Question 1

A firm that contracts with a parent company to set up a business or retail outlet is called the franchiser.

Accepted Answer

The firm that contracts with a parent company to set up a business or retail outlet is called the franchisee. The franchiser is the parent company or entity that grants the franchisee the right to operate under its brand name and business model.

Question 2

Shopper marketing helps a retailer understand how consumers behave as shoppers in different channels and formats.

Accepted Answer

Shopper marketing is focused on understanding and influencing consumer behavior within the context of their shopping experience, including in-store, online, and other channels. By analyzing data on consumer behavior and preferences across different channels and formats, retailers can develop targeted strategies to improve the shopping experience and drive sales.

Question 3

A retailer's first task in developing a retail strategy is to position the products to differentiate itself from its competitors.

Accepted Answer

The first task in developing a retail strategy is to define the target market and understand customer needs, which then informs product positioning and differentiation.

Question 4

The largest retailers in Canada are predominantly in the food business.

Accepted Answer

According to research from Retail Insider, the largest retailers in Canada by revenue are predominantly in the food business, including Loblaw Companies, Empire Company (which owns Sobeys), and Metro Inc. Other large retailers in Canada include Walmart and Canadian Tire, but their revenue is lower than the top food retailers.

Question 5

Community shopping centres consist of 50 to 150 stores that typically attract customers who live or work within a 5- to 15-kilometre range.

Accepted Answer

Community shopping centres usually have between 20 to 40 stores and are designed to serve a larger area than neighborhood centers, typically attracting customers from a 5- to 10-mile radius.

Question 6

The elements of the retailing mix, product and service considerations, retail pricing, physical location factors, and communications, focus on the consumer.

Accepted Answer

The retailing mix, product and service considerations, retail pricing, physical location factors, and communication strategies all revolve around understanding and meeting the needs of consumers. Therefore, it is true that these elements focus on the consumer.

Question 7

A retailer that moves to 24/7 hours of operation is offering consumers place utility.

Accepted Answer

The answer of A retailer that moves to 24/7 hours...

Question 8

Although franchising increases the parent company's degree of control, it leads to an increase in costs of expansion.

Accepted Answer

Franchising allows for rapid expansion without significant financial investment from the parent company. Franchisees bear most of the costs associated with opening and operating new locations. Therefore, franchising typically results in a decrease in costs of expansion, not an increase. However, the degree of control that the parent company maintains over franchisees may be limited compared to company-owned locations.

Question 9

Stores that carry a large assortment of a related line of items and those that carry numerous items in one primary line of merchandise are often referred to as specialty outlets.

Accepted Answer

Specialty outlets are stores that specialize in a particular line of merchandise, whether it be a related assortment of items or a primary line of goods.

Question 10

Interactive capability of Internet/web-enabled technologies that assist customers to make informed choices is one of the reasons for consumers shopping online.

Accepted Answer

Interactive capability of Internet/web-enabled technologies such as reviews, product comparisons, virtual try-ons, etc. helps customers to make informed choices while shopping online. This is considered as one of the benefits of online shopping.

Question 11

Retailing includes all activities involved with providing goods to consumers and business buyers.

Accepted Answer

Retailing specifically refers to selling goods and services to end consumers for their personal, non-business use. Activities targeting business buyers are part of wholesale, not retailing.

Question 12

Limited service is at the extreme end of the level-of-service continuum because the customer performs many functions and little service is provided by the outlet.

Accepted Answer

The answer of Limited service is at the extreme end...

Question 13

Markets where the lack of consumer knowledge about products and brands will increase the need for a person-to-person approach is likely to promote direct selling.

Accepted Answer

Direct selling relies heavily on personal interactions and relationships between sales representatives and customers. In markets where consumers lack knowledge about products and brands, sales representatives can provide valuable information and build trust through these personal interactions, making direct selling a more effective approach.

Question 14

Understanding the consumption of goods and services has been ignored by traditional marketers, whose focus has been on understanding shoppers.

Accepted Answer

Understanding the consumption of goods and services has actually been a core focus of traditional marketers, as it allows them to create products and design marketing strategies that meet the needs and preferences of consumers.

Question 15

Customers enjoy the advantages of convenience, quality personal service, and lifestyle compatibility through corporate chains.

Accepted Answer

Corporate chains often prioritize efficiency and standardized services over personalized service and lifestyle compatibility, which are more commonly found in small businesses or local establishments.

Question 16

The stores of Farow & Grey's Inc.carry clothing for men, women, and children; cosmetics; and housewares.This variety of different lines that a store carries refers to the depth of product line.

Accepted Answer

The variety of different lines that a store carries refers to the breadth or assortment of the product mix, not the depth. Depth of product line would refer to the range of products within a single line.

Question 17

Form of ownership distinguishes retail outlets based on whether individuals, corporate chains, or contractual systems operate the outlet.

Accepted Answer

Form of ownership is a key factor that differentiates retail outlets. It refers to whether the outlet is owned and operated by individuals, corporate chains, or operates through a contractual system like franchising.

Question 18

Studies reveal that most of the top 10 retailers operate solely in their countries of origin.

Accepted Answer

Many of the top 10 retailers, such as Walmart, Amazon, and IKEA, operate globally, having a significant presence in multiple countries beyond their countries of origin.

Question 19

Offering several unrelated product lines in a single store is referred to as intertype competition.

Accepted Answer

Offering several unrelated product lines in a single store is referred to as intratype competition. Intertype competition refers to competition between different types of stores or businesses.

Question 20

The popularity of vending machines results from products being offered at a lower price than those in stores.

Accepted Answer

Vending machines often charge a premium for the convenience of on-the-go purchasing, resulting in prices that can be higher than those found in traditional stores.

Quiz 11: Retailing and Wholesaling