Question 1

What type of store is TJ Maxx considered to be?

Accepted Answer

A)   Off-price retailer
B)   Department store
C)   Full-line discount store
D)   Extreme-value retailer
E)   Specialty retailer

Question 2

The Men's Wearhouse stocks over 350 different styles and colors of ties. This assortment of ties can be referred to as the store's

Accepted Answer

A)   consignment merchandise.
B)   closeouts.
C)   breadth of merchandise.
D)   power perimeter.
E)   depth of merchandise.

Question 3

The area around the outer walls of a supermarket that stock fresh-merchandise categories such as dairy, bakery, meat, produce, etc. is referred to as the

Accepted Answer

A)   power perimeter.
B)   convenience rack.
C)   closeouts.
D)   irregulars.
E)   supercenters.

Question 4

Describe the four important differences in the nature of the offerings provided by services and merchandise retailers.

Accepted Answer

Four important differences in the nature...

Question 5

Which of the following is a second-tier department store?

Accepted Answer

A)   Macy's
B)   Neiman Marcus
C)   TJ Maxx
D)   Nordstrom
E)   Saks Fifth Avenue

Question 6

Supermarkets gain higher profit margins from private-label merchandise than national brands.

Accepted Answer

A) True 
 B)False

Question 7

Which of the following is True of single-store retailers?

Accepted Answer

A)   They do not have direct contact with their customers.
B)   They are not bound by the bureaucracies inherent in large retail organizations.
C)   They are totally independent of their owner-managers' capabilities to make any retail decision.
D)   They must join a wholesale-sponsored voluntary competitive group to compete against corporate chains.
E)   They are very rigid and lack quick adaptability to market changes and customer needs.

Question 8

Why are category specialists sometimes called category killers?

Accepted Answer

A)   They are often located close to full-line discount stores and discount stores that offer a deep assortment of merchandise.
B)   They are located at stand-alone sites.
C)   They have a broad merchandise mix and shallow assortment.
D)   They can dominate a category of merchandise making it difficult for other retailers to compete.
E)   They carry mainly technologically obsolete merchandise.

Question 9

To respond to a competitive environment, one thing that Walmart is doing is

Accepted Answer

A)   converting its discount stores into supercenters.
B)   leasing retail space in its stores to independent merchants.
C)   focusing on high customer service.
D)   converting the discount stores into convenience stores.
E)   expanding into rural locations.

Question 10

What is franchising? What does a franchisor offer its franchisees to get the franchisees off to a good start?

Accepted Answer

Franchising is a contractual agreement i...

Question 11

How are department stores categorized into tiers? How do the tiers differ? Give examples of each tier.

Accepted Answer

Department store chains are categorized ...

Question 12

Best Buy is a category specialist for the electronics industry. This means the stores

Accepted Answer

A)   offer their customers narrow breadth and depth of merchandise.
B)   sell only their own private-label brands.
C)   have excellent after-sales customer service.
D)   avoid a self-service approach.
E)   offer a narrow but deep assortment of merchandise.

Question 13

Which of the following statements is True of department stores?

Accepted Answer

A)   They are usually located in local neighborhoods rather than large regional malls.
B)   They often resemble a collection of specialty shops.
C)   They can be categorized into two tiers.
D)   They focus almost exclusively on hard goods.
E)   They offer a limited variety and shallow assortment of merchandise.

Question 14

Private-label brands are also called

Accepted Answer

A)   closeouts.
B)   category killers.
C)   irregulars.
D)   inclusive brands.
E)   store brands.

Question 15

With respect to retailing, which of the following best defines assortment of merchandise?

Accepted Answer

A)   Each different item of merchandise offered by a retailer
B)   The number of different items offered in a merchandise category
C)   The number of merchandise categories a retailer offers
D)   Merchandise with minor mistakes in construction
E)   End-of-season merchandise that will not be used in following seasons

Question 16

The most basic characteristic used to describe the different types of retailers is their retail mix, or the elements retailers use to satisfy their customers' needs.

Accepted Answer

A) True 
 B)False

Question 17

Which of the following differentiates a hypermarket from a supercenter?

Accepted Answer

A)   Hypermarkets do not offer self-service facilities, whereas supercenters offer self-service facilities to their customers.
B)   Hypermarkets carry a larger proportion of food items, whereas supercenters carry a larger portion of nonfood items.
C)   Hypermarkets have a greater emphasis on dry groceries, whereas supercenters have a greater emphasis on perishables.
D)   Hypermarkets are very common in the United States, whereas supercenters are not common in the United States.
E)   Hypermarkets provide large parking facilities to its customers, whereas supercenters do not provide parking facilities to their customers.

Question 18

A dermatologist has her diplomas prominently displayed above her large desk, which sits on a Persian rug in an office filled with tasteful, yet expensive furnishings. Which of the following service characteristics is the doctor trying to handle with her office décor?

Accepted Answer

A)   Intangibility
B)   Perishability
C)   Inconsistency
D)   Consumability
E)   Compatibility

Question 19

Explain the strategies that limited-assortment supermarkets (extreme-value food retailers) use in order to provide customers with high-quality merchandise at low prices to compete against other food retailing formats.

Accepted Answer

Limited-assortment supermarkets only sto...

Question 20

Which of the following statements is True about specialty stores?

Accepted Answer

A)   They tailor their retail strategy toward very specific market segments.
B)   They group products by brand instead of product category like in department stores.
C)   They offer very shallow and narrow assortments.
D)   They completely avoid including their own private-label brands in the store.
E)   They discourage sampling.

Exam 2: Types of Retailers

Which of the following differentiates a hypermarket from a supercenter?

Correct AnswerverifiedShow Answer

With respect to retailing, which of the following best defines assortment of merchandise?

Correct AnswerverifiedShow Answer

The most basic characteristic used to describe the different types of retailers is their retail mix, or the elements retailers use to satisfy their customers' needs.

Correct AnswerverifiedShow Answer

What type of store is TJ Maxx considered to be?

Correct AnswerverifiedShow Answer

Which of the following is True of single-store retailers?

Correct AnswerverifiedShow Answer

Which of the following statements is True about specialty stores?

Correct AnswerverifiedShow Answer

To respond to a competitive environment, one thing that Walmart is doing is

Correct AnswerverifiedShow Answer

Why are category specialists sometimes called category killers?

Correct AnswerverifiedShow Answer

Supermarkets gain higher profit margins from private-label merchandise than national brands.

Correct AnswerverifiedShow Answer

The area around the outer walls of a supermarket that stock fresh-merchandise categories such as dairy, bakery, meat, produce, etc. is referred to as the

Correct AnswerverifiedShow Answer

How are department stores categorized into tiers? How do the tiers differ? Give examples of each tier.

Correct AnswerverifiedDepartment store chains are categorized ...View AnswerShow Answer

Describe the four important differences in the nature of the offerings provided by services and merchandise retailers.

Correct AnswerverifiedFour important differences in the nature...View AnswerShow Answer

Private-label brands are also called

Correct AnswerverifiedShow Answer

A dermatologist has her diplomas prominently displayed above her large desk, which sits on a Persian rug in an office filled with tasteful, yet expensive furnishings. Which of the following service characteristics is the doctor trying to handle with her office décor?

Correct AnswerverifiedShow Answer

The Men's Wearhouse stocks over 350 different styles and colors of ties. This assortment of ties can be referred to as the store's

Correct AnswerverifiedShow Answer

Explain the strategies that limited-assortment supermarkets (extreme-value food retailers) use in order to provide customers with high-quality merchandise at low prices to compete against other food retailing formats.

Correct AnswerverifiedLimited-assortment supermarkets only sto...View AnswerShow Answer

Which of the following statements is True of department stores?

Correct AnswerverifiedShow Answer

Best Buy is a category specialist for the electronics industry. This means the stores

Correct AnswerverifiedShow Answer

What is franchising? What does a franchisor offer its franchisees to get the franchisees off to a good start?

Correct AnswerverifiedFranchising is a contractual agreement i...View AnswerShow Answer

Which of the following is a second-tier department store?

Correct AnswerverifiedShow Answer

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Department store chains are categorized ...
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Four important differences in the nature...
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Limited-assortment supermarkets only sto...
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Franchising is a contractual agreement i...
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Correct Answer
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