Chapter 12:

What are two examples of "soft goods" sold by mass-merchandisers? (Check all that apply.) Housewares Clothing Groceries Automobiles

Housewares Clothing

General stores

Early retailers that carried anything they could sell in reasonable volume.

After Kroger installed a system to track when more than two customers are waiting in line, it managed to reduce checkout line wait times to _____. Multiple choice question. less than 30 seconds no more than six minutes one minute about four minutes

less than 30 seconds

In the United States, manufacturers' sales branches are classified as _____. Multiple choice question. wholesalers convenience stores showrooms mass-marketers

wholesalers

Scrambled merchandising

Retailers carrying any product lines they think they can sell profitably.

Mass-merchandising concept

The idea that retailers should offer low prices to get faster turnover and greater sales volume by appealing to larger numbers.

What are some of the advantages of limited-line retailers? (Check all that apply.)

they can change to adapt to the needs of individual customers They interact with their customers.

A retailer is more likely to be successful when they ______.

understand why people buy where they do

Which of the following are characteristics of category killers? (Check all that apply.) Above average prices Below average prices Multiple product lines A focus on specific product types

Below average prices A focus on specific product types

Export brokers

Brokers who specialize in bringing together buyers and sellers from different countries.

Import brokers

Brokers who specialize in bringing together buyers and sellers from different countries.

True or false: Frieda's Wholesale knows that tradition is the key to success and relies on traditional food items to meet the demands of its retail clients.

False

What is often one characteristic of new retailing approaches? Multiple choice question. If they succeed, other countries will adapt them. They use less data gathering than they did in the past. They usually succeed more than older retailing approaches. Other countries are reluctant to adapt them, even if they are successful.

If they succeed, other countries will adapt them.

How has the rise of carriers such as FedEx and UPS affected wholesalers? Multiple choice question. It has not had any effects on their businesses at all. It has increased the number of shipments wholesalers make directly to customers. It has increased the number of wholesalers coming into the market. Reason: The number of wholesalers in the U.S. is declining.

It has hurt their business, since manufacturers can send items to customers.

Supermarkets

Large stores specializing in groceries—with self-service and wide assortments.

Mass-merchandisers

Large, self-service stores with many departments that emphasize soft goods (housewares, clothing, and fabrics) and staples (like health and beauty aids) and selling on lower margins to get faster turnover.

Department stores

Larger stores that are organized into many separate departments and offer many product lines.

What type of wholesalers change their marketing approaches and focus on their channels? Multiple choice question. Scrambled Optimistic Showroom Progressive

Progressive

What two things does a franchise holder receive from a franchise operation?

Purchasing strength Marketing help

What are two characteristics of a manufacturers' agent? (Check all that apply.) Multiple select question. Work as a wholesaler within the company Receive commissions Sell goods from an exclusive manufacturer Sell goods from different manufacturers

Receive commissions Sell goods from different manufacturers

Catalog wholesalers

Sell out of catalogs that may be distributed widely to smaller industrial customers or retailers that might not be called on by other wholesalers.

What are some common responsibilities of selling agents? (Check all that apply.) Multiple select question. Manufacturing goods Selling goods Promoting goods Shipping goods

Selling goods Promoting goods

Manufacturers' sales branches

Separate warehouses that producers set up away from their factories.

Single-line (or general-line) wholesalers

Service wholesalers that carry a narrower line of merchandise than general merchandise wholesalers.

Specialty wholesalers

Service wholesalers that carry a very narrow range of products and offer more information and service than other service wholesalers.

General merchandise wholesalers

Service wholesalers that carry a wide variety of nonperishable items such as hardware, electrical supplies, furniture, drugs, cosmetics, and automobile equipment.

Single-/Limited-line stores

Stores that specialize in certain lines of related products rather than a wide assortment.

Stockturn rate

The number of times the average inventory is sold during a year.

True or false: In emerging markets, online sales are almost nonexistent.

True

Supercenters (hypermarkets)

Very large stores that try to carry not only food and drug items, but all goods and services that the consumer purchases routinely.

What is the term for companies that sell to other companies, but not directly to consumers? Multiple choice question. Developers Wholesalers Suppliers Consumers

Wholesalers

Agent wholesalers

Wholesalers that do not own (take title to) the products they sell.

Drop-shippers

Wholesalers that own (take title to) the products they sell but do not actually handle, stock, or deliver them.

Merchant wholesalers

Wholesalers that own (take title to) the products they sell.

Truck wholesalers

Wholesalers that specialize in delivering products that they stock in their own trucks.

omnichannel

a multichannel selling approach in which a retailer provides a seamless customer shopping experience from computer, mobile device, or brick-and-mortar store

Products that experience quick shifts in supply and demand, such as livestock, are often sold through ______ companies. Multiple choice question. manufacturers' import export auction

auction

The number of wholesalers in the U.S. has ______ in the last 20 years. Multiple choice question. declined risen

declined

The failure rate for small retailers in the United States is _____.

high

Large retail stores that sell more than $5 million annually account for almost ______ of all retail sales in the United States.

75%

In the United States, ____ of all retail operations are classified as small.

85%

Combination export manager

A blend of manufacturers' agent and selling agent—handling the entire export function for several producers of similar but noncompeting lines.

Corporate chain

A firm that owns and manages more than one store—and often it's many.

Franchise operation

A franchisor develops a good marketing strategy, and the retail franchise holders carry out the strategy in their own units.

Specialty shop

A type of conventional limited-line store—usually small and with a distinct personality.

Auction companies

Agent wholesalers that provide a place where buyers and sellers can come together and complete a transaction.

Manufacturers' agents

Agent wholesalers that sell similar products for several noncompeting producers for a commission on what is actually sold.

Brokers

Agent wholesalers who specialize in bringing buyers and sellers together.

Selling agents

Agent wholesalers who take over the whole marketing job of producers, not just the selling function.

Retailing

All of the activities involved in the sale of products to final consumers.

What kind of retailer makes it easy for customers to quickly buy products like milk and bread and avoid purchasing these items at a larger retail grocer? Convenience stores Warehouse clubs Cottage industry Hypermarkets

Convenience stores

Cash-and-carry wholesalers

Like service wholesalers, except that the customer must pay cash.

Export agents

Manufacturers' agents who specialize in export trade.

Import agents

Manufacturers' agents who specialize in import trade.

Service wholesalers

Merchant wholesalers that provide all the wholesaling functions.

Limited-function wholesalers

Merchant wholesalers that provide only some wholesaling functions.

Rack jobbers

Merchant wholesalers that specialize in hard-to-handle assortments of products that a retailer doesn't want to manage—and they often display the products on their own wire racks.

Wheel of retailing theory

New types of retailers enter the market as low-status, low-margin, low-price operators and then, if successful, evolve into more conventional retailers offering more services with higher operating costs and higher prices.

Why are stores such as Toys R Us and IKEA known as category killers? Multiple choice question. Their location in downtown areas hurts malls. Their high prices upset consumers. Their focus on certain products hurts their competitors. Their generalized approach makes it easier for competitors to gain market share.

Their focus on certain products hurts their competitors.

What is the status of smaller retail stores in the United States?

They do less business collectively than the larger stores.

What is a characteristic of merchant wholesalers? Multiple choice question. They do not own the goods they sell. They focus on offering specific types of goods. They sell directly to consumers. They are the least common type of wholesaler.

They focus on offering specific types of goods.

Which of the following is a reason that some wholesalers have increased operating costs? Multiple choice question. They make use of central buying for different stores. They provide specialized attention to some consumers. They take advantage of quantity discounts in obtaining supplies. They control inventory costs through computer technology.

They provide specialized attention to some consumers.

How do supermarkets cut costs? Multiple choice question. They operate smaller stores. They hire several clerks to help customers. They require customers to serve themselves. They carry limited product lines

They require customers to serve themselves.