Chapter 11 MKTG

The demand for lower prices and higher quality has increased

) Which of the following is true about trends in wholesaling?

community shopping center

A ________ contains between 15 and 50 retail stores, including a department or variety store, a supermarket, specialty stores, professional offices, and sometimes a bank.

lifestyle center

A ________ is a small open-air mall with upscale stores, convenient locations, and nonretail activities such as a playground, hotel, dining establishments, and a movie theater.

shopping center

A ________ refers to a group of retail businesses built on a site that is planned, developed, owned, and managed as a unit

carries a limited line of high-turnover goods for consumer self-service

A convenience store ________.

retailer cooperative

A group of independent retailers that bands together to set up a jointly owned, central wholesale operation and conduct joint merchandising and promotion efforts is referred to as a ________.

investing in information technology systems

According to the text, today's large and progressive wholesalers have successfully reacted to rising costs by ________.

true

Although manufacturers, wholesalers, and retailers do retailing, it is the primary business of retailers.

factory outlet

An off-price retailing operation that is owned and operated by a manufacturer and normally carries the manufacturer's surplus, discontinued, or irregular goods is called a ________.

build value adding customer relationships

As with other types of marketers, a primary goal in wholesaling is to ________.

experiential retailing

Bikers and non-bikers alike enjoy dining at the Harley Davidson Café in Las Vegas. Several Harley Davidson models are on display as well as a very large, uniquely crafted American flag. Menu items include the Easy Rider, the Choppers Cobb salad, and the Harley Hog sandwich. The Harley Davidson Café most likely uses ________.

false

Brokers and agents usually take title to goods and perform various functions for retailers.

manufacturers' offices

C & G Retail, a chain of local supermarkets, procures all its goods directly from the producers' factories. This type of wholesaling is usually done in ________.

Posco better utilizes the services mix to differentiate itself from Campbell

Campbell is one of the oldest retailers in the country. While the service offered at Campbell is fairly mediocre, the retailer is famous for its surprise offerings of seconds, overstocks, and closeouts — occasionally including expensive gadgets and jewelry. Posco, a new chain of retail stores, offers products that are similar to Campbell's offerings; however, Posco is known for encouraging customers to ask questions and for providing service representatives to assist customers in the purchasing decision process. From this scenario, which of the following statements is most likely true?

pop up stores

Carleese, a leading fashion brand, sets up small temporary boutiques across numerous locations during its year-end sale, promoting its outdated products at half the price. These temporary boutiques are referred to as ________.

true

Casey's is a large supermarket that practices everyday low pricing. Therefore, consumers should expect few discounts or sales if shopping at Casey's regularly.

true

Category killers are superstores that carry a deep assortment of a particular product line.

high low

Charging higher prices on an everyday basis, coupled with frequent sales and other price promotions to increase store traffic, create a low-price image, or attract customers who will buy other goods at full prices is referred to as ________ pricing.

false

Convenience stores are the most frequently visited type of retail store.

full service retailer

Customers at Carat, a premium jewelry store, are encouraged to make an appointment before a visit so that a customer service representative is assigned to them. These representatives help every customer make a purchase that meets his or her needs and budget after considering numerous options. The different styles and special features of the jewelry are explained to each customer to aid the purchase decision. In this case, Carat is an example of a(n) ________.

wide varieties of product lines

Department stores are most likely characterized by ________.

factory outlet

Dina loves branded apparel and accessories but cannot afford to buy them too often. Fortunately, Dina lives close to an off-price retail store that is owned and operated by a famous brand. The company utilizes this store to sell its surplus, discontinued, or irregular goods at significantly lower costs. The retail store is best referred to as a ________.

warehousing

Electronics Storage is a wholesaler that holds inventories, thereby reducing carrying costs and risks for both suppliers and customers. Which channel function does Electronics Storage primarily provide?

false

Factory outlet malls combine manufacturers' outlets with off-price retail stores and department store clearance outlets.

self service retailer

Food Galore is a regional chain of supermarkets in the Midwest. The primary role of the staff is to restock shelves and operate cash registers. Customers locate, compare, and select their groceries and other sundry items. Food Galore is most likely a ________.

showromming

Grace and her fiancé visit several furniture stores in and around their hometown of Milwaukee. They use their smartphones to capture information about manufacturers and pricing, and ultimately decide to purchase their favorite items online. This is referred to as ________.

merchant wholesaler

Hamilton Wholesaling, an electronics wholesaling firm, provides many services to customers including buying, storing, and transporting expensive and delicate electronics equipment. Hamilton takes title of ownership to all goods that the firm handles. Hamilton is most likely a(n) ________.

true

In a retailer cooperative, independent retailers band together to set up a jointly owned, central wholesale operation and conduct joint merchandising and promotion efforts.

true

In an automated warehouse, orders are fed directly from the retailer's information system into the wholesaler's, and the items are picked up by mechanical devices and taken to a shipping platform where they are assembled.

false

Independent off-price retailers purchase merchandise at rates that are substantially higher than regular wholesale rates.

the blurring of distinctions between retailers and wholesalers

JP Wholesalers is one of the largest wholesalers of wooden furnishings in the country. Recently, the company opened a chain of stores called JP Designer Homes that has become popular due to the good reputation the company has as a wholesaler. The company has now started acquiring smaller retail chains and consolidating its position in the market. Which of the following trends is reflected in this scenario?

department store

Jones & Company, a major retail chain across the United States, offers a wide range of consumer goods such as clothing, furniture, home appliances, cosmetics, jewelry, and food. Jones & Company is best described as a ________.

interdependent off price retailer

Kids.com is an online retailer that buys clothing from a variety of brand name manufacturers at less-than-regular wholesale prices and then charges customers less than retail. Kids.com is an example of a(n) ________.

discount stores

Leading "big-box" stores, such as Walmart and Target, now dominate the retail scene. However, even "small-box" stores like Dollar General, are thriving in the current economic environment. All three retailers are considered ________.

true

Manufacturers' agents are the most common type of agent wholesaler.

true

Merchant wholesalers are the largest single group of wholesalers, accounting for roughly 50 percent of all wholesaling.

franchise organization

Mind and Body Fitness recently entered into a financial agreement that allows 25 independent business people at select locations across the country to set up establishments that offer its holistic services and programs. They include weight-management, group programming, sport-specific training, yoga, Pilates, and nutrition. Which type of contractual retail association does this represent?

category killer

Office Solutions is a large retailer that specializes in office products and services. Their offerings include a wide and deep assortment of computers, desk furniture, printers, office supplies, stationery, and printing. Office Solutions is most likely an example of a ________.

false

Omni-channel retailing creates a seamless cross-channel buying experience that includes in-store and online shopping but excludes mobile

provision of individual entrances to each store

Power centers are characterized by the ________.

false

Pricing decisions of specialty stores are typically based on low markups on a high volume of products.

reduced differentiation

Retail convergence most likely leads to ________.

store atmosphere

Retailers must decide on three major product variables: product assortment, services mix, and ________.

true

Service retailers in the United States are growing faster than product retailers.

true

Shopper marketing involves focusing the entire marketing process — from product and brand development to logistics, promotion, and merchandising — toward turning shoppers into buyers at the point of sale.

broker

Solutions Inc. negotiates the sale of materials between lumberyards and commercial construction companies, receiving a 15 percent commission on all transactions. Solutions Inc. is considered a ________.

narrow product lines with deep assortments

Specialty stores are characterized by ________.

limited service

Stores that provide moderate sales assistance because they carry shopping goods about which customers need a moderate level of information are called ________ retailers.

specialty store

The American Tie Company, a necktie retailer, offers a deep assortment of men's neckties. The American Tie Company is best described as a(n) ________.

false

The Great Recession put heavy pressure on wholesalers to increase their operation costs and limit warehouse automation systems.

high low pricing

The Toby's chain of first-class department stores carries a wide range of product lines, including clothing, jewelry, kitchenware, and home furnishings. Toby's typically charges higher prices on an everyday basis and then holds frequent sales and price promotions to increase store traffic. Toby's most likely uses ________.

true

The retailer's product assortment should be distinguishable and also match target shoppers' expectations.

true

The rise of megaretailers has shifted the balance of power between retailers and producers. Since megaretailers have access to numerous consumers, they have significant power when dealing with manufacturers.

false

The suppliers who are not adding value based on cost and quality are more in demand than their competitors.

false

The three types of off-price retailers are: independents, factory outlets, and corporate chains

true

Too many retailers, even big ones, fail to clearly define their target markets and positions

false

Venns is a chain of department stores that has become more focused in recent years and now stocks only exclusive labels of designer home accessories. Venns has transformed itself into a chain of pop-up stores.

false

Voluntary chains are normally based on one unique product or a specific trade name.

management services and advice

Wayne Wholesaling fulfills many channel functions for its customers. The company mainly focuses on helping retailers to train their salespeople, improve store layouts, and set up inventory control systems. Based on this description, which channel function is provided by Wayne Wholesaling?

segmentation

What is most likely the first major marketing decision that a retailer must take?

do not take title to goods

When compared to merchant wholesalers, brokers and agents ________.

agents

________ represent buyers or sellers on a more permanent basis than brokers

franchise

Which contractual system is distinguished by the fact that it is normally based on some unique product or service; method of doing business; or trade name, goodwill, or patent that has been developed?

transportation

Which of the following channel functions of wholesalers is demonstrated when a buyer receives quicker delivery because wholesalers are located closer than are producers?

warehouse club

Which of the following is a type of off-price retailer?

tighter consumer spending patterns

Which of the following is an impact of the Great Recession on retailing trends?

Services like hotels, banks, airlines, restaurants, colleges, and hospitals can be retailed.

Which of the following statements is true of retailing?

Shopping centers are groups of retail businesses built on a site that is planned, developed, owned, and managed as a unit.

Which of the following statements is true of shopping centers?

category killer

Which term refers to a giant specialty store with a very deep assortment of a particular product line?

superstores

Which type of retailer is much larger than a regular supermarket and offers a large assortment of routinely purchased food products, nonfood items, and services?

specialty stores

Which type of retailer typically carries deep product assortments of narrow product lines?

full service stores

Which types of stores are characterized by specialty goods for which customers need assistance and higher operating costs that are passed along to customers as higher prices?

selling and promoting

Which wholesaler channel function is demonstrated when a wholesaler's sales force helps a manufacturer reach many small customers at a low cost?

true

Wholesalers absorb risk by taking title and bearing the cost of theft, damage, spoilage, and obsolescence.

false

Wholesalers fall into three major groups: merchant wholesalers, brokers and agents, and megawholesalers.

adding service charges to small purchase orders

Wholesalers most likely discourage less-profitable customers by ________.

warehouse clubs

________ are off-price retailers that operate in huge facilities offering few frills but ultra-low prices and surprise deals on selected branded merchandise.

merchant wholesalers

________ are the largest group of wholesalers and can be divided into two broad types of wholesalers: full-service and limited-service.

shopper marketing

________ builds around what P&G calls the "First Moment of Truth" — the critical three to seven seconds that a shopper considers a product on a store shelf.

omni-channel retailing

________ creates a seamless cross-channel buying experience that integrates in-store, online, and mobile shopping.

off price retailers

________ have filled the ultralow-price, high-volume gap by buying at less-than-regular wholesale prices and charging consumers less than retail.

wholesaling

________ includes all the activities involved in selling goods and services to those buying them for resale or business use.

franchises

________ now command about 45 percent of all retail sales in the United States.

corporate chains

________ refer to two or more outlets that are commonly owned and controlled.

retailing

________ refers to the activities involved in selling products or services directly to final consumers for their personal, nonbusiness use.