Chapter 13
Home Depot and PetSmart are examples of ________.
category killers
________ are manufacturer-owned and operated stores that offer prices as low as 50 percent below retail on a wide range of mostly surplus, discounted, or irregular items.
Factory outlets
In comparison to the traditional grocery, which averages about $320,000 in weekly sales, the weekly sales volume for a supercenter is in excess of $1.4m. In what other manner is the supercenter different from the traditional grocery store?
It offers discount merchandise in addition to groceries.
________ are the largest group of wholesalers. They include two broad types: full-service wholesalers and limited-service wholesalers.
Merchant wholesalers
A recent retail trend is to create limited-time retail facilities that let firms promote their brands to seasonal shoppers and create buzz in busy areas. What are these short-term establishments called?
Pop-up stores
In an effort to compete against large firms, some independent stores band together to set up a jointly owned, central wholesale operation and conduct joint merchandising and promotion efforts as Ace Hardware has done. What is this organization called?
Retailer cooperative
________ includes all the activities involved in selling products or services directly to final consumers for their personal, nonbusiness use.
Retailing
Which type of service do discount retailers like Target, Walmart, and Kohl's offer shoppers?
Self-service
________ is a type of service offered by those retailers who serve customers that are willing to perform their own "locate-compare-select" process in order to save money.
Self-service
Retailers constantly have to scan the environment for new trends in shopping and retailing. Which of the following is a trend the retailer confronts currently?
Shortening retail life cycles
________ are facing slow sales growth because of slower population growth, increased competition, and the rapid growth of out-of-home eating.
Supermarkets
There is a distinct difference between off-price retailers and discounters. Although the discounters buy at regular wholesale prices and accept lower margins to keep prices down, off-price firms operate differently. What is the off-price retailers' pricing strategy?
They buy at less-than-regular wholesale prices.
How do brokers and agents differ from merchant wholesalers?
They do not take title to the goods.
Full-service retailers can be described in several ways. Which of the following accurately describes a full-service retailer?
They have higher operating costs.
All of the activities involved in selling goods and services to those buying them for resale or business use is called what?
Wholesaling
The lighting in Jake's Steak Restaurant is dim. The chairs are covered in leather and each table is covered with a white linen cloth. The colors are limited to earth tones with an occasional splash of red. Patrons cannot hear any kitchen noises, only a pleasant melody that seems familiar but unrecognizable. The smells are extraordinarily varied. This is a description of the restaurant's ________.
atmosphere
Wholesalers fall into three major groups: merchant wholesalers, ________, and manufacturers' and retailers' branches and offices.
brokers and agents
Which type of store carries a deep assortment of a particular product line, has knowledgeable staff, and can be viewed as a giant specialty store?
category killer
A ________ is a small store, located near a residential area that is open long hours seven days a week and carries a limited line of high-turnover goods.
convenience store
Sears, Target, and Kroger are examples of ________.
corporate chains
Big and Tall Men's Shop carries men's clothing in larger sizes; this allows the store to ________ other stores.
differentiate itself from
The early ________ cut expenses by offering few services and operating in warehouse-like facilities in low-rent, heavily traveled districts.
discount stores
McDonald's, Subway, and Jiffy Lube are all examples of ________.
franchises
Which type of retailer usually carries more specialty goods at high prices and is more likely to provide customers with assistance in every phase of the shopping process?
full-service retailer
Different types of customers and products require different amounts of service. To meet these varying service needs, retailers might offer one of three service levels: self-service, ________, and full service.
limited service
Overstock.com, a Web seller that buys furniture, clothing, electronics, and more from a variety of producers at less-than-regular wholesale prices and then charges customers less than retail, is a(n) ________.
off-price retailer
Target recently opened temporary shops to celebrate limited-run collections by Jason Wu in Toronto and Missoni in New York. These temporary shops are examples of ________.
pop-up stores
Which of the following statements best represents a contractual association between a manufacturer, wholesaler, or service organization and independent businesspeople who buy the right to own and operate one or more units in the system represented by the contract?
retailer cooperative
In-store demonstrations, displays, sales, and loyalty programs are examples of ________.
sales promotion
A large retailer of home improvement and construction products offers "how-to" classes for do-it-yourselfers, featuring instructions on how to complete home improvement projects using products sold at its stores. This is an example of how the retailer has differentiated itself through its ________.
services mix
A ________ is a group of retail businesses built on a site that is planned, developed, owned, and managed as a unit.
shopping center
Which term refers to looking at merchandise at a traditional store and then purchasing the merchandise online?
showrooming
