Question 1

Home Depot Fuel is the name of a chain of convenience stores owned and operated by The Home Depot.These stores typically sell gas and are located just outside The Home Depot warehouse store.What else can you presume about the Home Depot Fuel convenience stores?

Accepted Answer

Convenience stores carry a limited line of high-turnover,high-priced goods and resemble miniature supermarkets.

Question 2

Which of the following environmental trends is most directly influencing supermarket operations?

Accepted Answer

The increasing number of working women and families eating out more is directly influencing supermarket operations as they have to adapt to changes in customer preferences and demand for convenience foods. Supermarkets have to offer more ready-made meals and grab-and-go options to compete with restaurants and satisfy busy customers.

Question 3

Spar is Ireland's largest supermarket chain.Which of the following is the most likely reason that Spar supermarkets sell all types of foodstuffs as well as nonfood products including a wide range of firearms and gun accessories?

Accepted Answer

In many cases,supermarkets offer a wide variety of nontraditional goods and services under one roof (a strategy called scrambled merchandising)to respond to consumers who want convenience.

Question 4

Real Canadian Superstore is a chain of retail outlets in Canada that are described as large,departmentalized,self-service stores that specialize in wide assortments of foodstuffs and limited nonfood items.Real Canadian Superstores would be classified as which of the following?

Accepted Answer

The key factors are the emphasis on food and the size of the stores.

Question 5

Which of the following best describes discount stores?

Accepted Answer

Discount stores have a wider range of merchandise than department stores but less depth in any category

Question 6

Glen's Safety First! sells a huge assortment of firefighting and other safety equipment at greatly reduced prices.It offers customers few services and competes on the basis of moderate to low prices on the large quantities of merchandise it stocks.What is Glen's Safety First! an example of?

Accepted Answer

A specialty discount store (also called a category killer)offers a nearly complete selection of single-line merchandise and uses self-service,discount prices,high volume,and high turnover.

Question 7

Costco,Safeway,Metro,and other supermarket chains offer a variety of nontraditional goods and services such as DVD rental,flower shops,dry cleaning,and banking.What is this practice called?

Accepted Answer

In many cases supermarkets offer a wide variety of nontraditional goods and services under one roof,a strategy called scrambled merchandising.

Question 8

Last year,over two million people visited Wine.com and bought 14,000 different fine wines at discounted prices.Wine.com shipped wine to over 100,000 customers generating more than $30 million in sales.Wine.com has since become the most trafficked wine site in the world.As an online retail operation,how would Wine.com correctly be labelled?

Accepted Answer

Category killers are specialty discount stores that heavily dominate their narrow merchandise category.

Question 9

Why are specialty stores such as Office Depot,Bed Bath & Beyond,and Staples often called category killers?

Accepted Answer

Because these stores dominate their narrow merchandise segment,they are called category killers.

Question 10

According to your textbook,what is one way supermarkets establish long-term relationships with their customers?

Accepted Answer

One of the trends in supermarkets involves taking advantage of growing ethnicity.Also,supermarkets commonly use scrambled merchandising.

Question 11

Wal-mart utilizes a strategy of moderate to low prices on large quantities of products and lower levels of service to stimulate a high turnover of inventory.Wal-mart offers a wide variety of different product lines.What is Wal-mart an example of?

Accepted Answer

Wal-mart is an example of a mass merchandiser, which is a type of retailer that offers a wide variety of products at moderate to low prices with a focus on high turnover of inventory. This strategy is different from specialty stores which offer a narrow range of high-quality products at relatively high prices, or convenience stores which focus on providing easy access to a limited selection of basic necessities. Franchising operations refer to a specific business model where individual entrepreneurs are granted the right to operate under a larger brand name and system.

Question 12

The initial attraction of drugstores for consumers was the pharmaceuticals they carried,but now consumers can have their prescriptions filled at mass merchandisers and supermarkets,and through the mail.What have drugstores done to remain competitive?

Accepted Answer

They have added such services as being open 24 hours a day,seven days a week,and even installed drive-through windows.

Question 13

What is the term for a retail operation that has a 90,000-square-foot facility,that houses a florist,baker,bank,craft shop,photo finisher,dry cleaner,and pharmacy under the same roof as grocery and household items?

Accepted Answer

Supercentres offer an array of products and services,as well as groceries.

Question 14

These self-service stores carry a limited line of high-turnover,high-priced goods and resemble miniature supermarkets.They are typically located near residential areas and are open long hours,seven days a week.What are they?

Accepted Answer

The description matches that of convenience stores, which are known for carrying a limited line of high-turnover, high-priced goods, being open long hours, and being located near residential areas. Specialty stores typically carry a larger range of products in a specific category, wholesale stores require membership and sell to businesses rather than individuals, and factory outlets sell discounted merchandise directly from the manufacturer.

Question 15

What is the term for the retailing strategy of using moderate to low prices on large quantities of products and lower service to stimulate a high turnover of inventory?

Accepted Answer

This describes the strategy of mass merchandising, which involves offering moderate to low prices on a large quantity of products and providing lower levels of service in order to stimulate a high turnover of inventory. This approach is often associated with large discount retailers such as Walmart and Target.

Question 16

Which of the following carry a broad assortment of nationally branded hard goods (broader than a department store)and offer customers very limited service?

Accepted Answer

Full-line discount stores are known for carrying a broad assortment of nationally branded hard goods, ranging from electronics to home appliances, at lower prices than department stores. They offer very limited services, such as restocking shelves and processing purchases, but generally do not offer additional services like personal shopping or alterations. Factory outlets typically specialize in selling a specific brand's goods at discounted prices. Price cut stores focus on offering extremely low prices on a smaller selection of goods, often at the expense of quality. Specialty supercentres, on the other hand, focus on a particular category of goods, such as groceries or home improvement, and offer a wider range of services to customers.

Question 17

Which of the following retailers compete on the basis of low prices,high turnover,and high volume?

Accepted Answer

Discount stores are known for their focus on offering low prices, high turnover, and high volume sales. These retailers often sell a wide variety of products and brands at a discounted price, making them popular among price-conscious consumers. Convenience outlets focus on providing convenience and quick access to essential products, general stores offer a variety of products at a moderate price, and department stores typically offer high-quality products and services, often at a higher price point.

Question 18

Which of the following are single-line stores that offer a nearly complete selection of one line of merchandise and use self-service,discount prices,high volume,and high turnover of merchandise to their advantage?

Accepted Answer

A specialty discount store is also called a category killer.

Question 19

When supermarkets offer a wide variety of nontraditional goods and services under one roof,what are they engaged in?

Accepted Answer

Supermarkets engaged in offering a wide variety of nontraditional goods and services are practicing scrambled merchandising, which means offering unrelated products and services to attract customers to stay longer and spend more in the store. Cross-selling refers to suggesting related products to the customer. Trading up is encouraging customers to upgrade their purchase to a more expensive version of the product. Cross-docking is a supply chain strategy where products are distributed directly from the manufacturer to the retailer without storing them in a warehouse.

Question 20

Why are prices usually higher in convenience stores than in supermarkets?

Accepted Answer

Convenience stores carry a limited amount of high-turnover,high-priced goods and resemble miniature supermarkets.Customers patronize these stores because of convenience.

Quiz 13: Retailing