Chapter 13 MAN

convenience stores

7-Eleven, Stop-N-Go, and Circle K, small stores that traditionally have had a primary market of young, blue-collar men, are examples of ________.

Limited-service retailers

________, such as Sears, provide more sales assistance because they carry more shopping goods about which customers need information. Their increased operating costs result in higher prices.

FALSE

In a retailer cooperative, independent retailers contract with each other to set up a central buying operation and conduct joint promotional efforts.

nonstore retailing

In recent years, ________ has/have been growing fast. This includes selling to final consumers through direct mail, catalogs, telephone, and the Internet.

FALSE

In recent years, convenience stores have redesigned their stores to closely focus on serving their primary target market made up of young, blue-collar men.

Franchise

The main difference between ________ organizations and other contractual systems is that these systems are normally based on some unique product or service.

Superstore

Which type of store is much larger than regular supermarkets and offers a large assortment of routinely purchased food products, nonfood items, and services?

full-service stores

Which type of stores usually carry more specialty goods for which customers like to be "waited on" and have much higher operating costs, which are passed along to the customer?

FALSE

Wholesaling includes all the activities involved in selling products or services directly to final consumers for their personal, nonbusiness use.

Supermarkets

________ are facing slow sales growth because of slower population growth, increased competition, and the rapid growth of out-of-home eating.

Factory outlets

________ are sometimes several stores grouped together. These stores offer prices as low as 50 percent below retail on a wide range of mostly surplus, discounted, or irregular items.

Chain stores

________ are two or more outlets that are commonly owned and controlled.

Specialty stores

________ carry narrow product lines with deep assortments within those lines.

Off-price retailers

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

Retailing

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

Self-service

________ is the basis of all discount operations and is typically used by sellers of convenience goods. Retailers offering this level of service require customers to perform their own "locate-compare-select" process in order to save money.

Warehouse clubs

________ operate in warehouse-like facilities, sell a limited selection of items, and offer few frills. Customers pay annual membership fees and are able to purchase goods at deep discounts.

Service

________ retailers in the United States are growing faster than product retailers.

Discount stores

________ sell standard merchandise at lower prices by accepting lower margins and selling higher volume.

Independent off-price retailers

________, which buy at less-than-regular wholesale prices and charge consumers less than retail, are independently owned and run or are divisions of larger retail corporations.

FALSE

A discount store buys at less-than-regular wholesale prices and charges consumers less than retail.

department stores

A growing number of outlet malls now feature brands such as Coach, Polo Ralph Lauren, Dolce & Gabbana, and Giorgio Armani, causing ________ to protest to the manufacturers of these brands.

retailer cooperative

As a result of the great success of corporate chains, many independent stores chose to band together in either a voluntary chain or a(n) ________.

full-service retailer

At Neiman Marcus, a first-class department store, customers shop for specialty products and have come to expect assistance in every phase of the shopping process. Neiman Marcus is a ________.

TRUE

Category killers carry a deep assortment of a particular product line and have a knowledgeable staff.

FALSE

Chain stores are located near residential areas and are open long hours, seven days a week; they carry a limited line of high-turnover goods.

specialty store

GameStop sells video games and systems, offering a narrow product line with a deep assortment within that line. GameStop is a ________.

FALSE

Department stores carry narrow product lines with deep assortments within those lines.

discount stores

Early ________ cut expenses by offering few services and operating in warehouse-like facilities in low-rent, heavily traveled districts.

TRUE

Factory outlets, independent off-price retailers, and warehouse clubs all buy their merchandise in a similar fashion.

FALSE

Full-service retailers, such as Sears or JC Penney, provide more sales assistance because they carry more shopping goods about which customers need information.

Full-service

In the 1970s, Shipshewana was only a small town with a hardware store, a grain mill, a shoe store, a small restaurant, and a grocery store. Over the next two decades, the small town transformed into an international tourist attraction, attracting thousands of tourists who are intrigued with the lifestyle of Shipshewana's largest population the Amish. Ben and Mary Miller, having grown up within the Amish faith, decided to capitalize on their town's popularity and their woodworking skills. Their shop, Indiana Wood, began with a small display of handmade hickory rocking chairs, Ben Miller's specialty. But within a few months, the display at Indiana Wood included picnic tables, flower boxes, and small handmade novelty items. No other shop offers the same. Mary Miller decorated the shop's display room with authentic Amish décor and eventually hired three Amish friends to sew and embroider napkins and other textiles per customer request. In addition, two women from the Amish community sought permission from the Millers to display home-baked pastries and jellies on Tuesdays and Wednesdays, the town's busiest tourist days, when Shipshewana attracts swarms of visitors to its flea market on the south edge of town. "Shipshewana is full of specialty shops," Mary Miller stated. "People don't come here to buy things made in China or Taiwan. They want real, Amish-made goods." 97) Indiana Wood is best classified as a(n) ________ retailer.

TRUE

In warehouse clubs, customers must independently bring large items to the checkout line.

TRUE

Independent off-price retailers may in fact be divisions of larger retail corporations.

FALSE

Limited-service retailers, such as specialty stores and first-class department stores, employ salespeople who assist customers in every phase of the shopping process.

factory outlets

Manufacturers send last year's merchandise and seconds to ________, while they send new merchandise to department stores.

Franchise

McDonald's, Subway, and Pizza Hut are all examples of a ________.

Conglomerates

Merchandising ________ are corporations that combine several different retailing forms under central ownership.

FALSE

Merchandising conglomerates are corporations that combine several different retailing forms under different ownership.

FALSE

Off-price retailers pay regular wholesale prices for their merchandise but maintain low prices by accepting lower margins and selling higher volume.

independent off-price retailer

Overstock.com, a Web seller that buys furniture, clothing, electronics, and more from a variety of producers at less-than-regular wholesale prices and then charges customers less than retail, is a(n) ________.

convenience stores

Service retailers include all of the following EXCEPT ________.

narrow product lines; deep assortments

Specialty stores carry ________ with ________ within them.

category killers

Which of the following is NOT one of the main types of off-price retailers?

full-service retailers

Which of the following retailers likely require the most emphasis on salespeople to assist customers?

Supermarkets

Which type of retailer tends to be the most frequently shopped?

Supermarkets

Which type of small store carries a limited line of high-turnover convenience goods and makes most of its revenues from cigarette, beverage, and gasoline sales?

category killer

Which type of store carries a deep assortment, has knowledgeable staff, and might actually be viewed as a giant specialty store?

Department

Which type of store carries a wide variety of product lines and differentiates itself through service, but has been squeezed in recent years between more focused and flexible specialty stores on the one hand and more efficient, lower-priced discounters on the other?