AIt is the merchandising component of the retail mix BIt is the set of business activities that adds value to the products and services sold to consumers for their personal or family use
Trang 1MULTIPLE CHOICE Choose the one alternative that best completes the statement or answers the question.
1)The largest sectors in terms of retail sales are:
A)General merchandise and Clothing
B)Food, Beverage, and Automotive
C)Furniture and Pharmacies
D)Automotive and Building supplies
E)Pharmacies and Building supplies
1)
2)Retail managers must make complex decisions including all of the following except:
A)Mission statement
B)Target markets
C)Training and motivating sales associates
D)Merchandise and services offerings
E)Retail locations
2)
3)What is retailing?
A)It is the merchandising component of the retail mix
B)It is the set of business activities that adds value to the products and services sold to consumers for their personal or family use
C)It is the process of offering products in smaller quantities for consumer consumption patterns
D)It is the strategy retailers and vendors use to get products into the stores
E)It is the ability to offer enough variety in a store to encourage one-stop shopping
3)
4)Which of the following businesses would be considered a retailer?
A)Your local hair salon
B)Tim Hortons
C)Canadian Tire
D)Air Canada
E)Your local hair salon, Air Canada, Tim Hortons, and Canadian Tire
4)
5)Which of the following is most likely to be considered a retailer?
A)The Red Cross
B)A university
C)A radio talk show
D)The Better Business Bureau
E)All of the choices
5)
Trang 26)A retailer's role in the distribution channel is to:
A)sell to wholesalers
B)act as the liaison between manufacturers and wholesalers
C)negotiate with consumers through a series of focus groups
D)buy merchandise exclusively from the manufacturers
E)satisfy the needs of the consumers
6)
7) is when a firm performs more than one set of activities in the channel
A)Distribution channel
B)Horizontal integration
C)Channel diversification
D)Vertical integration
E)Vertical development
7)
8)Prior Snowboards located in Whistler, B.C manufactures many of the snowboards it
sells in its retail outlet at its own factory in Canada Prior Snowboards is practicing:
A)product-related marketing
B)globalization
C)wholesaling
D)demographic marketing
E)vertical integration
8)
9)If a chain of florist shops opened a plant nursery to provide gift plants and cut flowers to all of its outlets within a 300-mile radius, the chain would be practicing:
A)service marketing
B)channel expansion
C)vertical retailing
D)vertical integration
E)horizontal expansion
9)
10)What is the primary advantage for retailers to be vertically integrated?
A)Retailers can develop unique merchandise sold only in their stores; retailers can expand their services easily to the Internet because they can direct orders to the manufacturer; retailers have realized that to stay competitive, they must become vertically integrated; and customers preferring retailers that are vertically integrated are all advantages
B)Customers prefer retailers who are vertically integrated
C)Retailers can expand their services easily to the Internet because they can direct orders to the manufacturer
D)Retailers have realized that to stay competitive, they must become vertically integrated
E)Retailers can develop unique merchandise sold only in their stores
10)
Trang 311)A retailer that is vertically integrated:
A)has an excellent vertical relationship between corporate headquarters and stores
B)performs more than one function in the chain from manufacturing to sales to end user
C)performs only the function to end user
D)does not have frequent communication between buyers and managers
E)concentrates on selling to businesses only
11)
12)Which of the following statements about retailers holding inventory is false?
A)Holding inventory reduces consumer's cost of storing products
B)By holding inventory, retailers can decrease the visual merchandising expenditure
C)Holding inventory in a store helps serve the customer's needs
D)By having inventory held in the store, consumers can hold less merchandise at home
E)Retailers keep inventory so that products are available when consumers want them
12)
13)Grocers purchase bananas from several different tropical countries When bananas arrive
in the distribution centres across Canada, containers are reduced to amounts that are appropriate for store delivery Once delivered to the stores, associates open the cartons and arrange the bananas for the consumer to select Grocers are performing what function?
A)Holding inventory
B)Breaking bulk
C)Vertical integration
D)Providing services
E)Distribution
13)
14)Providing assortments is an advantageous business activity because it:
A)enables the company to create a more informational and entertaining environment which would promote more sales
B)enables the customer to choose from a wide selection of brands, designs, sizes, and prices all in one store
C)enables the company to reinvest savings
D)enables the customer to stock up on the assortments because of their availability
E)enables the customer to save money by being able to shop in one store
14)
15)One of the functions retailers undertake to increase the customer's perception of value is providing services Which of the following would be an example of that activity?
A)Payment by debit cards
B)Clean washrooms
C)Well-lit parking lots
D)Trained salespeople to answer questions
E)Clean washrooms, payment by debit cards, trained salespeople, and well-lit parking lots are all appropriate examples
15)
Trang 416)One of the functions retailers undertake to increase the customer's perception of value is providing services Which of the following would be an example of that activity?
A)Increasing employee pilferage
B)Selling on the Internet as an additional channel
C)Ignoring the competition
D)Performing a situation analysis
E)None of the available answers are correct
16)
17)A credit union holds and maintains detailed records of the banking activities of its
members Each quarter, the credit union provides its members a printout of banking activities, information about low rate loans and pre-owned automobiles By contacting its members on a regular basis, the credit union is engaging in the business function of:
A)breaking bulk
B)providing assortments
C)providing services
D)holding inventory
E)financing
17)
18)Retailing is the nation's largest industry in terms of:
A)promotions
B)competition
C)variety
D)employment
E)community involvement
18)
19)Provinces with the highest retail sales in order are:
A)Ontario, Alberta, Quebec, and British Columbia
B)Ontario, Quebec, Alberta, and British Columbia
C)Quebec, British Columbia, Prairies, Ontario, and Atlantic Canada
D)Alberta, Atlantic Canada, Ontario, British Columbia, and Quebec
E)Ontario, British Columbia, Quebec, and Alberta
19)
20)72 percent of all retail businesses employ fewer than persons
20)
21)The competition between the same types of retailers is called:
A)vertical integration
B)scrambled merchandising
C)intratype competition
D)indirect competition
E)intertype competition
21)
Trang 522)Which of the following would be an example of intratype competitors?
A)IGA and Shoppers Drug Mart
B)Sears and La Senza
C)Future Shop and eBay
D)Walmart and Target
E)Loblaws and Amazon.ca
22)
23)Best Buy (electronics) and Future Shop (electronics) are what type of competitors?
A)intertype
B)intratype
C)vertical
D)horizontal
E)indirect
23)
24)Which of the following would be an intratype competitor for an IGA supermarket?
A)Subway
B)Walmart
C)Loblaws
D)Old Navy
E)Shoppers Drug Mart
24)
25)What is Variety?
A)Variety is the number of different facets of the business plan
B)Variety is another term for scrambled merchandising
C)Variety is the number of different SKU's within a merchandise category
D)Variety is the number of different merchandise categories within a store
E)Variety is the number of different items in a category
25)
26)When McDonald's opened its first restaurant, a hungry patron could order a hamburger, French fries and a shake In those early years, McDonald's did not offer much:
A)variety
B)product depth
C)assortment
D)quantity
E)value
26)
27)Chapters stores sell Godiva chocolates By selling such products, Chapters is:
A)practicing intratype competition
B)offering deep product assortments
C)offering a good merchandise mix
D)practicing scrambled merchandising
E)offering what the market demands
27)
Trang 628)The offering of merchandise not typically associated with the store type is called:
A)intratype competition
B)channel conflict
C)scrambled merchandising
D)vertical differentiation
E)product diversification
28)
29)Delia was delighted to see that the local Shoppers Drug Mart carried milk, bread, and
snacking crackers Her delight indicates she has never seen:
A)a retail mix
B)a deep product assortment
C)this type of intratype competition
D)an acceptable merchandising mix
E)scrambled merchandising
29)
30)Scrambled merchandising increases:
A)intertype competition
B)intratype competition
C)concentric diversification
D)vertical integration
E)horizontal integration
30)
31)Which of the following would be an example of intertype competition?
A)A convenience store and a fast food restaurant
B)A specialty store and a department store
C)A department store and a pharmacy
D)A supermarket and a fresh flower stand
E)All answers provided are correct
31)
32)Walmart, Loblaws, and Future Shop are in what kind of competition?
A)indirect
B)channel
C)intratype
D)intertype
E)horizontal
32)
33)Increasing intertype competition has made it harder for retailers to identify their:
A)competition
B)retail mix
C)merchandise mix
D)target market
E)none of the answers provided are correct
33)
Trang 734)The intensity of competition is greatest among retailers when:
A)they are located far from each other and target the same customer
B)they are located near each other and target the same customer
C)they are located far from each other and offer similar retail offerings
D)price dominates the retail mix
E)they are located near each other and offer similar retail offerings
34)
35)As part of a retailing strategy, a retailer looks to changes in demographics and responds
to these changes with their retail mix The following are examples of demographic trends except:
A)the retirement of the Baby Boomers
B)the increased emphasis on customer service
C)the growth of the elderly population
D)the rising number of two-income families
E)the growth of minority segments
35)
36)Once a retailer understands its environment, it needs to develop and implement a(n):
A)advertising plan
B)customer base
C)retail strategy
D)competitive strategy
E)functional strategy
36)
37)Lydia owns the Shake Shack, a small ice cream shop on a busy beach boardwalk that
specializes in a variety of milkshakes, malts and cones She has identified her customer
as a person walking on the boardwalkmostly vacationers who want something cool and quick with no frills She located herself close to parking for easy access, unlike some of her competitors Lydia seems to have developed a strong:
A)business concept
B)retail strategy
C)business plan
D)location strategy
E)selling strategy
37)
38)When developing the for his new salon, George decided to obtain a long-term competitive advantage over other salons by offering longer hours, better prices, a well trained staff and half-price perm day every Thursday to attract customers
A)focal point orientation
B)business cycle
C)retail strategy
D)marketing concept
E)selling concept
38)
Trang 839)As the owner of a store specializing in men's suits, Isabella can use a retail strategy
statement to identify all of the following except:
A)what services the shop will offer its customers
B)what types of suits the store will stock
C)the shop's target market
D)how the store will build a competitive advantage
E)the advertising campaign developed to sell last season's merchandise
39)
40)How are retailers using point-of-sale (POS) terminals and Universal Product Codes
(UPCs) affixed to merchandise? As a way to:
A)target the distribution plan
B)check its location strategy
C)gain a strategic advantage
D)create an advertising plan
E)set its retailing objectives
40)
41)A business philosophy and set of strategies, programs, and systems that focus on
identifying and building loyalty with a firm's most-valued customers is called:
A)customer relationship management
B)strategizing
C)customer decision area
D)intratype competition
E)customer loyalty
41)
42)Which of the following statements about location strategy is true?
A)Location is the second most important characteristic that consumers examine when selecting a store
B)Location offers an opportunity to gain a long-term advantage over competitors
C)Location can never be used to gain any kind of long-term advantage over competitors due to retailing's low entry barriers
D)Consumers do not use convenience as a basis for selecting where to shop
E)The only two characteristics more important than location in the selection process
of where to shop are price and sales promotions
42)
43)The key strategic elements of the retail strategy are:
A)organizational structures
B)financial strategies
C)market strategies
D)location strategies
E)all of these
43)
Trang 944)To implement a retail strategy, a retailer must develop a that satisfies the
needs of its target market better than its competitors
A)sales orientation
B)production orientation
C)situation analysis
D)retail mix
E)horizontal integration
44)
45)Once a well-articulated retail strategy has been developed, the next step is to:
A)forecast future environmental trends
B)evaluate the results of the strategy
C)override the control mechanism
D)implement the strategy
E)confirm that environmental conditions have not changed
45)
46)To implement a retail strategy, management must:
A)develop a retail mix that satisfies the needs of its target market better than its competitors
B)locate the ideal location
C)set pricing strategies and determine promotions
D)determine its target market and set retail objectives
E)develop budgets and acquire merchandise
46)
47)The combination of factors retailers use to satisfy customer needs and influence their
purchase decisions is called the firm's:
A)target market
B)marketing concept
C)retailing concept
D)retail mix
E)none of these
47)
48)Which of the following is part of a retailer's retail mix?
A)Trained salespeople
B)Advertising
C)Services offered
D)Displays
E)All of these
48)
49)Which of the following is not an element in the retail mix?
A)Competitive response
B)Merchandise assortments
C)Advertising and promotion
D)Customer service
E)Location
49)
Trang 1050)Which of the following parts of the retail mix can be utilized by a small hardware store?
A)Store location next door to a hospital
B)Bright lighting in the store, which makes it easier to read the messages
C)A new ad campaign that uses both radio and newspaper media
D)Attractive point-of-purchase displays at the ends of the store's aisles
E)All of these
50)
51)Which of the following is not a part of the retail mix for a furniture store?
A)Competitive response
B)Furniture assortments
C)Television commercials
D)The location of the store
E)Store credit card
51)
52)Retailers face ethical issues on a regular basis The following are all TRUE except:
A)Ethics are the principles governing the behaviour of individuals and companies to establish appropriate behaviour and indicate what is right and wrong
B)Today, advertising by doctors and lawyers in Canada is considered legal
C)Offering bribes to overcome bureaucratic roadblocks is globally recognized as an unaccepted practice
D)Some years ago, doctors and lawyers who advertised their services in Canada were considered unethical
E)Offering bribes to overcome bureaucratic roadblocks is illegal in Canada
52)
53)Retailing offers today's graduates opportunities for careers in management as well as
entrepreneurial opportunities The following are all Canadian entrepreneurs and their Canadian originated retail outlets except:
A)John Holt and G.R Renfrew - Holt Renfrew
B)Tim Horton - Tim Hortons
C)John Forzani - Forzani Group - Sport Chek
D)Samuel Cost and Sharon Conner - Costco
E)Eddie Black - Black's Cameras
53)
ESSAY Write your answer in the space provided or on a separate sheet of paper.
54)Best Buy purchases many of the CDs, PlayStation 2 games, DVDs and DVD players by the truckload, then sells them in smaller quantities to its stores where consumers are allowed to buy them one at a time What business function is Best Buy performing?
55)When is the intensity of competition between retail stores the greatest?
56)What type of merchandising increases intertype competition?