Chapter 14--Nordstrom's

TRUE/FALSE
1. Nordstrom, as a family-owned business, is an independent retailer.
ANS: F

Nordstrom is a chain store with 157 stores in 27 states.

PTS: 1
OBJ: 14-5
KEY: CB&E Model Distribution

TOP: AACSB Reflective Thinking

MSC: Blooms Level I Knowledge

2. Nordstrom has franchises in 27 states.

ANS: F

Nordstrom is a chain store with 157 stores in 27 states.

PTS: 1
OBJ: 14-5
KEY: CB&E Model Distribution

TOP: AACSB Reflective Thinking

MSC: Bloom's Level I Knowledge

3. Nordstrom has a concentrated product assortment, carrying narrow product lines but in

considerable depth.
ANS: F

Nordstrom offers a wide assortment of shopping and specialty goods, including apparel,
cosmetics, and housewares.
PTS: 1
OBJ: 14-5
KEY: CB&E Model Distribution

TOP: AACSB Reflective Thinking

MSC: Bloom's Level I Knowledge

4. Nordstrom typically charges the full suggested retail price on its merchandise, unlike

discounters, factory outlets, and off-price retailers, which use low prices to attract
shoppers.
ANS: T
PTS: 1
KEY: CB&E Model Distribution

OBJ: LO-3
TOP: AACSB Reflective Thinking
MSC: Bloom's Level I Knowledge

5. With more than 200 stores in 28 states, Nordstroms could be argued to have selective

distribution.
ANS: T
PTS: 1
KEY: CB&E Model Distribution
MULTIPLE CHOICE
1. Nordstrom is an example of a
a. department store.
b. specialty store.
c. supermarket.
d. drugstore.

OBJ: 14-2
TOP: AACSB Reflective Thinking
MSC: Blooms Level I Knowledge

e. category killer.
ANS: A

Nordstrom is an example of a department store.

PTS: 1
OBJ: 14-5
KEY: CB&E Model Distribution

TOP: AACSB Reflective Thinking

MSC: Bloom's Level I Knowledge

2. When Nordstrom mails catalogs to its customers, it is using a technique known as

a. telemarketing.
b. spam.
c. direct marketing.
d. indirect marketing.
e. electronic retailing.
ANS: C

Direct marketing, sometimes called direct-response marketing, refers to the techniques used to
get consumers to make a purchase from their home, office, or other non-retail setting. These
techniques include direct mail, catalogs, and mail order.
PTS: 1
OBJ: 14-5
KEY: CB&E Model Distribution

TOP: AACSB Reflective Thinking

MSC: Bloom's Level I Knowledge

3. The main element of Nordstroms in-store presentation is its ________, the overall

impression conveyed by its physical layout, dcor, and surroundings.

organization
atmosphere
attitude
style
design

a.
b.
c.
d.
e.

ANS: B

The main element of a stores presentation is its atmosphere, the overall impression conveyed
by its physical layout, dcor, and surroundings.
PTS: 1
OBJ: 14-6
TOP: AACSB Reflective Thinking
KEY: CB&E Model Marketing Plan | CB&E Model Product
MSC: Bloom's Level I Knowledge
4. The ________ of employees within a Nordstrom store is presumably higher than it is in a

store like Kmart, which has a do-it-yourself, casual atmosphere.

concentration
market-basket analysis
fixture-type
allowance
density

a.
b.
c.
d.
e.

ANS: E

Density is the number of employees per thousand square feet of selling space. Nordstroms
density is much higher than a discounter like Kmarts, denoting readiness to serve the
customer.
PTS: 1

OBJ: 14-6

TOP: AACSB Reflective Thinking

KEY: CB&E Model Marketing Plan | CB&E Model Product

MSC: Bloom's Level I Knowledge

5. When a Nordstrom salesperson suggests that a customer might want to purchase a belt

to go with his new suit, he is employing a common practice among retailers known as
trading up.
adding on.
suggestion selling.
retail mixing.
All of the above

a.
b.
c.
d.
e.

ANS: C

Suggestion selling, a common practice among most retailers, seeks to broaden customers
original purchases with related items.
PTS: 1
OBJ: 14-6
TOP: AACSB Reflective Thinking
KEY: CB&E Model Customer | CB&E Model Marketing Plan MSC: Bloom's Level II Application