Question 1

________ refers to using point-of-purchase promotions and advertising to extend brand equity to "the last mile" and encourage favorable point-of-purchase decisions.

Accepted Answer

Shopper marketing refers to using promotions and advertising at the point of purchase to influence purchase decisions and strengthen brand equity. It is aimed at creating a more satisfying shopping experience for the consumer, which in turn leads to better sales and stronger customer loyalty. By using shopper marketing tactics, companies can influence consumers at the point of purchase and encourage them to choose their products over those of competitors, thereby enhancing sales and brand image.

Question 2

A convenience store ________.

Accepted Answer

A convenience store typically carries a limited line of high-turnover goods that are easily accessible for self-service, such as snacks, beverages, and basic household items. They cater to customers who are looking for quick and convenient purchases, rather than a wide range of products or full-service customer assistance.

Question 3

________ refer to retailers that sell standard merchandise at lower prices by accepting lower margins and selling higher volume.

Accepted Answer

Discount stores specialize in selling standard merchandise at lower prices by accepting lower margins and selling higher volume. Convenience stores typically charge higher prices for the convenience of being open at all hours and carrying a limited selection of goods. Full-service retailers offer a wider range of products and services, but at higher prices. Designer shops and specialty stores sell high-end merchandise at premium prices.

Question 4

Which of the following is a type of off-price retailer?

Accepted Answer

Warehouse clubs are a type of off-price retailer that offer a limited selection of brand name grocery items, appliances, clothing, and a variety of other goods at discount prices to club members, typically in a large warehouse-like space.

Question 5

Department stores are most likely characterized by ________.

Accepted Answer

Department stores are typically known for offering a wide variety of product lines, including clothing, cosmetics, home goods, electronics, and more. They cater to a broad customer base and aim to offer something for everyone. Narrow product lines (A) and specialty goods and services (B) are more commonly associated with specialty stores or boutique shops. Predatory pricing strategies (C) typically refer to a practice of intentionally pricing products lower than competitors in order to drive them out of business, which is not necessarily a defining characteristic of department stores. While department stores may carry luxury brands, this is not their main focus, nor is it necessarily true for all department stores (D).

Question 6

Which type of retailer typically carries deep product assortments of narrow product lines?

Accepted Answer

Specialty stores typically carry deep product assortments of narrow product lines, while self-service retailers (such as supermarkets), warehouse clubs, and discount stores tend to carry broader product assortments with shallower depths. Factory outlets may also carry narrow product lines, but their primary focus is on selling discounted merchandise.

Question 7

Specialty stores are characterized by ________.

Accepted Answer

Specialty stores are known for carrying a narrow selection of products but with a deep assortment within that category. For example, a store that only sells men's dress shoes but carries a wide variety of styles, sizes, and colors.

Question 8

Which of the following statements is true of retailing?

Accepted Answer

Retailing involves selling products or services directly to consumers. Services like hotels, banks, airlines, restaurants, colleges, and hospitals can be retailed. Option A is false as not all retail stores are full-service retail stores. Option B is incorrect as a department store has a broad product line with a deep assortment. Option C is false as the largest type of retail outlet is a hypermarket, which is larger than a supermarket. Option E is false as everyday low pricing is not a feature common to all types of retail stores.

Question 9

Which term refers to a giant specialty store with a very deep assortment of a particular product line?

Accepted Answer

The term "category killer" refers to a giant specialty store with a very deep assortment of a particular product line, such as Home Depot for home improvement or Best Buy for electronics.

Question 10

Customers at Carat,a premium jewelry store,are encouraged to make an appointment before a visit so that a customer service representative is assigned to them.These representatives help every customer make a purchase that meets his or her needs and budget after considering numerous options.The different styles and special features of the jewelry are explained to each customer to aid the purchase decision.In this case,Carat is an example of a(n)________.

Accepted Answer

Carat is an example of a full-service retailer as they offer personalized service to customers and have representatives assigned to help them make a purchase.

Question 11

Which of the following conditions increases the chances of a retailer opting to be categorized as a self-service retailer?

Accepted Answer

Self-service retailers allow customers to conduct their own locate-compare-select process. Therefore, if customers are willing to do this, the retailer is more likely to opt for self-service categorization.

Question 12

________ refers to the activities involved in selling products or services directly to final consumers for their personal,nonbusiness use.

Accepted Answer

Retailing refers to the selling of products and services directly to final consumers for their personal use. It involves activities such as setting up physical or online stores, managing inventory, pricing the products, and providing customer service. The other options, such as manufacturing, procurement, and warehousing, are not directly related to selling products to final consumers. Sole sourcing refers to the practice of buying goods or services from a single supplier.

Question 13

GameStop,a video game retailer,offers a deep assortment of video games and video game consoles.GameStop is best described as a(n)________.

Accepted Answer

GameStop offers a specific category of products (video games and consoles) and has a deep assortment in that category, making it a specialty store. It does not offer a wide range of products like a department or supermarket, nor does it primarily focus on offering discounts like a discount or off-price retailer.

Question 14

Flax is a chain of stores that carries several product lines including clothing,home furnishings,and household appliances.Each line is operated as a separate department,and employees are available to assist and advise customers in every phase of the shopping process.Flax is most likely a ________.

Accepted Answer

Flax is a full-service retailer as it has separate departments for different product lines and employees are available to assist and advise customers in every phase of the shopping process.

Question 15

Jones & Company,a major retail chain across the United States,offers a wide range of consumer goods such as clothing,furniture,home appliances,cosmetics,jewelry,and food.Jones & Company is best described as a ________.

Accepted Answer

Jones & Company is a department store because it offers a diverse range of consumer goods under one roof, with different departments for each category of products. Supermarkets primarily sell food and household goods, specialty stores focus on a specific type of product, pop-up stores are temporary retail spaces, and category killers specialize in dominating one particular category of products.

Question 16

Pawz is a larger retailer that specializes in pet products and services such as pet food,accessories,grooming,toys,and medical treatment.Pawz also has animals available for adoption at all of its many stores located across the nation.Pawz is most likely an example of a ________.

Accepted Answer

Pawz is a type of category killer store that specializes in a specific category of products for pets, and offers a wide range of products and services within that category. They also have animals available for adoption, which is another service related to the pet category.

Question 17

________ have filled the ultralow-price,high-volume gap by buying at less-than-regular wholesale prices and charging consumers less than retail.

Accepted Answer

Off-price retailers are known for buying merchandise at below regular wholesale prices and selling them at discounted prices to consumers. This fits the description of filling the ultralow-price, high-volume gap mentioned in the question. Specialty stores, convenience stores, designer shops, and full-service retailers do not necessarily focus on offering ultralow prices or buying at less-than-regular wholesale prices.

Question 18

Stores that provide moderate sales assistance because they carry shopping goods about which customers need a moderate level of information are called ________ retailers.

Accepted Answer

Limited-service retailers provide moderate sales assistance and carry shopping goods about which customers need a moderate level of information. Examples of limited-service retailers include discount stores, cash-and-carry wholesalers, and grocery stores.

Question 19

Which types of stores are characterized by specialty goods for which customers need assistance and higher operating costs that are passed along to customers as higher prices?

Accepted Answer

Full-service stores specialize in offering high-quality, specialty goods that require assistance and have higher operating costs which are passed along to customers as higher prices. These stores offer a high level of customer service and often have a knowledgeable staff who can provide personalized recommendations to customers. Examples of full-service stores include specialty boutiques, high-end department stores, and luxury retailers.

Question 20

Which type of store is much larger than a regular supermarket and offers a large assortment of routinely purchased food products,nonfood items,and services?

Accepted Answer

Superstores are much larger than regular supermarkets and offer a wide variety of products and services, including groceries, household items, and sometimes even services such as pharmacies or auto centers. Discount stores (A) typically focus on low prices and may not offer as wide of a selection, while specialty stores (B) focus on a specific type of product or niche market. Factory outlets (C) typically offer discounted merchandise from a specific brand or manufacturer, while off-price outlets (E) offer a mix of discounted merchandise from various sources.

Quiz 11: Retailing and Wholesaling