Question 1

Office Solutions is a large retailer that specializes in office products and services. Their offerings include a wide and deep assortment of computers, desk furniture, printers, office supplies, stationery, and printing. Office Solutions is most likely an example of a ________.

Accepted Answer

Office Solutions is most likely an example of a category killer, as it specializes in a specific category (office products and services) and offers a wide and deep assortment of products within that category.

Question 2

Specialty stores are characterized by ________.

Accepted Answer

Specialty stores specialize in a narrow product line but offer deep assortments, providing a significant number of brands, sizes, and styles of a single category of product. For example, a store that sells only shoes but carries several varieties of shoes such as sneakers, boots, heels, and sandals.

Question 3

Which types of stores are characterized by specialty goods for which customers need assistance and higher operating costs that are passed along to customers as higher prices?

Accepted Answer

Full-service stores are characterized by specialty goods for which customers often need assistance and higher operating costs that are passed along to customers as higher prices. These stores usually have knowledgeable staff who can help with product selection, offer personalized service, and even provide after-sales assistance, which is why prices tend to be higher than in self-service or discount stores.

Question 4

Department stores are most likely characterized by ________.

Accepted Answer

Department stores are known for carrying a wide variety of product lines, including clothing, home goods, electronics, and more. They often offer many different brands and styles within each product category, providing customers with a large assortment to choose from.

Question 5

Which term refers to a giant specialty store with a very deep assortment of a particular product line?

Accepted Answer

A category killer is a store that specializes in one or a few merchandise categories, carrying a deep product assortment and competitive prices. The term refers to the store's ability to dominate a product category and "kill"/eliminate smaller competitors by offering a superior shopping experience and selection. Examples of category killers include stores such as Best Buy (electronics), Toys "R" Us (toys), and Home Depot (home improvement).

Question 6

Customers at Carat, a premium jewelry store, are encouraged to make an appointment before a visit so that a customer service representative is assigned to them. These representatives help every customer make a purchase that meets his or her needs and budget after considering numerous options. The different styles and special features of the jewelry are explained to each customer to aid the purchase decision. In this case, Carat is an example of a(n)________.

Accepted Answer

Carat is an example of a full-service retailer because it provides personalized assistance to customers to help them make purchase decisions.

Question 7

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

Accepted Answer

Retailing refers to the activities involved in selling products or services directly to final consumers for their personal, nonbusiness use.

Question 8

Leading "big-box" stores, such as Walmart and Target, now dominate the retail scene. However, even "small-box" stores like Dollar General, are thriving in the current economic environment. All three retailers are considered ________.

Accepted Answer

The description of these stores as "thriving" and the mention of "discount" indicates that they are discount stores.

Question 9

Food Galore is a regional chain of supermarkets in the Midwest. The primary role of the staff is to restock shelves and operate cash registers. Customers locate, compare, and select their groceries and other sundry items. Food Galore is most likely a ________.

Accepted Answer

Food Galore is described as a supermarket where customers locate, compare, and select items themselves, indicating it operates as a self-service retailer.

Question 10

Which of the following statements is true of retailing?

Accepted Answer

Services like hotels, banks, airlines, restaurants, colleges, and hospitals can be retailed. This is because retailing involves the sale of goods and services to end consumers for consumption or personal use. These services can be sold in retail outlets, just like physical goods.

The other options are incorrect:

A) All retail stores are not full-service retail stores. There are different types of retail stores, including self-service and limited-service retail stores.

B) A department store has a wide product line with a deep assortment, not a narrow product line.

C) The largest type of retail outlet is not a supermarket. The largest type of retail outlet is a hypermarket, which combines a supermarket and a discount store.

E) The use of the everyday low pricing strategy is not a feature common to all types of retail stores. Some retailers use other pricing strategies such as high-low, value pricing, or penetration pricing.

Question 11

Which of the following is a type of off-price retailer?

Accepted Answer

Warehouse clubs are a type of off-price retailer that offer a limited selection of brand name grocery items, appliances, clothing, and a variety of other goods at discount prices to club members, typically in a large warehouse-like space.

Question 12

Which type of retailer typically carries deep product assortments of narrow product lines?

Accepted Answer

Specialty stores typically carry deep product assortments of narrow product lines. They focus on a specific product category or niche market and offer a wide variety of options within that category. Examples of specialty stores include Sephora for beauty products or REI for outdoor gear.

Question 13

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

Accepted Answer

Superstores are much larger than regular supermarkets and offer a wide range of routinely purchased food products, nonfood items, and services. They are also known for their competitive prices and convenience. Discount stores, specialty stores, factory outlets, and off-price outlets may offer some of these features, but they do not typically have the breadth and depth of products and services offered by superstores.

Question 14

________ have filled the ultralow-price, high-volume gap by buying at less-than-regular wholesale prices and charging consumers less than retail.

Accepted Answer

Off-price retailers specialize in selling products at less than regular wholesale prices, which allows them to charge consumers less than retail prices. This business model has filled the ultralow-price, high-volume gap.

Question 15

________ builds around what P&G calls the "First Moment of Truth" - the critical three to seven seconds that a shopper considers a product on a store shelf.

Accepted Answer

Shopper marketing is the practice of creating targeted promotional campaigns that build around the shopper's experience and focus on influencing them at the point-of-purchase. It aims to win over new customers, increase shopper loyalty, and improve brand recognition in the retail environment. Shopper marketing builds around the critical three to seven seconds that a shopper considers a product on a store shelf, also known as the "First Moment of Truth."

Question 16

The American Tie Company, a necktie retailer, offers a deep assortment of men's neckties. The American Tie Company is best described as a(n)________.

Accepted Answer

The American Tie Company is a specialty store since it offers a deep assortment of men's neckties, which is their primary focus. Option A (department store) would imply that they offer a wider range of products, including clothing, electronics, etc. Option B (supermarket) is not applicable as they do not sell groceries, Option D (discount store) and E (off-price retailer) are not applicable as they do not suggest any discounts on their products.

Question 17

Jones & Company, a major retail chain across the United States, offers a wide range of consumer goods such as clothing, furniture, home appliances, cosmetics, jewelry, and food. Jones & Company is best described as a ________.

Accepted Answer

Jones & Company is best described as a department store because it offers a wide range of consumer goods in different categories.

Question 18

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

Accepted Answer

Omni-channel retailing refers to the integration of various channels such as in-store, online, and mobile shopping, creating a seamless cross-channel buying experience. Shopper marketing refers to understanding the buying behavior of consumers in-store, while test marketing involves testing a new product or marketing strategy in a specific market. Online marketing focuses on promoting products or services through online channels, while consolidation marketing refers to the merger or acquisition of companies to increase market share.

Question 19

Stores that provide moderate sales assistance because they carry shopping goods about which customers need a moderate level of information are called ________ retailers.

Accepted Answer

Limited-service retailers provide moderate sales assistance, such as carrying shopping goods that customers need a moderate level of information about, but do not offer full-service assistance like personalized recommendations or extensive product knowledge.

Question 20

A convenience store ________.

Accepted Answer

Convenience stores typically carry a limited selection of goods that have high turnover, are often located in high-traffic areas, and are designed for self-service by consumers in a hurry.

Quiz 11: Retailing and Wholesaling