True/False Indicate whether the statement is true or
false.
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1.
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Retail stores are generally the only part of the distribution channel seen by
consumers since most consumers have little contact with manufacturers and almost none with
wholesaling intermediaries.
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2.
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The first form of retailing in Canada was the general store.
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3.
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The wheel of retailing concept explains the patterns of change in retailing as a
process of evolution among institutions in which a new retailer enters the market as a low-price
competitor and evolves as the result of reaction by competitors.
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4.
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Suburban shopping centres, convenience food stores, and vending machines are
considered exceptions to the wheel of retailing concept because they were not founded on the basis of
low-price appeals.
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5.
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After identifying a target market, the next step in a retailer’s
decision-making process is to develop marketing strategies to attract its target market into its
store(s).
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6.
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The retail mix is comprised of decisions related to the goods and/or services
that a retail operation will offer, the prices that will be charged for these goods and/or services,
the retail operation’s location and distribution, and the retailer’s intended use of the
Internet.
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7.
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The variable in the retail mix that continually drives the establishment of new
types of retail operations is price.
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8.
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Retail trade area analysis and the law of retail gravitation are tools that have
been developed to help retailers determine the number of retail outlets they should operate in a
given region of the country.
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9.
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Retail image does not refer to the retailer’s perception of how the store
is positioned relative to competition. Rather, it refers to the consumer’s perception of
the store and the shopping experience it provides.
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10.
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The differentiation triangle refers to the three elements that retailers
typically use to differentiate themselves from their competitors. Changes in these elements can
give the customer reasons to choose one store over another.
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11.
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When Tim Hortons expanded its menu beyond donuts and coffee to include soups and
sandwiches, it was using product line-up, one of the three elements in the differentiation triangle,
to differentiate itself from other donut shops (such as Country Style).
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12.
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This is no universal system for classifying retailers, but the most commonly
used method of categorizing retailers is by the product lines they handle.
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13.
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Grouping retailers by product lines produces three major categories:
limited-line retailers, full-line retailers, and mass merchandisers.
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14.
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Department stores are general-merchandise retailers that serve their customers
as one-stop shopping destinations for almost all personal and household items.
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15.
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Membership and warehouse clubs and large-format specialty stores are also known
as “big-box retailers” because of their size and warehouse-type facility.
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16.
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A grouping of two or more large-format retailers in the same area is known as a
hypermarket.
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17.
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E-tailing is slow in developing in Canada. A recent study showed that less
than half of Canadian Internet users have bought goods or services from a retail Web site in the last
six months.
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18.
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The benefits to consumers of Internet retailing include convenience, price
competition, comparison shopping, product selection, and customization.
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19.
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Scrambled merchandising, which eases the consumer’s need to shop at
multiple locations, simplifies manufacturers’ channel decisions.
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20.
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The drugstore is a classic example of scrambled merchandising in that
prescription and over-the-counter medications are only a small portion of what it offers for
sale.
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Multiple Choice Identify the choice that best completes the
statement or answers the question.
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21.
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H & R Block prepares tax returns for individuals at convenient locations
throughout Canada. H & R Block is a(n)
a. | category killer. | b. | mass merchandiser. | c. | retailer. | d. | electronic data
interchange. |
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22.
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A major determinant of success in retailing is the development of
a. | a sustainable differential advantage over competition. | b. | a process to make
almost daily changes in the store’s operations. | c. | a means to offer effective and efficient
self-service to customers. | d. | a wheel of retailing
mentality. |
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23.
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Retail operations illustrate the marketing concept because
a. | retail innovations often develop as attempts to better satisfy particular customer
needs. | b. | retail innovations often develop to make the retailer more
competitive. | c. | both of the above. | d. | none of the
above. |
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24.
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When McDonald’s first appeared on the Canadian scene, the restaurants
offered a very limited menu, very low prices, and no dining rooms, playgrounds, or public
restrooms. Today the chain has an expanded menu, moderate prices, and a number of services
including dining rooms, playgrounds, etc. These changes can be explained by
a. | the retail image. | b. | mass merchandising. | c. | selling
up. | d. | the wheel of retailing. |
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25.
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Retailers base their marketing decisions on three fundamental steps in the
marketing strategy process. The first step is to
a. | take an audit of financial resources. | b. | pick a target market. | c. | decide on products
and services. | d. | set customer service standards. |
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26.
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It is necessary for retailers to understand the strengths and weaknesses of
their competitors because this understanding
a. | will help point out opportunities for meeting customer needs better than
competition. | b. | will allow a retailer to time price specials better . | c. | will result in
improved sales and profitability. | d. | all of the
above. |
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27.
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All of the following are part of the retailing mix except
a. | promotion. | b. | store atmospherics. | c. | pricing. | d. | target market. |
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28.
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The key elements used by retailers to differentiate themselves versus
competition are:
a. | price, location, and store atmosphere and location. | b. | location, location,
location. | c. | location, image, and product selection. | d. | product selection,
supplementary services, and image. |
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29.
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The bases for categorizing retailers includes all of the following except
a. | shopping effort expended by customers. | b. | level of markups charged. | c. | services provided
for customers. | d. | form of ownership. |
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30.
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Most furniture stores, appliance retailers, clothing outlets, and sporting goods
stores would be classified as
a. | convenience retailers. | b. | shopping stores. | c. | limited-line
retailers. | d. | self-service retailers. |
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31.
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Supermarkets carry nonfood products like detergents and cleaning aids
because
a. | consumers are willing to buy these products in a supermarket, and nonfood items have
a higher profit margin than food products. | b. | consumers demand one-stop
shopping. | c. | they can provide a better selection of nonfood products than most other types of
retailers. | d. | consumers prefer supermarket pricing policies. |
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32.
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Which, if any, of the following statements is false?
a. | Most specialty stores are independent, small-scale operations. | b. | Specialty stores
typically carry specialty goods. | c. | Specialty stores typically handle only part of
a single product line. | d. | None of the
above. |
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33.
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Discount houses, off-price retailers, hypermarkets, and catalogue retailers are
all examples of
a. | direct marketers. | b. | category killers. | c. | mass
merchandisers. | d. | none of the above. |
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34.
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Which of the following statements is true with regard to house-to-house
retailing?
a. | House-to-house retailing is a form of nonstore or direct
retailing. | b. | House-to-house retailing accounts for less than 1 percent of all retail
sales. | c. | House-to-house retailing is a high-cost method of distributing products and
services. | d. | All of the above statements are true. |
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35.
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Automatic merchandising
a. | had its major growth prior to World War II. | b. | has limited future
growth potential due to the cost of vending machines and the necessity for regular maintenance and
repair. | c. | provides a whole range of shopping and specialty goods. | d. | is a type of
direct-response retailing. |
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36.
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Recent studies have shown that the biggest advantage to consumers of shopping
online is
a. | its 24/7 convenience. | b. | transaction security. | c. | product
selection. | d. | product quality. |
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37.
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In order for an e-tailer to replace a traditional bricks-and-mortar retailer as
a consumer’s preferred shopping venue, the Internet operation must
a. | be easy to use. | b. | provide better performance than a traditional
retailer in terms of factors like service, entertainment, and experience with the
product. | c. | both of the above. | d. | none of the
above. |
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38.
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The shopping centre that is most often composed of a supermarket and a group of
smaller stores such as a drugstore, laundry, dry cleaner, and perhaps a beauty parlour or barber shop
is the
a. | regional shopping centre. | b. | community shopping centre. | c. | neighbourhood
shopping centre. | d. | downtown shopping centre. |
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39.
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Differences between a community shopping centre and a regional shopping centre
include all of the following except
a. | a regional shopping centre is typically much larger than a community shopping centre
in terms of square footage and number of stores. | b. | a regional shopping centre requires a trade
area with at least 150,000 people residing within 30 minutes’ drive time; a community shopping
centre serves a smaller number of potential shoppers. | c. | branch department stores are found in regional
shopping centres and not in community shopping centres. | d. | a regional shopping
centre would probably have more specialty stores than would a community shopping
centre. |
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40.
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Scrambled merchandising developed as a retailer product strategy because
a. | retailers needed to add more high-profit lines. | b. | retailers wanted to
complicate manufacturers’ distribution channel decisions. | c. | retailers wanted to
return to general store formats. | d. | none of the
above. |
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