Question 1

Supermarkets gain higher profit margins from private-label merchandise than national brands.

Accepted Answer

A) True 
 B)False

Question 2

Best Buy is a category specialist for the electronics industry.This means the stores _____.

Accepted Answer

A)   offer their customers narrow breadth and depth of merchandise
B)   sell only their own private-label brands
C)   have excellent after sales customer service
D)   avoid self-service approach
E)   offer a narrow but deep assortment of merchandise

Question 3

_____ are off-price retailers owned by manufacturers or retailers.

Accepted Answer

A)   Dollar stores
B)   Closeouts
C)   Thrift stores
D)   Outlet stores
E)   Supercenters

Question 4

Which of the following is true of off-price retailers?

Accepted Answer

A)   They offer a consistent assortment of soft goods at low prices.
B)   They sell brand-name merchandise at reduced prices.
C)   They offer gift registries.
D)   They require suppliers to give them a variety of advertising allowances and markdown discounts.
E)   They sell designer-label merchandise at 20 to 60 percent higher than the manufacturer's suggested retail price.

Question 5

What type of a retail store is Walgreens considered to be?

Accepted Answer

A)   Full-line discount store
B)   Drugstore
C)   Department store
D)   Convenience store
E)   Supercenter

Question 6

Private-label brands are also called _____.

Accepted Answer

A)   closeouts
B)   category killers
C)   irregulars
D)   inclusive brands
E)   store brands

Question 7

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

Accepted Answer

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.
E)   the merchandise sold by them are always closeouts.

Question 8

_____ are products that have minor blemishes to the fabric or errors in the construction.

Accepted Answer

A)   Close-outs
B)   Irregulars
C)   Category killers
D)   Soft goods
E)   Hard goods

Question 9

Due to the _____ of services,service retailers like Universal Studios Theme Parks,Delta,and Applebee's restaurants,sometimes,find it difficult to match supply and demand.

Accepted Answer

A)   intangibility
B)   perishability
C)   inconsistency
D)   consumability
E)   compatibility

Question 10

What type of store is Target considered to be?

Accepted Answer

A)   Off-price retailer
B)   Department store
C)   Full-line discount store
D)   Extreme value retailer
E)   Specialty retailer

Question 11

Which of the following best defines a stock-keeping unit?

Accepted Answer

A)   The number of different items offered in a merchandise category
B)   End-of-season merchandise that will not be used by a retailer in following seasons
C)   Merchandise with minor mistakes in construction
D)   Each different item of merchandise offered by a retailer
E)   The number of merchandise categories a retailer offers

Question 12

What type of store is Dollar General considered to be?

Accepted Answer

A)   Off-price retailer
B)   Department store
C)   Full-line discount store
D)   Extreme-value retailer
E)   Specialty retailer

Question 13

Why are category specialists sometimes called category killers?

Accepted Answer

A)   They are often located close to full-line discount stores and discount stores which offer a deep assortment of merchandise.
B)   They are located at stand-alone sites.
C)   They have a broad merchandise mix and shallow assortment.
D)   They can dominate a category of merchandise making it difficult for other retailers to compete.
E)   They carry mainly technologically obsolete merchandise.

Question 14

_____ are end-of-season merchandise that will not be in the manufacturer's offerings going forward.

Accepted Answer

A)   Close-outs
B)   Irregulars
C)   Endcaps
D)   Category killers
E)   Soft goods

Question 15

A special type of resale store where merchandise is donated and proceeds go to charity is called a(n) _____.

Accepted Answer

A)   extreme-value retailer
B)   thrift store
C)   consignment shop
D)   dollar store
E)   supercenter

Question 16

Which of the following is true of single-store retailers?

Accepted Answer

A)   They do not have direct contact with their customers.
B)   They are not bound by the bureaucracies inherent in large retail organizations.
C)   They are totally independent of their owner-managers' capabilities to make any retail decision.
D)   They must join a wholesale-sponsored voluntary competitive group to compete against corporate chains.
E)   They are very rigid and lack quick adaptability to market changes and customer needs.

Question 17

Which of the following is a third tier department store?

Accepted Answer

A)   Macy's
B)   Neiman Marcus
C)   TJ Maxx
D)   Nordstrom
E)   JCPenny

Question 18

Which of the following statements is true about specialty stores?

Accepted Answer

A)   They tailor their retail strategy toward very specific market segments.
B)   They group products by brand instead of product category like in department stores.
C)   They offer very shallow and narrow assortments.
D)   They completely avoid including their own private-label brands in the store.
E)   They discourage sampling.

Question 19

With respect to retailing,which of the following best defines assortment of merchandise?

Accepted Answer

A)   Each different item of merchandise offered by a retailer
B)   The number of different items offered in a merchandise category
C)   The number of merchandise categories a retailer offers
D)   Merchandise with minor mistakes in construction
E)   End-of-season merchandise that will not be used in following seasons

Question 20

Private-label brands benefit retailers but not customers.

Accepted Answer

A) True 
 B)False

Exam 2: Types of Retailers

_____ are products that have minor blemishes to the fabric or errors in the construction.

Correct AnswerverifiedShow Answer

_____ are end-of-season merchandise that will not be in the manufacturer's offerings going forward.

Correct AnswerverifiedShow Answer

Which of the following is true of single-store retailers?

Correct AnswerverifiedShow Answer

Supermarkets gain higher profit margins from private-label merchandise than national brands.

Correct AnswerverifiedShow Answer

Private-label brands benefit retailers but not customers.

Correct AnswerverifiedShow Answer

Which of the following statements is true about specialty stores?

Correct AnswerverifiedShow Answer

Which of the following best defines a stock-keeping unit?

Correct AnswerverifiedShow Answer

_____ are off-price retailers owned by manufacturers or retailers.

Correct AnswerverifiedShow Answer

Private-label brands are also called _____.

Correct AnswerverifiedShow Answer

Due to the _____ of services,service retailers like Universal Studios Theme Parks,Delta,and Applebee's restaurants,sometimes,find it difficult to match supply and demand.

Correct AnswerverifiedShow Answer

What type of a retail store is Walgreens considered to be?

Correct AnswerverifiedShow Answer

With respect to retailing,which of the following best defines assortment of merchandise?

Correct AnswerverifiedShow Answer

Best Buy is a category specialist for the electronics industry.This means the stores _____.

Correct AnswerverifiedShow Answer

Which of the following is true of off-price retailers?

Correct AnswerverifiedShow Answer

Why are category specialists sometimes called category killers?

Correct AnswerverifiedShow Answer

What type of store is Target considered to be?

Correct AnswerverifiedShow Answer

A special type of resale store where merchandise is donated and proceeds go to charity is called a(n) _____.

Correct AnswerverifiedShow Answer

Which of the following is a third tier department store?

Correct AnswerverifiedShow Answer

What type of store is Dollar General considered to be?

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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