45) Private-label brands are also called
A) personal brands.
B) store brands.
C) faith brands.
D) umbrella brands.
E) individual brands.
46) Kola is a chain of supermarkets across the country. Kola’s sales staff treat their customers very
well, which in turn creates great customer satisfaction. Which of the following is most likely to be
the sustainable competitive advantage of Kola?
A) Unique merchandise
B) Ethical business practices
C) Customer service
D) Location
E) Price
47) Which of the following is an opportunity for retailers to develop a sustainable competitive
advantage?
A) Reduced prices
B) Deeper assortment
C) Longer hours of operation
D) Good customer service
E) Coupons
48) Customer relationship management programs are also known as
A) transitional programs.
B) sustaining programs.
C) twelve-step programs.
D) incentive programs.
E) loyalty programs.
49) Which of the following is a suggested method for improving the efficiency of internal
operations?
A) Unique merchandise
B) Customer service
C) Human resource management
D) Brand image
E) Building a retail community using social media
50) Developing programs to motivate and coordinate employee efforts, providing incentives,
fostering a positive organizational culture, and managing diversity are functions of the
A) human resource management.
B) district management.
C) general store manager.
D) chief executive officer.
E) marketing manager.
51) Which of the following is an advantage of the use of sophisticated distribution and information
systems?
A) It creates a positive image of the brand in the minds of the consumers.
B) It offers an opportunity for the retailer to reduce operating costs.
C) It helps an organization to attain cultural diversity within its workforce.
D) It helps an organization to monitor the productivity of its entire workforce.
E) It helps an organization to monitor the movements of its employees.
52) Sam loves shopping. She frequently goes window shopping in the city. During times of need,
she visits the nearest supermarket even though she loathes going there. Which of the following is
most likely to be the reason why Sam shops in the supermarket?
A) Unique merchandise
B) Brand image
C) Customer service
D) Location
E) Price
53) The best way for a retailer to develop a sustainable competitive advantage is to
A) concentrate on finding the best location.
B) concentrate on having the lowest prices in town.
C) develop a good distribution system.
D) rely on multiple approaches.
E) maintain good vendor relations.
54) A ________ is a growth opportunity directed toward existing customers using the retailer’s
present retailing format.
A) market expansion growth opportunity
B) market penetration growth opportunity
C) retail format development growth opportunity
D) wholesale format development growth opportunity
E) diversification growth opportunity
55) Walgreens has had rapid growth in their store openings. Many times, they have stores within
just a few blocks of each other. This is an example of Walgreens practicing
A) retail format development.
B) diversification growth.
C) market penetration.
D) market expansion.
E) market divestment.
56) A bagel shop that decides to open up an hour earlier every morning is taking advantage of a
________ opportunity.
A) market penetration
B) diversification
C) retail format development
D) market depletion
E) market divestment
57) Bine Lane is a fabric store that sells only cotton clothing. After a situation analysis, the
marketing team of Bine Lane wants its current customers to visit and purchase from the store more
frequently. Which of the following growth strategies should Bine Lane follow to achieve its
objective?
A) Wholesale format development growth opportunity
B) Market expansion growth opportunity
C) Retail format development growth opportunity
D) Diversification growth opportunity
E) Market penetration growth opportunity
58) Which of the following is an example of a market penetration growth opportunity?
A) Opening new stores in new geographical markets
B) Changing the brand name to appeal to newer market segments
C) Keeping existing stores open for longer hours
D) Opening new stores to cater to a different demographic segment
E) Changing the brand name in new geographical markets
59) Cross-selling is most commonly practiced with the
A) wholesale format development growth opportunity.
B) market expansion growth opportunity.
C) retail format development growth opportunity.
D) diversification growth opportunity.
E) market penetration growth opportunity.
60) A ________ involves using the retailer’s existing retail format in new market segments.
A) market expansion growth opportunity
B) market penetration growth opportunity
C) diversification growth opportunity
D) wholesale format development growth opportunity
E) retail format growth opportunity
61) Alvo’s, a producer of candy, has decided to expand its operations geographically. Which of the
following strategies should Alvo’s use to achieve its objective?
A) Retail format growth opportunity
B) Market penetration growth opportunity
C) Diversification growth opportunity
D) Market expansion growth opportunity
E) Wholesale format development growth opportunity
62) When Home Movies Inc. opened stores in other countries, it increased the company’s
international market share. Home Movies took advantage of a ________ opportunity.
A) diversification
B) market expansion
C) market divestment
D) retail format development
E) market penetration
63) Which of the following is an example of a market expansion growth opportunity?
A) Displaying merchandise to increase impulse purchases
B) Opening new stores in new geographic markets
C) Opening more stores in the same market
D) Keeping existing stores open for long hours
E) Engaging in cross-selling
64) A ________ is an opportunity in which a retailer develops a new retail mix for the same target
market.
A) retail format development growth opportunity
B) market penetration growth opportunity
C) diversification growth opportunity
D) market expansion growth opportunity
E) wholesale format development growth opportunity
65) Ashton, a chain of supermarkets, intends to change its pricing policy and promotional mix but
intends on catering to the same market segment. Which of the following growth strategies will best
suit Ashton LLC?
A) Market penetration growth opportunity
B) Market expansion growth opportunity
C) Retail format growth opportunity
D) Diversification growth opportunity
E) Wholesale format growth opportunity
66) When Nordstrom department stores launched a website to sell its merchandise to its present
customers; it took advantage of a ________ opportunity.
A) diversification
B) market format investment
C) market expansion
D) market penetration
E) retail format development
67) A ________ is one in which a retailer introduces a new retail format directed toward a market
segment that’s not currently served by the retailer.
A) retail format growth opportunity
B) market penetration growth opportunity
C) diversification growth opportunity
D) market expansion growth opportunity
E) wholesale format development growth opportunity
68) Krueger Burgers, a chain of restaurants, intends to change its pricing policy and promotional
mix to cater to a new market segment. Which of the following growth strategies will best suit
Krueger Burgers?
A) Market penetration growth opportunity
B) Market expansion growth opportunity
C) Retail format growth opportunity
D) Diversification growth opportunity
E) Wholesale format growth opportunity
69) In a related diversification growth opportunity,
A) the retailer’s present target market and retail format share nothing in common with the new
opportunity.
B) the retailer’s future target market and retail format share nothing in common with a missed
opportunity.
C) the retailer’s past target market and retail format share nothing in common with a missed
opportunity.
D) the retailer’s future target market and retail format share something in common with a missed
opportunity.
E) the retailer’s present target market and retail format share something in common with the new
opportunity.
70) Which of the following is an example of related diversification?
A) Purchasing from different vendors
B) Operating in similar locations
C) Targeting another market segment
D) Using a newer medium for advertising
E) Developing a management information system
71) An unrelated diversification growth opportunity
A) has a lot in common between the retailer’s present business and the new growth opportunity.
B) is less risky compared to a related growth opportunity.
C) is less effective compared to a related growth opportunity.
D) is less expensive compared to related growth opportunity.
E) has little commonality between the retailer’s present business and the new growth opportunity.
72) Which of the following is an example of unrelated diversification?
A) Operating in similar locations
B) Creating a new management information system
C) Using the same distribution
D) Advertising in the same newspapers
E) Purchasing from the same vendors
73) Which of the following statements is true of vertical integration?
A) It is the diversification by retailers into manufacturing.
B) It is the diversification by wholesalers into retailing.
C) It is the diversification by manufacturers into marketing.
D) It is the diversification by supply chain management into marketing.
E) It is the diversification by marketing into manufacturing.
74) Jose runs a gallery that specializes in neon art with an emphasis on vacation icons like
flamingos, dolphins, and palm trees. Since demand was high and supplies were low, he decided to
buy an old warehouse and then hire craftspeople to work there in order to produce the art. He
would provide them with all of the supplies they needed, and he would be their only customer. Jose
engaged in
A) horizontal integration.
B) market expansion.
C) co-operative buying.
D) market penetration.
E) vertical integration.
75) Designing private-label merchandise is a(n) ________ because it builds on the retailer’s
knowledge of its customers.
A) unrelated diversification growth opportunity
B) market expansion growth opportunity
C) related diversification growth opportunity
D) market penetration growth opportunity
E) retail format development growth opportunity
76) Which of the following retail growth strategies has the greatest chance for succeeding?
A) Related diversification growth opportunity
B) Market penetration growth opportunity
C) Market expansion growth opportunity
D) Retail format development growth opportunity
E) Unrelated diversification growth opportunity
77) Retailers have the least opportunity to exploit a competitive advantage when they pursue
A) retail format growth opportunities.
B) market penetration growth opportunities.
C) diversification growth opportunities.
D) market expansion growth opportunities.
E) wholesale format development growth opportunities.
78) The emerging international markets that receive the most attention from global retailers are
collectively referred to as the ________ nations.
A) Asian Tigers
B) Next Eleven
C) MIKT
D) CIVETS
E) BRIC
79) Which of the following statements is true of the challenges faced by organized retailing in
India?
A) The cost of setting up facilities is significantly high.
B) The ever-increasing operating costs.
C) Government impedes foreign investment in retailing.
D) The supply chain is underdeveloped and inefficient.
E) Managerial talent is becoming more difficult to find and retain.
80) Which of the following statements is true of the challenges faced by organized retailing in
China?
A) Government impedes foreign investment in retailing.
B) Stringent regulations on profit margins discourage capitalism.
C) An unstable political scenario increases the risk associated with direct investments.
D) Managerial talent is becoming more difficult to find and retain.
E) Retailers cannot rely on domestic products as their quality is low.
81) Which of the following statements is true of the challenges faced by organized retailing in
Russia?
A) Retailers cannot rely on domestic products as their quality is low.
B) Government impedes foreign investment in retailing.
C) Managerial talent is becoming more difficult to find and retain.
D) Stringent regulations on profit margins discourage capitalism.
E) An unstable political scenario increases the risk associated with direct investments.
82) Mindy’s, a fashion brand, has a significant cost benefit that facilitates success in international
markets in which price plays an important role in consumer decision making. Which of the
following is most likely a reason for Mindy’s success in international markets?
A) A global culture
B) Adaptability
C) Human resources
D) Financial resources
E) Globally sustainable competitive advantage
83) Papa Bean, a global chain of pizzerias, has operations in more than 80 countries around the
world. Its menu varies considerably in different countries, assimilating minute details from the
local culture to add to its truly global flavor. Which of the following is most likely a reason for the
success of Papa Bean in international markets?
A) A global culture
B) Adaptability
C) Human resources
D) Financial resources
E) Rigidity
84) Fresh Foods, a chain of international supermarkets, has operations in 20 countries around the
world. Fresh Foods always encourages the rapid development of local management and retains
few expatriates in its overseas operations. Fresh Foods’ management ranks are truly international.
Which of the following is most likely a reason for the success of Fresh Foods in international
markets?
A) A global culture
B) Adaptability
C) Capital assets
D) Financial resources
E) Rigidity