Deck 13: Retailing and Wholesaling

Question 1

________ is a type of service offered by those retailers who serve customers that are willing to perform their own "locate-compare-select" process in order to save money.

A) Limited-service
B) Self-service
C) Full-service
D) Specialty-service
E) Wholesaling

Answer 1

B

Question 2

________ are retailers that offer sales assistance because they carry more shopping goods about which customers might need information.

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

Answer 2

D

Question 3

Which type of retailer usually carries more specialty goods at high prices and is more likely to provide customers with assistance in every phase of the shopping process?

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

Answer 3

C

Question 4

________ are facing slow sales growth because of slower population growth, increased competition, and the rapid growth of out-of-home eating.

A) Warehouse clubs
B) Off-price retailers
C) Discount stores
D) Supermarkets
E) Factory outlets

Question 5

Which of the following is the most frequently visited type of retail store?

A) convenience store
B) department store
C) supermarket
D) superstore
E) off-price retailer

Question 6

A ________ is a small store, located near a residential area that is open long hours seven days a week and carries a limited line of high-turnover goods.

A) convenience store
B) chain store
C) department store
D) supermarket
E) specialty store

Question 7

Which type of store carries a wide variety of product lines and has 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?

A) warehouse clubs
B) department store
C) factory outlet
D) merchant wholesaler
E) category specialist

Question 8

At JCPenney, a mid-level department store, customers shop for moderately priced products and they are assisted in some phases of the shopping process. JCPenney is a ________.

A) full-service retailer
B) limited-service retailer
C) self-service retailer
D) specialty store
E) superstore

Question 9

Which type of retailer is most likely to require its employees to focus most on assisting customers as they shop?

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

Question 10

Which type of store carries a deep assortment of a particular product line, has knowledgeable staff, and can be viewed as a giant specialty store?

A) category killer
B) convenience store
C) factory outlet
D) warehouse club
E) off-price retailer

Question 11

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

A) Shopper marketing
B) Point-of-purchase marketing
C) Social media marketing
D) Virtual marketing
E) Omni-channel retailing

Question 12

Many institutions, including retailers, wholesalers, and ________ do retailing.

A) schools
B) government agencies
C) factory farmers
D) manufacturers
E) defense contractors

Question 13

Today, ________ are flourishing due to the increased use of market segmentation and market targeting.

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

Question 14

Retailers connect brands with consumers in the ________ phases of the buying process.

A) need identification
B) evaluation of alternatives
C) final
D) information gathering
E) post-purchase

Question 15

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

A) Franchising
B) Retailing
C) Brokering
D) Wholesaling
E) Disintermediation

Question 16

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

A) off-price retailer
B) specialty store
C) factory outlet
D) superstore
E) convenience store

Question 17

At Neiman Marcus, a first-class department store, customers shop for high-end products and they are assisted in every phase of the shopping process. Neiman Marcus is a ________.

A) full-service retailer
B) limited-service retailer
C) self-service retailer
D) specialty store
E) superstore

Question 18

________ involves using in-store promotions and advertising to extend brand equity to "the last mile" and encourage favorable point-of-purchase decisions.

A) Differentiation
B) Shopper marketing
C) Social media marketing
D) Retailer marketing
E) Segmentation

Question 19

Retailers are classified on characteristics including the amount of service they offer, the breadth and depth of their product lines, how they are organized, and ________.

A) the relative prices they charge
B) the number of locations they have
C) the strength of their Internet presence
D) their sustainability and environmental policies
E) the stability of their financial situation

Question 20

Specialty stores carry ________ with ________ within them.

A) only convenience products; shallow assortments
B) narrow product lines; deep assortments
C) narrow product lines; shallow assortments
D) wide product lines; shallow assortments
E) wide product lines; deep assortments

Question 21

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

A) department store
B) convenience store
C) category killer
D) specialty store
E) off-price retailer

Question 22

Which of the following would be considered a service retailer?

A) factory outlets
B) supermarkets
C) jewelry stores
D) restaurants
E) gas stations

Question 23

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

A) Discount
B) Merchant
C) Service
D) Specialty
E) Off-price

Question 24

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

A) factory outlet
B) retailer cooperative
C) wholesale club
D) warehouse club
E) convenience cooperative

Question 25

As discount stores traded up, ________ have filled the ultra low-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) chain stores
E) supercenters

Question 26

Which of the following kind of organization best represents a contractual association based on some unique product or service, a method of doing business, or a trade name or goodwill?

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

Question 27

________ are manufacturer-owned and operated stores that offer prices as low as 50 percent below retail on a wide range of mostly surplus, discounted, or irregular items.

A) Category killers
B) Factory outlets
C) Specialty stores
D) Superstores
E) Power centers

Question 28

Independent Grocers Alliance, Do-It Best, and Western Auto are examples of ________.

A) franchise organizations
B) warehouse clubs
C) voluntary chains
D) category killers
E) wholesale clubs

Question 29

Which of the following is an off-price retailer that operates in a huge, warehouse-like facility and offers few frills?

A) warehouse club
B) service retailer
C) convenience store
D) hypermarket
E) superstore

Question 30

A ________ is a wholesaler-sponsored group of independent retailers that engages in group buying and common merchandising.

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

Question 31

Stop-N-Go , 7-Eleven, and Circle K are examples of ________.

A) department stores
B) convenience stores
C) category killers
D) specialty stores
E) supermarkets

Question 32

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

A) Corporate chains
B) Convenience stores
C) Off-price retailers
D) Independent off-price retailers
E) Power centers

Question 33

Which of the following is NOT a type of off-price retailer?

A) independent
B) factory outlet
C) warehouse club
D) category killer
E) wholesale club

Question 34

Which of the following terms best describes a large, low-cost, low-margin, high-volume, self-service store that carries a wide variety of grocery and household products?

A) convenience store
B) supermarket
C) specialty store
D) warehouse club
E) factory outlet

Question 35

Sears, Target, and Kroger are examples of ________.

A) voluntary chains
B) retailer cooperatives
C) corporate chains
D) franchise organizations
E) warehouse clubs

Question 36

Home Depot and PetSmart are examples of ________.

A) factory outlets
B) warehouse clubs
C) superstores
D) off-price retailers
E) category killers

Question 37

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) ________.

A) specialty store
B) off-price retailer
C) factory outlet
D) wholesale club
E) category killer

Question 38

The early ________ cut expenses by offering few services and operating in warehouse-like facilities in low-rent, heavily traveled districts.

A) department stores
B) hypermarkets
C) discount stores
D) supermarkets
E) full-service retailers

Question 39

________ sell standard merchandise at lower prices by accepting lower margins and selling higher volume.

A) Merchant wholesalers
B) Discount stores
C) Full-service retailers
D) Limited-service retailers
E) Factory outlets

Question 40

McDonald's, Subway, and Jiffy Lube are all examples of ________.

A) voluntary chains
B) retailer cooperatives
C) franchises
D) category killers
E) power centers

Question 41

Shopper marketing involves focusing the entire marketing process-from product and brand development to logistics, promotion, and merchandisings-toward turning shoppers into buyers at the point of sale.

Question 42

Independent off-price retailers either are independently owned and run or are divisions of larger retail corporations.

Question 43

Franchises constitute only a small portion of all retail sales in the United States.

Question 44

A voluntary chain is a wholesaler-sponsored group of independent retailers that engages in group buying and common merchandising.

Question 45

Self-service retailers serve customers who are willing to perform their own locate-compare-select process to save time or money.

Question 46

Full-service stores usually carry more specialty goods for which customers need or want assistance or advice.

Question 47

Superstores are much larger than regular supermarkets and offer a large assortment of routinely purchased food products, nonfood items, and services.

Question 48

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

Question 49

Corporate chains are two or more outlets that are commonly owned and controlled.

Question 50

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

Question 51

Supermarkets are located near residential areas and are open long hours, seven days a week. They carry a limited line of high-turnover goods.

Question 52

Retail stores can be classified in terms of several characteristics. Name four of them.

Question 53

Supermarkets sell a limited selection of goods at deep discounts to consumers who pay membership fees.

Question 54

Category killers are giant specialty stores that carry a very deep assortment of a particular line.

Question 55

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 56

Refer to the scenario below to answer the following question(s).
In the 1970s, Shipshewana was only a small town with a hardware store, a grain mill, a shoe store, a small restaurant, and a grocery store. Over the next two decades, the small town transformed into an international tourist attraction, attracting thousands of tourists who were intrigued by the lifestyle of Shipshewana's largest population-the Amish.
Ben and Mary Miller, having grown up within the Amish faith, decided to capitalize on their town's popularity and their woodworking skills. Their shop, Indiana Wood, began with a small display of handmade hickory rocking chairs, Ben Miller's specialty. But within a few months, the display at Indiana Wood included picnic tables, flower boxes, and small handmade novelty items. No other shop offers the same variety.
Mary Miller decorated the shop's display room with authentic Amish décor and eventually hired three Amish friends to sew and embroider napkins and other textiles as customers had requested such items. In addition, two women from the Amish community sought permission from the Millers to display home-baked pastries and jellies on Tuesdays and Wednesdays, when Shipshewana attracts swarms of visitors to its flea market on the south edge of town. The Millers also hired four more people to help customers throughout the purchasing process and to provide the required product-related information to the customers.
"Shipshewana is full of specialty shops," Mary Miller stated. "People don't come here to buy things made in China or Taiwan. They want real, Amish-made goods."
Indiana Wood can be best classified as a(n) ________.

A) full-service retailer
B) industrial distributor
C) self-service retailer
D) warehouse club
E) limited-service retailer

Question 57

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

Question 58

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

Question 59

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 60

Refer to the scenario below to answer the following question(s).
In the 1970s, Shipshewana was only a small town with a hardware store, a grain mill, a shoe store, a small restaurant, and a grocery store. Over the next two decades, the small town transformed into an international tourist attraction, attracting thousands of tourists who were intrigued by the lifestyle of Shipshewana's largest population-the Amish.
Ben and Mary Miller, having grown up within the Amish faith, decided to capitalize on their town's popularity and their woodworking skills. Their shop, Indiana Wood, began with a small display of handmade hickory rocking chairs, Ben Miller's specialty. But within a few months, the display at Indiana Wood included picnic tables, flower boxes, and small handmade novelty items. No other shop offers the same variety.
Mary Miller decorated the shop's display room with authentic Amish décor and eventually hired three Amish friends to sew and embroider napkins and other textiles as customers had requested such items. In addition, two women from the Amish community sought permission from the Millers to display home-baked pastries and jellies on Tuesdays and Wednesdays, when Shipshewana attracts swarms of visitors to its flea market on the south edge of town. The Millers also hired four more people to help customers throughout the purchasing process and to provide the required product-related information to the customers.
"Shipshewana is full of specialty shops," Mary Miller stated. "People don't come here to buy things made in China or Taiwan. They want real, Amish-made goods."
Retailers can also be classified by the length and breadth of their product assortments. In terms of product line, what kind of retailer is Indiana Wood?

A) supermarket
B) specialty store
C) category killer
D) department store
E) convenience store

Question 61

What are the different types of off-price retailers?

Question 62

A ________ contains from 50 to 100 stores, is like a covered mini-downtown, and attracts customers from a wide area.

A) community shopping center
B) neighborhood shopping center
C) central business district
D) regional shopping center
E) strip mall

Question 63

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

Question 64

How can discount stores sell merchandise at lower prices?

Question 65

What is a category killer? Provide an example and a description of a category killer.

Question 66

Identify and describe the different types of retailers, based on their product lines. Provide an example of each type of retailer.

Question 67

Daizy's is a shop that carries only plus-size clothing. According to this information, Daizy's differentiates itself from its competitors based on ________.

A) service mix
B) pricing
C) product assortment
D) store atmosphere
E) distribution strategy

Question 68

Changes to service differentiation include all of the following EXCEPT ________.

A) smarter customers
B) decreased services at department stores
C) more price-sensitive consumers
D) customers' willingness to pay more for identical brands
E) increased services from discounters

Question 69

What types of products do specialty stores carry? Give an example of a specialty store.

Question 70

Describe the levels of service that retailers can offer. Provide an example of each type of retailer.

Question 71

In recent years, service differentiation among retailers has ________.

A) increased at a steady rate
B) decreased
C) stayed the same
D) increased exponentially
E) tripled

Question 72

How does a retailer cooperative function?

Question 73

Describe the different types of off-price retailers. Provide examples of each type.

Question 74

Compare and contrast specialty stores and convenience stores.

Question 75

Describe the differences between chain stores and franchises.

Question 76

Although many retail stores are independently owned, others band together under some form of corporate or contractual organization. Describe the four kinds of corporate or contractual organizations.

Question 77

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

A) Strip malls
B) Discount stores
C) Independent off-price retailers
D) Central business districts
E) Regional shopping malls

Question 78

Until retailers ________ their markets, they cannot make consistent decisions about product assortment, services, pricing, or advertising.

A) create
B) communicate with
C) divide up
D) define and profile
E) design products for

Question 79

A large retailer of home improvement and construction products 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 the retailer has differentiated itself through its ________.

A) product assortment
B) services mix
C) segmentation
D) atmosphere
E) pricing

Question 80

How have department stores responded to increased competition by specialty stores and lower-priced discounters?