Deck 13: Retailing and Wholesaling

Question 1

Home Depot and PetSmart are examples of ________.

A) factory outlets
B) warehouse clubs
C) superstores
D) off-price retailers
E) category killers

Answer 1

E

Question 2

Specialty stores carry ________ with ________ within them.

A) only convenience products; shallow assortments
B) narrow product lines; deep assortments
C) narrow product lines; shallow assortments
D) wide product lines; shallow assortments
E) wide product lines; deep assortments

Answer 2

B

Question 3

________ are facing slow sales growth because of slower population growth, increased competition, and the rapid growth of out-of-home eating.

A) Warehouse clubs
B) Off-price retailers
C) Discount stores
D) Supermarkets
E) Factory outlets

Answer 3

D

Question 4

What are pop-up stores? Provide an example to illustrate your answer.

Question 5

Which type of store carries a deep assortment of a particular product line, has knowledgeable staff, and can be viewed as a giant specialty store?

A) category killer
B) convenience store
C) factory outlet
D) warehouse club
E) off-price retailer

Question 6

Which type of retailer usually carries more specialty goods at high prices and is more likely to provide customers with assistance in every phase of the shopping process?

A) self-service retailer
B) limited-service retailer
C) full-service retailer
D) independent retailer
E) off-price retailer

Question 7

Today, ________ are flourishing due to the increased use of market segmentation and market targeting.

A) chain stores
B) specialty stores
C) superstores
D) discount stores
E) off-price stores

Question 8

________ includes all the activities involved in selling products or services directly to final consumers for their personal, nonbusiness use.

A) Franchising
B) Retailing
C) Brokering
D) Wholesaling
E) Disintermediation

Question 9

Which of the following is the most frequently visited type of retail store?

A) convenience store
B) department store
C) supermarket
D) superstore
E) off-price retailer

Question 10

Which of the following would be considered a service retailer?

A) factory outlets
B) supermarkets
C) jewelry stores
D) restaurants
E) gas stations

Question 11

Which type of store is much larger than regular supermarkets and offers a large assortment of routinely purchased food products, nonfood items, and services?

A) off-price retailer
B) specialty store
C) factory outlet
D) superstore
E) convenience store

Question 12

________ is a type of service offered by those retailers who serve customers that are willing to perform their own "locate-compare-select" process in order to save money.

A) Limited-service
B) Self-service
C) Full-service
D) Specialty-service
E) Wholesaling

Question 13

________ sell standard merchandise at lower prices by accepting lower margins and selling higher volume.

A) Merchant wholesalers
B) Discount stores
C) Full-service retailers
D) Limited-service retailers
E) Factory outlets

Question 14

Which type of store carries a wide variety of product lines and has been squeezed in recent years between more focused and flexible specialty stores on the one hand and more efficient, lower-priced discounters on the other?

A) warehouse clubs
B) department store
C) factory outlet
D) merchant wholesaler
E) category specialist

Question 15

At Neiman Marcus, a first-class department store, customers shop for high-end products and they are assisted in every phase of the shopping process. Neiman Marcus is a ________.

A) full-service retailer
B) limited-service retailer
C) self-service retailer
D) specialty store
E) superstore

Question 16

________ are retailers that offer sales assistance because they carry more shopping goods about which customers might need information.

A) Self-service retailers
B) Full-service retailers
C) Off-price retailers
D) Limited-service retailers
E) Specialty-service retailers

Question 17

A ________ is a small store, located near a residential area that is open long hours seven days a week and carries a limited line of high-turnover goods.

A) convenience store
B) chain store
C) department store
D) supermarket
E) specialty store

Question 18

________ retailers in the United States are growing faster than product retailers.

A) Discount
B) Merchant
C) Service
D) Specialty
E) Off-price

Question 19

Which type of retailer is most likely to require its employees to focus most on assisting customers as they shop?

A) self-service retailer
B) full-service retailer
C) off-price retailer
D) limited-service retailer
E) convenience retailer

Question 20

________ involves using in-store promotions and advertising to extend brand equity to "the last mile" and encourage favorable point-of-purchase decisions.

A) Differentiation
B) Shopper marketing
C) Social media marketing
D) Retailer marketing
E) Segmentation

Question 21

GameStop sells only video games and systems, offering a narrow product line with a deep assortment within that line. GameStop is a(n) ________.

A) department store
B) convenience store
C) category killer
D) specialty store
E) off-price retailer

Question 22

Which of the following is an off-price retailer that sells a limited selection of brand-name grocery items, appliances, clothing, and other goods at deep discounts to members who pay annual membership fees?

A) warehouse club
B) service retailer
C) convenience store
D) hypermarket
E) superstore

Question 23

Refer to the scenario below to answer the following question(s).
In the 1970s, Shipshewana was only a small town with a hardware store, a grain mill, a shoe store, a small restaurant, and a grocery store. Over the next two decades, the small town transformed into an international tourist attraction, attracting thousands of tourists who were intrigued by the lifestyle of Shipshewana's largest population-the Amish.
Ben and Mary Miller, having grown up within the Amish faith, decided to capitalize on their town's popularity and their woodworking skills. Their shop, Indiana Wood, began with a small display of handmade hickory rocking chairs, Ben Miller's specialty. But within a few months, the display at Indiana Wood included picnic tables, flower boxes, and small handmade novelty items. No other shop offers the same variety.
Mary Miller decorated the shop's display room with authentic Amish décor and eventually hired three Amish friends to sew and embroider napkins and other textiles as customers had requested such items. In addition, two women from the Amish community sought permission from the Millers to display home-baked pastries and jellies on Tuesdays and Wednesdays, when Shipshewana attracts swarms of visitors to its flea market on the south edge of town. The Millers also hired four more people to help customers throughout the purchasing process and to provide the required product-related information to the customers.
"Shipshewana is full of specialty shops," Mary Miller stated. "People don't come here to buy things made in China or Taiwan. They want real, Amish-made goods."
Indiana Wood can be best classified as a(n) ________.

A) full-service retailer
B) industrial distributor
C) self-service retailer
D) warehouse club
E) limited-service retailer

Question 24

Independent Grocers Alliance, Do-It Best, and Western Auto are examples of ________.

A) franchise organizations
B) warehouse clubs
C) voluntary chains
D) category killers
E) wholesale clubs

Question 25

Which of the following is NOT a type of off-price retailer?

A) independent
B) factory outlet
C) warehouse club
D) category killer
E) wholesale club

Question 26

Shopper marketing involves focusing the entire marketing process-from product and brand development to logistics, promotion, and merchandising-toward turning shoppers into buyers at the point of sale.

Question 27

Stop-N-Go , 7-Eleven, and Circle K are examples of ________.

A) department stores
B) convenience stores
C) category killers
D) specialty stores
E) supermarkets

Question 28

________ are two or more outlets that are commonly owned and controlled.

A) Corporate chains
B) Convenience stores
C) Off-price retailers
D) Independent off-price retailers
E) Power centers

Question 29

Wholesaling includes all the activities involved in selling products or services directly to final consumers for their personal, nonbusiness use.

Question 30

As a result of the great success of corporate chains, many independent stores choose to band together in either a voluntary chain or a(n) ________.

A) factory outlet
B) retailer cooperative
C) wholesale club
D) warehouse club
E) convenience cooperative

Question 31

McDonald's, Subway, and Jiffy Lube are all examples of ________.

A) voluntary chains
B) retailer cooperatives
C) franchises
D) category killers
E) power centers

Question 32

Which of the following terms best describes a large, low-cost, low-margin, high-volume, self-service store that carries a wide variety of grocery and household products?

A) convenience store
B) supermarket
C) specialty store
D) warehouse club
E) factory outlet

Question 33

Overstock.com, a Web seller that buys furniture, clothing, electronics, and more from a variety of producers at less-than-regular wholesale prices and then charges customers less than retail, is a(n) ________.

A) specialty store
B) off-price retailer
C) factory outlet
D) wholesale club
E) category killer

Question 34

Which of the following statements best represents a contractual association between a manufacturer, wholesaler, or service organization and independent businesspeople who buy the right to own and operate one or more units in the system represented by the contract?

A) corporate chain
B) franchise
C) voluntary chain
D) retailer cooperative
E) warehouse club

Question 35

A ________ is a wholesaler-sponsored group of independent retailers that engages in group buying and common merchandising.

A) voluntary chain
B) retailer cooperative
C) franchise
D) wholesale club
E) warehouse club

Question 36

The early ________ cut expenses by offering few services and operating in warehouse-like facilities in low-rent, heavily traveled districts.

A) department stores
B) hypermarkets
C) discount stores
D) supermarkets
E) full-service retailers

Question 37

________ are manufacturer-owned and operated stores that offer prices as low as 50 percent below retail on a wide range of mostly surplus, discounted, or irregular items.

A) Category killers
B) Factory outlets
C) Specialty stores
D) Superstores
E) Power centers

Question 38

Refer to the scenario below to answer the following question(s).
In the 1970s, Shipshewana was only a small town with a hardware store, a grain mill, a shoe store, a small restaurant, and a grocery store. Over the next two decades, the small town transformed into an international tourist attraction, attracting thousands of tourists who were intrigued by the lifestyle of Shipshewana's largest population-the Amish.
Ben and Mary Miller, having grown up within the Amish faith, decided to capitalize on their town's popularity and their woodworking skills. Their shop, Indiana Wood, began with a small display of handmade hickory rocking chairs, Ben Miller's specialty. But within a few months, the display at Indiana Wood included picnic tables, flower boxes, and small handmade novelty items. No other shop offers the same variety.
Mary Miller decorated the shop's display room with authentic Amish décor and eventually hired three Amish friends to sew and embroider napkins and other textiles as customers had requested such items. In addition, two women from the Amish community sought permission from the Millers to display home-baked pastries and jellies on Tuesdays and Wednesdays, when Shipshewana attracts swarms of visitors to its flea market on the south edge of town. The Millers also hired four more people to help customers throughout the purchasing process and to provide the required product-related information to the customers.
"Shipshewana is full of specialty shops," Mary Miller stated. "People don't come here to buy things made in China or Taiwan. They want real, Amish-made goods."
Retailers can also be classified by the length and breadth of their product assortments. In terms of product line, what kind of retailer is Indiana Wood?

A) supermarket
B) specialty store
C) category killer
D) department store
E) convenience store

Question 39

Sears, Target, and Kroger are examples of ________.

A) voluntary chains
B) retailer cooperatives
C) corporate chains
D) franchise organizations
E) warehouse clubs

Question 40

________ have filled the ultra low-price, high-volume gap by buying at less-than-regular wholesale prices and charging consumers less than retail.

A) Off-price retailers
B) Specialty stores
C) Convenience stores
D) Chain stores
E) Supercenters

Question 41

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

Question 42

Superstores are much larger than regular supermarkets and offer a large assortment of routinely purchased food products, nonfood items, and services.

Question 43

Supermarkets sell a limited selection of goods at deep discounts to consumers who pay membership fees.

Question 44

Supermarkets are located near residential areas and are open long hours, seven days a week. They carry a limited line of high-turnover goods.

Question 45

How have department stores responded to increased competition by specialty stores and lower-priced discounters?

Question 46

Corporate chains are two or more outlets that are commonly owned and controlled.

Question 47

What is a category killer? Provide an example and a description of a category killer.

Question 48

Compare and contrast specialty stores and convenience stores.

Question 49

Retail stores can be classified in terms of several characteristics. Name four of them.

Question 50

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

Question 51

Off-price retailers pay regular wholesale prices for their merchandise but maintain low prices by accepting lower margins and selling higher volume.

Question 52

Category killers are giant specialty stores that carry a very deep assortment of a particular line.

Question 53

Independent off-price retailers either are independently owned and run or are divisions of larger retail corporations.

Question 54

A discount store buys at less-than-regular wholesale prices and charges consumers less than retail.

Question 55

Full-service stores usually carry more specialty goods for which customers need or want assistance or advice.

Question 56

In a retailer cooperative, independent retailers band together to set up a jointly owned, central wholesale operation and conduct joint merchandising and promotion efforts.

Question 57

Self-service retailers serve customers who are willing to perform their own locate-compare-select process to save time or money.

Question 58

In recent years, convenience stores have redesigned their stores to closely focus on serving their primary target market made up of young, blue-collar men.

Question 59

A voluntary chain is a wholesaler-sponsored group of independent retailers that engages in group buying and common merchandising.

Question 60

Department stores carry narrow product lines with deep assortments within those lines.

Question 61

In-store demonstrations, displays, sales, and loyalty programs are examples of ________.

A) direct marketing
B) sales promotion
C) public relations
D) personal selling
E) affinity marketing

Question 62

A ________ contains between 15 and 50 retail stores, including a department or variety store, a supermarket, specialty stores, professional offices, and sometimes a bank.

A) community shopping center
B) neighborhood shopping center
C) strip mall
D) regional shopping center
E) power center

Question 63

Although many retail stores are independently owned, others band together under some form of corporate or contractual organization. Describe the four kinds of corporate or contractual organizations.

Question 64

In recent years, service differentiation among retailers has ________.

A) increased at a steady rate
B) decreased
C) stayed the same
D) increased exponentially
E) tripled

Question 65

What are the different types of off-price retailers?

Question 66

Describe the differences between chain stores and franchises.

Question 67

Describe the different types of off-price retailers. Provide examples of each type.

Question 68

How can discount stores sell merchandise at lower prices?

Question 69

A ________ is a group of retail businesses built on a site that is planned, developed, owned, and managed as a unit.

A) warehouse club
B) franchise
C) shopping center
D) supermarket
E) hypermarket

Question 70

Which of the following is most likely gained by stores that cluster together?

A) decreased competition
B) increased customer pulling power
C) compliance with franchise agreements
D) creation of retailer cooperatives
E) standardization of the service mix

Question 71

Identify and describe the different types of retailers, based on their product lines. Provide an example of each type of retailer.

Question 72

________ were the main form of retail clusters until the 1950s.

A) Strip malls
B) Discount stores
C) Independent off-price retailers
D) Central business districts
E) Regional shopping malls

Question 73

How does a retailer cooperative function?

Question 74

Press conferences, speeches, store openings, special events, newsletters, and store magazines are examples of ________ activities used by retailers to promote themselves.

A) public relations
B) sales promotions
C) personal selling
D) affinity marketing
E) social marketing

Question 75

Describe the levels of service that retailers can offer. Provide an example of each type of retailer.

Question 76

A ________ generally contains between 5 and 15 stores. It is close and convenient for consumers, usually contains a supermarket, perhaps a discount store, and several service stores such as a dry cleaner, a drugstore, and a hardware store.

A) regional shopping center
B) community shopping center
C) neighborhood shopping center
D) warehouse club
E) factory outlet

Question 77

A ________ contains from 50 to 100 stores, is like a covered mini-downtown, and attracts customers from a wide area.

A) community shopping center
B) neighborhood shopping center
C) central business district
D) regional shopping center
E) strip mall

Question 78

Daizy's is a shop that carries only plus-size clothing. According to this information, Daizy's differentiates itself from its competitors based on ________.

A) service mix
B) pricing
C) product assortment
D) store atmosphere
E) distribution strategy

Question 79

An ideal price policy scenario for retailers would be to achieve ________ while charging ________.

A) low volume; high markups
B) low volume; low markups
C) high volume; high markups
D) high volume; low markups
E) high volume; zero markups

Question 80

A large retailer of home improvement and construction products offers "how-to" classes for do-it-yourselfers, featuring instructions on how to complete home improvement projects using products sold at its stores. This is an example of how the retailer has differentiated itself through its ________.

A) product assortment
B) services mix
C) segmentation
D) atmosphere
E) pricing