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100 Cards in this Set
- Front
- Back
What is the final stop in the distribution channel in which organizations sell goods and services to consumers for their personal use? |
retailing |
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What is true about retailers and retailing activities? |
Retailers are members of channels of distribution |
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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 |
wheel of retailing |
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What best explains why new retailers often squeeze out older retailers? |
the wheel-of-retailing hypothesis |
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The ________ is a way to categorize retail operations by the conditions they face at different points in their existence |
retail life cycle |
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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 |
introduction |
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What is most likely to occur during the maturity stage of the retail life cycle? |
Prices are cut |
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When two or more separately owned retail firms combine, a(n) ________ has occurred |
merger |
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A retail firm downsizes when it _______ |
closes unprofitable outlets |
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In the ________ stage of the retail life cycle, retail businesses become obsolete as newer ways of doing business emerge |
decline |
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What is NOT a function of a point-of-sale (POS) system? |
evaluating bids from potential suppliers |
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_______ would enable a customer in one retail site to ask questions of a product "expert" in another retail site |
an in store kiosk |
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Shoplifting, sweethearting, and retail borrowing are all problems that contribute to _______ |
shrinkage |
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For the retailer, the practice of ________ results in lower total sales and, in many cases, damaged merchandise |
retail borrowing |
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A ________ is a set of related products a retailer offers |
product line |
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________ combine an economy supermarket with other lower-priced non-food merchandise |
supercenters |
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_______ 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 |
self service |
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Which types of retailers place the most emphasis on salespeople assisting customers throughout the purchase process? |
full service retailers |
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_______ is the number of different product lines available at a particular retail store |
merchandise breadth |
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What is LEAST likely to happen at a full-service retailer? |
Customers handle their own checkout process |
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______, such as Target and Kohl's, provide merchandise return and offer credit, but customers select merchandise without much assistance |
Limited-service retailers |
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Which statement about the services provided by retailers is true? |
Convenience stores are unlikely to be full-service retailers |
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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 _______ |
narrow; broad |
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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 ________ |
shallow; deep |
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Which of the following is true about convenience stores? |
they create time utility for their customers |
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_______ are food stores that carry a wide selection of edible and nonedible products |
supermarkets |
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Which type of self-service store is a food store with a limited selection of items and few brands per item? |
box store |
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_______ carry a narrow assortment of product lines with deep assortments within those lines |
specialty stores |
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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) _______ |
leased department |
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Which type of self-service store offers a limited line of inexpensive items, often at a single price point? |
variety store |
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__________ is a discount retailer owned by a manufacturer that provides the manufacturer a store to sell off defective merchandise |
a factory outlet store |
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Which of the following is true about general merchandise discount stores? |
They appeal to consumers who want easy access to a lot of merchandise |
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Which type of retailers obtain surplus merchandise from manufacturers and offer brand-name, fashion-oriented goods at low prices? |
off price retailers |
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Customers of a ________ buy most of the store's products in larger-than-normal packages and quantities |
warehouse club |
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What is NOT true about warehouse clubs? |
They have not followed the pattern set forth by the wheel-of-retailing hypothesis |
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Which of the following stores is most likely to have a narrow assortment of merchandise? |
a factory outlet store |
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Which of the following statements about department stores is true? |
Department stores were a dominant type of retailer in the first half of the twentieth century |
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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? |
department |
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Which types of retailers have been more successful in Europe than in the United States? |
hypermarkets |
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Which type of store combines the characteristics of a warehouse store and a supermarket? |
hypermarket |
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Which types of retail stores would likely offer the broadest assortment of merchandise and services? |
hypermarkets |
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__________ is any method a firm uses to complete an exchange that does not require a customer to visit a store |
nonstore retailing |
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Avon is successful at giving customers alternatives to traditional store outlets. Avon uses ________, which does not require a customer to visit a store |
nonstore retailing |
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What prohibits door-to-door selling unless prior permission has been granted by the household? |
a Green River Ordinance |
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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 |
party plan system |
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Another name for multilevel marketing is ________ |
network marketing |
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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 |
multilevel marketing |
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A master distributor is most likely to work in _____ |
network marketing |
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What is an illegal sales technique? |
a pyramid scheme |
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In general, vending machines are best suited for selling ______ |
food and beverages |
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_____ e-commerce is the online exchange between companies and individual consumers |
B2C |
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What is NOT a benefit provided by e-commerce? |
It provides consumers the satisfaction of instant gratification |
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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 |
entertainment |
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What is the term for how the marketplace perceives a retailer relative to the competition? |
store image |
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Which of the following is NOT an element involved in the creation of store atmospherics? |
knowledgeable personnel |
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Which of the following factors is most likely to be used to create store atmospherics? |
store layout |
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Which kind of retail store would be most likely to use a grid layout? |
a supermarket |
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Which of the following statements about store layout is NOT true? |
A grid layout is more conducive to browsing than a free-flow layout |
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In general, a cluttered and crowded arrangement of merchandise conveys to customers a sense that the store focuses on ________.
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low priced merchandise |
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A retail site's storefront and marquee are both examples of ______ |
visual merchandising |
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Which of the following statements about the use of color in retail stores is true? |
Orange is used to stimulate hunger |
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Which of the following statements about retail store personnel is true? |
Shoppers tend to rate the quality of service they receive from sales personnel as low |
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Why has the practice of running frequent sales often backfired for retailers? |
Consumers become trained to buy only when the retailer is having a sale |
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A store using an everyday low-pricing (EDLP) strategy does what? |
sets prices between the list price the manufacturer suggests and the deeply discounted price stores that compete on price alone offer |
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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 _______ |
central business district |
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A ________ is a group of commercial establishments owned and managed as a single property |
shopping center |
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Which of the following statements about shopping centers is true? |
The smallest form of shopping center is called a strip center |
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What is the best example of an anchor store? |
a department store such as Macy's in a shopping center |
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_______ accurately describes a lifestyle center |
It combines the feel of a neighborhood park with the convenience of a strip mall |
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A ________ is a smaller shopping center with upscale stores, convenient locations, and expensive landscaping. It is typically located near affluent residential neighborhoods |
lifestyle center |
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What is true about freestanding retailers? |
They are located by themselves in a separate building |
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Store location planners look at a store's ________, the geographic zone that accounts for the majority of its sales and customers |
trade area |
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Store location planners conducting a site evaluation would consider all of the following EXCEPT |
the impact of color on customer behavior |
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Why do stores locate in saturated trade areas? |
to access high customer traffic |
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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 |
saturated |
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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 ... |
the wheel-of-retailing hypothesis |
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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? |
growth |
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What identifies how the wheel-of-retailing hypothesis and the retail life cycle are alike? |
They both indicate that most retailers shift strategies over time |
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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 |
demographics |
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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 |
POS system |
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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 ________.
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retail borrowing |
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Costco's surprise offerings of seconds, overstocks, and closeouts–occasionally including diamonds–is an example of how a retailer can differentiate itself through its ________ |
merchandise mix |
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A shoe department carries more than fifty-five different styles of white sandals. This is a description of the shoe department's ________ |
merchandise depth |
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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 _______ |
merchandise assortment |
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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 |
narrow and deep |
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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 _______ |
full service retailer |
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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 _______ |
convenience stores |
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GameStop sells video games and systems, offering a narrow product line with a deep assortment within that line. GameStop is a(n) ________ |
specialty store |
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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 _______ |
leased departments |
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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 |
nonstore retailing |
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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? |
direct selling |
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Using current sales as a predictor, which products would likely be most effectively sold using direct selling? |
cleaning products |
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Which of the following products would most likely be sold through automatic vending? |
beverages |
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The purchase of a set of flannel sheets from the Lands' End catalog Web site is an example of ________ e-commerce |
B2C |
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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 _______ |
store image |
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In which of the following would you be most likely to see a free-flow layout? |
a clothing specialty store like the Gap |
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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 ______ |
atmospherics |
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What is most likely true about shoppers who prefer to shop at lifestyle centers? |
They value an aesthetically pleasing shopping environment |
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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... |
a festival marketplace |
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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 |
understored |