Question 1

Dina loves branded apparel and accessories but cannot afford to buy them too often. Fortunately, Dina lives close to an off-price retail store that is owned and operated by a famous brand. The company utilizes this store to sell its surplus, discontinued, or irregular goods at significantly lower costs. The retail store is best referred to as a .
A) specialty store
B) superstore
C) category killer
D) power centre
E) factory outlet

Accepted Answer

A factory outlet is a retail store owned by a manufacturer that sells its surplus, discontinued, or irregular goods directly to consumers at reduced prices.

Question 2

Warehouse clubs appeal not only to low-income consumers seeking bargains on bare-bones products but to customers shopping for a wide range of goods, from necessities to extravagances.

Accepted Answer

Warehouse clubs attract a diverse customer base, including both low-income consumers looking for deals and those interested in a variety of products, from basic needs to luxury items.

Question 3

Which contractual system is distinguished by the fact that it is normally based on some unique product or service; method of doing business; or trade name, goodwill, or patent that has been developed?
A) franchise
B) corporate chain
C) voluntary chain
D) warehouse club
E) retailer cooperative

Accepted Answer

A franchise is a contractual system where a franchisor licenses its trade name, business model, and proprietary knowledge to a franchisee, allowing them to operate a business under the established brand and system.

Question 4

An off-price retailing operation that is owned and operated by a manufacturer and normally carries the manufacturer's surplus, discontinued, or irregular goods is called a .
A) warehouse club
B) category killer
C) specialty store
D) superstore
E) factory outlet

Accepted Answer

A factory outlet is a retail store owned by a manufacturer that sells surplus, discontinued, or irregular goods directly to consumers.

Question 5

What is retailing? Explain the concept of shopper marketing.

Accepted Answer

The answer of What is retailing? Explain the concept of...

Question 6

now command about 45 percent of all retail sales in Canada.
A) Factory outlets
B) Joint agreements
C) Franchises
D) Acquisitions
E) Superstores

Accepted Answer

Franchises are a significant part of the retail landscape in Canada, accounting for a large portion of retail sales.

Question 7

A group of independent retailers that bands together to set up a jointly owned, central wholesale operation and conduct joint merchandising and promotion efforts is referred to as a .
A) factory outlet mall
B) voluntary chain
C) corporate chain
D) warehouse club
E) retailer cooperative

Accepted Answer

A retailer cooperative is a group of independent retailers that come together to establish a central wholesale operation and engage in joint merchandising and promotional activities.

Question 8

Crunch and Munch is the country's favourite fast-food vendor of fried chicken. Over the years, the company has diversified into providing a larger variety of snacks like hot dogs, burritos, and burgers, but consumers still consider it the best seller of fried chicken. Many potential investors have approached Crunch and Munch with offers to buy the company, but Crunch and Munch continues to operate through its stores. What is franchising? Why would franchising be a good contractual system for Crunch and Munch?

Accepted Answer

The answer of Crunch and Munch is the country's favourite...

Question 9

Compare and contrast specialty stores and convenience stores.

Accepted Answer

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

Question 10

refer to two or more outlets that are commonly owned and controlled.
A) Warehouse clubs
B) Corporate chains
C) Specialty stores
D) Factory stores
E) Designer shops

Accepted Answer

Corporate chains refer to multiple retail outlets that are commonly owned and controlled by a single organization.

Question 11

A franchise organization is a group of independent retailers who jointly establish a central buying organization and conduct joint promotion efforts.

Accepted Answer

A franchise organization is a system where a franchisor grants a franchisee the right to operate a business using its brand and business model, not a group of independent retailers forming a central buying organization.

Question 12

Winners is a retailer that buys clothing and home products from a variety of brand name manufacturers at less-than-regular wholesale prices and then charges customers less than retail. Winners is an example of a(n) .
A) full-service retailer
B) independent off-price retailer
C) departmental retailer
D) category killer
E) specialty retailer

Accepted Answer

Winners is an independent off-price retailer because it purchases products at lower-than-wholesale prices and sells them at a discount, which is characteristic of off-price retailing.

Question 13

Examples of a service retailer include hotels, airlines, banks, colleges, and many others.

Accepted Answer

Service retailers provide intangible products or services, such as accommodations, transportation, financial services, and education, which are offered by hotels, airlines, banks, and colleges respectively.

Question 14

An off-price retailer buys and sells at lower wholesale prices.

Accepted Answer

Off-price retailers purchase excess inventory from manufacturers at reduced prices and sell them to consumers at lower prices than traditional retail stores.

Question 15

How are retailers classified based on the amount of service they provide to customers? Provide examples of each service level to illustrate your response.

Accepted Answer

The answer of How are retailers classified based on the...

Question 16

Mind and Body Fitness recently entered into a financial agreement that allows 25 independent business people at select locations across the country to set up establishments that offer its holistic services and programs. They include weight-management, group programming, sport-specific training, yoga, Pilates, and nutrition. Which type of contractual retail association does this represent?
A) voluntary chain
B) franchise organization
C) retailer cooperative
D) independent retailer
E) corporate chain

Accepted Answer

This scenario describes a franchise organization, where independent business owners operate under the brand and business model of Mind and Body Fitness, offering its services and programs.

Question 17

Describe superstores, category killers, and service retailers.

Accepted Answer

The answer of Describe superstores, category killers, and service retailers....

Question 18

Foot Locker has mastered online and mobile efforts that link seamlessly with store operations, offering options such as "buy online, ship from store" and "buy online, reserve in store" for pickup. This is an example of .
A) omni-channel retailing
B) web-based retailing
C) in-store ordering with a mobile device
D) digital retailing
E) social media

Accepted Answer

Omni-channel retailing refers to a seamless approach to the consumer experience through all available shopping channels, such as online, mobile, and physical stores, which is exemplified by Foot Locker's integration of online and in-store operations.

Question 19

are off-price retailers that operate in huge facilities offering few frills but ultra-low prices and surprise deals on selected branded merchandise.
A) Superstores
B) Specialty stores
C) Warehouse clubs
D) Convenience stores
E) Department stores

Accepted Answer

Warehouse clubs are off-price retailers that operate in large facilities, offering minimal services but providing low prices and surprise deals on branded merchandise.

Question 20

A convenience store is owned and operated by a manufacturer and normally carries the manufacturer's surplus, discontinued, or irregular goods.

Accepted Answer

A convenience store is typically a small retail business that stocks a range of everyday items such as groceries, snacks, and household products, not specifically surplus or irregular goods from a manufacturer.

Quiz 11: Retailing and Wholesaling

Warehouse clubs appeal not only to low-income consumers seeking bargains on bare-bones products but to customers shopping for a wide range of goods, from necessities to extravagances.

Which contractual system is distinguished by the fact that it is normally based on some unique product or service; method of doing business; or trade name, goodwill, or patent that has been developed?

An off-price retailing operation that is owned and operated by a manufacturer and normally carries the manufacturer's surplus, discontinued, or irregular goods is called a .

What is retailing? Explain the concept of shopper marketing.

now command about 45 percent of all retail sales in Canada.

A group of independent retailers that bands together to set up a jointly owned, central wholesale operation and conduct joint merchandising and promotion efforts is referred to as a .

Compare and contrast specialty stores and convenience stores.

refer to two or more outlets that are commonly owned and controlled.

A franchise organization is a group of independent retailers who jointly establish a central buying organization and conduct joint promotion efforts.

Winners is a retailer that buys clothing and home products from a variety of brand name manufacturers at less-than-regular wholesale prices and then charges customers less than retail. Winners is an example of a(n) .

Examples of a service retailer include hotels, airlines, banks, colleges, and many others.

An off-price retailer buys and sells at lower wholesale prices.

How are retailers classified based on the amount of service they provide to customers? Provide examples of each service level to illustrate your response.

Describe superstores, category killers, and service retailers.

Foot Locker has mastered online and mobile efforts that link seamlessly with store operations, offering options such as "buy online, ship from store" and "buy online, reserve in store" for pickup. This is an example of .

are off-price retailers that operate in huge facilities offering few frills but ultra-low prices and surprise deals on selected branded merchandise.

A convenience store is owned and operated by a manufacturer and normally carries the manufacturer's surplus, discontinued, or irregular goods.