Deck 12: Retailers, Wholesalers, and Their Strategy Planning

Question 1

The marketing strategies for the two shoe retailers Foot Locker and Zappos are very different.Zappos' strategy is successful,while Foot Locker's strategy is not.

Answer 1

False
Explanation: Zappos and Foot Locker are successful shoe retailers with different marketing strategies; both keep target customers coming back.

Question 2

The majority of all retail stores in the U.S.have annual average sales of less than $1 million.

Answer 2

True
Explanation: Just over half of all the retail stores in the United States have annual sales of less than $1 million.

Question 3

Retailing includes all of the activities involved in reselling goods to final consumers,but it does not include the sale of services to final consumers,since services must be produced in the presence of the consumer.

Answer 3

False
Explanation: Retailing covers all the activities involved in the sale of products to final consumers,whether the product is a physical good,a service,or a blend of both.

Question 4

In most countries,small limited-line retailers still account for the majority of all retailers.

Question 5

Less than 15 percent of retail stores in the United States have annual average sales of $5 million or more.

Question 6

The marketing strategies for the two shoe retailers Foot Locker and Zappos are very different,but both are successful.

Question 7

Franchise holders account for about a half of all retail sales.

Question 8

A retailer's marketing strategy decisions will ultimately determine both its positioning and how it is differentiated from other retailers.

Question 9

Single-line stores that used to carry anything they could sell in reasonable volume used to be the main retailers in the United States.

Question 10

Most "conventional" retailers are single-line or limited-line stores that have very low expenses relative to sales.

Question 11

The growth of cooperative chains of retail stores is due to the desire of small retailers to achieve some of the benefits of large-scale corporate chains.

Question 12

Most single-line and limited-line stores apply the retailing philosophy of buying low and selling high.

Question 13

Retailers and their strategies can easily be classified based on the type of merchandise they sell.

Question 14

In a franchise operation,the franchisor develops a good marketing strategy,and the retail franchise holders carry out the strategy in their own units.

Question 15

Internet retailers don't need to develop whole marketing strategies,due to their self-service nature.

Question 16

Specialty shops will continue to be a part of the retailing scene as long as customers have varied tastes and the money to satisfy them.

Question 17

Franchising now accounts for about a third of all retail sales.

Question 18

It's oversimplified to classify retailers and their strategies on the basis of a single characteristic-such as sales volume,services,product assortment,etc.

Question 19

Specialty shops are limited-line stores; they aim at a carefully defined target market with a unique product assortment,good service,and knowledgeable salespeople.

Question 20

Almost half of all retail sales are made by the largest stores-those with sales of over $5 million a year.

Question 21

The basic idea for supermarkets developed in the U.S.in the 1960s,when consumers started to move from the cities to the suburbs.

Question 22

Mass-merchandisers have proved to be effective competitors in taking away department store customers.

Question 23

A consumer who went to shop at a "supercenter" would probably expect not only to be able to buy food and health care products,but also to leave dry-cleaning or have shoes repaired.

Question 24

A discount house is trying to meet all customers' routine needs at a low price.

Question 25

Stockturn rate refers to the rate at which single-line mass-merchandisers put specialized retailers out of business.

Question 26

Department stores are larger stores that are organized into many separate departments and offer many product lines.

Question 27

Retailers who follow a policy of "buy low and sell high" are practicing the "mass-merchandising concept."

Question 28

Large sales volume and efficient operation are usually very important for supermarkets,since net profits usually run at 1 to 2 percent of sales or less.

Question 29

Supercenters are very large stores that specialize in selling a big variety of infrequently purchased products that would otherwise be hard for consumers to find.

Question 30

Category killers is another name for single-line mass-merchandisers.

Question 31

Warehouse clubs started the move to mass-merchandising.

Question 32

Mass-merchandisers emphasize "hard goods," while discount houses emphasize "soft goods."

Question 33

Discount stores offer "soft goods" at substantial price cuts to customers.

Question 34

Department stores are stores that usually try to serve customers seeking a variety of convenience products.

Question 35

A "supercenter" carries all the goods and services that a consumer might routinely purchase.

Question 36

Mass-merchandisers have become the primary place to shop for many frequently purchased consumer products.

Question 37

In addition to food,warehouse clubs emphasize heterogeneous shopping goods.

Question 38

In addition to food,warehouse clubs carry homogeneous shopping goods.

Question 39

Department stores keep growing in numbers,sales,and market share.

Question 40

The mass-merchandising concept means that retailers can succeed by selling a large volume of merchandise to a target market at low prices.

Question 41

A customer who goes to Amazon.com to look at different types of cycling jackets but then purchases a jacket at her local bike shop is a multichannel shopper.

Question 42

Some customers find online shopping more convenient than shopping in a physical store.

Question 43

Door-to-door selling now accounts for less than 1 percent of retail sales in the United States.

Question 44

A company with a high stockturn rate is selling product quickly.

Question 45

Home shopping methods-like cable TV shopping channels and catalogs-now use a multichannel approach by adding a website.

Question 46

One advantage physical stores have over online stores is simplified price and product feature comparison.

Question 47

Because of their higher margins,faster turnover,and narrower assortments,convenience food stores have the potential to be more profitable than supermarkets.

Question 48

In 2015,online sales accounted for about 25 percent of all retail sales.

Question 49

Automatic vending accounts for 15 percent of total U.S.retail sales.

Question 50

Convenience food stores now compete with supermarkets,gas stations,and fast-food outlets.

Question 51

Electronic shopping,which puts catalogs on cable TV or Internet websites,has not yet succeeded.

Question 52

Stores without a physical location that sell exclusively on the Internet are known as online retailers.

Question 53

When RedBox rents DVD movies from vending machines at McDonald's,it is acting as a channel captain,not a retailer.

Question 54

To overcome the limitation of not being able to physically inspect a product before purchasing online,many online retailers now provide photos and videos that demonstrate the product.

Question 55

Today,more than half of all computer hardware and software and a quarter of all books are sold online.

Question 56

The sale of candy from a vending machine at a bus station is not considered retailing,since no store is involved.

Question 57

In 2016,online sales in the United States topped $1 trillion for the first time.

Question 58

One advantage that online retailers have,compared to physical stores,is offering a wide assortment.

Question 59

The major advantage of vending machine retailing is that the costs are low relative to the volume they sell.

Question 60

Internationally,door-to-door selling is growing in popularity and,in the U.S.,it accounts for more than 15 percent of all retail sales.

Question 61

Webrooming refers to gathering information for a purchase in an online store and then purchasing in a brick-and-mortar store.

Question 62

A customer goes to the Ace Hardware website and finds out that there are three Philips LED light bulbs he wants to purchase in stock at their local store.The customer then goes to the store and finds those light bulbs in stock.Ace Hardware is practicing an omnichannel approach.

Question 63

Wholesalers are more likely to dominate distribution channels in more advanced economies than in less-developed ones.

Question 64

The supercenter retailing format began in the U.S.and then was exported to other countries.

Question 65

The development of vending machines and convenience food stores is not explained by the "wheel of retailing" theory.

Question 66

Scrambled merchandising refers to the practice of conventional retailers handling many products within a limited-line,even though many of these products have to be sold at a low profit.

Question 67

The development of department stores and supermarkets is explained by the "wheel of retailing" theory.

Question 68

Retailers who carry any product line that will sell profitably are practicing scrambled merchandising.

Question 69

The product life-cycle concept applies to retailers as well as products.

Question 70

In-store shopping varies a lot from country to country,but online shopping does not.

Question 71

According to the U.S.Census Bureau,wholesaling is defined as the activities of firms that sell to retailers but do not sell in large amounts to final consumers,manufacturers,or other institutional users.

Question 72

Scrambled merchandising means mixing product lines for higher profits.

Question 73

The "wheel of retailing" theory says that new retailers enter the market as high-status,high-margin,high-price operators and then evolve into discount stores as competition becomes more intense.

Question 74

Application of the product life-cycle concept to retailing suggests that all types of retailers are in early market growth due to continually increasing family income.

Question 75

Scrambled merchandising is carrying any product lines a store thinks it can sell profitably.

Question 76

Progressive wholesalers are becoming more concerned with their customers and with adding value in their channels.

Question 77

The "wheel of retailing" theory fails to explain some major retailing developments,such as vending machines and convenience food stores,that did not enter the market with a low-price emphasis.

Question 78

Omnichannel is a multichannel selling approach in which a single retailer provides a seamless customer shopping experience from computer,mobile device,or brick-and-mortar store.

Question 79

Consumers in less-developed nations have the income to support mass distribution.

Question 80

To fight back against the online presence of brick-and-mortar stores,some online-only retailers are opening physical locations to help deliver a better shopping experience to customers.