MKTG EXAM 3 CHAPTER 14

What kind of wholesaler will likely provide chewing gum, tobacco products, candy bars, and other snack foods?

A truck jobber

Merchant wholesalers?

Are independently owned firms that engage primarily in wholesaling and take title to products being distributed.

The internal and external physical characteristics of stores that shape the retail store's image are referred to as?

Atmospherics

A is an independent agent wholesaling middleman that brings buyers and sellers together and provides marketing information to both parties?

Broker

Best Buy (consumer appliances and electronics), Staples (office supplies, furniture, computers, and software), Home Depot (home building supplies and equipment), and Bed Bath & Beyond (home decorating products) are classified as?

Category killers

This offer substantial discounts and probably the best selection of brands for the types of products they merchandise. The retailing strategy is to attract customers through relatively lower-priced offerings and broader selections, thereby eliminating the competition

Category killers

These are responsible for managing a group of related products stocked by a retail store.

Category managers

Are groups of two or more retail stores operated by the same entity?

Chain stores

The primary benefit to consumers when buying from a vending machine is?

Convenience

This carry carefully selected lines of high-turnover consumer food and non-food products, along with various grades of fuel. The focus is to serve "rushed" consumers who place more emphasis on time and place utility as they purchase and are willing to pay higher prices.

Convenience stores

Chain stores with 11 or more retail units or locations are technically called as?

Corporate chains

This typically are well-financed and centrally operated. Their size and financial strength provides them with significant scale economies in purchasing and operations?

Corporate chains

These are owned and operated by corporate chains and carry a broad mix of product lines organized by "departments."

Department stores

Direct mail, telemarketing, on-line marketing, and direct response advertising are all components of ?

Direct marketing

She began her catalog empire with an advertisement for her purses in Seventeen magazine. Young ladies were encouraged to place orders via the telephone or mail.

Direct response advertising

Time-Life regularly airs TV commercials promoting books, DVDs, and CDs. Consumers are shown 1-800 numbers and encouraged to use credit cards to make purchases. Time-Life is employing?

Direct response advertising

Door-to-door selling and party plan selling are both examples of?

Direct selling

Which of the following is true about how direct selling differs from direct marketing?

Direct selling is limited to face-to-face contact sales using door-to-door selling and party plan selling

All of the following are characteristics of direct selling except?

Direct selling is the cheapest form of selling because no retail store-front is required

Provided in shallow, but reasonable, depth. Product lines are organized by departments, few services are provided, the retail setting is austere, and prices are set low to attract price-sensitive consumers.

Discount stores

Walmart, Kmart, Target, Big Lots, Dollar Tree, Dollar General, and Family Dollar are all classified as?

Discount stores

Wells Fargo provides the financial services that allow supply chain members (wholesaling and retailing intermediaries) to establish and operate their businesses.

Facilitating agent

These are not directly involved in the transfer of title for products moved through distribution channels. They do, however, provide a range of specialized support services that allow supply chains to function more efficiently

Facilitating agents

Transportation firms, such as trucking companies and railroads, assist other supply chain members (producers, wholesalers, and retailers) by transporting products from point of production to point of consumption. In the context of supply chains, these transportation firms are called?

Facilitating agents

Warehouses run by third party operators provide access to long-term and short-term specialized storage and inventory management facilities. In the context of supply chains, these warehousing firms are called ?

Facilitating agents

This usually limit sales to products produced by a single manufacturer. These stores are owned and operated by the manufacturer and, therefore, exemplify corporate vertical marketing systems.

Factory outlets

Which of the following is a distinct advantage of the smaller independent retailer over its corporate chain store competitors?

Greater flexibility in operational decision-making at the individual store level

Which of the following is not an advantage of corporate chain stores over smaller independent retailers?

Greater flexibility in operational decision-making at the individual store level

Which of the following is not among the actions that category killers such as Best Buy have taken to effectively compete with department stores and internet retailers, such as Amazon?

Improved merchandising by expanding the merchandise mix

The majority of retailing establishments in the US today are?

Independent retailers

A retail store's also include the decor, merchandise arrangement and crowding, general layout, background music, color schemes, scents, acoustics and noise levels, lighting, and cleanliness of stores.

Internal atmospherics

Retailers work hard to design in-store sensory environments that postively affect one or more of consumers' five senses in order to increase the likelihood of a positive emotional experience. These retailers are focusing on creating positive?

Internal atmospherics

Montana Coffee Traders operates a coffee shop inside of Kroger's Supermarket in Whitefish Montana. Evidently, in this specific case, Montana Coffee Traders is a?

Leased department retailer

The supermarket form of retailing normally commands profit margins, on average, of?

Less than 5%

Specialize in specific product lines, often carrying only a single line. The merchandise mixes are described as "narrow" and "deep."

Limited line retailers

With respect to telemarketing, which of the following techniques are employed for identifying potential prospects?

Lists purchased from third party vendors, Lists of current or past customers, Random digit dialing, Cold-calling from existing phone lists.

Jane Tuttle calls on the many gift shops at Estes Park, Colorado and sells a variety of unique decorative glass items, wind chimes, and picture frames produced by the companies that he represents. The store owners order from Jane rather than from the different manufacturers she represents. Apparently, Jane is a?

Manufacturers' agent

The number of different product lines carried by a retailer is its?

Merchandise breadth

The classification system for in-store retailers based on the retailer?

Merchandise mix

The entire range of products stocked by a retailer is its?

Merchandise mix

Convenience stores, barber shops, hair stylists, manicurists, delies, and other small specially stores tend to located their facilities in ?

Neighborhood centers

This occurs when products are not sold from fixed retail facilities and consist of four basic types: direct selling, telemarketing, direct marketing, and vending.

Non-store retailing

Outdated or out-of-season brand name merchandise at prices that are often below those charged by other discount stores for comparable merchandise.

Off-price retailers

Mary Kay, Tupperware, Stanley Home Products, and Magic Chef all exemplify which form of direct selling?

Party plan selling

This has evolved to reduce some of the more egregious aspects of traditional door-to-door selling. With this form of selling, salespeople recruit prospects to host get-togethers at their homes or their places of work?

Party plan selling

Lowe's, Home Depot, Staples, Target, Walmart, Barnes & Noble, Bally's or LA Fitness Health Clubs, PETSMART, Old Navy, Best Buy, Bed, Bath & Beyond, and Toys-R-Us are typically located in?

Power centers

What are large un-enclosed shopping centers that are normally anchored by large category killers and off-price retailers rather than traditional department stores.

Power centers

The television home shopping format appeals to some consumers for which of the following reasons?

Prices are often perceived as lower, Sales personnel are often perceived as friendlier and better informed, Consumers can shop from the convenience of their own homes, Consumers can see how products work and understand the benefits before they purchaseProducts can be easily demonstrated and plenty of time exists to explain the product's benefits

As practiced today, telemarketing is used for which of the following?

Prospecting for new customers, Gathering customer information, Engaging in customer service and relationship management, Making sales via the telephone

The store managers have said they don't know what to order either. The chain should probably get help from a:

Rack jobber

With respect to telemarketing, these are useful for cold-calling on prospects who may have unlisted numbers?

Random digit dialing

Which of the following is not a response by supermarkets to improve their profit margins?

Reduced reliance on technology to cut costs

Which of the following is not a response by supermarkets to improve their profit margins?

Reduced reliance on vendor assistance to help manage inventory and restock shelves

The Galleria in Dallas is anchored by a Westin Hotel, has an ice-skating rink, offers a five screen cinema, and is populated by more than 200 select retail department stores, specialty stores, and restaurants for its patrons to visit.

Regional center

This includes all activities involved in selling goods and services to ultimate consumers for their own personal use.

Retailing

This exist and operate as the last link in supply chains, primarily making sales to ultimate consumers.

Retailing intermediaries

Amazon.com sells products via the Internet predominantly to ultimate consumers for their own personal or household use.

Retailing intermediary

Smaller independent retailers face high failure rates. Which of the following is NOT among the possible actions which can cut down on the odds of failure for these smaller retailers?

Seek to become part of an established network marketing system

An essentially substitutes for a manufacturer's marketing department by marketing the firm's entire output.

Selling agent

Which of the following is not a form of non-store retailing?

Social network selling

Retailers like The Gap, Victoria's Secret, Bath & Body Works, or Barnes & Noble Booksellers, Hardrock Café, Red Lobster, and On The Border are classified as?

Specialty stores

This attempt to avoid price competition, preferring instead to differentiate themselves by precisely targeting customer segments with narrow and deep assortments of specialized product lines and by providing superior customer service and friendly, knowledgeable and even highly attractive sales staff.

Specialty stores

Vending is a relatively expensive form of retailing due to costs associated with all of the following except?

Spoilage of products not purchased before their expiration date.

The inventory numbers given to products stocked by retailers are called

Stock Keeping Units

Additional services such as fast food restaurants, dry cleaning, banking, check cashing, automobile servicing, and optical centers.

Supercenters

These are slowly dying and probably will be phased out incrementally as consumer demand shifts in favor of the greater convenience of e-commerce and preferences for smaller, local retail facilities over big-box retailers.

Supercenters

Albertsons, Kroger's, Safeway, H.E.B, and A&P are nationally located corporate chains of ?

Supermarkets

Department stores are facing serious competition from discount stores and category killers that offer the same or similar merchandise at lower prices. Which of the following actions are being taken by some department stores, such as Nordstrom, to combat these inroads?

Target upscale shoppers who are less price-elastic, Focus on higher margin products such as clothing, jewelry, and cosmetics, Individual departments may operate as upscale specialty stores stressing enhanced "atmospherics."

The main difference between agent middlemen and merchant wholesalers is?

That agent middlemen do not own the products they sell--while merchant wholesalers do.

A producer has a few territories where many big customers are concentrated, but most of its target customers are spread all over the country. How should the company structure its sales program?

The company should use its own sales branches in the concentrated territories and agents, probably manufacturers' agents, in the others--assuming the concentrated territories are large enough to support sales branches.

The primary factor that distinguishes between a merchant wholesaler and an agent is?

The wholesaler takes title; the agent does not.

Factory outlet malls usually are located in outlying, rural areas in order to?

To avoid conflict with traditional retailers located in regional and power centers that may sell the same brands.

These carry a select line of perishable products and deliver them by trucks to retail stores.

Truck jobbers

Machines that dispense products, video game machines, and bank ATMs all illustrate which form of retailing?

Vending

Engage in both wholesale- and retail-level selling. They attract smaller businesses who can purchase at wholesale prices. Consumers usually pay about 5% more for products than do business customers. Business and consumers generally pay a small annual membership fee.

Warehouse clubs

The major distinction between a retail and a wholesale transaction is?

Whether the product will be used by an organization or by a consumer.

Whether a given transaction is classified as a wholesale sale or as a retail sale essentially depends on?

Whether the product will be used by an organization or by a consumer.

This includes all activities involved in the marketing and distribution of goods and services from one business to other businesses?

Wholesaling