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77. When a retailer decides to offer gift wrapping, product assembly, and registries, they are considering the
elements of their:
a. merchandising strategy.
b. customer service strategy.
c. promotional strategy.
d. pricing strategy.
78. Hollister stores are easy to find in shopping malls as they have a “beach hut” at the entrance to their store.
This is an example of:
a. merchandising strategy.
b. promotional strategy.
c. location/distribution strategy.
d. store atmospherics.
79. Retailers, when classified on the basis of form of ownership, are grouped as:
a. wholesalers and service providers.
b. convenience, shopping, and specialty retailers.
c. chain stores and independent retailers.
d. limited-line and general merchandise retailers.
80. Retailers can project their personalities through their ______.
a. pricing strategy
b. customer service strategy
c. atmospherics
d. merchandising strategy
81. A store’s exterior appearance, including architectural design, window displays, signs, and entryways:
a. exerts no influence on the retailer’s image.
b. exerts a major influence on the pricing of the goods sold by the store.
c. helps identify the retailer and attract its target market.
d. indicates the range and assortment of product lines it offers.
82. If categorizing by services provided, Banana Republic stores would be classified as:
a. a full-service retailer.
b. a shopping store.
c. a chain store.
d. a convenience retailer.
83. One consideration of a retailer’s ______ strategy is that it must consider the preferences and needs of its
previously defined target market.
a. location/distribution
b. merchandising
c. pricing
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d. customer service
84. A retailer seeks to communicate information about its stores through its ______ strategy.
a. merchandising
b. location/distribution
c. promotional
d. store atmospherics
85. A department store is a series of _____ stores under one roof.
a. full-service
b. convenience
c. shopping
d. specialty
86. REI stores feature climbing walls, mountain bike test tracks, and Gore-Tex rain rooms for trying out Gore-
Tex rainwear. These features are part of REI’s:
a. store atmospherics.
b. merchandising strategy.
c. customer service strategy.
d. promotional strategy.
87. Eddie Bauer has physical retail stores as well as an e-commerce and catalog mailed to consumers on a
regular basis. Eddie Bauer utilizes:
a. direct selling.
b. direct response retailing.
c. online retailing.
d. automatic merchandising.
88. Fastenal was one of the first business-to-business suppliers to offer vending machines or kiosks in
manufacturing facilities to enable their customers’ employees to “purchase” supplies such as gloves and safety
equipment including goggles, ear protection, and masks. This innovation enabled the customers to track their
purchases and hold employees accountable for using supplies. This is an example of:
a. automatic merchandising.
b. telemarketing.
c. direct-response retailing.
d. direct mail.
89. The best definition for retailing is:
a. determining which items will be offered for sale in a store.
b. deciding store atmospherics, store hours, and product selections for brick-and-mortar stores.
c. the activities involved in selling merchandise to consumers.
d. the distribution of goods from manufacturers to stores.
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90. General product categories, specific product lines, specific products within lines, and the depth and width of
its assortment are factors considered by retailers while developing their:
a. product liability strategy.
b. interactive marketing policy.
c. customer service program.
d. merchandising strategy.
91. Which of the following statements is most likely to be true about a convenience retailer?
a. It offers huge selections and low prices in single product lines.
b. It appeals to customers by having an accessible location, rapid checkout, extended store hours, and
adequate parking.
c. It combines carefully defined product lines, services, and reputations in attempts to persuade consumers
to expend considerable effort to shop at their stores.
d. It offers a complete array of services to its customers.
92. Which of the following is one of the fundamental steps in the marketing strategy process on which a retailer
bases its key decisions?
a. Selecting a target market
b. Stipulating a minimum profit margin
c. Determining the store location and atmosphere
d. Determining the method of inventory management
93. _____ represent the distribution channel to most consumers because of their direct contact with the ultimate
consumers.
a. Wholesalers
b. Retailers
c. Manufacturers
d. Selling agents
94. LensCrafters focuses on fashion-oriented merchandise, backed by a complete array of customer services.
Hence, LensCrafters can be regarded as a:
a. self-selection retailer.
b. full-service retailer.
c. self-service retailer.
d. partial-assistance retailer.
95. When considering their location/distribution strategy, retailers must consider all of the following except:
a. the location’s exterior appearance.
b. the cost to rent or build a location.
c. the type of products sold.
d. convenience for customers.
Indicate one or more answer choices that best complete the statement or answer the question.
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96. Which of the following statements about retailing in the United States are true?
a. Consumers make more than half of their purchases online.
b. The largest retailers also have the largest e-commerce presence.
c. Shoppers browse and compare products online but make most purchases in brick-and-mortar locations.
d. The number of consumers that shop online is expected to grow each year.
97. Retailers often influence consumers’ images of products because:
a. consumers do not pay attention to manufacturer advertisements.
b. consumers have little contact with manufacturers and wholesaling intermediaries.
c. retailers determine locations, store layouts, merchandise selections, and return policies.
d. retailers play an important role in determining what products manufacturers produce and sell.
98. You are worried about adding too high a markup to the watches you sell at your jewelry store. To reduce this markup
and still cover costs, you will focus on:
a. increasing inventory turnover rate.
b. decreasing inventory turnover rate.
c. reducing the number of retail services you perform.
d. increasing the number of retail services you perform.
e. carefully judging the price that consumers are willing to pay for your jewelry.
99. In selecting the target market for your gourmet tea store, you were influenced by multiple factors. These included:
a. the number of people who appreciate and will go out of their way to buy gourmet tea.
b. how much profit you can make by selling to gourmet tea enthusiasts.
c. how stiff the competition will be from other tea merchants or sellers of substitute products.
d. FDA standards for tea safety.
e. All of the above.
100. What is online retailing? How has the Internet enhanced the functions of the direct marketers?
101. How are retailers classified on the basis of form of ownership? Explain the advantages of each type of
ownership.
102. How do retailers develop a marketing strategy?
103. How do retailers select target markets?
104. How are retailers classified on the basis of services provided? Give an example for each group.
105. Explain how store atmospherics help retailers to attract customers.
106. What is retailing? Why is retailing an essential part of the marketing channel?
107. Discuss the pricing strategies used by retailers to attract consumers.
108. Discuss the different types of direct marketing.
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Answer Key
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