1. Odd-number pricing is limited to low-priced items.

a) True

b) False

2. Joey and Allison (husband and wife) decided that they wanted to open their own retail stores. This was something that Allison had wanted to do since her father lost his business when she was young. Joey believed that Allison would be great at running a business, so he planned to start his own business to bring in additional money.

Allison first thought of opening a retail-store franchise, but felt it would be too restrictive. She finally decided to open something similar to her father's original smaller store, but to do it in a big way. She called it D-Tree for Less, and her slogan was "Dupree Back in Action." Her father's name was Dupree. The store would sell home furnishings, appliances, clothing for all, and other items in different parts of the store. Given the size of the store, Allison felt that she would need at least 30 employees just to run everything smoothly.

Once Allison's store was up and running, Joey started his own large specialty store selling only fishing equipment. Joey kept his prices significantly lower than the competition, since he was going after volume business. Joey opened his store in a major shopping center in the hopes that it would bring in more foot traffic.

Allison's store got so big over time that she had to build a separate warehouse to hold additional inventory and large appliances. Allison realized that this would require many new hires and a lot of training. She did not have time for it, so she delegated this responsibility to a manager. Allison knew that her business was going to thrive; she just wished her father were around to see it.

Refer to D-Tree for Less. As Allison's business builds and utilizes warehousing, she will complete all of the following activities except

a) Displaying items for sale.

b) Dispatching goods.

c) Holding goods.

d) Identifying goods.

e) Dispatching shipments.

3. Department stores are distinctly service-oriented. Along with the goods they sell, they provide

a) Lower markups.

b) Quality discounts.

c) Personal assistance.

d) Warehouse merchandising.

e) Very low prices.

4. New Seasons Market, a locally owned and operated one-stop grocery store based in Portland, Oregon is committed to providing local products for its particular customer base. New Seasons strives to deepen customer trust and loyalty by keeping close and regular connection with customers in a quest to better understand the customers’ needs and desires. New Seasons Market is creating a model for form utility.

a) Customer relationship management.

b) Relationship marketing..

c) Customer research management.

d) Market segmentation.

5. Rufus opened a fast-food restaurant on the corner of First and Main Streets in a small town. He named the restaurant The Hamburger Place. He offered one type of hamburger (a juicy homemade hamburger), for which he designed a marketing mix for the entire hamburger-eater market in town. What approach did he use in choosing a target market?

a) Market segmentation

b) Target market

c) Differentiated

d) Undifferentiated

e) Marketing-mix