John Diaz immigrated to Tallahassee from Cuba in the 1980s. He set up a coffee shop called Diaz in a small upper- middle-class neighborhood. It rapidly became popular because of the wonderful coffee it brewed. Soon Diaz was selling the finest coffees from around the world, plus coffee-making necessities such as grinders and brewers.
Within ten years, Diaz was operating a lucrative mail-order business in addition to his coffee shop. Upon entering the shop, the first thing the customer sees is a countertop crowded with all of the machinery needed for making a perfect cup of coffee. Marble-topped tables are set in cozy nooks with overstuffed chairs. Bookshelves on one wall hold books about coffee for patrons to read while they sip. The smell is intoxicating to a real coffee lover. Coffee drinkers can take home a pound when they leave. The store carries all types of coffee from $8 per pound Brazilian Cerrado to $300 per pound Kopi Luwak from Sumatra.
- Refer to Diaz. In terms of ownership, Diaz's coffee shop would be classified as a(n):
a. franchise.
b. wholesaler.
c. independent retailer.
d. agency.
e. chain store.
ANSWER: c
- Refer to Diaz. The type of merchandise carried by Diaz is deep but with a narrow assortment. The store would most likely be classified as a:
a. convenience store.
b. mass merchandiser.
c. specialty store.
d. category killer.
e. membership club.
ANSWER: c
- Refer to Diaz. Customers of Diaz's coffee shop can purchase coffee, coffee makers, mugs, chocolate, music CDs, and all sorts of unique gift items. Diaz is practicing:
a. m-commerce.
b. interactive merchandising.
c. lifestyle merchandising.
d. scrambled merchandising.
e. pop-up shopping.
ANSWER: d
- Refer to Diaz. If Diaz wanted to grow his business and granted another owner the rights to use his format and approach to doing business, he would be involved in:
a. trading up.
b. m-commerce.
c. direct marketing.
d. product and trade name franchising.
e. business format franchising.
ANSWER: e
- Refer to Diaz. The smell of fresh coffee, the fact it is made where drinkers can watch the process, and the comfortable chairs all are used to create the store's:
a. atmosphere.
b. cultural impact.
c. target strategy.
d. merchandise mix.
e. promotional strategy.
ANSWER: a