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When the manager of a local electronics store decides to offer its customers a gift-wrapping service for the holidays, this is a decision about:

161. When the manager of a local electronics store decides to offer its customers a gift-wrapping service for the holidays, this is a decision about:

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A. Product
B. Place
C. Promotion
D. Price
162. When a supermarket manager decides to offer online ordering at the store’s website, this is a decision about:

A. Product
B. Place
C. Promotion
D. Price
163. When a supermarket manager decides to set up an end-of-aisle display for 12-pack containers of Coke Zero, this is a decision about:

A. Product
B. Place
C. Promotion
D. Price
164. When a department store manager decides to offer its female shoppers a free trial of Clinique’s new skin cream, this is a decision about:

A. Product
B. Place
C. Promotion
D. Price
165. When a supermarket manager decides the amount to charge customers for home delivery of grocery items, this is a decision about:

A. Product
B. Place
C. Promotion
D. Price
166. When the manager of a RadioShack electronics store decides to accept American Express credit cards from its customers, this is a decision about:

A. Product
B. Place
C. Promotion
D. Price
167. When the manager of a RadioShack electronics store decides to offer a store credit card (RadioShack VISA), this is a decision about:

A. Product
B. Place
C. Promotion
D. Price
168. Which of the following is an economic need which helps explain why consumers choose a particular retailer?

A. Prestige
B. Status
C. Comfort
D. Value
E. Safety
169. Most conventional retailers in the U.S. are:

A. supermarkets.
B. mass-merchandisers.
C. limited-line stores.
D. specialty stores.
E. department stores.
170. Which of the following is the best example of a conventional retailer?

A. A limited-line store.
B. A department store.
C. A supermarket.
D. A convenience (food) store.
E. None of these is a good example of a conventional retailer.
171. According to the text, single-line stores are also known as

A. general stores.
B. limited-line stores.
C. specialty shops.
D. department stores.
E. boutique stores.
172. A limited-line store is to a single-line store as

A. a tennis shop is to a sporting goods store.
B. a paint store is to a drugstore.
C. quality is to price.
D. a CD and tape store is to a movie theater.
E. full service is to self-service.
173. A typical problem for limited-line retailers is that:

A. it is almost impossible for them to satisfy any particular target markets better than other types of retailers.
B. their marketing strategy usually relies only on low price.
C. they usually cannot carry enough items in a line for any customers to find what they want.
D. many of the items they carry are slow moving.
E. All of these are problems for limited-line retailers.
174. Which of the following statements about single- and limited-line stores is TRUE?

A. Many are small, with high expenses relative to sales.
B. They usually believe in a “buy low and sell high” philosophy.
C. Such stores face the costly problem of having to stock some slow-moving items in order to satisfy their target markets.
D. Most conventional retailers are single- or limited-line stores.
E. All of these statements about single- and limited-line stores are TRUE.
175. Limited-line stores

A. specialize in certain lines of related products rather than a wide assortment.
B. carry anything they can sell in reasonable volume.
C. are a type of unconventional general store.
D. are larger stores that are organized into many separate departments and offer many product lines.
E. seldom build good relationships with their customers.
176. A _____ is a type of conventional limited-line store that is usually small and has a distinct “personality.”

A. general store
B. mass-merchandising shop
C. specialty shop
D. department store
E. hypermarket
177. A _________ aims at a carefully defined target market by offering a unique product assortment, knowledgeable salesclerks, and better service.

A. general store
B. mass-merchandising shop
C. specialty shop
D. department store
E. convenience store
178. Specialty shops:

A. offer fewer services than the typical limited-line store.
B. have trouble deciding what to carry because it’s hard for them to get to know what their customers want.
C. rely heavily on knowledgeable salesclerks.
D. usually sell convenience products.
E. None of these alternatives are correct for specialty shops.
179. Specialty shops generally:

A. want to be known for the distinctiveness of their product assortment and the special services they offer.
B. sell homogeneous shopping products.
C. are very good at speeding turnover.
D. carry complete lines–like department stores.
E. All of these alternatives are correct for specialty shops.
180. The “Fashion Place” carries a carefully selected and distinctive assortment of traditional women’s business clothing and accessories for upper-class executives in Boston. It emphasizes customer service with its well-trained salesclerks. The store is probably a:

A. small department store.
B. specialty shop.
C. convenience store.
D. single-line store.
E. limited-line store.
181. “Soak” is a retailer with two locations in a major metropolitan area, both of which are in large, popular shopping centers. It carries a unique assortment of high-quality shower and bath products, such as soaps, bubble bath, and bath oils. One of its most popular products is a “bath bomb”–a round ball that fizzes and releases aromatic bath oils when placed in a bathtub filled with warm water. The small staff at the store is very knowledgeable about the store’s products and provides a high level of customer service. “Soak” would be classified as a:

A. Convenience store.
B. Department store.
C. Discount house.
D. Specialty shop.
E. General store.
182. Compared to more conventional retailers, which of the following retailers offer both expanded assortment and service?

A. Mass-merchandisers.
B. Door-to-door salespeople.
C. Direct-mail retailers.
D. Specialty shops.
E. Supermarkets.
183. Department stores:

A. Are no longer a major retail force in large U.S. cities.
B. Have increased in number since the 1970s.
C. Usually offer many product lines.
D. Have increased their share of retail business since the 1970s.
E. Are not threatened by mass-merchandising retailers.
184. Department stores:

A. usually aim at customers seeking convenience products.
B. have accounted for a larger share of retail sales every year since 1950.
C. have no trouble holding their own against mass-merchandisers.
D. are organized into separate departments.
E. All of these alternatives are true for department stores.
185. Department stores:

A. are basically a group of limited-line stores under one roof.
B. are decreasing in number, average sales per store, and share of retail business.
C. usually aim at customers seeking shopping products.
D. are usually strong in customer service.
E. All of these alternatives are true for department stores.
186. Department stores:

A. are large stores which emphasize depth and distinctiveness rather than variety.
B. have declined since the 1970s because of competition from well-run limited-line stores and mass-merchandisers.
C. are usually weak in customer service.
D. usually emphasize specialty products.
E. All of these alternatives are true for department stores.
187. ___________ stores are usually strong in customer services, including credit, merchandise return, delivery, and sales help.

A. General
B. Limited-line
C. Department
D. Specialty
E. Luxury
188. The “mass-merchandising” concept:

A. suggests aiming at small but profitable target markets.
B. focuses on increasing sales and speeding turnover by lowering prices.
C. supports the conventional retailer’s “buy-low and sell-high” philosophy.
D. stresses the need for conventional stores.
E. All of these alternatives are correct for the “mass-merchandising” concept.
189. The ____________ says that retailers should offer low prices to get faster turnover and greater sales volumes by appealing to larger markets.

A. Wheel of retailing theory
B. Production concept
C. Mass-merchandising concept
D. Sales concept
E. Primary industry theory
190. Which of the following are NOT “conventional retailers”?

A. Single-line stores
B. General stores
C. Supermarkets
D. Limited-line stores
E. None of these, i.e., all are “conventional retailers.”
191. Compared to conventional retailers, which of the following types of retailers offer a wider product assortment but less service?

A. Convenience stores.
B. Supermarkets.
C. Telephone order retailers.
D. Department stores.
E. Limited-line stores.
192. Expanded assortment and/or reduced margins and service are characteristic of

A. supermarkets.
B. convenience stores.
C. specialty shops.
D. the Internet.
E. department stores.
193. The first retailers to really show the importance of the mass-merchandising concept were the operators of:

A. general stores.
B. supermarkets.
C. single-line stores.
D. department stores.
E. limited-line stores.
194. Which of the following retailers was the first to adopt the mass-merchandising concept?

A. Department stores.
B. Discount houses.
C. Supermarkets.
D. General stores.
E. Supercenters.
195. A retail store that averages about $17 million in sales annually and specializes in groceries–with self-service and large assortments is a:

A. mass-merchandiser.
B. specialty shop.
C. convenience food store.
D. discount house.
E. supermarket.
196. Supermarkets:

A. Usually earn net profits that are at least 15 percent of sales.
B. Were late adopters of the mass-merchandising concept.
C. Usually carry about 100,000 product items per store.
D. Are designed to maximize efficiency.
E. All of these alternatives are correct for supermarkets.
197. Regarding supermarkets, which of the following statements is TRUE?

A. It’s best to think of supermarkets as “conventional retailers.”
B. Supermarket net profits after taxes usually are about 1 percent of sales–or less.
C. Worldwide, supermarkets make up the majority of food stores.
D. The early supermarkets were based on the premise that consumers would pay more for better selection and service.
E. All of these statements about supermarkets are TRUE.
198. Supermarkets are

A. stores offering “hard goods” at substantial price cuts to customers.
B. large, self-service stores with many departments that emphasize “soft goods” and staples but still follow the discount house’s emphasis on lower margins to get faster turnover.
C. large stores specializing in groceries with self-service and wide assortments.
D. very large stores that try to carry not only food and drug items but all goods and services that the consumer purchases routinely.
E. a convenience-oriented variation of the conventional limited-line food stores.
199. Regarding supermarkets, which of the following statements is TRUE?

A. They average less than $5 million a year in sales.
B. Net profits after taxes usually amount to about 3 percent of sales.
C. Compared to super warehouse stores, they offer lower prices and more service.
D. None of these statements is TRUE.
200. Regarding supermarkets, which of the following is NOT true?

A. They introduced self-service to reduce their costs.
B. After-tax profits are very good–averaging 10 to 15 percent of sales.
C. The newer ones carry 47,000 product items.
D. They average about $17 million a year in sales.
E. They got their start as an experiment during the Depression.

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