Question 1

When off-price retailers obtain too much in-season, high-quality merchandise, tension between them and ____ builds.

Accepted Answer

Off-price retailers such as T.J. Maxx or Ross typically purchase excess inventory or overstock from department stores or other retailers. When they happen to acquire too much high-quality merchandise that is still in-season, this can create tension with the department stores from which they sourced the inventory. The department stores may feel that the off-price retailers are undercutting them and taking away sales, which can strain their relationship.

Question 2

Matt's girlfriend tells him she wants a cashmere sweater for Christmas. Matt 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 is likely to offer a wide selection of high-quality and luxurious fabrics, such as cashmere. They also typically provide excellent customer service, which can be helpful when selecting a gift for someone else.

Question 3

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 called warehouse clubs. This is the most specific and accurate description of the type of retailer described in the question. The other options, such as discount stores or hypermarkets, do not include the requirement of membership or cash-and-carry wholesaling.

Question 4

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. A warehouse showroom typically carries more expensive and specialized products. Catalog showrooms are retail stores that allow customers to shop from catalogs displayed in the store. Category killers are specialty stores that focus on a particular category of merchandise, such as electronics or sporting goods. Hypermarkets are large, combined supermarkets and department stores.

Question 5

A(n) ____ is a very large specialty store that competes on the basis of lower prices and enormous product availability.

Accepted Answer

A category killer is a type of specialty store that offers an extensive selection of merchandise within a particular category, such as electronics or home improvement. They compete on the basis of lower prices and larger product availability compared to traditional specialty stores.

Question 6

Michael's, PetSmart, and Staples are all examples of

Accepted Answer

Michael's, PetSmart, and Staples are all examples of category killers, also known as specialty superstores. These stores specialize in a particular category of merchandise and offer a wide selection at competitive prices, making it difficult for smaller specialty stores to compete.

Question 7

Sam's and Costco are examples of

Accepted Answer

Sam's and Costco are both examples of warehouse clubs, which are retail stores that require members to pay an annual fee in exchange for access to bulk merchandise at discounted prices.

Question 8

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, as these stores often focus on providing low prices through bulk purchasing and limited services.

Question 9

What type of retailers are the primary competitors for specialty retailers?

Accepted Answer

The answer of What type of retailers are the primary...

Question 10

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

Accepted Answer

Specialty retailers typically have a narrow product mix and deep product lines, as they specialize in a particular type of product or category. They often have a smaller selection of items overall, but a greater variety within their chosen niche.

Question 11

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 of locating in huge, low-cost buildings, maintaining large, on-premises inventories, and offering minimum service aligns with the definition of a warehouse showroom.

Question 12

Off-price retailers feature

Accepted Answer

Off-price retailers specialize in offering deep discounts on merchandise, often featuring overstocks or closeouts from other retailers or manufacturers. Due to the focus on offering low prices, customer service may be minimal, and central checkouts are common to maximize efficiency.

Question 13

After shopping in the same store for nearly two hours, Chelsea goes to Burger King for a Whopper, while Cynthia 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

A hypermarket is a large retail space that combines a supermarket and a department store, offering a wide range of products and services, including food, clothing, and other goods, often with additional services like fast food and optical shops.

Question 14

Category killers compete primarily on the basis of

Accepted Answer

The answer of Category killers compete primarily on the basis...

Question 15

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

Accepted Answer

Off-price retailers specialize in buying and reselling manufacturers' seconds, overruns, returns, and off-season production runs at below wholesale prices. They offer deep discounts to consumers on quality merchandise that may not be available at traditional retail stores. Category killers, specialty retailers, hypermarkets, and discount retailers may offer discounted merchandise, but their business models do not specifically focus on buying and reselling these types of products.

Question 16

​Which of the following is an example of a category killer?

Accepted Answer

Toys "R" Us is a classic example of a category killer as it dominates the toy market and possesses a wide range of products, knowledge, and expertise in the industry.

Question 17

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, such as shoes in this case, and offers a wide variety of options within that category. Department stores may offer a variety of products, including shoes, but not necessarily with a focus on a specific category like a specialty retailer. Category killers, also known as big-box stores, focus on dominating a specific category and may offer a wider range of products within that category. Off-price retailers offer discounted merchandise and warehouse showrooms typically require membership to access wholesale products.

Question 18

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

Accepted Answer

Warehouse showrooms are large, low-cost buildings that focus on offering customers a wide selection of products at discounted prices. They typically have large on-premise inventories and minimal services, such as limited or no customer assistance, no shopping bags, and no delivery options. Catalog showrooms, on the other hand, focus on displaying merchandise from catalogs and may offer additional services such as ordering and delivery. Category killers, also known as big box stores, are retailers that dominate a particular category or segment of the market, such as electronics or home improvement. Warehouse clubs, such as Costco, Sam's Club, and BJ's Wholesale, are membership-based stores that offer a limited assortment of goods at low prices for bulk purchase. Display outlets are facilities that showcase products as part of a marketing strategy, rather than a primary retail location.

Question 19

Stores that are in a manufacturers' outlet mall, such as Ralph Lauren, Tommy Hilfiger, Clarks' Shoes, and Samsonite Luggage are most appropriately classified as a(n)

Accepted Answer

The stores in a manufacturers' outlet mall are considered off-price retailers because they sell brand-name merchandise at lower prices than regular retail stores.

Question 20

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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Quiz 15: Retailing, Direct Marketing and Wholesaling