1. What can department stores do to differentiate their merchandise offering and strengthen their image?
A. Increase their pricing.
B. Seek exclusive arrangements with nationally recognized brands.
C. Network with a broader variety of vendors.
D. Merge with faltering retailers to gain their market share.
2. Whereas conventional supermarkets carry about 30,000 SKUs, limited assortment supermarkets or extreme value food retailers only stock 2,000 SKUs. Which of the following is not the advantage of stocking lesser SKUs?
A. Less backup stocks
B. Less inventory investments
C. Less inventory holding costs
D. Lower transportation costs
3. The multiattribute model suggests that a retailer can encourage customers to shop at its store more frequently by
B. postpurchase evaluation.
C. tightening the assortment.
D. getting its store into the customer's consideration set.
4. Why is it advantageous for retailers to be vertically integrated?
A. Retailers have the greatest control over its supply chain.
B. Customers prefer retailers who are vertically integrated.
C. Retailers have realized that to stay competitive, they must become vertically integrated.
D. Retailers can expand their services easily to the Internet because they can direct orders to the manufacturer.
5. Which of the following describes an advantage that independent, single-store establishments have over other forms of ownership?
A. Very low set-up costs
B. React quickly to market changes
C. Economies of scale
D. Bureaucratic operation
6. Office Depot offers customers a huge selection of