Q&A Hero

Q: Consumers benefit in dealing with retail corporate chains because a. corporate chains have more experience than other forms of retailers. b. they can own stock in the same company where they shop since corporate chain stock must be publicly-traded. c. they can bargain with a manufacturer to obtain product volume discounts on orders, which can be passed on to consumers in terms of lower prices. d. there are multiple outlets with varied merchandise and independent management policies. e. merchandise is arranged and displayed by professional designers making their shopping experience less stressful.

Q: Which type of outlet is most likely in its decline stage of the retail life cycle? a. single-price stores b. value-retail centers c. online retailers d. business-district retailers e. convenience stores

Q: Which of the following statements regarding corporate chains is most accurate? a. Corporate chains usually avoid using centralized decision-making. b. Corporate chains generally own most if not all of their suppliers so they do not have to negotiate for price. c. Consumers have fewer choices in merchandise since all buying decisions are made unilaterally. d. Corporate chains offer the least benefit to consumers since they are the farthest removed from the ultimate consumer. e. Corporate chains are multiple outlets under common ownership.

Q: Which type of outlet is most likely in its maturity stage of the retail life cycle? a. single-price stores b. value-retail centers c. online retailers d. business-district retailers e. convenience stores

Q: Bloomingdale's stores are all part of __________ corporate chain. a. Dillard's b. Macy's c. Target's d. Walmart's e. Saks Fifth Avenue

Q: Discounting generally takes place during which stage of the retail life cycle? a. early growth b. accelerated development c. decline d. maturity e. early growth and maturity

Q: A form of ownership that involves multiple outlets under common ownership is referred to as a(n). a. corporate chain b. consumer cooperative c. contractual system d. independent retailer e. administered system

Q: The battle for market share is usually fought directly before the __________ stage, and some competitors drop out of the market. a. decline b. growth c. maturity d. harvest e. introduction phase

Q: Your neighborhood dry cleaner or florist is likely to be categorized as an independent retailer. This means it is owned by a(n) __________. a. individual b. conglomerate c. consortium d. corporation e. cooperative

Q: Which type of outlet is most likely in its accelerated development stage of the retail life cycle? a. single-price stores b. online retailers c. supermarkets d. business-district retailers e. convenience stores

Q: Which form of retail outlet would most likely offer customer convenience, quality personal service, and lifestyle compatibility? a. corporate chain b. independent retailer c. administered system d. contractual system e. sole incorporation

Q: Accelerated development in the retail life cycle is similar to which stage in the product life cycle? a. introduction b. maturity c. decline d. growth e. harvest

Q: Most of the 1.1 million retail establishments in the United States including hardware stores, convenience stores, clothing stores, and computer and software stores are owned by __________.a. corporate chainsb. contractual systemsc. independent retailersd. conglomeratee. multinationals

Q: The key goal for retailers in the accelerated development phase of the retail life cycle is to a. recover start-up costs. b. establish a dominant position in the fight for market share. c. delay entering the decline stage of the retail life cycle. d. find ways of discouraging their customers from moving to low-margin, mass-volume outlets. e. establish a retail concept that is a sharp departure from existing competition.

Q: Independent retailers account for most of the __________ retail establishments in the United States.a. 50,000b. 90,000c. 500,000d. 900,000e. 1.1 million

Q: During which stage of the retail life cycle do companies establish multiple outlets? a. decline b. maturity c. accelerated development d. introduction e. early growth

Q: One of the most common forms of retail ownership is the __________ owned by a person. a. corporate chain b. consumer cooperative c. contractual system d. independent retailer e. administered system

Q: Both market share and profit achieve their greatest growth rates during which stage of the retail life cycle? a. decline b. maturity c. introduction d. early growth e. accelerated development

Q: There are three general forms of retail ownership: independent retailer, corporate chain, and __________. a. dual ownership b. industry consortium c. retailing cooperative d. contractual system e. multi-national cartel

Q: Which type of outlet is most likely in its early growth stage of the retail life cycle? a. single-price stores b. online retailers c. supermarkets d. warehouse clubs e. business-district retailers

Q: There are three general forms of retail ownership: contractual system, independent retailer, and __________. a. dual ownership b. industry consortium c. retailing cooperative d. multi-national cartel e. corporate chain

Q: According to the retail life cycle, in which stage would market share rise gradually, although profits may be low because of start-up costs? a. decline b. maturity c. introduction d. accelerated development e. early growth

Q: There are three general forms of retail ownership: contractual system, corporate chain, and __________. a. dual ownership b. industry consortium c. retailing cooperative d. independent retailer e. multi-national cartel

Q: According to the retail life cycle, __________ is the stage of emergence of a retail outlet, with a sharp departure from existing competition. a. decline b. maturity c. introduction d. early growth e. accelerated development

Q: Target has taken the "green" concept to its advertising agency and requires a. the use of the Green Certified Retail Operations Guide. b. that all vehicles produce no emissions. c. a "green" logo appears at the end of the ad. d. that waste from shooting new commercials be recycled or composted. e. an environmental impact report each month.

Q: The four stages of the retail life cycle are a. introduction, growth, maturity, and decline. b. awareness, inquiry, alternative evaluation, and purchase. c. early growth, accelerated development, maturity, and decline. d. innovation, standardization, adaptation, and obsolescence. e. innovation, adaptation, imitation, and obsolescence.

Q: By requiring its toy suppliers to trim one square-inch of packaging from its lines, Walmart reduced packaging by __________ tons. a. 3,000 b. 3,500 c. 4,000 d. 4,500 e. 5,000

Q: The retail life cycle refers to a. the distinct stages a product goes through before it becomes obsolete. b. the process of growth and decline that retail outlets, like products, experience. c. the cycle of a customer's buying behavior from awareness of a product to its ultimate purchase. d. the relationship between the tangible aspects of a product and the types of services that need to accompany it. e. the traditional management changes that take place as a retail outlet grows.

Q: When Home Depot switched its in-store light fixture displays to compact fluorescent light bulbs it saved __________ per year. a. $16 million b. $24 million c. $29 million d. $31 million e. $42 million

Q: Retail outlets, like products, experience the process of growth and decline, which is referred to as the a. retail life cycle. b. wheel of retailing. c. product life cycle. d. retail continuum. e. retail life matrix.

Q: Retailers have come to realize that consumers want products that are consistent with their personal values and a. foreign regulations. b. meet third party certifications. c. they want to purchase them from retailers with similar values. d. cost less. e. social image.

Q: Outlets such as the Checkers Drive-In Restaurant, typically enter the wheel of retailing as a. low status, low-margin stores. b. high status, high-margin stores. c. moderate status, low-margin stores. d. high price, high-margin stores. e. mixed price, mixed status stores.

Q: A method of classification that describes how many different types of products a store carries and in what assortment is referred to as a __________. a. product mix b. service level c. product assortment d. store composition e. merchandise line

Q: Figure 1. According to Figure 1. above, where would you find the highest prices, margins, and status? a. "A" b. "B" c. "C" d. "D" e. "A" and "D"

Q: Level of service is used to describe the degree of service provided to the customer. Three levels of service are provided by self-, _________-, and full-service retailers. a. limited b. commitment c. involvement d. obligation e. pledge

Q: Figure 1. Figure 1. above shows the wheel of retailing, which indicates that retail outlets typically go through changes with the passage of time. What stage in the wheel of retailing does "B" represent? a. low prices, low margins, low status. b. higher prices, higher margins, and higher status. c. low prices, high margins, and high status. d. mixed prices, mixed margins, and mixed status. e. moderate prices, high margins, and high status.

Q: The degree of service provided to the customer from self-, limited-, and full-service retailers is referred to as __________. a. involvement b. level of service c. service commitment d. customer obligation e. degree of commitment

Q: Figure 1.According to Figure 1. above, "A" represents the stage in the wheel of retailing when a retail outlet starts witha. low prices, high margins, and high status.b. mixed prices, mixed margins, and mixed status.c. low prices, low margins, and low status.d. moderate prices, high margins, and high status.e. high prices, low margins, and mixed status.

Q: Three __________ are provided by self-, limited-, and full-service retailers. a. levels of distribution b. levels of involvement c. levels of service d. service commitments e. merchandise lines

Q: Many fast food retailers, including McDonald's and Burger King, have followed a predictable pattern of how new forms of retail outlets enter the marketplace. McDonald's has evolved from a relatively simple restaurant with low margins, low prices, limited product offerings, and low institutional status to a worldwide chain with higher margins, high status, and a diverse menu of products. This evolution of McDonald's restaurants is consistent with the a. slow to fast food restaurant evolutionary cycle. b. revolution of retailing. c. retail life cycle. d. fast food retail sequence. e. wheel of retailing.

Q: A method of classification that describes the degree of service provided to the customer is referred to as _________. a. product involvement b. product assortment c. merchandise line d. level of service e. form of ownership

Q: The wheel of retailing refers to a. the life cycle of most consumer products sold at retailers. b. the diffusion of types of retailers for a new product. c. the progression of retail locations an outlet goes through d. the description of how new retail outlets enter the market. e. the description of retail management philosophies.

Q: The _________ distinguishes retail outlets based on whether independent retailers, corporate chains, or contractual systems own the outlet. a. product involvement b. service level c. merchandise line d. product assortment e. form of ownership

Q: The description of how new retail outlets enter the market is referred to as the __________. a. retail life cycle b. product life cycle c. wheel of retailing d. retail life matrix e. retail continuum

Q: Which of the following is a commonly used method of classifying retail outlets? a. service versus product b. form of ownership c. proportion of national versus private label brands carried d. revenues generated e. profitability

Q: According to the Same-Store Sales Growth Marketing Dashboard above, which retailer has the greatest same-store sales growth? a. Target b. Neiman Marcus c. Apple d. Best Buy e. Tiffany

Q: There are three key methods of classifying retail operations a. method of operation, revenues generated, and merchandise line. b. form of ownership, method of operation, and merchandise line. c. form of ownership, level of service, and merchandise line. d. level of service, merchandise line, and revenues generated. e. merchandise line, form of ownership, and revenues generated.

Q: Neiman Marcus has approximately what amount of sales per square foot according to the Sales per Square Foot Marketing Dashboard above? a. $500 b. $800 c. $1,000 d. $2,000 e. $4,000

Q: Outside the United States, large retailers include __________ in Japan, Carrefour in France, Metro Group in Germany, and Tesco in Britain. a. Aeon b. Toshei c. Seebi d. Goshen e. Toshi

Q: Apple has approximately what amount of sales per square foot according to the Sales per Square Foot Marketing Dashboard above? a. $500 b. $800 c. $1,000 d. $3,100 e. $5,600

Q: Walmart's $421 billion in sales in 2010 surpassed the gross domestic product of all but __________ countries for that same year. a. 5 b. 12 c. 18 d. 29 e. 50

Q: Best Buy has approximately what amount of sales per square foot according to the Sales per Square Foot Marketing Dashboard above? a. $500 b. $800 c. $1,000 d. $2,000 e. $4,000

Q: Four of the 30 largest businesses in the United States are retailersWalmart, Costco, Home Depot, and _________. a. Sears b. Target c. Best Buy d. JC Penney e. Bloomingdale

Q: Sales per Square Foot and Same-Store Sales Growth Marketing Dashboards Which of the following stores shown in the Sales per Square Foot Marketing Dashboard above has the highest sales per square foot? a. Target b. Neiman Marcus c. Best Buy d. Tiffany e. Apple

Q: Figure 1. As shown in Figure 1. above, the smallest dollar amount of retail sales in the United States is generated by __________. a. automotive dealers b. food and beverage stores c. sporting goods, books, and music stores d. electronic stores e. furniture and home furnishing stores

Q: The calculation for same-store sales growth is a. total sales selling area in square feet. b. (store sales in year 3 store sales in year 1). c. [store sales in year 1 (store sales in year 2 " store sales in year 1)]. d. [(store sales in year 2 " store sales in year 1) store sales in year 1]. e. store 1 square feet store 2 square feet.

Q: Figure 1. As shown in Figure 1. above, the greatest dollar amount of retail sales in the United States is generated by __________. a. food and beverage stores b. sporting goods, books, and music stores c. electronic stores d. automotive dealers e. furniture and home furnishing stores

Q: An indicator used to compare the increase in sales of stores that have been open for the same period of time is called a. market share of each store. b. same-store sales growth. c. sales per square foot of each store. d. gross sales per store. e. net profit per store.

Q: Retailing's economic value is represented by the annual sales of retailers and __________. a. the price asked for any one item b. the cost of goods sold c. the people employed in retailing d. the net return on capital e. the elimination of global boundaries

Q: Dual distribution refers to a. a level of distribution density whereby a firm selects a few retailers in a specific geographical area to carry its products. b. an arrangement whereby a firm reaches different buyers by employing two or more different types of channels for the same basic product. c. the blending of different communication and delivery channels that are mutually reinforcing in attracting, retaining, and building relationships with consumers who shop and buy in traditional intermediaries and online. d. professionally managed and centrally coordinated marketing channels designed to achieve channel economies and maximum marketing impact. e. a practice whereby one firm's marketing channel is used to sell another firm's products.

Q: An arrangement whereby a firm reaches different buyers by employing two or more different types of channels for the same basic product is referred to as __________. a. a strategic channel alliance b. multiple level selling c. parallel distribution d. dual distribution e. multilayered distribution

Q: Multichannel marketing a. creates greater elasticity of demand for its products. b. can leverage the value-adding capabilities of different channels. c. creates greater inelasticity of demand for its product. d. allows firms to legally circumvent paying taxes on revenue generated by online sales. e. allow customers to avoid shipping and handling charges.

Q: Multichannel marketing seeks to integrate a firm's electronic and delivery channels. Catalogs can serve as shopping tools for online purchasing, and websites can help consumers do their homework before visiting a store. By blending different communication and delivery channels, a. multichannel marketing can leverage the value-adding capabilities of different channels. b. multichannel marketing creates greater elasticity of demand for a firm's products. c. multichannel marketing creates greater inelasticity of demand for a firm's products. d. multichannel marketing allows a firm to legally circumvent paying taxes on revenue generated by online sales. e. multichannel marketing allows customers to avoid shipping and handling charges.

Q: Multichannel marketing is the blending of different __________ that are mutually reinforcing in attracting, retaining, and building relationships with consumers who shop and buy in traditional intermediaries and online. a. pricing channels b. distribution channels c. communication and delivery channels d. direct and indirect channels e. communication channels

Q: The blending of different communication and delivery channels that are mutually reinforcing in attracting, retaining, and building relationships with consumers who shop and buy in traditional intermediaries and online, is referred to as __________. a. direct marketing b. indirect marketing c. intensive marketing d. multichannel marketing e. electronic marketing

Q: When you order a sweater from an L. L. Bean mail-order catalog, what type of marketing channel are you and the company using? a. cash and carry marketing channel b. intensive distribution channel c. selective distribution channel d. indirect marketing channel e. direct marketing channel

Q: Mail order selling, catalog sales, and telemarketing are all examples of a. direct marketing channels. b. indirect marketing channels. c. multimarketing channels. d. virtual marketing channels. e. personal selling.

Q: Direct marketing channels refer to a. the distribution of goods and services directly from the manufacturer's production site to end-users. b. the traditional chain of distribution from manufacturer to retailer to consumer. c. the use of agents who represent a single producer and are responsible for the entire marketing function of that producer. d. a method of distribution that allows consumers to buy products by interacting with various advertising media without a face-to-face meeting with a salesperson. e. a method of distribution that allows consumers to buy products through direct personal interaction with the manufacturer's representatives in order to provide more personalized service.

Q: Allowing consumers to buy products by interacting with various advertising media without a face-to-face meeting with a salesperson is the definition of a(n) __________. a. indirect marketing channel b. direct marketing channel c. multimarketing channel d. channel bypass marketing e. personal selling

Q: MachineTools.com sells grinders, boring mills, and engine lathes. Its website lists products from over 700 machinery manufacturers, 2,500 distributors of new equipment, and 650 dealers of used inventory for sale. MachineTools.com relies on a well-established channel of manufacturers, distributors, and machinery dealers to provide the merchandise that is sold through this a. Internet government channel. b. virtual marketing channel. c. World Wide Web channel. d. extranet channel. e. electronic marketing channel.

Q: Which of the following products or services must be provided by traditional and NOT by electronic marketing channels? a. car rental reservations b. software c. healthcare d. music e. education

Q: Employing the Internet to make products and services available for consumption or use by consumers or industrial buyers is referred to as __________. a. Internet distribution channels b. virtual marketing channels c. World Wide Web channels d. electronic marketing channels e. extranet marketing channels

Q: Electronic marketing channels refer to a. the employment of the Internet to make products and services available for consumption or use by consumers or industrial buyers. b. a firm's computer driven inventory management through an entirely mechanized warehousing system. c. intranet systems linking all aspects of production within a single firm. d. manufacturers that specialize in the creation and production of microprocessors used in industrial markets. e. the name given to all Internet addresses that end in ".com" to indicate the website is a commercial entity that distributes goods and services.

Q: Figure 1. Figure 1. above depicts the four most common marketing channels for business products and services. Channel "D" would be an appropriate marketing channel for __________. a. supercomputers b. electrical products c. Boeing aircraft d. Caterpillar tractors e. industrial fasteners

Q: Figure 1. Figure 1. above depicts the four most common marketing channels for business products and services. Channel "C" would be an appropriate marketing channel for __________. a. IBM mainframe computers b. Caterpillar excavators c. electrical motors d. industrial fasteners e. Bombardier aircraft

Q: Figure 1. Figure 1. above, depicts the four most common marketing channels for business products and services. Channel "B" would be an appropriate marketing channel for __________. a. Cray supercomputers b. magnetic resonance imaging (MRI) machines c. John Deere excavators d. industrial fasteners e. electrical products

Q: List and briefly describe the four customer service factors that must be balanced in a logistics system.

Q: Figure 1. Figure 1. above depicts the four most common marketing channels for business products and services. Channel "A" would be an appropriate marketing channel for __________. a. Boeing aircraft b. Caterpillar lift trucks c. John Deer tractors d. fencing systems e. electrical products

Q: As the level of customer service increases, what happens to total logistics costs?

Q: Figure 1. Figure 1. above depicts the four most common marketing channels for business products and services. "Z" represents a. consumers. b. industrial users. c. dual distributors. d. agents or brokers. e. industrial distributors.