Retailing Strategy

Question 1

On a recent shopping trip, Jana noted many of the great qualities about her favorite store that added value to her shopping experience. She loved the selection of products she had to choose from and that everything she needed was there. Jana also loved the way she was treated when she walked in. Every employee asked if she needed any help finding anything and made her feel special. Of the aspects that Jana specifically noted, which are important retail “value-add” functions?
A. Providing Assortments, Providing Services, Order Fulfillment
B. Breaking Bulk, Holding Inventory, Providing Services
C. Providing Assortments, Holding Inventory, Providing Services
D. Providing Assortments, Holding Inventory, Providing Services, Disintermediation

Answer 1

C

Question 2

The retail pricing, store location, merchandise and the communication strategy chosen by a store are known collectively as the
A. Retail positioning
B. Wheel of retailing
C. Retail gravitation
D. Retailing mix

Answer 2

D

Question 3

Jami found a dress at a high end fashion store that she just had to have, but they didn’t have it in her size. She decided to go home and order the dress on the store’s website. During the checkout process Jami checked the box to receive emails from the store. Now she is annoyed that the store sends her an email every week. What form of marketing is J Crew utilizing?
A. Personal selling
B. Permission marketing
C. Direct mail
D. Ambush marketing

Answer 3

B

Question 4

Jaime manages the cosmetics department of a department store. The cosmetics department is 850 square feet. Jaime does a great job; the department’s total sales average $6,500 a month. Unfortunately, he has really bad allergies, which cause him to sneeze every time he helps a customer shop for makeup. Many customers have been returning merchandise because they get disgusted when they get home and remember that Jaime sneezed on it. The annual return rate is 32% across all cosmetics products. What is the annual Net Sales per Square foot in the cosmetics department?
A. $7.65
B. $5.20
C. $62.40
D. $29.36

Answer 4

C

Question 5

Brenda decides she wants to buy a new laptop for school. After remembering an ad that she recently saw in People magazine for the new pink Sony Vaio notebook, she sets her mind on getting that product. Brenda first travels to Walmart to see what type of assortment they have to offer and to get a good deal, but an employee tells here that their store carries only Toshiba computers. Still on a mission, she then travels to Best Buy hoping to find her pink laptop there. Although Best Buy does have Sony Vaio’s in stock, that particular store carries only the black and silver versions. Brenda’s friend tells her to go home and sign on to Amazon.com. Right there on the main screen is an advertisement for her pink Sony Vaio! Excited and relieved, she instantly purchases the laptop. What types of retailers were involved in Brenda’s laptop purchase?

  I.      nonstore retailer
  II.    discounter
  III.   specialty retailer
  IV.   power retailer
  V.    department store 

A. I, II, and IV only
B. II, III, and IV only
C. I, IV, and V only
D. II, IV, and V only

Answer 5

A

Question 6

Cindy is craving chocolate. She stops into a store with a wide variety of chocolate and candy and encounters a sales clerk who helps her find exactly what she is looking for. Cindy purchases a single bar of chocolate to satisfy her compulsive craving and now knows where to find it if she ever wants more. In this example the retailer is adding value to the purchase by doing all of the following EXCEPT:

A. Decreasing prices
B. Providing assortment
C. Holding inventory
D. Breaking bulk

Answer 6

A