b.
lead generation
c.
customer service
d.
inbound
e.
relationship
63. 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
64. _____ 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
65. 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
66. 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
67. 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
68. 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
69. 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
70. 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
71. 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
72. 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
73. 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
74. 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
75. 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
76. 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
77. 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
78. 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
79. 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
80. 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
81. 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.
82. Lancôme 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
83. 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.
84. 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
85. 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
86. 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
87. _____ 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
88. 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
89. Another name for an anchor store is a _____.
a.
mass merchandiser
b.
generator store
c.
host store
d.
shopping center pillar
e.
destination store
90. 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
91. 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
92. 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
93. The newest generation of shopping centers is:
a.
regional malls
b.
shopping business districts
c.
lifestyle centers
d.
franchised centers
e.
strip malls
94. 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
95. 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
96. 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
97. 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
98. 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
99. 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
100. 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
101. 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
102. 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
103. 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
104. 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
105. 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
106. 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
107. 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