Question 1

Retail facilities located in big, low-cost buildings with large on-premise inventories and minimal services are called

Accepted Answer

The description of the retail facilities matches that of warehouse showrooms, which are large buildings with on-premise inventories and minimal services, typically offering discounts and focusing on selling in bulk. Catalog showrooms rely on printed or online catalogs to showcase products, category killers specialize in one product or category and offer a wide selection, warehouse clubs are membership-based and often require bulk purchases, and display outlets focus on showcasing products for demonstration purposes rather than selling.

Question 2

Which of the following is not a common feature of a warehouse club?

Accepted Answer

Good customer service is not typically a common feature of warehouse clubs. These stores often prioritize low prices and bulk quantities over personalized service.

Question 3

Stores that are in a manufacturers' outlet mall, such as Ralph Lauren, Tommy Hilfiger, Clarks' Shoes, and Samsonite Luggage are most appropriately classified as a(n)

Accepted Answer

Stores in a manufacturers' outlet mall are selling their products at a discounted price, making them off-price retailers. They may specialize in a particular product category (such as clothing or luggage), but they are not considered specialty retailers as they are selling branded products rather than niche or unique items. They are also not considered discounters, as they are not selling lower-quality or no-name products at a cheaper price. Category killers are large, dominant retailers in a particular product category, and department stores have a wider range of products and brands.

Question 4

Sam's and Costco are examples of

Accepted Answer

Sam's and Costco are both examples of warehouse clubs, which are large retailers that offer a wide selection of products at low prices to members who pay an annual fee. They typically sell in bulk quantities and operate on a self-service model.

Question 5

A store that offers a wide variety of shoes for men, women, and children would most likely be considered a(n)

Accepted Answer

A specialty retailer focuses on a specific product category, such as shoes, and offers a wide variety of items within that category for various demographics.

Question 6

Levitz Furniture locates in huge, low-cost buildings, maintains large, on-premises inventories, and offers minimum service. Levitz is a

Accepted Answer

Levitz Furniture's business model aligns with that of a warehouse showroom. They operate in large, low-cost buildings and keep a large inventory on the premises. Additionally, they offer minimal service, further emphasizing the characteristics of a warehouse showroom.

Question 7

A narrow product mix with a deep product line would most likely be carried by

Accepted Answer

A narrow product mix means that the store specializes in a specific category or product line. A deep product line means that the store carries a wide variety of products within that category. Specialty retailers are known for carrying a narrow but deep product line, such as sporting goods stores or jewelry stores.

Question 8

Category killers compete primarily on the basis of

Accepted Answer

The answer of Category killers compete primarily on the basis...

Question 9

Which of the following is a large-scale, members-only, retailer that combines cash-and-carry wholesaling with discount retailing?

Accepted Answer

A warehouse club is a large-scale, members-only retailer that combines cash-and-carry wholesaling with discount retailing. The other options listed are not specific to this definition.

Question 10

Which of the following is an example of a category killer?

Accepted Answer

Toys "R" Us is an example of a category killer because it dominates the toy retail industry, offering a wide selection of toys at competitive prices.

Question 11

After shopping in the same store for nearly two hours, Chelsea goes to Burger King for a Whopper, while Cynthia goes to the optical shop to see if her contacts are ready. They engage in these activities without leaving the store in which they have been shopping. They are most likely in a

Accepted Answer

The answer of After shopping in the same store for...

Question 12

Matt's girlfriend tells him she wants a cashmere sweater for Christmas. Matt decides to go to a store that provides the best possible selection of sweaters. His best choice would be to shop at a ____ store.

Accepted Answer

A traditional specialty store would provide the best possible selection of sweaters, including high-quality cashmere options. Department stores may carry some cashmere sweaters, but their selection may not be as extensive, and discount stores are unlikely to carry high-end cashmere products. Catalog and convenience stores may not offer the same level of in-person selection and assistance as a traditional specialty store.

Question 13

What type of retailers are the primary competitors for specialty retailers?

Accepted Answer

The answer of What type of retailers are the primary...

Question 14

Off-price retailers feature

Accepted Answer

The answer of Off-price retailers feature
...

Question 15

Michael's, PetSmart, and Staples are all examples of

Accepted Answer

Michael's, PetSmart, and Staples are all large specialty retailers that dominate a specific category, known as category killers.

Question 16

Off-price retailers and category killers are both

Accepted Answer

The answer of Off-price retailers and category killers are both
...

Question 17

A(n) ____ is a very large specialty store that competes on the basis of lower prices and enormous product availability.

Accepted Answer

A category killer is a large specialty store that focuses on one merchandise category and offers a huge selection of merchandise at low prices. They often offer a wider variety and deeper selection of products than traditional specialty stores, and are known for dominating their product categories.

Question 18

Retailers that sell only to members and feature discount retailing combined with cash-and-carry wholesaling are called

Accepted Answer

These retailers are specifically known as warehouse clubs, which feature a membership program, discounted pricing, and a cash-and-carry operation where customers are required to transport their purchases themselves.

Question 19

Stores that buy manufacturers' seconds, overruns, returns, and off-season production runs at below wholesale prices. These firms resell this merchandise to consumers at deep discounts, and are called

Accepted Answer

"Off-price retailers" are specifically described as stores that buy merchandise at below wholesale prices and resell it to consumers at deep discounts. None of the other options fit this criteria.

Question 20

When off-price retailers obtain too much in-season, high-quality merchandise, tension between them and ____ builds.

Accepted Answer

Off-price retailers often obtain excess high-quality merchandise in-season from department stores, leading to tension between the two.

Quiz 14: Retailing, Direct Marketing, and Wholesaling