Multiple Choice:
1. To be successful in retailing today, given the slower population growth rate, retailers will grow by:
a. taking away sales from competitors.
b. reducing the number of stores they have.
c. having their industry legislated as a monopoly.
d. accusing their competitors of unfair competition.
e. reducing customer services.
2. A market offers rows of exotic produce, fresh prime meats, seafood flown in fresh, a bakery filled with artisan breads and over 220 cheeses. This market is competing for customers on which major front?
a. The price for the value offered
b. Service level
c. Product selection
d. Location or access
e. Employee compensation
3.. If prices become too high, merchandise selection too limited, or services too poor, residents of these communities will travel to larger communities to shop. This is known as:
a. Outsourcing.
b. Store positioning.
c. Outshopping.
d. Internet shopping.
e. Transport shopping.
4. Dawn needed to drop off a few garments at the dry cleaners. On her way to work, she stopped at the local SuperCenter to pick up pastries for her staff at work. While at the SuperCenter, Dawn noticed that they now offer dry cleaning services. So, instead of going to the dry cleaner's on the corner, Dawn dropped off her garments at the SuperCenter. By offering dry cleaning, SuperCenter successfully engaged in what form of competition?
a. Perfect monopoly
b. Mixed-share
c. Divertive
d. Intratype
e. Interactive
5. Which stage of the retail life cycle is characterized by the entrance of many new competitors and tremendous growth in sales and profits?
a. Vulnerability
b. Maturity
c. Growth
d. Entry
e. Introduction
6. Concerning the "supply chain," which of the following statements is true?
a. Supply chains are so closely associated with high prices that many retailers are dropping out of supply chains and performing the functions themselves.
b. Most supply chains will disappear within the next decade, as all merchandise will soon be purchased directly from manufacturers.
c. Supply chains do not aid the retailer in providing possession, form, or place utility, for the final consumer.
d. Profits sufficient for survival and growth will be difficult for a retailer to achieve without being part of an efficient, effective supply chain.
e. Supply chains seldom change over time.
7. The major difference between primary marketing institutions and facilitating marketing institutions is that facilitating members:
a. do not take title to the goods.
b. are paid only a percentage of profits made.
c. take title to the goods.
d. perform all eight functions in all channels situations.
e. are always paid by the manufacturer.
8. A(n) ______occurs when the manufacturers sell their goods directly to the final consumer.
a. supply chain width
b. selective distribution channel
c. direct supply chain
d. exclusive distribution channel
e. indirect supply chain
9. Selective distribution:
a. means that all possible retailers are used to reach the target market.
b. means only one retailer is used in the trading area.
c. means that a smaller number of retailers are used to reach the target market.
d. is associated with the distribution of convenience goods.
e. is identified with specialty goods.
10. TrueValue, Ace, and Handy Hardware are all examples of a(n):
a. retailer-owned cooperative.
b. contractual vertical marketing system.
c. wholesaler-sponsored voluntary group.
d. independent retailer.
e. franchisee.
11. The _____ Act prevents the marketing and selling of harmful toys and dangerous products.
a. Sherman
b. Federal Trade Commission
c. Mail Fraud
d. Child Safety
e. Fair Packaging and Labeling
12. When all airlines agree to set fares at the same price, they are:
a. engaging in vertical price fixing.
b. violating fair trade laws.
c. engaging in horizontal price fixing.
d. violating the Federal Trade Commission Act.
e. engaging in price discrimination
13. A supplier sells two identical shipments of clothing to two different retailers at different prices. This is a clear violation of the _____ Act.
a. Sherman Antitrust
b. Robinson-Patman
c. Federal Trade Commission
d. Lanham
e. Truth in Lending
14. Deceptive pricing occurs when retailers:
a. state that their lower prices were made in good faith in order to meet an equally low price of a competitor.
b. ban "fair trade" items from their store.
c. advertise merchandise at an artificially low price and then try to add hidden, or extra, charges.
d. tell lies about a competitor's price in an attempt to make a sale.
e. sell merchandise above the manufacturer's cap.
15. This new law was the aftermath of a public outcry over imports of tainted toothpaste and pet food, as well as the infamous importation of lead-laden toys from Asia, especially China.
a. The Consumer Protection from Unfair Trading Regulations Act
b. The ADA Amendments Act
c. The Emergency Economic Stabilization Act
d. The Consumer Product Safety Improvements Act
e. The Economic Cooperation Framework Agreement Act
16. The retailer's first step in developing a cost-effective way for a retailer to reach its customer with either a traditional store or virtual store is:
a. establish its budget.
b. identify its strengths and weaknesses.
c. identify its target market.
d. develop a list of constraining factors.
e. hire a real-estate consultant.
17. Which of the following is NOT true regarding a neighborhood business district (NBD)?
a. It is located at a major artery of a residential area.
b. It is developed around a major department store.
c. Its major retailer is either a supermarket or a variety store.
d. It is developed to satisfy the convenience-oriented shopping needs of a neighborhood.
e. It generally contains several small stores.
18. _____ stores are stores in a shopping center that are most dominant and are expected to draw customers to the shopping center.
a. Gravitational
b. Power
c. Anchor
d. Mega
e. Critical mass
19. GIS can be used by the retailer for all of the following EXCEPT:
a. market selection.
b. site analysis.
c. analyzing the sales of competitors.
d. advertising management.
e. evaluation of store managers.
20. A retailer uses a _____ to graphically illustrate the extent to which potential demand for the retailer's goods and services is concentrated in certain census tracts, ZIP codes, or parts of the community.
a. boundary density typography
b. demand density map
c. census tract concentration statistics
d. demand analysis graphing
e. neighborhood size visuals