Question 1

In response to slow growth in their domestic markets,many wholesalers are .

Accepted Answer

Wholesalers facing slow growth in domestic markets often turn to international expansion as a means of sustaining their businesses. By increasing their international business, wholesalers can tap into new markets and diversify their customer base. This can help to offset any declines in their domestic business and boost overall sales and profits.

Question 2

The merging of consumers,products,prices,and retailers is called .

Accepted Answer

Retail convergence refers to the merging of consumers, products, prices, and retailers. This term specifically refers to the trend of different types of retailers (brick and mortar, online, etc.) offering similar products and competing in the same market.

Question 3

SuperValu,traditionally classified as a food wholesaler,has recently started or acquired several retail food chains of its own,including Albertsons,Jewel- Osco,and Cub Foods.Which of the following trends is this an example of?

Accepted Answer

The acquisition and development of retail food chains by SuperValu blurs the traditional distinctions between retailers and wholesalers. SuperValu, previously classified solely as a wholesaler, is now entering the retail market by acquiring and developing new food store chains. This trend represents an integration of the roles of retailers and wholesalers.

Question 4

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

Accepted Answer

Supermarkets tend to be the most frequently shopped retailers as they offer a wide variety of products including groceries, household items, and personal care products. They also tend to have regular promotional deals and loyalty programs that encourage repeat visits from customers.

Question 5

are sometimes several stores grouped together.These stores offer prices as low as 50 percent below retail on a wide range of mostly surplus,discounted,or irregular items.

Accepted Answer

The description matches the concept of factory outlets, which are stores that offer discounts on surplus, discounted, or irregular items. The other options do not necessarily offer such discounts or focus on surplus items.

Question 6

Which of the following is NOT one of the main types of off- price retailers?

Accepted Answer

The main types of off-price retailers are factory outlets, membership warehouses, independents, and warehouse clubs. Category killers, on the other hand, are a type of specialty store that focuses on a particular product category and offers a wide selection of products at low prices, but they are not typically considered off-price retailers.

Question 7

The main difference between organizations and other contractual systems is that these systems are normally based on some unique product or service.

Accepted Answer

Franchise systems are based on a unique product or service, typically with a specific brand or trademark associated with it. In a franchise system, the franchisee pays a fee to the franchisor for the rights to use the brand, products, and processes in exchange for following certain guidelines and standards. This is different from other contractual systems such as agents, warehouse-clubs, retailer cooperatives, or voluntary chains, which may not be based on a unique product or service.

Question 8

Specialty stores carry with within them.

Accepted Answer

Specialty stores typically carry a narrow range of product lines, but with deep assortments within those lines. This allows them to cater to a specific niche market and offer a wide variety of options within that niche. For example, a specialty shoe store may only carry athletic shoes, but will have a deep selection of different brands, styles, and sizes within that category.

Question 9

Why do stores cluster together?

Accepted Answer

Stores cluster together to increase their customer pulling power. This is because having a group of stores in one area can create a destination for consumers, making it more likely that they will come to that area specifically to shop. Additionally, when there are multiple stores in one area, it can create a synergy that benefits all the stores, as they attract more foot traffic and shopping becomes a more convenient experience for the consumer.

Question 10

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

Accepted Answer

Costco's surprise offerings of seconds, overstocks, and closeouts demonstrate how the retailer differentiates itself through its unique product assortment. This strategy allows them to provide customers with a constantly changing selection of products at discounted prices, which helps create a sense of urgency among shoppers and encourages them to make purchases while supplies last.

Question 11

Retail convergence is a merging of all of the following EXCEPT .

Accepted Answer

Retail convergence refers to the merging of retailers, products, prices, and consumers. It does not involve the merging of employees as they are considered part of the retailer. Therefore, option B is the correct answer as it does not fit with the concept of retail convergence.

Question 12

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

Accepted Answer

Discount stores reduce costs by offering fewer services and operating in basic, low-cost facilities.

Question 13

Which of the following types of retailers likely requires their employees to focus most on assisting customers as they shop?

Accepted Answer

Full-service retailers, such as department stores, typically require their employees to provide personalized assistance and guidance to customers as they shop. This may include helping customers find products, providing recommendations, and answering questions about products or services.

Question 14

7- Eleven,Stop- N- Go,and Circle K,small stores that traditionally have had a primary market of young,blue- collar men,are examples of .

Accepted Answer

These stores are commonly known as convenience stores, which are small retail establishments known for their extended hours and easy-to-access locations. They cater to consumers who want to make small, quick purchases such as snacks or drinks.

Question 15

You own an independent store in your neighborhood.You still like to offer fresh seafood in your meat display case.Which type of wholesaler might best serve you?

Accepted Answer

Cash-and-carry wholesalers allow the buyer to purchase goods directly from their warehouse and take them away immediately without waiting for delivery, which is particularly useful for a small independent store with a need for fresh seafood.

Question 16

In recent years,_ has been growing fast.This includes selling to final consumers through direct mail,catalogs,telephone,and the Internet.

Accepted Answer

Nonstore retailing refers to selling goods and services outside the traditional retail store environment, including methods like direct mail, catalogs, telephone, and the Internet.

Question 17

A is a group of retail businesses built on a site that is planned,developed,owned,and managed as a unit.

Accepted Answer

A shopping center is a collection of retail businesses that are planned, developed, owned, and managed as a single unit.

Question 18

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

Accepted Answer

Both Costco and Walmart use everyday low pricing strategies to attract customers by offering consistently low prices on their products.

Question 19

Refer to the scenario below to answer the following questions.
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 are intrigued with 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.
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 per customer request.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.
"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."
-Which of the following is most critical to Indiana Wood's success?

Accepted Answer

The answer of Refer to the scenario below to answer...

Question 20

Which type of store carries a wide variety of product lines and differentiates itself through service,but 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?

Accepted Answer

Department stores carry a wide variety of product lines and have traditionally differentiated themselves through service. However, in recent years, they have faced competition from more specialized and flexible specialty stores as well as more efficient, lower-priced discounters, causing them to be squeezed in the middle.

Quiz 13: Retailing and Wholesaling