Question 1

Which of the following conditions increases the chances of a retailer opting to be categorized as a self-service retailer?

Accepted Answer

Self-service retailers rely on customers to conduct their own locate-compare-select process, so if customers are willing to do so, it increases the likelihood of a retailer opting for this model. The other options do not necessarily relate to the retailer's decision to be a self-service retailer.

Question 2

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 retailer that specializes in and carries a vast selection of products within a particular product category or line. They often have competitive prices, and because of their extensive selection, they can dominate specific product categories within a geographic region.

Question 3

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

Accepted Answer

Retailing refers to selling products or services to final consumers for personal use. Sole sourcing refers to the process of procuring goods or services from a single supplier, manufacturing refers to the process of creating products, procurement refers to the process of obtaining goods or services, and warehousing refers to the storage of goods.

Question 4

Pawz is a larger retailer that specializes in pet products and services such as pet food, accessories, grooming, toys, and medical treatment. Pawz also has animals available for adoption at all of its many stores located across the nation. Pawz is most likely an example of a ________.

Accepted Answer

Pawz fits the description of a category killer as it specializes in a particular category (pet products and services) and dominates the market in that category.

Question 5

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 some level of sales assistance by carrying shopping goods about which customers need a moderate level of information, but they do not provide the same level of personalized attention or expertise as full-service retailers. Examples include department stores and discount stores.

Question 6

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 other goods at discounted prices to club members.

Question 7

________ refer to retailers that sell standard merchandise at lower prices by accepting lower margins and selling higher volume.

Accepted Answer

Discount stores are retailers that sell standard merchandise at lower prices by accepting lower margins and selling higher volume. Convenience stores are small retailers that cater to the immediate needs of customers such as snacks, drinks, and basic household items. Full-service retailers offer a wider range of services and products and often have higher prices. Designer shops specialize in high-end and luxury products. Specialty stores specialize in a particular category of products such as electronics, books, or sporting goods.

Question 8

A convenience store ________.

Accepted Answer

A convenience store carries a limited line of high-turnover goods for consumer self-service, which means customers can quickly and easily find what they need without requiring full-service customer assistance. The focus is on convenience and speed, rather than a wide range of products or full-service assistance.

Question 9

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

Accepted Answer

Specialty stores typically specialize in carrying a deep assortment of a narrow product line.

Question 10

Allstocks.com is an online retailer that buys furniture, clothing, electronics, and more from a variety of producers at less-than-regular wholesale prices. Allstocks then charges customers less than retail. Allstocks is an example of a(n)________.

Accepted Answer

Allstocks is an example of an independent off-price retailer, as they purchase goods at less-than-regular wholesale prices and sell them to customers for less than retail.

Question 11

Which type of store 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 assortment of food products, nonfood items, and services. They may also have departments for electronics, clothing, and pharmacy services. Discount stores (A) typically focus on offering low prices and may have a smaller selection of products. Specialty stores (B) focus on a specific category of products, such as sporting goods or home decor, and may not offer a large variety of routine food products. Factory outlets (C) typically sell discounted merchandise from a specific brand or manufacturer. Off-price outlets (E) offer discounted merchandise from a variety of brands and manufacturers, but may not offer as many routine food products or services as a superstore.

Question 12

GameStop, a video game retailer, offers a deep assortment of video games and video game consoles. GameStop is best described as a(n)________.

Accepted Answer

GameStop is a specialty store, as it focuses solely on selling video games and related products. It does not offer a wide variety of non-game products like a department store or supermarket, nor does it have a reputation for offering low prices like a discount store or off-price retailer.

Question 13

________ 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 typically buy excess inventory or last season's goods at a discounted price and sell them at a lower price than regular retail stores. They often offer high volume and ultralow prices. Specialty stores focus on a particular type of product or service, convenience stores offer quick and easy purchases for everyday items, designer shops specialize in high-end luxury goods, and full-service retailers offer a range of products and services at regular retail prices.

Question 14

Flax is a chain of stores that carries several product lines including clothing, home furnishings, and household appliances. Each line is operated as a separate department, and employees are available to assist and advise customers in every phase of the shopping process. Flax is most likely a ________.

Accepted Answer

Flax has employees available to assist and advise customers in every phase of the shopping process, indicating it is a full-service retailer. The other options do not fit the description of Flax's business model.

Question 15

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 typically have specialty goods that require customer assistance and have higher operating costs that are reflected in their higher prices. Self-service, convenience, discount, and off-price stores typically have lower operating costs and offer goods that do not require as much customer assistance.

Question 16

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

Accepted Answer

Jones & Company is best described as a department store as it offers a wide range of consumer goods across various categories. A supermarket typically focuses on food and household items, a specialty store specializes in a narrow range of products, a pop-up store is a temporary store, and a category killer is a store that focuses on a specific product category and dominates that category.

Question 17

Customers at Carat, a premium jewellery 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 jewellery are explained to each customer to aid the purchase decision. In this case, Carat is an example of a(n)________.

Accepted Answer

Carat is a full-service retailer as they offer personalized customer service to assist with the purchase decision-making process.

Question 18

Department stores are most likely characterized by ________.

Accepted Answer

Department stores are known for their wide variety of product lines, which can include everything from clothing and accessories to home goods and electronics.

Question 19

Which of the following statements is true of retailing?

Accepted Answer

Retailing involves the sale of goods and services to end consumers, and services like hotels, banks, airlines, restaurants, colleges, and hospitals can also be retailed. The other statements are false: not all retail stores are full-service; a department store has a wide product line with a shallow assortment; supermarkets are not the largest type of retail outlet; and not all retail stores use the everyday low pricing strategy.

Question 20

Specialty stores are characterized by ________.

Accepted Answer

Specialty stores are known for offering a narrow product line (i.e. a limited selection of products) but with deep assortments within that line (i.e. a variety of different styles, colors, etc. within that product category). This focus on a specific product category or niche allows the store to cater to a specific customer base who is passionate about that product.

Quiz 12: Retailing and Wholesaling