Chapter 16 marketing

In order to justify direct-response marketing, a product really needs to be priced above

$20

An example of an emerging type of power shopping center might contain

Michael's, Office Depot, T.J. Maxx, and Circuit City.

Redbox, ProActiv, and Clinique all sell their products through automatic vending, which is

a type of nonvoter retailing

Chandra has extensive contacts in the real estate business and brings together buyers and sellers. Although she assumes no risks, she can offer specialized knowledge about real estate. Chandra is a

broker

Self-service, general merchandise stores such as Kmart are known as

discount stores

Greg chooses to have his hunting equipment stored in a location away from the main part of town so that he can have a large parking lot and an outdoor range for customers to test out his merchandise. Greg's store is

truck

The target market of a regional shopping center typically includes at least ____ people.

150000

A general merchandise retailer offers

a variety of product lines that are stocked in depth

The use of the telephone and other nonpersonal media to introduce products to consumers, who then can purchase the products through the mail, telephone, or the Internet is called

direct marketing

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(an)_

discount store

Which type of retailer generally accepts lower margins than traditional retailers in exchange for higher sales volume?

discout stores

Alison lives in a remote area of Montana, where few good roads exist. She runs a small retail store specializing in western attire. Due to her remote location, Alison is most likely to obtain the merchandise for her store from

mail-order wholesalers

Independent intermediaries that represent two or more sellers and usually offer customers complete product lines in a restricted territory are called

manufacturers' agents

Tupperware, Sarah Coventry, Amway, and Avon sell products outside the confines of retail facilities. They are ____ retailers.

non-store

Drop shippers

take title to but not physical possession of the goods.

By buying in large quantities and delivering to customers in smaller lots, a wholesaler may perform all of the following physical distribution activities except

unit pricing

Sam's and Costco are examples of

warehouse clubs

Alison asks ten of her friends over to her home to learn about exciting new cosmetic products. A salesperson from Angel Products makes a presentation and takes the women's orders. This is an example of

a party plan

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

category killers

A small self-service store that is open long hours and carries a narrow product assortment in convenient locations is best described as a

convenience store

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

The kinds of products being sold and the availability of public transportation are both factors that influence a retailer's decision about

location

Which of the following best describes wholesalers?

Organizations or individuals who buy products for resale to government, reseller, producer, and institutional users.

In franchising, which of the following is not a benefit that the franchiser gains?

The franchiser gains more control over how the franchisees operate the establishments.

Greg chooses to have his hunting equipment stored in a location away from the main part of town so that he can have a large parking lot and an outdoor range for customers to test out his merchandise. Greg's store is

a free-standing structure

Karen has been a buyer for Ocean Mist, a large cranberry processor, for several years. Believing that she knows a great deal about cranberries, their growers, and processors, she decides to go into business for herself. Karen wants to assume no risks of spoilage or price fluctuations. She sees herself as simply bringing the growers and processors together. Her new company would be a

broker

Which of the following was developed in 1927 to supply milk, eggs, and other products for customers replenishing their ice boxes?

convenience stores

The three major types of nonstore retailing are

direct marketing, direct selling, and automatic vending

the three major types of nonvoter retailing are

direct marketing, direct selling, and automatic vending.

All of the following are types of direct marketing except

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

An arrangement in which a supplier grants a dealer the right to sell products in exchange for some type of consideration is

franchising

If a retailer needed help with store design and training sales personnel, it would most likely use the services of a

full-service wholesaler

A wholesaler that carries a wide product mix but offers only limited depth within product lines is called a

general merchandise wholesaler

Which of the following is a full-service merchant wholesaler?

general merchandise wholesaler

Category killers compete primarily on the basis of

low prices and enormous product availability.

Sherri McRae wants to establish a fashion wholesaling firm. Because of the risks involved in the rapid obsolescence of high-fashion items, Sherri does not want to establish an organization in which she has title to the garments. Which of the following types of wholesale establishments has she ruled out?

merchant wholesaler

Lucas is planning a distribution strategy for his business. He is considering using direct marketing, direct selling, and automatic vending, which are all examples of ____ retailing.

nonstore

A shopping center that contains stores owned by manufacturers who make a special effort not to conflict with traditional retailers is a(n)

outlet shopping center

A shopping center that contains stores owned by manufacturers who make a special effort not to conflict with traditional retailers is a(n)

outlet shoppping center

A shopping center containing a Macy's, Sears, and JC Penney's as well as dozens of specialty shops, restaurants, and entertainment is most likely a

regional shopping center

Norah operates an upscale shop that does both pet grooming and human manicures and pedicures. She is reaching a market segment with people who place great value on their dogs and are concerned with their own appearance, yet pressed for time. No other businesses meet the needs of these consumers. Which strategic issue in retailing does Norah appear to have addressed?

retail positioning

Direct selling, direct marketing, and vending machines are all examples of

retailing

In contrast to industrial products, consumer products are often purchased because of

social influences

A functional and psychological picture in the consumer's mind of a retail store is called

store image

Aidan is getting ready to move to campus for his freshman year of college. To get the products he needs for his dorm room, he goes to a store that sells household goods such as plastic containers, sheets, and towels. The store also sells items such as shampoo, deodorant, and toothpaste. Aidan has most likely gone to a(n)

superstore

Aidan is getting ready to move to campus for his freshman year of college. To get the products he needs for his dorm room, he goes to a store that sells household goods such as plastic containers, sheets, and towels. The store also sells items such as shampoo, deodorant, and toothpaste. Aidan has most likely gone to a(n)

superstores

A merchant wholesaler

takes title to goods, assumes risk associated with ownership, and buys and resells products.

When products are presented to television viewers, who can purchase them by calling a toll-free number and paying with a credit card, ____ is being used.

television home shopping

Greg works with a group of farmers who provide him with a regular supply of a variety of fresh vegetables. He picks up their produce and has a regular route of grocers and restaurants who purchase quantities of the items he has on any given day. Greg's operation is which type of wholesaler?

trucl