QUESTION 1

1. Which of the following opportunities is most likely to exploit a retailer's greatest competitive advantage?
2. Market penetration
3. Market expansion
4. Diversification
5. Retail format expansion
6. Vertical integration

1 points

QUESTION 2

1. Retailers typically can control the environmental factors that may impact them
2. True
3. False

1 points

QUESTION 3

1. Which of the following is the most significant barrier to entry for Builder's Paradise in the Cape Town market, the home of the corporate offices of Build It Depot?
2. Scale economies of Build It Depot
3. Environmental factors
4. Great locations of Build It Depot
5. High Profit margins of Build It Depot
6. Customer loyalty of Build It Depot

1 points

QUESTION 4

1. A retailer's goals and objectives should give precision and direction to the retailer's mission statement.
2. True
3. False

1 points

QUESTION 5

1. A retailer expanding their hours to open an additional hour each evening is using the market expansion growth strategy.
2. True
3. False

1 points

QUESTION 6

1. Cesu supermarket has U-Scan self-checkout Express machines for self-checkout in more than 200 of its stores. Self-checkout is efficient and growing in popularity among customers. The U-Scan Express machine is a touch-screen terminal with scanner and a soothing female voice that guides customers through checkout. One employee can use a computer to monitor the activities at half-dozen self-checkout machines. This is an example of how the _____ environment affects market attractiveness.
2. Social
3. Technological
4. Economic
5. Regulatory
6. Cultural

1 points

QUESTION 7

1. Which of the following is a good basis for a retailer to use in seeking to differentiate itself?
2. Physical differentiation of the product
3. The selling process
4. After-purchase satisfaction
5. Location
6. All of the above are good forms of differentiation for a retailer to use.

1 points

QUESTION 8

1. The situation audit for the retailer, Jere and daughters might include an assessment of
2. The location of other retailers that sell value-priced women's fashion
3. The type of merchandise carried by the competition
4. How changes in zoning and licensing laws will affect its operation
5. How a new Kool-Mart in town could affect its operation
6. All of the above

1 points

QUESTION 9

1. A retailer must remember that it cannot control every one of the environmental elements that may impact the firm.
2. True
3. False

1 points

QUESTION 10

1. Strategies indicate how the retailer will attempt to accomplish its goals with the resources available.
2. True
3. False

1 points

QUESTION 11

1. Which of the following is the most critical aspect of a retailer's situation assessment?
2. An emphasis on short-term profit
3. An understanding of demographic trends
4. An analysis of the entire external environment
5. A close examination of the competition
6. A determination of the retailer's unique capabilities

1 points

QUESTION 12

1. Why is it especially important to maintain good relationships with the Clinique cosmetic vendor when there are only a few vendors controlling the cosmetics sold in that market?
2. Cosmetic departments will receive better samples.
3. Cosmetics personnel will receive better training.
4. Department stores are better able to dictate prices.
5. Buyers can purchase more.
6. Vendors dictate terms of purchase including prices and delivery dates

1 points

QUESTION 13

1. The position description is a broad depiction of a retailer's objective and the scope of activities it plans to undertake.
2. True
3. False

1 points

QUESTION 14

1. If a retail firm is attempting to determine the effects of a new competitor entering the market and its potential negative effects on the firm, it is assessing its:
2. strengths
3. weaknesses
4. opportunities
5. threats
6. None of the above are correct.

1 points

QUESTION 15

1. Cebisa had trouble locating the top quality mozzarella that his customers wanted in their marinated tomato/mozzarella salads. When he could find no vendor to supply the cheese necessary for the salads, he purchased a dairy in southern Natal to produce the mozzarella cheese. Cecil engaged in:
2. Horizontal integration
3. Market expansion
4. Vertical integration
5. Market penetration
6. Co-operative buying

1 points

QUESTION 16

1. When a retailer is attempting to determine its major advantage(s) over competitors it is analyzing its:
2. strengths
3. weaknesses
4. opportunities
5. threats
6. None of the above are correct.

1 points

QUESTION 17

1. ____ is determined by whether the total shopping experience has met or exceeded the customer's expectation.
2. Customer service
3. Customer-orientation rating
4. Transaction performance
5. Customer satisfaction
6. Customer post-transaction analysis

1 points

QUESTION 18

1. A retail market is a group of consumers with similar needs that a group of retailers can service using a similar retail format to satisfy them.
2. True
3. False

1 points

QUESTION 19

1. If a retailer is attempting to determine which of the closely related areas of business are underdeveloped in its market, it is assessing its:
2. strengths
3. weaknesses
4. opportunities
5. threats
6. None of the above are correct.

1 points

QUESTION 20

1. A retailer only needs to consider its strengths and environmental opportunities when formulating a strategic plan.
2. True
3. False

1 points

QUESTION 21

1. If a retail firm is attempting to determine the effects of a new competitor entering the market and its potential negative effects on the firm, it is assessing its:
2. strengths
3. weaknesses
4. opportunities
5. threats
6. None of the above are correct.

1 points

QUESTION 22

1. The analysis that provides management with a critical view of the organization's position relative to its internal and external environment is known as ____.
2. SWOT analysis
3. strategic window analysis
4. leverage analysis
5. retail audit
6. opportunities awareness

1 points

QUESTION 23

1. One of the least effective ways for a retailer to differentiate itself from the competition is to always seek to have the lowest prices in the trading area
2. True
3. False

1 points

QUESTION 24

1. Which of the following does NOT indicate conditions that lead to intense rivalry that adversely affect a retailer who wants to enter the market?
2. A large number of retailers of difference sizes
3. High growth
4. High fixed costs
5. A lack of perceived differences between competing retailers

1 points

QUESTION 25

1. ____ is the dividing of a heterogeneous consumer population into smaller, more homogeneous groups based on their characteristics.
2. Target marketing
3. Customer satisfaction
4. Market segmentation
5. Customer services
6. Operations management

1 points

QUESTION 26

1. The objectives a retailer establishes after evaluating its strategic investment opportunities should:
2. List the performance sought
3. Include a time frame in which the goal is to be achieved
4. Include the level of investment needed for the goal to be achieved
5. Include a numerical index against which progress can be measured
6. Have all of the above

1 points

QUESTION 27

1. Lusanda wanted to open an office supply category specialist store, but thought better of the idea and did not because of the size of the local Office Supplies Depot and All Things Office. The condition of the retail market that discouraged her was the _____________ of the competitors.
2. Customer loyalty
3. Environmental factor
4. Profit margins
5. Poor locations
6. Scale economy

1 points

QUESTION 28

1. The intensity of competitive rivalry in a retail market can be determined by:
2. Counting the number of competitors
3. Noting the relative size of the competitors
4. Examining the market growth rate
5. Learning if competitors have high fixed costs
6. Doing any or all of the above

1 points

QUESTION 29

1. Which of the following describe what aspects of environmental factors retailers consider to evaluate market attractiveness?
2. A retailer considers what new developments or changes might occur in technological, economic, regulatory, and social factors.
3. A retailer assesses the likelihood that environmental changes occur.
4. A retailer evaluates how environmental changes affect their market, firm, and its competitors
5. All of the above.

1 points

QUESTION 30

1. Which of the following opportunities is LEAST likely to enhance a retailer's competitive advantage?
2. Market penetration
3. Vertical integration
4. Market expansion
5. Diversification
6. Retail format expansion

1 points

QUESTION 31

1. Jose runs a gallery which specializes in neon art with an emphasis on vacation icons like flamingos, dolphins, and palm trees. Since demand was high, and supplies were low, he decided to buy an old warehouse, and then hire craftspeople to work there in order to produce the art. He would provide them with all of the supplies they needed, and he would be their only customer. Jose engaged in:
2. Horizontal integration
3. Market expansion
4. Co-operative buying
5. Market penetration
6. Vertical integration

1 points

QUESTION 32

1. Which of the following is NOT considered a barrier to entry in a market for a retailer?
2. Market dominated by a few large competitors with scale economies
3. Market dominated by a well-established retailer that has developed a loyal group of customers
4. Strong competitive rivalry
5. Market with no good locations
6. All of the above are considered barriers to entry in a new market.

1 points

QUESTION 33

1. In the late 1990's, pure e-tailers flooded the Internet causing traditional bricks and mortar stores to integrate the Internet format as part of their selling channels. Which environmental factor influenced this investment?
2. Media
3. Economic
4. Environmental
5. Social
6. Technological

1 points

QUESTION 34

1. Both "retail mix" and "target market" are terms that refer to the combination of services offered to customers.
2. True
3. False

1 points