Retailing Management 5Th Canadian Edition By Levy – Test Bank

Retailing Management 5Th Canadian Edition By Levy – Test Bank

Chapter 04

Retail Market Strategy

Multiple Choice Questions

1. A SWOT analysis is often conducted during which stage of the strategic retail planning process?
A. Definition of business mission
B. Situational audit
C. Evaluating strategic alternatives
D. Establishing objectives
E. Retail segmentation process

Blooms: Remember
Difficulty: Easy
Learning Objective: 04-04 Explore the steps retailers go through to develop a strategy.
Topic: 04-28 Step 2: conduct a situation audit

2. Fastlane (Sports shoe company) has decided to expand and is experimenting with various growth strategies. It first decided to purchase some Burger King (fast food franchises) and Mobay (Jamaican restaurant) stores. This move was considered a failure and now Fastlane has decided to open more Fastlane stores and to keep them open longer than their competitors. Fastlane has:
A. Abandoned a retail format development strategy and adopted a diversification strategy
B. Abandoned a diversification strategy and adopted a market penetration strategy
C. Abandoned a market penetration strategy and adopted a retail format development strategy
D. Abandoned a diversification strategy and adopted a market expansion strategy
E. Abandoned a market expansion strategy and adopted a market penetration strategy

Blooms: Understand
Difficulty: Medium
Learning Objective: 04-03 Identify different strategic opportunities retailers can pursue.
Topic: 04-20 Market penetration

3. A retail strategy is a statement that will identify which of the following?
A. output measures
B. price points
C. the advertising campaign
D. the retail market
E. the target market

A retail strategy identifies the target market, but also the format the retailer plans to use to satisfy the target market’s needs and the basis upon which the retailer plans to build a sustainable competitive advantage.

Blooms: Remember
Difficulty: Easy
Learning Objective: 04-01 Review the basic principles of retail strategy.
Topic: 04-03 Target Market and the Retail Mix

4. Which of the following provides the direction that the retailer plans to take to deal effectively with environmental factors?
A. marketing objective
B. merchandise budget plan
C. mission statement
D. organizational structure
E. retail strategy

Blooms: Remember
Difficulty: Medium
Learning Objective: 04-01 Review the basic principles of retail strategy.
Topic: 04-02 Definition of retail market strategy

5. You are about to loan a friend $10,000 to start a candy store in a central business district. Where can you find information about how he plans to build a sustainable advantage?
A. In the marketing objectives
B. In the organizational chart
C. In the organizational mission statement
D. In the retail market strategy
E. In the situation audit

Blooms: Remember
Difficulty: Medium
Learning Objective: 04-01 Review the basic principles of retail strategy.
Topic: 04-02 Definition of retail market strategy

6. Zany Brainy appeals to the over-30-years old parents who have children under the age of 10 and who have annual incomes of more than $50,000. These parents are the store’s:
A. marketing mix
B. marketing objective
C. retail format
D. retail mix
E. target market

Blooms: Remember
Difficulty: Easy
Learning Objective: 04-01 Review the basic principles of retail strategy.
Topic: 04-03 Target Market and the Retail Mix