Q&A Hero

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

Q: A customer was unable to go to the store on her own to buy gifts for the holidays. She contacted a Pampered Chef representative who came to her home, showed her not only catalogs but actual products, answered all her questions, and had all the customer's gifts sorted and delivered. This is an example of __________. A. interface marketing B. flex-marketing C. direct selling D. interactive selling E. responsive selling

Q: Which of the following statements regarding direct selling is most accurate? A. Unlike other forms of nonstore retailing, direct selling takes place in the business market. B. Direct selling is found exclusively in the United States. C. Direct selling succeeds by providing customers with convenience and personalized service. D. Direct sales have been declining rapidly in the United States since the 1980s. E. By definition, direct selling can only take place in a home.

Q: Growth in the direct-selling industry is the result of two trends: (1) direct selling retailers are expanding into markets outside the United States and (2) A. increased gas prices and traffic congestion are causing people to want the store to deliver the products to them. B. the pendulum is beginning to swing back to more mothers (and fathers) staying home during the day with children, making direct selling more convenient. C. the purchase or lease of real estate to build an actual "brick" retail store is becoming prohibitive. D. graduating business students are finding it more difficult to find a traditional sales position and like the idea of being their own bosses. E. some consumers prefer one-on-one customer service and a social shopping experience rather than online shopping or big discount stores.

Q: In response to the changes in the United States, many direct sellers are implementing a __________ strategy by expanding into other countries with their current product lines. A. market development B. market penetration C. accelerated development D. product development E. diversification

Q: Companies such as Avon, Fuller Brush, Mary Kay, and World Book are examples of firms that use A. interface marketing. B. flex-marketing. C. direct selling. D. interactive selling. E. responsive selling.

Q: Direct selling, sometimes called __________, involves direct sales of goods and services to consumers through personal interactions and demonstrations in their home or office. A. interface marketing B. flex-marketing C. interactive selling D. responsive selling E. door-to-door retailing

Q: The sales of products and services to consumers through personal interactions and demonstrations in their homes or offices is referred to as __________. A. direct selling B. person-to-person sales C. face-to-face selling D. direct response selling E. customized selling

Q: As a result of legislation, consumers who do not want to receive telephone calls related to a company sales efforts can A. purchase telephones that block unwanted calls. B. place their telephone numbers on the National Do-Not-Call Registry. C. request phone numbers that begin with the area code 555 that automatically block telemarketing solicitors. D. request phone numbers that begin with the area code 888 that automatically block telemarketing solicitors. E. use an unlisted telephone number.

Q: Which of the following statements regarding telemarketing is most accurate? A. Shopping bots are computers that place automated or "robo" (i.e. robotic) telemarketing calls. B. Direct-mail is typically viewed as more efficient means of targeting consumers than telemarketing. C. Telemarketing has risen in popularity as a result of the National Please-Do-Call registry legislation. D. Consumer privacy, industry standards, and ethical guidelines have become important issues. E. Some firms are considering shifting their direct-mail and door-to-door budgets to telemarketing techniques.

Q: In the telemarketing industry, issues such as consumer privacy, __________, and industry standards have become a topic of discussion among consumers, Congress, the Federal Trade Commission (FTC), and businesses. A. product quality B. price differences C. ethical guidelines D. on-time delivery E. competitive antics

Q: In the telemarketing industry, issues such as __________, ethical guidelines, and industry standards have become a topic of discussion among consumers, Congress, the Federal Trade Commission (FTC), and businesses. A. competitive antics B. coercion tactics C. freedom of speech D. language issues E. consumer privacy

Q: Using the telephone to interact with and sell directly to consumers is referred to as __________. A. digital marketing B. telemarketing C. solicitation marketing D. telecommerce E. direct selling

Q: Online retailing has evolved to include social shopping options like intermediaries (Groupon), marketplaces (Goggle Offer), and __________ (Yipit). A. swap meets B. aggregators C. flash mobs D. showroomers E. arbitrators

Q: Experts suggest that online retailers should think of their websites as __________ if they are to attract and retain customers. A. cash cows B. dynamic billboards C. virtual reality stores D. traditional retail stores E. online entertainment

Q: One of the biggest problems online retailers face is that nearly two-thirds of online shoppers make it to "checkout" and then leave the website to compare shipping costs and prices on other sites. Of the shoppers who leave, __________ do not return. A. 30% B. 40% C. 50% D. 60% E. 70%

Q: One of the biggest problems online retailers face is that nearly __________ of online shoppers make it to "checkout" and then leave the website to compare shipping costs and prices on other sites. A. 16% B. 26% C. 36% D. 56% E. 66%

Q: Online retail purchases by consumers can be the result of several very different approaches, which include: (1) using a shopping "bot" to search for a product at locations with the best price; (2) participating in an online auction; (3) going directly to online malls; and (4) A. paying dues to become a member of an online discount service. B. becoming a secret shopper. C. participating in a buying cooperative. D. using direct selling. E. becoming a member of a research group that evaluates new products.

Q: In recent years, online sales accounted for __________ of all retail sales. A. 5 percent B. 10 percent C. 20 percent D. 30 percent E. 40 percent

Q: Walmart recently introduced its Site-to-Store service thatA. offers shoppers a virtual reality shopping experience from their home computers.B. allows customers to order online and receive free same-day pickup at a local store.C. provides free shipping to customers if they order $45 or more of selected items.D. allows customers to "showroom," coming to the store, compare an item's price on the Internet, and then honor a competitor's lower price if they bring an ad of the item to the store.E. allows customers hold online auctions for Walmart overstock or seasonal items that are being discontinued to make room for new inventory.

Q: The term "bricks and clicks" refers to __________ and __________ respectively. A. catalogs; websites B. search engines; websites C. traditional retailers; online retailers D. buildings; shoppers E. computer savvy buyers; computer novice buyers

Q: Which type of utility is created by online shopping? A. time B. price C. product D. process E. promotion

Q: Some experts suggest that television shopping programs are becoming a modern version of __________ by combining elements of reality TV programs, talk shows, and infomercials. A. augmented reality B. door-to-door retailing C. telemarketing D. direct response wholesaling E. indirect selling

Q: In the past, television home shopping programs have attracted mostly A. 20 to 30 year old men. B. 30 to 40 year old women. C. 40 to 50 year old men. D. 40 to 60 year old women. E. 50 to 70 year old men.

Q: Which of the following statements regarding QVC is most accurate? A. QVC broadcasts five hours a day every weekday evening during prime time. B. QVC reaches more than 300 million households in the U.S., U.K., Germany, Italy, China, and Japan. C. QVC never offers the same product two days in a row. D. QVC sells all its items by dropping the price to less than $10.00 regardless of the product value, if it is not sold in one day. E. QVC entices customers to stay tuned by offering free products to random callers.