Market 12

Micah needs paper towels and stops at her local Walmart to pick some up. In this instance, Walmart is an example of a ____ store.

brick-and-mortar

Consumers tend to research products before making an online purchase especially when the customer is _____.

buying an item for the first time

Tom's Bakery sells donuts, cupcakes, and bread—but recently the store began to sell plush toys and bubbles because so many of their customers are children and they felt these items would sell easily. Tom's Bakery is using ______ merchandising.

scrambled

Why do Internet retailers have lower operating costs than brick-and-mortar stores?

Fewer salesclerks

Which of the following is true about retailer strategies?

Retailers have an almost unlimited number of ways to alert their offerings to appeal to a larger market.

Jake's pastry shop sells baked goods and coffee to customers. What process is the company engaged in during these activities?

Retailing

What is the name for the collection of activities in which businesses sell things to buyers?

Retailing

What is the name for merchandisers that carry any goods that they think they can sell profitably?

Scrambled

What types of products are traditionally sold through vending machines?

Soft drinks Candy bars

A type of limited-line store that offers one type of product is known as which type of retailer?

Specialty shop

Anna's Antique Emporium is a small business that sells only mid-century antique furniture. Which type of store is this?

Specialty shop

Why are stores such as Toys R Us and IKEA known as category killers?

Their focus on certain products hurts their competitors.

Why do some customers say they dislike supercenters?

They are too crowded.

Name one advantage of limited-line retailers.

They can focus on specific customers.

What is one advantage that truck wholesalers offer?

They can quickly provide goods before they spoil.

Why did general stores decline after the U.S. Civil War?

They did not offer variety within product lines.

What is the status of smaller retail stores in the United States?

They do less business collectively than the larger stores.

Dunkin' Donuts is an example of a _____.

franchise operation

What is a characteristic of merchant wholesalers?

They focus on offering specific types of goods.

What are some of the advantages of limited-line retailers?

They interact with their customers. They can change to adapt to the needs of individual customers.

Which two of the following statements about online retailers are true? (Check all that apply.)

They offer a wide variety of products. They offer low prices to customers who compare prices.

Which of the following is a reason that some wholesalers have increased operating costs?

They provide specialized attention to some consumers.

How do supermarkets cut costs?

They require customers to serve themselves.

What is typically true of new retailing approaches?

They will be adopted elsewhere if they succeed.

A supermarket is a large store that specializes in selling _____.

groceries

The failure rate for small retailers in the United States is _____.

high

After Kroger installed a system to track when more than two customers are waiting in line, it managed to reduce checkout line wait times to _____.

less than 30 seconds

Kim's QuickMart doesn't want to manage the display of daily newspapers it has in the store, so it would rely on a ______ to decide which newspapers to sell.

rack jobber

Academy Sports + Outdoors' primary target market is families looking for moderately-priced sports, outdoor, and lifestyle offerings. The company has a website and brick-and-mortar stores in several states. The stores have a self-service design that encourages customers to select products without the help of a salesperson. These traits all represent the ___ of Academy Sports + Outdoors.

retailer strategy

Kroger has installed special infrared cameras to notify the manager when more than two people are waiting in line. This is an example of ______.

using technology to improve customer service

In the United States, manufacturers' sales branches are classified as _____.

wholesalers

Richard told the marketing team that it was imperative for the company to provide a seamless shopping experience within every shopping channel—online, physical store, and mobile devices. What selling approach is Richard advocating?

Omnichannel

A retailer is more likely to be successful when it ______.

understands why people shop where they do

What type of wholesalers change their marketing approaches and focus on their channels?

Progressive

_____ wholesalers need to be efficient, but that does not mean they all have low costs.

Progressive

Kent posts events and activities on the store's Facebook page as a way to draw in customers. Which of the 4 Ps is Kent using?

Promotion

What two things does a franchise holder receive from a franchise operation?

Purchasing strength Marketing help

Klein's relies on Music Unlimited to decide which titles to place in the local retail stores. Music Unlimited manages all of the music items for Klein's retail stores and other stores. What type of wholesaler is Music Unlimited?

Rack jobber

What is another name for supercenters?

Hypermarkets

Why have some retailers taken their business to other countries?

Limited expansion in their home countries

Wholesalers who engage in only certain wholesaling activities are known as what kind of wholesaler?

Limited-function

What are two examples of "soft goods" sold by mass-merchandisers?

Clothing Housewares

What kind of retailer makes it easy for customers to quickly buy products like milk and bread and avoid purchasing these items at a larger retail grocer?

Convenience stores

What is the general name for companies, such as Walmart and Target, that operate more than one retailing site?

Corporate chains

A _____ carries a limited stock of items and focuses on making shopping easy for their customers.

convenience store

New retail approaches that succeed in one part of the world are often quickly adapted to other

countries

The number of wholesalers in the U.S. has ______ in the last 20 years.

declined

Jenna likes to shop at Macy's because it is a big store that has a shoe department, home decor department, women's and men's clothing and more. Macy's is an example of a ______.

department store

True or false: Companies that collect and analyze big data and respond to an online customer "before the next click" are doing so in order to reach a vast and generalized audience.

False

True or false: Frieda's Wholesale knows that tradition is the key to success and relies on traditional food items to meet the demands of its retail clients.

False

True or false: The wheel of retailing theory provides accurate explanation for all major retailing developments.

False

True or false: When using the omnichannel approach, stores focus on service within a single retail channel.

False

As a demonstration of their innovation in the grocery industry, in a typical year, Frieda's wholesale introduces about ___ new products.

40

Large retail stores that sell more than $5 million annually account for almost ______ of all retail sales in the United States.

75%

In the United States, ____ of all retail operations are classified as small.

85%

What is the name for a company that owns and operates multiple stores?

A corporate chain

Select all the characteristics of category-killer stores.

A focus on specific product types Below average prices

What are two characteristics associated with warehouse clubs?

Annual membership fee usually paid by customers Competitive prices

Customers who buy and receive products from vending machines are participating in what type of retailing?

Automatic vending

Which two items are most commonly purchased online? (Check all that apply.)

Books Music

Which of the following are common ways in which customers obtain information online about products for purchase? (Check all that apply.)

By chatting with a virtual salesclerk By reading posted reviews By viewing photos and videos

Except for the payment required, the activities of service wholesalers resemble the activities of what other type of wholesaler?

Cash-and-carry

What type of wholesaler expects cash payment from its customers?

Cash-and-carry

Limited-function wholesalers who use booklets that feature goods that customers can order are known as what type of wholesalers?

Catalog wholesalers

Which of the following statements is true?

Different consumers favor different kinds of retailers.

A person who travels to homes to sell Mary Kay cosmetics is engaging in what type of retailing?

Door-to-door

What type of retailing features a salesperson visiting a customer at the place where they live?

Door-to-door

Limited-function wholesalers who sell products but do not touch, store, or ship them are known as what type of wholesalers?

Drop-shippers

What kind of wholesalers do not carry stock but take orders and give these orders to manufacturers?

Drop-shippers

What name was given to retailers who stocked a wide range of products and were the main retailers in the U.S. about 150 years ago?

General stores

Which of these can be hidden costs customers encounter when shopping online? (Check all that apply.)

Handling costs Concerns about fraud

Which of the following statements are true about Home Depot as described in the case study?

Home Depot donated $50 million to train 20,000 workers and address a shortage of construction workers. "One Home Depot" combines the best of online and in-store for a better shopping experience.

What is the most obvious prerequisite for a consumer to shop online?

Internet access

What type of retailers are still in the market growth stage?

Internet merchants

How has the rise of carriers such as FedEx and UPS affected wholesalers?

It has hurt their business, since manufacturers can send items to customers.

What is the name for warehouses that manufacturers establish that are distinct from their manufacturing facilities?

Manufacturers' sales branches

What is the name for retailers, such as Target and Walmart, that offer stores with several departments but little customer service?

Mass-merchandisers

Which type of retailers offer low prices to sell large quantities of goods quickly?

Mass-merchandisers

Tesco, Walmart, and Amazon.com are known as which type of retailers?

Mass-merchandising

According to this case, Home Depot introduced what kind of strategy to the home improvement center market?

Mass-merchandising, selling its wide selection of merchandise for low prices with high customer service

What is the term for wholesalers who own the goods they sell to others?

Merchant wholesalers

Why does Amazon.com recommend similar shoes for people who have purchased shoes on its site?

To provide personalized service to consumers

Lawton Convenience stores orders its chips and salty snacks from Harrison Delivery. Harrison Delivery stocks its goods in its own trucks that make the deliveries, which makes it what type of wholesaler?

Truck wholesaler

True or false: Currently, online retail sales are growing at a pace of about 15% a year.

True

True or false: Department stores are usually strong in customer services.

True

True or false: In emerging markets, online sales are almost nonexistent.

True

True or false: When companies decide to move into an international market, they must adapt their strategy to meet local needs.

True

What is the term for retailers, such as Costco and Sam's Club, that offer a limited number of items in their simple yet large stores?

Warehouse club

What is the name for the theory that argues that conventional stores are threatened by low-end stores until they, too, become more conventional?

Wheel of retailing

What is the term for companies that sell to other companies, but not directly to consumers?

Wholesalers

Smith Electrical Supplies sells primarily to electrical contractors and manufacturing firms with no sales to consumers. What type of function is Smith Electrical Supply practicing?

Wholesaling

Although less numerous in some countries, ___ provide only some wholesaling functions and are very important for some products.

limited-function wholesalers

The mass-merchandising concept is based on the idea that _____.

low prices create faster turnover and greater sales

A retailer may be ______, or even declining, in the United States, but only beginning to grow in other countries.

mature

You would find a wider assortment of products to choose from when shopping at a(n) ____ store.

online

What do service wholesalers do?

perform every wholesaling activity

Place, price, promotion, and _____ are the four components of the marketing mix.

product

Burton's, Inc., is a wholesaler that supplies local sporting goods stores with clothing and footwear. Burton's constantly stays aware of when products are becoming popular in youth sports. Burton's customers are always able to purchase these goods before competing stores sell them. Burton's can be described as a(n) _____ wholesaler.

progressive

A wholesaler known as a(n) ______ wholesaler participates in every wholesaling function.

service

Concerns about unexpected shipping costs, the quality of the merchandise, return policy, and personal information security are issues with ______.

shopping online