BA 370 Chapter 17
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?
Beauty aids
______ are specialty stores that concentrate on pharmaceuticals and health and personal grooming merchandise.
Drugstores
Which of the following statements about service retailers are true? (Select all that apply.)
Examples include health clubs and dry cleaners. They primarily sell services rather than merchandise. They are a large part of the retail industry.
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
Which of the following is a type of food retailer?
Supercenter
Which of the following refers to a large store that combines a supermarket with a full-line discount store?
Supercenter
In an omnichannel system in particular, it is most important for the retailer to provide a consistent ______ across all channels.
brand image
Which of the following are advantages that online shopping has over traditional store channels? (Select all that apply.)
broader selection more information
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
Customers do not expect ______ products in full-line discount stores.
higher end
One of the retailer's most fundamental activities in fulfilling the needs of the target market is to provide the ideal blend of ______ and ______.
merchandise; service
6 P's
product, place, promotion, price, presentation, personnel
Personalized ______ refers to ways in which the firm literally helps the consumer during the online shopping experience, personalized ______ refers to how the firm tailors the website for the consumer based on past shopping patterns.
service; offerings
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
The role of the retailer is to help ______.
the consumer and manufacturer
A ______ is a very large retailer that offers a limited and irregular assortment of food and general merchandise in bulk with little service at low prices for ultimate consumers and small businesses.
warehouse club
If a consumer wants to purchase food in bulk, the ideal type of retailer would be a ______ club. By contrast, when a consumer wants to buy just a small snack on the go, the ideal type of retailer would be a ______ retailer.
warehouse; convenience
A business that buys products from manufacturers and resells them to retailers or industrial or business users is known as a(n)
wholesaler
What retailer offers a narrow but deep assortment of merchandise?
Category specialists
Which of the following refers to a small retailer with a limited variety and assortment of merchandise, including food, at easily accessible locations and offering a speedy checkout?
Convenience stores
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?
Conventional supermarket
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
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 departments for displaying certain product types?
Department stores
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.
True or false: The categories and characteristics of retailers are the same in every industry.
False
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?
Full-line discount stores
Full-line discount, specialty, department, and off-price are all types of retailers that fall under which broad retailing category?
General merchandise
The competition in food retailing could best be characterized as which of the following?
Highly Competitive
One advantage of using the ______ channel over the ______ channel is the much higher probability of having a deeper assortment of merchandise available.
Internet; retail
Which of the following is true of the Internet channel compared to the store and catalog channels?
It helps retailers offer a greater variety of products.
Which of the following is true of the supply chain of an omnichannel retailer?
It often includes multiple distribution centers.
To determine how much integration is best, each retailer must address issues such as which of the following? (Select all that apply.)
Pricing Supply chain Integrated CRM Brand image
Drugstores, like all retailers, experience a great deal of competition from other types of stores. As a result, drugstores have taken a number of steps to remain competitive. Which of the following are actions taken by drugstores to remain competitive? (Select all that apply.)
Providing in-store medical clinics Offering a wider assortment of merchandise Offering drive-through windows
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
Which of the following does an integrated CRM facilitate? (Select all that apply.)
Targeting future promotions Expediting returns Handling customer complaints
Which of these statements best describes the relationship wholesalers have with manufacturers and retailers?
They buy from manufacturers then resell to retailers or business users.
Why are category specialists sometimes called category killers?
They dominate a category with low prices, essentially destroying other retailers' opportunities.
Which of the following is true of online grocers and the items they sell?
They tend to sell more lower-profit-margin items.
Which of the following is NOT a type of retailer that falls under the general merchandise retailing category?
Wholesaler
Which of the following are ways in which retailers help satisfy customers' needs regarding product? (Select all that apply.) They provide ________.
an assortment of products geared toward their target market. a mix of services relating to the products they sell. products in the quantities their customers wish to buy.
To stay competitive with other types of food retailers, conventional supermarkets have employed a number of different strategies including
banks cafes health clinics
Category specialists, or category killers, are ______ stores that offer a narrow but deep assortment of merchandise, where assistance is typically only found in certain areas of the store.
big-box
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
A product is made by a manufacturer and is then delivered to a given retailer. The route or pathway that the product takes to get from the manufacturer to the retailer is known as ______.
channel structure
Whereas a(n) ______ 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
True or false: Omnichannel retailers price items the same regardless of channel.
false
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
Category specialists are also called category ______ because of their ability to offer a complete assortment in a category at somewhat lower prices than competing store types, such as a full-line discount store.
killers
Generally, the ______ and more sophisticated a firm is, the ______ likely it will be to use supply chain intermediaries.
larger; less
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
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?
personnel
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
______ 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
In omnichannel marketing, customers expect ______ consistency for the same SKU across channels.
pricing
The business activities associated with retailing involve both products and services. Which of the following is a venue where retailing occurs?
retail store website catalog
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 refers to business activities that include the purchase of products at stores, through catalogs, and over the Internet, as well as services, such as fast-food restaurants, airlines, and hotels?
retailing
______ 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?
selective intensive exclusive
Omnichannel retailers ______ provide an integrated shopping experience across all their channels.
struggle to
Stores such as Walmart, Fred Meyer, and SuperTarget are a combination of supermarkets and full-line discount stores. These are known as ______.
supercenters