Question 1

Kohl's, JCPenney, and Bloomingdales are examples of

Accepted Answer

Kohl's, JCPenney, and Bloomingdales are all examples of department stores, which are larger retail stores that offer a wide range of products including clothing, accessories, home goods, and beauty products.

Question 2

If a manufacturer had a full range of products, in a number of container sizes, which kind of store would the company be LEAST likely to choose as a retailing partner?

Accepted Answer

Convenience stores typically have limited space for product offerings and tend to focus on quick and easy purchases rather than a wide variety of products in different sizes. Therefore, a manufacturer with a full range of products in different container sizes would be least likely to choose convenience stores as a retailing partner.

Question 3

If you're a manufacturer, and you want to showcase your product in a store that has a narrow but deep selection of merchandise and where sales associates can assist customers with their selections, you'd likely choose

Accepted Answer

A specialty store has a narrow but deep selection of merchandise and typically focuses on a specific product category, making it an ideal choice for showcasing a specific product as a manufacturer. Additionally, sales associates in specialty stores are knowledgeable about the merchandise and can provide guidance and assistance to customers in making purchasing decisions, which can also benefit the manufacturer.

Question 4

__________ offer a limited assortment of general merchandise at very low prices and are often found in lower-rent locations.

Accepted Answer

Extreme value retailers offer a limited assortment of general merchandise at very low prices and are often found in lower-rent locations. Choice A, department stores, usually offer a wide variety of merchandise at various price points and are typically located in high-traffic areas. Choice B, off-price retailers, offer brand-name merchandise at a discount and are often found in outlet malls or standalone stores. Choice C, discount stores, usually offer a larger assortment of merchandise than extreme value retailers, but still at a lower price point than department stores. Choice E, category specialists, focus on a specific category of merchandise and offer a wide variety within that category, but not necessarily at low prices.

Question 5

Brian, an industrial equipment sales rep, purchases a quick snack to eat on the way to work. He buys lunch while on the road visiting customers and grabs bread and milk on the way home when he stops to buy gas. Brian probably does the majority of this shopping at a

Accepted Answer

Brian's purchases are all related to quick, on-the-go needs, which are typically met by convenience stores. They typically offer a smaller selection of items, but they are located in convenient locations and have extended hours for ease of access.

Question 6

If you walk into a __________ you will likely find a broad variety of merchandise, deep assortment and customer service with everything divided into what appears to be a collection of specialty shops.

Accepted Answer

A department store typically offers a broad variety of merchandise across various categories, with a deep assortment, and organized into smaller specialty shops within the larger store. They are known for providing high levels of customer service.

Question 7

__________ are combating competitive pressures by offering fresh food and healthy fast food, tailoring assortments to local markets, opening locations closer to where consumers work and shop, and adding new services.

Accepted Answer

Convenience stores are offering fresh food and healthy fast food, tailoring assortments to local markets, opening locations closer to where consumers work and shop, and adding new services, in order to combat competitive pressures. Warehouse clubs, supercenters, department stores, and extreme value retailers may also be offering some of these tactics, but the question specifically mentions healthy fast food and proximity to where consumers work and shop, which are more commonly associated with convenience stores.

Question 8

Retailers that offer a broad variety of merchandise, limited services, and low prices are known as

Accepted Answer

Full-line discount stores offer a wide range of merchandise, from clothing to home goods, at low prices. They typically do not offer extensive customer services or specialized products (as seen in home improvement stores or category specialists), but instead focus on providing a large selection of affordable goods.

Question 9

Which of the following represents the BEST reason a manufacturer of high-end products might consider selling products in a warehouse club?

Accepted Answer

The manufacturer overestimated demand or has a great deal of returned merchandise from other retailers.

Question 10

__________ are combating competitive pressures by increasing the amount of exclusive and private label merchandise they sell and expanding their online presence.

Accepted Answer

The answer of __________ are combating competitive pressures by increasing...

Question 11

Compared to conventional supermarkets, warehouse clubs have

Accepted Answer

Warehouse clubs typically have lower levels of service compared to conventional supermarkets. They often require members to retrieve their own products from the shelves and pay for their items at self-checkout stations. While they may have a broader assortment of food items, they typically have slightly higher prices and no products specifically designed for small businesses. However, they may offer lower annual fees compared to conventional supermarkets.

Question 12

Full-line discount, category specialist, and specialty stores are all types of __________ retailers.

Accepted Answer

Full-line discount, category specialist, and specialty stores are all types of general merchandise retailers, which means they offer a wide range of products in various categories.

Question 13

__________ reduce costs and maintain low prices by buying opportunistically from manufacturers with excess inventory, offering limited assortments of household goods and groceries, as well as health and beauty aids.

Accepted Answer

Extreme value retailers reduce costs and maintain low prices by buying opportunistically from manufacturers with excess inventory, offering limited assortments of household goods and groceries, as well as health and beauty aids. Category killers are stores that specialize in a particular category and offer a wide selection of products in that category, such as Home Depot or Toys R Us. Specialty stores are also stores that specialize in a particular category, but usually offer a smaller selection of products in that category. Factory outlets sell discounted merchandise directly from the manufacturer, while convenience stores offer a limited selection of products for quick and easy purchases.

Question 14

__________ distribution intensity helps a seller to maintain a particular image and control the flow of merchandise into an area.

Accepted Answer

Selective distribution is the distribution of products through a limited number of channels or outlets in a particular geographic region, which helps the seller maintain a specific image and control the flow of merchandise into an area. This type of distribution is suitable for products that require special handling, have limited demand, or have a high price. Selective distribution limits the availability of the product, creates a perception of exclusivity, and provides better control over pricing and promotion.

Question 15

If a manufacturer wasn't happy with either intensive or exclusive distribution, a logical choice, which incorporates some features from both, would be __________ distribution.

Accepted Answer

Selective distribution is a distribution strategy that falls somewhere in between intensive and exclusive distribution. It allows the manufacturer to select a small number of retailers or distributors to carry their product, ensuring that the product is still widely available but is not over-distributed. This allows for some control over the brand image and pricing while still reaching a large portion of the market.

Question 16

Of the following retailers, the best example of a category killer is

Accepted Answer

Category killers are retailers that focus on one specific product category and dominate that category in the market. Staples is a good example of a category killer because it focuses on office supplies and dominates that market.

Question 17

Supercenters have become the fastest growing retail category by combining broad assortments of groceries and general merchandise products. __________ dominates this category with the vast majority of supercenters in the United States.

Accepted Answer

The statement clearly mentions that Walmart dominates the supercenter category with the majority of supercenters in the United States. Therefore, option E is the best choice.

Question 18

If you are a marketer for a manufacturer, and the marketing mix for your product focuses on very specific market segments, you'd like to sell your product through

Accepted Answer

Specialty stores cater to very specific market segments, which aligns with the marketing mix of the product. This channel would provide a focused and targeted approach to selling the product, rather than a more general approach through department stores or convenience stores. Category specialist stores may also be a viable option, but specialty stores may have even more of a niche focus. Extreme value retailers may not align with the marketing mix as they typically focus on low pricing rather than specific market segments.

Question 19

Paul's family has owned and operated a small chain of conventional supermarkets for many years. Competition from a variety of other kinds of retailers has adversely affected the business. To address the new competitive reality, Paul wants to apply what he recently learned as a marketing major, and he has recommended that his family's business should

Accepted Answer

Emphasizing fresh, locally sourced perishables will differentiate the business from other retailers and appeal to consumers who prioritize quality and supporting local businesses. It also aligns with current consumer trends towards healthier and more sustainable food choices. Targeting the broadest possible customer base or eliminating customer frills and extras may not be effective differentiation strategies, while offering fewer private label brands or more national brand packaged goods and few perishables may not align with consumer preferences towards local and fresh products.

Question 20

As a type of retailer, category specialists are fierce competitors using

Accepted Answer

Category specialists differentiate themselves by providing a complete assortment in a specific category at low prices, rather than a broad assortment of merchandise. This allows them to become experts in that particular area and offer better prices and selection than general retailers.

Quiz 16: Retailing and Multichannel Marketing