Question 1

The main difference between selective distribution and exclusive distribution is the number and type of market segments the firm chooses. In a selective strategy, a variety of profitable niche markets are selected, while in an exclusive strategy one specific market segment is targeted, and all others are excluded.

Accepted Answer

The answer of The main difference between selective distribution and...

Question 2

In order to succeed in today's tough economic times all retailers must compete with low prices.

Accepted Answer

While offering competitive prices is important for retailers, it is not the only factor that contributes to success. Other factors such as customer service, product selection, and marketing strategies also play a significant role in a retailer's success.

Question 3

An advantage of a selective distribution strategy is that consumers are able to find a popular product at a wide variety of retailers.

Accepted Answer

A selective distribution strategy limits the number of retailers who can sell a product, which can lead to a more exclusive image and better control over pricing and product availability. However, this strategy can also make it harder for consumers to find the product, as it is only available at a limited number of retailers.

Question 4

Exclusive distribution is the use of only one retail outlet in a given geographic area.

Accepted Answer

Exclusive distribution means that only one retail outlet is used in a specific area, while non-exclusive distribution allows for multiple outlets to sell a product or brand.

Question 5

Saul-Mart is the name of a new chain of discount stores. A major part of Saul-Mart's competitive strategy is likely to be based on keeping its prices lower than those of other types of retailers.

Accepted Answer

Saul-Mart's competitive strategy is based on keeping its prices lower than other retailers, which indicates a focus on offering discounts to lure customers.

Question 6

Discount stores and department stores sell different brands of products that are usually priced about the same.

Accepted Answer

Discount stores typically sell lower-priced brands and generic products, while department stores tend to carry higher-end brands and designer products at higher prices.

Question 7

Specialty stores use a wide variety of products in one product category as their key competitive tool.

Accepted Answer

Specialty stores typically focus on a specific product category and offer a wide variety of products within that category as their main competitive advantage. This allows them to cater to a specific customer base and offer a more specialized shopping experience. Examples of specialty stores include Sephora (beauty products), PetSmart (pet supplies), and Best Buy (electronics).

Question 8

Discount stores, department stores, supermarkets, and specialty stores are all among the major types of retail stores.

Accepted Answer

This statement is true, as these are all commonly recognized types of retail stores.

Question 9

Retailers that participate in an exclusive distribution strategy will have a strong incentive to carry a large inventory of the good and provide exceptional service to customers.

Accepted Answer

Since retailers that participate in exclusive distribution strategy have the sole right to sell a particular product in a specific geographic area or customers segment, they have a competitive advantage. As a result, they have a strong incentive to carry a large inventory of the good and provide exceptional service to customers to maintain customer loyalty and attract new customers.

Question 10

Department stores offer a wide variety of products that are sold in separate departments.

Accepted Answer

Department stores are specifically designed to sell a wide variety of products that are separated by department, such as clothing, beauty, electronics, and home goods.

Question 11

A category killer is an extremely successful product that kills the sales of other products in its category in a retail store.

Accepted Answer

The answer of A category killer is an extremely successful...

Question 12

Soundworthy Stereo is a producer of high quality speakers and stereo components. The company sells its products through a few preferred retailers in any geographic area. Soundworthy uses a selective distribution strategy.

Accepted Answer

Selective distribution strategy involves carefully selecting a limited number of retailers to sell a company's products in a specific geographic area. This aligns with Soundworthy's approach of using a few preferred retailers to sell their high-quality speakers and stereo components.

Question 13

A distribution strategy that puts the product into as many retail outlets as possible is known as an intensive distributive strategy.

Accepted Answer

An intensive distribution strategy involves making the product available in as many retail outlets as possible to reach a wide audience and maximize sales potential.

Question 14

Producers of shopping goods such as furniture, appliances, and clothing usually rely on an exclusive distribution strategy.

Accepted Answer

The answer of Producers of shopping goods such as furniture,...

Question 15

Warehouse clubs are usually smaller than supermarkets.

Accepted Answer

Warehouse clubs are typically much larger than supermarkets, often spanning over 100,000 square feet.

Question 16

Retail organizations employ more than 11 million people in the U.S.

Accepted Answer

According to the National Retail Federation, retail organizations employ over 11 million people in the U.S. (as of 2021).

Question 17

Candy, gum, cigarettes, and popular magazines are usually distributed using a selective distribution strategy.

Accepted Answer

The answer of Candy, gum, cigarettes, and popular magazines are...

Question 18

Warehouse clubs compete with enhanced service to customers and seldom try to compete on price.

Accepted Answer

Warehouse clubs typically focus on offering lower prices to customers as their main competitive advantage, rather than enhanced service.

Question 19

Category killer stores tend to compete mainly on the basis of carrying a wide array of products, superior service, and low prices.

Accepted Answer

The answer of Category killer stores tend to compete mainly...

Question 20

Discount stores compete in the retail market mainly on the basis of price.

Accepted Answer

Discount stores are known for offering lower prices compared to traditional retailers, which is their primary competitive advantage.

Quiz 15: Distributing Products