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161) Timing is an important element of markdowns. Those retailers who take a markdown as
soon as sales fall off most likely are 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.
162) 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
163) 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 "move" it. Paulette
was able to purchase the dress because of
A) a negative markup.
B) a markup elimination.
C) a markdown.
D) a liquidity reduction.
E) an increase in net margin.
164) Recent research indicates that the timing of ________ might affect future sales because
frequent promotions increase consumers' ability to remember regular prices.
A) seasonal markdowns
B) original markups
C) future markups
D) maintained markups
E) markdowns
165) As part of their regular retail pricing strategy, some retailers will emphasize consistently
low prices and eliminate most markdowns, a practice referred to as
A) everyday low pricing.
B) low-margin pricing.
C) everyday fair pricing.
D) value-based pricing.
E) maintained pricing.
166) Walmart and The Home Depot emphasize consistently low prices and eliminate most
markdowns with a retail pricing strategy called
A) low-margin pricing.
B) value-based pricing.
C) everyday low pricing.
D) everyday fair pricing.
E) markdown pricing.
167) When considering the use of everyday low pricing, one should consider the impact on
________ because of EDLP's potential to affect product quality assessments.
A) competitor's promotional strategies
B) product benefits
C) convenience
D) brand name and store image
E) maintained price
168) Some retailers advocate ________ 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) a customer loyalty
B) a value emphasis
C) an everyday low pricing
D) a low-margin
E) an everyday fair pricing
169) 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
170) 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
171) Which of the following statements regarding retail pricing is most accurate?
A) Consumers are unable to 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 ambience than its prices.
C) Stores that offer rebates with long processing times may create negative consumer
perceptions.
D) New technology has almost made shoplifting a thing of the past.
E) The only difference between everyday low pricing and everyday fair pricing is whether the
store uses markups.
172) Off-price retailing refers to the
A) differences between the final selling price and the retailer's cost.
B) sale of brand name merchandise at lower than regular prices.
C) sale 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.
173) The selling of brand name merchandise at lower than regular prices is referred to as
A) discount pricing.
B) everyday low price.
C) markdown pricing.
D) off-price retailing.
E) loss-price leader.
174) 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) that 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 less of a markup
D) at various price points; at the lowest price points possible
E) that are part of a retailing cooperative; that are part of a wholesaling cooperative
175) Merchants such as Burlington and T.J.Maxx sell brand-name merchandise at lower than
regular prices using
A) an off-price retailing strategy.
B) a markdown pricing strategy.
C) an everyday fair pricing strategy.
D) an everyday low pricing strategy.
E) a maintained markdown pricing strategy.
176) Ross Stores, where prices are low but selection is unpredictable, uses ________ pricing
practice.
A) a markdown
B) a maintained markup
C) a gross margin
D) a manufactured suggested retail
E) an off-price retail
177) A variation of off-price retailing is
A) discount wholesalers.
B) warehouse clubs.
C) discount retailers.
D) supercenters.
E) hypermarkets.
178) Off 5th sells discounted merchandise from Saks Fifth Avenue. This retailer is an example of
A) a hypermarket.
B) a markdown store.
C) an outlet store.
D) a category killer.
E) a warehouse club.
179) Most stores today are near several others in one of several settings that include all of the
following except which?
A) the regional shopping center
B) the strip mall
C) the old-town district
D) the central business district
E) the power center
180) 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.
181) A 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 5- to 10-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.
182) 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 square.
D) the economic center.
E) the historic commerce district.
183) Consumers often view central business district shopping as less convenient because of the
lack of parking, higher crime rates, and
A) outdated stores.
B) a lack of ambience.
C) fewer quality restaurants.
D) few public restrooms.
E) exposure to the weather.
184) A regional shopping center refers to a
A) 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 serves people who are within a 5- to 10-minute drive and serves a
population base of under 30,000.
D) group of 50 to 150 stores that typically attracts customers who live or work within a 5- to 10-
mile range, often containing two or three anchor stores.
E) retail cluster of stores in uptown areas.
185) A group of 50 to 150 stores that typically attract customers who live or work within a 5- to
10-mile range, often containing two or three anchor stores, is referred to as
A) a power center.
B) a regional shopping center.
C) a strip mall.
D) a central business district.
E) an urban megacenter.
186) Large shopping areas often contain two or three ________ stores, which are well-known
national or regional stores such as Nordstrom, Saks Fifth Avenue, and Bloomingdale's.
A) power
B) mega
C) anchor
D) value
E) outlet
187) Which of the following stores are most likely to be anchor stores at a regional shopping
center?
A) Old Navy, Abercrombie & Fitch, and Kay-Bee toy store
B) Hickory Farms, a locally owned jewelry store, and McDonald's
C) an antique store, Dollar General, and a bakery
D) Dick's Sporting Goods, Macy's, and JC Penney
E) a Hallmark shop, a sporting goods consignment store, and a Barnes & Noble bookstore
188) The West Edmonton Mall in Alberta, Canada, is a conglomerate of more than 800 stores,
the world's largest indoor amusement park, more than 100 restaurants, a movie complex, and two
hotels. This retail complex is the largest example of
A) a regional shopping center.
B) an urban microcenter.
C) a megaplex.
D) a hypermarket.
E) a supercenter.
189) A cluster of neighborhood stores, whose composition is typically unplanned and serves
people who are within a 5- to 10-minute drive is referred to as a
A) suburban shopping mall.
B) strip mall.
C) mini-mart.
D) hypomarket.
E) central business district.
190) A strip mall is a
A) suburban mall containing up to 100 stores that draws customer from a 5- to 10-mile radius.
B) cluster of stores in a downtown area.
C) retail location that typically has one primary store (usually a department store branch) with 20
to 40 smaller outlets serving a population of consumers who are within a 10- to 20-minute drive.
D) cluster of neighborhood stores designed to serve people within a 5- to 10-minute drive.
E) collection of category killers usually located outside a major amusement park or attraction.
191) Many neighborhoods have clusters of retail stores, referred to as a strip mall, to serve
people who are within a 5- to 10-minute drive. Unlike the larger shopping centers, the
composition of these stores usually
A) is unplanned.
B) includes national anchor stores.
C) is restricted to privately owned specialty stores.
D) is mainly fast-food restaurants.
E) includes amusement or theme parks, or movie theaters.
192) A huge shopping strip with multiple anchor (or national) stores is referred to as a
A) central business district.
B) regional shopping center.
C) community shopping center.
D) strip mall.
E) power center.
193) Combining the convenient location of a strip mall with the influential draw of national
stores results in shopping areas known as
A) suburban malls.
B) warehouse malls.
C) power centers.
D) retail malls.
E) cluster malls.
194) ________ retailers utilize and integrate a combination of traditional store formats and
nonstore formats.
A) Progressive
B) Opportunistic
C) Multichannel
D) Cluster
E) Power
195) Multichannel retailers are retailers that
A) sell different products through entirely different channels.
B) sell through different channels under different brand names.
C) utilize strategic and tactical wholesalers.
D) utilize and integrate a combination of traditional store formats and nonstore formats.
E) combine two channels for their offerings: one for products and the other for services.
196) Retailers like Williams-Sonoma that sell products through retail stores, catalogs, and online
are examples of
A) intertype competitors.
B) multichannel retailers.
C) vertically-integrated retailers.
D) scrambled merchandisers.
E) dual distributors.
197) Texas-based Whole Foods supermarkets target people who want to eat healthy. The stores
use placards throughout, which tell shoppers about the farmers who grew and harvested the
various products sold. This use of signage to provide consumer information is a part of which
element of the retailing mix?
A) communication
B) pricing
C) merchandise
D) goods and services factor
E) location
198) Loblaws, a Canadian supermarket, features fruits and vegetables piled high on tables that
have umbrellas. The idea behind this arrangement was to give Loblaws "a market feel." In terms
of the retailing mix, this tactic is related to
A) pricing.
B) goods and services factor.
C) communication.
D) merchandise.
E) location.
199) In the late 1950s, Pierre Martineau described ________ as "the way in which the store is
defined in the shopper's mind."
A) size
B) location
C) product mix
D) image
E) anchor store
200) Price ranges, store layouts, and breadth and depth of merchandise lines are considered to be
the ________ of a store's image.
A) functional qualities
B) sociological qualities
C) psychological attributes
D) lifestyle attributes
E) atmospheric elements
