44) When a firm’s leaders adopt a conscious marketing approach
A) the resulting corporate culture stays in accordance with the leaders’ ideals.
B) the firm engages in activities that provide a short-term financial benefit.
C) the resulting corporate culture emphasizes making a profit.
D) a group of employees is selected to focus on corporate social responsibility.
E) the majority of stakeholders are not affected.
45) Which of the following is an example of a decision that involves business ethics?
A) A retailer decides to close a location where sales have decreased.
B) A retailer decides to start a customer loyalty program.
C) A retailer decides to use a celebrity in an advertising campaign.
D) A retailer decides to have its salespeople adopt a high-pressure sales approach when dealing
with all customers.
E) A retailer decides to manage its own distribution center.
46) Prime Industries Inc. is a large company producing a wide range of chemicals. It decides to
focus on making its products more environmentally friendly. This is an example of
A) vertical integration.
B) providing assortments.
C) wholesaling.
D) conscious marketing.
E) a supply chain.
47) Which of the following is true of retailing activities in the bottom of the pyramid (BoP)
market?
A) Retrofitting business models used in the more developed markets has proven successful.
B) Most people in BoP markets live in rural areas with limited access to mass media.
C) The ideas used in BoP retail marketing are similar to conventional retailing strategies.
D) High local demand results in low prices for consumer goods.
E) Firms are not motivated to enter the BoP market.
48) ________ are the most concentrated sector of the retail industry in the U.S.
A) Fitness centers
B) Drugstore chains
C) Apparel stores
D) Home improvement centers
E) Food and beverage services
49) Retailers use customer transaction data to do all of the following except
A) identify their best customers.
B) match the needs of a store’s local market.
C) create customized promotions.
D) tailor product assortments.
E) identify political party preferences.
50) Students often view retailing as part of marketing because
A) retailing does not involve traditional business activities.
B) retailing involves the management of distribution systems.
C) retailing requires only people with expertise in marketing.
D) activities in retailing are confined to advertising and promotion.
E) retailers are not part of the supply chain.
51) Which of the following is true of the career opportunities offered by the retailing industry?
A) Retailers employ people with exclusive expertise in supply chain management.
B) Retail managers are often given considerable responsibility early in their careers.
C) Retailing offers limited opportunities for entrepreneurs.
D) Retail management is not a very lucrative career path.
E) People with a marketing background have limited opportunities in the retail industry.
52) The competition between the same type of retailers is called
A) intertype competition.
B) indirect competition.
C) intratype competition.
D) scrambled merchandising.
E) intrinsic competition.
53) Daily Needs and Smart Saves are two large retailers in Canada. They compete with each other
using similar marketing strategies. Which form of competition is seen between these two retailers?
A) Intertype competition
B) Indirect competition
C) Intratype competition
D) Scrambled merchandising
E) Intrinsic competition
54) When Austin saw pastries and coffee being sold at his local bookstore, he knew it was an
example of
A) scrambled merchandising.
B) intertype competition.
C) product diversification.
D) channel conflict.
E) vertical differentiation.
55) Karen’s is a popular clothing store in Boston. The store recently started selling designer
watches. Thus, Karen’s is practicing
A) channel expansion.
B) intertype competition.
C) product diversification.
D) scrambled merchandising.
E) vertical differentiation.
56) The offering of merchandise not typically associated with the store type is called
A) scrambled merchandising.
B) intratype competition.
C) product diversification.
D) channel diversification.
E) vertical differentiation.
57) Which of the following is the first step in the retail management decision process?
A) Developing the retail communication mix
B) Buying merchandise
C) Developing a retail marketing strategy
D) Understanding the world of retailing
E) Customer relationship management
58) ________ form a part of the microenvironment that influences retail management decisions.
A) Competitors
B) Technologies
C) Politics
D) Legal aspects
E) Ethics
59) A retailer’s primary competitors are other retailers that
A) are more vertically integrated.
B) use the same type of store format.
C) have the same target market.
D) sell online.
E) scramble merchandise.
60) Scrambled merchandising increases
A) vertical integration.
B) intertype competition.
C) concentric diversification.
D) horizontal integration.
E) intratype competition.
61) Which of the following is not an example of intertype competition?
A) A supermarket and a fresh flower stand
B) A coffee shop and a fast food restaurant
C) A supercenter and a pharmacy
D) An American Eagle store and a Macy’s store
E) A Target store and a Walmart store
62) Darius Foods Inc. and Winston Foods and Beverages Inc. are competitors selling frozen meals.
Darius sells its products through a large number of local convenience stores, while Winston sells
its frozen meals through delis. Which form of competition is seen between these two firms?
A) Intertype competition
B) Indirect competition
C) Intratype competition
D) Scrambled merchandising
E) Intrinsic competition
63) Increasing intertype competition has made it harder for retailers to identify their
A) competition.
B) target market.
C) merchandise mix.
D) retail mix.
E) price points.
64) The intensity of competition is greatest among retailers when
A) price dominates the retail mix.
B) their retail offerings are considered to be similar.
C) they resort to scrambled merchandising.
D) they focus on a narrow demographic trend.
E) they offer a limited range of products and services.
65) A ________ refers to the market toward which a retailer will direct its efforts.
A) channel member
B) market segment
C) target market
D) mass market
E) warm market