Question 1

Katie buys supplies for her consulting business at a retailer that stocks a limited selection of items,which are sold in bulk on a cash-and-carry basis to members only.As she browses through a huge store,she buys flour,a set of muffin pans,and a package of paper towels as well as an assortment of fresh produce.Katie is most likely shopping at a(n):

Accepted Answer

Warehouse clubs sell a limited selection of brand-name appliances,household items,and groceries,usually in bulk on a cash-and-carry basis to members only.

Question 2

_____ is a low-profile,yet important,form of retailing in which consumers get products out of automated machines,and it accounts for $40 billion worth of sales each year in the United States.

Accepted Answer

Automatic vending is the use of machines to offer goods for sale.

Question 3

Which of the following statements about restaurants is true?

Accepted Answer

According to the text,restaurants straddle the line between a retailing establishment and a service industry.Time poverty is not a demographic factor.At the moment food service companies are generally overexpanded.

Question 4

_____ sell a limited selection of brand-name appliances,household items,and groceries,usually in bulk on a cash-and-carry basis to members only.

Accepted Answer

This is the definition of warehouse membership clubs.

Question 5

_____ are full-line discount,off-price retailers who entice the low- and fixed-income customers who live near the stores.

Accepted Answer

An increasingly popular variation of full-line discount stores is extreme-value retailing,the most notable examples being Dollar General and Family Dollar.

Question 6

_____ refers to shopping without visiting a store and is currently growing faster than in-store shopping because of the consumer demand for convenience.

Accepted Answer

Nonstore retailing is selling to consumers through other means than by visiting a store.

Question 7

A publisher of books on holiday decorating,cooking,and crafts has to find a way to dispose of its overrun and unsold end-of-season output.As a marketing consultant,you suggest the firm sell the merchandise to:

Accepted Answer

Off-price discount retailers purchase goods at cost or less from manufacturers' overruns,bankruptcies,irregular stock supplies,and unsold end-of-season output.The other four categories may be current customers and would not have a use for the overruns and out-of-season stock.

Question 8

Which of the following statements about nonstore retailing is true?

Accepted Answer

Nonstore retailing refers to shopping without visiting a store;convenience is playing a major role in the growth of nonstore business.

Question 9

Toys "R" Us sells a huge assortment of toys and children's books at greatly reduced prices.It offers customers few services and competes on the basis of moderate to low prices on the large quantities of merchandise it stocks.Toys "R" Us is an example of a:

Accepted Answer

A specialty discount store (also called a category killer)offers a nearly complete selection of single-line merchandise and uses self-service,discount prices,high volume,and high turnover.

Question 10

_____ are single-line stores that offer a nearly complete selection of one line of merchandise and use self-service,discount prices,high volume,and high turnover of merchandise to their advantage.

Accepted Answer

A specialty discount store is also called a category killer.

Question 11

Which type of retailing is the selling of products by representatives who work door-to-door,office-to-office,or at home parties?

Accepted Answer

This is the definition of direct retailing.

Question 12

A retail operation that has a 90,000-square-foot facility,that houses a florist,baker,bank,craft shop,photo finisher,dry cleaner,and pharmacy under the same roof as grocery and household items is correctly called a:

Accepted Answer

Supercenters offer an array of products and services,as well as groceries.

Question 13

Southwestern Company recruits and trains college students to sell educational reference books,software,and children's books door-to-door.This form of nonstore retailing is called:

Accepted Answer

Direct retailing is the selling of products by representatives who work door-to-door,office-to-office,or at home parties.

Question 14

Which of the following groups is most likely to be the target market for extreme-value retailers?

Accepted Answer

Low- and fixed-income customers are drawn to extreme-value retailers,whose stores are located within their communities.

Question 15

A _____ is an off-price retailer that is owned and operated by a manufacturer and carries one line of merchandise--its own.

Accepted Answer

This is the definition of a factory outlet.

Question 16

Specialty stores such as Best Buy,Staples,Dick's Sporting Goods,and Bed,Bath,and Beyond are often called category killers because:

Accepted Answer

Because these stores dominate their narrow merchandise segment,they are called category killers.

Question 17

Off-price retailers:

Accepted Answer

Off-price retailers buy manufacturers' overruns at cost or even less.

Question 18

Well-known manufacturers such as Bose,Ralph Lauren,and Reebok have decided the most profitable way to dispose of out-of-season and irregular stock is to open stores and sell their own merchandise.These stores are types of:

Accepted Answer

A factory outlet is a type of off-price retailer that is owned and operated by a manufacturer and carries one line of merchandise--its own.

Question 19

Kmart utilizes a strategy of moderate to low prices on large quantities of products and lower levels of service to stimulate a high turnover of inventory.Kmart offers a wide variety of different product lines.Kmart is an example of a:

Accepted Answer

Mass merchandising is the retailing strategy whereby retailers use moderate to low prices on large quantities of merchandise and lower service to stimulate high turnover of products.

Question 20

_____ is the retailing strategy of using moderate to low prices on large quantities of products and lower service to stimulate a high turnover of inventory.

Accepted Answer

Full-line discounters are often call mass merchandisers.

Quiz 15: Retailing