BA 390 Chapter 13 Practice
One type of contractual retail association is a ________, which is a group of independent retailers that bands together to set up a jointly owned, central wholesale operation and conduct joint merchandising and promotion efforts.
retailer cooperative See text: Types of Retailers ~ Organizational Approach
A retail trend resulting from weak economic conditions is ________.
tighter consumer spending Even as the economy has recovered, retailers are still facing tighter consumer spending.
________ carry narrow product lines with deep assortments within those lines.
Specialty stores See text: Types of Retailers ~ Product Line
Which of the following statements about major retail trends is true?
Online buying is growing at a much brisker pace than retail buying as a whole Although it currently accounts for only about 8% of total U.S. retail sales, online buying is growing at a much brisker pace than retail buying as a whole. Last year, U.S. online retail sales grew 14 percent over the previous year versus a 2.2 percent increase in overall retail sales.
Wholesalers add customer value through the __________ they offer.
products and services Wholesalers add customer value through the products and services they offer. They are often under great pressure to carry a full line and stock enough for immediate delivery.
Increasingly, different types of retailers now sell the same products at the same prices to the same consumers. This trend is called ________.
retail convergence
By performing the channel function of ________, wholesalers' sales forces help manufacturers reach many small customers at a low cost.
selling and promoting Through selling and promoting wholesalers' sales forces help manufacturers reach many small customers at a low cost. The wholesaler has more contacts and is often more trusted by the buyer than the distant manufacturer.
A ________ contains between 15 and 50 retail stores. It normally contains a branch of a department store or variety store, a supermarket, specialty stores, professional offices, and sometimes a bank.
community shopping center See text: Place Decision
Tiffany and Neiman Marcus are classified as __________ retailers.
full-service Full-service retailers, such as high-end specialty stores (for example, Tiffany and Williams-Sonoma) and first-class department stores (such as Nordstrom and Neiman Marcus), assist customers in every phase of the shopping process. Full-service stores usually carry more specialty goods for which customers need or want assistance or advice. See text: Types of Retailers ~ Amount of Service
A discount store (for example, Target, Kohl's, or Walmart) sells standard merchandise at lower prices. To do this, discount stores accept which of the following two conditions?
Lower margins and selling higher volume See text: Types of Retailers ~ Relative Prices
__________ have shifted the balance of power between retailers and producers.
Megaretailers Megaretailers have shifted the balance of power between retailers and producers. A small handful of retailers now controls access to enormous numbers of consumers, giving them the upper hand in their dealings with manufacturers.
__________ are huge unenclosed shopping centers consisting of a long strip of retail stores including freestanding anchor stores.
Power centers Power centers are huge unenclosed shopping centers consisting of a long strip of retail stores, including large, freestanding anchors such as Walmart, Home Depot, Costco, Best Buy, Michaels, PetSmart, and Office Depot. Each store has its own entrance with parking directly in front for shoppers who wish to visit only one store. See text: Place Decision
The retail marketing mix consists of which of the following?
Product and service assortment, retail prices, promotion, and place See text: Figure 13.1 Retail marketing mix
Retailers must decide on which three major product variables?
Product assortment, services mix, and store atmosphere See text: Product Assortment and Services Decision
Which one of the following statements does NOT portray the success of global expansion of major retailers? A. Retailers with unique formats and strong brand positions are increasingly moving into other countries. B. Adapting the operations that work well in the home country create success abroad. C. Retailers can face dramatically different retail environments when crossing countries, continents, and cultures. D. Many retailers are expanding internationally to escape saturated home markets. E. International retailing presents challenges as well as opportunities.
Adapting the operations that work well in the home country create success abroad Simply adapting the operations that work well in the home country is usually not enough to create success abroad. Instead, when going global, retailers must understand and meet the needs of local markets.
________ are the largest single group of wholesalers, accounting for roughly 50% of all wholesaling.
Merchant wholesalers
__________ are the largest single group of wholesalers.
Merchant wholesalers Merchant wholesalers are the largest single group of wholesalers, accounting for roughly 50 percent of all wholesaling.
__________ retailing refers to the creation of a seamless cross-channel buying experience.
Omni-channel Omni-channel retailing refers to creating a seamless cross-channel buying experience that integrates in-store, online, and mobile shopping.
L.L. Bean has turned its flagship store into a full-fledged outdoor adventure center, which is an example of __________.
experiential retailing Many retailers practice experiential retailing. For example, L.L. Bean has turned its flagship Freeport store and campus into a full-fledged outdoor adventure center, where customers can hike, bike, golf, kayak, or even go seal watching or fishing at nearby Cisco Bay. See text: Product Assortment and Services Decision
By practicing ________, today's retailers are increasingly adopting environmentally sustainable practices.
green retailing
Which wholesaler channel function helps reduce inventory holding costs and the risks of suppliers and customers?
Warehousing Wholesalers hold inventories, thereby reducing the inventory costs and risks of suppliers and customers.
Which of the following statements about retailer marketing decisions is correct? A. Stores do not need to differentiate and position themselves. B. Retailers do not differentiate themselves on their service mix. C. Retailers do not have to segment and target their markets. D. Most retailers seek either high markups on higher volume or low markups on lower volume. E. Many retailers identify three critical factors for retail success: location, location, and location.
Many retailers identify three critical factors for retail success: location, location, and location. Retailers often point to three critical factors in retailing success: location, location, and location! It's very important that retailers select locations that are accessible to the target market in areas that are consistent with the retailer's positioning. See text: Place Decision
_______ involves focusing the entire marketing process toward turning shoppers into buyers as they approach the point of sale.
Shopper marketing Many marketers are now embracing the concept of shopper marketing, focusing the entire marketing process—from product and brand development to logistics, promotion, and merchandising—toward turning shoppers into buyers as they approach the point of sale. See text: Retailing: Connecting Brands with Consumers
Which of the following statements about wholesaling is true? A. Wholesalers do not need to define a target market. B. Wholesalers do not need to differentiate themselves. C. Wholesalers do not make positioning decisions. D. Wholesalers do not need to segment their markets. E. Wholesalers must make decisions regarding their marketing mix.
Wholesalers must make decisions regarding their marketing mix Like retailers, wholesalers must decide on their marketing mix, which consists of product and service assortments, prices, promotion, and place.