Deck 13: Retailing and Wholesaling

Question 1

Independent off-price retailers may in fact be divisions of larger retail corporations.

Answer 1

True

Question 2

Limited-service retailers,such as specialty stores and first-class department stores,employ salespeople who assist customers in every phase of the shopping process.

Answer 2

False

Question 3

Chain stores are located near residential areas and are open long hours,seven days a week; they carry a limited line of high-turnover goods.

Answer 3

False

Question 4

Retailers first must position themselves in a market and then decide how they will define the target customers in these markets.

Question 5

Factory outlets,independent off-price retailers,and warehouse clubs all buy their merchandise in a similar fashion.

Question 6

In a retailer cooperative,independent retailers contract with each other to set up a central buying operation and conduct joint promotional efforts.

Question 7

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

Question 8

Some retailers use no price promotions at all,competing instead on product and service quality rather than on price.

Question 9

Category killers carry a deep assortment of a particular product line and have a knowledgeable staff.

Question 10

Power centres are decreasing in number.

Question 11

To create the right atmosphere,some retailers control every aspect of the consumer's store experience,including what customers hear and smell.

Question 12

The wheel-of-retailing concept deals mainly with wholesalers rolling out reduced service levels.

Question 13

Full-service retailers,such as Sears or The Bay,provide more sales assistance because they carry more shopping goods about which customers need information.

Question 14

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 15

In warehouse clubs,customers must independently bring large items to the checkout line.

Question 16

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

Question 17

The life cycle of new retail forms is getting longer.

Question 18

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

Question 19

Retail convergence means greater competition for retailers and greater difficulty in differentiating offerings.

Question 20

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

Question 21

__________ include(s)selling to final consumers through direct mail,catalogues,telephone,and the Internet.This has increased in recent years.

Question 22

Which type of retailer tends to be the most frequently shopped?

A) Convenience stores
B) Department stores
C) Superstores
D) Supermarkets
E) Off-price retailers

Question 23

Like retailers,a wholesaler must decide on segmentation and targeting,differentiation and positioning,and the marketing mix.

Question 24

Companies with increased operating costs often charge higher prices.These ________,such as Sears,provide more sales assistance because they carry more shopping goods about which customers need information.

Question 25

In an automated warehouse,orders are fed directly from the retailer's information system to the wholesaler's,and the items are picked up by mechanical devices and taken to a shipping platform,where they are assembled.

Question 26

Which of the following retailers likely require the most emphasis on salespeople to assist customers?

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

Question 27

Unlike mass marketers,niche marketers expect to see continued growth in their online sales.

Question 28

Selling products or services directly to final consumers for their personal,nonbusiness use is called ____________.

Question 29

A relative handful of retailers now control access to enormous numbers of consumers,giving them the upper hand in their dealings with manufacturers.

Question 30

The rapid growth of out-of-home eating,slower population growth,and increased competition are all challenges for ________ and are experiencing slow sales growth.

Question 31

________ is the basis of all discount operations and is typically used by sellers of convenience goods.Retailers offering this level of service require customers to perform their own "locate-compare-select" process in order to save money.

Question 32

These stores have 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.The _________ store carries a wide variety of product lines and differentiates itself through service.

Question 33

7-Eleven,Mac's,and Couche-Tard,small stores that traditionally have had a primary market of young,blue-collar men,are examples of ________.

Question 34

An agent is a wholesaler who does not take title to goods and whose function is to bring buyers and sellers together and assist in negotiation.

Question 35

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

Question 36

The distinction between large retailers and large wholesalers is becoming blurred.

Question 37

If customers like to be "waited on" and have much higher operating costs,these costs are often passed along to the customer.These types of stores are called ____________________.

Question 38

Department stores carry ________ with ________ within them.

Question 39

Customers will seek out ________ if they want deep assortments within narrow product lines.

Question 40

At Holt Renfrew,a first-class department store,customers shop for specialty products and have come to expect assistance in every phase of the shopping process.Holt Renfrew is a ________.

Question 41

Expenses can sometimes be reduced by offering fewer services and operating in warehouse-like facilities in lower-rent,heavily travelled districts.This was the early strategy for _____________.

Question 42

Which of the following is one of the main types of off-price retailers?

A) Independent sellers
B) Factories
C) Warehouses
D) Category killers
E) Membership warehouses

Question 43

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

Question 44

A growing number of outlet malls now feature brands such as Coach,Polo Ralph Lauren,Dolce & Gabbana,and Giorgio Armani,causing ________ to protest to the manufacturers of these brands.

Question 45

These stores are often larger than regular supermarkets and offer a large assortment of routinely purchased food products,nonfood items,and services.They are the _____________.

Question 46

When standard merchandise is sold at lower prices with lower margins,the result is often selling higher volume.This is a strategy for _____________.

Question 47

Service retailers include which of the following?

A) Hotels and motels
B) Fast-food outlets
C) Movie stores
D) Giant killers
E) Convenience stores

Question 48

If two or more outlets are commonly owned and controlled by a single person or ownership group,they are likely ___________.

Question 49

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)________.

Question 50

A limited line of high-turnover convenience goods,maximized revenues from cigarette,beverage,and gasoline sales are all strategies of the ____________ store.

Question 51

________ are often found in value-retail centres.These stores offer prices as low as 50 percent below retail on a wide range of mostly surplus,discounted,or irregular items.

Question 52

________ accept last year's merchandise and seconds from manufacturers.

Question 53

________,which buy at less-than-regular wholesale prices and charge consumers less than retail,are independently owned and run or are divisions of larger retail corporations.

Question 54

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

Question 55

If customers pay annual membership fees and are able to purchase goods at deep discounts and they are shopping in warehouse-like facilities that sell a limited selection of items and offer few frills,chances are they are shopping at ______________.

Question 56

Which of the following types of retailers is most likely to practise everyday low pricing (EDLP)?

A) Discount stores
B) Convenience stores
C) Category killers
D) Limited-service retailers
E) Department stores

Question 57

The strategy of buying at less-than-regular wholesale prices and charging consumers less than retail is used by ________,which have filled the ultralow-price,high-volume gap

Question 58

McDonald's,Subway,and Pizza Hut are all examples of a ________.

Question 59

Stores that carry a deep assortment,have knowledgeable staff,and might actually be viewed as giant specialty stores are also called ________________.

Question 60

In North America,product retailers are growing slower than ________ stores.

Question 61

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

Question 62

7-Eleven has recently begun to redesign and restock its stores to offer a more upscale environment and products,such as house wines and fresh foods.7-Eleven has changed its ________.

Question 63

The Bay department stores carry a wide range of product lines,including clothing,jewellery,kitchenware,and home furnishings.The Bay typically charges a relatively high markup,but also holds frequent sales and price promotions,in particular,offering discounts to customers who use The Bay's credit card.The Bay uses ________.

Question 64

Because ____________,retail assortments are looking more and more alike.

Question 65

___________ include in-store demonstrations,displays,contests,and even visiting celebrities.

Question 66

In the battle for "share of stomachs," some supermarkets are cutting costs and attempting to compete more effectively with food discounters,while others are moving upscale,providing improved store environments and higher-quality food offerings.These two different strategies represent differences in ________.

Question 67

It is rare that ________ is achieved while charging ________ although many retailers wish it were more common.

Question 68

The ___________system is normally based on some unique product or service.

Question 69

Home Depot 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 Home Depot has differentiated itself through its ________.

Question 70

Of the following,what would most retailers consider to be the most important factor in retailing success?

A) Fair prices
B) Good atmosphere
C) Helpful employees
D) Location
E) Service

Question 71

Which of the following may be true about shoppers who prefer to shop at "lifestyle centres"?

A) They prefer inexpensive atmospheres.
B) They prefer upscale stores.
C) They prefer out-of-the-way locations.
D) They rarely dine out.
E) They are motivated by deals on last year's merchandise and seconds.

Question 72

Big and Tall Men's Shop carries goods in larger sizes; this allows the store to ________ other stores.

Question 73

A ________ contains from 40 to 200 stores,is like a covered mini-downtown,and attracts customers from a wide area.

Question 74

Why do stores cluster together?

A) To decrease competition
B) To increase their customer pulling power
C) To take advantage of tax breaks
D) To create retailer cooperatives
E) To standardize the service mix

Question 75

Retailers can decide about product assortment,services,pricing,advertising,store decor,and any other decisions that supports their positions after they ________ and ________ their markets.

Question 76

Costco's surprise offerings of seconds,overstocks,and closeouts-occasionally including diamonds-is an example of how a retailer can differentiate itself through ________.

Question 77

Which of the following describes a way that Costco and Walmart are similar?

A) Both are warehouse clubs.
B) Both target the same affluent market.
C) Both offer a similar assortment of products.
D) Both use everyday low pricing.
E) Both market a very limited number of generic-priced food, household, and apparel lines.

Question 78

One retailer strategy is to offer merchandise that no other competitor carries.This is an example of how a retailer's ________ should differentiate the retailer while matching target shoppers' expectations.

Question 79

Press conferences and speeches,store openings,special events,newsletters,magazines,and public service activities are examples of ways retailers use ________.

Question 80

Service differentiation among retailers has ________.