Question 1

__________ can purchase merchandise at one-fifth to one-fourth of the original wholesale prices because they do not ask the suppliers for advertising allowances or markdown adjustments.

Accepted Answer

Off-price retailers purchase merchandise at deep discounts from manufacturers or other retailers who overstocked or cancelled orders. They are able to offer these products at a lower price to customers because they do not incur the same costs as other retailers, such as advertising allowances or markdown adjustments.

Question 2

If you are a marketer for a manufacturer,and the marketing mix for your product focuses on very specific market segments,you'd like to sell your product through

Accepted Answer

Since the marketing mix is focused on specific market segments, it is best to sell the product through specialty stores. These stores are designed to cater to a specific audience or niche and are more likely to attract the target market for the product. Department stores, category specialist stores, extreme value retailers, and convenience stores may not have the same level of specialization or focus on the specific market segments the product is meant for.

Question 3

__________ offer an inconsistent assortment of brand-name merchandise at low prices.

Accepted Answer

Off-price retailers offer a variety of brand-name merchandise at low prices, but the assortment may be inconsistent and unpredictable. Department stores offer a mix of merchandise at a range of price points, but the selection is typically more consistent and may include both private label and branded items. Specialty stores focus on a specific category or niche, such as apparel or beauty, and offer a curated selection of merchandise. Category killers specialize in one category, such as home improvement or electronics, and offer a deep selection of products within that category. Full-line discount stores offer a broad assortment of merchandise at low prices, but the selection may not include as many branded items as off-price retailers.

Question 4

Compared to conventional supermarkets,warehouse clubs have

Accepted Answer

Warehouse clubs typically have lower levels of service compared to conventional supermarkets.

Question 5

__________ are combating competitive pressures by increasing the amount of exclusive and private label merchandise,strengthening customer loyalty programs,and expanding their online presence.

Accepted Answer

Department stores are combating competitive pressures by increasing the amount of exclusive and private label merchandise, strengthening customer loyalty programs, and expanding their online presence.

Question 6

Of the following,the best example of a category killer is

Accepted Answer

A category killer is a retailer that specializes in a particular product category and dominates that category by offering a wide variety of products, low prices, and excellent customer service. Staples is the best example of a category killer as it specializes in office products and services, offers a wide range of products at lower prices, and provides excellent customer service. Staples has a significant market share in the office supply industry, which makes it challenging for its competitors to keep up with their vast selection and low pricing strategy.

Question 7

__________ offer a limited assortment of general merchandise at very low prices and are often found in lower-rent locations.

Accepted Answer

Extreme value retailers offer a limited assortment of general merchandise at very low prices and are often found in lower-rent locations.

Question 8

Kohl's,JCPenney,and Bloomingdales are examples of

Accepted Answer

Kohl's, JCPenney, and Bloomingdales are all examples of department stores, which typically sell a wide variety of products across multiple categories and price points. Department stores often have their own private label brands and offer a range of services, such as in-store styling and personal shopping.

Question 9

Supercenters have become the fastest growing retail category by combining broad assortments of groceries and general merchandise products.__________ dominates this category with the vast majority of supercenters in the United States.

Accepted Answer

The statement mentions that one company dominates the supercenter category in the United States, and Walmart is known for its large number of supercenter stores offering a wide range of groceries and general merchandise products.

Question 10

Retailers that offer a broad variety of merchandise,limited services and low prices are known as

Accepted Answer

Full-line discount stores usually offer a wide range of products at low prices and have limited services. Convenience stores are small retail outlets that primarily sell everyday items and have limited product choices. Home improvement stores and category specialists typically offer a narrower range of merchandise but may offer more specialized services. Department stores offer a wide range of products but are generally not known for low prices.

Question 11

If you're a manufacturer,and you want to showcase your product in a store that has a narrow but deep selection of merchandise and where sales associates can assist customers with their selections,you'd likely choose

Accepted Answer

A specialty store typically carries a narrow but deep selection of merchandise and offers personalized assistance to customers. This type of store would be a good fit for a manufacturer looking to showcase their product and benefit from the expertise of sales associates to help customers with their selections. Category specialists are also an option, but they tend to be more focused on a particular product category rather than a specific brand or manufacturer. Department stores and extreme value retailers may not have the same level of focus on a specific product or brand, while warehouse clubs may prioritize bulk sales over showcasing individual items.

Question 12

Paul's family has owned and operated a small chain of conventional supermarkets for many years.Competition from a variety of other kinds of retailers has adversely affected the business.To address the new competitive reality,Paul wants to apply what he recently learned as a marketing major and he has recommended that his family's business should

Accepted Answer

Emphasizing fresh, locally sourced perishables can differentiate the business from other retailers and appeal to customers seeking high-quality and locally produced products. This strategy can also align with current trends towards sustainable and healthy eating habits. Targeting the broadest possible customer base may dilute the business's unique selling proposition, while eliminating customer frills and offering fewer private label brands can reduce customer loyalty and lower profit margins. Offering more national brand packaged goods and few perishables may not effectively address the competitive reality and could lead to decreased differentiation and profitability.

Question 13

As a type of retailer,category specialists are fierce competitors using

Accepted Answer

Category specialists focus on offering a complete assortment in a specific category at low prices. This allows them to differentiate themselves from other retailers and become a go-to destination for customers looking to purchase products in that category.

Question 14

If you walk into a __________,you will likely find a broad variety of merchandise,deep assortment,and customer service,with everything divided into what appears to be a collection of specialty shops.

Accepted Answer

A department store typically offers a wide range of merchandise across multiple categories, with each department operated as a separate section or "shop" within the store. They often feature high-quality customer service and a range of price points, making them a popular choice for shoppers seeking a variety of options in one place.

Question 15

If a food manufacturer had a full range of products,in a number of different container sizes,which kind of store would the company probably NOT choose as a retailing partner?

Accepted Answer

Convenience stores typically have limited space and therefore may not have room to carry a full range of products in different container sizes.

Question 16

__________ are combating competitive pressures by offering fresh food and healthy fast food,tailoring assortments to local markets,opening locations closer to where consumers work and shop,and adding new services.

Accepted Answer

The description given in the question best fits the strategies adopted by convenience stores, which have been facing intense competition from other types of retailers. Convenience stores are offering ready-to-eat fresh food items and healthy alternatives, stocking products that are popular in the local area, and adding new services such as parcel pickup/dropoff or bill payment facilities.

Question 17

__________ reduce costs and maintain low prices by buying opportunistically from manufacturers with excess inventory,offering limited assortments of household goods,groceries,as well as health and beauty aids.

Accepted Answer

Extreme value retailers reduce costs by buying opportunistically from manufacturers with excess inventory and offering limited assortments of household goods, groceries, as well as health and beauty aids. Category killers, specialty stores, factory outlets, and convenience stores do not specifically follow this strategy.

Question 18

Which of the following represents the BEST reason a manufacturer of high-end products might consider selling products in a warehouse club?

Accepted Answer

The answer of Which of the following represents the BEST...

Question 19

Brian,an industrial equipment sales rep,purchases a quick snack to eat on the way to work.He buys lunch while on the road visiting customers,and grabs bread and milk on the way home.Brian probably does the majority of this shopping at a

Accepted Answer

Convenience stores are small retail outlets that sell everyday items such as snacks, beverages, and basic groceries, making them ideal for quick purchases like snacks, lunch, and basic groceries such as bread and milk.

Question 20

__________ are likely to target low-income consumers who demand national brands,but cannot afford to buy large-sized packages.

Accepted Answer

Extreme value retailers, also known as dollar stores, primarily target low-income consumers who demand national brands but cannot afford to buy large-sized packages. These stores typically offer smaller packages of national brands at a lower cost, making them popular destinations for budget-conscious shoppers.

Quiz 17: Retailing and Multichannel Marketing