Chapter 11: Retailing and Wholesaling

Brokers and agents usually take title to goods and perform various functions for retailers.

False

Convenience stores are the most frequently visited type of retail store.

False

Factory outlet malls combine manufacturers' outlets with off-price retail stores and department store clearance outlets.

False

Independent off-price retailers purchase merchandise at rates that are substantially higher than regular wholesale rates.

False

Omni-channel retailing creates a seamless cross-channel buying experience that includes in- store and online shopping but excludes mobile.

False

Pricing decisions of specialty stores are typically based on low markups on a high volume of products.

False

The Great Recession put heavy pressure on wholesalers to increase their operation costs and limit warehouse automation systems.

False

The suppliers who are not adding value based on cost and quality are more in demand than their competitors.

False

The three types of off-price retailers are: independents, factory outlets, and corporate chains.

False

Venns is a chain of department stores that has become more focused in recent years and now stocks only exclusive labels of designer home accessories. Venns has transformed itself into a chain of pop-up stores.

False

Voluntary chains are normally based on one unique product or a specific trade name.

False

Wholesalers fall into three major groups: merchant wholesalers, brokers and agents, and megawholesalers.

False

Although manufacturers, wholesalers, and retailers do retailing, it is the primary business of retailers.

True

Casey's is a large supermarket that practices everyday low pricing. Therefore, consumers should expect few discounts or sales if shopping at Casey's regularly.

True

Category killers are superstores that carry a deep assortment of a particular product line.

True

In a retailer cooperative, independent retailers band together to set up a jointly owned, central wholesale operation and conduct joint merchandising and promotion efforts.

True

In an automated warehouse, orders are fed directly from the retailer's information system into the wholesaler's, and the items are picked up by mechanical devices and taken to a shipping platform where they are assembled.

True

Manufacturers' agents are the most common type of agent wholesaler.

True

Merchant wholesalers are the largest single group of wholesalers, accounting for roughly 50 percent of all wholesaling.

True

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

True

Shopper marketing involves focusing the entire marketing process — from product and brand development to logistics, promotion, and merchandising — toward turning shoppers into buyers at the point of sale.

True

The retailer's product assortment should be distinguishable and also match target shoppers' expectations.

True

The rise of megaretailers has shifted the balance of power between retailers and producers. Since megaretailers have access to numerous consumers, they have significant power when dealing with manufacturers.

True

Too many retailers, even big ones, fail to clearly define their target markets and positions

True

Wholesalers absorb risk by taking title and bearing the cost of theft, damage, spoilage, and obsolescence.

True