Question 1

Many consumers shop for reasons other than just purchasing needed products.

Accepted Answer

Many consumers also shop for entertainment, socialization, stress relief, and other psychological reasons.

Question 2

Macy's is a retail store that focuses on fashion-oriented merchandise,backed by a complete array of customer services.It can be considered as a self-service store.

Accepted Answer

Macy's is not a self-service store as it offers a complete array of customer services, such as personal shoppers, alteration services, and a loyalty program.

Question 3

Rack jobbers are full-function merchant wholesalers that market specialized lines of merchandise to retailers.

Accepted Answer

Rack jobbers are indeed full-function merchant wholesalers that specialize in marketing specific types of merchandise to retailers. They typically own and maintain their own display racks within a retail store and are responsible for maintaining inventory, setting prices, and restocking items.

Question 4

Wholesaling intermediaries create utility in the form of time,place,and ownership.

Accepted Answer

Wholesaling intermediaries help in creating utility by reducing the time taken in the distribution process, by bringing together products from different places to a central location, and by taking ownership of the products in the distribution chain.

Question 5

The pricing strategies seldom influence consumer perceptions of a retailer.

Accepted Answer

Pricing strategies can significantly influence consumer perceptions of a retailer. For example, excessive markdowns or sales may make consumers perceive a retailer as cheap or of lower quality. Additionally, high prices may create the perception of exclusivity and luxury.

Question 6

The term "atmospherics" exclusively refers to the interior décor of a store.

Accepted Answer

The term "atmospherics" refers to various elements that create an atmosphere in a store, including decor, lighting, music, scents, and other sensory aspects. It is not limited to interior decor alone.

Question 7

Marc is a wholesaling intermediary who brings buyers and sellers together,sometimes representing buyers and sometimes representing sellers,but never both in the same transaction.This information indicates that Marc is a commission merchant.

Accepted Answer

A commission merchant typically takes possession of goods and sells them on behalf of the seller, whereas Marc's role as described is more akin to that of a broker, who facilitates transactions without taking possession of goods.

Question 8

A retailer starts to define its marketing strategy by selecting its inventory management strategy.

Accepted Answer

A marketing strategy typically focuses on promoting and selling products, while an inventory management strategy deals with how products are stocked and supplied. They are related but distinct aspects of a business.

Question 9

Most of the specialty stores are chain outlets with large-scale operations.

Accepted Answer

The answer of Most of the specialty stores are chain...

Question 10

Vending machines are classified as a form of automatic merchandising.

Accepted Answer

Vending machines are automated devices that allow customers to purchase items without the need for a salesperson. Therefore, they are considered a form of automatic merchandising.

Question 11

A full-service retailer usually sells convenience products that people can purchase without any assistance.

Accepted Answer

A full-service retailer typically offers a wide range of products and emphasizes customer service, providing assistance and advice to customers, rather than focusing solely on convenience products that can be purchased without help.

Question 12

Specialty retailers typically attract customers by offering the products at the lowest possible prices.

Accepted Answer

Specialty retailers often specialize in offering unique or high-quality products that may be priced higher than competitors. They may rely on their product expertise and customer service to justify prices rather than solely relying on low prices to attract customers.

Question 13

A manufacturer's representative can work only for a single manufacturer.

Accepted Answer

A manufacturer's representative can work for multiple manufacturers, representing their products to potential clients or customers.

Question 14

Category killers are invulnerable to competition because of the huge selections they offer in different product lines.

Accepted Answer

Category killers, while offering a wide selection, can still face competition from online retailers, niche stores, and changes in consumer preferences.

Question 15

Limited-line retailers cater to the needs of people who want to select from complete lines in purchasing particular products.

Accepted Answer

Limited-line retailers specialize in a narrow range of products, offering a comprehensive selection within that category to meet specific customer needs.

Question 16

O&S Ticket Brokers,a Broadway theater ticket agency,sells tickets in bulk to corporate clients.It would be considered a wholesaling intermediary even though the firm does not take title to the tickets it sells.

Accepted Answer

The key factor in determining whether a firm is a wholesaling intermediary is its role in facilitating the transfer of goods or services from manufacturers or producers to customers. O&S Ticket Brokers serves as an intermediary by purchasing tickets in bulk from Broadway theaters and reselling them to corporate clients, even though it may not take title to the tickets.

Question 17

A retailer's merchandising strategy guides decisions regarding the items it will offer.

Accepted Answer

A retailer's merchandising strategy plays a crucial role in deciding which items it will offer for sale. This strategy includes decisions such as what products to sell, how much inventory to carry, how to display products, and how to price them.

Question 18

The profit potential of a market area is an important factor influencing retail stores' decisions regarding their target markets.​

Accepted Answer

The profit potential of a market area is a key consideration for retail stores to determine their targeted market to ensure maximum profitability.

Question 19

Nordstrom carefully combines defined product lines and services in an attempt to convince consumers to expend considerable effort shopping at their stores.Nordstrom can be regarded as a specialty retailer.

Accepted Answer

Nordstrom is often classified as a specialty retailer due to their focus on higher-end clothing and their emphasis on customer service. They carefully curate their product lines and offer services such as alterations and personal stylists to attract and retain customers.

Question 20

Other things being equal,stores that offer more services charge smaller markups to cover their costs.

Accepted Answer

Stores that offer more services typically charge higher markups to cover the additional costs associated with providing those services.

Quiz 15: Retailers, wholesalers, and Direct Marketers