Question 1

Off-price retailers buy at less-than-regular wholesale prices and charge consumers less than retail.

Accepted Answer

Off-price retailers specialize in purchasing products in large quantities from manufacturers and wholesalers at discounted prices. These retailers then pass on the savings to their customers by charging less than traditional retail prices. As a result, customers can often find high-quality products at lower prices than they would pay at regular retail stores.

Question 2

Venns is a chain of department stores that has become more focused and stocks only exclusive labels of designer home accessories now.Venns has transformed itself into a chain of pop-up stores.

Accepted Answer

There is no information provided that Venns has transformed into a chain of pop-up stores; it only mentions a focus on exclusive designer home accessories.

Question 3

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

Accepted Answer

In a retailer cooperative, independent retailers come together to form a central buying operation and engage in joint promotional efforts to increase their market power and competitiveness. This allows them to pool their resources and negotiate better deals with suppliers and manufacturers, while also benefiting from shared marketing and advertising campaigns.

Question 4

Today's large and progressive wholesalers have successfully reacted to rising costs by ________.

Accepted Answer

Investing in information technology systems has helped wholesalers to automate processes and streamline operations, reducing costs and increasing efficiency. This has allowed them to be competitive in a market where costs are rising. Relocating or reducing promotional activities may not be sustainable solutions, eliminating brokers and agents may limit their reach in the market, and increasing markup while lowering status of operations may not be a viable long-term strategy.

Question 5

In recent years,convenience stores have redesigned their stores to closely focus on serving their primary target market which includes young,blue-collar men.

Accepted Answer

The passage states that convenience stores have redesigned their stores to closely focus on serving their primary target market, which includes young, blue-collar men. This means that the stores are not focused on serving other target markets, such as women or older people.

Question 6

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

Accepted Answer

Shopper marketing is all about designing marketing strategies that lead to shoppers becoming buyers at the point of sale. This can include everything from developing the right products, to creating effective promotions and merchandising techniques that catch the shopper's eye and help influence their purchasing decisions.

Question 7

Bensons is a specialty store selling the finest home linen made from raw materials imported from Asian countries.Bensons pricing decision would be aimed at low markups on a high volume of products they retail.

Accepted Answer

The statement mentions the use of raw materials imported from Asian countries, which suggests that the cost of production may be relatively high. Additionally, the mention of "finest home linen" may also suggest a higher quality product. Therefore, Bensons may need to use higher markups to generate a profit, rather than relying on low markups and high volume.

Question 8

PennyLane Retailers believe in a do-it-yourself approach and their stores are designed for consumers who are willing to perform their own locate-compare-select process.PennyLane Retailers provide an example of full-service retailers.

Accepted Answer

The statement is contradictory. If PennyLane Retailers advocate for a do-it-yourself approach, they cannot be considered full-service retailers, as full-service retailers provide assistance and guidance to consumers throughout the shopping process.

Question 9

Casey's is a large supermarket that practices everyday low pricing and thus,consumers should expect few discounts or sales if shopping at Casey's regularly.

Accepted Answer

The statement mentions that Casey's practices everyday low pricing, which means that there are fewer discounts or sales offered regularly. Therefore, the statement is true.

Question 10

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

Accepted Answer

Category killers are known for carrying a large selection of a specific product line and staff members who are experts in that category.

Question 11

Manufacturers' agents are ________.

Accepted Answer

Manufacturers' agents are independent intermediaries who are hired by multiple manufacturers to represent their products in a particular territory or market. They are commonly used by manufacturers of complementary lines who cannot afford their own field sales force. Manufacturers' agents are paid on commission and work on behalf of the manufacturers to promote and sell their products to wholesalers, retailers, and end consumers.

Question 12

Whereas value-retail centers consist primarily of manufacturers' outlets,outlet malls combine manufacturers' outlets with off-price retail stores and department store clearance outlets.

Accepted Answer

The answer of Whereas value-retail centers consist primarily of manufacturers'...

Question 13

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

Accepted Answer

The answer of Corporate chains are located near a residential...

Question 14

Will Jenks is a wholesaler who sells the produce of farmers who do not want to sell their own output.He transports large amounts of agricultural commodities to a central market,sells it for the best price,deducts an amount for his effort and expenses,and remits the balance to the producers.Will Jenks is a(n)________.

Accepted Answer

Will Jenks is essentially acting as an intermediary between the farmers and the central market, earning a commission for his services. This is the exact definition of a commission merchant in the wholesale industry.

Question 15

Specialty stores carry several product lines,while a narrow product line with a deep assortment is a feature of discount stores.

Accepted Answer

Specialty stores focus on a narrow product line with a deep assortment, while discount stores typically carry a wide range of product lines at lower prices.

Question 16

The retailer's product assortment should differentiate the retailer while matching target shoppers' expectations.

Accepted Answer

It is important for the retailer's product assortment to stand out and differentiate them from competitors while also meeting the expectations of their target shoppers. This can help attract and retain customers.

Question 17

Retailing includes all the activities involved in selling products or services for industrial and business use.

Accepted Answer

Retailing is actually focused on selling products or services directly to consumers for personal or household use. Selling products or services for industrial and business use falls under the umbrella of business-to-business (B2B) marketing.

Question 18

Retailers must first segment and define their target markets and then decide how they will position themselves in these markets.

Accepted Answer

This statement is true. Retailers need to understand their target markets and then position themselves accordingly in order to effectively market their products and services. Without segmenting and defining their target markets, retailers may struggle to reach their desired audience and effectively differentiate themselves from competitors.

Question 19

Independent off-price retailers purchase merchandise at rates that are susbtantially higher than the regular wholesale rates.

Accepted Answer

Independent off-price retailers purchase merchandise at discounted wholesale rates, which are lower than regular wholesale rates. This allows them to sell the merchandise at a discounted price to consumers while still making a profit.

Question 20

JP Wholesalers is one of the largest wholesalers of wooden furnishings in the country.Recently,the company opened a chain of stores called JP Designer Homes that became popular owing to the good reputation the company had as a wholesaler.The company then began acquiring smaller retail chains and consolidated its position in the market.Which of the following trends is reflected in this scenario?

Accepted Answer

JP Wholesalers, traditionally a wholesaler, is expanding into retail by opening its own stores and acquiring retail chains, thus blurring the lines between wholesaling and retailing.

Quiz 11: Retailing and Wholesaling