Chapter 11: Retailing and Wholesaling
Service Retailers
a retailer whose product line is actually a service
Department Stores
carry a wide variety of product lines
Purchasing Agents
generally have a long term relationship with buyers and make purchases for them
Wholesale Merchants
sell primarily to retailers and provide a full range of services
Corporate Chain
two or more outlets that are commonly owned and controlled
Shopping Center
a group of retail businesses built on a site that is planned, developed, owned, and managed as a unit
Factory Outlets
manufacturer owned and operated stores
Agents
represent either buyers or sellers on a more permanent basis
Cash and Carry Wholesalers
carry a limited line of fast moving goods and sell to small retailers for cash
Franchise Organization
contractual association to buy the rights to own and operate one or more units in the system
Which of the following statements about the omni-channel buyer is NOT correct? A. They readily research products and prices online, shopping digitally from home, from work, in stores, or anywhere in between. B. Omni-channel buying calls for omni-channel retailing C. Omni-channel buyers do not need the bricks-and-mortar environment in which to shop. D. They shift easily across online and in-store channels throughout the buying process. E. They will cause a massive shift in how store retailers operate.
C. Omni-channel buyers do not need the bricks-and-mortar environment in which to shop.
Category Killers
a giant specialty store that carries very deep assortment of a particular line
Of product and services assortment, price, promotion, and place, which plays one of the most important roles in aligning target markets and positioning? A. Promotion B. Services assortment C. Price D. Product assortment E. Place
E. Place
Limited Service Wholesalers
offer fewer services and comprised of cash and carry, truck wholesalers, drop shippers, rack robbers, producers cooperative, and mail order wholesalers
Warehouse Clubs
operate huge, warehouse like facilities selling a limited selection of products at deep discounts to members who pay annual membership fees
Truck Wholesalers (Truck Jobbers)
perform primarily a selling and delivery function, carry a limited line of semi-perishable merchandise sold for cash
Superstores
a store much larger than a regular supermarket that offers a large assortment of routinely purchased food products, nonfood items, and services
Retailing
all the activities involved in selling products or services directly to final consumers for their personal, nunbusiness use
Independent Off Price Retailers
independently owned and run or are divisions of larger retail corporations
Full Service Wholesalers
provide a full line of services: carry stock, maintaining a sales force, offering credit, making deliveries, and providing management assistance
The trend of ________ has resulted in different types of retailers now selling the same products at the same prices to the same consumers. A. pop-up stores B. tighter consumer spending C. green retailing D. retail convergence E. social media retailing
D. retail convergence
Supermarkets
large, low cost, low margin, high volume, self service store that carries a wide variety of grocery and household products
Which of the following sets of characteristics correctly classifies retailers? A. Amount of service offered, breadth and depth of product lines, relative prices they charge, and store size B. Location of the store, relative prices they charge, target customers, and store size C. Breadth and depth of product lines, relative prices they charge, location of the store, and store size D. Amount of service offered, the breadth and depth of product lines, relative prices they charge, and how they are organized E. Amount of service offered, the relative prices they charge, target customers, and store size
D. Amount of service offered, the breadth and depth of product lines, relative prices they charge, and how they are organized
Manufacturers' Agents
represent two or more manufacturers entire output
Off Price Retailers
a retailer that buys at less than regular wholesale prices and sells at less than retail
Brokers
brings buyers and sellers together and assist in negotiation
Retailers
business whose sales come primarily from retailing
Omni Channel Retailing
creating a seamless cross channel buying experience that integrates in store, online, and mobile shopping
Which of the following correctly describes omni-channel retailing? A. Allowing one supplier to sell to multiple retailers through multiple channels B. Developing close partnerships between wholesalers and retailers C. Setting up franchises in different locations with seamless delivery of integrated services D. Creating a seamless cross-channel buying experience that integrates in-store, online, and mobile shopping E. Selling products online environments
D. Creating a seamless cross-channel buying experience that integrates in-store, online, and mobile shopping
The only reason for a wholesaler to exist is to ___________________ by increasing the efficiency and effectiveness of the entire marketing channel. A. facilitate distribution B. lower logistical costs C. eliminate marketing costs D. replace a sales team E. add value
E. add value
Merchant Wholesalers
an independently owned business that takes title to the merchandise it handles
Drop Shippers
do not carry inventory or handle the product, once an order is received they select a manufacturer to ship directly to the customer
Producers Cooperative
farmer owned members that assemble farm produce for sale in local markets
Wholesalers
firms engaged primarily in wholesaling activities
Shopper Marketing
focusing the entire marketing process toward turning shoppers into buyers as they move along toward the point of sale
Retailer Cooperative
group of independent retailers who jointly establish a central buying organization and conduct joint promotion effects
Wholesaling
includes all the activities involved in selling goods and services to those buying them for resale or business use
Industrial Distributors
sell to manufacturers rather than to retailers
Mail Order (Web) Wholesalers
sends catalogs to or maintain websites for retail, industrial, and institutional customers
Rack Jobbers
serve grocery and drug retailers in mostly nonfood items
Convenience Stores
small stores that carry a limited line of high turnover convenience goods
Commission Agents
take physical possession of products and negotiate sales
Voluntary Chain
wholesaler sponsored group of independent retailers engaged in group buying and merchandising
Specialty Stores
carry narrow product lines with deep assortments with those lines
Which of the following statements about major retail trends is NOT true? A. The green movement has not quite taken hold. B. Major retailers are expanding globally. C. Retailers have now adjusted to the new economic realities. D. There is a continued rise of megaretailers. E. Differentiation is now more difficult.
A. The green movement has not quite taken hold.
Omni-channel retailing goes beyond just helping in-store customers as they cross-shop on mobile devices and requires _________________________. A. carefully integrating the entire range of available shopping channels B. careful targeting, differentiation, and positioning C. integration of product assortment, services mix, and price D. extra attention to product assortment, store atmosphere, and price E. carefully integrating all elements of the marketing mix to maximize value
A. carefully integrating the entire range of available shopping channels
Attracting and holding customers presents great challenges and decision points for retailers. Of the following, which is NOT one of the areas in which they face major decisions? A. Decisions about targeting B. Social media and visibility decisions C. Decisions regarding segmentation D. Store differentiation and positioning decisions E. Retail marketing mix decisions
B. Social media and visibility decisions
The three major groups of wholesalers are ________. A. merchant wholesalers, full-service wholesalers, and limited-service wholesalers B. merchant wholesalers, brokers and agents, and manufacturers' and retailers' branches and offices C. merchant wholesalers, wholesale clubs, and big-box stores D. merchant wholesalers, brokers and agents, and full-service wholesalers E. merchant wholesalers, brokers and agents, and wholesale clubs
B. merchant wholesalers, brokers and agents, and manufacturers' and retailers' branches and offices