MKT462 : Midterm Revision Exam

[CH1] Retailing includes every sale to the final consumer, covering goods and services bought for personal, family, or household use.

[CH1] Exclusive distribution gives the retailer the highest product image but the lowest brand selection.

[CH1] According to relationship retailing, it is easier to gain new customers than to keep existing customers happy.

[CH5] Scrambled merchandising refers to a retailer increasing the depth of its assortment within its original product line.

[CH5] In the introduction stage of the retail life cycle, a firm typically faces large initial losses due to heavy investments, and long-run success is not assured.

[CH5] Joining cooperative buying and advertising groups and buying refurbished equipment help retailers hold down their initial investment and operating costs.

[CH6] Most U.S. vending machine sales, about 95 percent, come from general merchandise such as clothes and magazines, while beverages and food account for only 5 percent.

[CH6] Native apps are run by a browser, are typically written in HTML5, and can be added to the home screen as a bookmark.

[CH6] Electronic retailing through the Web, including mobile, is the fastest-growing form of direct marketing.

[CH10] A string is an unplanned shopping area made up of stores with similar or compatible product lines, and it may start with an isolated store whose success attracts competitors.

[CH10] A site labelled as the one-hundred percent location for a clothing store will also be the optimum site for a convenience store.

[CH10] Under a graduated lease, rent is lower when the store's performance is weak and higher when performance is good.

[CH13] The computerized checkout is considered the most important operational effect of retail computerization.

[CH13] With a bottom-up space management approach, the retailer starts with its total store space and divides it into categories before working on product layouts.

[CH13] Cross-training means employees learn tasks associated with more than one job, so a cashier can be moved to help in a department that is busy.

[CH1] A Bahraini bottled-water brand wants its product sold in as many groceries, cold stores, and petrol stations as possible, and it does very little advertising. Which distribution type is it using?

[CH1] A retailer links its physical stores, its e-commerce site, and a telephone sales channel so that all its plans and activities work together to maximize efficiency. Which element of the retailing concept is this?

[CH1] A shopper enters a supermarket to buy milk and leaves with chocolates and a magazine she had not planned to buy. Which special characteristic affecting retailers does this illustrate?

[CH1] Which element of the total retail experience is NOT controllable by the retailer?

[CH1] In the six steps of strategic planning, which step comes directly after determining the customer market?

[CH5] A shoe store begins selling handbags, sunglasses, socks, and phone cases, some of which are unrelated to its original business. Which concept does this illustrate?

[CH5] In which stage of the retail life cycle do sales and profits grow rapidly, firms expand geographically, and new companies of the same type enter the market?

[CH5] Which food-oriented retailer is a food-based discounter that focuses on a small selection of items and relies on low-priced private-label brands?

[CH5] Which retailer concentrates on one goods or service line for a given market segment, with a very narrow width and an extensive depth of assortment?

[CH5] Huda buys designer-brand jackets from many different labels at 20-60% below their original prices at a chain that stocks other retailers' cancelled orders and end-of-season items, and it charges extra for alterations. Which retailer is this?

[CH5] In a retailer's strategy mix, width of assortment refers to:

[CH6] A cosmetics representative visits women in their homes, demonstrates the products, and persuades them to buy. This is an example of:

[CH6] A freestanding, interactive electronic computer terminal that displays products and related information is an example of which retailing format?

[CH6] A direct marketer compares printed catalogs, statement inserts, banner ads, and video kiosks, considering their costs, distribution, and lead time. Which step of the direct marketing strategy is this?

[CH6] Shoppers in the UAE are now placing orders with a U.S. retailer through its website. Which emerging trend in direct marketing does this reflect?

[CH6] A 30-minute, program-length TV commercial that demonstrates a home gym and invites viewers to order by phone is called:

[CH10] In Busaiteen, a cluster of shops including a dry cleaner, a stationery store, and a beauty salon grew along a main street without any prior planning, serving one residential area. This location is a:

[CH10] Balanced tenancy in a planned shopping center means that the center:

[CH10] Which of the following is a WEAKNESS of a central business district (CBD) as a retail location?

[CH10] Which of the following is an ADVANTAGE of leasing a store site rather than owning it?

[CH10] A proper pedestrian traffic count for evaluating a site should include:

[CH13] To cut costs and free up employee time, a retailer pays an outside company to run its call center, IT services, and deliveries. This is:

[CH13] A retailer's store burns down and must close for three months. Which insurance pays for the lost profits and ongoing expenses such as rent and salaries?

[CH13] A store manager wants every opening task listed in detail, including who disarms the alarm, who turns on the power, who sets up the computers, and when, so nothing is left to chance. Which tool is the manager using?

[CH13] A donut chain makes sure that every outlet follows the same management systems, procedures, and decision-making rules set at corporate level. Which approach is this?

[CH1] Define exclusive, selective, and intensive distribution, and explain how they differ in supplier support, potential for conflict, product image, and supplier's sales. Give one example of each.

[CH1] A new retailer wants to plan its business properly. Explain, in the correct order, the six steps of strategic planning it should follow.

[CH5] Explain the Wheel of Retailing theory and describe its stages in order. Why does the theory say mature innovators become vulnerable?

[CH5] Using the retail life cycle, explain how a retail institution's sales, profits, and competition change from its introduction until its decline. Illustrate each stage with the example used in the notes.

[CH6] A small retailer is thinking of selling only through catalogs and the Web instead of opening a store. Explain the strategic advantages direct marketing would give it and the strategic limitations it would have to manage.

[CH10] Compare an isolated store with a planned shopping center as retail locations, discussing the advantages and disadvantages of each.

[CH10] List and explain the five types of leases a retailer may sign, giving an example where possible.

[CH13] Compare prototype stores with rationalized retailing programs. Include the benefits of prototype stores and the risks of relying too strictly on them.

[CH10] Identify the type of location each offer represents. Compare their advantages and disadvantages for Bait Al Ezz and recommend one.

[CH10] Name the two lease types the mall landlord is offering. Which one would protect Bait Al Ezz better if sales at the new branch turn out weak? Explain.

[CH13] Recommend personnel utilization tactics to solve Bait Al Ezz's staffing problems. Then identify the insurance that covers the slip incident and two programs that would reduce such claims in future.

[CH5] Identify the concept that describes the products Hamad added to Warraq House. Explain why retailers adopt it and the disadvantages it brings, linking each point to the case.

[CH6] Using the outcome measures of a direct marketing strategy, calculate the overall response rate and the average purchase amount, and comment on sales by product category and the value of the list broker. Which step of the strategy does the brochure's content represent?

[CH1] What approach to customers is Hamad following in the last part of the case? Explain its main elements and how Hamad's actions apply them.