1.Why is it advantageous for retailers to be vertically integrated?

A.Customers prefer retailers who are vertically integrated.

B.Retailers have realized that to stay competitive, they must become vertically integrated.

C.Retailers have the greatest control over its supply chain.

D.Retailers can expand their services easily to the Internet because they can direct orders to the manufacturer.

2.How can a service retailer best cope with the problems associated with the inconsistency of service?

A.Emphasize quality control

B.Increase staffing at peak demand times

C.Train and motivate employees

D.Use low prices during off-seasons to help match supply and demand

3.In a franchise contract, the franchisee pays the franchisor a

A.commission on all sales.

B.bonus if the sales quota is achieved.

C.start-up costs plus a monthly predetermined cash amount.

D.lump sum plus a royalty on all sales.

4.Which of the following statements about Internet retailing istrue?

A.The electronic channel offers a less satisfying shopping experience than catalogs.

B.Retail sales through the electronic channel are growing at the same rate of sales growth as through the catalog channel.

C.Electronic retailing can offer superior benefits in comparison to those of which other channels offer because it has the ability to

personalize information to each customer economically.

D.E-retailers have lower prices.

5.A company that is in the second stage of corporate social responsibility engages

A.only in CSR activities that are required of them by law. CSR activities for the well-being of everyone. CSR activities because they believe it is the right thing to do. CSR activities that provide a short-term financial benefit.

6.Which of the following is theleasteffective method a retailer may use to increase the chances that its

store will be selected for a visit?

A.Increase customer’s importance weights.

B.Decrease the performance belief for competing stores in the consideration set.

C.Add a new benefit.

D.Focus on improving performance on benefits important to their target market.

7.Stocking a deep and broad assortment is appealing to customers, but costly for retailers. What option

does a small specialty store owner have to offset costs, and make a profit?

A.Offer less hours of operation

B.Hire less staff

C.Offer less expensive assortments

D.Charge higher prices

8.Whereas conventional supermarkets carry about 30,000 SKUs, limited assortment supermarkets or

extreme value food retailers only stock 2,000 SKUs. Which of the following isnotthe advantage of

stocking lesser SKUs?

A.Less inventory investments

B.Less inventory holding costs

C.Lower transportation costs

D.Less backup stocks

9.Which of the following statements regarding warehouse clubs istrue?

A.Warehouse clubs have extensive assortments.

B.Warehouse clubs sell merchandise in a no-frills atmosphere.

C.Warehouse clubs have expensive store designs and aesthetics.

D.Warehouse stores have high inventory holding costs.

10.Ken operates a furniture store suited for a market of young military families. When young couples

come in to his store to shop, they bring their children, who distract their parents from making a purchasing

decision. How can Ken help these couples make a purchase?

A.Extend the store hours until after the children’s bedtime

B.Offer extensive credit

C.Lower the prices of the furniture

D.Provide in-store child-care

11.Which of the following segmentation methods would bemostappropriate for a convenience store





D.Buying situation

12.If a chain of florist shops opened a plant nursery to provide gift plants and cut flowers to all of its stores

within a 300-mile radius, the chain would be practicing expansion.

B.horizontal expansion.

C.opportunity incrementing.

D.vertical integration.

13.Which of the following statements about the U.S. distribution system istrue?

A.Many people think the United States is understored.

B.Many U.S. retailers are large enough to have their own warehouses and have eliminated their need for wholesalers.

C.When compared to retail density in Europe, the United States is very low.

D.The small specialty store is the fastest growing type of U.S. retailer.

14.Why do movie theaters sell tickets for an afternoon showing of a movie at a lower price than the 7:00

p.m. showing of the same movie?

A.To deal with the perishability of services

B.To deal with the intangible characteristic of services

C.To deal with the incompatibility characteristic of services

D.To make sure the service offered is consistent

15.The percentage of total purchases made by a customer in your store is called

A.share of value.

B.profit logic.

C.worth of wallet.

D.share of wallet.

16.The multiattribute attitude model is designed to

A.segment the target market by examining customers’ attributes and determine the store’s or product’s position in the market.

B.predict how a customer will evaluate a store based on its attributes and how important these attributes are to the customer.

C.forecast inventory needs based on a multiple regression model.

D.modify preexisting attitudes by providing customers with a list of benefits (attributes) for shopping at a particular store or

buying a particular product.

17.What can department stores do to differentiate their merchandise offeringandstrengthen their image?

A.Increase their pricing.

B.Seek exclusive arrangements with nationally recognized brands.

C.Merge with faltering retailers to gain their market share.

D.Network with a broader variety of vendors.

18.Which of the following businesses wouldnotbe considered a retailer?

A.A hot dog cart at the Highland Games

B.Delta Airlines

C.University bookstore

D.Procter and Gamble

End of exam

19.Which of the following statements describing distribution systems within major international markets is


A.The Indian distribution systems are characterized by small stores operated by small firms and a large independent wholesale


B.In the Chinese distribution system, the merchandise often passes through several levels of distribution to make the daily

deliveries to the small retailers efficient.

C.The U.S. distribution system has the greatest retail density and the greatest concentration of large retail firms.

D.With the population density in France, most stores throughout France are open 24 hours, seven days a week.

20.Ben saw a 30-minute TV show with George Foreman on it. During the show, Foreman was showing

how to prepare a variety of foods so that they would be totally fat-free. Each item was prepared using a

special cooker. During the show the TV audience was given several opportunities to buy the cooker. What

was Ben watching?

A.An infomercial

B.Outbound telemarketing

C.Direct selling

D.A sales promotion