Chapter 15

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Which of the following is the definition for retailing?

All transactions in which the buyer is the ultimate consumer and intends to use the product for personal, family, or household purposes

Which of the following is not a benefit of catalog marketing?

Flexible method of selling products as catalogs can be updated easily

Agents and brokers differ in that _______.

agents represent buyers or sellers on a permanent basis while brokers are intermediaries that buyers or sellers employ temporarily

Ryan has been a florist for years and considers himself to be an expert in how florists and flower growers exchange their products. He wants to start a new business as an intermediary that can help growers find florists to sell their flowers. He does not want to represent either party and also does not want to take ownership of any of the product. He simply wants to bring the flower growers and florists together. He will be a _______.

broker

Isabella works at a discount store and is coordinating her store's supply chain. She has a system that collects information on sales demand and on consumer behavior. The system then determines optimal product allocations for her store's shelves between competitors for each type of product. Isabella is working on _______.

category management

What type of self-service store typically is less than 5,000 square feet, open 24 hours a day and 7 days a week, and stocks about 500 items?

convenience store

Off-price retailers compete primarily on the basis of _______.

deeply discounted prices on name-brand merchandise

A shopping center that combines off-price stores with category killers is known as a _______.

power shopping center

Veril loves shopping at the Palisades Center Mall in West Nyack, New York. It has four-stories with 16 anchor stores and more than 200 retailers. If she is hungry, Veril can choose from 16 sit-down restaurants and a food court. Occasionally, Veril and her friends go to Palisades to visit the bowling alley, movie theater, ice skating rink, climbing wall and ropes course, or Ferris wheel. Palisades Center Mall would be classified as a _______.

superregional shopping center

Which of the following is not considered an element of a store's atmospherics?

variety of products

Direct selling is effective in countries like China for which of the following reasons?

Collective societies, like China, appreciate the one-on-one attention given in a direct selling situation.

If you were to classify retailers based on the breadth of products they offer, then you would use which two categories?

General-merchandise and specialty retailers

Which of the following types of retailer has put the most pressure on category killers?

Online retailers

Online sales are _______ by 2022.

Projected to grow

Which of the following is true of online retailers?

Retailers may offer exclusive online sales.

What is the primary difference between superstores and supermarkets?

Superstores offer routinely purchased products in addition to products found at supermarkets.

Which of the following is an example of an off-price retailer?

TJ Maxx

Which of the following is a challenge for traditional specialty retailers?

They have high costs in proportion to sales.

Jessica invites a sales representative from The Pampered Chef, a company that sells kitchen tools, to her home. The representative brings sample products and makes a sales presentation to Jessica and 10 of her friends. Once the presentation is over, the representative takes orders from Jessica and the guests. This is an example of _______.

a party plan

Jack is shopping for a birthday present for his mother. He wants to buy her a pair of earrings and decides to go to a store that provides the best selection of earrings and jewelry. The best store for him to shop at would be _______.

a traditional specialty store

A general-merchandise retailer offers _______.

a variety of product lines that are stocked in depth

Best Buy stores have knowledgeable staff to provide information to consumers on products ranging from televisions to laptops. They also offer repair and support services through the Geek Squad. These are examples that Best Buy is _______.

adding value for customers

Shawn needed a gift bag for a present he had purchased. He went to a store that was much smaller than his local Target and everything was priced low—most items were $1. Shawn visited _______.

an extreme-value store

Sergei runs an upscale nail salon targeting consumers who wish to get a manicure or pedicure in a luxurious environment. He is working hard to make sure the salon is appealing to his customers. He has installed marble countertops and floors and has gold-plated accents throughout the salon. He has adjusted the music and lighting and uses scented candles that all help add to the luxurious feeling. He believes these changes will make his customers return more frequently. Sergei has been focusing on _______.

atmospherics

Every time Ayame drives by the Eastgate Mall, she receives a push notification on her smartphone from Kohl's alerting her to a special or an in-store deal. Kohl's is utilizing _______ to reach customers.

beacons

Jamie works in the insurance industry and has expertise in different types of insurance. She is not affiliated with any insurance company but helps bring together individuals with the insurance company and policy that is right for them. Jamie is a _______.

broker

Which of the following collection of retailers is most likely to be found at a power shopping center?

buybuy BABY, T.J. Maxx, Bed Bath & Beyond, and Home Depot

Many small restaurants visit Costco to purchase supplies for their food and operating items. While Costco is a retailer, it combines retailing with _______ functions, allowing small businesses that are able to supply their own transportation the ability to pay for and take their products immediately.

cash-and-carry wholesaler

Which of the following is a limited-service wholesaler?

cash-and-carry wholesaler

Welty Popcorn is a manufacturer of gourmet popcorn that is sold in small, independent retailers rather than large retail chains. Most wholesalers do not want to carry Welty Popcorn because their customers are all small retailers. Welty most likely deals with _______.

cash-and-carry wholesalers

Beremand Limited sends out paper copies of a listing of its products. Customers can then look through the listing and place orders online, through mail, or by calling a toll-free number. Beremand Limited is primarily a _______.

catalog marketer

You represent a group of investors who are exploring alternatives for entering the retailing business. Many of these investors have significant past experience working for other retailing companies and they realize the retailing business is very competitive. They also realize there is a high failure rate for startups in this industry. They ask you to recommend a retailing strategy that would meet the following criteria: No storefront would be needed No personal selling would be needed No traditional store operating expenses are necessary Customers can place orders via the internet, telephone, or mail Low operating expenses and limited customer service required Which of the following retailing strategies are you going to recommend they use?

catalog marketing

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

category killer

While most _______ worry about online retailers like Amazon, Tractor Supply Co. (TSC) thinks the knowledge of its store associates will keep Amazon at bay. TSC carries products to support a rural lifestyle and at considerable depth. The products are often bulky and high shipping costs will keep customers shopping at TSC rather than Amazon.

category killers

When a supermarket allocates space for different competing products on a shelf, it is engaging in _______.

category management

Meade Farms wants to hire an intermediary to help with the distribution of the yield from its farms. It wants someone that will take possession of the harvested crops, store them, and sell them at an auction. Meade Farms is willing to give the distributor a percentage of what it raises from selling the crops. It should most likely hire a _______.

commission merchant

Zac works in the agriculture industry, dealing with farmers. He takes possession of crops such as corn or soybeans, arranges for them to be stored, and then takes them to be sold at auctions. For his work, he receives a percentage of what the crops are sold for. He is a _______.

commission merchant

Dennis enjoys going to a shopping center about 10 miles from his house. It has two department stores, a J.C. Penney and a Dillard's, a convenience store, and some specialty stores. This weekend, he is excited to go see the RV show that is taking place in the center's parking lot. This shopping center is most likely a _______ shopping center.

community

A _______ usually has one or two department stores, some specialty stores, and convenience stores. They often hold special events to stimulate traffic.

community shopping center

Last summer, Colonial Gardens Center had a fine arts fair where artists were invited to sell their work in booths located throughout the center. This helped draw in traffic to the two department stores and various specialty stores located at Colonial Gardens. Colonial Gardens Center is most likely a _______.

community shopping center

Which of the following is not one of the benefits of television home shopping for a marketer engaged in direct marketing?

consumers can seek out hard-to-find items

Before heading to the pool, Yash filled up his car with gas and ran into the _______ to withdraw $40 from the ATM and get snacks and a Gatorade.

convenience store

Clayton's is a large retail store that has distinct areas for housewares, appliances, men's apparel, women's apparel, cosmetics, and jewelry. It offers personal assistance with shopping, merchandise returns, delivery options, and a pleasant atmosphere. Clayton's is most likely an example of a _______.

department store

_______ have wide product mixes and are often organized into separate departments. Separate departments help to facilitate marketing efforts and internal management.

department stores

Brett is evaluating how consumers buy his company's products. He is thinking of adding various types of _______ marketing such as publishing a catalog, hiring telemarketers, and online shopping.

direct

Companies such as Avon and Amway choose to market their products to ultimate consumers. They use face-to-face sales presentations either at home or at work. This strategy is referred to as _______.

direct selling

_______ is the most expensive form of retailing.

direct selling

Advo Systems is an organization that mails product brochures and coupons to potential consumers who can then purchase these products by mail or by phone. Advo Systems illustrates which of the following methods of selling retail products?

direct-response marketing

Hannah is reading through one of her favorite magazines. She notices an ad for a complete set of mint-condition state quarters. To order the coins, she would have to dial a toll-free number or mail in a form printed on the ad. This is an example of _______.

direct-response marketing

Script to Screen is an agency that produces television infomercials. When potential consumers view the infomercial, they can purchase the product by phone, mail, or online. Script to Screen is an example of a company engaging in _______.

direct-response marketing

Vaughn was wide awake at 2 a.m., so he decided to watch television. He ended up watching an infomercial about Gotham Steel frying pans. Vaughn became convinced he needed the dishwasher safe, scratch-resistant cookware and immediately called the 1-800 number listed on the screen to order a frying pan. This is an example of _______.

direct-response marketing

KidRead is developing a way to increase the number of subscribers to its children's book subscription service using direct marketing. It has narrowed down the options to _______ in which it would mail out postcards advertising the service and having new customers place mail, telephone, or online orders or _______ in which it would call potential subscribers to sell them the service over the phone.

direct-response marketing; telemarketing

Brookdale is a regional self-service store that sells name-brand and private-brand clothing, home goods, and electronics at low prices. Brookdale is an example of a _______.

discount store

Cash and Carry is a store that carries food, clothing, and household goods at lower price margins than other nearby stores. There is little service provided and customers have to bag their own purchases. Cash and Carry is most likely an example of a _______.

discount store

Target is a self-service store that sells general merchandise. It is a _______.

discount store

Which type of store offers a wide assortment of products, has high inventory turnover, and operates with low margins and high sales volume?

discount store

In recent years, Target has become more upscale in its appearance and offerings, charging slightly higher prices for products. It has also introduced low-cost clothing lines by designer labels. These changes have blurred the line between _______.

discount stores and department stores

Which of the following is least likely to be considered when deciding on a retailer's location?

distance from corporate headquarters

Clifton Medical Supplies has hired a wholesaler to sell its medical products to business customers. Although the wholesaler never physically possesses the products, it takes ownership of them and is responsible if the products do not sell. The wholesaler sells the product and then makes arrangements for Clifton to ship the products directly to the businesses. The wholesaler is a _______.

drop shipper

Mark Bradley's company takes orders from its collection of retail customers and arranges the shipment of goods directly from manufacturers or other wholesalers to its customers' businesses. Mark is operating as a _______.

drop shipper

By locating in the same general vicinity as other car dealerships, Hartfield Honda can _______.

facilitate comparison shopping

Pat and Taylor want to furnish their apartment with new furniture. They decide to go to an area where there are several furniture stores close to each other. They chose this area because having several stores together helps _______.

facilitate comparison shopping

Prior to school starting, Keenan went shopping at a shopping center about 20 miles outside of Cleveland. He bought last season Nike shoes for a significant discount. He also bought a few items from Under Armour, the Gap, and Banana Republic. Keenan was likely shopping at a _______.

factory outlet mall

What type of shopping centers would be located outside of metropolitan areas and feature stores owned by manufacturers selling upscale products from last season?

factory outlet malls

Direct selling is a type of specialty retailing.

false

Meijer is an example of an extreme-value store.

false

The primary advantage of franchising is the complete control the franchisee has over the business.

false

By using Johnson Wholesale Co. for its distribution needs, the Apex Production has a distinct competitive advantage because the services performed by Johnson allow Apex to _______.

focus on producing products that meet consumers' needs

Aaron has been running a successful food truck that sells gourmet grilled cheese sandwiches and macaroni and cheese. He has been thinking of expansion and has been approached by people who would like to open up a similar food truck using the same name and business model that he uses. The situation here would be best suited to _______.

franchising

Colin brags to his friend Reid that his new bike shop has lots of parking and great visibility from Harper Avenue, and his nearest business neighbors are several hundred feet away. Colin has selected a _______ site for his retail business.

freestanding

A grocery store is using a wholesaler that provides a variety of nonprescription medicines for its pharmacy section. If the wholesaler is providing financing to the grocery store, assisting with promotional materials, and streamlining coupon redemption, then the wholesaler is most likely a _______.

full-service wholesaler

If a retailer needs help with document management, communication management, and the distribution of retailer flyers, it would most likely hire a _______.

full-service wholesaler

Department stores, convenience stores, and warehouse clubs can all be classified as _______.

general-merchandise stores

Gino's Italian Restaurant is an upscale restaurant. The management is updating the atmosphere of the restaurant to relax the customers and have them indulge in multiple courses. To do so, it is repainting the interior _______, which is known to be calming and associated with wellness, and playing _______ music, which has been shown to encourage customers to stay longer in restaurants.

green; soft classical

At your local _______ store, there is a minimal assortment of goods—most of which are store brands offered at very low prices. To keep costs low, these stores have a no-frills environment where customers have to bag their own groceries and pay a quarter for a grocery cart.

hard discounter

Hans can spend hours at his local Carrefour. He will shop for household items and clothing, paying lower prices than at other stores. If he needs to, he can also get his eyeglasses, make deposits at a branch of his bank, and eat lunch at a fast food restaurant. Carrefour is a _______.

hypermarket

_______, popular in Europe, combine supermarkets and discount shopping in one location. These retailers offer 45,000-60,000 different types of low-priced products.

hypermarkets

Victor knows that if he decides to buy a franchise, he will most likely have to supply _______.

labor and daily operations

The Grove is an open-air shopping center that has upscale specialty stores, nice restaurants, and a movie theater. It is designed to encourage customer loyalty by looking like a "mini-city" with streets, benches, and a small park. The Grove is most likely a _______ shopping center.

lifestyle

An open-air shopping center that features upscale specialty stores, dining, and entertainment stores is called a _______.

lifestyle shopping center

Kaitlynn is debating opening a Jimmy John's Gourmet Sandwiches franchise. As she is looking over the information, the major advantage that she sees for opening a franchise is _______.

limited capital required to open a franchise

A wholesaler that carries a narrow product mix but offers a deep selection within product lines is called a _______.

limited-line wholesaler

Kroger is planning to open a new suburban grocery store. Management is currently evaluating how easy it will be to get deliveries at different sites, leasing terms of sites, and compatibility with potential neighboring stores. Kroger is evaluating a new store's _______.

location

Taylor Fence Company manufactures fencing popular for farms and large fields. It sells them in retail locations exclusively through wholesalers. It has been unable to find a wholesaler willing to sell the fencing to retailers in remote areas because the wholesalers do not find them to be profitable. Taylor Fence should consider using a _______ to reach these retail customers.

mail-order wholesaler

Albert maintains a long-term relationship with his buyers, but he does not offer credit to his customers. He is restricted to a territory that encompasses Kansas City and Topeka. Albert is a _______.

manufacturers' agent

Because Gem Supply's sales have continued to decline, the jewelry manufacturer has found that the costs associated with maintaining its own five-person sales force are prohibitive. The firm's marketing director begins to look for a small company or individual willing to perform the sales function for Gem Supply in its least productive region, the Far West. The ideal entity would carry complementary but non-competing lines. Such a firm or individual would be classified as a _______.

manufacturers' agent

Mike's Bikes has expanded sales of its bicycles throughout most of the United States. As it finishes its expansion, it wants to find an intermediary to handle its sales functions in the new territory west of the Rocky Mountains. This intermediary would be restricted to that territory and Mike's Bikes would retain control over pricing and other marketing decisions. Mike's Bikes should hire a _______.

manufacturers' agent

Ridgeland Designs is a small manufacturer of novelty T-shirts and is trying to decide on an intermediary to help get the T-shirts to retailers. The owner does not want the intermediary to take title of the T-shirts but wants someone to represent the company in negotiating with retailers. More importantly, the owner wants to retain control over the pricing and promotion of the T-shirts to retailers. Ridgeland Design would most likely be looking for a _______.

manufacturers' agent

Johnson Produce is a company that is an intermediary that works to get the produce section in grocery stores stocked with fruits and vegetables. Because of the perishability of food items, Johnson Produce does not take title over any of the produce moving from farmers to grocery stores. That means Johnson Produce cannot be which of the following?

merchant wholesaler

Tri-County Supply is a wholesaler that works in the home construction industry, providing building supplies such as doors, windows, gutters, and other components used in home construction. Tri-County Supply takes ownership of the components, which means that it assumes the risk associated with the products if it is unable to sell them to home builders. Tri-County Supply is a _______.

merchant wholesaler

Athleta, which sells activewear and swimsuits for women, has retail stores across the United States as well as a website, an app, and a catalog. Athleta is participating in _______.

multichannel retailing

Deborah is opening a second-hand clothing store in a shopping center that has other small specialty stores, a convenience store, and a fast-food restaurant. The center primarily attracts customers who live within a couple miles of the stores. Deborah's store is most likely in a _______ shopping center.

neighborhood

What type of shopping center usually consists of several small convenience and specialty stores?

neighborhood

Retailing is vital to the U.S. economy. There are more than _______ retail establishments in the United States employing nearly _______ people.

one million; 16 million

Which of the following is the fastest growing form of retail, especially among Millennials?

online grocery shopping

For $14 a month, Shipt will deliver groceries to customers that the customers have ordered through an app or on the Shipt website. Shipt is an example of _______.

online retailing

Lindsay visits jcrew.com and orders a sweater. This is an example of _______.

online retailing

From early September through the beginning of November, several stores selling Halloween costumes and supplies open. These stores cut down on rental costs compared to stores that are open year-round and are called _______.

pop-up stores

Brad is a _______ for a magazine distributor. His job is to go into grocery stores and maintain the magazine displays, making sure the magazines are in stock and that older magazines have been removed.

rack jobber

Twin Pines Mall has a Nordstrom, J.C. Penney, and Macy's as well as many specialty stores that are national chains. It attracts customers traveling a distance because it has stores selling products that smaller shopping centers do not offer. Twin Pines Mall is most likely a _______ shopping center.

regional

With the largest department stores, widest product mixes, and deepest product lines of all shopping centers, _______ shopping centers have well-coordinated management and marketing activities.

regional

When a retailer purchases a product, it does so in order to _______.

resell the product to ultimate consumers

Josh tells the loan officer at First Bank and Trust that Clarksville really needs a store that offers high-quality fishing gear to enthusiasts and provides the service and advice that many people want. No other store in the area seems to provide this combination. Josh is trying to use _______ to support his request for a loan to start such a retail operation.

retail positioning

Larry runs an upscale tanning salon targeting customers who wish to tan in a luxurious and private environment. These customers do not wish to be seen at the salon and want to be treated like royalty. To do so, he has private entrances and private areas for each guest, luxurious amenities, and a staff eager to assist clients. No other tanning salons meet the needs of these customers. What strategic issue in retailing has Larry addressed for his tanning salon?

retail positioning

Liz has decided to open a store that will offer second-hand children's items for sale. She will buy gently-used items and resell them to customers who are looking for children's clothes and books at discounted rates. No other store in the area seems to be offering children's items at the prices her store will offer. Liz is identifying her _______ before she opens her store.

retail positioning

Whole Foods was able to identify a market segment that was looking for healthy and organic foods. This segment was underserved in that there were no large grocery stores that provided a broad assortment of healthy and organic foods, so it created _______ to meet the needs of that segment.

retail positioning

Kate owns a refreshment-stand business at the community ballpark. She goes to a warehouse store like Costco and purchases snacks and canned soda that she will sell at her refreshment stand. Kate is considered a _______.

retailer

Amazon, Target, Kroger, Bed Bath & Beyond, and Lowe's are examples of _______.

retailers

A manager at Owens Corning, a manufacturer of fiberglass, insulation, and related products, is updating the way the company interacts with its sales force. The manager has decided to open up offices in key areas that will provide support services for the sales force, carry inventory, and offer services to construction customers. This type of office is known as a _______.

sales branch

Joseph works for a manufacturer, but away from the manufacturing plants. He works with his company's retail customers to help provide wholesale services. His office does not contain any inventory, but his work helps strengthen the efficiency of the supply chain. Joseph works at a _______.

sales office

Brookdale Furniture, Inc., is a manufacturer of office furniture. It has hired a _______ named Davidson Intermediaries to market its product line. Davidson takes care of the sales and other marketing functions for the furniture maker but does not take possession of any of the furniture.

selling agent

Which of the following is a difference between selling agents and manufacturers' agents?

selling agents have complete control over product pricing

Wholesaling involves all of the following activities, except _______.

selling products to the ultimate consumer

Sephora is a store that offers a wide variety of cosmetics and beauty products. It would most likely be categorized as a(n) _______.

specialty retailer

Alaskan Wholesale is a full-service wholesaler that exclusively deals with selling fish that are caught by fishermen in Alaska. Although it only carries Alaskan fish, its inventory contains a great selection of every type of fish available from Alaska. Alaskan Wholesale is most likely a _______.

specialty-line wholesaler

You are conducting a business startup workshop sponsored by the Small Business Administration (SBA). The workshop attendees are all aspiring business owners who are excited and fearful about the prospect of starting their own business. Early in the workshop, you asked the attendees to complete a questionnaire about their major concerns in starting a new business. The majority of the respondents indicated their biggest concerns were limited capital and lack of business experience.Based on these concerns, which of the following business strategies do you think would be most appropriate for these workshop attendees?

start their business as a franchisee

Nicole manages a boutique that sells unique gifts and stationery. She wants to update the store's strategic plan. Which of the following aspects of the store is the least flexible?

store location

Some shopping centers are designed to attract customers from many miles away. They offer the deepest and widest product mixes and even include attractions like theme parks. These are known as _______.

superregional shopping centers

Beth goes shopping to buy food for dinner, but also wants to pick up a new pair of running shoes and a new shirt for her son. Because she is with her children, she wants to do all of her shopping at one store. Which of the following should Beth visit?

superstore

_______ carry regular grocery items as well as non-food products and consumer products such as hardware, housewares, small appliances, and clothing. These retailers are usually around 200,000 square feet and offer some services such as check cashing, automotive repair, and dry cleaning.

superstores

All of the following are differences between superstores and discount stores, except _______.

superstores carry routinely purchased consumer products, but discount stores do not

Chris is an advertising manager for a local car wash. The company has been trying to get new customers to visit the wash by having a staff member make phone calls in a process called _______. Since this strategy has not been as successful as he had hoped, he is instead going to mail out postcards advertising the car wash. The cards, part of a strategy called _______, will include a toll-free number where potential customers can call and order prepaid cards to use at the car wash.

telemarketing; direct-response marketing

Sophia is the new marketing manager for a new line of laptop, MP3, and smartphone accessories made by the company, Skull Candy. These accessories are trendy, colorful, and more expensive than others on the market. After considering the target market for the products, Sophia has decided not to use marketing-related activities conducted on the telephone, called _______, and instead use _______, a type of nonstore retailing.

telemarketing; vending

Marilyn is at home and sees a vacuum cleaner being used on QVC. She calls a toll-free number to order the vacuum and pays with her credit card. This is an example of _______.

television home shopping

Many large retailers such as Target and Home Depot are finding that because of their size they can deal directly with producers and take care of ordering, delivery, and handling of goods rather than using an independent wholesaler. They are able to do so because _______.

they are performing the functions normally performed by independent wholesalers

Sometimes called limited-line retailers, _______ carry a narrow product mix with deep product lines.

traditional specialty retailers

Eric is a wholesaler who deals with individual bakers who want to sell their bread to independent restaurants and grocery stores. Every morning, he picks up bread from the bakers and visits the grocery stores and restaurants that purchase whatever bread he has that day. Eric is a _______.

truck jobber

Multichannel retailing has made it easier for consumers to research products even before entering a store.

true

Rapidly evolving consumer trends and changing demographics is blurring the line between the various types of retailers.

true

The use of wholesalers permits producers to concentrate on developing and manufacturing products that match consumers' wants.

true

Quentin and his friends saw a commercial advertising the latest Dwayne "The Rock" Johnson movie on Blu-ray, so they rented it from Redbox, an automated movie and game kiosk. This is an example of _______.

vending

While at the mall, Adrienne decides to buy a new smartwatch. She purchases one using a credit card. The transaction takes place at a machine and involves no contact with a person. This transaction most likely used _______.

vending

When Alexa visited a furniture store called the Barrington Store for the first time, it was a lot larger than she expected. She was surprised that it had a warehouse feel and large displays of merchandise. There was minimal service, but it had a lot of stock on hand that she was able to carry away in large cartons. The Barrington Store can most likely be categorized as a _______.

warehouse showroom

_______ occurs when a shopper researches a product online and then heads to the nearest store to make the actual purchase.

webrooming

A general-merchandise wholesaler would be expected to carry a _______ product mix.

wide and shallow


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