MKT 310 WK 2 Quiz 1 Chapter 12 All Possible Questions 572850

Chapter 1 1) The largest company in the world based on sales is ______. A) ExxonMobil B) Sears Roebuck C) Wal-Mart D) Marks & Spencer Answer: C Diff: 1 Page Ref: 4 Skill: Terminology/Concept2) Which of the following activities does not fit within the scope of retailing? A) medical services to families B) direct-to-home sales C) vending purchases by factory workers D) sales to wholesalers Answer: D Diff: 2 Page Ref: 4 Skill: Terminology/Concept3) Which statement concerning retailing is correct? A) Retailing activities must involve a store. B) Retailing activities do not have to include a retailer. C) Retailing activities cannot be performed by a wholesaler. D) Retailing activities involve goods, not services. Answer: B Diff: 2 Page Ref: 4 Skill: Terminology/Concept4) According to the Department of Commerce, annual U.S. retail store sales are about ______. A) $200 billion B) $1.5 trillion C) $3.5 trillion D) $5.0 trillion Answer: D Diff: 1 Page Ref: 6 Skill: Terminology/Concept1 5) About how many people are employed by traditional retailers in the United States? A) 11 million B) 16 million C) 25 million D) 34 million Answer: C Diff: 1 Page Ref: 7 Skill: Terminology/Concept6) Data on U.S. retail employment understates actual employment because it does not include ______. A) store or department managers B) part-time personnel C) seasonal employees and unreported workers in family businesses D) teenagers under 18 who are full-time students Answer: C Diff: 1 Page Ref: 7 Skill: Terminology/Concept7) In 2007, the four largest retailing companies (in order of size from largest to fourth largest on the basis of sales) were ______. A) Wal-Mart, Sears, Safeway, and J.C. Penney B) Wal-Mart, Home Depot, CVS Caremark, and Kroger C) Wal-Mart, Kmart, Kroger, and Federated Department Stores D) Wal-Mart, Woolworth, Kroger, and Kmart Answer: B Diff: 1 Page Ref: 7 Skill: Terminology/Concept8) On the average, ______percent of every sales dollar goes to grocery stores as payment for the activities they perform. A) 12 B) 18 C) 28 D) 50 Answer: C Diff: 1 Page Ref: 7 Skill: Terminology/Concept2 9) In 2007, the 10 largest U.S. retailers had average after-tax profits of about ______percent of sales. A) 0.5 B) 1.0 C) 2.5 D) 3.5 Answer: D Diff: 1 Page Ref: 6 Skill: Terminology/Concept10) The channel of distribution consists of ______. A) the movement of goods and services from manufacturer to consumer-user B) all of the businesses and people involved in the physical movement and transfer of ownership of goods and services from producer to consumer C) all independent intermediaries involved with the transfer of title of goods and services D) all middlemen involved with the physical movement of goods and services Answer: B Diff: 1 Page Ref: 7-8 Skill: Terminology/Concept11) Which of the following is generally not considered a party in a typical channel of distribution? A) retailer B) final consumer C) wholesaler D) advertising agency Answer: D Diff: 1 Page Ref: 8 Skill: Terminology/Concept12) A retailer collects an assortment of goods and services from various sources, buys in large quantities, and sells in small amounts to final consumers. This is referred to as ______. A) one-stop shopping B) the retail concept C) retail transactional efficiency D) the sorting process Answer: D Diff: 1 Page Ref: 8 Skill: Terminology/Concept3 13) The sorting process helps final consumers through ______. A) allowing store credit B) providing one-stop shopping convenience C) operating long hours D) providing delivery services Answer: B Diff: 2 Page Ref: 8 Skill: Terminology/Concept14) The sorting process helps manufacturers by ______. A) paying on the basis of when goods are shipped, not sold B) offering an assortment of goods that are collected from a large number of suppliers C) enabling one-stop shopping D) buying large orders at one time Answer: D Diff: 2 Page Ref: 8 Skill: Terminology/Concept15) A retailer sells to customers through traditional retail stores, mail-order catalogs, and a Web site. This illustrates ______. A) vertical integration B) the sorting process C) multi-channel retailing D) the importance of impulse retailing Answer: C Diff: 1 Page Ref: 8 Skill: Terminology/Concept16) Manufacturers can increase their power in a distribution channel through ______. A) operating their own retail facilities B) developing dealer brands C) expanding into foreign markets D) use of intensive distribution Answer: A Diff: 2 Page Ref: 8-9 Skill: Terminology/Concept17) Retailers have increased their power in the channel of distribution due to ______. A) the growing number of regional and national chains B) the growth of franchising as an alternative to independent ownership C) the increased market share of national brands D) shopping center contract provisions' limiting the range of goods to be sold Answer: A Diff: 2 Page Ref: 9 Skill: Terminology/Concept4 18) Channel relations tend to be the smoothest in ______distribution. A) exclusive B) selective C) intensive D) wide Answer: A Diff: 1 Page Ref: 10 Skill: Terminology/Concept19) In exclusive distribution, suppliers enter into agreements with ______. A) multiple retailers that designate the latter as the only companies in specified geographic areas that are allowed to carry certain brands and/or product lines B) one or a few retailers that designate the latter as the only ones in specified geographic areas to carry certain brands or product lines C) any retailer with ample credit that designates the latter to be allowed to carry certain brands and/or product lines D) a retailer stating that the retailer cannot carry any competing product lines as a precondition for receiving favorable discounts Answer: B Diff: 2 Page Ref: 10 Skill: Terminology/Concept20) A retailer often must limit its selection of brands in ______distribution. A) wide B) intensive C) selective D) exclusive Answer: D Diff: 2 Page Ref: 10 Skill: Terminology/Concept21) Which form of distribution has the effect of most severely limiting a manufacturer's long-run sales potential? A) intensive distribution B) selective distribution C) dual distribution D) exclusive distribution Answer: D Diff: 1 Page Ref: 10 Skill: Terminology/Concept5 22) A manufacturer seeking to maximize its sales should utilize ______distribution. A) intensive B) dual C) exclusive D) selective Answer: A Diff: 2 Page Ref: 10 Skill: Terminology/Concept23) Competition among retailers selling the same goods and services is highest in which form of distribution? A) intensive distribution B) exclusive distribution C) selective distribution D) vertical integration Answer: A Diff: 2 Page Ref: 10 Skill: Terminology/Concept24) Suppliers sell through a moderate number of retailers in ______distribution. A) intensive B) dual C) exclusive D) selective Answer: D Diff: 1 Page Ref: 10 Skill: Terminology/Concept25) Point-of-purchase displays and the placement of goods in visible, high-traffic store locations are important in retailing because of the need to ______. A) sell services to a broad target market B) generate impulse sales C) minimize the need for warehouse space D) limit pilferage to an acceptable level Answer: B Diff: 2 Page Ref: 11 Skill: Terminology/Concept26) A retail strategy is ______. A) the overall plan guiding a retail firm B) the choice and satisfaction of a target market C) an integrated effort by a retailer D) a goal-directed effort by a retailer Answer: A Diff: 1 Page Ref: 12 Skill: Terminology/Concept6 27) The first stage in development of a retail strategy should be to ______. A) develop an overall long-run plan B) decide on the appropriate target market C) determine the type of business and specific orientation of the firm D) implement an integrated strategy Answer: C Diff: 1 Page Ref: 10 Skill: Terminology/Concept28) Which factor has had the greatest impact on the success of Target Stores? A) its low pricing strategy B) its development and use of a retail strategic plan C) its excellent physical distribution systems D) its outstanding customer service Answer: B Diff: 1 Page Ref: 12 Skill: Terminology/Concept29) Which statement concerning Target Stores' retail strategy is not correct? A) Target focuses on consumers with middle incomes, who are well educated. B) Excellent customer service is an important part of Target's success. C) Despite its success, Target has not done a good job of positioning itself. D) Target has never lost sight of its discount niche. Answer: C Diff: 2 Page Ref: 13 Skill: Terminology/Concept30) The retailing concept is comprised of ______. A) objectives, implementable actions, feedback, and strategy adjustment B) short- and long-term objectives, organization mission, and the development of a competitive defensible strategy C) customer orientation, coordinated effort, value-driven, and goal orientation D) niche strategy, cost leadership, and focus Answer: C Diff: 1 Page Ref: 12 Skill: Terminology/Concept31) All of the elements in a retail offering that encourage or inhibit consumers during their contact with a given retailer comprises ______. A) store atmosphere B) the retail concept C) the total retail experience D) retail image Answer: C Diff: 1 Page Ref: 14 Skill: Terminology/Concept7 32) Which of the following is not part of the total retail experience for a men's clothing retailer? A) offering store credit B) corporate form of ownership C) the store's atmosphere D) the brands carried Answer: A Diff: 2 Page Ref: 15 Skill: Terminology/Concept33) The identifiable, but sometimes intangible, activities undertaken by a retailer in conjunction with the basic goods and services it sells is referred to as ______. A) the retailing concept B) the total retail experience C) relationship retailing D) customer service Answer: D Diff: 1 Page Ref: 16 Skill: Terminology/Concept34) A characteristic of relationship retailing is A) reliance on a data base of current customers B) search for new customers C) constant bargaining between customers and suppliers D) low trust among channel members Answer: A Diff: 2 Page Ref: 18 Skill: Terminology/Concept35) The underlying principle of a strategic approach to the study of retailing is that a firm needs to ______. A) be a low-cost provider B) base all of its decisions on retail research C) be aware of opportunities and constraints in decision making D) plan for and adapt to a complex, changing retail environment Answer: D Diff: 2 Page Ref: 18-19 Skill: Terminology/Concept36) Which of the following illustrates a retail transaction? A) a supermarket purchasing a computer system to improve its inventory management B) a discount retailer signing a 10-year lease on a new store location C) a wholesaler selling new windows to a home improvement center for resale to homeowners D) an attorney purchasing a computer in conjunction with a hobby Answer: D Diff: 2 Page Ref: 4 Skill: Applied/Comprehensive/Integrative8 37) Which statement concerning retailing is not correct? A) Retailing involves both goods and services. B) Retailing must involve a retailer. C) Direct selling is part of retailing. D) Retailing is the final stage in a channel of distribution. Answer: B Diff: 2 Page Ref: 4 Skill: Applied/Comprehensive/Integrative38) An optical chain purchasing goods from dozens of vendors (these include frame companies, lens firms, sunglass manufacturers, and eyeglass case firms) demonstrates ______. A) a channel of distribution B) economies of scale C) vertical integration D) the sorting process Answer: D Diff: 2 Page Ref: 8 Skill: Applied/Comprehensive/Integrative39) Without the sorting process, final customers would ______. A) not purchase goods on impulse B) not receive credit C) have to shop at individual manufacturers D) reduce the number of transactions necessary to complete a purchase Answer: C Diff: 2 Page Ref: 8 Skill: Applied/Comprehensive/Integrative40) The sorting process enables manufacturers to ______. A) specialize in the production and marketing of a narrow product line B) vertically integrate C) increase their channel control over retailers D) dictate final selling prices to retailers Answer: A Diff: 2 Page Ref: 8 Skill: Applied/Comprehensive/Integrative41) Consumers are able to shop in a "one-stop shopping environment" due to the ______. A) increased size of stores B) development of franchising C) sorting process D) development of prototype stores Answer: C Diff: 1 Page Ref: 8 Skill: Applied/Comprehensive/Integrative9 42) A retailer is able to appeal to different target markets, as well as reach consumers in multiple places, through engaging in ______. A) Web sales B) multi-channel retailing C) relationship retailing D) vertical integration Answer: B Diff: 1 Page Ref: 8 Skill: Applied/Comprehensive/Integrative43) An example of the contrasting viewpoints of retailers and manufacturers is a ______. A) manufacturer-sponsored cooperative advertising program B) manufacturer attempting to increase national brand display space C) manufacturer sponsoring training programs for retail sales personnel D) manufacturer sponsoring point-of-purchase materials Answer: B Diff: 2 Page Ref: 9 Skill: Applied/Comprehensive/Integrative44) Channel cooperation and control is greatest when ______. A) intensive distribution is utilized B) selective distribution is utilized C) exclusive distribution is utilized D) manufacturers own and operate their own retailing facilities Answer: D Diff: 2 Page Ref: 10 Skill: Applied/Comprehensive/Integrative45) In which form of distribution do retailers typically agree to limit their assortment of brands in a selected product category? A) intensive B) dual C) exclusive D) selective Answer: C Diff: 1 Page Ref: 10 Skill: Applied/Comprehensive/Integrative46) A manufacturer seeking maximum retailer cooperation should utilize which form of distribution? A) exclusive distribution B) intensive distribution C) selective distribution D) dual distribution Answer: A Diff: 1 Page Ref: 10 Skill: Applied/Comprehensive/Integrative10 47) Retail price competition is generally lowest in ______distribution. A) dual B) exclusive C) intensive D) selective Answer: B Diff: 2 Page Ref: 10 Skill: Applied/Comprehensive/Integrative48) The greatest advantage to a manufacturer's use of exclusive distribution is ______. A) a high level of retail price competition B) close channel cooperation C) maximizing long-run sales potential D) convenience of location to customers Answer: B Diff: 2 Page Ref: 10 Skill: Applied/Comprehensive/Integrative49) The potential for channel conflict (due to the high power of a retailer relative to a manufacturer) is least in which form of distribution? A) dual distribution B) exclusive distribution C) selective distribution D) intensive distribution Answer: B Diff: 2 Page Ref: 10 Skill: Applied/Comprehensive/Integrative50) Retail price competition is generally highest in ______distribution. A) dual B) exclusive C) intensive D) selective Answer: C Diff: 2 Page Ref: 10 Skill: Applied/Comprehensive/Integrative51) Convenience goods are generally marketed using ______distribution. A) dual B) exclusive C) selective D) intensive Answer: D Diff: 2 Page Ref: 10 Skill: Applied/Comprehensive/Integrative11 52) Neither channel cooperation nor long-term sales potential is maximized in ______distribution. A) vertical B) exclusive C) intensive D) selective Answer: D Diff: 2 Page Ref: 10 Skill: Applied/Comprehensive/Integrative53) The training of personnel to sell related merchandise (such as batteries, a case, and extra film with a camera) represents an attempt to maximize ______. A) impulse sales B) manufacturer cooperation C) self-service merchandising D) the number of customers drawn to a store Answer: A Diff: 2 Page Ref: 11 Skill: Applied/Comprehensive/Integrative54) Point-of-purchase displays, self-service merchandising, and the use of high-traffic locations to place selected goods represents an attempt by retailers to ______. A) control expenses B) increase the number of potential shoppers who enter a retail store C) reduce inventory levels D) increase impulse sales Answer: D Diff: 2 Page Ref: 11 Skill: Applied/Comprehensive/Integrative55) Loss leaders, weekly promotions, an excellent location, and special events (such as cooking classes) are more common in retailing than in wholesaling because ______. A) profit margins in retailing are higher than in wholesaling B) retailing is the final stage in the channel of distribution C) most retail customers must be drawn to a store location D) the average sale in retailing is smaller than in wholesaling Answer: C Diff: 2 Page Ref: 11 Skill: Applied/Comprehensive/Integrative12 56) Retailers typically study prospective locations in terms of the characteristics of shoppers, neighboring retailers, pedestrian traffic counts by day of week and hour, and parking facilities. This intensive analysis is due to the ______. A) importance of impulse sales to all retailers B) long-term nature of retail leases C) high rent charged for store locations D) need to attract consumers to a store location Answer: D Diff: 2 Page Ref: 11 Skill: Applied/Comprehensive/Integrative57) Which statement concerning strategic planning is correct? A) Strategic plans can be best used by large retailers. B) Strategic planning should be conducted on an annual basis. C) Strategic plans should emphasize attracting customers via price-oriented promotions. D) Strategic planning is a continuous process. Answer: D Diff: 2 Page Ref: 12 Skill: Applied/Comprehensive/Integrative58) Strategic planning in retailing ______. A) can be practiced by both small and large retailers B) requires a comprehensive computer-based marketing information system to be properly implemented C) should focus on short-run opportunities D) requires the use of planning specialists with MBA degrees to succeed Answer: A Diff: 2 Page Ref: 12 Skill: Applied/Comprehensive/Integrative59) A characteristic of a retail strategy is its ______. A) attention to personnel availability and training B) attention to short-run success C) systematic assessment of the environment to ascertain opportunities and threats D) focus on past operations and success Answer: C Diff: 2 Page Ref: 12 Skill: Applied/Comprehensive/Integrative13 60) The selection of an appropriate target market by a retailer relates to which element of the retailing concept? A) goal orientation B) customer orientation C) coordinated effort D) value orientation Answer: B Diff: 2 Page Ref: 14 Skill: Applied/Comprehensive/Integrative61) An off-price chain specializing in fashion merchandise at deep discounts uses low-rent locations, self-service merchandising, and inexpensive fixtures. Alterations are not available and merchandise can be returned for store credit only. The chain illustrates which element of the retailing concept? A) customer orientation B) coordinated effort C) competitive intelligence D) goal orientation Answer: B Diff: 2 Page Ref: 14 Skill: Applied/Comprehensive/Integrative62) A major home improvement retailer desires to increase its sales at the rate of 20 percent per year. This requires new stores in existing markets (to increase market penetration), renovation of existing stores that are over seven years old, and entrance into new domestic and foreign markets. The retailer also plans to pay increased attention to the female do-it-yourself segment of its market by hiring more female salespeople, gearing workshops on home repair to women, and providing delivery service at a small fee. This illustrates ______. A) goal orientation B) customer orientation C) coordinated effort D) the retailing concept Answer: C Diff: 2 Page Ref: 14 Skill: Applied/Comprehensive/Integrative63) A tire retailer guarantees to match all advertised specials of competitors, includes installation and balancing in its quoted price, and specializes in well-known tire brands. This illustrates which element of the retailing concept? A) value-driven B) customer service C) competitive intelligence D) goal orientation Answer: A Diff: 1 Page Ref: 14 Skill: Applied/Comprehensive/Integrative14 64) A major disadvantage of the retailing concept as applied to the development of a retail strategy is that it does not focus on ______. A) the development of a coordinated strategy B) a firm's competitive advantages C) specific objectives such as market share or return on sales D) the satisfaction of a firm's target market Answer: B Diff: 2 Page Ref: 14 Skill: Applied/Comprehensive/Integrative65) A retailer's focusing on store atmosphere, customer service, and exceeding a consumer's expectations is concerned with ______. A) the total retail experience B) employee empowerment C) relationship retailing D) a value orientation Answer: A Diff: 2 Page Ref: 15 Skill: Applied/Comprehensive/Integrative66) Which of the following is not an important characteristic of relationship retailing? A) the continuous monitoring of customer satisfaction B) the development and maintenance of a data base on all customers C) the seeking of long-term bonds with existing customers D) the continuous seeking of new customers to replace lost customers Answer: D Diff: 2 Page Ref: 18 Skill: Applied/Comprehensive/Integrative67) The use of customer loyalty programs by a hotel chain that grants rewards, such as room upgrades and free rooms to loyal customers, is an important part of ______. A) the total retail experience B) relationship retailing C) customer service D) the retailing concept Answer: B Diff: 2 Page Ref: 18 Skill: Applied/Comprehensive/Integrative68) Which retail strategy focuses on existing customers? A) the retail concept B) the functional approach to retailing C) relationship retailing D) transactional retailing Answer: C Diff: 2 Page Ref: 18 Skill: Applied/Comprehensive/Integrative15 69) The functional orientation to the study of retailing stresses ______. A) retail activities B) retail planning C) adaptation of retail strategy to match the retail environment D) opportunities and constraints in decision making Answer: A Diff: 2 Page Ref: 18 Skill: Applied/Comprehensive/Integrative70) The strategic approach to the study of retailing stresses ______. A) retail institutions B) retail profits C) legal issues D) retail planning Answer: D Diff: 2 Page Ref: 18-19 Skill: Applied/Comprehensive/Integrative71) Retailing is an intermediate stage in the channel of distribution. Answer: FALSE Diff: 1 Page Ref: 4 Skill: Terminology/Concept72) Mail and telephone orders, direct selling, and vending machine sales are not part of retailing. Answer: FALSE Diff: 2 Page Ref: 5 Skill: Terminology/Concept73) The largest retailer in the United States (in terms of sales) is Sears Holding. Answer: FALSE Diff: 1 Page Ref: 7 Skill: Terminology/Concept74) Through the sorting process, a retailer collects an assortment of goods and services from various suppliers and offers them to customers in small quantities. Answer: TRUE Diff: 2 Page Ref: 8 Skill: Terminology/Concept75) A retailer uses multiple retail formats in multi-channel retailing. Answer: TRUE Diff: 1 Page Ref: 8 Skill: Terminology/Concept16 76) Through the retail concept, the retailer bridges the gap between the needs of manufacturers and customers. Answer: FALSE Diff: 2 Page Ref: 8 Skill: Terminology/Concept77) Retailers and their suppliers have common viewpoints relating to channel control, the intensity of distribution, and the setting of final retail prices. Answer: FALSE Diff: 2 Page Ref: 9 Skill: Terminology/Concept78) Channel relations are generally smoothest when intensive distribution is used. Answer: FALSE Diff: 1 Page Ref: 10 Skill: Terminology/Concept79) Generally, a manufacturer can maximize its long-run sales potential through the use of intensive distribution. Answer: TRUE Diff: 1 Page Ref: 10 Skill: Terminology/Concept80) Retailers seek to increase impulse purchases through point-of-purchase displays and attractive store layouts. Answer: TRUE Diff: 1 Page Ref: 11 Skill: Terminology/Concept81) The retailing concept is comprised of customer orientation, coordinated effort, value- driven, and goal orientation. Answer: TRUE Diff: 1 Page Ref: 14 Skill: Terminology/Concept82) A retailer's customer service strategy includes both tangible and intangible elements. Answer: TRUE Diff: 2 Page Ref: 16 Skill: Terminology/Concept83) A customer's satisfaction with a retailer's customer service depends on expectations and past experience. Answer: TRUE Diff: 1 Page Ref: 16 Skill: Terminology/Concept17 84) Relationship retailing focuses on the need for continuous attraction of new customers. Answer: FALSE Diff: 1 Page Ref: 18 Skill: Terminology/Concept85) An institutional approach to the study of retailing concentrates on the activities that retailers must perform. Answer: FALSE Diff: 1 Page Ref: 18 Skill: Terminology/Concept86) Manufacturers, wholesalers, and importers perform retail activities when they sell goods and services to final consumers. Answer: TRUE Diff: 2 Page Ref: 4 Skill: Applied/Comprehensive/Integrative87) The sorting process allows manufacturers to specialize in a narrow product line, while allowing final consumers to have one-stop shopping. Answer: TRUE Diff: 2 Page Ref: 8 Skill: Applied/Comprehensive/Integrative88) Retailers purchase goods in large quantities and sell them in small quantities. This represents an important aspect of the retailing concept. Answer: FALSE Diff: 2 Page Ref: 8 Skill: Applied/Comprehensive/Integrative89) A retailer can appeal to diverse target markets through multi-channel retailing. Answer: TRUE Diff: 2 Page Ref: 8 Skill: Applied/Comprehensive/Integrative90) A retailer that uses a "bricks-and-clicks" strategy consisting of traditional stores, as well as a Web site, engages in multi-channel retailing. Answer: TRUE Diff: 2 Page Ref: 8 Skill: Applied/Comprehensive/Integrative91) While close cooperation between manufacturers and retailers is fostered in intensive distribution, this form of distribution generally does not allow a manufacturer to achieve maximum sales for a product. Answer: FALSE Diff: 2 Page Ref: 10 Skill: Applied/Comprehensive/Integrative18 92) Exclusive distribution decreases price competition among retailers. Answer: TRUE Diff: 1 Page Ref: 10 Skill: Applied/Comprehensive/Integrative93) Retailer support for a manufacturer is greatest in exclusive distribution. Answer: TRUE Diff: 2 Page Ref: 10 Skill: Applied/Comprehensive/Integrative94) Channel conflict is minimized in intensive distribution. Answer: FALSE Diff: 2 Page Ref: 10 Skill: Applied/Comprehensive/Integrative95) Manufacturers and retailers have a closer partnership in the marketing of goods and services in selective distribution than in exclusive distribution. Answer: FALSE Diff: 2 Page Ref: 10 Skill: Applied/Comprehensive/Integrative96) The placement of in-store displays in high-traffic areas is designed to increase impulse purchases. Answer: TRUE Diff: 1 Page Ref: 11 Skill: Applied/Comprehensive/Integrative97) Only large firms can successfully utilize a retail strategy. Answer: FALSE Diff: 2 Page Ref: 12 Skill: Applied/Comprehensive/Integrative98) Store atmosphere, retail image, and customer service are aspects of the total retail experience. Answer: TRUE Diff: 2 Page Ref: 15 Skill: Applied/Comprehensive/Integrative99) A focus on long-run customer satisfaction is an important component of relationship retailing. Answer: TRUE Diff: 2 Page Ref: 18 Skill: Applied/Comprehensive/Integrative19 100) The underlying principle of a strategic approach to the study of retailing is that a retail firm needs to plan and revise its plans continually in order to adapt to a changing environment. Answer: TRUE Diff: 2 Page Ref: 18-19 Skill: Applied/Comprehensive/Integrative101) Describe how a manufacturer and a wholesaler can each engage in retailing activity. Diff: 1 Page Ref: 4102) Evaluate the implications of the sorting process from the perspectives of the manufacturer, the retailer, and the consumer. Diff: 1 Page Ref: 8103) Identify the major pros and cons of the use of multi-channel retailing by a clothing retailer that sells designer apparel through both in-store and Web-based outlets. Diff: 2 Page Ref: 8104) a. Under what circumstances should a manufacturer utilize exclusive distribution? Explain your answer. b. Under what circumstances should a manufacturer utilize intensive distribution? Explain your answer. Diff: 2 Page Ref: 10105) Describe the divergent viewpoints of retailers and their suppliers with respect to competition in the marketplace, product image, and distribution rights. Diff: 1 Page Ref: 10106) a. Describe the special characteristics of retailing. b. What are the special problems and opportunities that retailers face because of these characteristics? Diff: 1 Page Ref: 10-11107) Apply the six steps in strategic planning to your college store. Diff: 2 Page Ref: 12108) Describe how Costco applies the retailing concept. Diff: 2 Page Ref: 12-14109) Describe the implications of the retailing concept with regard to target market selection, the use of marketing research, internal financial reporting systems, the role of planning, and employee incentives. Diff: 2 Page Ref: 14-15110) Develop training program guidelines to increase the level of customer service in Best Buy store location. Diff: 2 Page Ref: 16-1820 111) Develop a checklist to determine if a major department store chain practices relationship retailing. Diff: 2 Page Ref: 18112) Distinguish among institutional, functional, and strategic approaches to the study of retailing. Diff: 1 Page Ref: 1821 Chapter 2 1) All of the activities and processes that provide a certain value for the customer are referred to as ______. A) a value chain B) customer service C) a value delivery system D) relationship retailing Answer: A Diff: 1 Page Ref: 29 Skill: Terminology/Concept2) The bundle of benefits offered to consumers through a channel of distribution is ______. A) a value chain B) customer service C) a value delivery system D) relationship retailing Answer: A Diff: 1 Page Ref: 29 Skill: Terminology/Concept3) An important component of the value chain concept is ______. A) the inevitability of channel conflict B) dependency of each channel member on one another C) the need for independence among channel members D) the need to minimize total channel costs Answer: B Diff: 2 Page Ref: 29 Skill: Terminology/Concept4) Just-in-time inventory management and electronic data interchange are examples of ______. A) a value chain B) channel conflict C) seamless logistics management D) direct store delivery Answer: A Diff: 2 Page Ref: 29 Skill: Terminology/Concept22 5) The minimum value chain elements a given customer segment expects from a type of retailer is a(n) ______. A) proposed retail strategy B) augmented retail strategy C) expected retail strategy D) potential retail strategy Answer: C Diff: 1 Page Ref: 30 Skill: Terminology/Concept6) Which of the following does not comprise a competitive advantage to a retailer? A) a proposed retail strategy B) an augmented retail strategy C) an expected retail strategy D) a potential retail strategy Answer: C Diff: 1 Page Ref: 30 Skill: Terminology/Concept7) A clean store environment, adequate parking facilities, and standard return privileges constitute a(n) ______. A) proposed retail strategy B) augmented retail strategy C) expected retail strategy D) potential retail strategy Answer: C Diff: 1 Page Ref: 30 Skill: Terminology/Concept8) A unique strategy that no competing retailer in a given retail format has perfected constitutes a(n) ______. A) proposed retail strategy B) augmented retail strategy C) expected retail strategy D) potential retail strategy Answer: D Diff: 1 Page Ref: 30 Skill: Terminology/Concept23 9) A retailer's focus on satisfaction of existing customers through seeking to form and maintain long-term bonds with customers is referred to as ______. A) commitment-based retailing B) customer satisfaction C) relationship retailing D) SERVQUAL Answer: C Diff: 2 Page Ref: 32 Skill: Terminology/Concept10) The customer base, customer service, customer satisfaction, and loyalty programs and defection rates are components of ______. A) the American Consumer Satisfaction Index (ACSI) B) customer satisfaction C) the marketing concept applied to retailing D) relationship retailing Answer: D Diff: 1 Page Ref: 32 Skill: Terminology/Concept11) Which statement concerning a retailer's core customers is not correct? A) A retailer's core customers are generally least price conscious. B) A retailer's core customers should represent its target market. C) A retailer's core customers deserve special treatment. D) A retailer's core customers prefer long-term relationships. Answer: A Diff: 2 Page Ref: 33 Skill: Terminology/Concept12) Activities that enhance the shopping experience and give retailers a competitive advantage are referred to as a(n) ______. A) customer loyalty program B) potential customer service C) expected customer service D) augmented customer service Answer: D Diff: 2 Page Ref: 33 Skill: Terminology/Concept24 13) A customer is billed monthly on the basis of his/her outstanding cumulative balance in a(n) ______. A) debit account B) open credit account C) revolving credit account D) option credit account Answer: C Diff: 1 Page Ref: 36 Skill: Terminology/Concept14) A customer must pay his/her full bill when it is due in a(n) ______. A) debit account B) open credit account C) revolving credit account D) option credit account Answer: B Diff: 1 Page Ref: 36 Skill: Terminology/Concept15) Partial, revolving payments are not permitted in a(n) ______. A) debit account B) open credit account C) revolving credit account D) option credit account Answer: B Diff: 1 Page Ref: 36 Skill: Terminology/Concept16) A retailer can reward its best customers through ______. A) everyday low pricing B) manufacturer-sponsored coupons C) customer loyalty programs D) contests and sweepstakes Answer: C Diff: 1 Page Ref: 38 Skill: Terminology/Concept17) A vital component of a customer loyalty program is ______. A) restricted membership B) new rules of participation C) standardized letters to participants D) a database to track consumer purchases Answer: D Diff: 2 Page Ref: 38 Skill: Terminology/Concept25 18) An ongoing relationship between all the parties that develop, produce, deliver, and sell particular goods and services is referred to as ______. A) a value delivery system B) channel cooperation C) a channel partnership D) vertical integration Answer: A Diff: 1 Page Ref: 39 Skill: Terminology/Concept19) A retailer seeks to maximize the profitability of its inventory assortment through ______. A) Efficient Consumer Response B) category management C) optimal space planning D) everyday low pricing Answer: B Diff: 2 Page Ref: 40 Skill: Terminology/Concept20) Consumers lease physical products for a specified period of time with ______services. A) owned-goods B) rented-goods C) intangible D) nongoods Answer: B Diff: 1 Page Ref: 41 Skill: Terminology/Concept21) Airline travel is an example of a(n) ______service. A) rented-goods B) regulated goods C) nongoods D) owned-goods Answer: A Diff: 2 Page Ref: 41 Skill: Terminology/Concept22) Consumers have goods that they own repaired, maintained, or altered with ______services. A) nongoods B) repair C) rented-goods D) owned-goods Answer: D Diff: 1 Page Ref: 41 Skill: Terminology/Concept26 23) Lawn care and house painting are examples of ______services. A) repair B) owned-goods C) nongoods D) rented-goods Answer: B Diff: 1 Page Ref: 41 Skill: Terminology/Concept24) Tutoring is an example of a(n) ______service. A) repair B) owned-goods C) nongoods D) rented-goods Answer: C Diff: 1 Page Ref: 42 Skill: Terminology/Concept25) Intangibility particularly affects ______services. A) nongoods B) repair C) rented-goods D) owned-goods Answer: A Diff: 2 Page Ref: 42 Skill: Terminology/Concept26) Inseparability for a service provider affects which element of a retail strategy? A) the setting of a price B) advertising the firm in a distinctive manner C) accommodating demand in peak periods D) the establishment of branch units Answer: D Diff: 2 Page Ref: 42 Skill: Terminology/Concept27) "Revenues from an "unrented hotel room are lost forever" refers to which characteristic of services? A) the perishability of services B) the variability of a service's quality C) the inseparability of the producer from the service D) the inseparability of the service from the service provider Answer: A Diff: 2 Page Ref: 42 Skill: Terminology/Concept27 28) Which statement concerning retail technology is not correct? A) The roles of technology and humans must be clear and consistent with the objectives and style of a business. B) Technology can be viewed as impersonal and cold by some consumers. C) Consumers should be forced to use the most advanced technology as a means of cost control. D) Customers now expect certain technological advances, such as feedback on product availability. Answer: C Diff: 2 Page Ref: 43-44 Skill: Terminology/Concept29) Electronic banking involves ______. A) consumers being able to complete transactions any day, any hour at both bank and nonbank locations B) weekly bank statements that reflect the past week's transactions C) the use of a national debit transfer system D) the use of a national credit reporting system Answer: A Diff: 2 Page Ref: 44 Skill: Terminology/Concept30) A "smart card" is a form of a(n) ______. A) open credit plan B) layaway plan C) electronic payment plan D) revolving credit plan Answer: C Diff: 2 Page Ref: 44 Skill: Terminology/Concept31) Retailers can quickly complete customer transactions, amass sales data, and adjust inventory through ______. A) electronic data interchange B) data warehousing C) computer-assisted ordering system D) point-of-sale scanning equipment Answer: D Diff: 1 Page Ref: 44-45 Skill: Terminology/Concept28 32) ______relates to the moral principles and values of a retailer. A) Social responsibility B) Ethics C) The golden rule D) Consumerism Answer: B Diff: 1 Page Ref: 46 Skill: Terminology/Concept33) The balancing of corporate citizenship with a fair level of profits for stockholders, management, and employees concerns ______. A) social responsibility B) ethics C) the golden rule D) consumerism Answer: A Diff: 1 Page Ref: 48 Skill: Terminology/Concept34) The activities of government, business, and other organizations to protect people from practices infringing upon their rights as consumers is ______. A) consumerism B) advertising regulation C) a consumer orientation D) social responsibility Answer: A Diff: 1 Page Ref: 49 Skill: Terminology/Concept35) The right to safety, information, choice, and to be heard directly concern ______. A) social responsibility B) ethics C) the golden rule D) consumerism Answer: D Diff: 2 Page Ref: 49 Skill: Terminology/Concept36) Which statement concerning value is not correct? A) Value is based on shoppers' perceptions. B) Value is based on perceived benefits received versus the price paid. C) Value relates to tangible product dimensions. D) A price-oriented shopper seeks low prices. Answer: C Diff: 1 Page Ref: 28 Skill: Applied/Comprehensive/Integrative29 37) The major difference between value and a value chain is that only ______. A) value covers tangible benefits B) value covers intangible benefits C) the value chain relates to a channel of distribution D) the value chain covers the total bundle of benefits received by consumers Answer: B Diff: 2 Page Ref: 28-29 Skill: Applied/Comprehensive/Integrative38) Which retail strategy does not provide a differential advantage to a consumer? A) optimal retail strategy B) augmented retail strategy C) expected retail strategy D) potential retail strategy Answer: C Diff: 2 Page Ref: 30 Skill: Applied/Comprehensive/Integrative39) A retailer bases its overall customer service strategy on providing a 7-day return policy, having sufficient quantities of advertised goods on hand, and well-lit parking areas. The retailer's retail strategy can be described as a(n) ______. A) optimal retail strategy B) augmented retail strategy C) expected retail strategy D) potential retail strategy Answer: C Diff: 2 Page Ref: 30 Skill: Applied/Comprehensive/Integrative40) Which return policy can be viewed as part of an augmented retail strategy? A) 7-day return policy B) 10-day return policy C) exchanges allowable but no money-back guarantee D) unconditional money-back guarantee Answer: D Diff: 2 Page Ref: 30 Skill: Applied/Comprehensive/Integrative41) An expected retail strategy for a ______can be an augmented retail strategy for a ______. A) costly specialty store; discount store B) warehouse club; department store C) shopping center; shopping district D) chain store; independent retailer Answer: A Diff: 2 Page Ref: 30 Skill: Applied/Comprehensive/Integrative30 42) The optimal level of a value-oriented retail strategy is a(n) ______. A) augmented retail strategy B) potential retail strategy C) expected retail strategy D) optimal retail strategy Answer: B Diff: 2 Page Ref: 30 Skill: Applied/Comprehensive/Integrative43) Relationship retailing can be distinguished from other retail strategies in that it stresses ______. A) long-term relationships with existing customers B) obtaining a constant stream of new customers C) short-term relationships with both existing and new customers D) short-term relationships with highly profitable customers Answer: A Diff: 2 Page Ref: 32 Skill: Applied/Comprehensive/Integrative44) A regional airline found that its best 10 percent of customers accounted for 35 percent of its total revenues. These customers comprise the hotel's ______. A) expected customers B) niche customers C) loyal customers D) core customers Answer: D Diff: 1 Page Ref: 33 Skill: Applied/Comprehensive/Integrative45) A restaurant carefully trains its employees to give them discretion to correct a service-related problem. For example, a waiter can give a guest a free appetizer if the wait for a table is more than 15 minutes. This illustrates ______. A) employee empowerment B) an expected customer service C) a potential customer service D) lip service, not real service Answer: A Diff: 2 Page Ref: 34 Skill: Applied/Comprehensive/Integrative31 46) An advantage to a retailer's use of its individual retailer credit card over a bank-sponsored card is ______. A) greater flexibility in extending credit B) lower capital requirements C) lower interest costs D) lower bad debt costs Answer: A Diff: 2 Page Ref: 36 Skill: Applied/Comprehensive/Integrative47) A retailer seeking to minimize bad debts should utilize what type of credit? A) revolving credit account B) commercial credit card C) option credit account D) open credit account Answer: B Diff: 1 Page Ref: 36 Skill: Applied/Comprehensive/Integrative48) Which type of credit account does not allow a consumer to make a partial payment? A) layaway plan B) revolving credit account C) open credit account D) option credit account Answer: C Diff: 1 Page Ref: 36 Skill: Applied/Comprehensive/Integrative49) Which statement concerning complaints is correct? A) Most consumers complain when dissatisfied. B) Complaining is relatively easy. C) Marketers should make it more difficult for consumers to complain. D) Most people feel complaining produces little or no positive results. Answer: D Diff: 1 Page Ref: 38 Skill: Applied/Comprehensive/Integrative50) Airline-based affinity credit cards that give consumers one airline mile for each $1 charged are an example of a ______. A) retailer-generated credit card B) customer loyalty program C) debit card D) smart card Answer: B Diff: 2 Page Ref: 38-39 Skill: Applied/Comprehensive/Integrative32 51) A customer loyalty program is part of ______. A) relationship retailing B) customer satisfaction C) transactional retailing D) revolving credit Answer: A Diff: 2 Page Ref: 38-39 Skill: Applied/Comprehensive/Integrative52) To properly study customer defection rates, a retailer needs ______. A) an experimental design B) a competitive intelligence reporting system C) a marketing information system D) a customer database Answer: D Diff: 1 Page Ref: 39 Skill: Applied/Comprehensive/Integrative53) The interdependency among all channel members is expressed ______. A) in a value delivery system B) in an independent vertical channel system C) through vertical integration D) in franchising Answer: A Diff: 1 Page Ref: 39 Skill: Applied/Comprehensive/Integrative54) In micro-merchandising, retailers seek to match local assortments to the needs of the population that each store serves. Thus, a supermarket located near a college may feature dormitory supplies, while a store located in a family area may feature discounts on frozen foods. Micro-merchandising is a form of ______. A) value-oriented strategy B) adaptation strategy C) category management D) consumerism Answer: C Diff: 2 Page Ref: 40 Skill: Applied/Comprehensive/Integrative33 55) A retailer develops a merchandise plan on the basis of classifying goods into substitutes or complements. This illustrates ______. A) self-scanning B) nongoods services C) just-in-time inventory management D) category management Answer: D Diff: 2 Page Ref: 40 Skill: Applied/Comprehensive/Integrative56) Which service most closely resembles goods-based retailing? A) rented-goods services B) leased-goods services C) nongoods services D) owned-goods services Answer: A Diff: 2 Page Ref: 40 Skill: Applied/Comprehensive/Integrative57) The purchase of a Toyota Camry hybrid car on the basis of a three-year loan is a goods-based transaction; the lease of a Toyota Camry hybrid car on the basis of a three-year lease is a(n) ______. A) rented-goods service B) leased-goods service C) nongoods service D) owned-goods service Answer: A Diff: 1 Page Ref: 41 Skill: Applied/Comprehensive/Integrative58) Low-cost financing available from manufacturers for purchases of capital goods may lower the overall demand for ______services. A) owned-goods B) leased-goods C) nongoods D) rented-goods Answer: D Diff: 2 Page Ref: 41 Skill: Applied/Comprehensive/Integrative34 59) Instruction in home repair by home improvement centers is likely to reduce the demand for ______services. A) rented-goods B) leased-goods C) nongoods D) owned-goods Answer: D Diff: 1 Page Ref: 41 Skill: Applied/Comprehensive/Integrative60) Which service is the least tangible? A) rented-goods services B) leased-goods services C) nongoods services D) owned-goods services Answer: C Diff: 2 Page Ref: 42 Skill: Applied/Comprehensive/Integrative61) The statement "in the supermarket, lettuce wilts; in a Broadway show, the curtain goes up" refers to which characteristic of services? A) the high variability in services B) the inseparability of the services from its provider C) low tangibility D) inability to stockpile inventories Answer: D Diff: 2 Page Ref: 42 Skill: Applied/Comprehensive/Integrative62) A major problem for a service retailer seeking to expand into new geographic markets is ______. A) the high variability of services B) the inseparability of the services from its provider C) low tangibility D) inability to stockpile inventories Answer: B Diff: 2 Page Ref: 42 Skill: Applied/Comprehensive/Integrative35 63) A potential problem relating to scanning that is unique to the self-checkout system is ______. A) consumer fraud B) scanner error C) employee training of how to use the scanner D) need for special shopping bags Answer: A Diff: 2 Page Ref: 45 Skill: Applied/Comprehensive/Integrative64) A retailer can encourage ethical behavior among its employees through the development and communication of a ______. A) corporate mission statement B) code of ethics C) customer exchange policy D) customer service standard Answer: B Diff: 2 Page Ref: 46 Skill: Applied/Comprehensive/Integrative65) The major difference between social responsibility of retailers and consumerism is that ______. A) consumerism is concerned with moral issues, while social responsibility is concerned with legal issues B) social responsibility is concerned with moral issues, while consumerism is concerned with legal issues C) social responsibility reflects an obligation to all parties (employees, the general public), whereas consumerism is concerned with the obligation to consumers D) consumerism reflects an obligation to all parties (employees, the general public), whereas social responsibility is concerned with the obligation to consumers Answer: C Diff: 2 Page Ref: 48-49 Skill: Applied/Comprehensive/Integrative66) A retailer can best implement a consumer's "right to safety" by ______. A) providing an exchange policy on all goods and services B) refusing to sell foods with any additive C) nutritional labeling of all food products D) engaging in systematic product testing programs Answer: D Diff: 1 Page Ref: 49 Skill: Applied/Comprehensive/Integrative36 67) A retailer can best implement a consumer's "right to be informed" by ______. A) giving a consumer advice newsletter to all customers B) selling private label merchandise C) sponsoring a consumer advisory panel D) providing a money-back guarantee on all goods and services Answer: A Diff: 1 Page Ref: 49 Skill: Applied/Comprehensive/Integrative68) Increased deregulation of industries should have a positive impact on which consumer right? A) the right to be heard B) the right to safety C) the right to choose D) the right to be informed Answer: C Diff: 2 Page Ref: 49 Skill: Applied/Comprehensive/Integrative69) Which of the following is a potential consumerism-related difficulty with a specialization merger? A) A consumer's right to safety may be lessened. B) A consumer's right to be heard may be lessened. C) A consumer's right to choose may be lessened. D) A consumer's right to be informed may be lessened. Answer: C Diff: 2 Page Ref: 49 Skill: Applied/Comprehensive/Integrative70) A retailer has a consumer advisory committee which meets monthly with a vice-president of operations. The committee reflects which element of the consumer's bill of rights? A) the right to be heard B) the right to safety C) the right to choose D) the right to be informed Answer: A Diff: 2 Page Ref: 49 Skill: Applied/Comprehensive/Integrative71) Generally, consumers are more concerned with the results of a value chain, as opposed to the value chain process. Answer: TRUE Diff: 1 Page Ref: 29 Skill: Terminology/Concept37 72) An expected retail strategy involves a higher level of customer service than an augmented retail strategy. Answer: FALSE Diff: 2 Page Ref: 30 Skill: Terminology/Concept73) Relationship retailing is based on the building and maintenance of long-term relationships with profitable customers. Answer: TRUE Diff: 1 Page Ref: 32 Skill: Terminology/Concept74) A good relationship retailing program requires a database to maintain the retailer's customer loyalty program and to determine defection rates. Answer: TRUE Diff: 2 Page Ref: 32 Skill: Terminology/Concept75) The value delivery system concept suggests that each channel member must retain its standard retail tasks. Answer: FALSE Diff: 2 Page Ref: 39 Skill: Terminology/Concept76) The service strategy process for services retailing is the same as for goods retailing. Answer: TRUE Diff: 2 Page Ref: 41 Skill: Terminology/Concept77) There are no physical products in nongoods services. Answer: TRUE Diff: 1 Page Ref: 42 Skill: Terminology/Concept78) The perishability of services prevents the shifting of services from low to high demand periods. Answer: TRUE Diff: 2 Page Ref: 42 Skill: Terminology/Concept79) Service retailers often seek to reduce the perishability of services through standardization. Answer: FALSE Diff: 2 Page Ref: 42 Skill: Terminology/Concept38 80) Most electronic banking transactions are now through debit cards. Answer: FALSE Diff: 1 Page Ref: 44 Skill: Terminology/Concept81) An increasingly popular point-of-sale system involves self-scanning. Answer: TRUE Diff: 1 Page Ref: 45 Skill: Terminology/Concept82) The standard of what constitutes ethical behavior is whether the proposed act is legal. Answer: FALSE Diff: 2 Page Ref: 46 Skill: Terminology/Concept83) A retailer can promote ethical behavior through the development of a code of ethics and through disciplining employees that violate the code. Answer: TRUE Diff: 1 Page Ref: 46 Skill: Terminology/Concept84) When an action affects stockholders, employees, and the general public, it involves consumerism. Answer: FALSE Diff: 2 Page Ref: 49 Skill: Terminology/Concept85) Self-service merchandising makes the implementation of consumerism more difficult, especially with respect to the right of information. Answer: TRUE Diff: 2 Page Ref: 49 Skill: Terminology/Concept86) The value chain concept relates to a channel of distribution. Answer: TRUE Diff: 2 Page Ref: 28 Skill: Applied/Comprehensive/Integrative87) A retailer concerned with relationship retailing should concern itself with attracting and keeping new customers. Answer: FALSE Diff: 2 Page Ref: 32 Skill: Applied/Comprehensive/Integrative39 88) Developing a description of a retailer's core customers is an important part of developing a target market strategy for a retailer. Answer: TRUE Diff: 2 Page Ref: 33 Skill: Applied/Comprehensive/Integrative89) In contrast to a revolving credit account, with an open account, a consumer must pay the full balance when it is due. Answer: TRUE Diff: 1 Page Ref: 36 Skill: Applied/Comprehensive/Integrative90) Customer loyalty programs are based on the concept of reinforcing a consumer's purchasing activity. Answer: TRUE Diff: 1 Page Ref: 38 Skill: Applied/Comprehensive/Integrative91) A simple customer loyalty program can be based on "pay for nine car washes, get the 10th car wash for free." Answer: TRUE Diff: 1 Page Ref: 38 Skill: Applied/Comprehensive/Integrative92) The central premise of a value delivery system is that each channel member is independent of each other. Answer: FALSE Diff: 1 Page Ref: 39 Skill: Applied/Comprehensive/Integrative93) Category management seeks to improve a retailer's inventory management system. Answer: TRUE Diff: 2 Page Ref: 40 Skill: Applied/Comprehensive/Integrative94) Rented-goods service retailers require little or no inventory investment. Answer: FALSE Diff: 2 Page Ref: 41 Skill: Applied/Comprehensive/Integrative95) The same product can be a rented-goods service or a good, depending on whether it is purchased or leased. Answer: TRUE Diff: 2 Page Ref: 41 Skill: Applied/Comprehensive/Integrative40 96) The concepts of intangibility, variability, and inseparability are most applicable to nongoods services. Answer: TRUE Diff: 1 Page Ref: 42 Skill: Applied/Comprehensive/Integrative97) The basic ongoing expense for many service retailers is inventory investment costs. Answer: FALSE Diff: 1 Page Ref: 42 Skill: Applied/Comprehensive/Integrative98) Point-of-sale scanning equipment enables retailers to develop up-to-date sales and inventory reports. Answer: TRUE Diff: 1 Page Ref: 44 Skill: Applied/Comprehensive/Integrative99) A major concern relating to the success of self-scanning is consumer honesty. Answer: TRUE Diff: 2 Page Ref: 45 Skill: Applied/Comprehensive/Integrative100) Consumerism is a broader concept than social responsibility. Answer: FALSE Diff: 2 Page Ref: 48, 49 Skill: Applied/Comprehensive/Integrative101) Differentiate between the terms "value" and the "value chain." Diff: 1 Page Ref: 28-29102) a. Explain the difference between expected, augmented, and potential retail strategies. b. Apply these concepts to a retailer featuring high-quality high definition televisions. Diff: 2 Page Ref: 30103) Develop a relationship retailing program for a local hotel chain. Incorporate the customer base, customer loyalty programs, and defection rates into your analysis. Diff: 2 Page Ref: 32-34104) Explain the implications for channel relations of the value delivery system concept. Diff: 1 Page Ref: 39105) "The attributes of perishability, intangibility, and inseparability relate most to nongoods services and least to rented-goods services." Explain this statement. Diff: 2 Page Ref: 4241 106) Describe the strategic implications of the characteristics of service retailing: intangibility, inseparability, perishability, and variability. Diff: 1 Page Ref: 42107) a. What factors have increased the role of technology in retailing? b. Describe three technological innovations and their impact on retail strategies. Diff: 2 Page Ref: 43-45108) What are the pros and cons of the use of ATMs in retail locations from the perspective of the retailer and the banking institution? Diff: 2 Page Ref: 44109) Describe 10 potential applications of electronic point-of-sale systems in improving a retailer's productivity. Diff: 2 Page Ref: 44110) Differentiate among ethics, social responsibility, and consumerism. Diff: 1 Page Ref: 45111) Develop a code of ethics for a local computer retailer. Diff: 2 Page Ref: 46, 48112) A membership based warehouse club (such as Costco, Sam's Club or BJ's) seeks to develop a consumer-oriented program. Develop such a program based on the right to safety, to be informed, to choose, and to be heard. Diff: 2 Page Ref: 4942

MKT 310 WK 2 Quiz 1 Chapter 12 All Possible Questions 572850

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