Question 1

Most retail experts agree that _____ will NOT be one of the four new retail formats to be successful in the near future.

Accepted Answer

A)   liquidators
B)   recyclers
C)   off-pricers
D)   supercenters
E)   rental operationsF) D) and E)
G) All of the above

Question 2

The break-even point is where total revenues equal total expenses.

Accepted Answer

A) True 
 B)False

Question 3

What factors (other than price)do customers place a value on? How can a retailer use these factors to create a differential advantage?

Accepted Answer

Many customers place a high value on att...

Question 4

Nonprice variables are directed at enlarging the retailer's demand by offering customers benefits beyond simply the lowest price.

Accepted Answer

A) True 
 B)False

Question 5

In a monopolistically competitive market,the retailer will be confronted with a negatively sloping demand curve.

Accepted Answer

A) True 
 B)False

Question 6

Retailers would like to compete in _____ since many retailers in such markets achieve an above-average return on investment due to the low level of competition in the marketplace.

Accepted Answer

A)   intratype markets
B)   overstored markets
C)   understored markets
D)   pure monopolies
E)   divertive marketsF) C) and D)
G) D) and E)

Question 7

The theory of retail competition that states that new retail institutions enter the marketplace as low-price,low-margin operations and eventually begin to offer more services and charge higher prices is the:

Accepted Answer

A)   retail accordion theory.
B)   high/low theory.
C)   natural selection theory.
D)   retail life cycle theory.
E)   wheel of retailing theory.F) A) and E)
G) B) and E)

Question 8

To be successful in retailing today,given the slower population growth rate,retailers will grow by:

Accepted Answer

A)   taking away sales from competitors.
B)   reducing the number of stores they have.
C)   having their industry legislated as a monopoly.
D)   accusing their competitors of unfair competition.
E)   reducing customer services.F) A) and B)
G) B) and C)

Question 9

According to the text,what is the one important difference between off-price retailers and discounters?

Accepted Answer

A)   Discounters carry only brands that they are able to get on special deals from the manufacturer.
B)   Off-price retailers offer better prices
C)   Discounters offer greater selection
D)   Off-price retailers offer more convenient locations
E)   Discounters offer continuity of brandsF) A) and B)
G) A) and C)

Question 10

When Gap Stores get an exclusive contract to sell uniforms to your old high school,it is an example of:

Accepted Answer

A)   monopolistic competition.
B)   oligopolistic competition.
C)   pure monopoly.
D)   pure competition.
E)   perfect competition.F) B) and C)
G) C) and E)

Question 11

Today specialization in merchandise categories has once again become a dominant competitive strategy.

Accepted Answer

A) True 
 B)False

Question 12

The _____ theory of retail evolution describes retail institutions as evolving from outlets that offer wide assortments to specialized stores that offer narrow assortments,and then return to the wide assortment stores,continuing this pattern again and again.

Accepted Answer

A)   wheel of retailing
B)   retail life cycle
C)   retail accordion
D)   dominant competitive
E)   turnoverF) A) and E)
G) A) and B)

Question 13

Explain why a retailer may wish to engage in a private label branding strategy.

Accepted Answer

As retailing continues to change,the inc...

Question 14

The growth of nonstore retailing growth can be attributed to:

Accepted Answer

A)   Accerelerated communication technology and changing consumer lifestyles.
B)   Heightened global competition and increasing use of private labels.
C)   The development of off price retailers and supercenters.
D)   The rapid growth of qualified sales help in bricks-and-mortar stores and more convenient retail locations.
E)   The development of recycled merchandise retailers and liquidators.F) A) and D)
G) None of the above

Question 15

According to the wheel of retailing theory,_____ currently appear to be in the vulnerability phase of their evolution.

Accepted Answer

A)   outlet malls
B)   warehouse clubs
C)   health spas
D)   The Internet
E)   discount department storesF) C) and D)
G) A) and B)

Question 16

Customers can "self-inflict" this type of competition when a brand name is perceived as unique and highly valued,and a retailer controls its sale.

Accepted Answer

A)   Pure competition
B)   Pure monopoly
C)   Monopolistic competition
D)   Oligopolistic competition
E)   Perfect competitionF) D) and E)
G) B) and C)

Question 17

As a warehouse club manager,you have noticed that this format's market share has stabilized.As such,you fear severe profit declines as warehouse clubs are now in the _____ stage of the retail life cycle.

Accepted Answer

A)   introduction
B)   growth
C)   maturity
D)   decline
E)   vulnerabilityF) A) and E)
G) C) and E)

Question 18

Retailers who continue to use technology in innovative ways within the supply chain will achieve greater efficiency in their operations.

Accepted Answer

A) True 
 B)False

Question 19

Divertive competition occurs when:

Accepted Answer

A)   retailer A sends its customer to retailer B to purchase any products that A had "out-of-stock."
B)   the customer buys product A rather than product B, which was the one he/she was shopping for.
C)   a retailer intercepts and makes a sale to a customer that normally would have purchased the product at another retail store.
D)   the retailer tries to entice the customer to buy a more expensive model or brand than wanted.
E)   the customer buys a private label instead of his/her usual brand.F) A) and B)
G) A) and D)

Question 20

Every time different types of retail outlets sell the same lines of merchandise and compete for the same limited amount of consumer dollars available,intertype competition occurs.

Accepted Answer

A) True 
 B)False

Exam 4: Evaluating the Competition in Retailing

Most retail experts agree that _____ will NOT be one of the four new retail formats to be successful in the near future.

Correct AnswerverifiedShow Answer

The _____ theory of retail evolution describes retail institutions as evolving from outlets that offer wide assortments to specialized stores that offer narrow assortments,and then return to the wide assortment stores,continuing this pattern again and again.

Correct AnswerverifiedShow Answer

According to the text,what is the one important difference between off-price retailers and discounters?

Correct AnswerverifiedShow Answer

Explain why a retailer may wish to engage in a private label branding strategy.

Correct AnswerverifiedAs retailing continues to change,the inc...View AnswerShow Answer

Divertive competition occurs when:

Correct AnswerverifiedShow Answer

The break-even point is where total revenues equal total expenses.

Correct AnswerverifiedShow Answer

Every time different types of retail outlets sell the same lines of merchandise and compete for the same limited amount of consumer dollars available,intertype competition occurs.

Correct AnswerverifiedShow Answer

What factors (other than price)do customers place a value on? How can a retailer use these factors to create a differential advantage?

Correct AnswerverifiedMany customers place a high value on att...View AnswerShow Answer

Retailers who continue to use technology in innovative ways within the supply chain will achieve greater efficiency in their operations.

Correct AnswerverifiedShow Answer

When Gap Stores get an exclusive contract to sell uniforms to your old high school,it is an example of:

Correct AnswerverifiedShow Answer

According to the wheel of retailing theory,_____ currently appear to be in the vulnerability phase of their evolution.

Correct AnswerverifiedShow Answer

Nonprice variables are directed at enlarging the retailer's demand by offering customers benefits beyond simply the lowest price.

Correct AnswerverifiedShow Answer

In a monopolistically competitive market,the retailer will be confronted with a negatively sloping demand curve.

Correct AnswerverifiedShow Answer

The theory of retail competition that states that new retail institutions enter the marketplace as low-price,low-margin operations and eventually begin to offer more services and charge higher prices is the:

Correct AnswerverifiedShow Answer

The growth of nonstore retailing growth can be attributed to:

Correct AnswerverifiedShow Answer

As a warehouse club manager,you have noticed that this format's market share has stabilized.As such,you fear severe profit declines as warehouse clubs are now in the _____ stage of the retail life cycle.

Correct AnswerverifiedShow Answer

Today specialization in merchandise categories has once again become a dominant competitive strategy.

Correct AnswerverifiedShow Answer

Retailers would like to compete in _____ since many retailers in such markets achieve an above-average return on investment due to the low level of competition in the marketplace.

Correct AnswerverifiedShow Answer

To be successful in retailing today,given the slower population growth rate,retailers will grow by:

Correct AnswerverifiedShow Answer

Customers can "self-inflict" this type of competition when a brand name is perceived as unique and highly valued,and a retailer controls its sale.

Correct AnswerverifiedShow Answer

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As retailing continues to change,the inc...
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Many customers place a high value on att...
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