Deck 14: Retailers, Wholesalers, and Their Strategy Planning

Question 1

In a franchise operation,the franchisor develops a good marketing strategy,and the retail franchise holders carry out the strategy in their own units.

Answer 1

True
Explanation: In a franchise operation, the franchisor develops a good marketing strategy, and the retail franchise holders carry out the strategy in their own units.

Question 2

A consumer's choice of a retail store appears to be based almost entirely on economic needs.

Answer 2

False
Explanation: A consumer's choice of a retail store is based on his/her economic, social, and emotional needs.

Question 3

It's oversimplified to classify retailers and their strategies on the basis of a single characteristic-such as sales volume,services,product assortment,etc.

Answer 3

True
Explanation: Due to many variations, it's oversimplified to classify retailers and their strategies on the basis of a single characteristic such as merchandise, services, sales volume etc.

Question 4

The marketing strategies for the two shoe retailers Payless and Zappos are very different but both are successful.

Question 5

Most single-line and limited-line stores apply the retailing philosophy of buying low and selling high.

Question 6

Franchising now accounts for about a third of all retail sales.

Question 7

Franchise holders account for about a half of all retail sales.

Question 8

Retailers and their strategies can easily be classified based on the type of merchandise they sell.

Question 9

Internet retailers don't need to develop whole marketing strategies due to their self-service nature.

Question 10

The majority of all retail stores in the U.S.have annual average sales of less than $1 million.

Question 11

The marketing strategies for the two shoe retailers Payless and Zappos are very different,and Zappos' strategy is successful,while Payless' strategy is not.

Question 12

A consumer's choice of a retail store appears to be based almost entirely on emotional needs-economic needs have almost no influence.

Question 13

In the U.S.,about three-fourths of new retailing ventures fail during the first year.

Question 14

In most countries,small limited-line retailers still account for the majority of all retailers.

Question 15

Almost half of all retail sales are made by the largest stores-those with sales of over $5 million a year.

Question 16

Most "conventional" retailers are single-line or limited-line stores that have very low expenses relative to sales.

Question 17

Retailing includes all of the activities involved in reselling goods to final consumers,but it does not include the sale of services to final consumers since services must be produced in the presence of the consumer.

Question 18

Single-line stores that used to carry anything they could sell in reasonable volume were the main retailers in the United States.

Question 19

Less than 15 percent of retail stores in the U.S.have annual average sales of $5 million or more.

Question 20

The growth of cooperative chains of retail stores is due to the desire of small retailers to achieve some of the benefits of large-scale corporate chains.

Question 21

"Supercenters" are very large stores that specialize in selling a big variety of infrequently purchased products that would otherwise be hard for consumers to find.

Question 22

Warehouse clubs started the move to mass-merchandising.

Question 23

Mass-merchandisers have become the primary place to shop for many frequently purchased consumer products.

Question 24

Large sales volume and efficient operation are usually very important for supermarkets,since net profits usually run 1-2 percent of sales or less.

Question 25

Department stores keep growing in numbers,sales,and market share.

Question 26

Specialty shops are limited-line stores; they aim at a carefully defined target market with a unique product assortment,good service,and knowledgeable salespeople.

Question 27

Retailers who follow a policy of "buy low and sell high" are practicing the "mass-merchandising concept."

Question 28

Mass-merchandisers emphasize "hard goods" while discount houses emphasize "soft goods."

Question 29

Today,discount houses are found in low-rent facilities,have poor images with customers,and offer few services and no guarantees.

Question 30

Specialty shops will continue to be a part of the retailing scene as long as customers have varied tastes and the money to satisfy them.

Question 31

A "supercenter" carries all the goods and services that a consumer might routinely purchase.

Question 32

A consumer who went to shop at a "supercenter" would probably expect not only to be able to buy food and health care products,but also to leave dry-cleaning or have shoes repaired.

Question 33

The mass-merchandising concept means that retailers can succeed by selling a large volume of merchandise to a target market at low prices.

Question 34

Department stores are stores that usually try to serve customers seeking a variety of convenience products.

Question 35

Walmart,one of the largest mass-merchandisers in the U.S.,handles 30 percent or more of the total national sales for whole categories of products.

Question 36

Mass-merchandisers have proved to be effective competitors in taking away department store customers.

Question 37

Department stores are larger stores that are organized into many separate departments and offer many product lines.

Question 38

A discount house is trying to meet all the customer's routine needs at a low price.

Question 39

Discount stores offer "soft goods" at substantial price cuts to customers.

Question 40

The basic idea for supermarkets developed in the U.S.in the 1960s,when consumers started to move from the cities to the suburbs.

Question 41

The major advantage of vending machine retailing is that the costs are low relative to the volume they sell.

Question 42

In 2015,online sales in the United States topped $1 trillion for the first time.

Question 43

Door-to-door selling now accounts for less than 1 percent of retail sales in the United States.

Question 44

To overcome the limitation of not being able to physically inspect a product before purchasing online,many online retailers now provide photos and videos that demonstrate the product.

Question 45

Convenience food stores now compete with supermarkets,gas stations,and fast-food outlets.

Question 46

One advantage physical stores have over online stores is simplified price and product feature comparison.

Question 47

In addition to food,warehouse clubs emphasize heterogeneous shopping goods.

Question 48

Electronic shopping,which puts catalogs on cable TV or Internet websites,has not yet succeeded.

Question 49

When RedBox rents DVD movies from vending machines at McDonald's,it is acting as a channel captain,not a retailer.

Question 50

In addition to food,warehouse clubs carry homogeneous shopping goods.

Question 51

Home shopping methods-like cable TV shopping channels and catalogs-now use a multichannel approach by adding a website.

Question 52

Some customers find online shopping more convenient than shopping in a physical store.

Question 53

In 2015,online sales accounted for for about 25 percent of all retail sales.

Question 54

Internationally,door-to-door selling is growing in popularity and,in the U.S.,it accounts for more than 15 percent of all retail sales.

Question 55

Automatic vending accounts for 15 percent of total U.S.retail sales.

Question 56

Because of their higher margins,faster turnover,and narrower assortments,convenience food stores have the potential to be more profitable than supermarkets.

Question 57

Category killers is another name for single-line mass-merchandisers.

Question 58

The sale of candy from a vending machine at a bus station is not considered retailing since no store is involved.

Question 59

One advantage that online retailers have compared to physical stores is offering a wide assortment.

Question 60

Today,more than half of all computer hardware and software and a quarter of all books are sold online.

Question 61

The development of department stores and supermarkets is explained by the "wheel of retailing" theory.

Question 62

Omnichannel is a multichannel selling approach where a single retailer provides a seamless customer shopping experience from desktop computer,mobile device,telephone or brick and mortar store.

Question 63

The "wheel of retailing" theory says that new retailers enter the market as high-status,high-margin,high-price operators and then evolve into discount stores as competition becomes more intense.

Question 64

According to the U.S.Census Bureau,wholesaling is defined as the activities of firms that sell to retailers,but do not sell in large amounts to final consumers,manufacturers,or other institutional users.

Question 65

Application of the product life cycle concept to retailing suggests that all types of retailers are in early market growth due to continually increasing family income.

Question 66

The "wheel of retailing" theory fails to explain some major retailing developments,such as vending machines and convenience food stores,which did not enter the market with a low-price emphasis.

Question 67

The development of vending machines and convenience food stores is not explained by the "wheel of retailing" theory.

Question 68

"Scrambled merchandising" refers to the practice of conventional retailers handling many products within a limited-line,even though many of these products have to be sold at a low profit.

Question 69

Scrambled merchandising is carrying any product lines a store thinks it can sell profitably.

Question 70

Progressive wholesalers are becoming more concerned with their customers and with adding value in their channels.

Question 71

Retailers who carry any product line that will sell profitably are practicing "scrambled merchandising."

Question 72

A customer goes to the Ace Hardware web site and finds out that there are three Philips LED light bulbs he wants to purchase in stock at their local store.The customer then goes to the store and finds those light bulbs in stock.Ace Hardware is practicing an omnichannel approach.

Question 73

A customer who goes to Amazon.com to look at different types of cycling jackets,but then purchases a jacket at her local bike shop is a multichannel shopper.

Question 74

The supercenter retailing format began in the U.S.and then was exported to other countries.

Question 75

In-store shopping varies a lot from country to country,but online shopping does not.

Question 76

Wholesalers are more likely to dominate distribution channels in more advanced economies than in less-developed ones.

Question 77

Webrooming refers to gathering information for a purchase in an online store and then purchasing in a brick-and-mortar store.

Question 78

Scrambled merchandising means mixing product lines for higher profits.

Question 79

Consumers in less-developed nations have the income to support mass distribution.

Question 80

The product life cycle concept applies to retailers as well as products.