Question 1

Paul's family has owned and operated a small chain of conventional supermarkets.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 should:

Accepted Answer

Emphasizing products with a high gross margin (A) can help increase profitability, targeting health-conscious and ethnic consumers with products that would appeal to them (B) can attract a growing customer base and provide a competitive advantage, providing a better shopping environment within the store (C) can enhance the customer experience and loyalty, and offering more private label brands (D) can increase customer loyalty and profitability. Therefore, all of these options are reasonable measures for Paul's family to consider to address the new competitive reality.

Question 2

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

Accepted Answer

Convenience stores are the ones that are offering fresh food and healthy fast food, tailoring assortments to local marketing, opening locations closer to where consumers work and shop, and adding new services to combat competitive pressures. Other options such as warehouse clubs, supercenters, department stores, and extreme value retailers do not necessarily focus on offering fresh food and healthy fast food or tailoring assortments to local marketing.

Question 3

__________ are likely to target low-income consumers who demand national brands,but cannot afford to buy large-sized packages.

Accepted Answer

Extreme value retailers are known for targeting low-income consumers who want national brands but cannot afford to buy larger sizes/packages. These retailers offer smaller sizes/packages at lower prices, making it accessible for low-income consumers to purchase their preferred brands.

Question 4

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

The description matches that of a department store which carries a large variety of products across multiple categories and departments, and is known for offering strong customer service. The other options do not necessarily offer as wide of a range of merchandise or the same level of customer service.

Question 5

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

Accepted Answer

Full-line discount stores typically offer a wide variety of merchandise at low prices but may have limited services. Convenience stores offer limited merchandise and services. Home improvement stores and category specialists focus on a specific type of merchandise. Department stores offer a wide variety of merchandise but at higher prices than full-line discount stores.

Question 6

If a food manufacturer had a full range of products,in a number of different containers sizes,which kind of store would the company probably NOT choose as a retailing partner?

Accepted Answer

Convenience stores typically have limited shelf space and tend to prioritize fast-moving, high-volume products. Since a food manufacturer with a diverse range of products and container sizes may require more shelf space than a convenience store may be able to offer, it is less likely to choose a convenience store as a retailing partner. The other options, such as conventional supermarkets, supercenters, and warehouse clubs, are better suited for carrying a wider variety of products and container sizes.

Question 7

__________ reduce costs and maintain low prices by buying opportunistically from manufacturers with excess inventory,offering limited assortments and operating in low-rent locations.

Accepted Answer

Extreme value retailers are known for their ability to reduce costs by purchasing from manufacturers with excess inventory and operating in low-rent locations, which allows them to maintain low prices. They also typically offer limited assortments to further reduce costs. Category killers, specialty stores, factory outlets, and convenience stores do not necessarily share the same cost-cutting strategies.

Question 8

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

Accepted Answer

Category specialists focus on offering a complete assortment in a specific category at low prices. While some category specialists may also have a broad assortment of merchandise and highly trained personnel, their core strategy is to dominate a specific category by offering the best selection and competitive pricing. Highly attractive loyalty programs may also be a factor, but not necessarily a defining characteristic of category specialists. Therefore, choice C is the best answer.

Question 9

Off-price retailers can purchase merchandise at one-fifth to one-fourth of the original wholesale prices because they do not ask the suppliers for __________.

Accepted Answer

Off-price retailers can purchase merchandise at significantly reduced prices because they do not request advertising allowances, return privileges, markdown adjustments, or delayed payments from suppliers, allowing them to buy at a fraction of the original wholesale cost.

Question 10

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 is a retail store that specializes in a particular product category and offers a deep selection of merchandise. This type of store tends to have knowledgeable sales associates who can assist customers with their selections, which would be beneficial for a manufacturer showcasing their product.

Question 11

__________ offer general merchandise at lower prices and are often found in lower-income urban and rural areas.

Accepted Answer

The answer of __________ offer general merchandise at lower prices...

Question 12

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 would be the best choice for a product with a very specific focus on market segments. These stores typically cater to a niche market and have a more targeted customer base, allowing for a better fit and potential success for the product being marketed.

Question 13

Category killers are also known as:

Accepted Answer

Category killers typically refer to big-box retailers that specialize in one product category and offer an extensive range of products within that category at low prices. Full-line discount stores, specialty stores, warehouse clubs, and extreme value retailers may offer a wide range of products, but they do not necessarily dominate a particular category and may not offer the same level of specialization and depth of assortment as category killers.

Question 14

Compared to conventional supermarkets,warehouse clubs have:

Accepted Answer

Warehouse clubs usually offer an irregular assortment of food and general merchandise, tend to have lower levels of service, and focus on providing lower prices. They also typically sell products for both consumers and small businesses. Therefore, all the given choices are correct.

Question 15

Supercenters have become the fastest growing retail category by combining broad assortments of groceries and general merchandise products.__________ dominates this category with more than 80 percent of the supercenters in the United States.

Accepted Answer

The statement directly states that Walmart dominates the supercenter category with more than 80 percent of the supercenters in the United States. Therefore, the best choice is E, Walmart.

Question 16

Kohl's,JCPenney,and Bloomingdales are examples of:

Accepted Answer

Kohl's, JCPenney, and Bloomingdales are all examples of department stores, which offer a wide range of products across categories such as clothing, cosmetics, housewares, and electronics. These stores typically have several departments or sections, each with its own assortment of merchandise and sales staff.

Question 17

Brian,an industrial equipment sales rep,purchases a 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.Brian probably does the majority of this shopping at a:

Accepted Answer

Convenience stores are typically used for quick, small purchases like snacks, lunch, and basic groceries such as bread and milk.

Question 18

__________ are combating competitive pressures by increasing the amount of exclusive and private label merchandise,strengthening customer loyalty programs and expanding their online presence.

Accepted Answer

Department stores are facing intense competition from online retailers and other brick and mortar stores. To combat this pressure, they are increasing the amount of exclusive and private label merchandise to differentiate themselves from other stores. They are also strengthening their customer loyalty programs to retain customers and expanding their online presence to reach a wider audience.

Question 19

A manufacturer of high-end products might consider selling products in a warehouse club if:

Accepted Answer

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

Question 20

The retail category that has experienced sustained growth due to the aging population is:

Accepted Answer

Drugstores offer a variety of products and services that cater to the needs of the aging population, such as prescription medications, health and wellness products, and mobility aids. As the population ages, the demand for these products and services is expected to continue to grow, leading to sustained growth in the drugstore retail category.

Quiz 15: Retailing and Multichannel Marketing