MAR3023 SmartBooks Chapter 12
In 2015, retailers employed approximately how many American workers?
15 million
______ is probably the most famous online retailer.
Amazon
Breadth and depth of _______ is a way to classify retail outlets.
merchandise
Costco is the number one _____ club.
warehouse
The vast majority of retailers are _______.
"mom and pop" shops that employ a small number of people
Which of the following is an example of a specialty store?
Advance Auto
_______ of assortment means the store carries a large number of individual items within any single product line.
Depth
The distribution of retailers along a price continuum follows a(n) _____ ______
bell curve
As a merchandising technique, category management focuses on the performance of _______.
a product category
_______ selling involves sales of goods and services to consumers through personal interactions and demonstrations in their home or office.
Direct
Amazon.com is an Internet retailer used by many consumers. Which of the following represents Mr. Bezos's two guiding principles of the firm? (Check all that apply.)
-Putting the customer first -Thinking for the long-term
A downtown area that consists of boutique shops, restaurants, and independent clothing stores would be considered to be a(n) ______ business district.
unplanned
A corporate chain is defined as _______.
two or more retail outlets that are commonly owned and controlled
Sam's Club and Costco are both referred to as ________ clubs.
warehouse
Match the description to the correct type of retail location: -Isolated store -Unplanned business district -Planned shopping center
*Isolated store : A freestanding retail outlet located on either a highway or a major road *Unplanned business district : Retail location where two or more stores are situated together or in close proximity -Planned shopping center : A group of architecturally unique business establishments on a site that is centrally owned or managed
Match the description to the correct category management technique: -Micro-merchandising -Cross-merchandising
*Micro-merchandising : A retailer carries complementary goods and services to encourage shoppers to buy more *Cross-merchandising : A retailer adjusts its shelf-space allocations in response to overall consumer demand as well as differences in local markets
Match the following levels of service for retailers with the correct example. Self-service - Limited-service - Full-service
*Self-service - Asking hotel guests to check themselves in and print their own keys at a kiosk in the lobby. *Limited-service - Providing salespeople in ONLY the electronics and jewelry departments of a discount store. *Full-service Offering shopping assistants and a concierge in a department store.
Match the description to the correct form of direct selling: -Single-level marketing -Multi-level marketing
*Single-level marketing : A direct seller makes money by buying products from a parent organization and selling them directly to customers *Multi-level marketing : A direct seller makes money from direct sales to customers and by sponsoring new direct sellers
Which of the following are advantages of online retailers?
-Ability to comparison shop -24-hour access
Costco is the number one warehouse club. What two things does Costco attribute its success to?
-An understanding of retail consumer psychology -A culture that emphasizes simplicity, sustainability, and frugality
Match the description to the correct form of franchising. -Business format franchise -Product distribution franchise
-Business format franchise: The franchisor provides the franchisee an entire system for operating the business -Product distribution franchise: The franchisee gets exclusive access to the products manufactured or supplied by the franchisor, but not the franchisor's system of doing business
Which of the following are characteristics of a retailer cooperative?
-Central wholesale operations -Jointly owned -Joint merchandising and promotion
Online retailing has grown in importance for which of the following reasons? (Check all that apply.)
-E-commerce apps -Improved website performance -Growth of mobile commuting
What are the strategic issues in 21st-century retailing as identified in your text?
-Enhanced customer shopping experiences -Operational efficiency -Store image and positioning -Shopper insights from Big Data
Which of the following is impacting the modern retail environment? (Check all that apply.)
-Flattening sales growth in established markets -Industry consolidation -Increasingly global and dynamic
In which of the following ways are discount stores classified? (Check all that apply.)
-Full-line -Specialty
Which of the following are common ways that retail outlets can be classified? (Check all that apply.)
-Level of service -Merchandise assortment -Form of ownership -Merchandise pricing
What are the limitations of online retailing? (Check all that apply.)
-Online shopping does not provide the sensory element of shopping in a store. -Online shopping does not provide the entertainment experience that shopping in a store offers. -Many goods require the physical presence of a consumer.
What is a retailer trying to achieve when planning its store layout with regard to traffic flow? (Check all that apply.)
-Optimization of shopper convenience -Creation of an enjoyable environment -Encouragement of browsing behavior
Mainstream supermarkets are experiencing increasing competitive pressure from other types of food retailers. Which of the following are ways in which mainstream supermarkets have responded to this pressure? (Check all that apply.)
-Providing organic food choices -Adding in-store offerings like juice bars
Which of the following factors contribute to shaping a retailer's image? (Check all that apply.)
-Quality of a store's customer service -The retailer's store or website -Brand communications -Merchandise attributes
Which of the following are characteristics of discount stores. (Check all that apply.)
-They offer brand-name products at low prices. -They accept lower margins on merchandise in order to gain more customers.
Specialty discount stores compete on the basis of _______. (Check all that apply.)
-low prices -wide selection -product availability
Grocery stores are responding to market changes by _______. (Check all that apply.)
-providing a range of hot and cold ready to eat meals -offering Starbucks kiosks -offering special delivery or pickup services
Pete owns a popcorn store called "Kernal Petes." He is about to open a new store location that will be located inside a local grocery store. Pete will pay rent for the space and will be responsible for all aspects of his business. What is this type of arrangement called?
A leased department
What is a buyer?
A retail professional who purchases wholesale merchandise for a retailer to sell
Supermarkets tend to have a larger amount of some items and a smaller amount of others. Which of the following product types is most likely to have the smallest amount in stock in a supermarket?
Beauty aids
_______ of assortment refers to the variety of different product lines that a store carries.
Breadth
Which of the following is an advantage of television home shopping?
Broad reach possible; available in millions of homes
When the economy takes a downward shift, such as during a recession, what factor drives retailers to reduce costs by improving operational efficiency?
Consumers' preference for greater value
Which of the following refers to a small, self-service store that offers a limited number of items that customers frequently purchase, and is open long hours and located along highly trafficked areas?
Convenience stores
Which of the following types of stores has over half of its sales coming from pharmaceuticals?
Drugstores
_______ are specialty stores that concentrate on pharmaceuticals and health and personal grooming merchandise.
Drugstores
Which of the following is a retail format that carries a wide variety of product lines and organizes its facilities into distinct departments for displaying certain product types?
Department stores
Breadth of product line means that a store carries _______.
a variety of different items in different product categories
Which of the following store types would best characterize retailers like the Family Dollar Stores and Dollar General?
Extreme-value retailers
True or false: All retailers suffer when there is a downturn in the economy.
False
True or false: Category management focuses on the performance of individual product brands.
False
Walmart and Target are examples of which of the following retailers that offer a broad variety of merchandise, limited service, and competitive prices?
Full-line discount stores
When a consumer in a jewelry store gets help from the retailer trying on and choosing between different types of necklaces, this exemplifies which type of service?
Full-service
How is the distribution of retailers along a price continuum shown?
It follows a bell curve.
Which of the following is a unique feature of a planned shopping center?
It has dedicated parking.
The average amount of a single sales transaction affects retailers in which of the following ways?
It means retailers must optimize the number of customers that come into their stores. -It forces retailers to be conscious of controlling costs. -It places a greater emphasis on advertising and sales promotion.
Rashimi notices that customers at her store prefer certain brands of coffee over others. So, to make sure her customers have better access to the brands they prefer, she allocates more shelf space to those brands of coffee, and less shelf space to the brands that are purchased less frequently. In this scenario, Rashimi is utilizing which of the following techniques?
Micro-merchandising
Which statement regarding the impact of physical stores on the retail environment is true?
Most retail transactions occur in physical stores.
_____ retailing involves customers shopping for products without visiting a retail store and includes online retailing as well as automated vending and direct selling.
Nonstore
T.J. Maxx sells a broad array of merchandise, even designer merchandise, at prices less than retail. What type of retailer is T.J. Maxx?
Off-price retailer
Which of the following is not a way big data analytics can be beneficial to retailers?
Reducing manufacturing costs
_______ includes all of the business activities involved in the sale of goods and services to the ultimate consumer for their personal, family, or household use.
Retailing
Which of the following can be said about retailing as an economic activity?
Retailing accounts for more than half of the United States' gross domestic product.
Sarah went to the mall to buy a prom dress. While shopping, she saw a kiosk that was selling rhinestone-studded shoes. Although she had no intention of buying new shoes, she couldn't help thinking how cool they would look with her new dress, so she ended-up buying a pair. Which of the following describes Sarah's behavior?
Sarah's shoes were an impulse purchase.
What is scrambled merchandising?
Selling goods and services that may be unrelated to each other and to the firm's original business
_______ retailers primarily offer customers mechanical or human efforts, rather than merchandise.
Services
Sephora is a leading perfume and cosmetic store chain that only sells merchandise in this narrow area, but has a deep assortment of various cosmetics. This is characteristic of what type of retailer?
Specialty store
"Fast fashion" is a term unique to which type of retailer?
Specialty stores
Which of the following concentrates on a narrow but deep assortment of merchandise categories, provides a high level of service, and tailors its strategy to a specific market segment?
Specialty stores
Which type of store tailors its retail strategy toward very specific market segments by offering deep but narrow assortments and sales associate expertise?
Specialty stores
Which of the following is a merchandise outlet that offers a wide range of groceries, meat, and produce with only a limited assortment of nonfood items such as health and beauty aids?
Supermarket
How are stores like JCPenny or Best Buy classified?
They are limited-service stores.
True or false: Catalog marketing has seen a resurgence due, in part, to the fact that they are easier to track than are commercial or social media campaigns.
True
Which of the following types of retail operations is wholesaler-sponsored?
Voluntary chains
Which of the following is considered to be the 3rd largest employer in the world, behind the U.S. Department of Defense and the Chinese army?
Walmart
Pets for Life is a specialty pet store that caters to providing service dogs for disabled persons. The store has a staff of trained employees that aid in the selection of the right animal for each customer. In addition, the store offers in-home training and assistance in helping the customer and his or her animal adapt to real-life situations. Pets for Life is an example of _______.
a full-service store
Depth of product line means that a store carries _______.
a large assortment within any single product line
Sensory-based stimuli within a retailer's environment—the sights, sounds, smells, and other attributes—that project an image and draw customers to the store are referred to as _______.
atmospherics
Airport kiosks that allow passengers to purchase tickets as well as automated teller machines (ATMs) are types of _______.
automated vending
The most impersonal form of retailing is _____ ______
automated vending
Big Data _____ has excellent potential to help retailers understand shopper behavior, forecast demand for products, and optimize pricing for a competitive edge.
analytics
The type of merchandise a retailer carries is known as its merchandise _______
assortment
Delilah loves shopping at Nordstrom. She loves the elegant way the store displays its merchandise and she loves when the store has someone playing the piano. These attributes can be describes as Nordstrom's _______.
atmospherics
A company gathers photos and descriptions of all the products it sells, and places them together in one printed piece or on an online store. This is the essence of _______.
catalog marketing
Specialty discount stores, such as Home Depot or Staples, are sometimes referred to as _____ _____.
category killers
7-Eleven is an example of a retail _______ store that sells a limited variety of frequently purchased merchandise in easy, in-and-out type locations.
convenience
Two or more retail outlets that are commonly owned and controlled are referred to as _______.
corporate chains
Macy's, Sears, JCPenney, and Kohl's are all examples of general merchandise retailers known as ______ stores that carry a wide variety of product lines with each line operated as a separate department.
department
A shoe store that offers running shoes, dress shoes, and children's shoes is said to have _______ of product line.
depth
Retailers can be categorized in terms of the _______ and _______ of their merchandise assortment.
depth; breadth
Slotting allowances are used to _______.
ensure products are preferentially displayed by the retailer
The rapid translation of high-fashion design trends by lower-cost manufacturer-retailers is called _______ _______.
fast fashion
Level of service is one method of classifying retail outlets; the highest level is known as ________ service, and the lowest level is called _______ service.
full ; self
General merchandise outlets that carry a wide assortment of merchandise across popular categories are referred to as _______.
full-line discount stores
The majority of retail operations are _______.
independent retailers
Industry consolidation and flattening sales have led retailers to seek out ______ markets.
global
The traffic flow pattern in which display and aisles are laid out in a rectangular grid is called a(n) ______ traffic flow pattern.
gridiron
A store's _____ refers to consumers' favorable or unfavorable perception of the store.
image
A store's ______ refers to consumers' favorable or unfavorable perception of the store.
image
Purchases made on a whim, such as buying a pack of gum while standing in the check-out lane are considered to be ______ purchases.
impulse
Direct selling typically occurs _______.
in a consumer's home or office
A retailer wanting to incorporate self-service into its stores may choose to _______.
incorporate an in-store kiosk
Scrambled merchandising has led to _______ ompetition across different types of retailers. (Increased/Decreased)
increased
Onmichannel marketing involves _______.
integrating customer experiences across a physical and online presence
According to your text, consumer interest in lower prices and _______ are the two things driving strategic issues in 21-century retailing.
intensified competition
A retailer that wishes to identify points in their customers' journey where the end-to-end experience breaks down would use a technique known as ______ ______.
journey mapping
A retail store rents a section of space to an outside party. The rented section is called a(n) ______ ______.
leased department
The average amount of a single sales transaction in a retail environment is typically much _____ than it is in other types of business. (More/Less)
less
A type of planned shopping center, a(n) _______ shopping center is typically found in affluent areas and offers upscale retail operations and fine dining options.
lifestyle
The majority of retailers are ______ service retailers.
limited
The activities involved in acquiring particular goods and services and making them available at the places, times, prices, and quantities that enable a retailer to achieve its goals is referred to as _______.
merchandising
Multi-level or person-to-person marketing is also referred to as _____ marketing.
network
Online retailing, automated vending and direct selling are all forms of _______ retailing.
nonstore
Integrating customer experiences between physical and online channels describe ______ retailing.
omnichannel
E-retailing is another term for _____ retailing.
online
A(n) _______ _______ franchise is less common, but accounts for a larger percentage of franchise-based sales. (Business format/Product distribution)
product distribution
A minimal shopping experience, the missing sensory elements of shopping and the lack of fitting options are all disadvantages of _______.
online shopping
A type of purchasing behavior in which off-price retail stores negotiate especially low prices for certain categories of merchandise, such as end-of-season goods and closeouts is called _______.
opportunistic buying
Off-price retailers, like Ross and T.J. Maxx, employ the technique known as _____ _____ by negotiating especially low prices for certain categories of merchandise.
opportunistic buying
Most retail operations are _______.
owned and operated by a single person or group
Journey mapping is a technique that helps companies identify _______.
points in their customers' journey where the buying process breaks down
An off- ________ retailer is one that offers a broad array of merchandise that it sells at major discounts from department store prices.
price
There's No Place Like Home is a store that sells decorative items and furniture for people to put in their homes. This store can be classified as a _______.
retailer
A group of independent retailers that band together to set up a jointly owned, central wholesale operation that also conducts joint merchandising and promotion is referred to as a _______.
retailer cooperative
Form of ownership, level of service, and merchandise assortment and pricing are ways that _______ can be classified.
retailers
Direct selling is sometimes called direct ______.
retailing
The home shopping network, QVC, has centered its retail strategy on the ______ ______ , which is the tendency to watch TV while also swiping and tapping on a smartphone or tablet.
second screen
In order to save time or money, ______ service stores require customers to perform certain tasks on their own.
self
Movie theaters and hair salons are both types of _____ retailers.
service
The direct selling business model in which a direct seller makes money by buying products from a parent organization and selling them directly to customers is called _______.
single-level marketing
How products are arranged on store shelves is so critical that manufacturers will often pay ______ ______ to make sure a retailer will display the manufacturer's product in an optimal location.
slotting allowances
Because consumers like to have the ability to use their senses when shopping for a product, most retail transactions occur in physical _______.
stores
A full-line discount store that also offers grocery items, a pharmacy, and photo processing is called a _______.
supercenter
When stores like Walmart and Target expand their offerings to include grocery items, pharmacies, and services like vision care or beauty services, they are called _______
supercenters
A retailer should align its merchandising approach with the needs of its _______.
target market
An extreme- _____ retailer refers to a store that carries an assortment of inexpensive and popularly priced merchandise, much like the old "five-and-dime" stores of the past.
value
A retail professional who is responsible for layout plans and displays aimed at improving store sales is known as a(n) _________ _______.
visual merchandiser
Groups of independent retailers, sponsored by wholesalers, who band together for increased buying power are referred to as a(n) _______.
voluntary chain
A merchandise outlet that offers ultra-low prices, but requires customers to pay an annual fee for the privilege of shopping in the store, is referred to as a(n) _______.
warehouse club
