Walmart, the world's largest retailer by revenue, announced that it will get back to its founder's roots by initiating more price cuts. Critics claimed that the giant was getting away from its original focus because it posted relatively high gross profit margins. CEO Mike Duke assuaged critics by saying Walmart's $400 billion in sales will become even larger because the price cuts will attract more customers and it will lower its costs of goods sold.
- Refer to Walmart. In terms of ownership, Walmart would be classified as a(n):
a. independent retailer.
b. chain store.
c. franchise.
d. discount store.
e. department store.
ANSWER: b
- Refer to Walmart. Walmart's gross margin is the:
a. total sales from all of its stores worldwide.
b. amount of money it makes as a percentage of sales after the cost of goods sold is subtracted.
c. amount of money it makes as a percentage of sales before taxes.
d. amount of money it makes as a percentage of sales after all costs are subtracted.
e. net profit it earns after all expenses and taxes are subtracted.
ANSWER: b
- Refer to Walmart. Which type of pricing strategy describes Walmart's commitment to offer consistently lower prices?
a. High-low pricing
b. Everyday low pricing
c. extreme value pricing
d. Prestige pricing
e. Marginal pricing
ANSWER: b
- Refer to Walmart. Many Walmart stores have a full line of groceries and general merchandise with a wide range of services, such as a pharmacy, portrait studio, optical shop, and bank. Walmart is an example of which type of discount store?
a. Hypermarket
b. Supermarket
c. Extreme-value retailer
d. Supercenter
e. Category killer
ANSWER: d
- Refer to Walmart. Most Walmart stores are not located in shopping centers but rather are buildings all by themselves. This type of location is referred to as a:
a. primary outlet.
b. freestanding store.
c. pop-up store.
d. single-unit retailer.
e. strip store.
ANSWER: b