MKT 461 Exam 1 Questions with Verified Solutions Latest Version 2025
North American Industry Classification System - Answers US and Mexico classification scheme to collect
data on business activity in each country; 6 digit code - first 2 business sector, last 4 subsectors
variety - Answers number of merchandise categories a retailer offers
assortment - Answers number of different items offered in a merchandise category
breadth of merchandise - Answers variety
depth of merchandise - Answers assortment
stock keeping unit - Answers each different item of merchandise
conventional supermarket - Answers large, self-service retail food store offering groceries, meat,
produce, as well as nonfood items such as health and beauty aids and general merchandise
limited assortment supermarkets (extreme value food retailers) - Answers only stock about 1500 SKUs
(Aldi)
power perimeter - Answers fresh merchandise categories are located in the areas around the outer
walls of a supermarket and includes the dairy, bakery, meat, florist, produce, deli and coffee bar
fair trade - Answers practice of purchasing from factories that pay workers a living wage, considerably
more than the prevailing minimum wage, and offer other benefits such as onsite medical treatment
locavore movement - Answers reducing the carbon footprint caused by the transportation of food
throughout the world
supercenters - Answers large stores (200,000 square feet) that combine a super market with a full time
discount store (Walmart, Meijer, Super Target)
hypermarkets - Answers large combination food and general merchandise stores (Carrefour), stock
fewer SKUs than supercenters
big box stores - Answers large, limited service
warehouse clubs - Answers retailers that offer limited and irregular assortment of food and general
merchandise with little service at low prices for ultimate consumers and small businesses (Sam's Club,
Costco)
convenience stores - Answers limited variety and assortment of merchandise at a convenient location in
3000-5000 sq feet with speedy checkout
department stores - Answers retailers that carry a broad variety and deep assortment, offer customer
services, and organize their stores into distinct departments for displaying merchandise
, soft goods - Answers nondurable or consumable goods - cosmetics, clothing, and bedding
hard goods - Answers durable goods - appliances, furniture, electronics
full discount line stores - Answers retailers that offer a broad variety of merchandise, limited service,
and low prices (Target, Kmart, Walmart, Staples, Lowe's)
category specialists - Answers big box stores that offer a narrow but deep assortment of merchandise
category killers - Answers by offering a complete assortment in a category, category specialists can kill a
category of merchandise for other retailers
specialty stores - Answers concentrate on a limited number of complementary merchandise categories
and provide a high level of service
thrift stores - Answers merchandise is donated and proceeds go to a charity
consignment shop - Answers store that accepts used merchandise from people and pays them after it is
sold
drugstores - Answers specialty stores that concentrate on health and beauty care
extreme value retailers (dollar stores) - Answers small discount stores that offer a broad variety but
shallow assortment of household goods, health and beauty care, and groceries
off price retailers - Answers offer an inconsistent assortment of brand name merchandise at a significant
discount off the manufacturers' suggested retail price (MSRP) - TJ Maxx
closeouts - Answers end of season merchandise that will not be used in following seasons
irregulars - Answers merchandise with minor mistakes in construction
flash sales - Answers members receive an email that announces the deals available each day
outlet stores - Answers off price retailers owned by manufacturers or retailers
Wholesale sponsored voluntary cooperative group - Answers organization operated by a wholesaler
offering a merchandising program to small, independent retailers on a voluntary basis
retail chain - Answers company that operates multiple retail units under common ownership and usually
has centralized decision making for defining and implementing its strategy
franchising - Answers contractual agreement in which the franchisor (company) sells the rights to use its
business trademark, service mark, or trade name to the franchisee for a one time franchise fee and an
ongoing royalty fee
Retail channel - Answers the way a retailer sells and delivers merchandise and services to its customers
North American Industry Classification System - Answers US and Mexico classification scheme to collect
data on business activity in each country; 6 digit code - first 2 business sector, last 4 subsectors
variety - Answers number of merchandise categories a retailer offers
assortment - Answers number of different items offered in a merchandise category
breadth of merchandise - Answers variety
depth of merchandise - Answers assortment
stock keeping unit - Answers each different item of merchandise
conventional supermarket - Answers large, self-service retail food store offering groceries, meat,
produce, as well as nonfood items such as health and beauty aids and general merchandise
limited assortment supermarkets (extreme value food retailers) - Answers only stock about 1500 SKUs
(Aldi)
power perimeter - Answers fresh merchandise categories are located in the areas around the outer
walls of a supermarket and includes the dairy, bakery, meat, florist, produce, deli and coffee bar
fair trade - Answers practice of purchasing from factories that pay workers a living wage, considerably
more than the prevailing minimum wage, and offer other benefits such as onsite medical treatment
locavore movement - Answers reducing the carbon footprint caused by the transportation of food
throughout the world
supercenters - Answers large stores (200,000 square feet) that combine a super market with a full time
discount store (Walmart, Meijer, Super Target)
hypermarkets - Answers large combination food and general merchandise stores (Carrefour), stock
fewer SKUs than supercenters
big box stores - Answers large, limited service
warehouse clubs - Answers retailers that offer limited and irregular assortment of food and general
merchandise with little service at low prices for ultimate consumers and small businesses (Sam's Club,
Costco)
convenience stores - Answers limited variety and assortment of merchandise at a convenient location in
3000-5000 sq feet with speedy checkout
department stores - Answers retailers that carry a broad variety and deep assortment, offer customer
services, and organize their stores into distinct departments for displaying merchandise
, soft goods - Answers nondurable or consumable goods - cosmetics, clothing, and bedding
hard goods - Answers durable goods - appliances, furniture, electronics
full discount line stores - Answers retailers that offer a broad variety of merchandise, limited service,
and low prices (Target, Kmart, Walmart, Staples, Lowe's)
category specialists - Answers big box stores that offer a narrow but deep assortment of merchandise
category killers - Answers by offering a complete assortment in a category, category specialists can kill a
category of merchandise for other retailers
specialty stores - Answers concentrate on a limited number of complementary merchandise categories
and provide a high level of service
thrift stores - Answers merchandise is donated and proceeds go to a charity
consignment shop - Answers store that accepts used merchandise from people and pays them after it is
sold
drugstores - Answers specialty stores that concentrate on health and beauty care
extreme value retailers (dollar stores) - Answers small discount stores that offer a broad variety but
shallow assortment of household goods, health and beauty care, and groceries
off price retailers - Answers offer an inconsistent assortment of brand name merchandise at a significant
discount off the manufacturers' suggested retail price (MSRP) - TJ Maxx
closeouts - Answers end of season merchandise that will not be used in following seasons
irregulars - Answers merchandise with minor mistakes in construction
flash sales - Answers members receive an email that announces the deals available each day
outlet stores - Answers off price retailers owned by manufacturers or retailers
Wholesale sponsored voluntary cooperative group - Answers organization operated by a wholesaler
offering a merchandising program to small, independent retailers on a voluntary basis
retail chain - Answers company that operates multiple retail units under common ownership and usually
has centralized decision making for defining and implementing its strategy
franchising - Answers contractual agreement in which the franchisor (company) sells the rights to use its
business trademark, service mark, or trade name to the franchisee for a one time franchise fee and an
ongoing royalty fee
Retail channel - Answers the way a retailer sells and delivers merchandise and services to its customers
