mktg ch 16
In order to justify direct-response marketing, a product really needs to be priced above
$20
The target market of a regional shopping center typically includes at least ___ people
150,000
With respect to retailing, what is the "party plan"?
A consumer acts as a host and invites friends to view merchandise in a group setting, where a salesperson demonstrates the products
What is the primary difference between an agent and a broker?
An agent represents a company on a permanent basis while a broker is employed temporarily
What type of retailing began with Montgomery Ward in the late 1800s?
Catalog marketing
Which of the following is a common feature of a warehouse club?
Concrete floors and wide aisles
Which of the following was developed in 1927 to supply milk, eggs, and other products for customers replenishing their ice boxes?
Convenience stores
What type of retailers are the primary competitors for specialty retailers?
Department stores
Ado Systems is an organization that mails product brochures and coupons to potential consumers who can then purchase these products by mail or phone. Ado Systems illustrates which of the following methods of selling retail products?
Direct-response marketing
Which type of retailer generally accepts lower margins than traditional retailers in exchange for higher sales volume?
Discount stores
Which of the following is a full service merchant wholesaler?
General merchandise wholesaler
What is the primary distinction between superstores and hypermarkets?
Hypermarkets are larger and have more types of products than superstores.
What is the most popular type of product sold through television home shopping?
Jewelry
Janette Down is planning to open an upscale dress boutique. She is evaluating ease of movement to and from sites, vehicular traffic, types of stores in the area, and transportation networks. Which strategic retailing issue is she concerned with at the time?
Location
Which of the following services would a wholesaler least likely provide to a manufacturer?
Look for and coordinate supply sources
___ provide an effective method of selling small items to customers in remote areas that other wholesales might find unprofitable to serve.
Mail-order wholesalers
An example of an emerging type of power shopping center might contain
Michael's, Office Depot, TJ Maxx, and Circuit City
___ have been successful because consumers are willing to drive significant distances to save money buying manufacturers' closeouts and irregulars.
Outlet shopping centers
What is a potential disadvantage of direct selling?
Personal attention is lacking
Who provides the environment in which exchanges with ultimate consumers occur?
Retailers
Through the years, drugstore have added more unrelated products to their product mix, such as lawn care, food items, housewares, and small appliances. This illustrates which of the following retail strategy issues?
Scrambled merchandising
What is a potential disadvantage of direct selling?
Some customers view direct selling negatively.
Which of the following is not an advantage of franchising for the franchisee?
The franchisee gives up a certain about of control when participating in a franchisee agreement.
In franchising, which of the following is not a benefit that the franchiser gains?
The franchiser gains more control over how the franchisees operate the establishments.
Which of the following is not a factor used to classify wholesalers?
The price range of the products carried by the wholesales
Which of the following is an example of a category killer?
Toys R Us
Greg works with a group of farmers who provide him with a regular supply of a variety of fresh vegetables. He picks up their produce and has a regular route of grocers and restaurants who purchase quantities of the items he has on any given day. Greg's operation is which type of wholesaler?
Truck
Brianna owns and operates a gift and interior store called the Gingerbread house. She works hard to put together beautiful arrangements and displays throughout the store and always features a burning scented candle and light music. She hopes these efforts will encourage her customers to buy more. Brianna is focusing on
atmospherics
Exterior and interior characteristics such as layout, displays, color and lighting are all elements of a store's
atmospherics
While on family vacation, the Millers realize they left their camera at home. They purchase a disposable camera at an amusement park using their credit card, but never interact with a person. What type of retailing did this transaction most likely involve?
automatic vending
Chelsea has extensive contacts in the real estate business and brings together buyers and sellers. Although she assumes no risks, she can offer specialized knowledge about real estate. Chelsea is a
broker
Karen has been a buyer for Ocean Mist, a large cranberry processor, for several years. Believing that she knows a great deal about cranberries, their growers, and processors, she decides to go into business for herself. Karen wants to assume no risks of spoilage or price fluctuations. She sees herself as simply bringing the growers and processors together. Her new company would be a
broker
The primary purpose of a ___ is to bring buyers and sellers together.
broker
Andrea owns and operates a small novelty store that sells home decor, gifts, jewelry, and gourmet snacks. Because her business is very small, many wholesales will not deal with her, so she relies primarily on ____ for the survival of her business
cash and carry wholesalers
A retail strategy of managing groups of similar, ofter substitutable products produced by different manufacturers is called
category management.
An agent that receives goods on consignment from local sellers and negotiates sales in large, central markets is called a
commission merchant
Calhoun Produce, a ___, takes possession of truckloads of tomatoes, arranges for storage, and transports them to auctions to be sold.
commission merchant
Hickory Village Shopping Center has two department stores and some specialty and convenience stores. It serves a large geographic area and holds special events to stimulate consumer traffic. Hickory is a ___ shopping center.
community
In Cara's hometown, there is a mall with a small Sears store, a Macy's department store, a couple of fast food restaurants, a few specialty shops, and some convenience stores. The mall features seasonal sidewalk sales and boat shows. This mall is most likely a ___ shopping center.
community
A small self-service store that is open long house and carries a narrow product assortment in convenient locations is best described as a
convenience store
Compared with other types of retailers, department stores compete mainly on the basis of
customer services
Off-price retailers feature
deep discounts, few customer services, and central checkouts
All of the following are types of direct marketing except
direct selling
The marketing of products to ultimate consumers though face-to-face sales presentations either at home or the workplace is called
direct selling
In the Sunday paper, Caitlin sees a flyer for a collector's edition Thomas Kinked plate that is available to purchase by filling out and mailing in a form or by calling. This is an example of
direct-response marketing
When a retailer advertises a product and makes it available for purchase through telephone or mail orders, the retailer is using
direct-response marketing
Ollies' is a regional self-service retail store that sells name-brand electronics, tools, housewares, and sporting goods at low prices. Ollies' is an example of
discount store
Self-service, general merchandise stores such as Kmart are known as
discount stores
Walmart and Target are both examples of
discount stores
Wholesalers frequently help retailers with developing a marketing strategy, especially as it relates to the ___ component of the marketing mix.
distribution
Malcolm Lewis has come up with the idea of a system for picking up people's cars while they are at work, washing and waxing them, and returning them for a fee. Having been a big success in his home city, Malcolm plans to expand his operation into other cities. The service described here sees best suited to
franchising
Colin brags to his friend Reid that his new bike ship has lots of parking and great visibility from Harper Avenue, and his nearest business neighbors are several hundred feet away. Colin has selected a ___ site for his retail business.
free-standing
Customer rely on ___ for product availability, breaking larger quantities into smaller ones, technical advice and service, financial assistance, and suitable assortments.
full service wholesaler
If a retailer needed help with store design and training sales personnel, it would most likely use the services of a
full service wholesaler
Merchant wholesales can be divided into two basic categories:
full-service and limited service
Cigarette manufacturer Philip Morris uses the services of Universal Corporation, the worlds largest buyer and processor of leaf tobacco, which provides financing for its customers. This means that Universal is a
full-service wholesaler.
Merchant wholesalers who specialize in just a new functions and pass others along to other intermediaries or customers are called
limited-service wholesalers
The kinds of products being sold and the availability of public transportation are both factors that influence a retailer's decision about
location
Which of the following is the least flexible of these important retailing strategy issues?
location
Location is important to a retailer because
location determines the trading area from which the store must draw its customers
Category killers compete primarily on the basis of
low prices and enormous product availability
Alison lives in a remote area of Montana, where few good road exist. She runs a small retail store specializing in western attire. Due to her remote location, Alison is most likely to obtain the merchandise for her store from
mail-order wholesalers
All of the following are examples of full service wholesales except
mail-order wholesalers
Independent intermediaries that represent two or more sellers and usually offer customers complete product lines in a restricted territory are called
manufacturers' agents
Tupperware, Sarah Coventry, Amway, and Avon sell products outside the confines of retail facilities. They are ___ retailers.
non-store
Manufacturers' agents offer products that are both
noncompeting and complementary.
Direct marketing, direct selling, and automatic vending are all examples of ___ retailing
nonstore
A manufacturers' outlet mall is most appropriately classified as an
off-price retailer
Stores such as TJ Maxx, Burlington Coat Factory, and Marshalls buy manufacturers' seconds, overruns, returns, and off-season production runs at below wholesale prices. These firms resell this merchandise to consumers at deep discounts, and are called
off-price retailers.
Brad accesses Borders Books and Prints' site on the world wide web and purchases a copy of a new best seller. This is an example of
online retailing
With respect to inventory, wholesalers can help retailers with all of the following except
production
Angela approaches David Hughes, owner of Hughes Auto Parts, to talk about the possibility of adding a new line of products to his store. Angela tells David that the product is a line of high-quality driving sunglasses. She offers to set up the display, service and restock it weekly, and maintain biting and inventory records. She tells David that all she needs is a couple of square feet of space. Angela is in the business of serving retailers as a
rack jobber
Lynn Taylor sells Revlon cosmetics on consignment to grocery stores, maintains the display racks, and restocks when necessary. Lynn's job is best described as a
rack jobber
Any organization that purchases products for the purpose of reselling them to ultimate consumers is a
retailer
Walmart, Macy's, Nordstrom's and Toys R Us are examples of
retailers
Direct selling, direct marketing and vending machines are all examples of
retailing
Intermediaries owned by manufacturers that sell products and provide support services to the manufacturers' sales forces are known as
sales branches
The management at Kohler Inc. thinks that there will soon be a major growth in home remodeling due to rising interest rates. The management decides to use ___ in several key cities to provide support services to the sales force in those areas, carry inventory, and offer credit and other series to its retail plumbing customers
sales branches
A manufacturer-owned operation that provides services usually associated with agents is a
sales office
Veronica works for Bacardi at a location away from the manufacturing plants. She provides wholesale services to wholesale and retail customers, but her facility does not carry inventory. Veronica works at a
sales office
A channel member that markets all of a manufacturer's goods, has authority over price, promotion, and distribution but does not take title to the product is a
selling agent
Thad Rather works for a company that markets all of Celeron's products. Thad's company acts as the marketing department for Celeron, performing all marketing functions without actually taking title to the goods. Thad's company is a
selling agent
A difference between manufacturers' agents and selling agents is that
selling agents do not have the territorial restrictions that manufacturers' agents do.
In contrast to industrial products, consumer products are often purchased because of
social influences
A store that offers a wide variety of shoes for men women and children would most likely be considered a
specialty retailer
A narrow product mix with a deep product line would most likely be carried by
specialty retailers
Off-price retailers and category killers are both
specialty retailers.
All of the following are types of limited-service merchant wholesalers except
specialty-line wholesalers
A functional and psychological picture in the consumer's mind of a retail store is called
store image
A retailer engaged in direct marketing would probably select television home shopping over online retailing to sell a new kitchen device because of
superior ability to demonstrate the product
Jack Ingalls gets a shopping list from his wife. On the list are a potted plant, fresh salmon, motor oil, bread, milk, and a birthday cake. To make just one stop to save time, Jack should go to a
supermarket
Kroger, Safeway and Public are all considered
supermarkets
Large, self-service stores that carry a complete line of food products and some nonfood products are called
supermarkets
Which of the following offers the widest product mixes and the deepest product lines?
superregional shopping center
Which of the following may include special attractions such as amusement parks or skating rinks?
superregional shopping centers
A large retailer selling food and most routinely purchased consumer products is a
superstore
Laura goes to Walmart and buys some clothing, a DVD, and all the groceries she need for her family. What type of retailer is this particular Walmart?
superstore
Which type of retail outlet can have up to 200,000 square feet?
superstores
Drop shippers
take title to but not physical possession of the goods
A merchant wholesaler
takes title to goods, assumes risk associated with ownership, and buys and resells products
Many cities are revitalizing their downtown areas by bringing in new retail establishments. They are building new civic structures, passing ordinances that encourage the restoration of historic buildings, and developing mixed-use structures that include retail, residential, and other uses. These areas are best described as
traditional business districts
Matt's girlfriend tells him she wants a cashmere sweater for Christmas. Matt decides to go to a store that provides the best possible selection of sweaters. His best choice would be to shop at a ___ store.
traditional specialty
Wholesaling can be defined as
transactions in which products are bought for resale
Retailing is best characterized as
transactions in which the buyer intends to consume the product through personal, family or household use
Sam's and Costco are examples of
warehouse clubs
The three major types of non store retailing are
direct marketing, direct selling, and automatic vending
By locating in the same general vicinity as other car dealerships, Hartfield Honda can
facilitate comparison shopping
Selling agents perform every wholesaling activity except
taking title to products
The performance of marketing-related activities conducted on the telephone is called
telemarketing
Levitz Furniture locates in huge, low-cost buildings, maintains large, on-premise inventories, and offers minimum service. Levitz is a
warehouse showroom
Which type of franchising is the most popular in the soft-drink industry?
A manufacturer licenses distributors to sell a given product to retailers.
Which of the following is not one of the basic types of franchising arrangements?
A wholesaler franchising a number of producers
What type of shopping center usually consists of several small convenience and specialty stores?
Neighborhood
Which retail stere invests the most in atmospherics?
Neiman Marcus
Chadwick's sends its customers booklets containing its product offerings and allows them to place orders on the telephone, mail, or online. Chadwick's is primarily a
catalog marketer
A ___ is a very large specialty store that competes on the basis of lower prices and enormous product availability
category killer
Michael's, Petsmart, and Staples are all examples of
category killers
If a store has areas for men's apparel, Women's apparel, housework, cosmetics and jewelry and competes mostly on the basis of service, it is a
department store
As discount stores improve their services and atmosphere as well as raise their prices, the distinction between discount stores and ___ is becoming blurred.
department stores
Nordstrom's, Macy's, and JC Penney's are all considered
department stores
When off-price retailers obtain too much in-season, high-quality merchandise, tension between them and ___ builds.
department stores
The use of the telephone and other non personal media to introduce products to consumers, who then can purchase the products through the mail, phone, or web is called
direct marketing
Mark's company takes orders from its collection of retail customers and arranges the shipment of goods directly from manufacturers or other wholesalers to its customers' businesses. Mark is operating as a
drop shipper
An arrangement in which a supplier grants a dealer the right to sell products in exchange for some type of consideration is
franchising
Agents and brokers that facilitate and negotiate purchases but do not actually take title to products are also known as
functional middlemen
Supermarkets, discount stores, and hypermarkets can all be classified as
general merchandise retailers
A wholesales that carries a wide product mix but limited depth within product lines is called a
general merchandise wholesaler
Brad operates a wholesale company that specializes in providing a wide variety of services to its customers, which are all restaurants. He carries a wide assortment of restaurant equipment and cookware. Brad's business is a
general-line wholesaler
Kevin is talking with Peter about purchasing a Wendy's franchise. Peter tells Kevin that one of the major advantages of franchising for him to consider is the
higher success rate for franchises.
A shopping center that contains stores owned by manufacturers who make a special effort not to conflict with traditional retailers is an
outlet shopping center
Shopping centers include
outlet, power, lifestyle, super regional, regional, neighborhood and community
The primary function of most wholesalers is to
perform physical distribution of products from manufacturers to retailers.
Walmart has its own fleet of trucks and works directly with producers to take care of offering, delivery, and handling of goods. In addition, Walmart works directly with slippers through its advanced system of inventory control and data processing. Walmart is
performing many of the critical functions of wholesalers through it's own system.
Full-service, specialty-line wholesales that own and maintain displays in discount stores and supermarkets are called
rack jobbers
A shopping center containing a Macy's, Marshall Fields, and JC Penney's as well as dozens of specialty shops, restaurants, and entertainment is most likely a
regional shopping center
Dawn is concerned that there are not enough avid quilters in centerville to support her Quilts Unlimited store. Her business adviser suggest that she not limit her promotion to the Centerville population but also consider outshoppers. This approach is most likely to work if her store is located in a
regional shopping center
Identifying an unserved of underserved market segment and serving it through a strategy that is distinguished in the mind of the consumer is called
retail positioning
Based on what he has heard regarding the profitability of such items, Paul is considering adding a fresh shellfish case in his grocery store. Paul knows very little about this product or the concerns of shoppers who buy it. He is looking for help in display set-up and merchandising ideas. He should contact a ___ wholesaler.
specialty-line
Kelly Cramer sees a lovely pair of earrings on TV and calls to oder them paying with her credit card. This is an example of
television home shopping
When products are presented to television viewers, who can purchase them by calling a toll-free number and paying with a credit card, ___ is being used.
television home shopping
The type of retail location that is commonly being preserved and revitalized in many cities is the
traditional business district.
A retailer is an organization that purchases products for the purpose of reselling them to
ultimate consumers
By buying in large quantities and delivering to customers in smaller lots, a wholesaler may perform all of the following distribution activities except
unit pricing
The main difference between an agent and a broker is that an agent
usually represents people on a permanent basis, whereas a broker usually does so on a temporary basis.
Retailers that sell only to members and feature discount retailing combined with cash-and-carry wholesaling are called
warehouse clubs
Retail facilities located in big, low-cost buildings with large on-premise inventories and minimal services are called
warehouse showrooms.
Which of the following best describes wholesalers?
Organizations or individuals who buy products for resale to government, reseller, producer, and institutional users.
What type of wholesaler transports a limited line of products directly to customers for immediate inspection and selection?
Truck jobbers
Which of the following is a large-scale, members-only, retailer that combines cash-and-carry wholesaling with discount retailing?
Warehouse club
Select the true statement about wholesaling.
Wholesaling activities must be performed during distribution of all goods, whether or not a wholesaling institution is involved.
Greg chooses to have his hunting equipment store in a location away from the main part of town so that he can have a large parking lot and an outdoor range for customers to test out his merchandise. Greg's store is
a free-standing structure
Alison asks ten of her friends to come over and learn about exciting new cosmetic products. A salesperson from Angel Products makes a presentation and takes the women's orders. This is an example of
a party plan
Automatic vending is
a type of non store retailing
A general merchandise retailer offers
a variety of product lines that are stocked in depth
Laura Lucas and Marie Clark own and operate a small restaurant. On a weekly basis, they go to their local Sam's Wholesale Club to purchase the food items and cleaning supplies they need for their business. With the exception of the volume they purchase and the items' intended use, this grocery shopping trip is identical to a weekly trip by their families to a grocery store. Sam's is serving as a ___ wholesaler for these entrepreneurs.
cash and carry
Which of the following wholesales never take actual possession of the goods?
drop shippers
By using Johnson Wholesale Co. for its distribution needs, the Apex Production has a distinctive competitive advantage because the services performed by Johnson allow Apex to
focus on producing products that meet consumers' needs.
After shopping in the same store for nearly two hours, Chelsea goes to Burger King for a Whopper, while Cynthia goes to the optical shop to see if her contacts are ready. They engage in these activities without leaving the store in which they have been shopping. They are most likely in a
hypermarket
The primary advantage of automatic vending as a form of retailing is that
it eliminates the need for sales personnel.
Victor knows that if he decides to buy a franchise, he will most likely have to supply
labor and daily operations
An open-air shopping center that features upscale specialty, dining, and entertainment stores, usually owned by national chains, is generally called a
lifestyle shopping center
Because Gem Supply's sales have continued to decline, the jewelry manufacturer has found that the costs associated with maintaining its own five-person sales force are prohibitive. The firm's marketing director begins to look for a small company or individual willing to perform the sales function for Gem Supply in its least productive region. The ideal entity would carry complementary but non-competing lines. Such a firm or individual would be classified as a
manufacturers' agent
Martin owns and operates a wholesale hardware business that supplies small hardware parts to various manufacturers in the area. He takes title to the hardware and assumes all risks associated with ownership. Martin is a
merchant wholesaler
Sherri McRae wants to establish a fashion wholesaling firm. Because of the risks involved in the rapid obsolescence of high-fashion items, Sherri does not want to establish an organization in which she has title to the garments. Which for he following types of wholesale establishments has she ruled out?
merchant wholesaler
Specialty stores offer ___ than department stores.
more sales expertise and better selections
A general-line wholesaler would expected to carry a ___ product mix
narrow and deep
The selling of merchandise outside the confines of actual facilities is generally called
non store retailing
Josh tells the loan officer at First Bank and Trust that Clarksville really needs a store that offers high-quality fishing gear to enthusiasts and provides the service and advice that many people want. No other store in the area seems to provide this combination. Josh is trying to use ___ to support his request for a loan to start such a retail operation.
retail positioning
Norah operates an upscales shop that does both pet grooming and human mani pedis. She is reaching a market segment with people who place great value on their dogs and are concerned with their own appearance, yet pressed for time. No other businesses meet the needs of these consumers. Which strategic issue in retailing does Noah appear to have addressed?
retail positioning
