Marketing Chapter 11

Rodney works for a company called Uniform Express, a company that sells uniforms to service workers such as policemen and nurses. Rodney's job is to represent his company in transactions with suppliers and distributors of the company's products. Which of the following best describes Rodney?

He is an agent.

Old Fashioned Bread is a bakery store that sells breads and other baked goods made from a recipe that has been in the owner's family for "over 30 generations". The recipe may be old fashioned, but the company wishes to embrace modern technology in order to create value for the customer while he is shopping in the store. Which of the following is the best technology to incorporate?

Install touch-screen kiosks to give customers more information about the products in the store.

Direct Retail is a retail organization that owns specialty stores for a diverse range of product categories, ranging from home furnishings and sporting goods to books and gourmet foods. With more than 50 stores, the firm is now considering entering the very lucrative low-cost market by launching Cover—a chain of discount retail stores that offers affordable fashion for men, women, and children. If Direct Retail pursues the discount store approach, which of the following is most likely to be true?

It will seek to create profit through large volumes of sales, rather than higher profits.

Direct Retail is a retail organization that owns specialty stores for a diverse range of product categories, ranging from home furnishings and sporting goods to books and gourmet foods. With more than 50 stores, the firm is now considering entering the very lucrative low-cost market by launching Cover—a chain of discount retail stores that offers affordable fashion for men, women, and children. Which of the following, if true, would strengthen the argument for creating a discount store chain?

The retailer's logistics operations are more efficient than the industry norm.

Wholesalers are not as likely to be as well-known as retailers for which of the following reasons?

They do not sell directly to consumers.

Amy's Artwork Supply is a company that sells artwork and art supplies. The company owns and operates 10 different stores spread throughout the state. Which of the following best describes Amy's Artwork Supply?

a corporate chain

Retailers and wholesalers are similar in which of the following ways?

both focus on bringing value to customers

Retailing involves sales primarily to which group of people?

consumers

Which of the following is NOT considered a retailer marketing decision?

financing

How should retailers react to economic difficulties?

focus on building customer value

Which of the following best describes a retailer that buys at less-than-regular wholesale prices and sells at less than retail?

off-price retailer

Which of the following is a decision that is made by both retailers and wholesalers?

segmentation of target market

Cellie's Cell Phones has a unique way of differentiating itself from the competition. At its stores, instead of playing with a floor model, the store allows you to actually try the phone in its "natural environment"—at home with the customer. Customers at Cellie's are allowed to "test drive" a phone for up to 30 days, after paying a 30% deposit. If the customer does not like the phone, the customer can return it, no questions asked. The store also offers cell phone "classes" for the "technologically impaired" and the "cell phone forum" where customers can meet and share information about the phones via its website. Which of the following does Cellie's focus on in order to differentiate itself from the competition?

services mix

Germaine's Glassware knows that customers are the most important part of the marketing process—marketing does not work unless it causes the customer to purchase the product. Consequently, the company focuses all of its efforts in brand development, logistics, promotion, and merchandising to encourage buyers to purchase the product. Which of the following does Germaine's Glassware engage in?

shopper marketing

Which of the following would NOT be a channel function of a wholesale operation?

store differentiation