Marketing Exam 3 - Chapter 11

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

FALSE

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

FALSE

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

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.

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.

FALSE

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

FALSE

Which of the following statements is true of retailing?

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

________ 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.

Shopper marketing

Which of the following statements is true of shopping centers?

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

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) ________.

specialty store

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

specialty stores

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

store atmosphere

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

tighter consumer spending patterns

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 ________.

) experiential retailing

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

FALSE

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

Agents

A convenience store ________.

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

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

Corporate chains

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

FALSE

Specialty stores are characterized by ________.

Department stores are most likely characterized by ________narrow product lines with deep assortments

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

FALSE

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

FALSE

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

Franchises

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

Merchant wholesalers

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

Off-price retailers

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

Omni-Channel Retailing

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?

Posco better utilizes the services mix to differentiate itself from Campbell.

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

Retailing

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

TRUE

By taking ownership and bearing the cost of any theft, damage, spoilage, and obsolescence, wholesalers assume risk.

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.

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.

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.

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.

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.

TRUE

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

TRUE

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

TRUE

Which of the following is true about trends in wholesaling?

The demand for lower prices and higher quality has increased.

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

Warehouse clubs

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

Wholesaling

Wholesalers most likely discourage less-profitable customers by ________.

adding service charges to small purchase orders

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 ________.

broker

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

build value-adding customer relationships

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 ________.

category killer

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

category killer

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

community shopping center

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 ________.

department store

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 ________.

discount stores

When compared to merchant wholesalers, brokers and agents ________.

do not take title to goods

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 ________.

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 ________.

factory outlet

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?

franchise

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?

franchise organization

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) ________.

full-service retailer

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?

full-service stores

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.

high-low

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 ________.

high-low pricing

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) ________.

independent off-price retailer

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

investing in information technology systems

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.

lifestyle center

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

limited-service

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?

management services and advice

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 ________.

manufacturers' offices

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) ________.

merchant wholesaler

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 ________.

pop-up stores

Power centers are characterized by the ________.

provision of individual entrances to each store

Retail convergence most likely leads to ________.

reduced differentiation

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 ________.

retailer cooperative

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

segmentation

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 ________.

self-service retailer

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

selling and promoting

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

shopping center

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 ________.

showrooming

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?

superstores

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?

the blurring of distinctions between retailers and wholesalers

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

transportation

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

warehouse club

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?

warehousing

Department stores are most likely characterized by ________.

wide varieties of product lines