Marketing 124 CH4-8

1) Independent retailers are characterized by___.
a.) a partnership form of organization
b.) a franchise form of distribution
c.) vertical integration
d.) ownership of only one retail unit
ownership of only one retail unit
2) What percent of overall retail store sales are accounted for by independent retailers?
25%
3) Retailing is best characterized by using which of the following?
a.) independent ownership dominating sales
b.) franchise organizations dominating sales
c.) ease of entry into the marketplace
d.)vertical marketing systems being fully
integrated
c.) ease of entry
4) The high ease of entry into retailing___.
a.) generates a great deal of competition for new and existing retailers
b.) means that investment per worker in retailing is generally higher than for most manufacturers
c.) contributes to low new-retailer failure rates
d.) is due to complex licensing provisions for many retailers
a) generates a great deal of competition for new and existing retailers
5) A major competitive advantage of independent retailers is___.
a.) a good fit with other owned units
b.) flexibility in devising retail strategy
c.) quantity discounts in purchasing
d.) specialization of retail functions
b) flexibility in devising retail strategy
6) A major disadvantage of independent retailing is the ____.
a.) limitation in bargaining power
b.) latitude in selecting customer markets
c.) high investment requirements
d.) inflexibility in developing strategy
a) limitation in bargaining poer
7) An independent can limit the overdependence on the owner problem by ___.
a.) life insurance
b.) incorporating
c.) centralized decision making
d.) decentralizd decision making
d) decentralized decision making
What chains account for about 30 percent of all retail establishments, they account for what percent of total retail sales?
75%
An example of a chain retailer performing a wholesaling function is______.
a.) gaining exclusive rights to sell certain items
b.) introducing private brands, such as Sears’ Kenmore
c.) using point-of-sale equipment to determine inventory levels
d.) buying directly from suppliers
buying directly from suppliers
A disadvantage of centralized purchasing to a chain retailer is ______.
a.) overdependence on the boss
b.) lack of quanity discounts
c.) absence of bargaining power
d.) the difficulty in adapting to local needs
d) the difficulty in adapting to local needs
A dealer agrees to sell a supplier’s products and to operate under the supplier’s name in _____.
a.) a chain
b.) a leased department
c.) product/trademark franchising
d.) independent channel ownership
c) product/ trademark franchising
An eample of a product/trademark franchise is a ____ franchise.
a.) McDonald’s fast food
b.) Wendy’s fast food
c.) Super 8 hotel
d.) Chevrolet auto dealership
d) Chevrolet auto dealership
The use of prototype stores, standardized product lines, and cooperative advertising characterizes ____.
a.) retail cooperatives
b.) business format franchising
c.) product/trademark franchising
d.) vertical marketing systems
b) business format franchising
The type of retailer with the largest percent of total retail franchise sales is____.
a.) gasoline service stations
b.) hotels and motels
c.) restaurants
d.) auto and truck dealers
auto and truck dealers
Auto dealer and gasoline station franchises represent what type of structural arrangement?
a.) vountary wholesaler-retailer
b.) service sponsor-retailer
c.) cooperative wholesaler-retailer
d.) manufacturer-retailer
manufacturer-retailer
Days Inn, Midal Muffler, and McDonald’s are examples of which retail franchising structural arrangement?
a) service sponsor-retailer
b) voluntary wholesaler-retailer
c) manufacturing-retailer
d) cooperative wholesaler-retailer
a) service sponsor-retailer
Franchisors can exclude franchises from or limit their involvemtn in the strategic planning process through_____.
a) franchise training
b) franchisor troubleshooting
c) limiting purchases to the franchisor or approved vendors
d) quanity purchases
c) limiting purchases to the franchisor or approved vendors
Fair practice laws are designed to prevent a franchisor from____.
a) enforcing a tying agreement
b) terminating, canceling, or failing a renew a franchise without sufficent cause
c) incorrectly reporting franchise profits and investments
d) selling additional franchises in a protected territory
B) terminating, canceling, or failinng to renew a franchise without sufficient cause
A benefit of franchising to a franchisor is____.
a) the ability to develop a national presence with less franchisor investment than ownership
b) lack of uniformity
c) total channel control
d) intrafranchise competition
A) the ability to develop a national presence with les franchisor investment than overship
In most situations, leased departments have been used by existing retailers to_____.
a) deepen their merchandise assortment to customers
b) generate cash flow due to centralized checkouts
c) improve the store’s overall image
d) broaden their merchandise or service offerings into product categories on the fringe of their business
D) broaden their merchandise or service offerings into product categories on the fringe of their business
An advantage of a leased department form of organization to a lease is_____.
a) an enlarged market due to providing one-stop customer shopping
b) management assistance
c) protection from FTC regulations
d) financial support provided by the leasor
a) an enlarged market due to providing one-stop customer shopping
A disadvantage of a leased department to the leased department operator is the____.
a.) restriction on goods/services carried
b.) high promotional expense
c.) poor cash flow due to centralized checkouts
d.) creation of a one-stop shopping environment
A) restriction on goods/services carried
The most common form of vertical marketing system is_____.
a) independent vertical marketing system
b) partially integrated marketing system
c) fully integrated marketing system
d) a retail cooperative
A) independent vertical marketing system
A manufacturer with low company resources that seeks intensive distribution should utilize which vertical marketing system?
a) a retail cooperative
b) partially integrated marketing system
c) independent vertical marketing systems
d) fully integrated marketing system
C) independent vertical marketing systems
Which vertical marketing systems is involved when one channel member performs all production and distribution functions?
a) fully integrated vertical marketing system
b) partially integrated vertical marketing system
c) independent vertical marketing system
d) franchising
a) fully integrated vertical marketing system
A benefit to the use of a fully integrated vertical marketing system is____.
a) higher investment requirements
b) greater profitability due to franchising
c) greater control over production and marketing
d) increased sales due to less market penetration
c) greater control over production and marketing
Avon and Sherwin-Williams utilize____.
a) an independent vertical marketing system
b) a partially integrated vertial marketing system
c) a fully integrated vertical marketing system
d) franchising
C) a fully integrated vertical marketing system
Which vertical marketing system allows a firm to appeal to different customers through different wholesale and retail distribution forms?
a) dual vertical marketing system
b) independent vertical marketing system
c) partially integrated vertical marketing system
d) fully integrated vertical marketing system
a) dual vertical marketing system
The overall process whereby one member of a channel can impose its will on other independent channel members is referred to as _____.
a) channel control
b) vertical integration
c) franchising
d) private branding
a) channel control
A manufacturer can exert channel control through____.
a) pre-ticketing items
b) private branding
c) cooperative advertising
d) market research
a)pre-ticketing items
The use of franchising and the designation of suggested retail selling prices are channel control strategies of ____.
a) consumer cooperatives
b) wholesalers
c) retailers
d) manufacturers
d) manufacturers
Retailers can possess channel control through___.
a) franchising
b) fair trade legislation
c) private brands
d) tying contracts
C) private brands
A major benefits to all parties of established channel roles is the ____.
a) development of long-term relationships among channel members
b) use of intensive distribution to foster consumer convenience
c) reduction in retail selling price due to private brands
d) development of a uniform image
a) development of long term relationships among channel members
Which of the following has developed because existing retail institutions are inadequately fulfilling market needs?
a) consumer cooperatives
b) independent channel ownership
c) leased departments
d) total vertical integration
consumer cooperatives
The growth of consumer cooperatives has been limited due to ____.
a) fair practice legislation
b) required consumer/member initiative and drive
c) competitive actions by full-service retailers
d) wholesaler use of full-time forcing
b) required consumer/member initiative and drive
Which statment concerning the ease of entry into retailing is correct?
a) ease of entry generates a high degree of competition
b) investment per worker in retailing is significantly greater than that of manufacturing establishments
c) ease of entry is reflected in high market shares for leading firms
d) ease of entry into retailing contributes to the need for effective stockholder relations
a) ease of entry generates a high degree of competition
Which of the following has the greatest flexibility in developing and implementing a retail strategy?
a) independent retailer
b) franchisee
c) chain store manager
d) leased department operator
a) independent retailer
Decision making is usually centralized and the levels of management personnel are minimized in which retail institution?
a) department store
b) chain
c) variety store
d) independent
D) independent
Uniformity of retail image is NOT a problem for____.
a) independent retailers
b) chains
c) franchises
d) leased department lessees
a) independent retailers
The need to develoop and monitor a common image for all units is important for which retail institutions?
a) independents and cooperatives
b) chains and franchises
c) chains and service sponsors
d) independent and service sponsors
b) chains and franchises
A unique disadvantage for independent retailers is a lack of___.
a) competitive advantages
b) independence
c) control over strategy
d) managment succession
d) management succession
Chains can receive new items as soon as they are introduced, get proper service and selling support from suppliers, and obtain the best prices. These advatages refer to____.
a) economies of scale
b) a centralized organization
c) quanitiy discounts
d) bargaining power
d) bargaining power
A major competitive advantage of chains in contrast to independents is___.
a) freedom from antitrust legislation
b) freedom from unionization
c) independence of actions
d) efficiencies due to doing wholesaling functions
d) efficiences due to doing wholesaling functions
Centralized purchasing and decision making, as well, as cost efficiencies, are characteristics of which form of retail institution?
a) independents
b) chains
c) retail cooperatives
d) vertical marketing systems
B) chains
The job titles of buyer, vice-president of operations, and merchandise vice-president are more likely to be found in what type of retail institution?
a) independent
b) chain
c) leased department
d) franchise
b) chain
Independents can compete with chain organizations (in terms of image, promotional effectiveness, and central organization assistance) through____.
a) franchising
b) an off-price chain
c) a vertical marketing system
d) a leased department
a) franchising
In contrast to product/trademark franchising, in business format franchising___.
a) franchisees have greater flexibility in operations
b) franchisees can operate autonomously from their suppliers
c) there is an active relationship between the franchisor and franchisee
d) about 70 percent of all retail franchising occurs
c) there is an active relationship between the franchisor and franchisee
An individual attempting to enter retailing who desires and requires considerable training and assistance should consider____.
a) product/trademark franchising
b) business format franchising
c) independent retailing
d) a leased department operation
b) business format franchising
A business format franchise most closely resembles which vertical marketing system alternative?
a) independent vertical marketing system
b) partially integrated vertical marketing system
c) fully integrated vertical marketing system
d) dual vertical marketing system
b)partially integrated vertical marketing system
The job titles of channel member salesperson, vice president of real estate, vendor quality inspector, and channel member support person are more likely to be found in what type of retail institution?
a) independent
b) consumer cooperative
c) leased department
d) franchisor
d) franchisor
Which of the following is NOT a structural arrangment involvong retail franchisees?
a) manufacturer-retailer
b) vertical marketing system
c) service sponsor-retailer
d) wholesaler-retailer
b) vertical marketing system
Which of these is NOT an advantage of franchising to the franchisee?
a) the training provided
b) strict contract provisions
c) exclusive selling rights
d) cooperative marketing programs
b) strict contract provisions
As a result of constrained decision making in franchising____.
a) oversaturation of outlets can occur
b) royalties are based on sales, not profits
c) the franchisor can limit franchisee input into planning
d) the franchisor uses short-duration leases
c) the franchisor can limit franchisee input into planning
FTC rulings, fair practice laws, and franchise-member organizations have the effect of____.
a) shifting some channel power back to franchisees
b) limiting franhisor “right to purchase” laws
c) promoting service-sponsor versus manufacturer franchises
d) further constraining decision making relative to franchisees
a) shifting some channel power back to franchisees
Franchisors generally receive revenues from franchisees from all of the following except____.
a) initial franchise fee
b) quality control fee
c) percent of gross sales royalty fee
d) sale of goods and services to franchisee
b) quality control fee
Agreements drawn up that require franchisees to abide by stringent regulations set by the franchisor are legal if necessary to ____.
a) develop and maintain a uniform chain-like image
b) force franchisees to purchase goods and services from approved vendors
c) constrain franchisee decision making
d) provide franchisors with additional revenue
a) develop and maintain a unifrom chain like image
A major potential problem associated with franchising for the franchisor is that_____.
a) money is obtained when goods are delivered, rather thanwhen they are sold
b) franchisees as owners have less incentive to work hard than employees
c) it is difficult to set up and enforce franchise qualifications
d) poorly performing franchises can undermine both consumer and investor confidence
d) poorly performing franchises can undermine both consumer and investor confidence
Which statement about leased departments is NOT correct?
a) The proprietor of a leased department is responsible for all aspects of its operations
b) The leasor provides management assistance, training, and troubleshooting for the lease
c) The leasor imposes various stipulation on the leasee to ensure consistency and coordination
d) Leased departments tend to operate on the fringe of a department store’s product lines
b) the leasor provides management assistance, training, and troubleshooting for the lease
Which of the following is NOT a benefit to a department or discount store using leased departments instead of company-operate units?
a) a one stop shopping environment
b) low investment requirements
c) high control of operations
d) payment based on sales, not profits
c) high control of operations
A problem common to franchisors and department or discount stores that utilize leased departments is the____.
a) short duration of most leases
b) potential negative effect on the firm’s overall image
c) inflexibility with regard to store hours and operating style
d) legality of contract provisions relating to use of approved vendors
b) potentail negative effect on the firm’s overal image
In an independent vertical marketing system,____.
a) successive stages of production and distribution are jointly owned
b) manufacturers seek out wholesalers, who seek out retailers to stock and sell products
c) two channel members can perform all production and marketing functions
d) marketing operations are franchised
b) manufracturers seek out wholeslers, who seek out retailers to stockand sel products
Channel control is lowest for manufacturers/service sponsors in____.
a) a fully integrated vertical system
b) an independent vertical marketing system
c) product/trademark franchising
d) business format franchising
b) an independent vertical marketing system
Channel control is greatest for manufacturers/service sponsors in____.
a) a fully integrated marketing system
b) business format franchising
c) product/trademark franchising
d) an independent marketing system
a) a fully integrated marketing system
A firm using a differentiated marketing strategy should utilize a(n)_____.
a) independent vertical marketing system
b) partially integrated vertical marketing system
c) fully integrated vertical marketing system
d) dual vertical marketing system
d) dual vertical marketing system
Many leases in leased departments can be terminated on very short notice (as little as 60 days) by the leasor. This gives the leasor____.
a) decreased bargaining power
b) increased bargaining power
c) protection under fair practive laws
d) additional revenue
b) increased bargaining power
Manufacturers/service sponsors can exert channel control through____.
a) brand loyalty
b) store loyalty
c) private branding
d) fair practice legislation
a) brand loyalty
A retailer can generate channel through each of the following strategies except____.
a) bargaining power due to many purchases from a manufacturer
b) private brands
c) the threat of switching vendors
d) franchisng
d) franchising
A large retailer, such as Wal-Mart, can gain channel control over suppliers through____.
a) bargaining power
b) fair trading
c) franchising
d) full-line forcing
a) bargaining power
Retailers use private labeling to generate channel control because___.
a) retailers can switch vendors with no impact on their customer loyalty
b) a large proportion of a manufacturer’s output is sold to one retailer
c) retailers can more easily obtain bank financing
d) greater channel communication is fostered
a) retailers can switch vendors with no impact on their customer loyalty
A retailer generates chanel control by attaining brand loyalty for its goods and converting it to store loyalty. This retailer is utilizing____.
a) private brands
b) franchising
c) bargaining power in negotiation
d) a fully integrated vertical marketig system
a) private brands
CHAPTER 5 BEGINS NOW

A retailer with high customer loyalty is able to attract shoppers who come from long distances. This retailer is described as a(n) ____.
a) destination retailer
b) parasite retailer
c) scrambled merchandising retailer
d) innovator

a) destination retailer
Which concept characterizes all destination retailers?
a) Destination retailers are dominant in terms of some aspect of their overall retail strategy.
b) destination retailers are chains
c) destination retailers have large locations
d) destination retailers have low prices
a) destination retailers are dominant in terms of some aspect of their overall retail strategy
Which retail theory predicts that innovators will start with a low-cost structure and low profit margin requirements?
a) scrambled merchandising
b) retail life cycle
c) wheel of retailing
d) rationalized retailing
c) wheel of retailing
Which of the following is NOT a basic assumption of the wheel of retailing?
a) a large number of price-sensitive shoppers exist
b) retailers increase operating costs over time to improve their image
c) new institutions are able to reduce operating costs
d) related-item merchandising increases sales because of one-stop-shopping appeals
d) related-item merchandising increases sales becuase of one stop shopping appeals
A retailer that increases its product line assortment width by adding new products unrelated to its original business and to each other is practicing___.
a) scrambled merchandising
b) the wheel of retailing
c) rationalized retailing
d) life cycle retailing
A
A pharmacy (due to increased competition from a neighboring supermarket) has added an exclusive line of cosmetics and expanded its line of greeting cards and gift-wrapping items. This strategy illustrates____.
a) scrambled merchandising
b) the retail life cycle
c) the wheel of retailing
d) rationalized retailing
A
Which statement concerning scrambled merchandising is correct?
a) supermarkets have not engaged in scrambled merchandising
b) retailers typically trade up as part of scrambled merchandising
c) scrambled merchandising is contagious
d) scrambled merchandising typically occurs at the innovation stage of the retail life cycle
C
A theory which predicts that retail instiutions have identifiable stages from introductionto decline is___.
a) the retail life cycle
b) the wheel of retailing
c) scrambled merchandising
d) rationalized retailing
A
During which stage of the retail life cycle do sales and then profits rise for the first retailers in this category?
a) maturity
b) decline
c) introduction
d) accelerated development
C
A high level of investment is needed to sustain growth during which retail life cycle stage?
a) decline
b) introduction
c) acelerated development
d) maturity
C
The retail life cycle stage characterized by excess capacity and overstoring is___.
a) introduction
b) accelerated development
c) maturity
d) decline
C
In downsizing, retailers increase productivity through____.
a) closing unprofitable stores or selling unprofitable divisions
b) economies of scale
c) increasing the number of destination stores
d) appealing to consumbers with value driven retailing
A
Which of the following best illustrates a retail cost containment strategy?
a) buying refurbished equipment
b) closing down unprofitable locations
c) increasing services
d) expanding store hours
A
Which food-oriented retailer specializes in fill in merchandise?
a) convenience store
b) supermarket
c) specialty store
d) superfood store
A
A self service food store with grocery, meat, and produce departments and minimum annual sales of $2 million is a ____.
a) convience store
b) specialty store
c) superfood store
d) supermarket
D
Which of the following retail institutions does NOT fit into the definition of a supermarket?
a) conventional supermarket
b) warehouse store
c) superstore
d) convenience store
D
A food oriented retailer in which general merchandise accounts for 25% to 40% of total store sales is a _____.
a) superstore
b) combination store
c) box store
d) warehouse store
B
A special type of combination store that integrates an economy supermarket with a discount department store is a ____.
a) convenience store
b) supercenter
c) box (limited line) store
d) warehouse store
B
Which food oriented retailer traditionally uses cut cases, relies on customers, doing their own bagging, and heavily utilizes private-label brands?
a) box (limited line) store
b) convenience store
c) combination store
d) superstore
A
The growth of box stores did NOT reach original expectations, in large part, because____.
a) They lacked brand continuity
b) They could not fulfill customer one stop shopping needs
c) they were not price competitive on nonfood items
d) store managers could not handle widely divergent product lines
B
A potential problem that may limit the growth of warehouse stores is___.
a) a lack of brand continuity
b) a concentrationon private labelor controlled brands
c) their high prices
d) manufacturers’ refusal to sell to them
A
A narrow but deep product assortment characterizes____.
a) department stores
b) specialty stores
c) variety stores
d) retail catalog showrooms
B
A retailer with the least degree of diversification in its product line or service category is a ____ store.
a) full-line discount
b) variety
c) department
d) speciality
D
A category killer is a form of ____ store.
a) department
b) variety
c) specialty
d) full line discount
C
WHich retail institution is organized into specific divsions for purposes of buying, promotion, customer service, and control?
a) department store
b) variety store
c) full-line discount store
d) retail catalog showroom
A
Two types of retail institutions satisfy the broad definition of a department store: the traditional department store and the___.
a) full-line discount store
b) hypermarket
c) variety store
d) retail catalog showroom
A
Which retail institution has disappeared from the US marketplace?
a) off price chain
b) catalog showroom
c) box store
d) conventional variety store
D
Which retail institution purchases brand name merchandise on an opportunistic basis and seeks to attract department store shoppers?
a) full-line discount store
b) warehouse store
c) off-price chain
d) flea market
C
Which retail institution generally does NOT mention specific brand names and/or prices in its advertising?
a) department store
b) off-price chain
c) full line discount store
d) variety store
B
Other retailers’ canceled orders, manufacturers’ irregulars and overruns, and end-of-season items form the core of merchandise at which retail institution?
a) off price chain
b) box store
c) full line discount store
d) factory outlet
A
A significant factor in the growth of factory outlets is the___.
a) ability of outlets to purchase merchandise for cash
b) success o wholesale sales
c) success of catalog sales
d) desire/need for manufacturer control where discounted merchandise is to be sold
D
Which retail institution is ofter part retailer and part wholesaler?
a) off price retail chain
b) factory outlet
c) flea market
d) membership club
D
Which institution caters to both final and organizational consumers?
a) retail cooperative
b) factory outlet
c) flea market
d) membership club
D
Which retail institution commonly uses locations based in racetracks, stadiums, and arenas?
a) off price retail chain
b) flea market
c) factory outlet
d) membership club
B
The high total sales volume from off-price chains, factory outlets, membership clubs, and flea markets can be explained by____.
a) the retail life cycle
b) scrambled merchandising
c) retail downsizing
d) the wheel of retailing
D
Which theory suggests that a retailer becomes vulnerable to competition when its costs (and profit margin requirements) increase?
a) the retail life cycle
b) rationalized retailing
c) the wheel of retailing
d) scrambled merchandising
C
According to the wheel of retailing theory, which pricing strategy is used by an innovator?
a) pricing at the market
b) prestige pricing
c) competitive pricing
d) deep discount pricing
D
According to the wheel of retailing, a retailer is vulnerable when____.
a) consumers do not accept the retailer’s old image
b) its upgraded strategy gives new institutions a significant cost advantage
c) its strategy is no longer considered unique
d) sales and profits exhibit rapid growth
B
According to the wheel of retailing, retail institutions_____.
a) become vulberable when they engage in scrambled merchandising
b) stay as low end strategy firms
c) begin as low end strategy firms and become vulnerable when they upgrade their strategy to medium or high end
d) always increase sales and profits when they upgrade their strategy
C
Which of these is NOT a basic strategic position according to the wheel-of-retailing theory?
a) power position
b) high-end position
c) low end position
d) medium position
A
The theory that suggest that established retailers must be cautious in converting from a low end strategy to a high end strategy is___.
a) the wheel of retailing
b) scrambled merchandising
c) rationalized retailing
d) the retail life cycle
A
A retailer tries to appeal to consumers’ one stop shopping needs through___.
a) the retail life cycle
b) vertical marketing systems
c) the wheel of retailing
d) scrambled merchandising
D
Which retail institutions fit the scrambled merchandising concept?
a) warehouse store and conventional supermarket
b) warehoue store and box store
c) convenience store and conventional supermarket
d) combination store and superstore
D
The evolution of the conventional supermarket into combination stores and supercenters can be explained by which retail concept?
a) scrambled merchandising
b) Huff’s law
c) rationalized retailing
d) the wheel of retailing
A
The beginning of the wheel of retailing (when low price institutions first appear) corresponds to which retail life cycle stage?
a) decline
b) accelerated development
c) introduction
d) maturity
C
What type of management style should accompany the introduction stage of the retail life cycle?
a) entrepreneurial
b) professional
c) centralized
d) careteaker
A
There is much discussion about saturation of fast food franchises and the need for unconventional locations (such as schools, zoos, or US naval bases) in the United States. This illustrates which of the retail life cycle stage?
a) intro
b) accelerated development
c) maturity
d) decline
C
The retail life cycle stage corresponding to a retail innovator first becoming vulnerable to new discount retailers with a lower cost structure is ___.
a) intro
b) decline
c) accelerated development
d) maturity
D
The opposite of a “moving up the wheel of retailing” strategy is___.
a) cost containment
b) mergers and acquisitions
c) value driven retailing
d) power retailing
A
The food-orientated retailer with the most narrow width and depth of assortent is the___.
a) warehouse store
b) conventional supermarket
c) convenience store
d) food based superstore
C
The food oriented retailer with the highest percent of fill in sales is the___.
a) conveniene store
b) conventional supermarket
c) combination store
d) food based superstore
A
The food oriented retailer with the greatest width of assortment is the___.
a) conventional supermarket
b) food based superstore
c) combination store
d) warehouse store
C
Which of these is a successful European store type that has NOT done well in the US??
a) warehouse store
b) convenience store
c) superstore
d) hypermarket
D
Private labels are an integral part of the channel control strategy of___.
a) variety stores
b) off price chains
c) independents
d) box (limited line) stores
D
Which type of retailer is characterized by very narrow width and extenxive depth of assortment?
a) variety store
b) speciailty store
c) department store
d) box store
B
Which general merchandise retailer is most likely to appeal to a small, niche market segment?
a) variety store
b) specialty store
c) department store
d) off price chain
B
The use of boutiques by department stores to highight designer clothing most closely resembles the strategy of a ___.
a) specialty store
b) retail catalog showroom
c) variety store
d) full line discount store
A
Which retail instituion is most likely to be an example of a destination store?
a) variety store
b) specialty store
c) category killer
d) superstore
C
The competitive advantage of a categy killer is based on___.
a) width of assortment
b) depth of assortment
c) imported merchandise prices
d) convenience of location
B
The instiution with the greatest assortment of any general merchandise retailer is the__.
a) department store
b) supermarket
c) full line discount store
d) superstore
A
Which type of general merchandise retailer is most prone to have limited customr service and an austere store environment?
a) specialty store
b) department store
c) off price chain
d) conventional supermarket
C
Low merchandise continuity and opportunistic buying characterize____.
a) retail cataog showrooms and combination stores
b) superstores and combination stores
c) variety stores and membership clubs
d) off price chains and membership clubs
D
Which retail institutions do NOT require advertising suport from suppliers?
a) off price chains and membership clubs
b) department stores and variety stores
c) superstores and traditional department stores
d) variety stores and membership clubs
A
Off price chains and membership clubs have similar strategies in their use of___.
a) private labels
b) opportunistic buying
c) catalog based sales
d) one stop shopping appeals
B
Manufacturers may prefer to sell their closeouts, canceled orders, and out of season merchandise to factory outlets rather than off price chains because___.
a) off price chains can generate high profit margins
b) off price chains have too much power
c) factory outlets generate low short-term cash flow
d) greater control results in less disturbance to traditional channels
D
A factory outlet represents an example of a(n)___.
a) independent vertical marketing system
b) partially integrated vertical marketing system
c) fully integrated vertical marketing system
d) distorted vertical marketing system
C
A manufacturer seeking maximum channel control should utilize which type of retailer?
a) factory outlet
b) membership club
c) off price chain
d) department store
A
Which retail instituion illustrates vertical integration?
a) off price chain
b) factory outlet
c) membership club
d) department store
B
WHich instituion can be classified as either a wholesaler or retailer?
a) off price chain
b) factory outlet
c) membership club
d) department store
C
Department stores are now facing increased competition from factory outlets, membership clubs, and flea markets. THis illustrates___.
a) rationalized retailing
b) scrambled merchandising
c) the retail life cycle
d) the wheel of retailing
D
CHAPTER 6 QUESTIONS

A store based retailer that uses the Web to expand its target market has evolved from___ to ___.
a) single-channel retailing; multi channel retailing
b) mass marketing; concentrated marketing
c) differentiated marketing; mass marketing
d) independent; a fully integrated vertical marketing system

A
Which of the following is NOT always an example of non store retailing?
a) direct selling
b) direct marketing
c) airport retailing
d) vending machines
C
The fastest-growing form of direct marketing is___.
a) direct selling
b) vending machines
c) airport retailing
d) Web-based retailing
D
A customer orders products by mail, phone, or fax in___.
a) services retailing
b) direct marketing
c) direct selling
d) retail catalog showrooms
B
Direct marketers can be divided into two categories:___ and ___.
a) general; specialty
b) mail; phone order
c) low end; high end
d) store; nonstore-based
A
Which of the following is NOT a major benefit to direct marketing for a retailer?
a) startup costs can be very low
b) customers are given a convenient method of shopping
c) a very large geographic area can be inexpensively covered
d) products can be examined prior to purchase
D
Ease of entry into direct marketing is faciliated by___.
a) low capital requirement due to no need for stores
b) the use of dual distribution channels
c) the need for technological skills
d) low paper and postage costs
A
Which of the following is a major limitation to direct marketing for a retailer
a) startup costs are generaly very high
b) pricing may be difficult to plan since catalogs needs to be prepared well in advance
c) it is difficult to pinpoint consumer segments through mailings
d) customer shopping is generally inconvenient
B
Direct marketers are most affected by which federal legislation?
a) Robinson Patman Act
b) 3o day rule
c) Green River ordinances
d) blue laws
B
Which of the following are characteristics of direct marketing?
a) exposure to a good or service through a non personal medium and ordering via mail, phone, fax, or computer
b) exposure to a good or service through a non personal medium and ordering via personal interaction
c) exposure to a good or service through a personal medium and ordering via mail, phone, fax, or computer
d) exporsure to a good or service through a personal medium and ordering via personal interaction
A
Vending machine transactions are NOT considered part of direct marketing because____.
a) vending machines are located in offices, restaurants, and factories
b) consumers are solicited via in person selling efforts
c) the transaction is not via mail, phone, fax, or computer
d) the average transaction is too low
C
A way of collecting, storing, and using relevant information about consumers is___.
a) marketing research
b) retail information systems
c) data-base retailing
d) direct selling
C
The use of direct marketing by a store based retailer demonstrates___.
a) multi channel retailing
b) scrambled merchandising
c) the wheel of retailing
d) rationalized retailing
A
A direct marketer can reduce the costs of catering to a market niche through the use of___.
a) specialogs
b) prototype stores
c) scrambled merchandising
d) rationalized retailing
A
The two components of TV based direct mareting are___.
a) catalogs and web-based retailing
b) kiosks and shopping networks
c) shopping networks and infomercials
d) cable television and shopping networks
C
Which of the following is NOT a characteristic of an infomercial?
a) a duration of under 5 minutes
b) a program length commercial
c) use of fringe times
d) use of cable or broadcast television
A
Which statement concerning global direct marketing is NOT correct?
a) there is a decreasing acceptance or nonstore retialing outside the united states
b) Outside the US, annual direct sales are in the hundreds of billion of dollars
c) Eddie Bauer and Lands’ End are among the firms with a significant international presence
d) There are direct marketing trade associations in such diverse countries as Australia, Brazil, China, and Russia
A
The first step in enacting a direct marketing strategy is to___.
a) define one’s business
b) select media
c) generate customers
d) arrange order fulfillment
A
A prospective consumer who has never been sought before by a direct marketer can be classified as a ____.
a) nonregular
b) nonrespondent
c) new trial
d) new contact
D
Which types of consumers are least likely to respond to a direct marketer?
a) regulars and nonregulars
b) regulars and new trails
c) regulars and new contacts
d) buyers and users
A
Which types of consumers are least likely to respond to a direct marketer?
a) new contacts and nonrespondents
b) nonregulars and new contacts
c) nonregulars and nonrespondents
d) nonregulars and new trails
A
The system to process a direct marketing order is referred to as____.
a) outsourcing
b) logistics
c) inventory management
d) order fulfillment
D
Which process involves the handling of a credit transaction, issuing receipts, forwarding orders to a warehouse, and shiping goods to a final consumer?
a) logistics
b) order fulfillment
c) inventory management
d) third party logistics
B
The overall response rate, average purchase amount, and sales volume by product category are ___ for direct marketers.
a) customer contact guidelines
b) order fulfillment guidelines
c) methods of measuring results
d) business definition guidelines
C
Direct selling involves____.
a) personal contact with consumers in their homes and a consumer’s ordering via mail, phone, fax, or computer
b) nonpersonal media and a consumer’s ordering via mail, phone, fax, or computer
c) personal contact with consumers in their homes and phone solicitations initiated by a retailer
d) nonpersonal media and phone solicitations inititated by a retailer
C
Which of the following is NOT an adverse factor affecting direct selling?
a) the unavaliability of female consumers in their homes due to a large proportion of the female population that currently works
b) high sales turnover of sales personnel
c) a poor image associated with direct selling careers
d) high mailing and catalog production costs
D
Which statement concerning vending machines is correct?
a) over 95 percent of vending machine sales involve hot and cold beverages and food items
b) 85% of vending machine sales involve cigarettes
c) there has been significant growth in the sale of items priced above $5 in vending machines
d) Most vending machines are equipped with dolar bill changers
A
An objective, easily identifiable, and measurable population characteristic is called a(n) _____.
a. AIO inventory
b. demographic statistic
c. lifestyle measure
d. reference group measure
B
The manner in which an individual lives and spends his/her time and money is his/her _____.
a. lifestyle
b. consumer decision process
c. reference group behavior
d. social class structure
A
The average annual U.S. household after-tax income is about _____.
a. $20,000
b. $35,000
c. $50,000
d. $65,000
C
Money left after paying taxes and buying necessities is referred to as _____.
a. GDP per capita
b. taxable income
c. discretionary income
d. disposable income
C
A group of people sharing a distinctive heritage is a(n) _____.
a. culture
b. reference group
c. social class system
d. AIO group
A
An informal ranking of people in a culture is a(n) _____.
a. AIO group
b. social class
c. reference group
d. family life cycle
B
Income, occupation, and education are important components of _____.
a. culture
b. a family life cycle
c. social class
d. reference group affiliation
C
Aspirational, membership, and dissociative are forms of _____.
a. social classes
b. family life cycles
c. reference groups
d. household life cycles
C
The family life cycle shows _____.
a. families which share a distinctive heritage
b. how a typical family evolves from bachelorhood to children to solitary retirement
c. the extent to which groups influence a person’s thoughts and actions
d. the ranking of people within a culture
B
Which group is not reflected in the traditional family life cycle?
a. solitary retired
b. single-parent families
c. young marrieds
d. old aged
B
Which of the following is an element of perceived risk?
a. physical risk
b. reference group risk
c. purchase risk
d. lifestyle risk
A
The element of perceived risk that relates to product safety is _____ risk.
a. performance
b. social
c. economic
d. physical
D
The element of perceived risk that relates to how friends and relatives view the purchase of a good or service is _____ risk.
a. social
b. physical
c. performance
d. psychological
A
The element of perceived risk that relates to the effect of a purchase on one’s self-esteem is _____ risk.
a. psychological
b. social
c. physical
d. performance
A
The increased number of working women and the desire for personal fulfillment contribute to _____.
a. component lifestyles
b. consumer confidence
c. poverty of time
d. performance risk
C
Outshopping refers to _____.
a. in-home shopping by catalog, mail, and phone
b. consumers who travel long distances to stores
c. consumers with very small or large-sized clothing
d. consumers who spend longer than average times in shopping centers/districts
B
The process whereby individuals decide whether, what, when, where, how, and from whom to purchase goods and services is _____.
a. commercial search
b. consumer behavior
c. marketing research
d. outshopping
B
A cue or drive meant to motivate or arouse a person to act is a _____.
a. commercial cue
b. social cue
c. want
d. stimulus
D
Which of the following is not considered as a stimulus?
a. a physical drive
b. a motive
c. a commercial cue
d. a social cue
B
A characteristic of a commercial cue is _____.
a. high marketer control
b. high levels of believability
c. high levels of word-of-mouth communication
d. high levels of customer involvement
A
A point-of-purchase display placed in a supermarket by a major food processor is an example of a(n) _____.
a. noncommercial cue
b. commercial cue
c. advertisement
d. social cue
B
In which stage of the decision process does a consumer recognize that the good or service under consideration may solve a situation of shortage or unfulfilled desire?
a. evaluation of alternatives
b. information search
c. stimulus
d. problem awareness
D
Two components of problem awareness are _____.
a. information search and purchase behavior
b. commercial and noncommercial cues
c. recognition of shortage and recognition of unfulfilled desire
d. physical risk and social risk
C
Information search involves generating a list of alternative goods and services and _____.
a. determining perceived risk levels
b. judging impulse goods
c. determining the characteristics of each alternative
d. evaluating stimuli
C
In the evaluation of alternatives stage of the consumer decision process, criteria for a decision can include _____.
a. price, fit, and durability
b. attitudes, interests, and opinions
c. demographics and psychographics
d. commercial and social cues
A
Further purchase and re-evaluation are components of which stage in the consumer decision process?
a. information search
b. evaluation of alternatives
c. purchase act
d. post-purchase behavior
D
In which stage of the consumer decision process does cognitive dissonance occur?
a. purchase act
b. post-purchase behavior
c. information search
d. evaluation of alternatives
B
Doubt that the correct product has been purchased is known as _____.
a. psychological risk
b. perceived risk
c. cognitive dissonance
d. information re-evaluation
C
Cognitive dissonance shows retailers the importance of _____.
a. social responsibility
b. scrambled merchandising
c. reference grouping
d. after-sale service
D
Expensive, complex goods or services with which consumers have had little or no experience generally involve _____.
a. impulse purchases
b. extended decision making
c. limited decision making
d. routine decision making
B
High-risk products generally require _____.
a. impulse purchasing
b. extended decision making
c. limited decision making
d. routine decision making
B
In limited decision making, consumers _____.
a. use each purchase process step, but do not spend much time on each step
b. spend much time on information search
c. are unwilling to spend time on shopping
d. view products to have high perceived risk
A
Moderate-risk items that have been purchased before but not on a regular basis involve which decision process?
a. impulse purchasing
b. extended decision making
c. limited decision making
d. routine decision making
C
The use of habit in consumer decision making is associated with _____ decision making.
a. routine
b. extended
c. limited
d. generalized
A
Which retail institution is most likely to appeal to a concentrated market segment?
a. department store
b. specialty store
c. conventional supermarket
d. superstore
B
In comparison to lifestyles, demographics are _____.
a. easier to measure
b. more likely to be profiles
c. more difficult to measure
d. growing at a faster rate
A
Clothing buyers have been categorized as clothes horses, bargain hunters, image seekers, and shopping-averse consumers. This divides shoppers by _____.
a. demographics
b. reference groups
c. lifestyles
d. perceived risk
C
The best way to describe ethnic and racial groups in terms of consumer lifestyles is by _____.
a. cultural influences
b. subcultural influences
c. social performance
d. family life cycle
B
A subculture can be based upon all of the following except _____.
a. religion
b. geographic region
c. nationality
d. geographic mobility
D
The social class corresponding to the mass market is _____ Americans.
a. upper
b. lower
c. middle
d. family
C
A retailer is looking for a means of describing consumer behavior that is preferable to shoppers’ ages. One such technique is _____.
a. the social class structure
b. outshopping
c. perceived risk
d. the traditional family life cycle
D
Which consumer lifestyle grouping includes family and nonfamily household members?
a. component lifestyle
b. family life cycle
c. reference group influence
d. household life cycle
D
Which psychological factor is particularly important to consumers seeking social status?
a. personality
b. class consciousness
c. perceived risk
d. culture
B
Goods which are highly visible and which consumers feel they are judged by have high _____ perceived risk.
a. time
b. financial
c. physical
d. social
D
Which form of perceived risk most closely resembles class consciousness?
a. social risk
b. performance risk
c. time risk
d. financial risk
A
A retailer has begun to pre-wrap gift items and to re-deploy checkout personnel to reduce waiting times. The retailer is responding to which demographic and lifestyle factor?
a. gender roles
b. poverty of time
c. component lifestyles
d. consumer sophistication and confidence
B
The difficulty in classifying consumers by a given demographic and lifestyle profile is recognized in which of these categories?
a. consumer sophistication and confidence
b. gender roles
c. component lifestyles
d. poverty of time
C
Consumer researchers that argue that a consumer’s shopping behavior is difficult to categorize due to situational factors (such as immediacy of need) or degree of involvement favor use of which lifestyle factor?
a. gender roles
b. poverty of time
c. component lifestyles
d. consumer sophistication and confidence
C
A shopper profile should ideally contain _____.
a. data developed from observational-based studies
b. only demographic data
c. only lifestyle data
d. both demographic and lifestyle data
D
A difficulty in the study of motives is that _____.
a. motives can be observed
b. a researcher needs to distinguish between rational and irrational motives
c. it is based on self-reports of consumers
d. a consumer’s motives may be related to his/her demographic characteristics
C
A retailer, through its extensive selection and high service levels, is able to attract shoppers from long distances. This phenomenon is known as _____.
a. cognitive dissonance
b. outshopping
c. store loyalty
d. extended decision making
B
Local advertising is ineffective in reaching _____.
a. baby boomers
b. Generation X consumers
c. outshoppers
d. bachelors
C
A mapping analysis for a furniture store shows that 20 percent of its customers drive over 1 hour to visit the retailer. This high proportion of shoppers from a relatively far distance indicates _____.
a. outshopping
b. limited decision making
c. cognitive dissonance
d. active shoppers
A
The opposite of in-home shopping, on a convenience dimension, is _____.
a. routine decision making
b. outshopping
c. store loyalty
d. mapping
B
Word-of-mouth influences in consumer behavior relate to _____.
a. social cues
b. physical drives
c. commercial cues
d. social class structure
A
A major advantage of the use of social versus commercial cues to consumers is based upon _____.
a. the use of lifestyle demographic factors
b. degree of cognitive dissonance
c. believability
d. post-purchase behavior
C
The major difference between social and commercial cues is based on the _____.
a. duration of the consumer decision process
b. degree of information search
c. objectivity of the source
d. degree of problem awareness
C
Which stimulus provides retailers with the greatest degree of control?
a. problem awareness
b. social cue
c. physical drive
d. commercial cue
D
An example of recognition of shortage is when a consumer _____.
a. sees an ad for a suit at a 50 percent price reduction
b. becomes aware of a product that he/she has not purchased before
c. gathers a list of products that will solve the problem at hand
d. runs out of a product
D
Recognition of unfulfilled desire occurs when a consumer _____.
a. discovers that a product needs to be repurchased
b. becomes aware of a product he/she has not previously purchased
c. notices that products have worn out
d. needs to replenish products
B
A high degree of information search generally occurs when _____.
a. perceived risk is high
b. a purchase is viewed as unimportant
c. cognitive dissonance is low
d. a consumer is brand loyal
A
To overcome potential cognitive dissonance, a retailer should _____.
a. overstate a product’s attributes in the sales presentation
b. reduce the price of a product to new customers
c. offer trade-in allowances for durable goods
d. realize the importance of customer after-care
D
Money-back guarantees and honest sales and advertising presentations aid in _____.
a. minimizing cognitive dissonance
b. AIO measurement
c. the problem awareness stage of consumer behavior
d. studying psychographics
A
A salesperson’s being honest in assessing a product’s use, features, and benefits can reduce consumers’ _____.
a. social cues
b. commercial cues
c. cognitive dissonance
d. physical drives
C
The purchase of a good with high perceived risk is likely to involve what type of consumer decision making?
a. extended decision making
b. routine decision making
c. limited decision making
d. brand loyalty
A
What type of consumer decision making is most likely to be used when the importance of a purchase to a customer is very high?
a. routine decision making
b. limited decision making
c. extended decision making
d. brand loyalty
C
Low perceived risk, high experience with a retailer, and high satisfaction with past purchases generally are characteristics of _____.
a. extended decision making
b. cognitive dissonance
c. routine decision making
d. limited decision making
C
Impulse purchases and store loyalty are examples of _____.
a. extended decision making
b. routine decision making
c. problem awareness
d. limited decision making
B
The purest form of an impulse purchase is _____.
a. partially unplanned
b. unplanned substitution
c. completely unplanned
d. reminder impulse
C
A retailer appealing to two distinct demographic groups is utilizing a _____ marketing strategy.
a. differentiated
b. mass
c. concentrated
d. focused
A
Which statement concerning marketing research in retailing is not correct?
a. The use of intuition is an example of the use of marketing research in retailing.
b. Marketing research reduces a retailer’s risk.
c. Marketing research should be a continuous process.
d. Marketing research can involve such facets of a retailer’s strategy as pricing, location, and store image.
A
An example of nonsystematic retailing research is _____.
a. interviewing consumers
b. experimentation
c. observing consumers
d. the use of intuition
D
Which statement concerning retail information systems is not correct?
a. Developing and updating a retail information system in an ongoing process.
b. Developing a retail information system is generally simple.
c. Data is continuously collected and stored in a retail information system.
d. Retailers typically spend from 0.5 to 2.0 percent of their sales on their retail information system.
B
The information needs of retail managers are collected, organized, and stored on a continuous basis in___.
a) observation
b) retail research
c) an experiment
d) a retail information system
D
The procedure to gather, integrate, apply, and store information related to specific subject areas is ____.
a) a retail information system
b)data-base management
c) marketing research
d)data storage
B
Copies of all the data bases in a company are maintained in one location and accessible to employees at any locale through____.
a) a retail information system
b) marketing research
c) data base management
d) data warehousing
D
An application of data mining is____.
a) cost containment
b) micromarketing
c) value-based retailing
d) data base management
B
The Universal Product Code (UPC) system allows a retailer to___.
a) monitor sales in nonfood retail establishments
b) store and monitor product sales data on an item-by-item basis
c) develop a payroll system
d) monitor accounts receivable
B
Retailers and their suppliers can regularly exchange information relating to inventory levels, delivery times, and unit sales through____.
a) marketing research
b) electronic data interchange
c) data-base management
d) the Universal Product Code
B
Marketing research in retailing involves____.
a) secondary data collection and anaylsis
b) the collection and analysis of information relating to specific issues or problems facing a retailer
c) marketing information systems development and implementation
d) the use of intuition in decision making
B
A clear statement of the topic to be studied involves which stage of the marketing research process?
a) recommendations
b) issue (problem) definition
c) secondary data collection
d) implementation
B
Information previously gathered for other purposes than the problem or issue under study is___.
a) primary data
b) syndicated data
c) secondary data
d) a marketing research system
C
Data that can be developed through surveys, experiments, observation, and simulation are____.
a) secondary data
b) marketing research data
c)primary data
d) marketing information systems data
C
The stage of the marketing research process that may be elminated is____.
a) probelm definition
b) implementation of findings
c) recommendations
d) primary data generation
D
A common major disadvantage of secondary data is the____.
a) unsuitable units of measurement
b) long time period required to collect data
c) high cost for data collection
d) known source and control over data collection
A
A major disadvantage of the use of US Census of Retail Trade is its ____.
a) lack of accuracy
b) dated nature
c) low credibility
d) sampling error
B
An example of internal secondary data is____.
a) proQuest
b) Government census data
c) a promotional budget obtained from your firm’s advertising department
d) an annual marketing report of a competitor obtained from a Web based source
C
Ongoing studios are made available to many clients for a fee by___.
a) commercial research houses
b) the US government (federal)
c) channel members
d) the Business periodicals index
A
In a probability sample,____.
a) every unit has an equal or known chance of being chosen for study
b) every unit studied is chosen by the researcher based on judgement or convenience
c) data are selected for use by the researcher based on their relevance
d) data cannot be extrapolated due to unknown sampling error
A
Sampling is based upon judgement or convenience in a _____.
a) probability sample
b) nonprobability sample
c) telephone survey
d) simulation
B
In a survey, ____.
a)information is systematically gathered from respondents by communicating with them
b) the respondent is always told the real purpose of the study
c) past behavior is observed and recorded
d) a computer manipulates retailing factors on paper
A
Which of the following is NOT a survey?
a) observation
b) mail questionaires
c) telephone questionnaires
d) person-to-person interviewing
A
The survey technique with the fastest response is a(n)____.
a) telephone survey
b) mail survey
c) experiment
d) personal survey
A
Interviewer bias is minimized in which survey form?
a) telephone survey
b) mail survey
c) personal survey
d) semantic differential
B
Participation by incorrect respondents is a major problem in which survey?
a) telephone survey
b) personal survey
c) mail survey
d) observation
C
A respondent is always told the real purpose of a study in____.
a) a mail survey
b) an experiement
c) observation
d) a nondisguised survey
D
Bipolar adjective scales are used with which survey instrument?
a) store positioning
b) store image testing
c) semantic differential
d) image analysis
C
A store’s image can be studied using____.
a) observation
b) extrapolation
c) sales data
d) the semantic differential
D
A form of research in which present behavior or the results of past behavior are viewed and recorded is___.
a) a survey
b) experimentation
c) observation
d) simulation
C
Respondent cooperation is NOT required in which primary data source?
a) personal survey
b) mail survey
c) telephone survey
d) observation
D
Attitudes CANNOT be studied through which primary data collection technique?
a) observation
b) mail survey
c) telephone survey
d) personal survey
A
A mystery shopper is a form of which primary data collection technique?
a) observation
b) survey
c) experimentation
d) simulation
A
A retailer determines the value of a downtown retail site through monitoring pedestrian traffic counts. This illustrates which data collection technique?
a) survey
b) observation
c) experimentation
d) simulation
B
One or more factors are manipulated under controlled conditions in which research technique?
a) questionnaire
b) observation
c) experiment
d) secondary data analysis
C
A mail order retailer found that its percent of loyal customers (those ordering $100 or more of merchandise in two consecutive years) has declined from 15 percent to 8 percent. Which form of marketing research was the retailer utilizing?
a) a retail information system
b) simulation
c) an experiment
d) obervation
A
A major advantage of a retail information system is_____.
a) the continuous nature of data collection and analysis
b) its low cost
c) the use of competitor data
d) the use of verified data from government sources
A
Frequent shopper programs and customer and vendor anaylsis are made possible through____.
a) data base management
b) data mining
c) electronic data interchange
d) data warehousing
A
Data are consolidated in one location but available locally in____.
a) electronic data interchange
b) data warehousing
c) data-base management
d) data mining
B
The process of generating, storing, and interpreting current sales figures by item has been greatly facilitated through the use of____.
a) inventory records
b) the Universal Product Code
c) profit and loss statements
d) shelf facing labels
B
Precise problem definition is necessary to____.
a) restrict data collection and analysis to meaningful material
b) assume that marketing research is continuous
c) avoid the use of intuition in problem/opportunity analysis
d) integrate marketing research and marketing information systems
A
An example of primary data is information gathered from____.
a) Bureau of Census publications
b) Competitors’ annual reports
c) company inventory reports to determine sales by geographic area
d) observation by sales personnel on customer in store behavior
D
The major distinction between primary and secondary data is that secondary data___.
a) are less costly
b) have been previously gathered for other purposes
c) have been generated by commercial research houses
d) are conducted at fixed time periods
B
A retailer is concerned about measuring the impact of Sunday store openeing in generating additional sales ( beyond the current Monday through Saturday openings). Which stage of the marketing research process is the retailer involved in?
a) generating primary data
b) examining secondary data
c) making recommendations
d) problem definition
D
Which problem definition topic is most likely to require primary data collection?
a) to determine the percent of femails living in Florida
b) to determine a retailer’s image based upon fashion leadership and pricing variables
c) to determine the growth in the service economy in terms of employment
d) to analyze the percent of adult females that work on a full-time basis
B
The use of point of sale cash register based data in conducting a study of fast selling merchandise illustrates____.
a) external secondary data
b) internal secondary data
c)an experiment
d) observation
B
A retailer has a data base of past sales by size distribution. This data base is used as a guide in ordering decisions. The data base is an example of _____.
a) external secondary data
b)internal secondary data
c)a survey
d) primary data
B
The distinction between internal and external secondary data is based on the____.
a) focus of the data
b) firm collecting the data
c) cost of data collection
d) source of the data
D
A firm can determine information about inventory movement, sales by different personnel, and sales volume through an analysis of____.
a) store observation reports
b) customer billings
c) inventory records
d) written reports
B
The proportion of a store’s sales made to shoppers who live more than 15 miles from a store (outshoppers) can be most reliably studied using___.
a) a telephone survey
b) observation
c) a personal survey
d) customer billing data
D
A retailer can generate data on merchandise turnover, order lead time, and availability of goods by examining____.
a) inventory records
b) sales figures
c) profit and loss statements
d) customer billings
A
A major advantage to the use of primary (versus secondary) data in solving a retail research problem is primary data’s___.
a) speed of collection
b) source credibility
c) lower cost
d) currency
D
A retailer needs to determine its customers’ attitudes in conjunction with a legal court case. The retailer should utilize____.
a) a nonprobability sample
b) observation
c) a probability sample
d) an experiement
C
A retailer seeks to conduct a survey that requires lengthy responses by respondents. Many questions are also difficult to understand. The retailer should utilize which survey technique?
a) observation
b) telephone survey
c) mail survey
d) personal survey
D
Which survey technique minimizes interviewer bias?
a) mail survey
b) personal survey
c) telephone survey
d) nondisguised personal survey
A
An appropriate research technique for use when a retailer wants to determine consumers’ perceptions of its store image and wishes to minimize bias is____.
a) simulation
b) a disguised survey
c) a nondisguised survey
d) observation
B
Which data collection technique cannot be used to study consumer attitudes?
a) mail questionnaires
b) telephone interviewing
c) observation
d) phone interviewing
C
A retailer seeks to determine the quality of sales personnel presentations. An appropriate primary data collection technique is____.
a) observation
b) mail survey
c) an experiment
d) simulation
A
A research technique based on actual situations that does NOT require respondent cooperation is___.
a) a mail survey
b) simulation
c) experimentation
d) observation
D
Respondent bias is minimized in which data collection technique?
a) mail survey
b) simulation
c) experimentation
d) observation
D
A store seeks to determine the percent of consumbers who pass by a given location, and the percent of these customers that purchase a given product. The most appropriate data collection technique is____.
a) mail questionaires
b) telephone interviewing
c) observation
d) phone interviewing
C
Observation is most appropriately used in the study of which stage of the consumer decision process?
a) purchase
b) post purchase behavior
c) information
d) stimulus
A
Which type of consumer behavior topic can be best studied using observation?
a) the store image of a new discounter
b) perceived risk related to sneaker purchasing behavior
c) consumer cognitive dissonance subsequent to the purchase of a new home
d) the average time spent in a convenience store
D
A researcher notes the percentage of shopers who pass by and who purchase detergents in a supermarket. The researcher is utilizing___.
a) a personal survey
b) contrived observation
c) structural observation
d) mechanical observation
C
A retailer seeks to study the impact of price on consumer’s purchases. The most appropriate technique is___.
a) an experiment
b) stimulation
c) the semantic differential
d) observation
A
Experiments generally utilize___.
a) a semantic differential
b) mechanical observation
c) multidimensional scaling
d) a controlled environment
D
The use of a control group is a common aspect of which data collection technique?
a) a survey
b) an experiment
c) observation
d) simulation
B
The us of a survey and observation under controlled conditions most closely resembles____.
a) an experiment
b) simulation
c) a semantic differential
d) multidimensional scaling
A
Cause and effect can be best measuring using___.
a) survey
b) experment
c) observation
d) simulation
B
The use of virtual reality software to conduct research through a “virtual shopping environment” is a part of ____.
a) a survey
b) observation
c) an experiment
d) simulation
D
The information needs of retail managers are collected, organized, and stored on a continuous basis in _____.
a. observation
b. retail research
c. an experiment
d. a retail information system
D
The procedure to gather, integrate, apply, and store information related to specific subject areas is _____.
a. a retail information system
b. data-base management
c. marketing research
d. data storage
B
Copies of all the data bases in a company are maintained in one location and accessible to employees at any locale through _____.
a. a retail information system
b. marketing research
c. data-base management
d. data warehousing
D
An application of data mining is _____.
a. cost containment
b. micromarketing
c. value-based retailing
d. data-base management
B
The Universal Product Code (UPC) system allows a retailer to _____.
a. monitor sales in nonfood retail establishments
b. store and monitor product sales data on an item-by-item basis
c. develop a payroll system
d. monitor accounts receivable
B
Retailers and their suppliers can regularly exchange information relating to inventory levels, delivery times, and unit sales through _____.
a. marketing research
b. electronic data interchange
c. data-base management
d. the Universal Product Code
B
Marketing research in retailing involves _____.
a. secondary data collection and analysis
b. the collection and analysis of information relating to specific issues or problems facing a retailer
c. marketing information systems development and implementation
d. the use of intuition in decision making
B
A clear statement of the topic to be studied involves which stage of the marketing research process?
a. recommendations
b. issue (problem) definition
c. secondary data collection
d. implementation
B
Information previously gathered for other purposes than the problem or issue under study is _____.
a. primary data
b. syndicated data
c. secondary data
d. a marketing research system
C
Data that can be developed through surveys, experiments, observation, and simulation are _____.
a. secondary data
b. marketing research data
c. primary data
d. marketing information systems data
C
The stage of the marketing research process that may be eliminated is _____.
a. problem definition
b. implementation of findings
c. recommendations
d. primary data generation
D
A common major disadvantage of secondary data is the _____.
a. unsuitable units of measurement
b. long time period required to collect data
c. high cost for data collection
d. known source and control over data collection
A
A major disadvantage of the use of the U.S. Census of Retail Trade is its _____.
a. lack of accuracy
b. dated nature
c. low credibility
d. sampling error
B
An example of internal secondary data is _____.
a. ProQuest
b. government census data
c. a promotional budget obtained from your firm’s advertising department
d. an annual marketing report of a competitor obtained from a Web-based source
C
An example of external secondary data is _____.
a. regular periodicals downloaded from the Web
b. annual budgets for your firm’s advertising
c. daily sales figures by retail location
d. inventory records of fast-selling goods
A
Ongoing studies are made available to many clients for a fee by _____.
a. commercial research houses
b. the U.S. government (federal)
c. channel members
d. the Business Periodicals Index
A
In a probability sample, _____.
a. every unit has an equal or known chance of being chosen for study
b. every unit studied is chosen by the researcher based on judgment or convenience
c. data are selected for use by the researcher based on their relevance
d. data cannot be extrapolated due to unknown sampling error
A
Sampling is based upon judgment or convenience in a _____.
a. probability (random) sample
b. nonprobability sample
c. telephone survey
d. simulation
B
In a survey, _____.
a. information is systematically gathered from respondents by communicating with them
b. the respondent is always told the real purpose of the study
c. past behavior is observed and recorded
d. a computer manipulates retailing factors on paper
A
Which of the following is not a survey?
a. observation
b. mail questionnaires
c. telephone questionnaires
d. person-to-person interviewing
A
The survey technique with the fastest response is a(n) _____.
a. telephone survey
b. mail survey
c. experiment
d. personal survey
A
Interviewer bias is minimized in which survey form?
a. telephone survey
b. mail survey
c. personal survey
d. semantic differential
B
Participation by incorrect respondents is a major problem in which survey?
a. telephone survey
b. personal survey
c. mail survey
d. observation
C
A respondent is always told the real purpose of a study in _____.
a. a mail survey
b. an experiment
c. observation
d. a nondisguised survey
D
Bipolar adjective scales are used with which survey instrument?
a. store positioning
b. store-image testing
c. semantic differential
d. image analysis
C
A store’s image can be studied using _____.
a. observation
b. extrapolation
c. sales data
d. the semantic differential
D
A form of research in which present behavior or the results of past behavior are viewed and recorded is _____.
a. a survey
b. experimentation
c. observation
d. simulation
C
Respondent cooperation is not required in which primary data source?
a. personal survey
b. mail survey
c. telephone survey
d. observation
D
Attitudes cannot be studied through which primary data collection technique?
a. observation
b. mail survey
c. telephone survey
d. personal survey
A
A mystery shopper is a form of which primary data collection technique?
a. observation
b. survey
c. experimentation
d. simulation
A
A retailer determines the value of a downtown retail site through monitoring pedestrian traffic counts. This illustrates which data collection technique?
a. survey
b. observation
c. experimentation
d. simulation
B
One or more factors are manipulated under controlled conditions in which research technique?
a. questionnaire
b. observation
c. experiment
d. secondary data analysis
C
A mail-order retailer found that its percent of loyal customers (those ordering $100 or more of merchandise in two consecutive years) has declined from 15 percent to 8 percent. Which form of marketing research was the retailer utilizing?
a. a retail information system
b. simulation
c. an experiment
d. observation
A
A major advantage of a retail information system is _____.
a. the continuous nature of data collection and analysis
b. its low cost
c. the use of competitor data
d. the use of verified data from government sources
A
Frequent shopper programs and customer and vendor analysis are made possible through _____.
a. data-base management
b. data mining
c. electronic data interchange
d. data warehousing
A
Data are consolidated in one location but available locally in _____.
a. electronic data interchange
b. data warehousing
c. data-base management
d. data mining
B
The process of generating, storing, and interpreting current sales figures by item has been greatly facilitated through the use of _____.
a. inventory records
b. the Universal Product Code
c. profit-and-loss statements
d. shelf facing labels
B
Precise problem definition is necessary to _____.
a. restrict data collection and analysis to meaningful material
b. assume that marketing research is continuous
c. avoid the use of intuition in problem/opportunity analysis
d. integrate marketing research and marketing information systems
A
An example of primary data is information gathered from _____.
a. Bureau of Census publications
b. competitors’ annual reports
c. company inventory reports to determine sales by geographic area
d. observation by sales personnel on customer in-store behavior
S
The major distinction between primary and secondary data is that secondary data _____.
a. are less costly
b. have been previously gathered for other purposes
c. have been generated by commercial research houses
d. are conducted at fixed time periods
B
A retailer is concerned about measuring the impact of Sunday store openings in generating additional sales (beyond the current Monday through Saturday openings). Which stage of the marketing research process is the retailer involved in?
a. generating primary data
b. examining secondary data
c. making recommendations
d. problem definition
D
Which problem definition topic is most likely to require primary data collection?
a. to determine the percent of females living in Florida
b. to determine a retailer’s image based upon fashion leadership and pricing variables
c. to determine the growth in the service economy in terms of employment
d. to analyze the percent of adult females that work on a full-time basis
B
The use of point-of-sale cash register-based data in conducting a study of fast-selling merchandise illustrates _____.
a. external secondary data
b. internal secondary data
c. an experiment
d. observation
B
A retailer has a data base of past sales by size distribution. This data base is used as a guide in ordering decisions. The data base is an example of _____.
a. external secondary data
b. internal secondary data
c. a survey
d. primary data
B
The distinction between internal and external secondary data is based on the _____.
a. focus of the data (company or industry)
b. firm collecting the data (government or commercial research house)
c. cost of data collection
d. source of the data (within or outside the firm)
D
A firm can determine information about inventory movement, sales by different personnel, and sales volume through an analysis of _____.
a. store observation reports
b. customer billings
c. inventory records
d. written reports
B
The proportion of a store’s sales made to shoppers who live more than 15 miles from a store (outshoppers) can be most reliably studied using _____.
a. a telephone survey
b. observation
c. a personal survey
d. customer billing data
D
A retailer can generate data on merchandise turnover, order lead time, and availability of goods by examining _____.
a. inventory records
b. sales figures
c. profit-and-loss statements
d. customer billings
A
A major advantage to the use of primary (versus secondary) data in solving a retail research problem is primary data’s _____.
a. speed of collection
b. source credibility
c. lower cost
d. currency
D
A retailer needs to determine its customers’ attitudes in conjunction with a legal court case. The retailer should utilize _____.
a. a nonprobability sample
b. observation
c. a probability sample
d. an experiment
C
A retailer seeks to conduct a survey that requires lengthy responses by respondents. Many questions are also difficult to understand. The retailer should utilize which survey technique?
a. observation
b. telephone survey
c. mail survey
d. personal survey
D
Which survey technique minimizes interviewer bias?
a. mail survey
b. personal survey
c. telephone survey
d. nondisguised personal survey
A
An appropriate research technique for use when a retailer wants to determine consumers’ perceptions of its store image and wishes to minimize bias is _____.
a. simulation
b. a disguised survey
c. a nondisguised survey
d. observation
B
Which data collection technique cannot be used to study consumer attitudes?
a. mail questionnaires
b. telephone interviewing
c. observation
d. phone interviewing
C
A retailer seeks to determine the quality of sales personnel presentations. An appropriate primary data collection technique is _____.
a. observation
b. a mail survey
c. an experiment
d. simulation
A
A research technique based on actual situations that does not require respondent cooperation is _____.
a. a mail survey
b. simulation
c. experimentation
d. observation
D
Respondent bias is minimized in which data collection technique?
a. mail survey
b. simulation
c. experimentation
d. observation
D
A store seeks to determine the percent of consumers who pass by a given location, and the percent of these customers that purchase a given product. The most appropriate data collection technique is _____.
a. mail questionnaires
b. telephone interviewing
c. observation
d. phone interviewing
C
Observation is most appropriately used in the study of which stage of the consumer decision process?
a. purchase
b. post-purchase behavior
c. information
d. stimulus
A
Which type of consumer behavior topic can be best studied using observation?
a. the store image of a new discounter
b. perceived risk related to sneaker purchasing behavior
c. consumer cognitive dissonance subsequent to the purchase of a new home
d. the average time spent in a convenience store
D
A researcher notes the percentage of shoppers who pass by and who purchase detergents in a supermarket. The researcher is utilizing _____.
a. a personal survey
b. contrived observation
c. structured observation
d. mechanical observation
C
A retailer seeks to study the impact of price on consumers’ purchases. The most appropriate technique is _____.
a. an experiment
b. simulation
c. the semantic differential
d. observation
A
Experiments generally utilize _____.
a. a semantic differential
b. mechanical observation
c. multidimensional scaling
d. a controlled environment
D
The use of a control group is a common aspect of which data collection technique?
a. a survey
b. an experiment
c. observation
d. simulation
B
The use of a survey and observation under controlled conditions most closely resembles _____.
a. an experiment
b. simulation
c. a semantic differential
d. multidimensional scaling
A
Cause and effect can be best measured using _____.
a. a survey
b. an experiment
c. observation
d. simulation
B
The use of virtual reality software to conduct research through a “virtual shopping environment” is a part of _____.
a. a survey
b. observation
c. an experiment
d. simulation
D