Retailing Management 5Th Canadian Edition by Levy - Test Bank

Retailing Management 5Th Canadian Edition By
Levy – Test Bank
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Sample Test
Chapter 03
Customer Buying Behaviour

Multiple Choice Questions
1. When consumers go shopping for pleasure, they are seeking to satisfy

their:
A.Utilitarian needs
B. Recognition needs
C. Hedonic needs
D. Conflicting needs
E. Complexity needs

Blooms: Remember
Difficulty: Medium
Learning Objective: 03-01 Explore how customers make decisions about
whether to patronize a retailer and buy merchandise.
Topic: 03-02 Need recognition
2. An example of cross-shopping occurs when
A.A shopper buys expensive ski clothing and inexpensive skis
B. The shopper shops for clothing during the week and for food on the
weekends
C. A shopper buys several yellow shirts yet only a few black pants
D. A customer shops for 2 or more family members at a time
E. A shopper purchases at different stores within the same mall during
the same week

Blooms: Understand
Difficulty: Hard

3. Retailers use a variety of approaches to stimulate problem recognition

and motivate customers to visit their stores and buy merchandise
including all of the following except:
A. Advertising
B. Internet promotions
C. Direct mail
D. Special events
E. Retailers use all of these

Blooms: Understand
Difficulty: Easy
4. Why should retailers understand how families make purchase

decisions?
A.Brand choice decisions may be influenced by children and not by the
shopper.
B. Children influence family buying decisions.
C. Family purchase decisions consider the needs of all family members.
D. Retailers can attract customers by satisfying needs of all family
members.
E. All of these.

Blooms: Remember
Difficulty: Hard
Learning Objective: 03-02 Determine what social and personal factors affect
customer purchase decisions.
Topic: 03-12 Family
5. David is starting his first job out of college with a consulting firm and
wants to make a good impression on his supervisors. He noticed the
attire of the associates when he was interviewed, and decided to mimic
them by wearing power suits and Italian shoes. What social factor most
influences David’s wardrobe?
A.culture
B. family
C. reference group
D. peer group
E. subculture

Blooms: Remember
Difficulty: Easy
Topic: 03-13 Reference groups

6. In the 1960’s, bands like the Beatles and the Stones exerted a major
influence on culture. Students styled their hair, wore similar clothes, and
became socially conscious. Young people looked upon bands like these
for inspiration and encouragement. It can be said that such rock groups
were a form of:
A.culture
B. family
C. reference group
D. peer group
E. subculture

Blooms: Remember
Difficulty: Easy
7. Many department stores have teen boards to help the retailer

understand the fashions and fads of teens. This teen board acts as a
____________________ for other teens to emulate.
A.culture
B. family
C. reference group
D. peer group
E. subculture

Blooms: Remember
Difficulty: Easy

8. Tony Hawk is one of many professional skateboarders in the U.S. who

compete and showcase their sport for skateboard enthusiasts. These
devoted fans imitate the moves and jumps of these athletes to the
detriment of their own safety. To skateboard enthusiasts, the Tony
Hawk crowd is part of their:
A.culture
B. family
C. reference group
D. peer group
E. subculture

Blooms: Understand
Difficulty: Easy
9. Both a weight-loss center and a health club would be pleased to learn

that health and fitness, together with individualism, mastery and control,
and self-improvement are common values in the ______________ of
Canada.
A.experiential base
B. environment
C. civilization
D. society
E. culture
Culture includes core values shared by most members of a society.

Blooms: Understand
Difficulty: Medium
Topic: 03-14 Canada’s multicultural market
10. Which of the following is an example of a subculture in Canada?

A.Asians
B. Westerners
C. Acadians
D. Chinese
E. All of these

Blooms: Remember
Difficulty: Easy
Learning Objective: 03-03 Investigate how retailers can get customers to visit
their stores more frequently and buy more merchandise during each visit.
Topic: 03-14 Canada’s multicultural market

11. Big and Tall stores select their merchandise assortments for
larger men. Men who meet this criterion compose a:
A.retail market segment
B. consideration set
C. demographic set
D. media set
E. psychosocial segment
The men who shop at Big and Tall stores share the need to have quality
clothing in larger sizes. Their needs are satisfied by the retail mix that Big and
Tall stores offer.

Blooms: Understand
Difficulty: Medium
Learning Objective: 03-04 Discuss why and how retailers group customers
into market segments.
Topic: 03-15 Market Segmentation
12. La Senza Girl is a specialty retailer with assortments that are of

interest to young teens. La Senza Girl is catering to a particular:
A.consideration set
B. subculture
C. media set
D. psychosocial segment
E. retail market segment
The teens who shop at LaSenza Girl share the need to have fashionable
merchandise catering to their specific interests. Their needs are satisfied by
the retail mix offered by La Senza Girl.

Blooms: Understand
Difficulty: Medium

13. The Tackle Box is a store that sells anything you may need to
catch fish including local information about what is running, where it’s
running and what bait works best. The fishing enthusiasts who rely on
the Tackle Box for reliable equipment and information are the retailer’s:
A.consideration set
B. demographic set
C. media set
D. psychosocial segment
E. retail market segment
Fishing enthusiasts represent a group of customers whose needs can be

satisfied by the same retail mix because they have similar needs and go
through similar buying processes.

Blooms: Understand
Difficulty: Medium
14. A retail market segment that has _____________ is able to

dictate to a retailer what it needs to offer to satisfy the needs of the
segment.
A.actionability
B. accessibility
C. durability
D. flexibility
E. identifiability

Blooms: Remember
Difficulty: Easy
Topic: 03-16 Criteria for evaluating market segments
15. Which of the following is not a criterion for evaluating whether a

retail market segment is a viable target market?
A.actionability
B. accessibility
C. identifiability
D. media-adaptability
E. size of market segment

Blooms: Understand
Difficulty: Easy

16. Bed and breakfasts that specialize in healthy meals and activities
focus on advertising their offering in health and fitness magazines
because through this medium, their customers are:
A.accessible
B. flexible
C. intransigent
D. stable
E. substantiated
The best way to reach health enthusiasts is through the medium they use.

Blooms: Understand
Difficulty: Medium
Topic: 03-17 Approaches for segmenting markets
17. Why would a store like The Button Emporium selling only buttons
be best located in Toronto?
A.A retailer like this locates itself where there are designers who will
patronize the shop.
B. Toronto is a large city and can support the retailing mix of the store.
C. More people in Ontario use sewing as a hobby, making it more
actionable.
D. The market is easier to identify because of the diversity.
E. None of the statements answer the question.
A target segment must be large enough to support a unique retailing mix.

Blooms: Understand
Difficulty: Hard
18. A retailer in Winnipeg who wants to open a store that will sell
surfboards and surfing accessories would most likely have trouble with:
A.competition
B. flexibility
C. media capability
D. rationality
E. size of the market

Blooms: Understand
Difficulty: Medium

19. Which of the following is not a criterion for evaluating retail market
segments?
A.accessibility
B. actionability
C. religion
D. size
E. identifiability
Religion is one way to segment a market. The other alternatives are ways to
evaluate a market segment.

Blooms: Remember
Difficulty: Easy
20. Home Depot operates home improvement stores in major

Canadian cities. Home Depot management has learned that different
merchandise is needed to satisfy the different needs of the customers
living in different areas of the country. What kind of retail market
segmentation has Home Depot used?
A.Race
B. Benefit
C. Geographic
D. Lifestyle
E. Age

Blooms: Understand
Difficulty: Medium
21. The segmentation scheme best described by “birds of a feather

flock together” is:
A.buying situation
B. demographic
C. geographic
D. geodemographic
E. lifestyle

Blooms: Remember
Difficulty: Easy
Topic: 03-19 Retailing to Generation Z

22. Kathy’s son started school and brought home the supply list.
Among the required supplies were green ink pens. Kathy thought that
finding boxes carrying only green pens would be difficult until her
neighbour informed her that Staples carried packs of twelve. In turn,
Kathy shared this information with yet another mother down the block
who was also perplexed as to where to purchase the pens. Which of the
following approaches should Staples use in defining its market
segment?
A.Occupation
B. Family life cycle
C. Geographic
D. Benefit sought
E. Gender

Blooms: Understand
Difficulty: Medium
23. __________ segmentation is the primary means for segmenting

the aging baby boomer retail market.
A.Lifestyle
B. Geographic
C. Benefit sought
D. Psychographic
E. Demographic
Age is a demographic variable.

Blooms: Remember
Difficulty: Medium

24. A store that specializes in Asian groceries and produce would use
______________ segmentation when marketing to the Asian population
in Vancouver?
A.lifestyle
B. geographic
C. benefit sought
D. psychographic
E. demographic
Race is a demographic variable.

Blooms: Remember
Difficulty: Medium
25. A cruise ship specializing in entertaining families with children

would most likely be using _______________ segmentation to attract
business.
A.demographic
B. geographic
C. benefit sought
D. psychographic
E. lifestyle
Family life cycle is a demographic variable.

Blooms: Understand
Difficulty: Medium
26. Harley Davidson dealers sell merchandise that interest men in

their forties, who are financially able to purchase motorcycles, and
aspiring bikers in their teens, who are financially able to purchase sports
caps and t-shirts. Harley Davidson would focus on which of the following
segmentations?
A.Demographics
B. Feelings and behaviours
C. Geographic
D. Occupation
E. Psychosocial

Blooms: Understand
Difficulty: Medium

27. The retail market segments for licensed World Wrestling

Entertainment 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.
A.lifestyle
B. geographic
C. demographic
D. psychosocial
E. user status
Age and sex are demographic variables.

Blooms: Understand
Difficulty: Medium
28. _________ refers to the way people live, how they spend their
time and money, what activities they pursue, and what their attitudes
and opinions are about the world they live in.
A.Family life cycle
B. Demographics
C. Lifestyle
D. Social class
E. Usage situation

Blooms: Understand
Difficulty: Easy
29. Lifestyle refers to:

A.the way people live
B. how people spend their time and money
C. consumers’ attitudes about the world they live in
D. what activities people pursue
E. all of these

Blooms: Remember
Difficulty: Medium

30. The Grand Casino has identified 2,000 people it categorizes as

high rollers. Since the casino people contend that there are no unifying
demographics that can be used to identify a high roller, what sort of
segmentation must they be using?
A.Social class and income
B. Occupation, perceived risk, and social class
C. Occupation, education, and lifestyle
D. Lifestyle
E. Occupation, education, and geographic

Blooms: Understand
Difficulty: Medium
31. The Main Game is a retail store that appeals to people who like
role-playing games. The store has games, books, and a play area
where fanatics can meet and play each other. Since there are no
unifying demographics, the store uses ___________ segmentation.
A.product perception
B. demographic
C. lifestyle
D. geographic
E. consumer behaviour
Lifestyle segmentation is done on the basis of how people spend their time
and money and what activities they pursue.

Blooms: Understand
Difficulty: Easy

32. Do It Again Sports has everything the weekend warrior needs to

get back into shape at reduced prices. They feature an array of
treadmills, weights and sporting gear as well as a friendly, helpful staff.
What segmentation method is Do It Again Sports using?
A.Loyalty status
B. Demographic
C. Lifestyle
D. Geographic
E. Attitudes
Lifestyle segmentation is done on the basis of how people spend their time
and money and what activities they pursue.

Blooms: Understand
Difficulty: Easy
33. A woman buying perfume for herself and for her granddaughter
would have two different perspectives. These differences allow a retailer
to segment according to
A.buying situation.
B. education.
C. income.
D. personality.
E. social class.

Blooms: Remember
Difficulty: Medium
34. Which of the following segmentation methods would be most

appropriate for a retailer selling apparel to wear to the beach?
A.Geographic
B. Buying situation
C. Demographic
D. Benefit sought
E. Personality

Blooms: Remember
Difficulty: Hard


appropriate for a retailer selling CDs?
A.Geographic
B. Buying situation
C. Demographic
D. Benefit sought
E. Personality

Blooms: Remember
Difficulty: Hard

appropriate for a retailer selling men’s apparel?
A.Geographic
B. Buying situation
C. Demographic
D. Benefit sought
E. Personality

Blooms: Understand
Difficulty: Medium

appropriate for a convenience store retailer?
A.Geographic
B. Buying situation
C. Demographic
D. Benefit sought
E. Personality

Blooms: Understand
Difficulty: Hard

38. The Sleep Store sells mattresses, pillows, sound machines, and
any other item that could enhance a customer’s sleep. The store is
popular because many people are unable to enjoy a full night’s sleep,
and Sleep Store offers products that promise comfortable sleep. The
Sleep Store therefore uses _____ segmentation.
A.benefit sought
B. demographic
C. geographic
D. lifestyle
E. usage
Its customers are all seeking similar benefits.

Blooms: Understand
Difficulty: Medium
39. Composite segmentation defines target markets in terms of

A.demographics
B. lifestyle
C. benefit sought
D. both demographics and lifestyle
E. all of these

Blooms: Understand
Difficulty: Hard
Topic: 03-20 Composite segmentation approaches
40. Why do retailers use composite segmentation?

A.Benefit segmentation does not identify the customers’ needs.
B. Geographic segmentation creates an unmanageable retail market.
C. Demographic segmentation identifies customers but not their needs.
D. Demographic segmentation makes it impossible to attract people
who do not fit into the demographic categories used.
E. Benefit segmentation requires the application of complex statistical
forecasting.

Blooms: Remember
Difficulty: Medium

41. Customers who spend 40 minutes in a store are more than twice
as likely to:
A.buy as someone who spends 30 minutes, and they typically buy twice
as many items
B. leave the store empty handed as someone who spends 10 minutes
C. buy as someone who spends 10 minutes, and they typically buy
twice as many items
D. browse the store and then leave empty handed as someone who
spends 10 minutes
E. All of these answers are correct

Blooms: Remember
Difficulty: Medium
42. This phenomenon known as kidfluence is influence that kids have

over the family’s:
A.Choice of vacation
B. Purchase decisions
C. Ability to get along
D. Investment decisions
E. None of these

Blooms: Remember
Difficulty: Easy
43. composite segmentation plans use multiple variables to identify

customers in the target segment and define target customers by:
A.benefits sought, geographic, and demographics.
B. benefits sought, IQ, and demographics.
C. benefits sought, lifestyles, and demographics.
D. benefits sought, lifestyles, and usage.
E. None of these.

Blooms: Understand
Difficulty: Medium

Short Answer Questions

44. Retailers want to reduce the number of abandoned shopping carts

by making it easier to purchase merchandise. What steps can a retailer
take to reduce abandoned carts-both in-store and on-line?
They reduce the actual wait time to buy merchandise by having more
checkout lanes open and placing them conveniently inside the store. To
reduce perceived wait times, they install digital displays and other methods to
entertain customers waiting in line. On a Web site, the ease of navigation is
critical for decreasing the number of abandoned virtual carts.

Blooms: Understand
Difficulty: Medium
Topic: 03-05 Purchasing the merchandise or service
45. Why is it important for retailers to understand how families make

purchase decisions?
Retailers should understand how families make purchase decisions because

when families make purchase decisions they often consider the needs of all
the family members.
In some cases, all participate in the decision making while in other situations,
one assumes the role of decision maker, but is highly influenced by the
others. Children especially can influence family decisions. Also, retailers can
attract consumers who shop with other family members by satisfying the
needs of all family members. Examples of this can include babysitting
services in hotels, play areas in stores, and pubs in department stores for men
who shop with their wives.

Blooms: Remember
Difficulty: Medium
Learning Objective: 03-03 Investigate how retailers can get customers to visit
their stores more frequently and buy more merchandise during each visit.
Topic: 03-12 Family
46. What does it mean when a retailer says that she wants to find a
retail market segment that has actionability?
Actionability means that the definition of a segment must clearly indicate what
the retailer should do to satisfy its needs.

Blooms: Remember
Difficulty: Medium

47. What does it mean when a retailer says that she wants to find a
retail market segment that is accessible?
A retail market segment is accessible if the retailer is able to deliver the

appropriate retail mix to the customers in the segment.

Blooms: Remember
Difficulty: Medium
48. List five possible retail market segments for athletic shoes.
Possible answers to this question include (1) joggers, (2) people who do
aerobic exercises, (3) teenagers, (4) people who place high value on
comfortable shoes, (5) people who want to look like they exercise, (6) parents
of elementary school children (as a way to protect their feet during their
growing years), (7) people who spend all day standing because of their jobs,
(8) basketball players, (9) people who walk for exercise, (10) tennis players,
and (11) people whose feet hurt because they have worn incorrect shoes all
their lives.

Blooms: Understand
Difficulty: Hard
49. Why are retailers not always able to use demographics for market
segmentation?
Demographics may not always be related to the needs and buying behaviours
of customers, and therefore may not be actionable.

Blooms: Understand
Difficulty: Medium

50. What kind of segmentation would the merchandising department

at Disney World use when stocking merchandise in their Main Street
stores? Why?
Benefit segmentation because visitors are all searching for the same benefits
as they buy souvenirs. Customers at Disney World want to purchase a
memory of the fun they had at the park.

Blooms: Understand
Difficulty: Medium
51. How do reference groups affect buying decisions?

Reference groups affect buying decisions by (1) offering information, (2)
providing rewards for specific purchasing behaviours, and (3) enhancing a
consumer’s self-image.

Blooms: Remember
Difficulty: Medium
52. What are four criteria for evaluating whether a retail segment is a
viable target market?
The criteria are (1) actionability, (2) identifiability, (3) accessibility, and (4)
size.

Blooms: Remember
Difficulty: Easy

53. What segmentation method would a national retail chain use to

sell paints custom designed for the various regions of the Canada?
Geographic

Blooms: Understand
Difficulty: Medium
54. What type of segmentation is being used by a 24-hour pharmacy?
Benefit sought

Blooms: Understand
Difficulty: Easy
55. Sears sells Craftsman tools which come with a lifetime warranty. If
you break one, just return it to the store, and Sears will replace the
broken tool with a new one. What kind of segmentation is Sears using?
Benefit segmentation

Blooms: Understand
Difficulty: Medium

Chapter 05
Retail Locations Strategy-Trade Area Decisions and Site Assessment

Multiple Choice Questions
1. Factors to consider in an accessibility analysis include:

A.ingress/egress
B. congestion
C. amount of parking facilities
D. road pattern
E. All of these

Blooms: Remember
Difficulty: Easy
Learning Objective: 05-02 Consider the three factors retailers consider when
evaluating and selecting a specific site.
Topic: 05-09 Traffic flow and accessibility
2. Ingress/egress refers to:
A.the amount of crowding of either cars or people
B. the renewal and rebuilding of offices, housing, and retailers in
deteriorating areas
C. ability to see the store and enter the parking lot safely
D. the ease of entering and exiting a site’s parking lot
E. None of these

Blooms: Remember
Difficulty: Medium
Learning Objective: 05-02 Consider the three factors retailers consider when
evaluating and selecting a specific site.
Topic: 05-09 Traffic flow and accessibility

3. A geographic area encompassing most of the customers who would

patronize a specific retail site and that accounts for the majority of a
store’s sales and customers is called a:
A.CMA
B. region
C. site
D. target market
E. trade area

Blooms: Remember
Difficulty: Easy
Learning Objective: 05-01 Examine the four major factors retailers consider
when evaluating an area.
Topic: 05-01 Evaluating Specific Areas for Locations
4. Location decisions can be divided into four levels: country, region, trade
area, and:
A.district
B. neighbourhood
C. specific site
D. CMA
E. province

Blooms: Remember
Difficulty: Easy
Topic: 05-01 Evaluating Specific Areas for Locations
5. A store that sold sheet music, band instruments, and offered in-store
lessons for the instruments would be most interested in _____________
when an analysis of the trade area was conducted for the new store.
A.the business climate
B. lifestyles of the trade area population
C. income and occupations of trade area population
D. size and composition of households in the trade area
E. the span of managerial control

Blooms: Understand
Difficulty: Medium
Topic: 05-02 Economic conditions

6. Retail promotion and distribution economies of scale can be achieved

with:
A.a saturated trade area
B. little competition
C. multiple locations
D. a sound business climate
E. supportive lifestyle demographics

Blooms: Understand
Difficulty: Medium
7. The owner of a store that sold New Age music, aromatherapy candles,
and herbal supplements would be most interested in _________ when
he did an analysis of the trade area for his new store.
A.the business climate
B. lifestyles of the trade area population
C. income and occupations of trade area population
D. size and composition of households in the trade area
E. the span of managerial control

Blooms: Understand
Difficulty: Medium
8. Which of the following would be considered when assessing

demographic characteristics?
A.Population growth
B. Size of households
C. Incomes
D. Education
E. All of these

Blooms: Understand
Difficulty: Easy
Learning Objective: 05-03 Define what a trade area is for a store and how
retailers determine the trade area, and develop an understanding of the
nature of consumers in the site’s trade area.
Topic: 05-13 Sources of information

9. When Dale was considering establishing a used record and CD shop,

he looked at the average household incomes of the local residents, their
education level, and the growth of the area. Which of the following
factors was Dale considering?
A.Business climate
B. Competition
C. Demographics
D. Economies of scale
E. Span of managerial control

Blooms: Remember
Difficulty: Medium
Learning Objective: 05-03 Define what a trade area is for a store and how
retailers determine the trade area, and develop an understanding of the
nature of consumers in the site’s trade area.
Topic: 05-14 Methods of estimating demand
10. A trade area that offers customers a good selection of goods and
services while allowing competing retailers to make good profits is said
to be:
A.competitively depleted
B. market developed
C. overstored
D. saturated
E. understored

Blooms: Remember
Difficulty: Easy
Topic: 05-03 Competition
11. Burger King seeks locations where their major competitor is

McDonald’s because they believe it’s important to have a strong
competitor so Burger King can develop methods to allow them to
successfully compete with them. These locations could be considered
as:
A.competitive trade areas
B. overstored trade areas
C. saturated trade areas
D. understored trade areas
E. trade specific locations

Blooms: Remember
Difficulty: Medium

12. To satisfy the needs of people living in small towns, the president
of a department store chain located her stores away from the larger
cities. It could be said that the president had a strategy to locate in:
A.abundant trade areas
B. overstored trade areas
C. urban trade areas
D. understored trade areas
E. undersaturated trade areas

Blooms: Understand
Difficulty: Medium
13. An area that has too few stores selling a specific good or service
to satisfy the needs of the population is said to be an:
A.overpopulated trade area
B. overstored trade area
C. underutilized trade area
D. underpopulated trade area
E. understored trade area

Blooms: Remember
Difficulty: Easy

14. Hardee’s fast food restaurant chain located its restaurants in small
towns that the larger chains had ignored because they believed the
market was too small to be profitable. Hardee’s was the first fast-food
operation in many small towns, and the chain was successful. Hardee’s
management looked for regions that were _____ in terms of fast-food
establishments.
A.underpromoted
B. market-depleted
C. understored
D. unsaturated
E. underutilized
An understored trading area is one that has too few stores selling a specific
good to satisfy the needs of the population.

Blooms: Remember
Difficulty: Medium
15. Three types of shopping situations are convenience shopping,

comparison shopping, and
A.unique shopping
B. specialty shopping
C. advantage shopping
D. off-price shopping
E. strategy shopping

Blooms: Remember
Difficulty: Easy
Learning Objective: 05-06 Discuss why some locations are particularly well-
suited to specific retail strategies.
Topic: 05-28 Shopping behaviour of consumers in retailer’s target market
16. When Jordan’s Furniture, The Couch Potato (furniture store), The
Bombay Furniture Company and Urban Barn all locate close to each
other in the city they are allowing consumers to
A.specialty shop
B. comparison shop
C. convenience shop
D. destination shop
E. category shop

Blooms: Remember
Difficulty: Medium

17. Category specialists consumers will go to even if it is inconvenient

are called
A.malls
B. dealers
C. unique merchandisers
D. destination stores
E. outlet centres

Blooms: Remember
Difficulty: Easy
18. Why have suburban shopping centres grown between 1950 and
1980?
A.Downtown shopping centres became unkempt and crime ridden.
B. During this time, the population shifted to the suburbs.
C. Local governments mandated the growth to attract urbanites.
D. Municipal shopping became difficult after business hours.
E. Urban dwellers found it easier to shop in the suburbs.

Blooms: Remember
Difficulty: Medium
Learning Objective: 05-05 Explore the types of locations that are available to
retailers and the relative advantages of each location type.
Topic: 05-20 Shopping centres
19. On his way home from work Barnard stopped at a shopping

centre. He parked right in front of the dry cleaners where he could pick
up his suit. He did not have to move his car because right next door was
a gift shop where he could pick up a baby gift for his new niece.
Conveniently enough, next door to that was a Mac’s Milk where he
purchased essentials like milk and cereal. Barnard was shopping in
what type of shopping centre?
A.Central business district
B. Fashion/specialty centre
C. Mall
D. Power centre
E. Strip centre

Blooms: Remember
Difficulty: Medium

20. Cathy needed new jeans for the cool change in the weather. She
decided to drive 20 minutes to a shopping centre. Once there, she had
to search for a parking spot and walk to get to the stores, but when she
got inside, she was warm and could leisurely walk to a variety of stores
that carried the assortments she was seeking. Cathy was shopping in
what type of shopping centre?
A.Central business district
B. Fashion/specialty centre
C. Mall
D. Power centre
E. Strip centre

Blooms: Remember
Difficulty: Medium
Topic: 05-21 Shopping malls
21. The two major configurations of shopping centres are:

A.Downtown and suburban
B. Freestanding and enclosed
C. Outlet centres and theme centres
D. Staple and fashion
E. Strip centres and enclosed malls

Blooms: Remember
Difficulty: Medium
22. Which of the following retailers would most likely be found in a

power centre?
A.Home Depot, Winners, and Best Buy
B. Starbucks Coffee and an independent retail bookstore
C. A liquor store, a convenience store, and a hair salon
D. A Shoppers Drug Mart, a Sears, and a Loblaws Grocery
E. An independent toy store, a women’s apparel store, a dry cleaner,
and a shoe store

Blooms: Remember
Difficulty: Medium

23. Which of the following statements about shopping malls is true?

A.Each retailer is responsible for the external environment outside its
store.
B. Shopping malls have lower rents than central business districts.
C. Managers of shopping malls either want to have all specialty stores
or all shopping goods stores-never a mix of the two.
D. The tenant mix in a shopping mall is not planned.
E. None of these statements about shopping malls are true.
The mall management takes care of the external environment. Rents at

shopping malls are high. Managers of shopping malls try to have a mix of
specialty and shopping goods stores. The tenant mix is very much planned.

Blooms: Remember
Difficulty: Medium
24. Even though planned shopping centres are an excellent site

option for retailers, they have their disadvantages. Which of the
following describes one of these disadvantages?
A.Each retailer is allowed to establish his/her own hours of operation
B. Competition is kept to a minimum because developers try not to have
more than one specialty store for each product category
C. Rents in malls are often higher than at other locations
D. The developer has no control over exterior signs
E. All of these are disadvantages
Shopping centres managers control hours and exterior signs. Competition

within shopping centres is often intense.

Blooms: Remember
Difficulty: Medium
25. What are some of the challenges being faced by malls?

A.Malls are being challenged as competition from other retail locations
(like power and lifestyle centres, etc.).
B. Shoppers are looking for “value” alternatives to stores found in malls.
C. The apparel business continues to be weak, causing some specialty
stores to close.
D. Many malls are old and unappealing to shoppers.
E. All of these are challenges being faced by malls.

Blooms: Remember
Difficulty: Easy

26. Shopping centres that focus on posh neighbourhoods, high-

income areas with an outdoor, traditional streetscape can be considered
as:
A.convenience centres
B. lifestyle centres
C. off-price centres
D. outlet centres
E. regional malls

Blooms: Remember
Difficulty: Easy
27. Hazelton Lanes in Toronto is a shopping centre composed of

upscale apparel stores, gift shops, and many high-quality boutiques. It is
an example of a/an:
A.convenience centre
B. fashion/specialty centre
C. outlet centre
D. off-price centre
E. price-oriented centre

Blooms: Remember
Difficulty: Medium
28. Beatrice has been sporting a new diamond ring for some time and
finally decided to shop for the wardrobe to match. She selected a
shopping centre featuring upscale apparel shops and boutiques that
was two hours away from her home, but according to Beatrice, it was
“well worth the drive”. Beatrice was probably going to shop in a/an:
A.convenience centre
C. outlet mall
D. power centre
E. regional mall

Blooms: Remember
Difficulty: Easy

29. Where would you most likely find a fashion/specialty centre?

A.At highway interchanges
B. In high-income trade areas
C. In middle-class neighbourhoods
D. In small towns
E. Near discount store malls
Fashion/specialty centres usually are found in trade areas having high income
levels, in tourist areas, or in some central business districts.

Blooms: Remember
Difficulty: Easy
30. Which of the following best describes outlet centres?

A.They are generally near regional shopping centres
B. They are typically located near traditional regional malls
C. They may have a trade area of 100 kilometres or more
D. They never offer first-quality, full-line merchandise
E. They are usually enclosed

Blooms: Remember
Difficulty: Medium
31. Why has the number of outlet centres declined?

A.Customer demand has declined
B. Customers can buy below full retail prices elsewhere
C. Customers are not satisfied with broken assortments and damaged
products
D. Traditional retailing has become more price-competitive
E. All of these are true.

Blooms: Remember
Difficulty: Medium

32. The Homer Laughlin China Company in the U.S. state of West
Virginia manufactures Fiesta china in a variety of colours. The factory
has a store where they feature Fiesta products that are discounted or
distressed. This type of centre is called a/an:
A.outlet centre
C. lifestyle centre
D. regional centre
E. demalling centre

Blooms: Remember
Difficulty: Easy
33. Which of the following statements about outlet centres is true?

A.It is predicted that the number of outlet centres will double over the
next decade
B. Outlet centres are not found outside of the United States
C. Outlet centres have the no-frills look of warehouse stores
D. Outlet centres are often located some distance from regional
shopping centres
E. Outlet centres sell only irregulars and overruns
There are so many outlet malls that many now carry first-run quality
merchandise and are as upscale as mall stores. Because there are so many
in the U.S., the number is declining here, but growing in the rest of the world.

Blooms: Remember
Difficulty: Medium
34. Why would a small retailer be interested in opening a shop in a

mall kiosk?
A.Kiosks can be in prime locations.
B. A kiosk is relatively inexpensive compared to a regular store.
C. The short-term leases can be helpful if the business fails.
D. The retailer can offer seasonal merchandise and then close after the
season.
E. All of these.

Blooms: Remember
Difficulty: Easy
Topic: 05-22 Other retail location opportunities

Retailing Management 5Th Canadian Edition by Levy - Test Bank

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1. When consumers go shopping for pleasure, they are seeking to satisfy

3. Retailers use a variety of approaches to stimulate problem recognition

4. Why should retailers understand how families make purchase

7. Many department stores have teen boards to help the retailer

8. Tony Hawk is one of many professional skateboarders in the U.S. who

9. Both a weight-loss center and a health club would be pleased to learn

Culture includes core values shared by most members of a society.

10. Which of the following is an example of a subculture in Canada?

12. La Senza Girl is a specialty retailer with assortments that are of

Fishing enthusiasts represent a group of customers whose needs can be

14. A retail market segment that has _____________ is able to

15. Which of the following is not a criterion for evaluating whether a

A target segment must be large enough to support a unique retailing mix.

20. Home Depot operates home improvement stores in major

21. The segmentation scheme best described by “birds of a feather

23. __________ segmentation is the primary means for segmenting

Age is a demographic variable.

Race is a demographic variable.

25. A cruise ship specializing in entertaining families with children

Family life cycle is a demographic variable.

26. Harley Davidson dealers sell merchandise that interest men in

27. The retail market segments for licensed World Wrestling

Age and sex are demographic variables.

29. Lifestyle refers to:

30. The Grand Casino has identified 2,000 people it categorizes as

32. Do It Again Sports has everything the weekend warrior needs to

34. Which of the following segmentation methods would be most

35. Which of the following segmentation methods would be most

36. Which of the following segmentation methods would be most

37. Which of the following segmentation methods would be most

Its customers are all seeking similar benefits.

39. Composite segmentation defines target markets in terms of

40. Why do retailers use composite segmentation?

42. This phenomenon known as kidfluence is influence that kids have

43. composite segmentation plans use multiple variables to identify

44. Retailers want to reduce the number of abandoned shopping carts

45. Why is it important for retailers to understand how families make

Retailers should understand how families make purchase decisions because

A retail market segment is accessible if the retailer is able to deliver the

50. What kind of segmentation would the merchandising department

51. How do reference groups affect buying decisions?

53. What segmentation method would a national retail chain use to

54. What type of segmentation is being used by a 24-hour pharmacy?

1. Factors to consider in an accessibility analysis include:

3. A geographic area encompassing most of the customers who would

6. Retail promotion and distribution economies of scale can be achieved

8. Which of the following would be considered when assessing

9. When Dale was considering establishing a used record and CD shop,

11. Burger King seeks locations where their major competitor is

15. Three types of shopping situations are convenience shopping,

17. Category specialists consumers will go to even if it is inconvenient

19. On his way home from work Barnard stopped at a shopping

21. The two major configurations of shopping centres are:

22. Which of the following retailers would most likely be found in a

23. Which of the following statements about shopping malls is true?

The mall management takes care of the external environment. Rents at

24. Even though planned shopping centres are an excellent site

Shopping centres managers control hours and exterior signs. Competition

25. What are some of the challenges being faced by malls?