Deck 16: Retailing and Multichannel Marketing

Question 1

Many retailers and some manufacturers are exploring the use of a multichannel strategy in which they sell in more than one channel, for example, the Internet and stores.

Answer 1

True

Question 2

The only consumer advantages to shopping in a brick-and-mortar store are browsing and the ability to touch and feel the products.

Answer 2

False

Question 3

Consumer packaged goods companies such as Procter & Gamble, Pepsi, and Kraft typically seek an exclusive distribution strategy.

Answer 3

False

Question 4

Off-price retailers specialize in having a consistent line of merchandise available at discount prices.

Question 5

When retailers extend their services to the Internet and become multichannel retailers, they are able to satisfy a broader range of customers' needs and wants.

Question 6

Today, large retailers dictate to their suppliers what should be made.

Question 7

The larger and more sophisticated the channel member, the more likely that it will use supply chain intermediaries.

Question 8

Retailers who advertise that they sell at wholesale prices are wholesalers.

Question 9

Dollar General and Family Dollar are examples of full-price discount retailers.

Question 10

Supercenters-stores that combine a supermarket with a full-line discount store-are among the fastest growing food retailer formats.

Question 11

Effective multichannel operations require an integrated CRM (customer relationship management) system with a centralized customer data warehouse.

Question 12

Multichannel retailers are able to simply charge the same prices across all channels.

Question 13

Choosing the right retailing partners and knowing where target customers expect to find products are key to a manufacturer's success.

Question 14

One significant potential benefit of the Internet channel is its ability to enable retailers to provide personalized information about products and services for each customer.

Question 15

Consumers prefer to research complicated products on the Internet rather than talking directly to sales associates in a retail store.

Question 16

Convenience for the customer is seldom a factor for manufacturers when choosing a retail partner.

Question 17

Category specialists are also known as category killers.

Question 18

Manufacturers might use selective distribution by granting exclusive geographic territories to a few retailers so no other retailers in the territory can sell a particular brand.

Question 19

One of retailers' most fundamental activities is providing the right mix of merchandise and services that satisfies the needs of the target market.

Question 20

It is primarily the retailer's responsibility to make sure customers' expectations are fulfilled.

Question 21

Generally, the larger and more sophisticated the channel member, the less likely that it will

A) use supply chain intermediaries.
B) rely on marketing research.
C) use multichannel marketing.
D) use intensive distribution.
E) be concerned about competitive actions.

Question 22

John used to work for a large, well-known retailer. He left that company to work for a much smaller company, and in doing so, he discovered that the channel functions were handled very differently in the smaller firm. Looking back at his experience, he noticed that larger firms

A) perform many channel functions themselves.
B) have less control in the channel.
C) are generally less efficient.
D) spend more money wastefully.
E) use more independent salespeople.

Question 23

Which of the following is NOT one of the broad factors manufacturers must consider when establishing a strategy for getting their products into the hands of the ultimate customer?

A) choosing retail partners
B) identifying types of retailers
C) developing retail strategy
D) managing a multichannel strategy
E) lowering production costs

Question 24

Distribution intensity is commonly divided into three levels:

A) intensive, exclusive, and selective.
B) primary, secondary, and tertiary.
C) administered, vertical, and independent.
D) global, national, and local.
E) corporate, contractual, and independent.

Question 25

Retailing is the primary activity in all of the following situations EXCEPT

A) buying and eating a fast-food meal.
B) transporting pallets of Daisy brand dairy products.
C) visiting a tile store that sells at wholesale prices.
D) upgrading an airline ticket at the airport.
E) purchasing one case of paper for the office at Office Max.

Question 26

In the past, __________ dominated supply chains.

A) retailers
B) manufacturers
C) government agencies
D) wholesalers
E) distributors

Question 27

Some companies want to get their products into as many outlets as possible, understanding that the more exposure a product gets, the more it will sell. If this is consistent with the company's overall strategy, it will choose __________ distribution.

A) primary
B) independent
C) intensive
D) exclusive
E) selective

Question 28

Retailing is defined as the set of business activities that

A) focuses on a firm's core values.
B) focuses on transactions, but not relationships.
C) adds value to products and services sold to final consumers.
D) separates wholesaling from manufacturing.
E) only occurs in brick-and-mortar space.

Question 29

The key factor distinguishing retailers from other members of the supply chain is that

A) they sell to consumers, businesses, and government.
B) they use marketing to reach consumers.
C) they use advertising to generate demand.
D) they rarely engage in personal selling.
E) they sell to customers for their personal use.

Question 30

Anbinh Fashions is launching a new line of one-of-a-kind designer jewelry. Each piece is handcrafted, and production volumes will be very low. To emphasize the unique nature of this jewelry, Anbinh Fashions will probably choose _________ distribution.

A) luxury
B) selective
C) monopolistic
D) intensive
E) exclusive

Question 31

Today, retailers like Walmart, Home Depot, and Kroger dictate to their suppliers all of the following EXCEPT

A) which competitors they should collaborate with.
B) what should be made.
C) how products should be configured.
D) when products should be delivered.
E) what products should cost.

Question 32

Aaron has designed innovative accessories for hard-core bicycling enthusiasts. He knows where and how he will make them, and he needs to turn his attention to getting the products to the customers. As he chooses retail partners, which of the following is LEAST important in this process?

A) looking at the channel structure
B) determining where target customers will expect to find this product
C) considering characteristics of channel members
D) encouraging new bicycling enthusiasts
E) considering distribution intensity

Question 33

When Creative Pen Company designed a new pen that was particularly comfortable to use, it wanted to literally get the pen in the hands of as many consumers as possible. Creative Pen will probably choose __________ distribution for its new product.

A) intensive
B) exclusive
C) selective
D) collective
E) variable

Question 34

Knowing what customers expect is essential. Retailers need to know which manufacturers their customers prefer, whereas manufacturers need to know

A) whether customers are using credit cards or cash to make purchases.
B) how many employees the retailers have.
C) where their target customers expect to find their products.
D) whether the products will fill a customer's self-actualization needs.
E) whether customers will find the store atmospherics appropriate to the location.

Question 35

Natalie represents a manufacturer who makes unique, high-end hats. When making a recommendation about potential retail partners, what should be Natalie's first consideration?

A) What is the appropriate advertising strategy?
B) When will customers want this product?
C) What prices will customers be willing to pay?
D) What assortment of products will customers want?
E) How likely is it for certain retailers to carry this product?

Question 36

Heartland Plantation produces organic food products like stone-ground grits and wild rice. The company has limited production capacity and wants to carefully control where its products are sold. Heartland will likely choose __________ distribution intensity.

A) luxury
B) variable
C) monopolistic
D) intensive
E) exclusive

Question 37

Which of the following is NOT one of the typical outlets used by retailers?

A) catalogs
B) the Internet
C) business-to-business requests for proposals (RFPs)
D) brick-and-mortar stores
E) restaurants and hotels

Question 38

Today, __________ dominate supply chains.

A) large retailers
B) manufacturers
C) government agencies
D) wholesalers
E) distributors

Question 39

Wholesalers sell to all of the following EXCEPT

A) businesses.
B) manufacturers.
C) retailers.
D) consumers.
E) industrial users.

Question 40

Where does retailing fall in the supply chain?

A) the end
B) the center
C) first
D) second
E) no where

Question 41

Kohl's, JCPenney, and Bloomingdales are examples of

A) department stores.
B) off-price retailers.
C) discount stores.
D) extreme value stores.
E) category specialist stores.

Question 42

If a manufacturer had a full range of products, in a number of container sizes, which kind of store would the company be LEAST likely to choose as a retailing partner?

A) conventional supermarket
B) supercenter
C) warehouse club
D) convenience stores
E) full-line discount stores

Question 43

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

A) a category specialist.
B) a specialty store.
C) a department store.
D) an extreme value retailer.
E) a warehouse club.

Question 44

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

A) Department stores
B) Off-price retailers
C) Discount stores
D) Extreme value retailers
E) Category specialists

Question 45

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 when he stops to buy gas. Brian probably does the majority of this shopping at a

A) convenience store.
B) warehouse club.
C) conventional supermarket.
D) drugstore.
E) category specialist.

Question 46

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.

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

Question 47

__________ 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.

A) Warehouse clubs
B) Supercenters
C) Convenience stores
D) Department stores
E) Extreme value retailers

Question 48

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

A) full-line discount stores.
B) convenience stores.
C) home improvement stores.
D) category specialists.
E) department stores.

Question 49

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

A) There are no high-end shopping centers within a 100-mile radius of the warehouse club.
B) The warehouse club has a good reputation.
C) The manufacturer is trying to increase market share.
D) The manufacturer overestimated demand or has a great deal of returned merchandise from other retailers.
E) The warehouse club wants to upgrade its image.

Question 50

__________ are combating competitive pressures by increasing the amount of exclusive and private label merchandise they sell and expanding their online presence.

A) Convenience stores
B) Department stores
C) Full-line discount stores
D) Extreme value stores
E) Off-price retailers

Question 51

Compared to conventional supermarkets, warehouse clubs have

A) a broader assortment of food items.
B) a lower level of service.
C) slightly higher prices.
D) no products appealing to small businesses.
E) lower annual fees.

Question 52

Full-line discount, category specialist, and specialty stores are all types of __________ retailers.

A) food
B) general merchandise
C) price sensitive
D) limited demand
E) special appeal

Question 53

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

A) Category killers
B) Specialty stores
C) Factory outlets
D) Extreme value retailers
E) Convenience stores

Question 54

__________ distribution intensity helps a seller to maintain a particular image and control the flow of merchandise into an area.

A) Intensive
B) Endogenous
C) Selective
D) Collective
E) Variable

Question 55

If a manufacturer wasn't happy with either intensive or exclusive distribution, a logical choice, which incorporates some features from both, would be __________ distribution.

A) moderate
B) compromise
C) luxury
D) evolutionary
E) selective

Question 56

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

A) Dollar General.
B) Staples.
C) Kohl's.
D) Target.
E) Costco.

Question 57

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.

A) Target
B) Meijer
C) Kmart
D) Kroger
E) Walmart

Question 58

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

A) department stores.
B) category specialist stores.
C) extreme value retailers.
D) specialty stores.
E) convenience stores.

Question 59

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

A) emphasize fresh, locally sourced perishables.
B) target the broadest possible customer base.
C) eliminate customer frills and extras.
D) offer fewer private label brands.
E) offer more national brand packaged goods and few perishables.

Question 60

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

A) a broad assortment of merchandise.
B) highly trained personnel throughout the stores.
C) a complete assortment in a specific category at low prices.
D) highly attractive loyalty programs.
E) a limited but complementary merchandise assortment.

Question 61

__________ 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.

A) Department stores
B) Specialty stores
C) Category specialists
D) Drugstores
E) Off-price retailers

Question 62

Higher-income consumers visiting __________ feel like they are on a treasure hunt, searching for a bargain.

A) department stores
B) extreme value retailers
C) big box retailers
D) services retailers
E) category specialist stores

Question 63

Retailers' coupons, rebates, and online discounts are types of

A) in-store promotions.
B) specialty product displays.
C) pricing promotions.
D) off-price wholesaling.
E) mass media advertising.

Question 64

__________ are subtle forms of promotion that encourage shopping in retailers' stores.

A) Electronic signs
B) Store credit cards and gift cards
C) Large stocks of popular national brands
D) Quick response and just-in-time delivery systems
E) Extreme value offers and specialty share of the wallet programs

Question 65

Many retail golf stores have driving ranges, some with backdrops showing famous golf courses. These driving ranges allow

A) wholesalers to evaluate promotional discounts.
B) retailers to improve the shopping experience through an improved product line assortment.
C) customers to increase their share of wallet spending.
D) retailers to avoid competition from knock-off products.
E) customers to try before they buy.

Question 66

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

A) Category killers
B) Department stores
C) Extreme value retailers
D) Specialty stores
E) Warehouse club stores

Question 67

If you were a marketer for a clothing manufacturer and you wanted to improve revenues from irregulars, production overruns, and returns, you would be attracted to using

A) department stores.
B) specialty stores.
C) category specialists.
D) off-price retailers.
E) supercenters.

Question 68

Kim wants to maximize sales to the customers who walk into her store. Of the following, Kim will most likely focus on

A) in-store promotions.
B) billboard and other outdoor advertising.
C) supply chain relationships.
D) off-price wholesaling.
E) mass media advertising.

Question 69

Unusual and exciting displays like Bass Pro Shops' climbing wall and stocked aquarium are examples of

A) promotional discounts.
B) mass media gimmicks.
C) mobile marketing.
D) in-store promotions.
E) co-op advertising.

Question 70

It is often difficult for retailers to distinguish themselves from their competitors through the merchandise they carry because

A) they do not carry enough merchandise.
B) consumers no longer recognize brand equity.
C) big-box food retailers are shifting into specialty store product lines.
D) there is not enough merchandise to go around.
E) competitors can purchase and sell many of the same popular brands.

Question 71

For retailers, promotion refers to

A) supply chain communication.
B) the relationship between price and product.
C) the image a store attempts to maintain through its pricing strategy.
D) both their in-store environment and their media communications.
E) the seasonal discounts offered to move end-of-season items.

Question 72

Because of the way __________ buy merchandise, customers can never be confident that the same merchandise will be in stock each time they visit the store.

A) department stores
B) off-price retailers
C) discount stores
D) services retailers
E) category specialist stores

Question 73

Jackie is running errands on Saturday morning. First, she drives through Starbucks for a large latte, stops at the tailor to pick up a dress she had hemmed, and then heads to her manicure appointment. What kind of retailers is Jackie visiting?

A) convenience stores
B) convenience stores and services retailers
C) services retailers
D) category specialists
E) category specialists and specialty stores

Question 74

________ must always be aligned with other elements of a retailer's strategy to accurately define its image.

A) Mobile commerce
B) Transportation
C) Distribution
D) Price
E) Labeling

Question 75

One product strategy used by retailers to differentiate themselves from competitors is

A) the use of private label brands.
B) discount pricing.
C) removing brand labels from their merchandise offerings.
D) JIT product delivery.
E) offering brand name merchandise.

Question 76

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

A) Department stores
B) Specialty stores
C) Category killers
D) Off-price retailers
E) Full-line discount stores

Question 77

Retailers address the conflict between consumers wanting or needing only one item and manufacturers wanting to produce and ship in quantity by providing

A) reciprocity.
B) simplicity.
C) discounting.
D) storage.
E) extreme value labeling.

Question 78

Considering what you know about their target markets and merchandise, which of the following retailers is LEAST likely to have an online presence?

A) department stores
B) convenience stores
C) category specialists
D) off-price retailers
E) full-line discount stores

Question 79

Retailers use __________ to get customers into their stores.

A) in-store promotions
B) specialty product displays
C) supply chain relationships
D) off-price wholesaling
E) mass media advertising

Question 80

One of the most fundamental activities of retailers is to provide __________, satisfying the needs of their target market.

A) wholesaling opportunities
B) persuasive advertising
C) the right mix of merchandise and services
D) corrective price controls
E) category killing profitability