Q&A Hero

Q: Sales per square foot is calculated by dividing A. profit margin by selling area in square feet. B. gross profit by selling area in square feet. C. total sales by selling area in square feet. D. return on investment by selling area in square feet. E. net sales by selling area in square feet.

Q: A common financial indicator of how effectively retail space is used to generate revenue can be calculated by determining __________. A. net revenue B. maintained markup C. market share D. sales per square foot E. return on investment

Q: The marketing metrics related to a retailer's finances include all of the following EXCEPT: A. the markdown percentage. B. the average length of a store visit. C. the return on sales. D. the gross margin. E. the sales per employee.

Q: The marketing metrics related to a retailer's products or merchandise include all of the following EXCEPT: A. the cost of carrying inventory. B. the inventory turnover. C. the average number of items per transaction. D. the number of returns. E. the average length of a store visit.

Q: The marketing metrics related to a retailer's customers include all of the following EXCEPT: A. the number of customers per day or per hour. B. the average length of a store visit. C. the turnover of inventory. D. the average transaction size per customer. E. the number of transactions per customer.

Q: Managing the breadth and depth of merchandise available from many manufacturers requires retail buyers who are A. efficient and effective managers. B. familiar with the needs of the target market. C. experienced shoppers. D. familiar with retail inventory management. E. product champions.

Q: An approach to managing the assortment of merchandise in which a manager is assigned the responsibility for selecting all products that consumers in a market segment might view as substitutes for each other, with the objective of maximizing sales and profits in the category, is referred to as __________. A. capacity management B. product management C. retail inventory management D. category management E. automated inventory control

Q: The use of displays, coupons, product samples, and other brand communications to influence shopping behavior in a store is referred to as A. functional qualities. B. level of service. C. shopper marketing. D. lifestyle attributes. E. psychographic elements.

Q: The music played in the grocery store has a slow tempo to get shoppers to stay longer and hopefully put more items in their cart. Music is part of the grocery store's __________. A. atmosphere B. sensory management plan C. psychological attributes D. personality type E. sociological profile

Q: Intangibles, such as a sense of belonging, excitement, style, or warmth, are considered to be __________ of a store's image. A. functional qualities B. sociological qualities C. psychological attributes D. antecedent attributes E. personality elements

Q: Price ranges, store layouts, and breadth and depth of merchandise lines are considered to be the __________ of a store's image. A. functional qualities B. sociological qualities C. psychological attributes D. lifestyle attributes E. atmospheric elements

Q: In the late 1950s, Pierre Martineau described __________ as "the way in which the store is defined in the shopper's mind." A. size B. location C. product mix D. image E. anchor store

Q: Loblaws, a Canadian supermarket, features fruits and vegetables piled high on tables that have umbrellas. The idea behind this arrangement was to give Loblaws an open-air market feel. In terms of the retailing mix, this tactic is related to __________. A. pricing B. marketing channel C. communication D. merchandise E. location

Q: Texas-based Whole Foods supermarkets target people who want to eat healthy. The stores use placards throughout, which tell shoppers about the farmers who grew and harvested the various products sold. This use of signage to provide consumer information is a part of which element of the retailing mix? A. communication B. pricing C. merchandise D. goods and services factor E. location

Q: Retailers like Williams-Sonoma that sell products through retail stores, catalogs, and online are examples of __________. A. intertype competitors B. multichannel retailers C. vertically-integrated retailers D. scrambled merchandisers E. dual distributors

Q: Retailers that utilize and integrate a combination of traditional store formats and nonstore formats are referred to as __________. A. multichannel retailers B. scrambled merchandisers C. mixed-brand retailers D. dual distribution retailers E. mixed-channel retailers

Q: Multichannel retailers are retailers that A. sell different products through entirely different channels. B. sell through different channels under different brand names. C. utilize strategic and tactical wholesalers. D. utilize and integrate a combination of traditional store formats and nonstore formats. E. combine two channels for their offerings: one for products and the other for services.

Q: __________ retailers utilize and integrate a combination of traditional store formats and nonstore formats. A. Progressive B. Opportunistic C. Multichannel D. Cluster E. Power

Q: Combining the convenient location of a strip mall with the influential draw of national stores results in shopping areas known as A. suburban malls. B. warehouse malls. C. power centers. D. retail malls. E. cluster malls.

Q: A huge shopping strip with multiple anchor (or national) stores and a supermarket is referred to as a __________. A. central business district B. regional shopping center C. community shopping center D. strip mall E. power center

Q: Not every suburban store is located in a shopping mall. Many neighborhoods have clusters of stores, referred to as a strip mall, to serve people who are within a 5- to 10-minute drive. Unlike the larger shopping centers, the composition of these clusters usually __________. A. is unplanned B. includes national anchor stores C. is restricted to privately-owned specialty stores D. is mainly fast food restaurants E. includes amusement or theme parks

Q: A strip mall refers to aA. suburban mall containing up to 100 stores that draws customer from a 5- to 10-mile radius.B. cluster of stores in a downtown area.C. retail location that typically has one primary store (usually a department store branch) with 20 to 40 smaller outlets serving a population of consumers who are within a 10- to 20-minute drive.D. cluster of neighborhood stores, often unplanned, designed to serve people within a five- to ten-minute drive.E. collection of category killers usually located outside a major amusement park or attraction.

Q: A cluster of neighborhood stores, whose composition is typically unplanned, that serves people within a 5- to 10-mile radius is referred to as a(n) A. suburban shopping mall. B. strip mall. C. mini-mart. D. hypomarket. E. central business district.

Q: The West Edmonton Mall in Alberta, Canada is a conglomerate of more than 800 stores, the world's largest indoor amusement park, more than 100 restaurants, a movie complex, and two hotels. This retail complex is the largest example of a(n) __________. A. regional shopping center B. urban microcenter C. megaplex D. hypermarket E. supercenter

Q: Which of the following are most likely to be the anchor stores at a regional shopping center? A. Old Navy, Abercrombie & Fitch, and Kay-Bee toy store B. Hickory Farms, Kay Jewelers, and Radio Shack C. Foot Locker, Dollar General, and a 7-11 D. Sears, Macy's, and JCPenney E. Hallmark, Pac Sun, and a Barnes & Noble bookstore

Q: Large shopping areas often contain two or three __________ stores, which are well-known national or regional stores such as Sears, Saks Fifth Avenue, and Bloomingdale's. A. power centers B. mega centers C. anchor D. value E. outlet

Q: A group of 50 to 150 stores, often containing two or three anchor stores, that typically attracts customers who live or work within a 5- to 10-mile range, is referred to as a(n) __________. A. power center B. regional shopping center C. strip mall D. central business district E. urban megacenter

Q: Regional shopping centers refer to aA. retail cluster in a downtown area.B. retail location that typically has one primary store and about 20 to 40 smaller outlets, and serves a population base of about 100,000.C. cluster of stores that serve people who are within a five- to ten-minute drive and serves a population base of under 30,000.D. group of 50 to 150 stores, often containing two or three anchor stores, that typically attracts customers who live or work within a 5- to 10-mile range.E. retail cluster of stores in uptown areas.

Q: Consumers often view central business district shopping as less convenient because of the lack of parking, higher crime rates, and __________. A. out-dated stores B. a lack of ambiance C. fewer quality restaurants D. few public restrooms E. exposure to the weather

Q: The oldest retail setting, located in the community's downtown area, is referred to as A. the central business district. B. main street. C. the community anchor. D. the economic center. E. historic commerce district.

Q: The central business district refers to A. a suburban mall that contains up to 100 stores and draws customer from 5 to 10 miles away. B. the oldest retailing setting, located in a community's downtown area. C. a retail location that typically has one primary store and about 20 to 40 smaller outlets, and serves a population base of about 100,000. D. a cluster of stores that serves people who are within a five- to ten-minute drive and serves a population base of under 30,000. E. a collection of large stores over 100,000 square feet that offers a mix of about 40 percent food products and 60 percent general merchandise items.

Q: Most stores today are near several others in one of four settings: the central business district, the regional shopping center, the strip mall, or the __________. A. rural micromall B. urban megacenter C. power center D. exurb value center E. suburban downtown

Q: Most stores today are near several others in one of four settings: the central business district, the regional shopping center, the power center, or the __________. A. suburban downtown B. strip mall C. exurb value center D. rural micromall E. urban megacenter

Q: Most stores today are near several others in one of four settings that include all of the following EXCEPT: A. the regional shopping center. B. the strip mall. C. the old-town district. D. the central business district. E. the power center.

Q: Saks Fifth Avenue Off 5th Photo Consider the Saks Fifth Avenue Off 5th photo above. This retailer is an example of a(n) __________. A. hypermarket B. markdown store C. outlet store D. category killer E. warehouse club

Q: Nordstrom Rack and the Gap Factory Store allow retailers to sell excess merchandise and still maintain an image of offering merchandise at full price in their primary stores. These are referred to as __________. A. extreme value retailers B. warehouse clubs C. discount houses D. outlet stores E. community shopping centers

Q: A variation of off-price retailing is __________. A. discount wholesalers B. outlet stores C. discount retailers D. supercenters E. hypermarkets

Q: Savings to the consumer at off-price retailers are reported as high as __________ off the prices of a traditional department store. A. 50% B. 60% C. 70% D. 80% E. 90%

Q: Merchants such as the Burlington Coat Factory purchase excess inventory at lower than wholesale prices and can therefore sell brand-name merchandise at lower than regular prices. This means that they are using a(n) A. off-price retailing strategy. B. markdown pricing strategy. C. everyday fair pricing strategy. D. everyday low pricing strategy. E. maintained markdown pricing strategy.

Q: T.J. Maxx HomeGoods Photo Consider the T.J. Maxx HomeGoods photo above. This retailer uses a(n) __________ pricing practice. A. markdown B. maintained markup C. gross margin D. manufactured suggested retail E. off-price retail

Q: The major difference between an off-price retailer and a discount store is that off-price retailers purchase merchandise from manufacturers __________ and discount stores buy from wholesalers __________. A. who are trying to offload returned or slightly irregular inventory; selling new but inexpensive merchandise B. at below wholesale prices; and charge a high initial price with the full intent of taking markdowns later C. at below wholesale prices; at full price but take a less of a markup D. at various price points; at the lowest price points possible E. who are part of a retailing cooperative; who are part of a wholesaling cooperative

Q: The selling of brand name merchandise at lower than regular prices is referred to as __________. A. discount pricing B. everyday low pricing C. markdown pricing D. off-price retailing E. loss-leader pricing

Q: Off-price retailing refers to theA. differences between the final selling price and the retailer's cost.B. sale of brand name merchandise at lower than regular prices.C. sales of merchandise at maintained markups.D. amount added by the manufacturer to achieve the desired suggested retail price.E. reduction in retail price usually expressed as the gross margin.

Q: Which of the following statements regarding retail pricing is most accurate? A. Consumers rarely base their perceptions of a store's prices on a price of a benchmark item in the store. B. Consumers are influenced more by a store's ambiance than its prices. C. Stores that offer rebates and take an excessive amount of time to process them may create negative consumer perceptions. D. New technology has nearly made markdowns unnecessary. E. The only difference between everyday low pricing and everyday fair pricing is whether the store uses markups.

Q: Consumers often use the prices of __________ items, such as a can of Coke, to form an overall impression of the store's prices. A. stoplight B. point-of-purchase C. value-based D. signpost E. loss-leader

Q: Consumers often use the prices of __________ items, such as a can of Coke, to form an overall impression of the store's prices. A. benchmark B. stoplight C. point-of-purchase D. value-based E. loss-leader

Q: Retailers that advocate an everyday fair pricing strategy may not offer the lowest prices but try to create value for customers using which of these? A. brand name of the product B. product benefits C. convenience D. perceived quality E. the total buying experience

Q: Retailers that advocate an everyday fair pricing strategy may not offer the lowest prices but try to create value for customers using which of these? A. customer service B. product benefits C. convenience D. perceived quality E. maintained price

Q: Many retailers advocate a(n) __________ strategy, a pricing strategy that may not offer the lowest prices but does try to create value for customers through its service and the total buying experience. A. customer loyalty B. emphasize-value C. everyday low pricing D. low-margin E. everyday fair pricing

Q: When considering the use of everyday low pricing, one should consider the impact on the brand and store's __________. A. perceived quality B. product benefits C. convenience D. trademark protection E. maintained price

Q: Walmart and Home Depot emphasize consistently low prices and eliminate most markdowns with a retail pricing strategy called A. low-margin. B. value based. C. everyday low pricing. D. everyday fair pricing. E. markdown pricing.

Q: Emphasizing consistently low prices and eliminating most markdowns is referred to as __________. A. low-margin pricing B. everyday low pricing C. everyday fair pricing D. value-based pricing E. maintained pricing

Q: Recent research indicates that the timing of __________ might affect future sales because frequent promotions increase consumers' ability to remember regular prices. A. promotional markups B. original markups C. future markups D. maintained markups E. markdowns

Q: When Paulette first saw the dress in the store window, she knew two things. She had to own the dress, and she could not afford it at its current price. Disappointed, she left. Two weeks later, she passed by the store again and saw that the price of the dress had been reduced to one that she could afford. Specifically, the store had reduced the price by 30 percent to encourage buyers. Paulette was able to purchase the dress because of a(n) A. negative markup. B. markup elimination. C. markdown. D. liquidity reduction. E. increase in net margin.

Q: The largest inventory of wedding dresses in the Southeast can be found at Low's Bridal and Formal in Brinkley, Arkansas. From December 26 to January 16, a prospective bride shopping at Low's can find gowns once priced at $6,000 for $2,999 and $800 gowns for $399. The reduced prices of these gowns are reflected in which retail pricing strategy? A. markdowns B. original markups C. future markups D. inventory shrinkages E. net markups

Q: Timing is an important element of markdowns. Those retailers who take a markdown as soon as sales fall off are most likely doing so to __________. A. placate dissatisfied customers B. enhance customer perceptions of product quality C. free up valuable selling space and cash D. create an image as a cutting edge retailer E. react to the entry of a new competitor

Q: Markdowns can be used to A. increase competition with other retailers in the immediate vicinity. B. placate dissatisfied customers. C. enhance customer perceptions of product quality. D. increase demand for complementary products. E. create a sense of urgency among repeat buyers.

Q: To increase the demand for complementary products, the price of a product often is A. marked up. B. marked down. C. off-priced. D. value-subtracted. E. maintained.

Q: Often new models or styles force the price of existing models to be __________. A. marked up B. off-priced C. value-subtracted D. maintained E. marked down

Q: When retailers set prices on new models or styles of products, the price of existing models often is __________ to quickly sell them. A. marked up B. off-priced C. value-added D. marked down E. maintained

Q: Many retailers take a markdown as soon as sales fall to free valuable selling space and cash. This illustrates one tactic for handling the __________ of markdowns. A. timing B. demand C. availability D. bargain hunting E. customer value

Q: A markdown refers to A. the difference between the final selling price and the retailer's cost. B. the amount the manufacturer adds to achieve the desired suggested retail price. C. discounting a product when it does not sell at the original price and an adjustment is necessary. D. the lowest price to which a retailer can reduce a sales ticket and still make a profit. E. the net margin.

Q: Discounting a product when the product does not sell at the original price is referred to as a(n) __________. A. inverse markup B. markdown C. price sensitivity D. concession pricing E. rebate

Q: Jane Westerlund owns a small retail picture frame store in a local strip mall. She just bought 10 picture frames from a promising woodworker for $36 each. She first priced the frames at $100 each but sales were a bit slow. Jane decides to reduce the price for the frames to $80. What is her maintained markup in dollar terms? A. $0 B. $36 C. $44 D. $64 E. $100

Q: A retailer bought a collectible Precious Moments figurine for $26. She sets the initial selling price at $60. The final selling price was $52. What was the maintained markup? A. $0 B. $16 C. $26 D. $34 E. $86

Q: Another term for maintained markup is __________. A. original markup B. maintained markup C. markdown D. gross margin E. net margin

Q: Another term for gross margin is __________. A. original markup B. markdown C. return on sales D. discounted price E. maintained markup

Q: The difference between the final selling price and the retailer's cost is referred to as a(n) __________. A. original markup B. maintained markup C. markdown D. differential markup E. discounted price

Q: A maintained markup refers to A. the difference between the final selling price and the retailer's cost. B. the amount subtracted from the cost the retailer paid for a product to reach the initial selling price. C. the amount the manufacturer adds to achieve the desired suggested retail price. D. the net margin. E. the highest price listed for the product.

Q: A retailer bought a collectible Precious Moments figurine for $26. She sets the initial selling price at $60. The final selling price was $52. What was the original markup? A. $8 B. $13 C. $26 D. $34 E. $86

Q: The difference between the retailer's cost and the initial selling price is referred to as __________. A. gross margin B. maintained markup C. markdown D. differential markup E. original markup

Q: Jane Westerlund owns a small retail picture frame store in a local strip mall. She just bought 10 picture frames from a promising woodworker for $36 each. Based on market conditions, she will sell these for $100 each. What is her markup in dollar terms? A. $36 B. $64 C. $100 D. $360 E. $1,000

Q: The amount added to the cost the retailer paid for a product to reach the final selling price is referred to as a(n) __________. A. markup B. markdown C. original markup D. maintained markup E. gross margin

Q: A markup refers toA. the difference between the final selling price and how the customer values the product.B. selling brand name merchandise at lower than regular prices.C. the amount added to the cost the retailer paid for a product to reach the final selling price.D. the difference between the retail cost and initial selling price.E. the reduction in retail price, usually expressed as a percentage equal to the amount reduced, divided by the original price, and then multiplied by 100.

Q: When setting prices for merchandise, retailers must decide on the markup, markdown, and the __________ for markdowns. A. relevance B. necessity C. percentage D. timing E. consequence

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 toA. the activities related to managing the store and the merchandise in the store, which includes product, price, promotion, and profit.B. the activities related to managing the store and the merchandise in the store, which includes the four utilities of 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 plan C. retail life cycle D. retailing mix E. retail store positioning