Deck 15: A:retailing, Direct Marketing, and Wholesaling

Question 1

Discuss some of the functions that full-service wholesalers provide. How do these differ from those that limited-service wholesalers provide?

Answer 1

Answer not provided.

Question 2

Compare the services wholesalers provide for producers with the services they provide to retailers.

Answer 2

Answer not provided.

Question 3

What are the three types of nonstore retailing, and what are some examples of each?

Answer 3

Answer not provided.

Question 4

What role does wholesaling play in the marketing channel? Is this role necessary?

Question 5

What situations would benefit from using a selling agent?

Question 6

Compare and contrast department stores and discount stores.

Question 7

What should be considered when preparing a "party plan"?

Question 8

Under what conditions would a selling agent most likely be used?

Question 9

In what ways do retailers add value to products?

Question 10

What are the two categories of retail stores based on breadth of products offered, and what types of stores are in each category?

Question 11

Discuss the advantages and disadvantages of catalog marketing.

Question 12

What type of situation would provoke a conflict between department stores and a manufacturer's outlet mall?

Question 13

Why would any specific retail store, such as PetSmart, be considered a category killer?

Question 14

What is a superstore? What types of customers does it attract?

Question 15

Identify and describe three kinds of specialty stores.

Question 16

What wholesaling activities do selling agents and brokers perform?

Question 17

What are the primary advantages and disadvantages of a franchise arrangement for a franchisee?

Question 18

What is a store's image, and how does it affect retailing strategy decisions?

Question 19

Discuss the role of merchant wholesalers. When is a producer most likely to use them?

Question 20

Why is a store's location one of the most important strategic retailing decisions?

Question 21

Compared with other types of retailers, department stores compete mainly on the basis of

A)customer services.
B)low prices.
C)a very deep assortment of a few specific products.
D)high sales volume.
E)catalog sales.

Question 22

If a store has areas for men's apparel, women's apparel, housewares, cosmetics, and jewelry and competes mostly on the basis of service, it is a(n)

A)off-price retailer.
B)department store.
C)discount store.
D)superstore.
E)supermarket.

Question 23

Retailing is best characterized as

A)large organizations that carry wide and deep product mixes.
B)transactions in which the buyer intends to consume the product through personal, family, or household use.
C)arrangements whereby a supplier grants a dealer the right to sell its products.
D)transactions in which the purchaser intends to use the product for resale or for business operations.
E)exchanges that take place only in a store or service establishment.

Question 24

Which of the following was developed in 1927 to supply milk, eggs, and other products for customers replenishing their ice boxes?

A)Supermarkets
B)Convenience stores
C)Discount stores
D)Department stores
E)Specialty stores

Question 25

As discount stores improve their services and atmosphere as well as raise their prices, the distinction between discount stores and ____ is becoming blurred.

A)superstores
B)supermarkets
C)specialty stores
D)department stores
E)category killers

Question 26

Wal-Mart, Macy's, Nordstrom's, and Toys "R" Us are examples of

A)manufacturers.
B)merchant wholesalers.
C)end-users.
D)agents.
E)retailers.

Question 27

A small self-service store that is open long hours and carries a narrow product assortment in convenient locations is best described as a

A)discount store.
B)department store.
C)convenience store.
D)supermarket.
E)category killer.

Question 28

Any organization that purchases products for the purpose of reselling them to ultimate consumers is a(n)

A)wholesaler.
B)shopping center.
C)retailer.
D)intermediary.
E)producer.

Question 29

Nordstrom's, Macy's, and JC Penney's are all considered

A)department stores.
B)discount stores.
C)off-price retailers.
D)specialty retailers.
E)category killers.

Question 30

Who provides the environment in which exchanges with ultimate consumers occur?

A)Retailers
B)Wholesalers
C)Catalogers
D)Telemarketers
E)Producers

Question 31

Supermarkets, discount stores, and hypermarkets can all be classified as

A)superstores.
B)general merchandise retailers.
C)department stores.
D)specialty retailers.
E)off-price retailers.

Question 32

Which type of retailer generally accepts lower margins than traditional retailers in exchange for higher sales volume?

A)Department stores
B)Traditional specialty retailers
C)Warehouse showrooms
D)Direct marketers
E)Discount stores

Question 33

A general merchandise retailer offers

A)a single product line that is stocked in depth.
B)few product lines with deep assortments of these lines.
C)few choices of a large variety of product lines.
D)products through the Internet and catalogs only.
E)a variety of product lines that are stocked in depth.

Question 34

Self-service, general merchandise stores such as Kmart are known as

A)discount stores.
B)warehouse showrooms.
C)catalog showrooms.
D)superstores.
E)specialty retailers.

Question 35

Jack Ingalls gets a shopping list from his wife. On the list are a potted plant, fresh salmon, motor oil, bread, milk, and a birthday cake. To make just one stop to save time, Jack should go to a(n)

A)convenience store.
B)off-price retailer.
C)specialty store.
D)franchiser.
E)supermarket.

Question 36

Walmart and Target are both examples of

A)department stores.
B)category killers.
C)discount stores.
D)supermarkets.
E)warehouse clubs.

Question 37

Large, self-service stores that carry a complete line of food products and some nonfood products are called

A)discount stores.
B)superstores.
C)supermarkets.
D)department stores.
E)warehouse clubs.

Question 38

A retailer is an organization that purchases products for the purpose of reselling them to

A)other retail organizations.
B)the government.
C)ultimate consumers.
D)wholesalers.
E)nonprofit organizations.

Question 39

Ollies' is a regional self-service retail store that sells name-brand electronics, tools, housewares, and sporting goods at low prices. Ollies' is an example of a

A)department store.
B)discount store.
C)warehouse showroom.
D)specialty store.
E)superstore.

Question 40

Kroger, Safeway, and Publix are all considered

A)superstores.
B)groceries.
C)department stores.
D)supermarkets.
E)food stores.

Question 41

Retail facilities located in big, low-cost buildings with large on-premise inventories and minimal services are called

A)catalog showrooms.
B)category killers.
C)warehouse showrooms.
D)warehouse clubs.
E)display outlets.

Question 42

Matt's girlfriend tells him she wants a cashmere sweater for Christmas. Matt decides to go to a store that provides the best possible selection of sweaters. His best choice would be to shop at a ____ store.

A)department
B)catalog
C)discount
D)traditional specialty
E)convenience

Question 43

What type of retailers are the primary competitors for specialty retailers?

A)Discount stores
B)Category killers
C)Catalog marketers
D)Department stores
E)Superstores

Question 44

Off-price retailers feature

A)deep discounts, few customer services, and central checkouts.
B)sales expertise, wide selections, and low prices.
C)overstocks, designer brands, and moderate prices.
D)a narrow product range and enormous product availability.
E)cash only sales and few customer services.

Question 45

Off-price retailers and category killers are both

A)specialty retailers.
B)discount stores.
C)showrooms.
D)general merchandisers.
E)department stores.

Question 46

When off-price retailers obtain too much in-season, high-quality merchandise, tension between them and ____ builds.

A)discount stores
B)category killers
C)specialty retailers
D)warehouse clubs
E)department stores

Question 47

Levitz Furniture locates in huge, low-cost buildings, maintains large, on-premises inventories, and offers minimum service. Levitz is a

A)warehouse showroom.
B)catalog showroom.
C)superstore.
D)warehouse club.
E)department store.

Question 48

Retailers that sell only to members and feature discount retailing combined with cash-and-carry wholesaling are called

A)hypermarkets.
B)retail groups.
C)warehouse showrooms.
D)discount stores.
E)warehouse clubs.

Question 49

Stores such as T.J. Maxx, Burlington Coat Factory, and Marshalls buy manufacturers' seconds, overruns, returns, and off-season production runs at below wholesale prices. These firms resell this merchandise to consumers at deep discounts, and are called

A)category killers.
B)off-price retailers.
C)specialty retailers.
D)hypermarkets.
E)discount retailers.

Question 50

After shopping in the same store for nearly two hours, Chelsea goes to Burger King for a Whopper, while Cynthia goes to the optical shop to see if her contacts are ready. They engage in these activities without leaving the store in which they have been shopping. They are most likely in a

A)superstore.
B)hypermarket.
C)department store.
D)general merchandise retailer.
E)discount store.

Question 51

Which type of retail outlet can have up to 200,000 square feet?

A)Superstores
B)Supermarkets
C)Discount stores
D)Department stores
E)Category killers

Question 52

Laura goes to Walmart and buys some clothing, a DVD, and all the groceries she needs for her family. What type of retailer is this particular Wal-Mart?

A)Supermarket
B)Superstore
C)Hypermarket
D)Discount store
E)Department store

Question 53

Which of the following is a large-scale, members-only, retailer that combines cash-and-carry wholesaling with discount retailing?

A)Warehouse showroom
B)Warehouse club
C)Catalog showroom
D)Category killer
E)Hypermarket

Question 54

A store that offers a wide variety of shoes for men, women, and children would most likely be considered a(n)

A)department store.
B)specialty retailer.
C)category killer.
D)off-price retailer.
E)warehouse showroom.

Question 55

A large retailer selling food and most routinely purchased consumer products is a

A)hypermarket.
B)supermarket.
C)discount store.
D)Warehouse club
E)Superstore

Question 56

Which of the following is a common feature of a warehouse club?

A)Concrete floors and wide aisles
B)Wide range of products
C)Good customer service
D)Moderate prices
E)Pleasant atmosphere

Question 57

Specialty stores offer ____ than department stores.

A)greater varieties of product lines and higher prices
B)lower prices and higher quality
C)more product depth and less customer service
D)more sales expertise and better selections
E)more frequent price discounts and less selection

Question 58

What is the primary distinction between superstores and hypermarkets?

A)Superstores offer a wider variety of products than hypermarkets.
B)Superstores offer low prices while hypermarkets have moderate to high prices.
C)Hypermarkets have fewer departments but deeper product lines than superstores.
D)Hypermarkets are larger and have more types of products than superstores.
E)These two types of retailers carry very different types of products.

Question 59

Sam's and Costco are examples of

A)discounters.
B)warehouse clubs.
C)warehouse showrooms.
D)discount clubs.
E)wholesalers.

Question 60

A narrow product mix with a deep product line would most likely be carried by

A)mass merchandisers.
B)supermarkets.
C)discount stores.
D)specialty retailers.
E)warehouse showrooms.

Question 61

The target market of a regional shopping center typically includes at least ____ people.

A)25,000
B)50,000
C)100,000
D)150,000
E)250,000

Question 62

Which of the following is an example of a category killer?

A)Sears
B)Kmart
C)Marshalls
D)Lady Foot Locker
E)Toys "R" Us

Question 63

Shopping centers include

A)neighborhood, regional, superregional, power, and strip malls.
B)community, rural, urban, and traditional business districts.
C)outlet, power, lifestyle, superregional, regional, neighborhood, and community.
D)outlet malls, lifestyle, strip malls, and shopping malls.
E)free-standing, convenience, traditional, and regional.

Question 64

What type of shopping center usually consists of several small convenience and specialty stores?

A)Specialty
B)Regional
C)Neighborhood
D)Convenience
E)Community

Question 65

Jannette Down is planning to open an upscale dress boutique. She is evaluating ease of movement to and from sites, vehicular traffic, types of stores in the area, and transportation networks. Which strategic retailing issue is she concerned with at the time?

A)Location
B)Production depth
C)Product mix
D)Scrambled merchandising
E)Retail positioning

Question 66

A manufacturers' outlet mall is most appropriately classified as a(n)

A)discounter.
B)specialty retailer.
C)off-price retailer.
D)category killer.
E)department store.

Question 67

A(n) ____ is a very large specialty store that competes on the basis of lower prices and enormous product availability.

A)warehouse club
B)off-price retailer
C)category killer
D)traditional specialty store
E)super center

Question 68

Many cities are revitalizing their downtown areas by bringing in new retail establishments. They are building new civic structures, passing ordinances that encourage the restoration of historic buildings, and developing mixed-use structures that include retail, residential, and other uses. These areas are best described as

A)neighborhood shopping centers.
B)community shopping centers.
C)traditional shopping centers.
D)traditional business districts.
E)free-standing structures.

Question 69

Greg chooses to have his hunting equipment stored in a location away from the main part of town so that he can have a large parking lot and an outdoor range for customers to test out his merchandise. Greg's store is

A)in a traditional business district.
B)a rural shopping center.
C)in a neighborhood shopping center.
D)a non-traditional shopping center.
E)a free-standing structure.

Question 70

Michael's, PetSmart, and Staples are all examples of

A)department stores.
B)off-price retailers.
C)category killers.
D)traditional specialty retailers.
E)superstores.

Question 71

The kinds of products being sold and the availability of public transportation are both factors that influence a retailer's decision about

A)store atmosphere.
B)location.
C)retail positioning.
D)store image.
E)the wheel of retailing.

Question 72

A shopping center containing a Macy's, Marshall Fields, and JC Penney's as well as dozens of specialty shops, restaurants, and entertainment is most likely a

A)regional shopping center.
B)mall of America.
C)community shopping center.
D)complete business district.
E)hypermarket.

Question 73

Location is important to a retailer because

A)suppliers charge more to service stores in certain trading areas.
B)a desirable location appeals to consumers' emotions.
C)location is the major determinant of store image.
D)location determines the trading area from which the store must draw its customers.
E)convenient location is an essential customer service element.

Question 74

Colin brags to his friend Reid that his new bike shop has lots of parking and great visibility from Harper Avenue, and his nearest business neighbors are several hundred feet away. Colin has selected a ____ site for his retail business.

A)free-standing
B)traditional business district
C)neighborhood shopping center
D)community shopping center
E)regional shopping center

Question 75

Category killers compete primarily on the basis of

A)enormous product selection and sales expertise.
B)low prices and enormous product availability.
C)convenient locations and customer services.
D)rock-bottom prices and moderate selections.
E)one-stop shopping and product availability.

Question 76

In Cara's hometown, there is a mall with a small Sears store, a Macy's department store, a couple of fast food restaurants, a few specialty shops, and some convenience stores. The mall features seasonal sidewalks sales and boat shows. This mall is most likely a ____ shopping center.

A)neighborhood
B)national
C)regional
D)community
E)city

Question 77

Which of the following is the least flexible of these important retailing strategy issues?

A)Store atmosphere
B)Scrambled merchandising
C)Retail positioning
D)Store image
E)Location

Question 78

The type of retail location that is commonly being preserved and revitalized in many cities is the

A)traditional business district.
B)free-standing structure.
C)community shopping center.
D)neighborhood shopping center.
E)nontraditional shopping center.

Question 79

Dawn is concerned that there are not enough avid quilters in Centerville to support her Quilts Unlimited store. Her business adviser suggests that she not limit her promotion to the Centerville population but also consider outshoppers. This approach is most likely to work if her store is located in a

A)free-standing location.
B)traditional business district.
C)strip center.
D)community shopping center.
E)regional shopping center.

Question 80

Hickory Village Shopping Center has two department stores and some specialty and convenience stores. It serves a large geographic area and holds special events to stimulate consumer traffic. Hickory is a ____ shopping center.

A)community
B)regional
C)nontraditional
D)neighborhood
E)power