MKT 304 Chapter 12
Franchisors
- usually receive fees and commissions from the franchise holder. - reduce the risk of starting a new retailing business because a good strategy has already been developed and tested. - often help franchise holders by providing purchasing power and promotion support. - leave it to retail franchise holders to carry out the strategy in their own units.
Online sales are growing at a rate of about ________ percent a year, compared to a growth rate of roughly ________ for all retail sales.
15; 2
Which of the following is true of a franchise operation?
A franchise holder needs to strictly follow franchise rules established by the franchisor.
Which of the following statements about different types of wholesalers is false?
Agent wholesalers generally provide more services than limited-function wholesalers.
Which of the following statements is true in the context of "differences in retailing in different nations"?
Consumers in less-developed nations often do not have the income to support mass distribution.
Which of the following statements is not likely to be true of a fast food restaurant franchise?
Retail franchise holders are not responsible for carrying out a marketing strategy.
Which of the following businesses is least likely to own the products it sells?
an auction company specializing in original art
Specialty shops
are known for the distinctiveness of their line and the superior services offered.
Department stores
are usually strong in customer services.
Manufacturers' sales branches
are warehouses that producers set up at separate locations away from their factories.
Automatic vending machines attract customers primarily because of their
convenience.
Rusty's Auto Parts is a retail firm that owns and manages twelve stores in Wisconsin. Rusty's Auto Parts sounds like a
corporate chain.
Wholesaling is primarily concerned with the activities of those establishments that sell
good to retailers and other merchants.
A supercenter
is concerned with providing all of the customer's routine needs at a low price.
The idea underlying the mass-merchandising concept is that
low prices should be offered to get faster turnover and greater sales volume.
The "wheel of retailing" theory suggests that
new types of retailers enter as low-price operators and eventually begin to offer more services and charge higher prices.
Phillips and Sanchez is a retailer that operates a national chain of home furnishings stores. It has designed a website and a suite of apps that enable customers to shop seamlessly online, storing the items in their cart and their search history and making them available across multiple devices. When customers make an online purchase, the website and apps let them choose between having the products delivered to their homes or made available for pickup at one of Phillips and Sanchez's locations. These are examples of an ________ strategy.
onmichannel
Which of the following is an advantage that shopping at a physical store has over shopping online?
personal help and interaction
Kiara owns a corner convenience store. In one aisle there is a display of about 30 different greeting cards for sale. The display is actually maintained by a ________ that ensures it is kept stocked with seasonally appropriate cards.
rack jobber
A ______ is a group of independent retailers that pool purchasing and marketing expenses to increase their efficiency.
retailer's cooperative
Retailers that carry any product line that they feel they can sell profitably are engaging in
scrambled merchandising.
Which of the following practices is most likely to trouble a traditional brick-and-mortar retailer?
show-rooming
When a customer buys a pack of Trident chewing gum from a 7-11 store instead of a Shell gas station,
the Shell gas station suffers.
Which of the following best describes what "retailing" involves?
the sale of products to final consumers
In developing a marketing strategy, the most important thing for a retailer to consider is
why the members of their target market buy where they do.
