Question 1

You have been hired to be the retail manager for a wealthy lottery winner who wants to open a retail store. Your first task is to design the new product assortment. Why is the product offering so important to the success of the enterprise? What information should you use in selecting the product offering? Should you consider product depth and width when selecting the product offering?

Accepted Answer

The answer of You have been hired to be the...

Question 2

Retailers can position themselves at three levels of service: self- service, limited service and full service. Briefly discuss those levels.

Accepted Answer

The answer of Retailers can position themselves at three levels...

Question 3

A speciality store is not only a type of store, but also a method of retail operation. Describe the speciality store strategy. Then name three speciality stores.

Accepted Answer

The answer of A speciality store is not only a...

Question 4

Franchising is one of the fastest growing forms of retail.

Accepted Answer

Franchising has become one of the fastest growing forms of retail, with many businesses opting for this model to expand their reach and boost sales.

Question 5

Shopping centres have grown from small neighbourhood strips to malls housing 100 or more stores. Their numbers have proliferated and their environments have become more extravagant. What is the likely future of this form of retailing?

Accepted Answer

The answer of Shopping centres have grown from small neighbourhood...

Question 6

As a general rule, discount stores sell sub- standard merchandise using weekly discounts and specials.

Accepted Answer

This statement is a misconception. Discount stores can offer quality merchandise at lower prices due to their business model of selling in bulk and keeping overhead costs low. However, some discount stores may choose to sell lower-quality merchandise to keep prices even lower. It ultimately depends on the individual store and their practices.

Question 7

Retailers may be classified by breadth and depth of their product lines, the amount of service offered and their pricing policies among other characteristics. Describe each of these four variables with examples to illustrate where extremes of each variable may be appropriate.

Accepted Answer

The answer of Retailers may be classified by breadth and...

Question 8

Due to the inroads made by national brand advertisers, consumers can find popular brands in most retail outlets-from department stores through to mass- merchandise discount stores. Thus, it has become more difficult for retailers to differentiate by offering exclusive merchandise. Discuss the ways that retailers can differentiate their outlets from competitors. Use appropriate examples from your own experience to illustrate your answer.

Accepted Answer

The answer of Due to the inroads made by national...

Question 9

Self- service retailing was pioneered during the Great Depression of the 1930s.

Accepted Answer

Self-service retailing, also known as supermarkets, was pioneered during the Great Depression of the 1930s in the United States by chains such as Piggly Wiggly and A&P.

Question 10

Wholesalers rely primarily on sales promotions to achieve their promotional objectives.

Accepted Answer

Wholesalers typically rely more on personal selling and building relationships with their customers, rather than sales promotions, to achieve their promotional objectives.

Question 11

Compare and contrast supermarkets and convenience stores. Name several characteristics of each store in your answer.

Accepted Answer

The answer of Compare and contrast supermarkets and convenience stores....

Question 12

Off- price retailers such as factory outlet stores and outlet malls benefited from the decision of many discount chains to "trade up."

Accepted Answer

When discount chains such as Walmart and Target began to focus on higher-end merchandise, it created an opportunity for off-price retailers to offer lower-priced goods to budget-conscious shoppers. This led to increased traffic and sales at factory outlet stores and outlet malls.

Question 13

Wholesalers are feeling the pressure from a variety of environmental changes including retailers' preference for direct dealing with suppliers and the availability of new technologies for ordering.

Accepted Answer

Wholesalers are indeed feeling pressure from retailers who prefer to deal directly with suppliers, and new technologies that allow for easier and faster ordering processes.

Quiz 14: Retailing and Wholesaling