Question 1

Off-price retailers pay regular wholesale prices for their merchandise but maintain low prices by accepting lower margins and selling higher volume.

Accepted Answer

Off-price retailers acquire merchandise at a discounted price below the regular wholesale prices, allowing them to maintain their low prices and sell higher volume. They may also accept lower margins to keep prices competitive.

Question 2

Compare and contrast specialty stores and convenience stores.

Accepted Answer

The answer of Compare and contrast specialty stores and convenience...

Question 3

Retail stores can be classified in terms of several characteristics. Name four of them.

Accepted Answer

The answer of Retail stores can be classified in terms...

Question 4

A discount store buys at less-than-regular wholesale prices and charges consumers less than retail.

Accepted Answer

The answer of A discount store buys at less-than-regular wholesale...

Question 5

Many shoppers now check out merchandise online and then buy it at brick-and-mortar stores. This process is called showrooming.

Accepted Answer

The answer of Many shoppers now check out merchandise online...

Question 6

Like retailers, wholesalers must decide on product and service assortments, prices, promotion, and place.

Accepted Answer

This statement is true. Wholesalers, like retailers, have to make decisions about what products and services they offer, at what prices, how to promote these offerings, and where to sell them.

Question 7

In an automated warehouse, orders are fed directly from the retailer's information system to the wholesaler's, and the items are picked up by mechanical devices and taken to a shipping platform where they are assembled.

Accepted Answer

This statement accurately describes the process of an automated warehouse, where orders are fed automatically and items are picked up by mechanical devices for shipping.

Question 8

Independent off-price retailers either are independently owned and run or are divisions of larger retail corporations.

Accepted Answer

Independent off-price retailers can be either independently owned and run or can be divisions of larger retail corporations, which means they are not necessarily controlled by a parent company.

Question 9

In a retailer cooperative, independent retailers band together to set up a jointly owned, central wholesale operation and conduct joint merchandising and promotion efforts.

Accepted Answer

This is the correct definition of a retailer cooperative.

Question 10

A voluntary chain is a wholesaler-sponsored group of independent retailers that engages in group buying and common merchandising.

Accepted Answer

A voluntary chain is indeed a wholesaler-sponsored group of independent retailers that engage in group buying and common merchandising. They join forces to increase their buying power and compete with large chain stores.

Question 11

A community shopping center contains between 15 and 50 retail stores.

Accepted Answer

This statement is true. A community shopping center can contain between 15 and 50 retail stores, depending on its size and location.

Question 12

Category killers are giant specialty stores that carry a very deep assortment of a particular line.

Accepted Answer

Category killers are large stores that specialize in a specific product category and offer a wide selection of products within that category. They are called "killers" because they often dominate and drive out smaller competitors in the same product category.

Question 13

A neighborhood shopping center has from 50 to more than 100 stores.

Accepted Answer

The answer of A neighborhood shopping center has from 50...

Question 14

Megaretailers have shifted the balance of power between retailers and producers, giving retailers more power.

Accepted Answer

Megaretailers have strong bargaining power due to their large size and market share, which allows them to negotiate better prices and terms with producers. This shift in power has given retailers more leverage in the supply chain and has made it more challenging for producers to maintain profits and market share.

Question 15

Retailers first must position themselves in a market and then decide how they will define the target customers in these markets.

Accepted Answer

The answer of Retailers first must position themselves in a...

Question 16

Power centers tend to be smaller than lifestyle centers.

Accepted Answer

Power centers typically have larger anchor stores and fewer smaller specialty shops compared to lifestyle centers, so they tend to be larger in size.

Question 17

Green retailing yields both top- and bottom-line benefits.

Accepted Answer

Green retailing, which involves incorporating environmentally friendly practices and products into retail operations, has been found to yield both top-line benefits (such as increased sales and customer loyalty) and bottom-line benefits (such as cost savings from reduced energy and resource usage).

Question 18

The life cycle of new retail forms is getting longer.

Accepted Answer

The answer of The life cycle of new retail forms...

Question 19

Corporate chains are two or more outlets that are commonly owned and controlled.

Accepted Answer

Corporate chains are defined as businesses with two or more outlets that are owned and controlled by the same company or individual.

Question 20

Retail convergence means lower competition for retailers and lower difficulty in differentiating the product assortments of different types of retailers.

Accepted Answer

Retail convergence actually means higher competition for retailers and higher difficulty in differentiating the product assortments of different types of retailers as they start to offer similar products and services.

Quiz 13: Retailing and Wholesaling