Deck 11: Retailing and Wholesaling

Question 1

A firm that contracts with a parent company to set up a business or retail outlet is called the franchiser.

Answer 1

False

Question 2

Shopper marketing helps a retailer understand how consumers behave as shoppers in different channels and formats.

Answer 2

True

Question 3

A retailer's first task in developing a retail strategy is to position the products to differentiate itself from its competitors.

Answer 3

False

Question 4

The largest retailers in Canada are predominantly in the food business.

Question 5

Community shopping centres consist of 50 to 150 stores that typically attract customers who live or work within a 5- to 15-kilometre range.

Question 6

The elements of the retailing mix, product and service considerations, retail pricing, physical location factors, and communications, focus on the consumer.

Question 7

A retailer that moves to 24/7 hours of operation is offering consumers place utility.

Question 8

Although franchising increases the parent company's degree of control, it leads to an increase in costs of expansion.

Question 9

Stores that carry a large assortment of a related line of items and those that carry numerous items in one primary line of merchandise are often referred to as specialty outlets.

Question 10

Interactive capability of Internet/web-enabled technologies that assist customers to make informed choices is one of the reasons for consumers shopping online.

Question 11

Retailing includes all activities involved with providing goods to consumers and business buyers.

Question 12

Limited service is at the extreme end of the level-of-service continuum because the customer performs many functions and little service is provided by the outlet.

Question 13

Markets where the lack of consumer knowledge about products and brands will increase the need for a person-to-person approach is likely to promote direct selling.

Question 14

Understanding the consumption of goods and services has been ignored by traditional marketers, whose focus has been on understanding shoppers.

Question 15

Customers enjoy the advantages of convenience, quality personal service, and lifestyle compatibility through corporate chains.

Question 16

The stores of Farow & Grey's Inc.carry clothing for men, women, and children; cosmetics; and housewares.This variety of different lines that a store carries refers to the depth of product line.

Question 17

Form of ownership distinguishes retail outlets based on whether individuals, corporate chains, or contractual systems operate the outlet.

Question 18

Studies reveal that most of the top 10 retailers operate solely in their countries of origin.

Question 19

Offering several unrelated product lines in a single store is referred to as intertype competition.

Question 20

The popularity of vending machines results from products being offered at a lower price than those in stores.

Question 21

Franchising is attractive for the franchisee because:

A)it gives the franchisee complete control over the delivery and presentation of merchandise.
B)the licence fee paid to the franchiser is the only fee the franchisee pays.
C)it relieves the franchisee from any company or product liabilities.
D)it offers the opportunity to enter into an established business with managerial advice.

Question 22

Bar codes can be used to send consumers who scan the codes to places online and are very effective marketing tools.

Question 23

The first step in developing a retail strategy is

A)To define a target market
B)To determine the retail positioning
C)Set sales goals
D)Determining the overall pricing approach

Question 24

National franchisers assist their franchisees in selecting the store location, setting up the store, advertising, and:

A)paying their bills promptly.
B)securing loans from banks for setting up the business.
C)keeping premises clean.
D)training personnel.

Question 25

Raphael & Sons is a high-end men's clothing retailer.In times of recession, the retailer began to carry lower-quality, low-priced suits.This made Raphael & Sons lose a significant number of its loyal customers.This is an example of wrong _____.

A)cross-channel shopping
B)location
C)shopper marketing
D)retail positioning

Question 26

Level of service refers to the:

A)breadth and depth of goods provided.
B)degree of product liability held by the manufacturer.
C)degree of service provided to the customer.
D)relationship between the manufacturer, retailer, and consumer.

Question 27

Pally's Supermarket accepts debit and credit cards as well as cash and cheques for purchases.Its acceptance of various forms of payment provides its customers with _____ utility.

A)time
B)place
C)possession
D)form

Question 28

During the Christmas season, Give & Take Inc., a gifts store, sets up kiosks in many shopping centres for customers who might not be able to travel to a centre that contains a full-sized gift store.By creating these kiosks in a variety of locations, Give & Take Inc.is creating _____ utility.

A)time
B)place
C)possession
D)form

Question 29

Merchant wholesalers buy goods and then resell them.

Question 30

The ability to shop over the Internet 24/7 provides consumers with _____ utility.

A)time
B)convenience
C)possession
D)form

Question 31

Foodies uses placards telling shoppers about the farmers who grew and harvested the various products in the store.This use of signage to provide consumer information is a part of the store's _____.

A)communications mix
B)discounts and allowances
C)variety and assortment
D)products and services mix

Question 32

A men's clothing store that offers alterations is providing its customers with _____ utility.

A)time
B)place
C)possession
D)form

Question 33

Graham's Spice LLC makes use of _____, which includes use of traditional media, new media, direct marketing, loyalty, and trade promotion to understand when and where its customers first think about purchasing its spices.

A)understanding consumers
B)retail positioning
C)shopper marketing
D)purchase matrix

Question 34

_____ includes all activities involved in selling, renting, and providing goods and services to ultimate consumers for personal, family, or household use.

A)Manufacturing
B)Wholesaling
C)Retailing
D)Facilitating

Question 35

Mercedes-Benz sells the B series cars in Canada but not in the United States.This is most likely because

A)They want to limit the number of autos they sell in the U.S.market
B)The B series vehicles don't appeal to the target market identified in the U.S.
C)Sales in Canada are sufficient to meet Mercedes-Benz goals
D)NAFTA regulations do not permit the B Series vehicles into the U.S.

Question 36

Bright @ Night allows its independent members, retailers of lighting fixtures, to concentrate their buying power and to plan collaborative promotional and pricing activities.Bright @ Night is a _____.

A)manufacturer's agent
B)contractual system
C)corporate chain
D)joint venture

Question 37

Selling agents work for several producers and carry non-competitive, complementary merchandise in an exclusive territory.

Question 38

_____ distinguishes retail outlets on the basis of whether individuals, corporate chains, or contractual systems possess or control the outlet.

A)Level of service
B)Form of ownership
C)Merchandise line
D)Method of operation

Question 39

Franchising is a type of:

A)limited service wholesaler.
B)contractual system.
C)vertically integrated network.
D)greenfield venture.

Question 40

A(n) _____ is a form of ownership that involves multiple outlets under common ownership.

A)corporate chain
B)consumer cooperative
C)contractual system
D)independent retailer

Question 41

The variety of different items a store carries is referred to as the _____.

A)retailing mix
B)depth of product line
C)breadth of product line
D)level of service

Question 42

The assortment of products within each product line in a store is referred to as its _____.

A)retailing mix
B)depth of product line
C)breadth of product line
D)level of service

Question 43

_____ involves offering several unrelated product lines in a single store.

A)Intertype competition
B)Dual channel marketing
C)Scrambled merchandising
D)Disintermediation

Question 44

Stores that carry a considerable assortment (depth) of a related line of items are called _____.

A)limited-line stores
B)general merchandise stores
C)scrambled merchandise stores
D)hypermarkets

Question 45

At which level of service would the retail customer perform the greatest number of functions?

A)exclusive service
B)selective service
C)self-service
D)limited service

Question 46

Fresh-cut flowers that used to be available only from florists can now be purchased at neighbourhood supermarkets.The competition between the supermarket and the florist for flower sales is an example of _____.

A)dysfunctional competition
B)mixed-line merchandising
C)multi-product marketing
D)intertype competition

Question 47

What level of retail service do home building-supply outlets, discount stores, and catalogue showrooms typically provide?

A)full service
B)limited service
C)self-service
D)customized service

Question 48

A drug store that sells pharmaceuticals, beauty aids, camera equipment, non-perishable grocery items, and automobile motor oil is an example of a retailer using _____.

A)cross-docking
B)full service
C)scrambled merchandising
D)disintermediation

Question 49

Competition between very dissimilar types of retail outlets that carry some of the same kind of merchandise is referred to as _____.

A)breadth of line
B)intertype competition
C)scrambled merchandising
D)multi-service merchandising

Question 50

A type of retail outlet that focuses on one type of product at very competitive prices and often dominates the market is called a _____.

A)general merchandise store
B)specialty outlet
C)hypermarket
D)category killer

Question 51

Which of the following is true of a markdown?

A)It is often used when the product does not sell at the original price.
B)New models or styles don't force the price of existing models to be marked down.
C)It may be used to increase demand for unrelated products.
D)The timing of a markdown really doesn't matter.

Question 52

Posture has an informed staff and will even gift wrap purchases free of charge.It does not, however, provide alterations on items purchased at the store.This store offers _____.

A)exclusive service
B)economies-of-scale service
C)self-service
D)limited service

Question 53

Foodies sells a wide variety of fruits and vegetables, including exotic ones from different countries.It has very competent salespeople who guide the customers in selecting their produce.The retailer guarantees the freshness of its produce and offers a no-questions-asked exchange policy.In terms of the retailing mix, this strategy is concerned with _____.

A)the communications mix
B)discounts and allowances
C)variety and assortment
D)the products and services mix

Question 54

_____ are stores that carry a variety of product lines with limited depth.

A)Limited-line stores
B)General merchandise stores
C)Scrambled merchandise stores
D)Hypermarkets

Question 55

Which level of service frequently characterizes specialty stores and department stores?

A)exclusive service
B)minimal service
C)full service
D)limited service

Question 56

Mamma's Palace carries 3,000 items in stock for expectant mothers in all dress sizes.This is an example of the ____ that Mamma's Palace carries.

A)depth of product line
B)breadth of product line
C)product mix
D)versatility of product line

Question 57

The store also offers advice, personal shopping services, help with hair and/or make-up problems, and free delivery for expectant mothers.Mamma's Palace is a _____ retailer.

A)exclusive-service
B)minimal-service
C)self-service
D)full-service

Question 58

Limited- and single-line stores are often referred to as _____.

A)specialty outlets
B)general merchandise stores
C)scrambled merchandise stores
D)intertype outlets

Question 59

Kyra aims to expand Posture's reach across Canada and make it a high-end store.She will have well-trained and informed salespeople in each store who will assist customers with a personalized shopping experience.The salespeople will have a database of its regular customers with details such as the colour, texture, and size of clothing they prefer, so that the customers do not waste time providing such details every time they visit the store.Customers' needs will be addressed in-store.Kyra is aiming to make Posture:

A)move from limited service to full service.
B)move from self-service to full service.
C)become a more self-service store.
D)offer full-service at self-service prices.

Question 60

Marcus Pigeon Supplies is one of the biggest retailers of racing pigeon supplies in the country.The storeowner describes the store as "the Sam's Club of pigeon supplies." Marcus Pigeon Supplies is an example of a(n) _____.

A)limited-line store
B)single-line store
C)intertype outlet
D)general merchandise store

Question 61

One of the biggest problems online retailers face is:

A)an inability to create time utility for the consumers who purchase through websites.
B)customers' tendencies to get to the checkout and leave the website without concluding the purchase.
C)its inability to allow comparison shopping when consumers are in a dilemma trying to choose between two or more products.
D)the difficulty of actually placing the online purchase.

Question 62

Which of the following is an example of non-store retailing?

A)hypermarkets
B)supercentres
C)shopping centres
D)vending machines

Question 63

Dell Computers allows online shoppers to choose the components in their computer instead of buying one "off the shelf".This exemplifies

A)Communication benefits of online shopping
B)Control benefits of online shopping
C)Customization benefits of online shopping
D)Cost benefits of online shopping

Question 64

Which of the following statements about telemarketing is true?

A)Shopping bots are computers that place automated telemarketing calls.
B)Direct mail is typically viewed as more efficient than telemarketing.
C)Telemarketing has declined in popularity as companies have searched for ways to decrease costs.
D)As the use of telemarketing grows, consumer privacy has become a greater concern.

Question 65

Jazz, a power shopping centre, contains three _____, which are well-known national or regional stores.

A)general stores
B)off-price retailers
C)anchor stores
D)warehouse clubs

Question 66

One of the limitations of television home shopping has been the:

A)lack of buyer-seller interaction.
B)complexity of payment options.
C)very restricted choice of product variants.
D)allowance of a maximum of 12 hours per day for shopping.

Question 67

Which of the following statements about direct selling is true?

A)Unlike other forms of non-store retailing, direct selling takes place in the business market.
B)Direct selling lacks demonstrations of the products in question.
C)Success of direct sales results from the convenience and personalized service provided.
D)Direct sales have been growing rapidly.

Question 68

Graham's, Foxes, and Harley's are retailers who sell their products at retail stores, through their catalogues, and at their online websites.These retailers are _____ retailers.

A)intratype
B)multichannel
C)vertically integrated
D)regional

Question 69

_____ retailing occurs outside a retail store, such as through direct marketing, direct selling, and automatic vending.

A)Limited-line
B)Non-store
C)Scrambled merchandise
D)Hypermarket

Question 70

Direct selling is likely to continue to grow in markets:

A)where retail chains carry similar products at discount rates.
B)where convenience is not important.
C)where there is a lack of effective distribution channels.
D)in which consumers are knowledgeable shoppers.

Question 71

Direct mail and catalogue retailing are examples of _____.

A)hypermarkets
B)single-line stores
C)non-store retailing
D)online retailing

Question 72

Prices in vending machines tend to be higher because:

A)machines are placed in high demand areas.
B)maintenance and operating costs are high.
C)machines typically sell very unique items.
D)customary pricing requires certain coin amounts regardless of markup.

Question 73

Social media sites like Facebook and Twitter have

A)Given a boost to online retailing
B)Caused a reduction in online retailing
C)Increased consumer preference for in-store retailing
D)Little influence on purchase behavior

Question 74

When compared to discount stores, off-price retailers:

A)have a larger target market.
B)have a larger per capita volume.
C)sell off-price merchandise, which is bought by the retailer at full wholesale prices.
D)are unpredictable when it comes to selection.

Question 75

Jimmy's, a multichannel retailer, assists customers to order items that may be out of stock at one of its retail stores.The customers may use the catalogue to place the order.This provision best illustrates that Jimmy's:

A)mainly has its retail outlets in the central business district.
B)recognizes that the Internet is an effective relationship-building medium among different channel operations.
C)benefits from the synergy of sharing information among their different channel operations.
D)typically reduces the size of its target markets.

Question 76

A community shopping centre is a:

A)suburban mall containing up to 100 stores, often including one or two anchor stores, with a typical driving distance of over 5 to 15 kilometres from the city centre.
B)cluster of stores in a downtown area.
C)retail location that has one primary store and often about 20 to 40 smaller outlets and serves those who are within a 2- to 5-kilometre drive.
D)cluster of stores that serves people who are within a 5- to 10-minute drive and live in a population base under 30,000.

Question 77

Commuter stops such as airports and train and bus stations do not have stores that are open 24 hours each day.But travelers are often in need of small convenience products and food items.Which type of non-store retailing fits best in these locations?

A)catalogue
B)online retailing
C)telemarketing
D)automatic vending

Question 78

Daniel, an avid fly fisherman from a small village, needs large rubber rafts; chest and hip waders; special fishing rods, reels, and line; and an assortment of fishing tackle and lures.He orders his fishing supplies from Fish & Spin's catalogue due to the lack of any good stores in his village.His supplies are generally delivered to his home within 72 hours.Daniel is using a _____ to satisfy his fishing supply needs.

A)home delivery retailer
B)quick response retailer
C)direct mail marketer
D)community marketer

Question 79

Regional shopping centres are:

A)50 to 150 stores that typically attract customers who live or work within a 5- to 15-kilometre range.
B)retail clusters in downtown areas.
C)retail site locations that typically have one primary store and often about 20 to 40 smaller outlets and that serve a population base of about 100,000.
D)clusters of stores that serve people who are within a 5- to 10-minute drive and live in a population base under 30,000.

Question 80

Clean & Crisp is a new dry-cleaning and laundry company.The owner wants to attract people who will be within a 5- to 10-minute drive of the business.The best location for this new dry-cleaning and laundry service would be _____.

A)the central business district
B)a regional shopping centre
C)a community shopping centre
D)a strip location