MKTG 351: Test 3 Review - Chapter 15
In order to justify direct-response marketing, a product really needs to be priced above
$20.
The target market of a regional shopping center typically includes at least _____ people.
150,000
With respect to retailing, what is the "party plan"?
A consumer acts as a host and invites friends to view merchandise in a group setting, where a salesperson demonstrates the products.
Which type of franchising is most popular in the soft-drink industry?
A manufacturer licenses distributors to sell a given product to retailers.
Which of the following is not one of the basic types of franchising arrangements?
A wholesaler franchising a number of producers
What is the primary difference between an agent and a broker?
An agent represents a company on a permanent basis while a broker is employed temporarily.
Which of the following is a common feature of a warehouse club?
Annual fees
Which of the following was developed in 1927 to supply milk, eggs, and other products for customers replenishing their ice boxes?
Convenience stores
What type of retailers are the primary competitors for specialty retailers?
Department stores
What 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
Which type of retailer generally accepts lower margins than traditional retailers in exchange for higher sales volume?
Discount stores
Which of the following wholesalers never take actual possession of the goods?
Drop shippers
True/False: A cash-and-carry wholesaler provides transportation, delivers products directly to customers, and places products on the retailer's shelves.
False
True/False: The classification of wholesalers in the text is based solely on the performance of marketing activities.
False
True/False: The coordination of selling efforts within a community shopping center is usually minimal.
False
What is the primary distinction between superstores and hypermarkets?
Hypermarkets are larger and have more types of products than superstores.
What is the most popular type of product sold through television home shopping?
Jewelry
Jannette Down is planning to open an upscale dress boutique. She is evaluating ease of movement to and from sites, vehicular traffic, types of stores in the area, and transportation networks. Which strategic retailing issue is she concerned with at the time?
Location
Which of the following is the least flexible of these important retailing strategy issues?
Location
Which of the following services would a wholesaler least likely provide to a manufacturer?
Look for and coordinate supply sources
___________ provide an effective method of selling small items to customers in remote areas that other wholesalers might find unprofitable to serve.
Mail-order wholesalers
What type of shopping center usually consists of several small convenience and specialty stores?
Neighborhood
Which retail store invests the most in atmospherics?
Neiman Marcus
Which of the following best describes wholesalers?
Organizations or individuals who buy products for resale to government, reseller, producer, and institutional users.
________ have been successful because consumers are willing to drive significant distances to save money buying manufacturers' closeouts and irregulars.
Outlet shopping centers
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
What is a potential disadvantage of direct selling?
Some customers view direct selling negatively.
Based on what he has heard regarding the profitability of such items, Paul Goldstein is considering adding a fresh shellfish case in his grocery store. Paul knows very little about this product or the concerns of shoppers who buy shellfish. He is looking for help in display set-up and merchandising ideas. He should contact which of the following types of wholesalers?
Specialty-line
Which of the following offers the widest product mixes and the deepest product lines?
Superregional shopping center
Which of the following may include special attractions such as amusement parks or skating rinks
Superregional shopping centers
Laura goes to Wal-Mart and buys some clothing, a DVD, and all the groceries she needs for her family. What type of retailer is this particular Wal-Mart?
Superstore
Which type of retail outlet can have up to 200,000 square feet?
Superstores
Which of the following is not a factor used to classify wholesalers?
The price range of the products carried by the wholesaler
True/False: A franchise is an arrangement in which a supplier grants dealers the right to sell products in exchange for some type of consideration.
True
True/False: A good location for neighborhood shopping centers is near hotels.
True
True/False: An example of a nonstore retailer is a vending machine.
True
Select the true statement about wholesaling.
Wholesaling activities must be performed during distribution of all goods, whether or not a wholesaling institution is involved.
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.
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.
Automatic vending is
a type of nonstore retailing.
A general merchandise retailer offers
a variety of product lines that are stocked in depth.
Landry Restaurants, Inc. owns a number of different franchised restaurants, including the Rain Forest Cafe' and their recent addition, the T-Rex Cafe'. Both the Rain Forest and T-Rex restaurants differentiate themselves from their competitors by offering a unique dining experience. At the Rain Forest Cafe' you can dine under a ceiling of lush tropical forest plants while you are viewing the enormous aquarium with exotic fish. Periodically, the rain forest explodes with the sound of waterfalls and birds. Giant stuffed monkeys, parrots, and other jungle creatures are planted within the landscape. The Rain Forest Cafe' also contains a gift shop, where customers can purchase t-shirts, hats, and other items emblazoned with the Rain Forest logo. The newer T-Rex Cafe' has a similar approach to the uniqueness of the dining experience. The T-Rex Cafe' offers guests a hands-on prehistoric experience, including educational, interactive computer screens. Customers can also pan for precious gems and fossils in Discovery Creek or feast on food from the Kitchen of Fire. The T-Rex Cafe' also has a gift shop, where customers can purchase items with the T-Rex logo or build their very own stuffed dinosaur, through "Build-a-Dino" by the "Build-a-Bear" franchise. The lush tropical plants, aquarium, and stuffed animals represent the _______ of the Rain Forest Cafe'.
atmospherics
Brianna owns and operates a gift and interior store called The Gingerbread House. She works hard to put together beautiful arrangements and displays throughout the store and always features a burning scented candle and light music. She hopes these efforts will encourage her customers to buy more. Brianna is focusing on
atmospherics.
Exterior and interior characteristics such as layout, displays, color, and lighting are all elements of a store's
atmospherics.
ATMs are an example of
automatic vending.
The primary purpose of a(n) _____ is to bring buyers and sellers together.
broker
Chelsea 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. Chelsea is a
broker.
Karen Shapiro 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.
Andrea owns and operates a small novelty store that sells home décor, gifts, jewelry, and gourmet snacks. Because her business is very small, many wholesalers will not deal with her, so she relies primarily on _____ for the survival of her business.
cash-and-carry wholesalers
As discount stores improve their services and atmosphere as well as raise their prices, the distinction between discount stores and ____ is becoming blurred.
department stores
When off-price retailers obtain too much in-season, high-quality merchandise, tension between them and ________ builds.
department stores
Nordstrom's, Macy's, and JC Penney's are all considered
department stores.
By locating in the same general vicinity as other car dealerships, Hartfield Honda can
facilitate comparison shopping.
Merchant wholesalers can be divided into two basic categories:
full-service and limited service.
Cigarette manufacturer Philip Morris uses the services of Universal Corporation, the world's largest buyer and processor of leaf tobacco, which provides financing for its customers. This means that Universal is a
full-service wholesaler.
An open-air shopping center that features upscale specialty, dining, and entertainment stores, usually owned by national chains, is generally called a(n)
lifestyle shopping center.
Merchant wholesalers who specialize in just a few functions and pass others along to other intermediaries or customers are called
limited-service wholesalers.
Category killers compete primarily on the basis of
low prices and enormous product availability.
The selling of merchandise outside the confines of actual facilities is generally called
nonstore retailing.
A manufacturers' outlet mall is most appropriately classified as a(n)
off-price retailer.
Identifying an unserved or underserved market segment and serving it through a strategy that is distinguished in the mind of the consumer is called
retail positioning.
Intermediaries owned by manufacturers that sell products and provide support services to the manufacturers' sales forces are known as
sales branches.
In contrast to industrial products, consumer products are often purchased because of
social influences.
A store that offers a wide variety of shoes for men, women, and children would most likely be considered a(n)
specialty retailer.
A narrow product mix with a deep product line would most likely be carried by
specialty retailers.
Kelly Cramer sees a lovely pair of earrings on a television network and calls a toll-free number to order them, paying with her credit card. This is an example of
television home shopping.
The type of retail location that is commonly being preserved and revitalized in many cities is the
traditional business district.
While on their family vacation, the Millers realize they left their camera at home. They purchase a disposable camera at an amusement park using their credit card, but never interact with a person. What type of retailing did this transaction most likely involve?
Automatic vending
What type of retailing began with Montgomery Ward in the late 1800s?
Catalog marketing
True/False: A retail store usually can position its image so that it is universally acceptable to all market segments.
False
True/False: Agents and brokers perform more functions than limited-service wholesalers.
False
True/False: Agents represent either buyers or sellers on a temporary basis.
False
True/False: Cash-and-carry wholesalers draw most of their customers from large retailers and industrial firms.
False
True/False: Direct marketing is the selling of products outside the confines of a retail facility.
False
True/False: Direct selling is a type of specialty retailing.
False
True/False: Direct-response marketing is the performance of marketing-related activities by telephone.
False
True/False: Discount stores are distinctive in that they usually are very service-oriented.
False
True/False: Factory outlet stores exist to compete with traditional retailers.
False
True/False: Form and possession utilities are the only important utilities retailers create.
False
True/False: Franchised outlets are generally less successful than independently owned businesses.
False
True/False: Franchisees do not pay to use the franchiser's name.
False
True/False: Full-service merchant wholesalers are either general merchandise wholesalers or specialty line wholesalers.
False
True/False: General merchandise wholesalers are full-service merchant wholesalers who carry only a few product lines.
False
True/False: Less than half of all goods are exchanged through wholesaling institutions.
False
True/False: Most factory outlet shopping centers seek to locate in prime retail, metropolitan areas.
False
True/False: Most manufacturers' agents prefer to work for one manufacturer at a time to avoid conflicts of interest.
False
True/False: Sales offices differ from sales branches in that sales offices may offer credit, deliver goods, and give promotional assistance.
False
True/False: Sales volume of retail stores in the United States has decreased in recent years.
False
True/False: Scrambled merchandising increases the retailer's expertise in buying, selling, and servicing.
False
True/False: Specialty retailers carry a broad product mix with deep product lines.
False
True/False: Specialty retailing is a form of selling by description in that buyers usually do not see the actual product until it arrives.
False
True/False: Supermarkets specialize in selling shopping products.
False
True/False: The emergence of category killers is evidence that does not support the wheel-of-retailing hypothesis.
False
True/False: The primary advantage of franchising is the complete control the franchisee has over the business.
False
True/False: The primary product offered by the department stores is convenience.
False
True/False: Truck wholesalers are usually classified as limited-service wholesalers because they offer a limited line of products.
False
True/False: Typical limited-service wholesalers are rack jobbers, truck wholesalers, specialty-line wholesalers, and cash-and-carry wholesalers.
False
True/False: Wholesalers do not engage in selling to reseller, government, or institutional users.
False
True/False: Wholesalers perform marketing functions only for the retailers below them in the channel of distribution.
False
True/False: Wholesalers rarely handle credit for retailers and producers.
False
True/False: Within the same franchising organization, all franchisees pay the same amount for the same services.
False
Which of the following is a full-service merchant wholesaler?
General merchandise wholesaler
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
An example of an emerging type of power shopping center might contain
Michael's, Office Depot, T.J. Maxx, and Circuit City
Who provides the environment in which exchanges with ultimate consumers occur?
Retailers
Through the years, drugstores have added more unrelated products to their product mix, such as lawn care supplies, food items, housewares, and small appliances. This illustrates which of the following retail strategy issues?
Scrambled merchandising
Which of the following is not an advantage of franchising for the franchisee?
The franchisee gives up a certain amount of control when participating in a franchise agreement.
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.
Which of the following is an example of a category killer?
Toys "R" Us
Greg Prakash 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?
Truck
What type of wholesaler transports a limited line of products directly to customers for immediate inspection and selection?
Truck jobbers
True/False: Appliances are an example of a major product line commonly carried by discount stores.
True
True/False: By buying in large quantities and delivering to customers in smaller lots, a wholesaler may perform physical distribution activities more efficiently than a producer.
True
True/False: Commission merchants tend to have relatively broad powers concerning prices and terms of sales.
True
True/False: Department stores are characterized by wide product mixes.
True
True/False: Direct selling is the most expensive form of retailing.
True
True/False: Distribution of all goods requires wholesaling activities, whether or not a wholesaling institution is involved.
True
True/False: Exterior atmospheric elements include the appearance of the storefront, display windows, store entrance, and amount of traffic congestion.
True
True/False: Fewer enclosed regional malls have been built in recent years; developers are instead opening shopping centers that focus as much on entertainment as on shopping.
True
True/False: General-line wholesalers are a type of full-service merchant wholesaler.
True
True/False: Limited-service wholesalers provide only some marketing services and specialize in a few functions.
True
True/False: Mail-order wholesalers are limited-function wholesalers who sell through catalogs to retailers and organizational customers.
True
True/False: Merchant wholesalers assume risks of ownership.
True
True/False: Most department stores are shopping stores.
True
True/False: New store formats and technological advances are making the retail environment highly dynamic and competitive.
True
True/False: Off-price retailers seek to attract relatively affluent consumers who are price-conscious and knowledgeable about brand names.
True
True/False: Retailers form an important link in the marketing channel because they are both marketers and customers.
True
True/False: Retailing includes all transactions in which the buyer intends to consume the product through personal, family, or household use.
True
True/False: Retailing is the final part of the marketing process in which exchanges are entered into for personal, family, or household purposes.
True
True/False: Selling agents have control over the marketing efforts of manufacturers and may be used in place of a marketing department.
True
True/False: Some purchasing by consumers is an end in itself for example, when it is done to escape boredom.
True
True/False: Store atmospherics are used to create emotional effects that enhance the probability of purchasing.
True
True/False: Telemarketing is often combined with other marketing efforts.
True
True/False: The broker's primary function is to bring the buyer and seller together and assist in negotiating an exchange.
True
True/False: The use of wholesalers permits producers to concentrate on developing and manufacturing products that match consumers' wants.
True
True/False: Warehouse clubs are able to offer a broad range of merchandise because their product lines are shallow and their sales volumes high.
True
True/False: Warehouse showrooms are able to sell products at low prices by passing some of their marketing functions on to consumers.
True
True/False: Wholesaling involves all transactions in which products are bought for resale, for use in making other products, or for general business operations.
True
Which of the following is a large-scale, members-only, retailer that combines cash-and-carry wholesaling with discount retailing?
Warehouse club
Laura Lucas and Marie Clark own and operate a small restaurant. On a weekly basis, they go to their local Sam's Wholesale Club to purchase the food items and cleaning supplies they need for their business. With the exception of the volume they purchase and the items' intended use, this grocery shopping trip is identical to a weekly trip by their families to a grocery store. Sam's is serving as a ___________ wholesaler for these entrepreneurs.
cash-and-carry
Chadwick's sends its customers booklets containing its product offerings and allows them to place orders on the telephone, through the mail, or online. Chadwick's is primarily a(n)
catalog marketer.
A(n) ___________ is a very large specialty store that competes on the basis of lower prices and enormous product availability.
category killer
Michael's, PetsMart, and Staples are all examples of
category killers
A retail strategy of managing groups of similar, often substitutable products produced by different manufacturers is called
category management.
Calhoun Produce, a ___________, takes possession of truckloads of tomatoes, arranges for storage, and transports them to auctions to be sold.
commission merchant
An agent that receives goods on consignment from local sellers and negotiates sales in large, central markets is called a
commission merchant.
Hickory Village Shopping Center has two department stores and some specialty and convenience stores. It serves a large geographic area and holds special events to stimulate consumer traffic. Hickory is a _________ shopping center.
community
In Cara's hometown, there is a mall with a small Sears store, a Macy's department store, a couple of fast food restaurants, a few specialty shops, and some convenience stores. The mall features seasonal sidewalks sales and boat shows. This mall is most likely a ______ shopping center.
community
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.
Compared with other types of retailers, department stores compete mainly on the basis of
customer services.
Off-price retailers feature
deep discounts, few customer services, and central checkouts.
If a store has areas for men's apparel, women's apparel, housewares, cosmetics, and jewelry and competes mostly on the basis of service, it is a(n)
department store.
The three major types of nonstore retailing are
direct marketing, direct selling, and automatic vending.
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.
All of the following are types of direct marketing except
direct selling.
The marketing of products to ultimate consumers through face-to-face sales presentations either at home or the workplace is called
direct selling.
In the Sunday paper, Caitlin sees a flyer for a collector's edition Thomas Kinkade plate that is available to purchase by filling out and mailing in a form or by calling a 1-800 number. This is an example of
direct-response marketing.
When a retailer advertises a product and makes it available for purchase through telephone or mail orders, the retailer is using
direct-response marketing.
Ollies' is a regional self-service retail store that sells name-brand electronics, tools, housewares, and sporting goods at low prices. Ollies' is an example of a
discount store.
Self-service, general merchandise stores such as Kmart are known as
discount stores.
Wal-Mart and Target are both examples of
discount stores.
Wholesalers frequently help retailers with developing a marketing strategy, especially as it relates to the _____ component of the marketing mix.
distribution
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.
Lands' End offers clothing and accessories for all members of the typical household. For many years, the products were sold only through catalogs. Later, they were available through the company on its Internet website. In the past few years, Lands' End has partnered with Sears to offer selected Land' End products inside of Sears retail stores. This move by Lands' End has been criticized by some marketers because it was thought that the Lands' End products were superior in quality to those that are available in Sears stores. Additionally, the products available in Sears stores include Craftsman tools, lawn care equipment, and household appliances, which are not Lands' End types of product lines. This may create mixed messages about Lands' End to prospective customers. By locating in the Sears' stores, Lands' End can do all of the following, except
facilitate wholesale exchanges.
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.
An arrangement in which a supplier grants a dealer the right to sell products in exchange for some type of consideration is
franchising.
Malcolm Lewis has come up with the idea of a system for picking up people's cars while they are at work, washing and waxing them, and returning them for a fee. Having been a big success in his home city, Malcolm plans to expand his operation into other cities. The service described here seems 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.
free-standing
Landry Restaurants, Inc. owns a number of different franchised restaurants, including the Rain Forest Cafe' and their recent addition, the T-Rex Cafe'. Both the Rain Forest and T-Rex restaurants differentiate themselves from their competitors by offering a unique dining experience. At the Rain Forest Cafe' you can dine under a ceiling of lush tropical forest plants while you are viewing the enormous aquarium with exotic fish. Periodically, the rain forest explodes with the sound of waterfalls and birds. Giant stuffed monkeys, parrots, and other jungle creatures are planted within the landscape. The Rain Forest Cafe' also contains a gift shop, where customers can purchase t-shirts, hats, and other items emblazoned with the Rain Forest logo. The newer T-Rex Cafe' has a similar approach to the uniqueness of the dining experience. The T-Rex Cafe' offers guests a hands-on prehistoric experience, including educational, interactive computer screens. Customers can also pan for precious gems and fossils in Discovery Creek or feast on food from the Kitchen of Fire. The T-Rex Cafe' also has a gift shop, where customers can purchase items with the T-Rex logo or build their very own stuffed dinosaur, through "Build-a-Dino" by the "Build-a-Bear" franchise. The Rain Forest Cafe' and T-Rex Cafe' are usually located in tourist-dense areas or large shopping malls in order to capture walk-by traffic. If the restaurants' primary focus was to obtain customers who are walking by, they would definitely not want which of the following locations?
free-standing buildings
If a retailer needed help with store design and training sales personnel, it would most likely use the services of a
full-service wholesaler.
Customers rely on ______ for product availability, breaking larger quantities into smaller ones, technical advice and service, financial assistance, and suitable assortments.
full-service wholesalers
Agents and brokers that facilitate and negotiate purchases but do not actually take title to products are also known as
functional middlemen.
Supermarkets, discount stores, and hypermarkets can all be classified as
general merchandise retailers.
A wholesaler that carries a wide product mix but offers only limited depth within product lines is called a
general merchandise wholesaler.
Brad operates a wholesale company that specializes in providing a wide variety of services to its customers, which are all restaurants. He carries a wide assortment of restaurant equipment and cookware. Brad's business is a
general-line wholesaler.
Kevin is talking with Peter about purchasing a Wendy's franchise. Peter tells Kevin that one of the major advantages of franchising for him to consider is the
higher success rate for franchises.
A ___________ is a retail establishment that combines a supermarket and a discount store in one location.
hypermarket
After shopping in the same store for nearly two hours, Chelsea goes to Burger King for a Whopper, while Cynthia goes to the optical shop to see if her contacts are ready. They engage in these activities without leaving the store in which they have been shopping. They are most likely in a
hypermarket.
The primary advantage of automatic vending as a form of retailing is that
it eliminates the need for sales personnel.
Victor knows that if he decides to buy a franchise, he will most likely have to supply
labor and daily operations.
Location is important to a retailer because
location determines the trading area from which the store must draw its customers.
The kinds of products being sold and the availability of public transportation are both factors that influence a retailer's decision about
location.
The wheel of retailing is a hypothesis that holds that new types of retailers often enter the market as _________ operators.
low-status, low-margin, low-priced
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.
All of the following are examples of full-service wholesalers except
mail-order wholesalers.
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.
Independent intermediaries that represent two or more sellers and usually offer customers complete product lines in a restricted territory are called
manufacturers' agents.
Martin owns and operates a wholesale hardware business that supplies small hardware parts to various manufacturers in the area. He takes title to the hardware and assumes all risks associated with ownership. Martin is a
merchant wholesaler.
Specialty stores offer ______ than department stores.
more sales expertise and better selections
A general-line wholesaler would be expected to carry a ___________ product mix.
narrow and deep
The wheel-of-retailing hypothesis suggests that
new retailers enter the marketplace with low prices, low profit margins, and low status but eventually move to the high end of the price/cost/service scale.
Manufacturers' agents offer products that are both
noncompeting and complementary.
Direct marketing, direct selling, and automatic vending are all examples of _________ retailing.
nonstore
Stores such as T.J. Maxx, Burlington Coat Factory, and Marshalls buy manufacturers' seconds, overruns, returns, and off-season production runs at below wholesale prices. These firms resell this merchandise to consumers at deep discounts, and are called
off-price retailers.
Brad accesses Borders Books and Prints' site on the World Wide Web and purchases a copy of a new best seller. This is an example of
online retailing.
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.
Shopping centers include
outlet, power, lifestyle, superregional, regional, neighborhood, and community.
The primary function of most wholesalers is to
perform physical distribution of products from manufacturers to retailers.
Wal-Mart has its own fleet of trucks and works directly with producers to take care of the ordering, delivery, and handling of goods. In addition, Wal-Mart works directly with suppliers through its advanced system of inventory control and data processing. Wal-Mart is
performing many of the critical functions of wholesalers through its own system.
With respect to inventory, wholesalers can help retailers with all of the following except
production.
Angela Barton approaches David Hughes, owner of Hughes Auto Parts, to talk about the possibility of adding a new line of products to his store. Angela tells David that the product is a line of high-quality driving sunglasses. She offers to set up the display, service and restock it weekly, and maintain billing and inventory records. She tells David that all she needs is a couple of square feet of space. Angela is in the business of serving retailers as a
rack jobber.
Lynn Taylor sells Revlon cosmetics on consignment to grocery stores, maintains the display racks, and restocks when necessary. Lynn's job is best described as a
rack jobber.
Full-service, specialty-line wholesalers that own and maintain displays in discount stores and supermarkets are called
rack jobbers.
A shopping center containing a Macy's, Marshall Fields, and JC Penney's as well as dozens of specialty shops, restaurants, and entertainment is most likely a
regional shopping center.
Dawn is concerned that there are not enough avid quilters in Centerville to support her Quilts Unlimited store. Her business adviser suggests that she not limit her promotion to the Centerville population but also consider outshoppers. This approach is most likely to work if her store is located in a
regional shopping center.
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
Landry Restaurants, Inc. owns a number of different franchised restaurants, including the Rain Forest Cafe' and their recent addition, the T-Rex Cafe'. Both the Rain Forest and T-Rex restaurants differentiate themselves from their competitors by offering a unique dining experience. At the Rain Forest Cafe' you can dine under a ceiling of lush tropical forest plants while you are viewing the enormous aquarium with exotic fish. Periodically, the rain forest explodes with the sound of waterfalls and birds. Giant stuffed monkeys, parrots, and other jungle creatures are planted within the landscape. The Rain Forest Cafe' also contains a gift shop, where customers can purchase t-shirts, hats, and other items emblazoned with the Rain Forest logo. The newer T-Rex Cafe' has a similar approach to the uniqueness of the dining experience. The T-Rex Cafe' offers guests a hands-on prehistoric experience, including educational, interactive computer screens. Customers can also pan for precious gems and fossils in Discovery Creek or feast on food from the Kitchen of Fire. The T-Rex Cafe' also has a gift shop, where customers can purchase items with the T-Rex logo or build their very own stuffed dinosaur, through "Build-a-Dino" by the "Build-a-Bear" franchise. The unique dining experiences offered by the Rain Forest Cafe' and T-Rex Cafe' represent the strategic issue of ___________ addressed by the restaurants.
retail positioning
Any organization that purchases products for the purpose of reselling them to ultimate consumers is a(n)
retailer.
Lands' End offers clothing and accessories for all members of the typical household. For many years, the products were sold only through catalogs. Later, they were available through the company on its Internet website. In the past few years, Lands' End has partnered with Sears to offer selected Land' End products inside of Sears retail stores. This move by Lands' End has been criticized by some marketers because it was thought that the Lands' End products were superior in quality to those that are available in Sears stores. Additionally, the products available in Sears stores include Craftsman tools, lawn care equipment, and household appliances, which are not Lands' End types of product lines. This may create mixed messages about Lands' End to prospective customers. When Lands' End sells its products through a catalog or the Internet, it is most likely a(an) ________, selling through _____.
retailer; direct marketing
Wal-Mart, Macy's, Nordstrom's, and Toys "R" Us are examples of
retailers.
Direct selling, direct marketing, and vending machines are all examples of
retailing.
The management at Kohler Inc., a manufacturer of sinks, tubs, and other plumbing products, thinks that there will soon be a major growth in home remodeling due to rising interest rates. The management decides to use ___________ in several key cities to provide support services for its sales force in those areas, carry inventory, and offer credit and other services to its retail plumbing customers.
sales branches
A manufacturer-owned operation that provides services usually associated with agents is a
sales office.
Veronica Montez works for Bicardi at a location away from the manufacturing plants. She provides wholesale services to wholesale and retail customers, but her facility does not carry inventory. Veronica works at a
sales office.
Landry Restaurants, Inc. owns a number of different franchised restaurants, including the Rain Forest Cafe' and their recent addition, the T-Rex Cafe'. Both the Rain Forest and T-Rex restaurants differentiate themselves from their competitors by offering a unique dining experience. At the Rain Forest Cafe' you can dine under a ceiling of lush tropical forest plants while you are viewing the enormous aquarium with exotic fish. Periodically, the rain forest explodes with the sound of waterfalls and birds. Giant stuffed monkeys, parrots, and other jungle creatures are planted within the landscape. The Rain Forest Cafe' also contains a gift shop, where customers can purchase t-shirts, hats, and other items emblazoned with the Rain Forest logo. The newer T-Rex Cafe' has a similar approach to the uniqueness of the dining experience. The T-Rex Cafe' offers guests a hands-on prehistoric experience, including educational, interactive computer screens. Customers can also pan for precious gems and fossils in Discovery Creek or feast on food from the Kitchen of Fire. The T-Rex Cafe' also has a gift shop, where customers can purchase items with the T-Rex logo or build their very own stuffed dinosaur, through "Build-a-Dino" by the "Build-a-Bear" franchise. The products available in the gift shops of both the Rain Forest Cafe' and the T-Rex Cafe' are examples of the stores' _______________.
scrambled merchandising
When a retailer adds unrelated but fast-moving products to its existing product mix, it is using
scrambled merchandising.
A channel member that markets all of a manufacturer's goods, has authority over price, promotion, and distribution, but does not take title to the product is a
selling agent.
Thad Rather works for a company that markets all of Celetron's products. Thad's company acts as the marketing department for Celetron, performing all marketing functions without actually taking title to the goods. Thad's company is a
selling agent.
A difference between manufacturers' agents and selling agents is that
selling agents do not have the territorial restrictions that manufacturers' agents do.
All of the following are reasons that retailers might adopt scrambled merchandising except
simplifying their marketing strategies.
Off-price retailers and category killers are both
specialty retailers.
All of the following are types of limited-service merchant wholesalers except
specialty-line wholesalers.
Lands' End offers clothing and accessories for all members of the typical household. For many years, the products were sold only through catalogs. Later, they were available through the company on its Internet website. In the past few years, Lands' End has partnered with Sears to offer selected Land' End products inside of Sears retail stores. This move by Lands' End has been criticized by some marketers because it was thought that the Lands' End products were superior in quality to those that are available in Sears stores. Additionally, the products available in Sears stores include Craftsman tools, lawn care equipment, and household appliances, which are not Lands' End types of product lines. This may create mixed messages about Lands' End to prospective customers. The move to sell Land's End products inside of Sears' stores may lead to potential problems with the customer's perception of Lands' End quality, in part due to the functional and psychological picture in the consumer's mind of Sears' stores. This picture is called the ________ of Sears.
store image
A functional and psychological picture in the consumer's mind of a retail store is called
store image.
A retailer engaged in direct marketing would probably select television home shopping over online retailing to sell a new kitchen device because of
superior ability to demonstrate the product.
Jack Ingalls gets a shopping list from his wife. On the list are a potted plant, fresh salmon, motor oil, bread, milk, and a birthday cake. To make just one stop to save time, Jack should go to a(n)
supermarket.
Kroger, Safeway, and Publix are all considered
supermarkets.
Large, self-service stores that carry a complete line of food products and some nonfood products are called
supermarkets.
Drop shippers
take title to but not physical possession of the goods.
A merchant wholesaler
takes title to goods, assumes risk associated with ownership, and buys and resells products.
Selling agents perform every wholesaling activity except
taking title to products.
The performance of marketing-related activities conducted on the telephone is called
telemarketing.
When products are presented to television viewers, who can purchase them by calling a tollfree number and paying with a credit card, ________ is being used.
television home shopping
Many cities are revitalizing their downtown areas by bringing in new retail establishments. They are building new civic structures, passing ordinances that encourage the restoration of historic buildings, and developing mixed-use structures that include retail, residential, and other uses. These areas are best described as
traditional business districts.
Matt's girlfriend tells him she wants a cashmere sweater for Christmas. Matt decides to go to a store that provides the best possible selection of sweaters. His best choice would be to shop at a________ store.
traditional specialty
Wholesaling can be defined as
transactions in which products are bought for resale.
Retailing is best characterized as
transactions in which the buyer intends to consume the product through personal, family, or household use.
A retailer is an organization that purchases products for the purpose of reselling them to
ultimate consumers.
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.
The difference between an agent and a broker is that an agent
usually represents people on a permanent basis, whereas a broker usually does so on a temporary basis.
Retailers that sell only to members and feature discount retailing combined with cash-and-carry wholesaling are called
warehouse clubs.
Sam's and Costco are examples of
warehouse clubs.
Levitz Furniture locates in huge, low-cost buildings, maintains large, on-premises inventories, and offers minimum service. Levitz is a
warehouse showroom.
Retail facilities located in big, low-cost buildings with large on-premise inventories and minimal services are called
warehouse showrooms.
Rachel begins her children's toy store with relatively low prices, few services, and little prestige. As she begins to attract more customers, she increases her merchandise selections and prices and offers her customers more services. Rachel's store has adhered to the
wheel of retailing hypothesis
Lands' End offers clothing and accessories for all members of the typical household. For many years, the products were sold only through catalogs. Later, they were available through the company on its Internet website. In the past few years, Lands' End has partnered with Sears to offer selected Land' End products inside of Sears retail stores. This move by Lands' End has been criticized by some marketers because it was thought that the Lands' End products were superior in quality to those that are available in Sears stores. Additionally, the products available in Sears stores include Craftsman tools, lawn care equipment, and household appliances, which are not Lands' End types of product lines. This may create mixed messages about Lands' End to prospective customers. In comparison to Lands' End, Sears has a product mix that is most likely
wider and deeper.
