Question 1

Which of the following is a large-scale, members-only, retailer that combines cash-and-carry wholesaling with discount retailing?

Accepted Answer

A warehouse club is a large-scale, members-only retailer that combines cash-and-carry wholesaling with discount retailing. Warehouse showrooms are similar, but not necessarily members-only. Catalog showrooms and category killers typically specialize in certain types of products. Hypermarkets are large-scale retailers that combine grocery and general merchandise retailing.

Question 2

Levitz Furniture locates in huge, low-cost buildings; maintains large, on-premises inventories; and offers minimum service. Levitz is a

Accepted Answer

Levitz Furniture's business model is similar to a warehouse showroom where the focus is on offering low-cost products and maintaining large inventories with minimum service.

Question 3

Which of the following is not a common feature of a warehouse club?

Accepted Answer

Good customer service is not typically a common feature of a warehouse club. These stores often prioritize low prices and bulk items over personalized customer service.

Question 4

After shopping in the same store for nearly two hours, April goes to Burger King for a Whopper, while Sandy goes to the optical shop to see if her contacts are ready. They engage in these activities without leaving the store in which they have been shopping. They are most likely in a

Accepted Answer

Hypermarkets are large retail spaces that combine a supermarket and a department store, allowing customers to purchase a wide variety of goods, including groceries, clothing, and services, all under one roof. This scenario, where April and Sandy can eat at a fast-food restaurant and visit an optical shop without leaving the premises, fits the description of a hypermarket.

Question 5

Off-price retailers feature

Accepted Answer

Off-price retailers are known for offering deep discounts on products, often due to overstocks or discontinued merchandise. They typically have few customer services, such as styling or alterations, and central checkouts to streamline the shopping process.

Question 6

Cindy goes to Walmart and buys some clothing, a DVD, and all the groceries she needs for her family. What type of retailer is this particular Walmart?

Accepted Answer

Walmart is classified as a superstore as it offers a wide range of products including groceries, clothing, electronics, and more. Supermarkets mainly focus on selling groceries, while hypermarkets are larger versions of superstores. Discount stores typically offer products at low prices, and department stores specialize in selling clothing, jewelry, and home goods.

Question 7

A narrow product mix with a deep product line would most likely be carried by

Accepted Answer

Specialty retailers usually have a narrow product mix with a deep product line. They focus on specific product categories and offer a wide variety of products within those categories.

Question 8

Andy's girlfriend tells him she wants a cashmere sweater for Christmas. Andy decides to go to a store that provides the best possible selection of sweaters. His best choice would be to shop at a ____ store.

Accepted Answer

A traditional specialty store would be the best choice for Andy as they specialize in a particular product such as cashmere sweaters and offer the best possible selection. They may also provide personalized service and expertise on the product.

Question 9

Batteries Plus is a chain of small stores that sell a wide variety of batteries for everything from cameras to automobiles. Batteries Plus would best be described as a(n)

Accepted Answer

Batteries Plus specializes in a specific type of product (batteries) and therefore is a single-line retailer.

Question 10

What is the primary distinction between superstores and hypermarkets?

Accepted Answer

Hypermarkets are larger than superstores and typically offer a wider range of products, with deeper product lines in each department. Superstores may offer a wide variety of products, but not as many as hypermarkets, and may not have as deep of a product selection within each department. The other options are either incorrect or not necessarily true for all superstores or hypermarkets.

Question 11

Sam's and Costco are examples of

Accepted Answer

Sam's and Costco are both examples of warehouse clubs, which are membership-based retailers that offer bulk products at discounted prices. Unlike traditional retailers, warehouse clubs often require customers to buy in bulk and may have limited selection in exchange for lower prices.

Question 12

Off-price retailers and category killers are both

Accepted Answer

The answer of Off-price retailers and category killers are both
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Question 13

A store that offers a wide variety of shoes for men, women, and children would most likely be considered a(n)

Accepted Answer

A specialty retailer typically focuses on a specific product category or niche, such as shoes, and offers a wide variety of options within that category. Department stores may offer a variety of products, while category killers typically specialize in one particular category and dominate that market. Off-price retailers typically offer discounted or clearance merchandise, while warehouse showrooms typically offer bulk or discounted goods in a large, warehouse-style setting.

Question 14

Stores that buy manufacturers' seconds, overruns, returns, and off-season production run at below wholesale prices. These firms resell this merchandise to consumers at deep discounts, and are called

Accepted Answer

Off-price retailers buy merchandise at below wholesale prices and then sell it to consumers at deep discounts. This description matches the given definition of the term.

Question 15

Carlos is getting ready to move to campus for his freshman year of college. To get the products he needs for his dorm room, he goes to a store that sells household goods such as plastic containers, sheets, and towels. The store also sells personal items such as shampoo, deodorant, and toothpaste, as well as food products. Carlos has most likely gone to a

Accepted Answer

The store that Carlos went to sells a variety of products including household goods, personal items, and food products. This type of store is commonly known as a superstore, which typically offers a wider variety of products than a discount store or supermarket, but not as many as a department store or warehouse club.

Question 16

Retail facilities located in big, low-cost buildings with large on-premise inventories and minimal services are called

Accepted Answer

Retail facilities located in big, low-cost buildings with large on-premise inventories and minimal services are called warehouse showrooms. Catalog showrooms are retail facilities that display product samples that customers then order from the catalog, while category killers are specialty stores that focus on one particular product category. Warehouse clubs are membership-based stores that sell products in bulk at discounted prices. Display outlets are retail facilities that showcase goods and provide information but do not sell directly to customers.

Question 17

Retailers that sell only to members and feature discount retailing combined with cash-and-carry wholesaling are called

Accepted Answer

Retailers that sell only to members and feature discount retailing combined with cash-and-carry wholesaling are warehouse clubs. Examples include Costco and Sam's Club.

Question 18

Which type of retail outlet can have up to 200,000 square feet?

Accepted Answer

Superstores are large retail outlets that typically have a sales area of between 60,000 and 200,000 square feet. This size allows them to offer a wide range of products and services, such as groceries, electronics, clothing, and home goods, all under one roof. Superstores are commonly found in suburban areas and are designed to attract customers who are looking for convenience, selection, and competitive pricing.

Question 19

A large retailer selling food and most routinely purchased consumer products is a

Accepted Answer

The answer of A large retailer selling food and most...

Question 20

Kroger, Safeway, and Publix are all considered

Accepted Answer

Kroger, Safeway, and Publix are all supermarkets, which offer a wider range of food and household items compared to convenience stores or department stores. They are also larger in size than most food stores.

Quiz 14: Retailing, Direct Marketing, and Wholesaling