Chapter 2 MCgraw

Which of the following is true regarding online grocery retailers?

Retailers like Instacart and Google are entering the grocery channel by providing delivery services.

___ stores tailor their retail strategy toward very specific market segments by offering a limited number of complementary merchandise categories and providing a high level of service

Specialty

Large, self-service food stores that offer meat and produce, as well as some nonfood items, such as health and beauty products, are called

conventional supermarkets.

Retailers that primarily sell services rather than merchandise are referred to as ___ retailers

service

The dry cleaner that cleans your clothes, the salon that cuts your hair, and the auto shop that changes the oil in your car are all examples of

service

The dry cleaner that cleans your clothes, the salon that cuts your hair, and the auto shop that changes the oil in your car are all examples of ___ retailers

service

Accepting credit cards, providing parking, and being open at convenient hours are all examples of ____ offered by retailers.

services

Select from the following all of the retailers that are general merchandise retailers. A. department store B. CAtegory specialists C. Supercenters D. Drugstores E. Off-price retailers F. Vision centers

A,B,D,E

What term is used to describe stores such as Barnes & Noble bookstore and Staples office supply store because they offer a deep assortment but narrow variety of merchandise?

Category specialist retailers

____are big-box stores that offer a narrow variety but deep assortment of merchandise.

Category specialists

___ stores are approximately 3,000- to 5,000-square feet and enable consumers to make purchases quickly, without having to search through a large store and wait in a long checkout line.

Convenience

True or false: People like online grocery retailers as a way to save time, but they are not willing to pay more for ordering groceries online and having them delivered.

False

___ is a contractual agreement in which a company sells the rights to use its business trademark, service mark, or trade name, or another commercial symbol of the company, to an individual for a one-time establishment fee and an ongoing royalty fee, typically expressed as a percentage of gross monthly sales.

Franchising

What does it mean to say a service is intangible?

It cannot be seen or touched

The world's largest food retailer is

Walmart.

The services offered by different retailers, such as providing parking or gift wrapping,

are expensive for the retailers.

Hispanics, who constitute about 17 percent of the U.S. population,

are more likely to prepare meals from scratch

Independent retail establishments

are not bound by the bureaucracies inherent in large retail organizations.

A customer chooses which type of retail to patronize based on the ______ the consumer is seeking. For example, a consumer who values convenience may shop at a retailer's Internet site, but a consumer who wants to try on merchandise might choose to visit the retailer's store instead.

benefit

The variety of merchandise offered by a retailer is most often referred to as the

breadth of merchandise.

How does a retailer survive and prosper in a competitive marketplace?

by satisfying consumers' needs more effectively than competitors

Stores like 7-Eleven that carry a limited variety and assortment of merchandise and allow customers to make purchases quickly are called

convenience stores

A retail ___ is a company that operates multiple retail units under common ownership and usually has centralized decision making for defining and implementing its strategy.

chain

Which type of retailer carries a broad variety and deep assortment of merchandise, offers customer services, and organizes their stores into distinct sections for displaying merchandise?

department stores

When you enter stores like Macy's or Kohl's you will find a large variety of merchandise that is organized into distinct categories. In addition, these stores offer various customer services. Macy's and Kohl's would be categorized as

department stores.

Discount stores classified as extreme-value retailers are also called _ stores

dollar

Discount stores classified as extreme-value retailers are also called ___ store

dollar

Pharmaceuticals, health care items, and beauty products are the main offerings provided by ___

drugstore

Specialty stores that concentrate on health and beauty care products are called

drugstore

Retailers that offer a broad variety of merchandise, limited service, and low prices are known as

full-line discount stores

retailers that offer a broad variety of merchandise, limited service, and low prices are known as

full-line discount stores.

Department stores, specialty stores, and extreme-value retailers are all types of _____ retailers

general merchandise

In the North American Industry Classification System,____

he first two digits identify the firm's business sector

Because business services are performed by people, no two services will be

identical

Karen notices that sometimes when she goes to her favorite restaurant she gets great service, but other times the service is terrible. This best illustrates the _____ of services

inconsistency

Stocking deep and broad assortment

is appealing to customers.

In merchandising, variety is the number of ___

merchandise categories a retailer offers

Retailers that offer an inconsistent assortment of brand-name merchandise at a significant discount off the manufacturers' suggested retail price are called ___ retailers

off-price

Extreme-value retailers ____

offer a broad variety of household goods

Full-line discount stores

offer both private labels and national brands.

A company that operates multiple retail units under common ownership and usually has centralized decision making is referred to as a

retail chain

You can buy a bike from a specialty store like Performance Bicycles or purchase one at Target or Walmart. However, at Performance Bicycle a customer will get help from salespeople on selecting the right bike, correctly being fitted for a bike, and detailed instructions on bike care and repair. These are the __ that Performance Bicycle offers its customers.

services

You can buy a bike from a specialty store like Performance Bicycles or purchase one at Target or Walmart. However, at Performance Bicycle a customer will get help from salespeople on selecting the right bike, correctly being fitted for a bike, and detailed instructions on bike care and repair. These are the ___ that Performance Bicycle offers its customers.

services

because ___ are produced and consumed at the same time, it is difficult to reduce costs through mass production.

services

A supermarket that offers wine tasting, cooking demonstrations, self-serve kiosks, and in-store restaurants are attempting to differentiate themselves from the competition by improving the ____ for customers

shopping experience

A store that concentrates on a limited number of complementary merchandise categories, targets very specific markets, and provides a high level of service is a __ store

specialty

___ stores tailor their retail strategy toward very specific market segments by offering a limited number of complementary merchandise categories and providing a high level of service.

specialty

___ are large stores that combine a supermarket with a full-line discount store

supercenter

When Walmart, Target, and Meijer combine a supermarket with a full-line discount store, they are referred to as

supercenters

Twenty years ago, a customer needing to buy food, most likely purchased it from a conventional

supermarket

Twenty years ago, a customer needing to buy food, most likely purchased it from a conventional ___

supermarket

A conventional ___ is a large, self-service retail food store offering groceries, meat, and produce, as well as some nonfood items, such as health and beauty aids and general merchandise.

supermarkets

A feature of the merchandise offered from off-price retailers is that

the assortment of merchandise is inconsistent

A feature of the merchandise offered from off-price retailers is that ___

the assortment of merchandise is inconsistent

The North American Industry Classification System is used

to classify retailers based on the types of products and services they sell

True or false: A franchisee operates a retail outlet using a name and format developed and supported by the franchisor.

true

___ clubs are retailers that offer a limited and irregular assortment of food and general merchandise with little service at low prices for ultimate consumers and small businesses.

warehouse

Costco and Sam's Club are examples of

warehouse clubs