Chapter 16

Retailers help satisfy customers' needs regarding product by providing which of the following? (Choose every correct answer.) A) A mix of services relating to the products they sell B) Restricted and reduced product access C) Limited service since consumers would rather wait on themselves D) Products in the quantities their customers wish to buy E) An assortment of products geared toward their target market

A) A mix of services relating to the products they sell D) Products in the quantities their customers wish to buy E) An assortment of products geared toward their target market

Which of the following is a retail format that carries a broad variety and deep assortment of merchandise, offers customer services, and organizes their facilities into distinct sections for displaying certain product types? A) Department stores B) Convenience stores C) Full-line discount stores D) Warehouses

A) Department stores

Amazon.com is an Internet channel that consumers use to purchase a wide variety of products. Which of the following aspects of Amazon.com are advantages it has over the store channel? (Choose every correct answer.) A) Greater personalized information B) Greater selection of products C) Greater ability to collect information about consumer shopping behavior D) Greater ability for consumers to touch and try the merchandise

A) Greater personalized information B) Greater selection of products C) Greater ability to collect information about consumer shopping behavior

Which of the following does an integrated CRM facilitate? (Select all that apply.) A) Moving goods from the distribution center faster B) Handling customer complaints C) Isolating customer experiences on different channels D) Expediting returns E) Targeting future promotions

A) Handling customer complaints D) Expediting returns E) Targeting future promotions

Which of the following is true of the Internet channel compared to the store and catalog channels? A) It helps retailers offer a greater variety of products. B) It makes it more difficult to personalize products and services. C) It makes it more difficult to collect information about consumer behavior. D) It makes it more difficult to enter new markets.

A) It helps retailers offer a greater variety of products.

Which of the following refers to the controllable characteristics of a store related to presentation? A) Co-op advertising B) M-commerce C) Atmospherics D) Promotion

C) Atmospherics

Which of the following are advantages that online shopping has over traditional store channels? A) helpful employees B) More trustworthy C) Broader selection Faster delivery

C) Broader selection

Walmart and Target, which offer a broad variety of merchandise, limited service, and low prices, are examples of which of the following type of retailers? A) Department stores B) Warehouse Clubs C) Full-line discount stores D) Specialty stores E) Drugstores

C) Full-line discount stores

Which of the following are part of the atmosphere of a store? (Choose every correct answer.) A) Buyers B) Prices C) Lighting D) Music

C) Lighting D) Music

To stay competitive with other types of food retailers, conventional supermarkets have employed a number of different strategies. Which of the following is NOT a common strategy that many conventional supermarkets have adopted? A) Offering banks B) Offering cafés C) Offering an athletic shoe department D) Offering health care clinics

C) Offering an athletic shoe department

Which of the following stores concentrates on a limited number of complementary merchandise categories and provides a high level of service in a relatively low number of stores? A) Drugstore B) Full-line discount store C) Specialty store D) Convenience store

C) Specialty store

Which type of store tailors its retail strategy toward very specific market segments by offering deep but narrow assortments and sales associate expertise? A) Convenience stores B) Drugstores C) Specialty stores D) Full-line discount stores

C) Specialty stores

Which of the following statements about service retailers are true? (Choose every correct answer.) A) They form a shrinking part of the retail industry. B) They are largely self-serve, offering limited service. C) They include health clubs and dry cleaners. D) They are a large part of the retail industry. E) They primarily sell services rather than merchandise.

C) They include health clubs and dry cleaners. D) They are a large part of the retail industry. E) They primarily sell services rather than merchandise.

Which of the following is not a type of retailer that falls under the general merchandise retailing category? A) Department stores B) Off-price retailers C) Wholesalers D) Specialty stores

C) Wholesalers

Manufacturers will work with specific retailers depending on where their target consumers expect to find their products. What does this process refer to?

Customer expectations

The competition in food retailing could best be characterized as which of the following? A) Unimportant B) Not at all competitive C) Average D) Highly competitive

D) Highly competitive

Which of the following is NOT one of the six Ps? A) Promotion B) Product C) Place D) Partnerships E) Price

D) Partnerships

A manufacturer of clothing apparel currently sells its products at Neiman Marcus and Dillard's. A new survey shows that a majority of its customers now expect to find its products at Neiman Marcus, Macy's, and Saks Fifth Avenue, but relatively few customers expect to find the products at Dillard's or Marshalls. If the manufacturer acts on its customers' expectations, what action would it take in regard to its retail partnerships?

Drop Dillard's and add Macy's and Saks Fifth Avenue

Brookstone is a retailer known for opening stores in airports, where they have a captive market. This is an example of employing which of the following six Ps to one's competitive advantage? A) Promotion B) Presentation C) Price D) Product E) Place

E) Place

Service retailers, which sell services rather than merchandise, are a small and shrinking retail sector.

False

True or false: Omnichannel retailers price items the same regardless of channel.

False

True or false: The important characteristics of retailers are the same in every industry.

False

C) Lighting D) Music

Imagine that Apple conducts a seminar with Best Buy employees on new features in Apple's latest iPhone. This would be an example of the ______ educating the ______ on how to use and consequently sell its new product.

One advantage of using the ______ channel over the ______ channel is the much higher probability

Internet; retail

Aldi is a type of supermarket that chooses to offer only one or two brands and sizes (one of which is always a store brand) in order to maximize efficiency and reduce costs. What type of supermarket is this called?

Limited-assortment

______ is a major benefit to using the Internet channel and refers to the ability to tailor the information for each customer economically.

Personalization

______ refers to a set of a business activities that add value to products and services sold to consumers for their personal or family use.

Retailing

Which of the following is NOT an actual distribution intensity level considered by manufacturers? A) Intensive B) Exclusive C) Retentive D) Selective

Retentive

Which type of store tailors its retail strategy toward very specific market segments by offering deep but narrow assortments and sales associate expertise? Multiple choice question. Specialty stores

Specialty stores

Distribution intensity is typically divided into how many levels?

Three

True or false: The general price range of the products offered by a retailer helps define its image.

True

MAC, a brand of makeup produced by Estée Lauder, sells through the company's retail outlets. Therefore, whenever a new MAC product is made, it is automatically brought into Estée Lauder retailing outlets. Which type of channel structure does this setup represent?

Vertical marketing system

MAC, a brand of makeup produced by Estée Lauder, sells through the company's retail outlets. Therefore, whenever a new MAC product is made, it is automatically brought into Estée Lauder retailing outlets. Which type of channel structure does this setup represent?

Vertical production setup

Whereas a ______ supermarket is likely to carry around 30,000 SKUs at any given time, a(n) ______ food retailer will only stock around 1,500 SKUs in order to reduce costs and maximize efficiency.

conventional; extreme-value

Macy's, JCPenney, and Kohl's are all examples of general merchandise retailers known as stores _____ that carry a broad variety and deep assortment of products and customer services.

department

Retailers like Dollar General fall into the category of ______ stores. By contrast, retailers like Macy's are considered ______ stores.

extreme-value; department

Manufacturers need to understand the ______ of different types of retailers to determine the best channels for their products

general characteristics

Customers do not expect ______ products in full-line discount stores.

high-end

Generally, the ______ and more sophisticated a firm is, the ______ likely it will be to use supply chain intermediaries.

larger; less

When customer service or product offerings are individually tailored to the consumer shopping on an Internet channel, they are said to be ______.

personalized

One strategy that Starbucks uses is opening stores in areas where competing coffee shops would have little chance of staying competitive with Starbucks. What Starbucks is essentially doing is saturating the market, a strategy that falls under ______ within the six Ps framework.

place

In omnichannel marketing, customers expect ______ consistency for the same SKU across channels.

pricing

Adding value to products and services sold to consumers in households for their personal or family use is known as ______

retail

The role of the retailer is to help ______.

the consumer and manufacturer

What retailer offers a narrow but deep assortment of merchandise? A) Category specialists B) Drugstore chains C) Full-line discount stores D) Extreme-value retailers

A) Category specialists

If a manufacturer instructs a retailer on how to use a newly released product, this would be an example of the manufacturer getting involved with which of the following six Ps? A) Personnel B) Price C) Place D) Presentation

A) Personnel

What are three of the six Ps that marketers often rely on to facilitate retailing strategy? A) Price B) Private C) Promotion D) Personnel

A) Price C) Promotion D) Personnel

To determine how much integration is best, each retailer must address issues such as which of the following? (Choose every correct answer.) A) Pricing B) Integrated CRM C) Sales tax D) Supply chain E) Brand image

A) Pricing B) Integrated CRM D) Supply chain E) Brand image

Conventional supermarkets tend to have higher profit margins on some items and smaller margins on others. Which of the following product types do conventional supermarkets typically have the smallest margin on? A) Meats B) Beauty aids C) Produce D) Dairy products

B) Beauty aids

Which of the following best describes a self-service food store that offers a wide range of groceries, meat, and produce with only a limited assortment of nonfood items such as health and beauty aids? A) Flea market B) Conventional supermarket C) Extreme-value food retailer D) Limited-assortment supermarket

B) Conventional supermarket

Guitar Center reinforces its image of selling high-quality musical equipment in its stores and catalogs and on its website. This is an example of providing a consistent ______ across all channels.

brand image

It is very important for the retailer to provide a consistent ______ across all channels.

brand image

Because each of the channels is somewhat ______, a critical decision facing multichannel retailers is the degree to which they should or are able to integrate the operations of the channels.

different

Effective omnichannel operations need a(n) ______, which consists of a centralized customer data warehouse that houses a complete history of each customer's interaction with the retailer.

integrated CRM system

Getting customers into the stores by using newspapers, magazines, television, and social media refers to advertising in the ______, whereas displays and signs placed at the point of purchase or in aisles is advertising in the ______.

media; store

One of retailers' most fundamental activities in fulfilling the needs of the target market is to provide the ideal blend of ______ and ______.

merchandise; service

When a retailer advertises using newspapers, magazines, television, and social media, the retailer is using ______ , one of the six Ps.

promotion

A manufacturer will seek out partnerships with ______ who will sell the manufacturer's products and/or services to the final consumers.

retailers

Which of the following businesses would have the easiest time introducing a new product line in stores? A) MAC Cosmetics, which operates its own retailers B) Fruit of the Loom, which sells its products in Walmart and Macys' C) Milwaukee Tool, which sells its products at Home Depot D) Cal-Organic Farms, which partners with several grocery store chains

A) MAC Cosmetics, which operates its own retailers

Which of the following is true of the supply chain of an omnichannel retailer? A) It eliminates the need to provide an integrated shopping experience. B) It often includes multiple distribution centers. C) It usually involves decentralized inventory. D) It usually involves a single distribution center.

B) It often includes multiple distribution centers.

______ is important for the manufacturer and retailer to consider when determining how to position a brand and the products that fall under the brand.

Price

Unlike Estée Lauder, which is a large and established firm with the resources to provide itself with its own sales force to sell its products, smaller firms will probably need to rely on which of the following to help to distribute its products?

Supply chain intermediaries

Category specialists, or category killers, are ______ stores that offer a narrow but deep assortment of merchandise, where assistance is typically found only in certain areas of the store.

big-box

Imagine that Apple conducts a seminar with Best Buy employees on new features in Apple's latest iPhone. This would be an example of the ______ educating the ______ on how to use and consequently sell its new product.

manufacturer; retailer

Omnichannel retailers ______ provide an integrated shopping experience across all their channels.

struggle to