Question

A multiple line specialty merchandiser retailer is MOST LIKELY to carry product lines that are considered:

	narrow width and extended depth
	broad width and shallow depth
	broad width and extended depth
	narrow width and shallow depth

When determining where to geographically locate a physical store, a retailer must conduct analysis that considers the tradeoff between:

	The cost of filling the store with inventory versus the attitude of competitive store owners.
	The cost of acquiring the retail site versus the profit potential of the site.
	The location of employees’ residence versus their travel time to the store.
	The time it takes to build the store versus the cost of promoting the new location to customers.

Retailers targeting a ______ market are MOST LIKELY to follow a _____ pricing strategy.

	mass, full price
	specialty, discount
	exclusive, full price
	directed, discount

Amazon.com, the largest online retailer, is best classified under which of the following ownership structure categories:

	Contractually Licensed and Individually Operated
	Corporate Chain
	Corporate Structure
	Individually Owned and Operated

Answer 1

Solution:

• The narrow width and extended depth.
  Specialty stores have limited product lines with considerable depth. They do not venture into other categories and hence they of in-depth services in their category of product.
  
• The cost of acquiring the retail site versus the profit potential of the site.
  the most important analysis that needs to be done is to analyze the potential sources of income to improve the ROI of the store. Hence, analyzing costs and profit potential is expected.
  
• Exclusive, Full price
  In exclusive markets the retailers would focus on maximizing the profit margins because the exclusive markets are very niche markets and traffic would be low but highly converting and hence with whatever traffic of consumers we have the aim is to maximize the profits, hence full pricing strategy is used.
  
• Corporate Structure
  Amazon is a publically listed company and implements a corporate structure for its organization.