Marketing Final Exam

Shopping ans d scrambled merchandising is the

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Unformatted text preview: colate, music CDs, and all sorts of unique gift items. Diaz is practicing: a. b. c. d. e. m-commerce interactive merchandising lifestyle merchandising scrambled merchandising pop-up shopping ANS: D Scrambled merchandising is the tendency to offer a wide variety of nontraditional goods and services under one roof. PTS: 1 REF: 234 Thinking KEY: CB&E Model Distribution OBJ: 15-3 TOP: AACSB Reflective MSC: BLOOMS Application 105. Refer to Diaz. If Diaz wanted to grow his business and granted another owner the rights to use his format and approach to doing business, he would be involved in: a. trading up b. m-commerce c. direct marketing d. product and trade name franchising e. business format franchising ANS: E Business format franchising is a business relationship in which the franchisor (Diaz) “sells” a franchisee the rights to use the franchisor’s format or approach to doing business. PTS: 1 REF: 241 Thinking KEY: CB&E Model Distribution OBJ: 15-5 TOP: AACSB Reflective MSC: BLOOMS Application 106. Refer to Diaz. The smell of fresh coffee, the fact it is made where drinkers can watch the process, and the comfortable chairs all are used to create the store’s: a. atmosphere b. cultural impact c. target strategy d. merchandise mix e. promotional strategy ANS: A The main element of a store’s presentation is its atmosphere––how the store’s physical layout, decor, and surroundings convey an overall impression. PTS: 1 REF: 245 Thinking KEY: CB&E Model Distribution OBJ: 15-6 TOP: AACSB Reflective MSC: BLOOMS Application Walmart Walmart, the world’s largest retailer by revenue, announced that it will get back to its founder’s roots by initiating more price cuts. Critics claimed that the giant was getting away from its original focus because it posted relatively high gross profit margins. CEO Mike Duke assuaged critics by saying Walmart’s $400 billion in sales will become even larger because the price cuts will attract more customers and it will lower its costs of goods sold. 107. Refer to Walmart. In terms of ownership, Walmart would be classified as a(n): a. independent retailer b. chain store c. franchise d. discount store e. department store ANS: B Chain stores are owned and operated as a group by a single organization. While Walmart is a discount store, in terms of ownership, it is a chain store. PTS: 1 REF: 232 Thinking KEY: CB&E Model Distribution OBJ: 15-2 TOP: AACSB Reflective MSC: BLOOMS Application 108. Refer to Walmart. Walmart’s gross margin is the: a. total sales from all of its stores worldwide b. amount of money it makes as a percentage of sales after the cost of goods sold is subtracted c. amount of money it makes as a percentage of sales before taxes d. amount of money it makes as a percentage of sales after all costs are subtracted e. net profit it earns after all expenses and taxes are subtracted ANS: B Gross margin is the money the retailer makes as a percentage of sales after the costs of goods sol...
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