_________ refers to the number of different merchandise categories a retailer offers.

Select one:
a. Inventory mixture
b. Product measurement
c. Product depth
d. Variety
e. Assortment

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Customers have two sources of information to help make purchasing decisions: intrinsic and
extrinsic. True or False?

Select one:
True
False

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

Select one:
a. bonus if the sales quota is achieved
b. lump sum plus a royalty on all sales
c. start-up costs plus a monthly predetermined cash amount
d. commission on all sales
 e. salary plus a variety of employee benefits

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Commuters who speed to work might find it handy to have a radar detector. By owning one of
these, a commuter can know when her car was being monitored for speed, and can slow the car
accordingly. The radar detector would satisfy a __________ need.

Select one:
a. psychological
b. motivational
c. utilitarian
d. physiological
e. social

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Grocers purchase pineapples from several different tropical countries. When pineapples arrive in
the distribution centers across the United States, containers are reduced to amounts that are
appropriate for store delivery. Once delivered to the stores, associates open the cartons and
arrange the pineapples for the consumer to select. Grocers are performing what function?

Select one:
a. adaptive selling
b. breaking bulk
c. acclimating
d. distribution
e. transferring
Question 6
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If a chain of florist shops opened a plant nursery to provide gift plants and cut flowers to all of its
stores within a 300-mile radius, the chain would be practicing

Select one:
a. vertical integration.
b. channel expansion.
c. horizontal expansion.
d. opportunity incrementing.
e. service marketing.

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The drugstore industry has seen a decrease in their annual sales mainly due to _____.

Select one:
a. higher prices on prescription drugs
b. pharmacies in full-line discount stores
c. the aging population
d. government regulations on pharmaceutical sales

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Since it set up a free daycare center for its shoppers, Ingrid has developed great
________________________ for the Raleigh County Kroger store. She wouldn't consider going to
another store, and having to contend with her 2-year old, while she is trying to decide what to
buy.

Select one:
a. store awareness
b. consumer attachment
c. store loyalty
d. brand recognition
e. brand awareness

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In a franchise contract, the franchisor _________.

Select one:
a. makes sure all franchise outlets provide the same quality of service and products
b. agrees to operate a franchise outlet in accordance with procedures prescribed in the
contract
c. agrees to pay a royalty to the franchisee
d. is given permission to use a franchise name and format
e. does all of these things

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What would be a measure of retailers' success at converting positive evaluations into purchases?

Select one:
a. The number of traffic at a store.
b. The number of visits on a Web site.
c. The number of browsing page on a Web site.
d. The time spent at a store.
e. The number of abandoned carts on a Web site.

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Which of the following is NOT a stage in the buying process?

Select one:
a. Evaluation
b. Making a selection
c. Need recognition
d. Searching for information
e. Desire

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_______________ occurs when a manufacturer undertakes retailing activities.

Select one:
a. Globalization
b. Product-related marketing
c. Backward integration
d. Horizontal integration
e. Forward integration

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Which of the following is NOT true in describing issues in multichannel retailing?

Select one:
a. Many retailers are struggling to integrate the shopping experience across all their channels.
b. Legacy systems along with disconnected customer and inventory databases hamper
retailers' ability to maintain consistency across channels.
c. Technology upgrades are inexpensive for retailers to integrate all systems at once.
d. Multichannel retailers try to provide features and services that offer a good customer
experience.

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Question text
Warehouse clubs:

Select one:
a. have extensive assortments
b. expensive store designs and aesthetics
c. high inventory holding costs
d. sell merchandise in a no-frills atmosphere
e. provide extensive customer service

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While waiting in the check out line at Target, Autumn spotted a nail care kit displayed amongst
the candy and batteries. She liked it, so she asked the cashier to add it to her bill. What kind of
limited problem solving did Autumn engage in?

Select one:
a. Extended problem solving
b. Frequent shopper loyalty
c. Impulse buying
d. Habitual decision making
e. Psychological problem solving

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Assortment is often referred to as the ____________.

Select one:
 a. breadth of merchandise
b. complete retail offering
c. depth of merchandise
d. object of the buy
e. retail mix

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Customers engage in this type of buying process when they have had some prior experience with
the product or service and their risk is moderate:

Select one:
a. Extended problem solving
b. Habitual decision making
c. Impulsive problem solving
d. Limited problem solving
e. Psychological problem solving

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A multi-channel retailer is one that:

Select one:
a. is a combination of single channel retailers.
b. channels all assortments through the stores.
c. works with other retailers who are in the channel.
 d. sells merchandise or services through more than one channel.
e. buys merchandise from multiple channels to sell in the stores.

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

Select one:
a. Use low prices during off-seasons to help match supply and demand.
b. Use mass production.
c. Emphasize quality control.
d. Train and motivate employees.
e. Increase staffing at peak demand times.

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Which of the following is NOT TRUE in describing characteristics of franchise?

Select one:
a. The franchise ownership format attempts to combine the advantages of owner-managed
businesses with the efficiencies of centralized decision making in chain store operations
b. Franchisees are motivated to make their stores successful because they receive the profits
c. The franchisor is motivated to develop new products and to promote the franchise because
it receives a royalty on all sales
d. The franchisor is solely responsible for financing advertising, product development, and
system development
Question 21
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The offering of merchandise NOT typically associated with the store type is called:

Select one:
a. scrambled merchandising.
b. intratype competition.
c. product diversification.
d. channel conflict.
e. vertical differentiation.

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Angelo manages a local convenience store that sells gasoline. When gas prices are high, his sales
increase, but gas margins are low. So, depending upon gas sales for the success of the business
can be a problem for him. What should Angelo do?

Select one:
a. add fresh healthy food and new convenient services to the product mix
b. open more gas pumps
c. temporarily lower gas prices to motivate customers to fill up at his store
d. sell two-for-one candy with every fill-up
e. all of the above

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Walmart is classified as an off-price retailer. True or False?

Select one:
True
False

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Ben saw a 30-minute TV show with George Foreman on it. During the show, Foreman was showing
how to prepare a variety of foods so that they would be totally fat-free. Each item was prepared
using a special cooker. During the show the TV audience was given several opportunities to buy
the cooker. Ben was watching:

Select one:
a. an infomercial
b. direct selling
c. a sales promotion
d. outbound telemarketing
e. interactive online retailing

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Cannibalization occurs when a retailer steals away customers from a competing retailer. True or
False?

Select one:
True
False

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Compared to other retail formats, the greatest benefit that store shopping offers is:

Select one:
a. the ability to touch and feel the products
b. acceptance of multiple forms of payment
c. cash and carry
d. broader and deeper assortments

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When Terry fed her dog last night, she noticed only one can of Alpo Beef Chunk Dinner remained.
Since it was the only kind her aging dog would eat, she stopped at the supermarket on her way
home today, and bought a case of Alpo Beef Chunk Dinner dog food. What kind of decision-making
process did Terry use to replenish her stock of canned dog food?

Select one:
a. Unlimited problem solving
b. Extended problem solving
c. Habitual decision making
 d. Complex decision making
e. Programmed decision making

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Which of the following is the LEAST EFFECTIVE method a retailer may use to increase the chances
that its store will be selected for a visit?

Select one:
a. add a new benefit
b. decrease the performance belief for competing stores in the consideration set
c. increase customer's importance weights
d. focus on improving performance on benefits important to their target market
e. increase the belief about its performance

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A purchase decision process in which customers devote considerable time and effort analyzing
alternatives is called:

Select one:
a. Adaptive selling
b. Consumerism
c. Extended problem solving
d. Habitual decision making
e. Limited problem solving
Question 30
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The percentage of total purchases made by a customer in your store is called:

Select one:
a. share of wallet
b. worth of wallet
c. share of value
d. profit logic
e. potential wallet

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JCPenney's promotions claim that a person can order gift merchandise online, have it shipped
across the country, and the recipient can exchange it at a local store if necessary. By emphasizing
these benefits that customers don't normally consider, JCPenney increases the chances of
customer shopping at its store by _________.

Select one:
a. decreasing an importance weight
b. increasing a performance belief
c. decreasing the performance belief for competitive retailer
d. adding a benefit

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An issue of Consumer Reports that evaluates brands of table saws would serve as a source of
______________ as it provides Lewis with useful knowledge about available features, convenience
of use, and machine quality.

Select one:
a. rational information
b. primary data
c. selective data
d. motivational data
e. external information

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What is a way that retailers can reduce channel migration?

Select one:
a. Promote private-label merchandise that can be purchased only from that retailer.
b. Persuade suppliers to increase their sales forecasts.
c. Encourage vendors to deliver complete assortments.
d. Increase efficiencies of supply chain management.
e. None of the above

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Which of the following statements about warehouse clubs is TRUE?

Select one:
a. Warehouse clubs only sell to ultimate consumers.
b. Warehouse clubs have a category specialist format.
c. Warehouse clubs typically have low inventory holding costs.
d. Warehouse clubs have extensive merchandise depth.

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Whereas conventional supermarkets carry about 30,000 SKUs, limited assortment supermarkets or
extreme value food retailers only stock 2000 SKUs. Which of the following is NOT the advantage of
stocking lesser SKUs?

Select one:
a. Less inventory holding costs
b. Less backup stocks
c. Less inventory investments
d. More inventory turnover
e. Lower transportation costs

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Question text
he retail market segments for licensed World Wrestling Federation shirts, jackets, and hats are 6-
to 17- year old boys, 18- to 24-year old women, and 18- to 44-year old men. This retail market
segment is based on _______________ segmentation.

Select one:
a. lifestyle
b. geographic
c. cultural
d. psychographic
e. demographic

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The imminent approach of Halloween pushes millions of homeowners to go out and purchase
candy corn. Halloween stimulates a ______________ which is part of the buying process.

Select one:
a. choice of alternatives
b. need recognition
c. information search
d. post-purchase satisfaction
e. evaluation of consideration sets

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McKenna was shopping for a new electric mixer. Online she found the perfect one at williams-
sonoma.com, but when she went to the Williams-Sonoma store, she found the same mixer for $15
more. The retailer has a problem with:

Select one:
a. depth of merchandise prices
b. a corporate problem between channels
c. price inconsistency across channels
d. product inconsistency
e. None of the above

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When products are purchased to satisfy psychological needs, utilitarian characteristics are less
important. True or False?

Select one:
True
False

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A ______________ is a business that sells products and/or services to consumers for their personal
or family use.

Select one:
a. manufacturer
b. wholesaler
 c. retailer
d. distributor
e. None of the above

When Austin saw pastries and coffee being sold at his local bookstore, he knew it was an example
of _________, which is the juxtaposition of unrelated merchandise in the store.

Select one:
a. scrambled merchandising
b. intratype competition
c. product diversification
d. channel conflict
e. vertical differentiation

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What is retailing?

Select one:
a. It is the merchandising component of the retail mix.
b. It is the set of business activities that adds value to the products and services sold to
consumers for their personal use.
c. It is the strategy retailers and vendors use to get products into the stores.
d. It is the process of offering products in smaller quantities for consumer consumption
patterns.
e. It is the ability to offer enough variety in a store to encourage one-stop shopping.

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One of the functions retailers undertake to increase the customer's perception of value is
providing services. Which of the following is NOT an example of that activity?

Select one:
a. clean restrooms
b. displaying merchandise
c. having trained salespeople available to answer questions
d. parking lot with a lot of lighting
e. having crisp dollar bills for change

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An advantage of a large retail chain is that it can respond quickly to market changes and customer
needs. True or False?

Select one:
True
False

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Providing assortments is an advantageous business activity because:

Select one:
a. it enables the company to create a more informational and entertaining environment that
would promote more sales.
b. it enables the company to reinvest for the future of the business.
 c. it enables the customer to choose from a wide selection of brands, designs, sizes and prices
all in one store.
d. it enables the customer to try more products.
e. it enables the customer to stock up on the assortments because of bulk availability.

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How can a service retailer best cope with the problems associated with the intangibility of
service?

Select one:
a. Use low prices during off-seasons to help match supply and demand.
b. Use mass production.
c. Emphasize quality control.
d. Solicit customer evaluations and complaints.
e. Increase staffing at peak demand times.

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________ occurs when a manufacturer sells directly to consumers bypassing retailers.

Select one:
a. Disintermediation
b. A distribution detour
c. Leapfrog marketing
d. Distribution disruption
 e. Customer circumvention

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Disintermediation occurs when ____________.

Select one:
a. a manufacturer sells directly to a wholesaler who then sells to a retailer
b. a retailer purchases from a few wholesalers resulting in increased competition and price
c. a manufacturer sells directly to other manufacturers who distributes to an array of
wholesalers
d. a manufacturer sells directly to consumers, bypassing retailers
e. wholesalers disagree about the agreements between the manufacturer and the retailer

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Off-price retailers will often sell merchandise less than the MSRP which means:

Select one:
a. the merchandise sales are profitable.
b. the merchandise is sold below the suggested retail price.
c. the merchandise is sold below the suggested realized profit.
d. the merchandise is sold less than the surrounding retail competitors.

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Food retailers experience better financial performance than retailers that focus on hard and soft
line products. True or False?

Select one:
True
False

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Which of the following is the biggest threat to convenience stores?

Select one:
a. Increasing prices on convenience foods
b. Supermarket chains also offering gasoline
c. Vending machines
d. Consumers having more expendable time to shop and compare prices
e. Off-price retailers

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In the 1960's, bands like the Beatles and the Rolling Stones influenced culture. Students grew their
hair, wore beads, and became more socially conscious about war, segregation, and family. The
culture looked upon bands like these for inspiration and encouragement. It can be said that people
like John Lennon and Mick Jagger were part of the American:

Select one:
a. Culture.
b. Family.
c. Reference group.
d. Peer group.
e. Subculture.

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Matt used to shop for electronics at the closest Best Buy store. But now that he has his iPad, he
does his electronic shopping online at bestbuy.com instead of in a Best Buy store. This is an
example of ___________.

Select one:
a. leveraging
b. efficient fulfillment
c. inconsistent execution of services
d. cannibalization
e. market presence

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A(n) ______________ is a set of firms that make and deliver a given set of goods and services to
the ultimate consumer.

Select one:
a. supply chain
b. buying network
c. trade association
d. integrated wholesale network
e. network

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Which of the following is ONLY a benefit of store channel shopping?

Select one:
a. Convenience
b. Personal safety
c. Personalization
d. Immediate gratification
e. Broad and deep assortments

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When consumers collect product information on a retailer's website but buy the product from
another retailer's store it is referred to as ________.

Select one:
a. channel migration
 b. cross-shopping
c. multi-channel users
d. entrepreneurs
e. electronic agents

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A retailer that sells merchandise and/or services through more than one channel is called a/an:

Select one:
a. computerized retailer
b. direct seller
c. electronic retailer
d. single-channel retailer
e. multi-channel retailer

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What is the word used to describe a retailer's merchandise ""depth""?

Select one:
a. Apparition
b. Assortment
c. Modicum
d. Variety
e. Product
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Which of the following does NOT describe tactics that retailers use to convert positive evaluations
of the merchandises or services to purchases?

Select one:
a. Making a Website easy to navigate.
b. Offering online reviews to reduce perceived risks.
c. Offering liberal return policies.
d. Offering entertaining graphics on a Web site.
e. Offering more checkout lanes during heavy traffic times.

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Automated retailing:

Select one:
a. is most effective in high traffic areas.
b. is based on the idea that social relationships influence buying habits.
c. uses a master distributor as lead salesperson.
d. is a recruiting tool for multilevel networks.