Q&A Hero

Q: After defining and selecting a target market, retailers must develop the six Ps of the retailing mix to successfully meet the needs of the chosen target market. What are the six Ps of the retailing mix?

Q: Defining franchising and discuss the two basic forms of franchising. Give an example of each form.

Q: Retailing opportunities can take place without customers shopping at a store. Name and briefly discuss four forms of nonstore retailing.

Q: Discount stores are retail chains that compete on the basis of low prices, high turnover, and high volume. Name and briefly describe four types of discounters, and give an example of each type.

Q: Compare and contrast supermarkets and convenience stores. Name several characteristics of each store in your answer.

Q: A specialty store is not only a type of store, but also a method of retail operations. Describe the specialty store strategy. Then name two examples of specialty stores.

Q: There are several types of retail stores, each offering a different product assortment, service level, and price level, according to the shopping preferences of its customers. Name eight types of retailers. For each type, indicate the level of service, price level, and width of product assortment.

Q: Define independent retailer, chain store, and franchise and give an example of each.

Q: Define retailing and list the factors that are used to classify retail operations.

Q: NARRBEGIN: Apple StoresApple StoresApple Inc. opened its first Apple Store in 2001 and currently has hundreds of stores spanning several countries. Many of the Apple Stores are inside malls, but Apple also has several free standing stores they call their flagship stores, with each looking a little different on the outside. These are located in New York City, Boston, Los Angeles, Chicago, San Francisco, Montreal, Tokyo, and Osaka.The store in New York City is a glass cube with a glass cylindrical elevator and spiral staircase that leads to an underground store. Inside they have long tables displaying products ranging from the iMac, MacBook Air, iPods, printers, cameras, and other accessories. All these products are accessible to customers who can try them out and ask various questions of informed associates. The walls are mostly metallic and the signs are all backlit.All stores have a Genius Bar where a customer can receive technical advice or set up service and repair for their products. To address the needs of the many iPod users, some stores, such as the New York store, have set up a separate iPod Bar where customers can get their own technical assistance. They also have an iMac station for kids who want to try out games and learning products and a theatre for workshops, product training sessions and special presentations.Apple introduced the handheld Easy Pay system where customers don"t have to wait in line to purchase products and with a simple click of a paperless, handheld credit card scanner, the employee brings the cash register to the customer. Items can be rung up anywhere on the show room floor. Apple plans to open several more stores in the years to come.Apple also has its online store. At its web site a customer can order any Mac or iPod product, plus a large variety of accessories. In addition to its product offerings, a customer can watch a demonstration of how products work or check out the latest Mac ads or news.NARRENDRefer to Apple Stores. The Genius Bar where customers can ask questions of knowledgeable personnel is an example of getting consumers involved in the retail experience, also known as _____.a. productb. presentationc. m-commerced. interactivitye. elements

Q: NARRBEGIN: Apple StoresApple StoresApple Inc. opened its first Apple Store in 2001 and currently has hundreds of stores spanning several countries. Many of the Apple Stores are inside malls, but Apple also has several free standing stores they call their flagship stores, with each looking a little different on the outside. These are located in New York City, Boston, Los Angeles, Chicago, San Francisco, Montreal, Tokyo, and Osaka.The store in New York City is a glass cube with a glass cylindrical elevator and spiral staircase that leads to an underground store. Inside they have long tables displaying products ranging from the iMac, MacBook Air, iPods, printers, cameras, and other accessories. All these products are accessible to customers who can try them out and ask various questions of informed associates. The walls are mostly metallic and the signs are all backlit.All stores have a Genius Bar where a customer can receive technical advice or set up service and repair for their products. To address the needs of the many iPod users, some stores, such as the New York store, have set up a separate iPod Bar where customers can get their own technical assistance. They also have an iMac station for kids who want to try out games and learning products and a theatre for workshops, product training sessions and special presentations.Apple introduced the handheld Easy Pay system where customers don"t have to wait in line to purchase products and with a simple click of a paperless, handheld credit card scanner, the employee brings the cash register to the customer. Items can be rung up anywhere on the show room floor. Apple plans to open several more stores in the years to come.Apple also has its online store. At its web site a customer can order any Mac or iPod product, plus a large variety of accessories. In addition to its product offerings, a customer can watch a demonstration of how products work or check out the latest Mac ads or news.NARRENDRefer to Apple Stores. Apple has the Genius Bar, the backlit signs, the Apple products themselves, the modern metallic walls and spiral staircases in its stores. These are all work together to convey the store's _____.a. impressionb. environmentc. atmosphered. surroundingse. elements

Q: NARRBEGIN: Apple StoresApple StoresApple Inc. opened its first Apple Store in 2001 and currently has hundreds of stores spanning several countries. Many of the Apple Stores are inside malls, but Apple also has several free standing stores they call their flagship stores, with each looking a little different on the outside. These are located in New York City, Boston, Los Angeles, Chicago, San Francisco, Montreal, Tokyo, and Osaka.The store in New York City is a glass cube with a glass cylindrical elevator and spiral staircase that leads to an underground store. Inside they have long tables displaying products ranging from the iMac, MacBook Air, iPods, printers, cameras, and other accessories. All these products are accessible to customers who can try them out and ask various questions of informed associates. The walls are mostly metallic and the signs are all backlit.All stores have a Genius Bar where a customer can receive technical advice or set up service and repair for their products. To address the needs of the many iPod users, some stores, such as the New York store, have set up a separate iPod Bar where customers can get their own technical assistance. They also have an iMac station for kids who want to try out games and learning products and a theatre for workshops, product training sessions and special presentations.Apple introduced the handheld Easy Pay system where customers don"t have to wait in line to purchase products and with a simple click of a paperless, handheld credit card scanner, the employee brings the cash register to the customer. Items can be rung up anywhere on the show room floor. Apple plans to open several more stores in the years to come.Apple also has its online store. At its web site a customer can order any Mac or iPod product, plus a large variety of accessories. In addition to its product offerings, a customer can watch a demonstration of how products work or check out the latest Mac ads or news.NARRENDRefer to Apple Stores. Some shoppers purposely plan to visit the Apple store on Fifth Avenue in New York City, which is characteristic of:a. generator storesb. lifestyle storesc. interactive storesd. m-storese. destination stores

Q: NARRBEGIN: Apple StoresApple StoresApple Inc. opened its first Apple Store in 2001 and currently has hundreds of stores spanning several countries. Many of the Apple Stores are inside malls, but Apple also has several free standing stores they call their flagship stores, with each looking a little different on the outside. These are located in New York City, Boston, Los Angeles, Chicago, San Francisco, Montreal, Tokyo, and Osaka.The store in New York City is a glass cube with a glass cylindrical elevator and spiral staircase that leads to an underground store. Inside they have long tables displaying products ranging from the iMac, MacBook Air, iPods, printers, cameras, and other accessories. All these products are accessible to customers who can try them out and ask various questions of informed associates. The walls are mostly metallic and the signs are all backlit.All stores have a Genius Bar where a customer can receive technical advice or set up service and repair for their products. To address the needs of the many iPod users, some stores, such as the New York store, have set up a separate iPod Bar where customers can get their own technical assistance. They also have an iMac station for kids who want to try out games and learning products and a theatre for workshops, product training sessions and special presentations.Apple introduced the handheld Easy Pay system where customers don"t have to wait in line to purchase products and with a simple click of a paperless, handheld credit card scanner, the employee brings the cash register to the customer. Items can be rung up anywhere on the show room floor. Apple plans to open several more stores in the years to come.Apple also has its online store. At its web site a customer can order any Mac or iPod product, plus a large variety of accessories. In addition to its product offerings, a customer can watch a demonstration of how products work or check out the latest Mac ads or news.NARRENDRefer to Apple Stores. What method of nonstore retailing does Apple take advantage of through the use of its Web site?a. telemarketingb. automatic vendingc. direct maild. catalogs and mail orderse. electronic retailing

Q: NARRBEGIN: Apple StoresApple StoresApple Inc. opened its first Apple Store in 2001 and currently has hundreds of stores spanning several countries. Many of the Apple Stores are inside malls, but Apple also has several free standing stores they call their flagship stores, with each looking a little different on the outside. These are located in New York City, Boston, Los Angeles, Chicago, San Francisco, Montreal, Tokyo, and Osaka.The store in New York City is a glass cube with a glass cylindrical elevator and spiral staircase that leads to an underground store. Inside they have long tables displaying products ranging from the iMac, MacBook Air, iPods, printers, cameras, and other accessories. All these products are accessible to customers who can try them out and ask various questions of informed associates. The walls are mostly metallic and the signs are all backlit.All stores have a Genius Bar where a customer can receive technical advice or set up service and repair for their products. To address the needs of the many iPod users, some stores, such as the New York store, have set up a separate iPod Bar where customers can get their own technical assistance. They also have an iMac station for kids who want to try out games and learning products and a theatre for workshops, product training sessions and special presentations.Apple introduced the handheld Easy Pay system where customers don"t have to wait in line to purchase products and with a simple click of a paperless, handheld credit card scanner, the employee brings the cash register to the customer. Items can be rung up anywhere on the show room floor. Apple plans to open several more stores in the years to come.Apple also has its online store. At its web site a customer can order any Mac or iPod product, plus a large variety of accessories. In addition to its product offerings, a customer can watch a demonstration of how products work or check out the latest Mac ads or news.NARRENDRefer to Apple Stores. Of the major types of retail operations, Apple stores are _____.a. department storesb. specialty storesc. superstoresd. convenience storese. discount stores

Q: NARRBEGIN: Apple StoresApple StoresApple Inc. opened its first Apple Store in 2001 and currently has hundreds of stores spanning several countries. Many of the Apple Stores are inside malls, but Apple also has several free standing stores they call their flagship stores, with each looking a little different on the outside. These are located in New York City, Boston, Los Angeles, Chicago, San Francisco, Montreal, Tokyo, and Osaka.The store in New York City is a glass cube with a glass cylindrical elevator and spiral staircase that leads to an underground store. Inside they have long tables displaying products ranging from the iMac, MacBook Air, iPods, printers, cameras, and other accessories. All these products are accessible to customers who can try them out and ask various questions of informed associates. The walls are mostly metallic and the signs are all backlit.All stores have a Genius Bar where a customer can receive technical advice or set up service and repair for their products. To address the needs of the many iPod users, some stores, such as the New York store, have set up a separate iPod Bar where customers can get their own technical assistance. They also have an iMac station for kids who want to try out games and learning products and a theatre for workshops, product training sessions and special presentations.Apple introduced the handheld Easy Pay system where customers don"t have to wait in line to purchase products and with a simple click of a paperless, handheld credit card scanner, the employee brings the cash register to the customer. Items can be rung up anywhere on the show room floor. Apple plans to open several more stores in the years to come.Apple also has its online store. At its web site a customer can order any Mac or iPod product, plus a large variety of accessories. In addition to its product offerings, a customer can watch a demonstration of how products work or check out the latest Mac ads or news.NARRENDRefer to Apple Stores. In terms of ownership, which of the following best describes Apple stores?a. independent retailerb. chain storesc. franchisesd. pop-up shope. department stores

Q: NARRBEGIN: Wal-MartWal-MartWal-Mart, the world's largest retailer by revenue, announced that it will get back to its founder's roots by initiating more price cuts. Critics claimed that the giant was getting away from its original focus because it posted relatively high gross profit margins. CEO Mike Duke assuaged critics by saying Wal-Mart's $400 billion in sales will become even larger because the price cuts will attract more customers and it will lower its costs of goods sold.NARRENDRefer to Wal-Mart. Which type of pricing strategy describes Wal-Mart's commitment to offer consistently lower prices?a. high-low pricingb. everyday low pricing (EDLP)c. promotional pricingd. prestige pricinge. marginal pricing

Q: NARRBEGIN: Wal-MartWal-MartWal-Mart, the world's largest retailer by revenue, announced that it will get back to its founder's roots by initiating more price cuts. Critics claimed that the giant was getting away from its original focus because it posted relatively high gross profit margins. CEO Mike Duke assuaged critics by saying Wal-Mart's $400 billion in sales will become even larger because the price cuts will attract more customers and it will lower its costs of goods sold.NARRENDRefer to Wal-Mart. Most Wal-Mart stores are not located in shopping centers but rather are buildings all by themselves. This type of location is referred to as a:a. primary outletb. freestanding storec. pop-up stored. single-unit retailere. strip store

Q: NARRBEGIN: Wal-MartWal-MartWal-Mart, the world's largest retailer by revenue, announced that it will get back to its founder's roots by initiating more price cuts. Critics claimed that the giant was getting away from its original focus because it posted relatively high gross profit margins. CEO Mike Duke assuaged critics by saying Wal-Mart's $400 billion in sales will become even larger because the price cuts will attract more customers and it will lower its costs of goods sold.NARRENDRefer to Wal-Mart. Many Wal-Mart stores have a full line of groceries and general merchandise with a wide range of services, such as a pharmacy, portrait studio, optical shop, and bank. Wal-Mart is an example of which type of discount store?a. hypermarketb. specialty discount storec. extreme-value retailerd. supercentere. category killer

Q: NARRBEGIN: Wal-MartWal-MartWal-Mart, the world's largest retailer by revenue, announced that it will get back to its founder's roots by initiating more price cuts. Critics claimed that the giant was getting away from its original focus because it posted relatively high gross profit margins. CEO Mike Duke assuaged critics by saying Wal-Mart's $400 billion in sales will become even larger because the price cuts will attract more customers and it will lower its costs of goods sold.NARRENDRefer to Wal-Mart. Wal-Mart's gross margin is the:a. total sales from all of its stores worldwideb. amount of money it makes as a percentage of sales after the cost of goods sold is subtractedc. amount of money it makes as a percentage of sales before taxesd. amount of money it makes as a percentage of sales after all costs are subtractede. net profit it earns after all expenses and taxes are subtracted

Q: NARRBEGIN: Wal-MartWal-MartWal-Mart, the world's largest retailer by revenue, announced that it will get back to its founder's roots by initiating more price cuts. Critics claimed that the giant was getting away from its original focus because it posted relatively high gross profit margins. CEO Mike Duke assuaged critics by saying Wal-Mart's $400 billion in sales will become even larger because the price cuts will attract more customers and it will lower its costs of goods sold.NARRENDRefer to Wal-Mart. In terms of ownership, Wal-Mart would be classified as a(n):a. independent retailerb. chain storec. franchised. discount storee. department store

Q: NARRBEGIN: DiazDiazJohn Diaz immigrated to Tallahassee from Cuba in the 1980s. He set up a coffee shop called Diaz in a small upper-middle-class neighborhood. It rapidly became popular because of the wonderful coffee it brewed. Soon Diaz was selling the finest coffees from around the world, plus coffee-making necessities such as grinders and brewers. Within ten years, Diaz was operating a lucrative mail-order business in addition to his coffee shop.Upon entering the shop, the first thing the customer sees is a countertop crowded with all of the machinery needed for making a perfect cup of coffee. Marble-topped tables are set in cozy nooks with overstuffed chairs. Bookshelves on one wall hold books about coffee for patrons to read while they sip. The smell is intoxicating to a real coffee lover. Coffee drinkers can take home a pound when they leave. The store carries all types of coffee from $300 per pound Kopi Luwak from Sumatra to Brazilian Cerrado for $8 a pound.NARRENDRefer to Diaz. The smell of fresh coffee, the fact it is made where drinkers can watch the process, and the comfortable chairs all are used to create the store's:a. atmosphereb. cultural impactc. target strategyd. merchandise mixe. promotional strategy

Q: NARRBEGIN: DiazDiazJohn Diaz immigrated to Tallahassee from Cuba in the 1980s. He set up a coffee shop called Diaz in a small upper-middle-class neighborhood. It rapidly became popular because of the wonderful coffee it brewed. Soon Diaz was selling the finest coffees from around the world, plus coffee-making necessities such as grinders and brewers. Within ten years, Diaz was operating a lucrative mail-order business in addition to his coffee shop.Upon entering the shop, the first thing the customer sees is a countertop crowded with all of the machinery needed for making a perfect cup of coffee. Marble-topped tables are set in cozy nooks with overstuffed chairs. Bookshelves on one wall hold books about coffee for patrons to read while they sip. The smell is intoxicating to a real coffee lover. Coffee drinkers can take home a pound when they leave. The store carries all types of coffee from $300 per pound Kopi Luwak from Sumatra to Brazilian Cerrado for $8 a pound.NARRENDRefer to Diaz. If Diaz wanted to grow his business and granted another owner the rights to use his format and approach to doing business, he would be involved in:a. trading upb. m-commercec. direct marketingd. product and trade name franchisinge. business format franchising

Q: NARRBEGIN: DiazDiazJohn Diaz immigrated to Tallahassee from Cuba in the 1980s. He set up a coffee shop called Diaz in a small upper-middle-class neighborhood. It rapidly became popular because of the wonderful coffee it brewed. Soon Diaz was selling the finest coffees from around the world, plus coffee-making necessities such as grinders and brewers. Within ten years, Diaz was operating a lucrative mail-order business in addition to his coffee shop.Upon entering the shop, the first thing the customer sees is a countertop crowded with all of the machinery needed for making a perfect cup of coffee. Marble-topped tables are set in cozy nooks with overstuffed chairs. Bookshelves on one wall hold books about coffee for patrons to read while they sip. The smell is intoxicating to a real coffee lover. Coffee drinkers can take home a pound when they leave. The store carries all types of coffee from $300 per pound Kopi Luwak from Sumatra to Brazilian Cerrado for $8 a pound.NARRENDRefer to Diaz. Customers of Diaz's coffee shop can purchase coffee, coffee makers, mugs, chocolate, music CDs, and all sorts of unique gift items. Diaz is practicing:a. m-commerceb. interactive merchandisingc. lifestyle merchandisingd. scrambled merchandisinge. pop-up shopping

Q: NARRBEGIN: DiazDiazJohn Diaz immigrated to Tallahassee from Cuba in the 1980s. He set up a coffee shop called Diaz in a small upper-middle-class neighborhood. It rapidly became popular because of the wonderful coffee it brewed. Soon Diaz was selling the finest coffees from around the world, plus coffee-making necessities such as grinders and brewers. Within ten years, Diaz was operating a lucrative mail-order business in addition to his coffee shop.Upon entering the shop, the first thing the customer sees is a countertop crowded with all of the machinery needed for making a perfect cup of coffee. Marble-topped tables are set in cozy nooks with overstuffed chairs. Bookshelves on one wall hold books about coffee for patrons to read while they sip. The smell is intoxicating to a real coffee lover. Coffee drinkers can take home a pound when they leave. The store carries all types of coffee from $300 per pound Kopi Luwak from Sumatra to Brazilian Cerrado for $8 a pound.NARRENDRefer to Diaz. The type of merchandise carried by Diaz is deep but with a narrow assortment. The store would most likely be classified as a:a. convenience storeb. mass merchandiserc. specialty stored. category killere. membership club

Q: NARRBEGIN: DiazDiazJohn Diaz immigrated to Tallahassee from Cuba in the 1980s. He set up a coffee shop called Diaz in a small upper-middle-class neighborhood. It rapidly became popular because of the wonderful coffee it brewed. Soon Diaz was selling the finest coffees from around the world, plus coffee-making necessities such as grinders and brewers. Within ten years, Diaz was operating a lucrative mail-order business in addition to his coffee shop.Upon entering the shop, the first thing the customer sees is a countertop crowded with all of the machinery needed for making a perfect cup of coffee. Marble-topped tables are set in cozy nooks with overstuffed chairs. Bookshelves on one wall hold books about coffee for patrons to read while they sip. The smell is intoxicating to a real coffee lover. Coffee drinkers can take home a pound when they leave. The store carries all types of coffee from $300 per pound Kopi Luwak from Sumatra to Brazilian Cerrado for $8 a pound.NARRENDRefer to Diaz. In terms of ownership, Diaz's coffee shop would be classified as a(n):a. franchiseb. wholesalerc. independent retail operationd. agencye. chain store

Q: The Halloween Super Store is only open from September until November, usually in an otherwise vacant store. This is an example of a _____.a. temp storeb. m-commercec. convenience retailingd. Pop-up shope. flash store

Q: Pop-Up shops are: a. Internet web sites that pop up while you are visiting a site b. m-commerce c. convenience retailing d. e-business e. temporary retail establishments

Q: At the American Girl store in Chicago, dolls can be purchased and girls can then go to the American Girl caf or American Girl Theatre, and even have birthday parties. This is an example of using _____. a. nonstore retailing b. m-commerce c. convenience retailing d. e-business e. interactivity

Q: One of the new developments in retailing is m-commerce. M-commerce refers to the ability to: a. use unique communication techniques to send advertising messages b. create situations in which the AIDA technique is effective c. more efficiently manage customer demand with inventory d. shop using wireless mobile devices e. motivate consumers to buy more by creating more feedback channels

Q: One of the new developments in retailing is m-commerce. The m- in m-commerce stands for: a. motivated b. multimedia c. marketing d. managed e. mobile

Q: Build a Bear is a retailer where children can design and assemble a stuffed animal from walls of parts. Each child starts by deciding what animal they want. Then, the child moves to a place where the stuffing is added. Finally, the child moves to the area where the last accessories are added. Build-A-Bear is part of a recent trend in retailing referred to as:: a. nonstore retailing b. m-commerce c. convenience retailing d. e-business e. adding interactivity

Q: Interactivity is one of the new developments in retailing. In retailing, interactivity refers to: a. the use of improved communications with customers b. a new form of customer relationship marketing c. entertainment for customers to get them involved d. the use of information kiosks e. the creation of a static atmosphere

Q: Whenever a customer opens an account at First Southern National Bank, a teller or account representative asks the customer whether she needs a CD, online banking or other services. In other words, the account representative engages in: a. suggestion selling b. trading up c. bait and switch d. customer relationship retailing e. service-disguised selling

Q: A common practice among most retailers that seeks to broaden customers' original purchases with related items is called: a. suggestion selling b. trading up c. bait and switch d. comprehensive selling e. interactive selling

Q: When Irvin went into Lowe's to buy his wife a small tool set she said she wanted, the sales clerk suggested a larger set with a tool kit on wheels that included a router and circular saw. In this example, the sales clerk engaged in: a. suggestion selling b. trading up c. bait and switch d. customer relationship retailing e. service-disguised selling

Q: Persuading customers to buy a higher-priced item than they originally intended to buy is referred to as: a. suggestion selling b. trading up c. conversion selling d. relationship marketing e. interactive selling

Q: The Home Depot has selected orange as its corporate color. It's a good choice. At the gut level, orange connotes happiness and warmth. A recent article in one of the company's advertising brochures spoke about choosing colors for home decorating. It referred to this color as "joyful orange." The color orange is part of the _____ at The Home Depot stores. a. cultural impact b. atmosphere c. target strategy d. merchandise mix e. promotional strategy

Q: When you walk into an Apple store you are immediately greeted by a clerk. The store is simply designed with layouts where you can experience every product from iMacs, iPhones, a variety of iPods, cameras, printers, and other accessories. If you have questions about the products you can visit the Genius Bar. There is a place where kids can play and experience Mac to by sitting on big round cushy chairs. This description is of the store's _____. a. customer service strategy b. atmosphere c. target strategy d. merchandise mix e. promotional strategy

Q: All of the following are factors in creating a store's atmosphere EXCEPT: a. employee type and density b. fixture type and density c. sound d. price e. odors

Q: Many technologically advanced retailers are using a technique called _____ to analyze the huge amounts of data collected through their point-of-purchase scanning equipment that will enable them to better meet the needs of customers. a. market-basket analysis b. simulated test marketing c. product/customer correlation analysis d. market cross-tabulations e. customer lifestyle analysis

Q: The overall impression conveyed by a store's physical layout, decor, and surroundings is referred to as the store's: a. atmosphere b. merchandising mix c. aura d. position e. positioning

Q: A recent pricing trend among retailers is EDLP, which stands for: a. electronic data laser purchasing b. efficient data long-range planning c. everyone doing large purchases d. everyday low pricing e. efficient dollar loss planning

Q: Which group is the targeted market by lifestyle centers? a. teenagers who don't drive b. consumers on a fixed income c. laggards d. upper-income consumers with an aversion for "the mall" e. people who engage in cocooning

Q: The newest generation of shopping centers is: a. regional malls b. shopping business districts c. lifestyle centers d. franchised centers e. strip malls

Q: A specialty store is considering locating a retail store in a regional shopping mall. Which of the following is NOT a likely benefit associated with a locating in a mall? a. anchors that attract customers b. ample parking c. unified image of mall d. ability to target different demographics groups e. inexpensive leases

Q: When JCPenney announced it would open a 97,000-plus square foot anchor store in the new West Grand Promenade, it meant that JCPenney would be: a. the only large store in the shopping center b. a destination store c. expected to create heavy foot traffic for the center d. in an isolated location outside the shopping center structure e. unable to control the local store's pricing policies

Q: Anchor stores (or generator stores): a. are the stores within the mall that sell services rather than products b. are often large department stores that are located at opposite ends of a mall to create a heavy pedestrian traffic flow c. usually specialize in high-priced items like furniture d. is the generic name given to supermarkets that are located within shopping malls e. is a term for retail stores that "drop off" to freestanding locations

Q: Another name for an anchor store is a _____. a. mass merchandiser b. generator store c. host store d. shopping center pillar e. destination store

Q: Maggie Moo's has decided that consumers will drive out of their way for the store's yummy ice cream offerings. The owner needs to keep his overhead costs (such as rent) low and wants to avoid locating near competitors. For a location, Maggie Moo's should open in a: a. factory outlet b. strip center c. freestanding store d. shopping center e. regional mall

Q: _____ are stores that consumers purposely plan to visit. They are often built as freestanding stores. a. Destination stores b. Benefit retailers c. Relationship builders d. Lifestyle stores e. M-stores

Q: Large retailers such as Target and Wal-Mart and sellers of shopping goods such as automobiles and furniture often use _____ for their locations. a. remote, rural locations b. office complexes c. factory outlets d. freestanding stores e. regional malls

Q: When opening a new retail operation, the retailer needs to consider all of the following factors EXCEPT: a. traffic flow b. employee density c. nature of the competition d. land costs e. area growth

Q: Banana Republic stores are usually built in shopping centers, but in a few cities the company chose to build a stand-alone store. Its freestanding store entices customers to shop because it _____. a. contains merchandise different from that offered in other Banana Republic stores b. is near a shopping center c. has greater visibility to customers than it would have in a shopping center d. is an off-price retailing operation for the store chain e. is most likely a franchise that offers lower prices than the shopping center locations

Q: Why is the selection of a retail location so critical to a store's success? a. Location affects pricing decisions but does not affect store image. b. Customers will not drive out of their way to find a store. c. A location decision ties up funds that will not appreciate or gain in value. d. A location decision typically requires long-term commitment of resources. e. Employee density is affected by the area in which the store is located.

Q: Lancme is a manufacturer of fine perfumes. It offers to share the costs (up to 5 percent of the amount of products purchased by the retailer) of advertising with any retailer that carries its line of fragrances. This is an illustration of: a. specialty promotion b. cooperative advertising c. comparative advertising d. shared advertising e. advertising advocacy

Q: Which of the following statements about a retailer's promotion strategy is true? a. The design of the promotion strategy would be done separately from the creation of the retailing mix. b. The goal of a retail store's promotion mix is to position the store in consumers' minds. c. Most advertising for retailers is carried out at the national level. d. Retailers find direct-mail marketing inefficient. e. Retail promotion strategy does not include public relations activities.

Q: The only place the Hampton Bay ceiling fans can be purchased is at The Home Depot. The Home Depot has instructed Hampton Bay on how the ceiling fans should be built. This indicates that Hampton Bay is a: a. private brand b. generic brand c. family brand d. promotional brand e. specialty brand

Q: Brands that are designed and developed using the retailer's name are called: a. signature brands b. exclusive brands c. generic brands d. private brands e. specialty brands

Q: The merchandise mix: a. is the term used for price-bundled merchandise b. is the term for the marketing communications used by retailers c. refers to the six levels in a buying organization d. describes the composition of a traditional shopping center e. is the retailer's product offering

Q: Retailers such as Target and JCPenney are responding to consumer needs by changing product mixes, hours of operation, locations, and prices. These stores are changing aspects of their: a. merchandising groupings b. retailing mixes c. product offerings d. retail trade areas e. store positioning strategies

Q: Retailers control the six Ps of the retailing mix. The six Ps include the marketing mix plus: a. personnel and presentation b. production and people c. potential and perception d. personality and persuasion e. positioning and purchasing

Q: The first task of developing a retail strategy is to: a. create a buying organization b. decide what to buy c. define the target market d. create a promotional strategy e. define the pricing policies

Q: Arby's, Jiffy-Lube, Baskin-Robbins, and Sylvan Learning Centers are examples of _____ because the franchisee buys the right to use the franchisor's approach to doing business. a. trade name franchising b. product franchising c. business format franchising d. franchise wholesaling e. logistic franchising

Q: Domino's pizza, Hyatt Corporation, and Wendy's are all examples of _____ because the franchisee buys the right to use the franchisor's approach to doing business. a. product and trade name franchisors b. redistributor franchisors c. business format franchisors d. licensed franchisors e. relationship franchisors

Q: Which form of franchising is an ongoing business relationship between a franchisor and a franchisee where the franchisor "sells" a franchisee the rights to use the franchisor's approach to doing business? a. primary franchising b. product and trade name franchising c. business format franchising d. process franchising e. service franchising

Q: A retailer in Winnsboro, Louisiana, is licensed to sell John Deere tractors. This retailer is a: a. product and trade name franchisee b. restricted franchisor c. business format franchisee d. licensed franchisor e. relationship franchisee

Q: Chattanooga Bottling Company is licensed to bottle Coca-Cola. The Chattanooga Bottling Company is an example of a: a. product and trade name franchisee b. redistributer franchisor c. business format franchisee d. licensed franchisor e. relationship franchisee

Q: Which form of franchising involves a dealer agreeing to sell certain products provided by a manufacturer or a wholesaler? a. primary franchising b. product and trade name franchising c. business format franchising d. limited franchising e. focused franchising

Q: The party in a franchise relationship that is an individual or business that is granted the right to sell another party's product is called the: a. franchisor b. franchisee c. receiver d. renter e. owner/operator

Q: Who is the originator of a trade name, product, methods of operation, and so on that grants operating rights to another party to sell its product? a. renter b. leaser c. franchisor d. franchisee e. owner/operator

Q: A(n) _____ is a continuing relationship in which an individual or business grants business rights to operate or sell a product to another individual or business. a. leasing contract b. alliance for profit c. brokered partnership d. franchise e. countertrade

Q: The Cedar Store carries a full line of cedar swings, gliders, garden benches, and tables. All of its products can be purchased through its Web site. The site has done well since the Cedar Store's products do not need to be touched or smelled before purchase. The Cedar Store is engaging in: a. online retailing b. shop-at-home networking c. mobile vending d. franchising e. electronic wholesaling

Q: _____ is a type of shopping available to consumers with access to the Internet. a. Shop-at-home networks b. Online retailing c. Franchising d. Electronic wholesaling e. Mobile vending

Q: The Mad Stencilist has decided to demonstrate how to use its products to create custom gift tags on a local cable television channel and encourage shoppers to call a toll-free number to purchase the merchandise with a credit card. This form of retailing is called a(n): a. in-store electronic shopping b. videotex c. shop-at-home network d. electronic point of sale e. catalog viewing

Q: Amy received a phone call last night during supper. The caller wanted her to attend a meeting to learn about timeshares. Since Amy had never thought of purchasing this type of product before she received the call, this is obviously an example of _____ telemarketing. a. outbound b. lead generation c. customer service d. inbound e. relationship

Q: Telemarketing can consist of either unsolicited _____ sales calls, or _____ sales calls, which allow companies to receive orders through toll-free telephone numbers. a. order placement; lead generation b. push strategy; pull strategy c. systematic; synergistic d. qualifying; finalizing e. outbound; inbound

Q: _____ is the use of a telephone to sell directly to customers. a. Telemarketing b. Two-way vending c. Teleprompting d. Indirect marketing e. Phone vending

Q: Marketers can precisely target their customers according to demographics, geographics, and psychographics with: a. direct mail b. vending machines c. franchise stores d. specialty retail outlets e. electronic selling

Q: _____ refers to the techniques used to get consumers to buy from their home. Those techniques include direct mail, catalogs and mail order, telemarketing, and electronic retailing. a. Nonstore vending b. In-home retailing c. Franchising d. Direct marketing e. Direct retailing

Q: Susan Adams makes children's clothing. She is also the sales representatives and sets up parties and fashion shows at homes of mothers to demonstrate the quality and value of her clothing. Susan is using: a. primary marketing b. automatic vending c. personal marketing d. electronic retailing e. direct retailing