Deck 11: Retailing and Wholesaling

Question 1

Office Solutions is a large retailer that specializes in office products and services. Their offerings include a wide and deep assortment of computers, desk furniture, printers, office supplies, stationery, and printing. Office Solutions is most likely an example of a ________.

A) convenience store
B) pop-up store
C) category killer
D) lifestyle center
E) supermarket

Answer 1

C

Question 2

Specialty stores are characterized by ________.

A) the sale of convenience and staple items
B) narrow product lines with deep assortments
C) a wide range of products and categories
D) low prices on a wide range of goods
E) routinely purchased food products and services

Answer 2

B

Question 3

Which types of stores are characterized by specialty goods for which customers need assistance and higher operating costs that are passed along to customers as higher prices?

A) self-service stores
B) convenience stores
C) full-service stores
D) discount stores
E) off-price stores

Answer 3

C

Question 4

Department stores are most likely characterized by ________.

A) narrow product lines
B) specialty goods and services
C) predatory pricing strategies
D) deep assortments of luxury brands
E) wide varieties of product lines

Question 5

Which term refers to a giant specialty store with a very deep assortment of a particular product line?

A) category killer
B) convenience store
C) factory outlet
D) department store
E) independent store

Question 6

Customers at Carat, a premium jewelry store, are encouraged to make an appointment before a visit so that a customer service representative is assigned to them. These representatives help every customer make a purchase that meets his or her needs and budget after considering numerous options. The different styles and special features of the jewelry are explained to each customer to aid the purchase decision. In this case, Carat is an example of a(n)________.

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

Question 7

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

A) Sole sourcing
B) Retailing
C) Manufacturing
D) Procurement
E) Warehousing

Question 8

Leading "big-box" stores, such as Walmart and Target, now dominate the retail scene. However, even "small-box" stores like Dollar General, are thriving in the current economic environment. All three retailers are considered ________.

A) convenience stores
B) discount stores
C) full-service retailers
D) designer shops
E) specialty stores

Question 9

Food Galore is a regional chain of supermarkets in the Midwest. The primary role of the staff is to restock shelves and operate cash registers. Customers locate, compare, and select their groceries and other sundry items. Food Galore is most likely a ________.

A) self-service retailer
B) category killer
C) full-service retailer
D) supermarket
E) pop-up store

Question 10

Which of the following statements is true of retailing?

A) All retail stores are full-service retail stores.
B) A department store has a narrow product line with a deep assortment.
C) The largest type of retail outlet is a supermarket.
D) Services like hotels, banks, airlines, restaurants, colleges, and hospitals can be retailed.
E) A feature common to all types of retail stores is the use of the everyday low pricing strategy.

Question 11

Which of the following is a type of off-price retailer?

A) specialty store
B) full-service retailer
C) discount store
D) warehouse club
E) supermarket

Question 12

Which type of retailer typically carries deep product assortments of narrow product lines?

A) self-service retailers
B) specialty stores
C) warehouse clubs
D) discount stores
E) factory outlets

Question 13

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

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

Question 14

________ have filled the ultralow-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) Designer shops
E) Full-service retailers

Question 15

________ builds around what P&G calls the "First Moment of Truth" - the critical three to seven seconds that a shopper considers a product on a store shelf.

A) Internal marketing
B) Sole sourcing
C) Warehousing
D) Test marketing
E) Shopper marketing

Question 16

The American Tie Company, a necktie retailer, offers a deep assortment of men's neckties. The American Tie Company is best described as a(n)________.

A) department store
B) supermarket
C) specialty store
D) discount store
E) off-price retailer

Question 17

Jones & Company, a major retail chain across the United States, offers a wide range of consumer goods such as clothing, furniture, home appliances, cosmetics, jewelry, and food. Jones & Company is best described as a ________.

A) supermarket
B) department store
C) specialty store
D) pop-up store
E) category killer

Question 18

________ creates a seamless cross-channel buying experience that integrates in-store, online, and mobile shopping.

A) Shopper marketing
B) Omni-channel retailing
C) Test marketing
D) Online marketing
E) Consolidation marketing

Question 19

Stores that provide moderate sales assistance because they carry shopping goods about which customers need a moderate level of information are called ________ retailers.

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

Question 20

A convenience store ________.

A) markets to segments comprised mostly of white-collar workers
B) stocks narrow product lines that have wide, deep assortments
C) carries a limited line of high-turnover goods for consumer self-service
D) involves high operation costs due to full-service customer assistance
E) is a multi-channel food and discount retailer that targets niche markets

Question 21

________ are off-price retailers that operate in huge facilities offering few frills but ultra-low prices and surprise deals on selected branded merchandise.

A) Warehouse clubs
B) Department stores
C) Convenience stores
D) Specialty stores
E) Superstores

Question 22

Omni-channel retailing creates a seamless cross-channel buying experience that includes in-store and online shopping but excludes mobile.

Question 23

Which contractual system is distinguished by the fact that it is normally based on some unique product or service; method of doing business; or trade name, goodwill, or patent that has been developed?

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

Question 24

The three types of off-price retailers are: independents, factory outlets, and corporate chains.

Question 25

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

A) Corporate chains
B) Factory stores
C) Specialty stores
D) Designer shops
E) Warehouse clubs

Question 26

Factory outlet malls combine manufacturers' outlets with off-price retail stores and department store clearance outlets.

Question 27

Voluntary chains are normally based on one unique product or a specific trade name.

Question 28

Mind and Body Fitness recently entered into a financial agreement that allows 25 independent business people at select locations across the country to set up establishments that offer its holistic services and programs. They include weight-management, group programming, sport-specific training, yoga, Pilates, and nutrition. Which type of contractual retail association does this represent?

A) corporate chain
B) voluntary chain
C) franchise organization
D) independent retailer
E) retailer cooperative

Question 29

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 30

Kids.com is an online retailer that buys clothing from a variety of brand name manufacturers at less-than-regular wholesale prices and then charges customers less than retail. Kids.com is an example of a(n)________.

A) specialty retailer
B) independent off-price retailer
C) departmental retailer
D) full-service retailer
E) category killer

Question 31

Convenience stores are the most frequently visited type of retail store.

Question 32

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

Question 33

Independent off-price retailers purchase merchandise at rates that are substantially higher than regular wholesale rates.

Question 34

A group of independent retailers that bands together to set up a jointly owned, central wholesale operation and conduct joint merchandising and promotion efforts is referred to as a ________.

A) factory outlet mall
B) retailer cooperative
C) corporate chain
D) warehouse club
E) voluntary chain

Question 35

Although manufacturers, wholesalers, and retailers do retailing, it is the primary business of retailers.

Question 36

Category killers are superstores that carry a deep assortment of a particular product line.

Question 37

Venns is a chain of department stores that has become more focused in recent years and now stocks only exclusive labels of designer home accessories. Venns has transformed itself into a chain of pop-up stores.

Question 38

Dina loves branded apparel and accessories but cannot afford to buy them too often. Fortunately, Dina lives close to an off-price retail store that is owned and operated by a famous brand. The company utilizes this store to sell its surplus, discontinued, or irregular goods at significantly lower costs. The retail store is best referred to as a ________.

A) category killer
B) factory outlet
C) specialty store
D) superstore
E) power center

Question 39

An off-price retailing operation that is owned and operated by a manufacturer and normally carries the manufacturer's surplus, discontinued, or irregular goods is called a ________.

A) category killer
B) factory outlet
C) specialty store
D) superstore
E) warehouse club

Question 40

________ now command about 45 percent of all retail sales in the United States.

A) Franchises
B) Factory outlets
C) Superstores
D) Acquisitions
E) Joint agreements

Question 41

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

A) pop-up store
B) shopping center
C) warehouse
D) category killer
E) convenience store

Question 42

What is retailing? Explain the concept of shopper marketing.

Question 43

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

Question 44

A ________ is a small open-air mall with upscale stores, convenient locations, and nonretail activities such as a playground, hotel, dining establishments, and a movie theater.

A) regional shopping center
B) lifestyle center
C) community shopping center
D) power center
E) warehouse club

Question 45

Bikers and non-bikers alike enjoy dining at the Harley Davidson Café in Las Vegas. Several Harley Davidson models are on display as well as a very large, uniquely crafted American flag. Menu items include the Easy Rider, the Choppers Cobb salad, and the Harley Hog sandwich. The Harley Davidson Café most likely uses ________.

A) everyday low pricing
B) predatory pricing
C) self-service retailing
D) experiential retailing
E) franchising

Question 46

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) warehouse club
C) superstore
D) neighborhood shopping center
E) regional shopping mall

Question 47

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 48

Describe superstores, category killers, and service retailers.

Question 49

Which of the following statements is true of shopping centers?

A) Most shopping centers function at the regional level rather than at the neighborhood level.
B) Shopping centers typically contain only those stores that target a niche market segment of high income groups.
C) Shopping centers are groups of retail businesses built on a site that is planned, developed, owned, and managed as a unit.
D) Shopping centers usually contain exclusive brands and specialty stores rather than convenience stores or department stores.
E) Shopping centers are huge superstores that offer a deep assortment of a particular product line.

Question 50

Too many retailers, even big ones, fail to clearly define their target markets and positions.

Question 51

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

Question 52

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

Question 53

Charging higher prices on an everyday basis, coupled with frequent sales and other price promotions to increase store traffic, create a low-price image, or attract customers who will buy other goods at full prices is referred to as ________ pricing.

A) category killer
B) discount
C) high-low
D) every day low
E) predatory

Question 54

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 potential investors have approached Crunch and Munch with offers to buy the company, but Crunch and Munch continues to operate through its stores. What is franchising? Why would franchising be a good contractual system for Crunch and Munch?

Question 55

The Toby's chain of first-class department stores carries a wide range of product lines, including clothing, jewelry, kitchenware, and home furnishings. Toby's typically charges higher prices on an everyday basis and then holds frequent sales and price promotions to increase store traffic. Toby's most likely uses ________.

A) self-service retailing
B) experiential retailing
C) high-low pricing
D) everyday low pricing
E) franchise retailing

Question 56

Compare and contrast specialty stores and convenience stores.

Question 57

What is most likely the first major marketing decision that a retailer must take?

A) positioning
B) targeting
C) segmentation
D) differentiation
E) promoting

Question 58

Retailers must decide on three major product variables: product assortment, services mix, and ________.

A) store location
B) store layout
C) self-service offerings
D) store atmosphere
E) store ambience

Question 59

Campbell is one of the oldest retailers in the country. While the service offered at Campbell is fairly mediocre, the retailer is famous for its surprise offerings of seconds, overstocks, and closeouts - occasionally including expensive gadgets and jewelry. Posco, a new chain of retail stores, offers products that are similar to Campbell's offerings; however, Posco is known for encouraging customers to ask questions and for providing service representatives to assist customers in the purchasing decision process. From this scenario, which of the following statements is most likely true?

A) Posco fails to differentiate itself from Campbell through the services mix.
B) Posco's product assortment helps differentiate it from Campbell.
C) Both Campbell and Posco fail to identify the needs and wants of target markets.
D) Campbell has not been able to differentiate itself on the basis of product assortment.
E) Posco better utilizes the services mix to differentiate itself from Campbell.

Question 60

Power centers are characterized by the ________.

A) lack of an anchor store
B) sale of exclusive brands only
C) provision of individual entrances to each store
D) provision for nonretail activities, such as playgrounds
E) absence of any pricing strategies for differentiation

Question 61

According to the text, today's large and progressive wholesalers have successfully reacted to rising costs by ________.

A) relocating to low-rent, low-tax areas
B) investing in information technology systems
C) eliminating the need for brokers and agents
D) increasing customer service responsibilities
E) reducing promotional and personal selling activities

Question 62

Wholesalers fall into three major groups: merchant wholesalers, brokers and agents, and megawholesalers.

Question 63

Pricing decisions of specialty stores are typically based on low markups on a high volume of products.

Question 64

Which of the following channel functions of wholesalers is demonstrated when a buyer receives quicker delivery because wholesalers are located closer than are producers?

A) buying and assortment building
B) financing
C) transportation
D) risk bearing
E) warehousing

Question 65

Casey's is a large supermarket that practices everyday low pricing. Therefore, consumers should expect few discounts or sales if shopping at Casey's regularly.

Question 66

The retailer's product assortment should be distinguishable and also match target shoppers' expectations.

Question 67

Wayne Wholesaling fulfills many channel functions for its customers. The company mainly focuses on helping retailers to train their salespeople, improve store layouts, and set up inventory control systems. Based on this description, which channel function is provided by Wayne Wholesaling?

A) buying and assortment building
B) selling and promoting
C) risk bearing services
D) market information services
E) management services and advice

Question 68

The rise of megaretailers has shifted the balance of power between retailers and producers. Since megaretailers have access to numerous consumers, they have significant power when dealing with manufacturers.

Question 69

Carleese, a leading fashion brand, sets up small temporary boutiques across numerous locations during its year-end sale, promoting its outdated products at half the price. These temporary boutiques are referred to as ________.

A) power centers
B) franchises
C) shopping centers
D) pop-up stores
E) category killers

Question 70

Grace and her fiancé visit several furniture stores in and around their hometown of Milwaukee. They use their smartphones to capture information about manufacturers and pricing, and ultimately decide to purchase their favorite items online. This is referred to as ________.

A) warehousing
B) wholesaling
C) retailing
D) franchising
E) showrooming

Question 71

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's private-label brands are bringing in large revenues, what strategy could Posco Retail use to differentiate itself while matching target shoppers' expectations?

Question 72

Amex Retail, the country's largest and oldest retail chain, was recently recognized as one of the most influential companies in the United States. The company aims to capitalize on this opportunity by implementing major marketing activities to capture the attention of consumers, politicians, and environmentalists. The company was one of the first to do away with plastic bags, and the public relations division is contemplating the adoption of additional green retailing practices. Would this move reflect sound business tactics? What other measures can Amex Retail take in this direction?

Question 73

Describe the promotion tools used by retailers.

Question 74

Differentiate between power centers and lifestyle centers.

Question 75

Retail convergence most likely leads to ________.

A) reduced differentiation
B) reduced competition
C) increased sales
D) increased profit margins
E) reduced advertising costs

Question 76

Which of the following is an impact of the Great Recession on retailing trends?

A) economic shift toward higher prices
B) lower costs for retailers
C) tighter consumer spending patterns
D) longer retail life cycles
E) prohibition on new retail forms

Question 77

Electronics Storage is a wholesaler that holds inventories, thereby reducing carrying costs and risks for both suppliers and customers. Which channel function does Electronics Storage primarily provide?

A) showrooming
B) assortment building
C) warehousing
D) financing
E) transporting

Question 78

________ includes all the activities involved in selling goods and services to those buying them for resale or business use.

A) Wholesaling
B) Sole sourcing
C) Franchising
D) Crowdsourcing
E) Showrooming

Question 79

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

Question 80

Which wholesaler channel function is demonstrated when a wholesaler's sales force helps a manufacturer reach many small customers at a low cost?

A) bulk breaking
B) selling and promoting
C) buying and assortment building
D) warehousing
E) risk bearing