometimes called _________, involves direct sales of goods and services to consumers through personal interactions and demonstrations in their home or office. a. interface marketing b. flex-marketing c. interactive selling d. responsive selling e. door-to-door retailing

Q: Sales of goods and services to consumers through personal interactions and demonstrations in their home or office is referred to as direct selling, or __________. a. person-to-person sales b. interactive selling c. door-to-door retailing d. individual promotion e. customized selling

Q: The sales of products and services to consumers through personal interactions and demonstrations in their homes or offices is referred to as __________. a. direct selling b. person-to-person sales c. face-to-face selling d. direct response selling e. customized selling

Q: Consumers who do not want to receive telephone calls related to company sales efforts can a. purchase telephones that block unwanted calls. b. place their telephone numbers on the National Do-Not-Call Registry. c. request phone numbers that begin with the area code 555 that automatically block telemarketing solicitors. d. request phone numbers that begin with the area code 888 that automatically block telemarketing solicitors. e. use an unlisted telephone number.

Q: Which of the following statements regarding telemarketing is most accurate? a. Shopping bots are computers that place automated or "robo" (i.e. robotic) telemarketing calls. b. Direct-mail is typically viewed as more efficient means of targeting consumers than telemarketing. c. Telemarketing has risen in popularity as a result of the National Please-Do-Call registry legislation. d. Consumer privacy, industry standards, and ethical guidelines have become important issues. e. Some firms are considering shifting their direct-mail and door-to-door budgets to telemarketing techniques.

Q: In the telemarketing industry, issues such as consumer privacy, __________, and industry standards have become a topic of discussion among consumers, Congress, the Federal Trade Commission (FTC), and businesses. a. product quality b. price differences c. on-time delivery d. competitive antics e. ethical guidelines

Q: In the telemarketing industry, issues such as __________, ethical guidelines, and industry standards have become a topic of discussion among consumers, Congress, the Federal Trade Commission (FTC), and businesses. a. competitive antics b. coercion tactics c. freedom of speech d. language issues e. consumer privacy

Q: According to the Direct Marketing Association, annual telemarketing sales exceed __________. a. $10 billion b. $28 billion c. $137 billion d. $332 billion e. $500 billion

Q: Using the telephone to interact with and sell directly to consumers is referred to as __________. a. digital marketing b. telemarketing c. solicitation marketing d. direct contact marketing e. direct selling

Q: In China, 130,000 Internet cafes serve __________ customers. a. 163,000 b. 16,300,000 c. 163,000,000 d. 1,630,000,000 e. 16,300,000,000

Q: Experts suggest that online retailers should think of their websites as __________ if they are to attract and retain customers. a. cash cows b. dynamic billboards c. virtual reality stores d. traditional retail stores e. online entertainment

Q: One of the biggest problems online retailers face is that nearly two-thirds of online shoppers make it to "checkout" and then leave the website to compare shipping costs and prices on other sites. Of the shoppers who leave, __________ percent do not return. a. 30% b. 40% c. 50% d. 60% e. 70%

Q: One of the biggest problems online retailers face is that nearly __________ of online shoppers make it to "checkout" and then leave the website to compare shipping costs and prices on other sites. a. 16% b. 26% c. 36% d. 56% e. 66%

Q: Some retailers now allow consumers to respond to their text messages announcing a sale for a specified time period. Consumers must then visit the site to purchase the sale items. Which of the following retailing websites offer these limited time "flash sales?" a. TextBuyIt b. Best Buy c. PeaPod d. eBay e. Gilt

Q: Online retail purchases by consumers can be the result of several very different approaches, which include: (1) paying dues to become a member of an online discount service; (2) using a shopping "bot" to search for a product at the best price; (3) going directly to online malls; and (4) a. becoming a member of a research group that evaluates new products. b. becoming a secret shopper. c. participating in an online auction. d. participating in a buying cooperative. e. becoming a PURL.

Q: Online retail purchases by consumers can be the result of several very different approaches, which include: (1) paying dues to become a member of an online discount service; (2) participating in an online auction; (3) going directly to online malls; and (4) a. becoming a secret shopper. b. participating in a buying cooperative. c. becoming a PURL. d. using a shopping "bot" to search for a product at the best price. e. becoming a member of a research group that evaluates new products.

Q: Online retail purchases by consumers can be the result of several very different approaches, which include: (1) using a shopping "bot" to search for a product at the best price; (2) participating in an online auction; (3) going directly to online malls; and (4) a. paying dues to become a member of an online discount service. b. becoming a secret shopper. c. participating in a buying cooperative. d. becoming a PURL. e. becoming a member of a research group that evaluates new products.

Q: Walmart recently introduced "Pick Up Today" service that a. offers shoppers a virtual reality shopping experience from their home computers. b. allows customers to order online and receive free same-day pickup at a local store. c. allows customers to place lay-away orders online and keep them at the store until they are fully paid. d. allows customers to surf the Internet to compare prices; for those that find a better deal, they can e-mail Walmart and the retailer will honor competitors' lowest price. e. allows customers hold online auctions for Walmart overstock or seasonal items that are being discontinued to make room for new inventory.

Q: The term "bricks and clicks" refers to __________ and __________ respectively. a. catalogs; websites b. search engines; websites c. traditional retailers; online retailers d. buildings; mice e. computer savvy buyers; computer novice buyers

Q: Which type of utility is created by online shopping? a. time b. price c. product d. process e. promotion

Q: Several television shopping programs are developing online platforms, which may attract as many as 50 percent of all new customers, and interactive technology, that allows viewers to place orders a. without having to pay sales tax. b. without having to pay for shipping or handling. c. through online company websites. d. with a "double your money back guarantee" if the items are not delivered within 24 hours. e. with their remote control rather than the telephone.

Q: In the past, television home shopping programs have attracted mostly a. 20 to 30 year old men. b. 30 to 40 year old women. c. 40 to 50 year old men. d. 40 to 60 year old women. e. 50 to 60 year old men.

Q: Which of the following statements regarding QVC is most accurate? a. QVC broadcasts 12 hours a day 365 days a year. b. QVC reaches approximately 195 million households in the U.S., U.K., Germany, Italy, and Japan. c. QVC never offers the same product two days in a row. d. QVC sells all its items by dropping the price to $1. regardless of the product value, if it is not sold in one day. e. QVC entices customers to "stay tuned" by offering free products to random callers.

Q: Identify and describe the functions of agents and brokers.

Q: QVC is a television home shopping network. It generates sales of more than $7 billion from its 60 million customers by a. restricting purchases only through its Mall of America studio. b. broadcasting live twelve hours a day 365 days a year. c. offering more than 1,150 products each week. d. offering overstocked items from retailers at a fraction of the original cost. e. running live podcasts and live streaming over the Internet

Q: Explain the difference between full-service and limited-service merchant wholesalers. List and describe the types of wholesalers that belong in each category.

Q: Currently, the three largest television home shopping programs in the United States are a. QVC, HSN, and ShopNBC. b. Shop at Home, QVC, and HSN. c. Direct shopper, Shop at Home, and ShopNBC. d. Valuevision, Shop at Home, and QVC. e. Shop America, Direct shopper, and J.S. Global.

Q: What changes will likely occur in the future of retailing?

Q: The marketing managers at Omaha Steaks used airlines' databases to mail a special offer to frequent flyers. Eight weeks after shipping the steaks to the frequent flyers who responded to the offer, the company's salespeople followed up by telephoning customers to ask for new orders. This is an example of which types of nonstore retailing? a. direct selling and telemarketing b. direct-mail and telemarketing c. telemarketing and online retailing d. online retailing and direct-mail e. direct-mail and direct selling

Q: Describe the retail life cycle.

Q: Jim Smith is an avid fly fisherman who lives in Deer Key, FL. For his hobby, Jim needs large rubber rafts, hip waders, special fishing rods, reels, line, and an assortment of fishing tackle and lures. There are no sporting goods stores in Deer Key, so Jim orders his fishing supplies from a L. L. Bean catalog. His supplies are generally delivered to his home within 72 hours. Jim is using a __________ to satisfy his fishing supply needs. a. home delivery retailer b. quick response retailer c. direct-mail marketer d. flexible response marketer e. regional marketer

Q: Explain how the wheel of retailing works.

Q: Multichannel Merchant magazine evaluates hundreds of entries to select the winners of the Multichannel Merchant Awards in 18 categories for companies that have excelled in a. designing the most effective direct-mail piece. b. designing the most creative catalog cover. c. implementing efficient direct-mail campaigns. d. integrating their direct-mail and catalog activities with other marketing activities. e. providing creative price promotions to channel members.

Q: What is category management and when is it used?

Q: In the direct-mail and catalog retailing, the acronym PURLS stands for __________. a. personalized URLs b. pre-sorted URLs c. pre-loaded URLs d. proactive URLs e. portable URLs

Q: List the five store locations or settings. How has the location of stores changed over the years?

Q: Usage of specialty catalogs, like those from firms like IKEA, Crate and Barrel, and L.L.Bean have been affected by all of the following factors except: a. influence of larger retailers as their marketing activities have increased the number and variety of products consumers purchase through direct mail and catalogs. b. higher paper costs, increase in postage rates, and the possibility of the U.S. Postal Service reducing delivery to five days a week. c. growing interest in do-not-mail legislation. d. concern for "green" mailings and catalogs. e. growing influence of television home shopping where consumers order over the telephone.

Q: What is off-price retailing? Identify and give an example of the three variations of off-price retailing.

Q: Higher paper costs, increased postage rates, the growing interest in do-not-mail legislation, and concern for "green" mailings have resulted in a. a switch to online catalogs and direct customer e-mail advertisements. b. the use of thinner, lightweight paper products. c. a focus on proven customers rather than on prospective customers. d. the banning of "junk" mail by a growing number of environmentally-concerned communities. e. a resurgence in non-automated telemarketing.

Q: Explain the difference between a markup, an original markup, and a maintained markup.

Q: The Direct Marketing Association estimates that direct-mail and catalog retailing creates __________ in sales. a. $100,000 b. $14,000,000 c. $190,000,000 d. $22,000,000,000 e. $669,000,000,000

Q: What is the retailing mix?

Q: The average U.S. household now receives __________ direct-mail items or catalogs each week. a. 18 b. 24 c. 32 d. 39 e. 47

Q: Explain the dimensions of the retail positioning matrix and give an example of a store that would be located in each quadrant of the matrix.

Q: An IKEA mail order catalog is an example of __________ retailing. a. intrusive b. intertype c. scrambled d. nonstore e. hypermarket

Q: Explain why direct mail is an attractive form of retailing

Q: Direct-mail and catalog retailing are examples of __________. a. nonstore retailing b. intertype retailing c. online retailing d. print-media retailing e. dual retailing

Q: Why are vending machine prices often higher than those in a retail store?

Q: Vending machines are no longer limited by the need for cash. In Japan, Korea, and the Philippines, consumers use mobile phones that transmit payments to vending machines via an infrared beam or a radio wave. This is an example of how vending machines can provide which type of utility? a. time b. place c. possession d. product e. form

Q: Explain the difference between a hypermarket and a supercenter.

Q: Vending machines are popular with consumers; recent consumer satisfaction research indicates that __________ percent of consumers believe purchasing from a vending machine is equal to or superior to a store purchase. a. 15 b. 27 c. 49 d. 63 e. 82

Q: Explain the difference between breadth of line and depth of line. Be sure to include the definition of scrambled merchandising in your explanation.

Q: The 6 million vending machines currently operating in the United States generate more than __________ in annual sales. a. $359 million b. $985 million c. $3.8 billion d. $19 billion e. $46 billion

Q: Briefly describe the three levels of service offered by retail outlets.