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Chapter 11 retailing and wholesaling
Marketing (MGT2020)
University of Lethbridge
Related Studylists
MKTG-1102-ESSENTIALS OF MARKETINGPreview text
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Marketing: An Introduction, 13e (Armstrong) Chapter 11 Retailing and Wholesaling
________ refers to the activities involved in selling products or services directly to final consumers for their personal, nonbusiness use. A) Sole sourcing B) Retailing C) Manufacturing D) Procurement E) Warehousing Answer: B Diff: 1 LO: 11-1: Explain the role of retailers in the distribution channel and describe the major types of retailers.
________ builds around what P&G calls the "First Moment of Truth" — the critical three to seven seconds that a shopper considers a product on a store shelf. A) Internal marketing B) Sole sourcing C) Warehousing D) Test marketing E) Shopper marketing Answer: E Diff: 2 LO: 11-1: Explain the role of retailers in the distribution channel and describe the major types of retailers. AACSB: Analytical thinking
________ creates a seamless cross-channel buying experience that integrates in-store, online, and mobile shopping. A) Shopper marketing B) Omni-channel retailing C) Test marketing D) Online marketing E) Consolidation marketing Answer: B Diff: 2 LO: 11-1: Explain the role of retailers in the distribution channel and describe the major types of retailers.
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Stores that provide moderate sales assistance because they carry shopping goods about which customers need a moderate level of information are called ________ retailers. A) self-service B) full-service C) off-price D) limited-service E) convenience Answer: D Diff: 2 LO: 11-1: Explain the role of retailers in the distribution channel and describe the major types of retailers.
Which types of stores are characterized by specialty goods for which customers need assistance and higher operating costs that are passed along to customers as higher prices? A) self-service stores B) convenience stores C) full-service stores D) discount stores E) off-price stores Answer: C Diff: 2 LO: 11-1: Explain the role of retailers in the distribution channel and describe the major types of retailers.
Food Galore is a regional chain of supermarkets in the Midwest. The primary role of the staff is to restock shelves and operate cash registers. Customers locate, compare, and select their groceries and other sundry items. Food Galore is most likely a ________. A) self-service retailer B) category killer C) full-service retailer D) supermarket E) pop-up store Answer: A Diff: 2 LO: 11-1: Explain the role of retailers in the distribution channel and describe the major types of retailers. AACSB: Analytical thinking
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Specialty stores are characterized by ________. A) the sale of convenience and staple items B) narrow product lines with deep assortments C) a wide range of products and categories D) low prices on a wide range of goods E) routinely purchased food products and services Answer: B Diff: 2 LO: 11-1: Explain the role of retailers in the distribution channel and describe the major types of retailers.
Department stores are most likely characterized by ________. A) narrow product lines B) specialty goods and services C) predatory pricing strategies D) deep assortments of luxury brands E) wide varieties of product lines Answer: E Diff: 2 LO: 11-1: Explain the role of retailers in the distribution channel and describe the major types of retailers.
Jones & Company, a major retail chain across the United States, offers a wide range of consumer goods such as clothing, furniture, home appliances, cosmetics, jewelry, and food. Jones & Company is best described as a ________. A) supermarket B) department store C) specialty store D) pop-up store E) category killer Answer: B Diff: 2 LO: 11-1: Explain the role of retailers in the distribution channel and describe the major types of retailers. AACSB: Analytical thinking
A convenience store ________. A) markets to segments comprised mostly of white-collar workers B) stocks narrow product lines that have wide, deep assortments C) carries a limited line of high-turnover goods for consumer self-service D) involves high operation costs due to full-service customer assistance E) is a multi-channel food and discount retailer that targets niche markets Answer: C Diff: 2 LO: 11-1: Explain the role of retailers in the distribution channel and describe the major types of retailers.
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Which type of retailer is much larger than a regular supermarket and offers a large assortment of routinely purchased food products, nonfood items, and services? A) discount stores B) specialty stores C) factory outlets D) superstores E) off-price outlets Answer: D Diff: 1 LO: 11-1: Explain the role of retailers in the distribution channel and describe the major types of retailers.
Which term refers to a giant specialty store with a very deep assortment of a particular product line? A) category killer B) convenience store C) factory outlet D) department store E) independent store Answer: A Diff: 1 LO: 11-1: Explain the role of retailers in the distribution channel and describe the major types of retailers.
Office Solutions is a large retailer that specializes in office products and services. Their offerings include a wide and deep assortment of computers, desk furniture, printers, office supplies, stationery, and printing. Office Solutions is most likely an example of a ________. A) convenience store B) pop-up store C) category killer D) lifestyle center E) supermarket Answer: C Diff: 3 LO: 11-1: Explain the role of retailers in the distribution channel and describe the major types of retailers. AACSB: Analytical thinking
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Kids is an online retailer that buys clothing from a variety of brand name manufacturers at less-than-regular wholesale prices and then charges customers less than retail. Kids is an example of a(n) ________. A) specialty retailer B) independent off-price retailer C) departmental retailer D) full-service retailer E) category killer Answer: B Diff: 2 LO: 11-1: Explain the role of retailers in the distribution channel and describe the major types of retailers. AACSB: Analytical thinking
An off-price retailing operation that is owned and operated by a manufacturer and normally carries the manufacturer's surplus, discontinued, or irregular goods is called a ________. A) category killer B) factory outlet C) specialty store D) superstore E) warehouse club Answer: B Diff: 1 LO: 11-1: Explain the role of retailers in the distribution channel and describe the major types of retailers.
Dina loves branded apparel and accessories but cannot afford to buy them too often. Fortunately, Dina lives close to an off-price retail store that is owned and operated by a famous brand. The company utilizes this store to sell its surplus, discontinued, or irregular goods at significantly lower costs. The retail store is best referred to as a ________. A) category killer B) factory outlet C) specialty store D) superstore E) power center Answer: B Diff: 3 LO: 11-1: Explain the role of retailers in the distribution channel and describe the major types of retailers. AACSB: Analytical thinking
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________ are off-price retailers that operate in huge facilities offering few frills but ultra-low prices and surprise deals on selected branded merchandise. A) Warehouse clubs B) Department stores C) Convenience stores D) Specialty stores E) Superstores Answer: A Diff: 1 LO: 11-1: Explain the role of retailers in the distribution channel and describe the major types of retailers.
________ refer to two or more outlets that are commonly owned and controlled. A) Corporate chains B) Factory stores C) Specialty stores D) Designer shops E) Warehouse clubs Answer: A Diff: 1 LO: 11-1: Explain the role of retailers in the distribution channel and describe the major types of retailers.
A group of independent retailers that bands together to set up a jointly owned, central wholesale operation and conduct joint merchandising and promotion efforts is referred to as a ________. A) factory outlet mall B) retailer cooperative C) corporate chain D) warehouse club E) voluntary chain Answer: B Diff: 2 LO: 11-1: Explain the role of retailers in the distribution channel and describe the major types of retailers.
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Shopper marketing involves focusing the entire marketing process — from product and brand development to logistics, promotion, and merchandising — toward turning shoppers into buyers at the point of sale. Answer: TRUE Diff: 1 LO: 11-1: Explain the role of retailers in the distribution channel and describe the major types of retailers.
Omni-channel retailing creates a seamless cross-channel buying experience that includes in- store and online shopping but excludes mobile. Answer: FALSE Diff: 2 LO: 11-1: Explain the role of retailers in the distribution channel and describe the major types of retailers.
Convenience stores are the most frequently visited type of retail store. Answer: FALSE Diff: 2 LO: 11-1: Explain the role of retailers in the distribution channel and describe the major types of retailers.
Venns is a chain of department stores that has become more focused in recent years and now stocks only exclusive labels of designer home accessories. Venns has transformed itself into a chain of pop-up stores. Answer: FALSE Diff: 2 LO: 11-1: Explain the role of retailers in the distribution channel and describe the major types of retailers. AACSB: Analytical thinking
Service retailers in the United States are growing faster than product retailers. Answer: TRUE Diff: 2 LO: 11-1: Explain the role of retailers in the distribution channel and describe the major types of retailers.
Category killers are superstores that carry a deep assortment of a particular product line. Answer: TRUE Diff: 1 LO: 11-1: Explain the role of retailers in the distribution channel and describe the major types of retailers.
The three types of off-price retailers are: independents, factory outlets, and corporate chains. Answer: FALSE Diff: 2 LO: 11-1: Explain the role of retailers in the distribution channel and describe the major types of retailers.
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Independent off-price retailers purchase merchandise at rates that are substantially higher than regular wholesale rates. Answer: FALSE Diff: 1 LO: 11-1: Explain the role of retailers in the distribution channel and describe the major types of retailers.
Factory outlet malls combine manufacturers' outlets with off-price retail stores and department store clearance outlets. Answer: FALSE Diff: 2 LO: 11-1: Explain the role of retailers in the distribution channel and describe the major types of retailers.
Voluntary chains are normally based on one unique product or a specific trade name. Answer: FALSE Diff: 1 LO: 11-1: Explain the role of retailers in the distribution channel and describe the major types of retailers.
In a retailer cooperative, independent retailers band together to set up a jointly owned, central wholesale operation and conduct joint merchandising and promotion efforts. Answer: TRUE Diff: 1 LO: 11-1: Explain the role of retailers in the distribution channel and describe the major types of retailers.
What is retailing? Explain the concept of shopper marketing. Answer: Retailing includes all the activities involved in selling products or services directly to final consumers for their personal, nonbusiness use. Many institutions — manufacturers, wholesalers, and retailers — do retailing. But most retailing is done by retailers, businesses whose sales come primarily from retailing. Retailing plays a very important role in most marketing channels. Last year, retailers accounted for more than $5 trillion of sales to final consumers.
Many marketers are now embracing the concept of shopper marketing, focusing the entire marketing process — from product and brand development to logistics, promotion, and merchandising — toward turning shoppers into buyers as they approach the point of sale. Of course, every well-designed marketing effort focuses on customer buying behavior. What differentiates the concept of shopper marketing is the suggestion that these efforts should be coordinated around the shopping process itself. Diff: 2 LO: 11-1: Explain the role of retailers in the distribution channel and describe the major types of retailers.
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Describe superstores, category killers, and service retailers. Answer: Superstores are much larger than regular supermarkets and offer a large assortment of routinely purchased food products, nonfood items, and services. Walmart, Target, Meijer, and other discount retailers offer supercenters, very large combination food and discount stores. Recent years have also seen the rapid growth of superstores that are actually giant specialty stores, the so-called category killers (e., Best Buy, Home Depot, Petco, and Bed, Bath & Beyond). They feature stores the size of airplane hangars that carry a very deep assortment of a particular line. Category killers are found in a wide range of categories, including electronics, home-improvement products, books, baby gear, toys, home goods, party goods, sporting goods, and even pet supplies. Finally, for many retailers, the product line is actually a service. Service retailers include hotels and motels, banks, airlines, restaurants, colleges, hospitals, movie theaters, tennis clubs, bowling alleys, repair services, hair salons, and dry cleaners. Diff: 2 LO: 11-1: Explain the role of retailers in the distribution channel and describe the major types of retailers.
Describe the differences between discount stores and off-price retailers. Answer: A discount store sells standard merchandise at low prices by accepting lower margins and selling a higher volume. The early discount stores cut expenses by offering few services and operating in warehouse-like facilities in low-rent, heavily traveled districts. Today's discounters have improved their store environments and increased their services, while at the same time keeping prices low through lean, efficient operations. Off-price retailers can be found in all areas, from food, clothing, and electronics to no-frills banking and discount brokerages. Off- price retailers buy at less-than-regular wholesale prices and charge consumers less than retail. Diff: 2 LO: 11-1: Explain the role of retailers in the distribution channel and describe the major types of retailers.
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Crunch and Munch is the country's favorite fast-food vendor of fried chicken. Over the years, the company has diversified into providing a larger variety of snacks like hot dogs, burritos, and burgers, but consumers still consider it the best seller of fried chicken. Many potential investors have approached Crunch and Munch with offers to buy the company, but Crunch and Munch continues to operate through its stores. What is franchising? Why would franchising be a good contractual system for Crunch and Munch? Answer: A franchise is a contractual association between a manufacturer, wholesaler, or service organization and an independent businessperson who buys the right to own and operate one or more units within the franchise system. The main difference between franchise organizations and other contractual systems (voluntary chains and retail cooperatives) is that franchise systems are normally based on some unique product or service; a method of doing business; or the trade name, goodwill, or patent that the franchisor has developed. Franchising has been prominent in fast-food restaurants, motels, health and fitness centers, auto sales and service dealerships, and real estate agencies. Since Crunch and Munch enjoys the position of being a favorite among consumers, franchising is a good tool to capitalize on its reputation without losing its identity. Diff: 3 LO: 11-1: Explain the role of retailers in the distribution channel and describe the major types of retailers. AACSB: Application of knowledge
What is the difference between corporate chains, voluntary chains, and retailer cooperatives? How are such retail organizations different from franchise organizations? Answer: Corporate chains are two or more outlets that are commonly owned and controlled. They have many advantages over independents. Their size allows them to buy in large quantities at lower prices and gain promotional economies. They can hire specialists to deal with areas such as pricing, promotion, merchandising, inventory control, and sales forecasting. A voluntary chain is a wholesaler-sponsored group of independent retailers that engages in group buying and common merchandising. The other type of contractual association is the retailer cooperative — a group of independent retailers that bands together to set up a jointly owned, central wholesale operation and conduct joint merchandising and promotion efforts. The main difference between franchise organizations and other contractual systems is that franchise systems are normally based on some unique product or service; a method of doing business; or the trade name, goodwill, or patent that the franchisor has developed. Diff: 2 LO: 11-1: Explain the role of retailers in the distribution channel and describe the major types of retailers.
What is most likely the first major marketing decision that a retailer must take? A) positioning B) targeting C) segmentation D) differentiation E) promoting Answer: C Diff: 1 LO: 11-2: Describe the major retailer marketing decisions.
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The Toby's chain of first-class department stores carries a wide range of product lines, including clothing, jewelry, kitchenware, and home furnishings. Toby's typically charges higher prices on an everyday basis and then holds frequent sales and price promotions to increase store traffic. Toby's most likely uses ________. A) self-service retailing B) experiential retailing C) high-low pricing D) everyday low pricing E) franchise retailing Answer: C Diff: 3 LO: 11-2: Describe the major retailer marketing decisions. AACSB: Analytical thinking
Charging higher prices on an everyday basis, coupled with frequent sales and other price promotions to increase store traffic, create a low-price image, or attract customers who will buy other goods at full prices is referred to as ________ pricing. A) category killer B) discount C) high-low D) every day low E) predatory Answer: C Diff: 3 LO: 11-2: Describe the major retailer marketing decisions.
A ________ refers to a group of retail businesses built on a site that is planned, developed, owned, and managed as a unit. A) pop-up store B) shopping center C) warehouse D) category killer E) convenience store Answer: B Diff: 1 LO: 11-2: Describe the major retailer marketing decisions.
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Which of the following statements is true of shopping centers? A) Most shopping centers function at the regional level rather than at the neighborhood level. B) Shopping centers typically contain only those stores that target a niche market segment of high income groups. C) Shopping centers are groups of retail businesses built on a site that is planned, developed, owned, and managed as a unit. D) Shopping centers usually contain exclusive brands and specialty stores rather than convenience stores or department stores. E) Shopping centers are huge superstores that offer a deep assortment of a particular product line. Answer: C Diff: 2 LO: 11-2: Describe the major retailer marketing decisions.
A ________ contains between 15 and 50 retail stores, including a department or variety store, a supermarket, specialty stores, professional offices, and sometimes a bank. A) community shopping center B) warehouse club C) superstore D) neighborhood shopping center E) regional shopping mall Answer: A Diff: 1 LO: 11-2: Describe the major retailer marketing decisions.
Power centers are characterized by the ________. A) lack of an anchor store B) sale of exclusive brands only C) provision of individual entrances to each store D) provision for nonretail activities, such as playgrounds E) absence of any pricing strategies for differentiation Answer: C Diff: 2 LO: 11-2: Describe the major retailer marketing decisions.
A ________ is a small open-air mall with upscale stores, convenient locations, and nonretail activities such as a playground, hotel, dining establishments, and a movie theater. A) regional shopping center B) lifestyle center C) community shopping center D) power center E) warehouse club Answer: B Diff: 1 LO: 11-2: Describe the major retailer marketing decisions.
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Describe the promotion tools used by retailers. Answer: Retailers use any or all of the five promotion tools — advertising, personal selling, sales promotion, public relations (PR), and direct marketing — to reach consumers. They advertise in newspapers and magazines and on radio, television, and the Internet. Advertising may be supported by newspaper inserts and catalogs. Store salespeople greet customers, meet their needs, and build relationships. Sales promotions may include in-store demonstrations, displays, sales, and loyalty programs. PR activities, such as new-store openings, special events, newsletters and blogs, store magazines, and public service activities, are also available to retailers. Most retailers also interact digitally with customers via Web sites and digital catalogs, online ads and video, social media, mobile ads and apps, blogs, and e-mail. Almost every retailer, large or small, maintains a full social media presence. Diff: 2 LO: 11-2: Describe the major retailer marketing decisions.
Three types of shopping centers are regional shopping centers, community shopping centers, and neighborhood shopping centers or strip malls. Describe how they differ from each other. Answer: Regional shopping centers are the largest and most dramat ic shopping centers. They contain from 50 to more than 100 stores. They are like covered mini-downtowns and attract customers from a wide area. Smaller than regional shopping centers, community shopping centers contain between 15 and 50 stores. They normally contain a branch of a department store or variety store, a supermarket, specialty stores, professional offices, and sometimes a bank. Smaller still are neighborhood shopping centers or strip malls, which generally contain 5 to 15 stores. They are close and convenient for consumers, usually containing a supermarket, a discount store, and several service stores. Diff: 2 LO: 11-2: Describe the major retailer marketing decisions.
Which of the following is an impact of the Great Recession on retailing trends? A) economic shift toward higher prices B) lower costs for retailers C) tighter consumer spending patterns D) longer retail life cycles E) prohibition on new retail forms Answer: C Diff: 2 LO: 11-3: Discuss the major trends and developments in retailing.
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Carleese, a leading fashion brand, sets up small temporary boutiques across numerous locations during its year-end sale, promoting its outdated products at half the price. These temporary boutiques are referred to as ________. A) power centers B) franchises C) shopping centers D) pop-up stores E) category killers Answer: D Diff: 3 LO: 11-3: Discuss the major trends and developments in retailing. AACSB: Analytical thinking
Retail convergence most likely leads to ________. A) reduced differentiation B) reduced competition C) increased sales D) increased profit margins E) reduced advertising costs Answer: A Diff: 2 LO: 11-3: Discuss the major trends and developments in retailing.
Grace and her fiancé visit several furniture stores in and around their hometown of Milwaukee. They use their smartphones to capture information about manufacturers and pricing, and ultimately decide to purchase their favorite items online. This is referred to as ________. A) warehousing B) wholesaling C) retailing D) franchising E) showrooming Answer: E Diff: 1 LO: 11-3: Discuss the major trends and developments in retailing. AACSB: Analytical thinking
According to the text, today's large and progressive wholesalers have successfully reacted to rising costs by ________. A) relocating to low-rent, low-tax areas B) investing in information technology systems C) eliminating the need for brokers and agents D) increasing customer service responsibilities E) reducing promotional and personal selling activities Answer: B Diff: 2 LO: 11-3: Discuss the major trends and developments in retailing.
Chapter 11 retailing and wholesaling
Course: Marketing (MGT2020)
University: University of Lethbridge
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