Question 1

What might be a major concern for a high-end designer whose merchandise is sold through factory outlets?

Accepted Answer

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Question 2

The Great Recession put heavy pressure on wholesalers to increase their operation costs and limit warehouse automation systems.

Accepted Answer

The Great Recession actually put pressure on wholesalers to decrease their operation costs, which led to an increase in warehouse automation systems to save money on labor costs.

Question 3

The suppliers who are not adding value based on cost and quality are more in demand than their competitors.

Accepted Answer

Suppliers who are not adding value based on cost and quality are likely to be less in demand than their competitors who are providing higher value to customers. Customers are often willing to pay more for better quality products or services, or for suppliers who can offer cost savings through efficiency or innovation.

Question 4

How are retailers classified based on the amount of service they provide to customers? Provide examples of each service level to illustrate your response.

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Question 5

Three types of shopping centres are regional shopping centres, community shopping centres, and neighborhood shopping centres or strip malls. Describe how they differ from each other.

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Question 6

What is the difference between a limited-service and a full-service retailer?

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Question 7

Describe superstores, category killers, and service retailers.

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Question 8

Posco, a limited-service retail chain with 130 stores across the country, is seeking to improve its standing in the market. Since its operations are widespread, altering the store atmosphere significantly is not feasible because of the costs involved. Similarly, upgrading the stores to full-service retail chains would require a large investment of time, effort, and employee training. Assuming that many of Posco Retail's private-label brands are bringing in large revenues, what strategy could Posco Retail use to differentiate itself while matching target shoppers' expectations?

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Question 9

Wholesalers add value to the supply chain.

Accepted Answer

Wholesalers act as intermediaries between manufacturers or producers and retailers, adding value by buying large quantities of products from the former and distributing them in smaller quantities to the latter. They offer a range of services such as warehousing, transportation, packaging, promotion, and credit, which reduce transaction costs, increase efficiency, and generate economies of scale for all parties involved in the supply chain. By doing so, they play a crucial role in helping retailers meet customer demands by providing them with a variety of products at competitive prices, while allowing manufacturers to focus on their core competencies and maximize their profitability.

Question 10

In an automated warehouse, orders are fed directly from the retailer's information system into 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 is a description of how an automated warehouse operates. Orders are directly transferred from the retailer's system to the wholesaler's system and the items are picked up by mechanical devices for shipping.

Question 11

Merchant wholesalers are independently owned businesses.

Accepted Answer

Merchant wholesalers are independently owned businesses.

Question 12

Crunch and Munch is the country's favorite fast-food vendor of fried chicken. Over the years, the company has diversified into providing a larger variety of snacks like hot dogs, burritos, and burgers, but consumers still consider it the best seller of fried chicken. Many parties have approached Crunch and Munch with offers to buy the company, but Crunch and Munch continues to operate through its stores and franchise outlets. What is franchising? Why would franchising be a good contractual system for Crunch and Munch?

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Question 13

Compare and contrast specialty stores and convenience stores.

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Question 14

Manufacturers' agents represent two or more manufacturers of complementary lines.

Accepted Answer

Manufacturers' agents often represent multiple manufacturers whose products are complementary or related in some way, such as selling both plumbing fixtures and bathroom accessories. This allows them to offer a wider range of products to their customers and can often result in increased sales for all the manufacturers they represent.

Question 15

How can discount stores sell merchandise at lower prices?

Accepted Answer

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Question 16

What types of products do specialty stores carry? Give an example of a specialty store.

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Question 17

Describe the differences between discount stores and off-price retailers.

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Question 18

What is the difference between corporate chains, voluntary chains, and retailer cooperatives? How are such retail organizations different from franchise organizations?

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Question 19

Describe the promotion tools used by retailers.

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Question 20

What types of products may be sold through category killers?

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Quiz 12: Retailing and Wholesaling

What might be a major concern for a high-end designer whose merchandise is sold through factory outlets?

The Great Recession put heavy pressure on wholesalers to increase their operation costs and limit warehouse automation systems.

The suppliers who are not adding value based on cost and quality are more in demand than their competitors.

How are retailers classified based on the amount of service they provide to customers? Provide examples of each service level to illustrate your response.

Three types of shopping centres are regional shopping centres, community shopping centres, and neighborhood shopping centres or strip malls. Describe how they differ from each other.

What is the difference between a limited-service and a full-service retailer?

Describe superstores, category killers, and service retailers.

Wholesalers add value to the supply chain.

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

Merchant wholesalers are independently owned businesses.

Compare and contrast specialty stores and convenience stores.

Manufacturers' agents represent two or more manufacturers of complementary lines.

How can discount stores sell merchandise at lower prices?

What types of products do specialty stores carry? Give an example of a specialty store.

Describe the differences between discount stores and off-price retailers.

What is the difference between corporate chains, voluntary chains, and retailer cooperatives? How are such retail organizations different from franchise organizations?

Describe the promotion tools used by retailers.

What types of products may be sold through category killers?