UT Martin

Marketing 310:  Retailing

Instructor:  T. C. Johnston

Retail Management Chapter 16 Practice questions

1.    Why are many U.S. retailers expanding into international markets?

A.    The intense competition in the U.S. market.

B.    The success of many other U.S. retailers in the global market.

C.    The positive monetary exchange rates.

D.    The lower costs of expanding overseas versus here in the U.S.

E.    All of the above.

2.    Which of the following factors are not important in a retailer achieving global success?

A.    Timing of entry.

B.    Understanding the environment.

C.    Core competency of retailer.

D.    All of the above are important.

E.    None of the above are important.

3.    When The Body Shop makes modifications to its products to meet differing local skin and hair types, this is known as

A.    Inventory balancing.

B.    Market standardization.

C.    Customization.

D.    Departmentalization.

E.    Local market differentiation.

4.    Which of the following is not a market entry formula that is discussed in the text?

A.    Going it alone.

B.    Joint venture.

C.    Strategic alliances by market.

D.    Licensing.

E.    Concessions.

5.    In what form of market entry strategy does a company normally receive access to the store name, products or operating methods in return for royalty payments?

A.    Concession.

B.    Franchising.

C.    Licensing.

D.    Image marketing.

E.    Format selling.

 6.    Highly developed markets are characterized by

A.    Entry barriers that have been constructed by governmental regulations.

B.    Demanding consumers which expect a higher level of service, convenience and value.

C.    Low levels of competition among retailers.

D.    Significant oligopolies and monopolies in major retail markets.

E.    A rise in the number of small and unique retailers.

7.    Which of the following is not a market that is considered economically volatile?

A.     Turkey.

B.     Mexico.

C.    Argentina.

D.    All of the above are considered economically volatile.

8.    In which "economically volatile market" will opportunities exist for discount stores and category dominant retailers in major cities such as Instanbul and Ankara?

A.    Argentina.

B.    Italy

C.    Turkey.

D.    Spain.

9.    Which high-risk market has one of the youngest populations in the world with over 70% of its merchants in either San Paulo and Rio de Janeiro?

A.    Mexico.

B.    Chile.

C.  Brazil.

D.  Argentina.

E.    Spain.

10.  In-store kiosks that would enable consumers to select specific music and have it manufactured on a compact disk while they wait would be an example of

A.    Customized store.

B.    The Retail Theater.

C.    Customer-made stores.

D.    Manufacturer-owned stores.

E.    None of the above.