marketing ch. 15

Intermediaries that represent either buyers or sellers on a permanent basis

Agents

The physical elements in a store's design that appeal to consumers' emotions and encourage buying

Atmospherics

Intermediaries that bring buyers and sellers together temporarily

Brokers

Limited-service wholesalers whose customers pay cash and furnish transportation

Cash-and-Carry Wholesalers

A type of marketing in which an organization provides a catalog from which customers make selections and place orders by mail, telephone, or the internet

Catalog Marketing

A very large specialty store that concentrates on a major product category and competes on the basis of low prices and product availability

Category Killer

A retail strategy of managing groups of similar, often substitutable products produced by different manufacturers

Category Management

Supermarkets use _______________________ to allocate space for their many product categories, such as cosmetics, cereals, and soups.

Category Management

Agents that receive goods on consignment from local sellers and negotiate sales in large, central markets

Commission Merchants

A type of shopping center with one or two department stores, some specialty stores, and convenience stores

Community Shopping Centers

A small self-service store that is open long hours and carries a narrow assortment of products, usually convenience items

Convenience Store

Large retail organizations characterized by a wide product mix and organized into separate departments to facilitate marketing efforts and internal management

Department Stores

The use of the telephone, internet, and nonpersonal media to introduce products to customers, who can then purchase them via mail, telephone, or the internet

Direct Marketing

Marketing products to ultimate consumers through face-to-face sales presentations at home or in the workplace

Direct Selling

A type of marketing in which a retailer advertises a product and makes it available through mail or telephone orders

Direct-Response Marketing

Self-service, general-merchandise stores that offer brand-name and private-brand products at low prices

Discount Stores

Limited-service wholesalers that take title to goods and negotiate sales but never actually take possession of products

Drop Shippers

Retailers that are a fraction of the size of conventional discount stores and typically offer very low prices on smaller size name-brand nonperishable household items

Extreme Value Stores

Direct selling is a type of specialty retailing. True False

False

Meijer is an example of an extreme-value store. True False

False (Meijer is a discount store. Extreme-value stores are a fraction of the size of conventional discount stores and typically offer very low prices—generally $1 to $10—on smaller size name-brand nonperishable household items. Extreme-value stores include stores like Dollar General and Family Dollar.)

The primary advantage of franchising is the complete control the franchisee has over the business. True False

False (The franchisor can dictate many aspects of the business: décor, menu, design of employees' uniforms, types of signs, hours of operation, and numerous details of business operations. Therefore, the franchisee does not have complete control.)

An arrangement in which a supplier (franchisor) grants a dealer (franchisee) the right to sell products in exchange for some type of consideration

Franchising

Merchant wholesalers that perform the widest range of wholesaling functions

Full-service Wholesalers

A retail establishment that offers a variety of product lines that are stocked in considerable depth

General Merchandise Retailer

Full-service wholesalers with a wide product mix but limited depth within product lines

General Merchandise Wholesalers

Stores that combine supermarket and discount store shopping in one location

Hypermarkets

A type of shopping center that is typically open air and features upscale specialty stores, dining, and entertainment

Lifestyle Shopping Center

Full-service wholesalers that carry only a few product lines but many products within those lines

Limited Line Wholesalers

Merchant wholesalers that provide some services and specialize in a few functions

Limited Service Wholesalers

Limited-service wholesalers that sell products through catalogs

Mail-Order Wholesalers

Independent intermediaries that represent two or more sellers and usually offer customers complete product lines

Manufacturers Agents

Independently owned businesses that take title to goods, assume ownership risks, and buy and resell products to other wholesalers, business customers, or retailers

Merchant Wholesalers

Employing multiple distribution channels that complement brick-and-mortar stores with websites, catalogs, and apps where consumers can research products, read other buyers' reviews, and make actual purchases

Multichannel Retailing

A type of shopping center usually consisting of several small convenience and specialty stores

Neighborhood Shopping Centers

Stores that buy manufacturers' seconds, overruns, returns, and off-season merchandise for resale to consumers at deep discounts

Off-price Retailers

A significant factor in the rise of multichannel retailing is _____________, which makes products available to buyers through internet connections.

Online Retailing

Retailing that makes products available to buyers through computer connections

Online Retailing

A type of shopping center that combines off-price stores with category killers

Power Shopping Center

Full-service, specialty-line wholesalers that own and maintain display racks in stores

Rack Jobbers

A type of shopping center with the largest department stores, widest product mixes, and deepest product lines

Regional Shopping Centers

Identifying an unserved or underserved market segment and serving it through a strategy that distinguishes the retailer from others in the minds of consumers in that segment

Retail Positioning

An organization that purchases products for the purpose of reselling them to ultimate consumers

Retailer

All transactions in which the buyer intends to consume the product through personal, family, or household use

Retailing

Nicole has been wanting to open her own business for many years. After much saving and a loan from the bank, she was able to open up her own store. This store features upscale jewelry, footwear, and clothing for professional women. She uses a premium pricing strategy to demonstrate the quality of her products. As time passed, she adopted other product lines including luggage and beauty products. Nicole has developed strong relationships with suppliers so that new orders come relatively quickly. Nicole distinguishes herself from the competition with the high level of service at her store. Her workers are trained to greet customers within fifteen seconds of them entering the store. She also gives her employees permission to take whatever time needed to make sure that customer needs are met. Based upon the description, Nicole is engaging in ___________

Retailing

Manufacturer-owned intermediaries that sell products and provide support services to the manufacturers' sales forces

Sales Branches

Manufacturer-owned operations that provide services normally associated with agents

Sales Offices

Intermediaries that market a whole product line or a manufacturer's entire output

Selling Agents

Full-service wholesalers that carry only a single product line or a few items within a product line

Specialty line Wholesalers

Large, self-service stores that carry a complete line of food products, along with some non-food items

Supermarkets

A type of shopping center with the widest and deepest product mixes that attracts customers from many miles away and often has special attractions

Superregional Shopping Centers

Giant retail outlets that carry food and non-food products found in supermarkets, as well as most routinely purchased consumer products

Superstores

The performance of marketing-related activities by telephone

Telemarketing

A form of selling in which products are presented to television viewers, who can buy them by calling a toll-free number and paying with a credit card

Television Home Marketing

Stores that carry a narrow product mix with deep product lines

Traditional Specialty Retailers

Limited-service wholesalers that transport products directly to customers for inspection and selection

Truck Wholesalers

Multichannel retailing has made it easier for consumers to research products even before entering a store. True False

True (The most effective multichannel retail strategies integrate the firm's goals, products, systems, and technologies seamlessly across all platforms so that a customer can research a product through the firm's website at home, find specific information about the product and locate the nearest one through an app on their smartphone while in the car, and checkout in a store or online.)

Rapidly evolving consumer trends and changing demographics is blurring the line between the various types of retailers. True False

True (The reality is that evolving consumer demographics and preferences is spurring retailers to adapt in a variety of ways that are blurring the line between the various types of retailers more than ever before.)

The use of wholesalers permits producers to concentrate on developing and manufacturing products that match consumers' wants. True False

True (Using wholesalers gives producers a distinct advantage because the specialized services wholesalers perform allow producers to concentrate on developing and manufacturing products that match customers' needs and wants.)

The use of machines to dispense products

Vending

Large-scale, members-only establishments that combine features of cash-and-carry wholesaling with discount retailing

Warehouse Clubs

Retail facilities in large, low-cost buildings with large on-premises inventories and minimal services

Warehouse Showrooms

An individual or an organization that sells products that are bought for resale, for making other products, or for general business operations

Wholesaler

Transactions in which products are bought for resale, for making other products, or for general business operations

Wholesaling

Which of the following is the definition for retailing? a. All transactions in which the buyer is the ultimate consumer and intends to use the product for personal, family, or household purposes b. All activities involved in producing, distributing, pricing, and staging items in a storeroom setting for ultimate purchase by business and household consumers c. The business of selling to customers, especially in large quantities d. The act of producing and distributing goods and services to channel members in order to earn a profit

a. All transactions in which the buyer is the ultimate consumer and intends to use the product for personal, family, or household purposes

Direct selling is effective in countries like China for which of the following reasons? a. Collective societies, like China, appreciate the one-on-one attention given in a direct selling situation. b. The State Administration for Industry and Commerce (SAIC) in China has banned telemarketing, so direct selling is the best way for retailers to reach Chinese consumers. c. The Chinese place high value on Western products and see direct selling as an easy way to gain access to American products. d. Asian countries prefer this method of shopping as they do not like to waste time at malls or shopping centers.

a. Collective societies, like China, appreciate the one-on-one attention given in a direct selling situation.

What type of self-service store typically is less than 5,000 square feet, open 24 hours a day and 7 days a week, and stocks about 500 items? a. Convenience store b. Discount store c. Supermarket d. Department store

a. Convenience store

Which of the following does not take possession of the merchandise? a. Drop shippers b. Mail-order wholesalers c. Cash-and-carry wholesalers d. Truck wholesalers/jobbers e. Rack jobbers

a. Drop shippers

What type of shopping centers would be located outside of metropolitan areas and feature stores owned by manufacturers selling upscale products from last season? a. Factory outlet malls b. Off-price shopping centers c. Value shopping centers d. Superregional shopping centers

a. Factory outlet malls (Factory outlet malls feature discount and factory outlet stores carrying traditional brands. They typically contain upscale products from last season discounted for quick sale. The stores are owned by manufacturers and they make sure to avoid competition with traditional retailers carrying their products.)

Which of the following is NOT an advantage of franchising? a. Franchisees must pay to use the franchisor's name, products, and assistance. b. Franchisees may be able to start a business with limited capital. c. Franchisors gain distribution without the high cost of constructing and operating their own outlets. d. Franchises generally have lower failure rates than independent retail establishments. e. Franchisees can benefit from the business experience of others.

a. Franchisees must pay to use the franchisor's name, products, and assistance.

If you were to classify retailers based on the breadth of products they offer, then you would use which two categories? a. General-merchandise and specialty retailers b. Full-service and self-service retailers c. Convenience and shopping retailers d. Chain stores and independent retailers

a. General-merchandise and specialty retailers

_______, popular in Europe, combine supermarkets and discount shopping in one location. These retailers offer 45,000-60,000 different types of low-priced products. a. Hypermarkets b. Warehouse clubs c. Superstores d. Megamarts

a. Hypermarkets

_______ satisfy/satisfies an increasing expectation among consumers to have multiple channels available to obtain the goods and services they desire at their convenience. a. Online retailing b. Warehouse showrooms c. Webrooming d. International retailing e. Brick-and-mortar stores

a. Online retailing

Which of the following is true of online retailers? a. Retailers may offer exclusive online sales. b. Most retailers are hesitant to offer products online. c. Online retailers have less merchandise in stock than brick-and-mortar stores. d. Online retailers do not have brick-and-mortar locations.

a. Retailers may offer exclusive online sales.

Which of the following is a difference between selling agents and manufacturers' agents? a. Selling agents have complete control over product pricing b. Selling agents are allowed to represent competing products c. Selling agents bring buyers and sellers together and manufacturers' agents represent the manufacturer d. Selling agents have strict territories that they need to use

a. Selling agents have complete control over product pricing

Beth goes shopping to buy food for dinner, but also wants to pick up a new pair of running shoes and a new shirt for her son. Because she is with her children, she wants to do all of her shopping at one store. Which of the following should Beth visit? a. Superstore b. Convenience store c. Discount store d. Supermarket

a. Superstore

Which of the following is a challenge for traditional specialty retailers? a. They have high costs in proportion to sales. b. Stores are often very large and require the retailer to pay close attention to average sales per square foot. c. They tend to have less sales expertise than their main competitors, department stores. d. They struggle with understanding their customers and, therefore, which products to carry.

a. They have high costs in proportion to sales.

Extreme value stores include Dollar General, Dollar Tree, Big Lots, and 99¢ Only Stores. a. True b. False

a. True

Jessica invites a sales representative from The Pampered Chef, a company that sells kitchen tools, to her home. The representative brings sample products and makes a sales presentation to Jessica and 10 of her friends. Once the presentation is over, the representative takes orders from Jessica and the guests. This is an example of _______. a. a party plan b. direct-response marketing c. online retailing d. home shopping

a. a party plan

Agents and brokers differ in that _______. a. agents represent buyers or sellers on a permanent basis while brokers are intermediaries that buyers or sellers employ temporarily b. agents extend credit to customers while brokers do not c. agents perform more functions than limited-service wholesalers while brokers provide fewer functions d. agents are usually specialists in particular products or types of customers while brokers do not specialize

a. agents represent buyers or sellers on a permanent basis while brokers are intermediaries that buyers or sellers employ temporarily

Shawn needed a gift bag for a present he had purchased. He went to a store that was much smaller than his local Target and everything was priced low—most items were $1. Shawn visited _______. a. an extreme-value store b. a warehouse club c. a discount store d. a convenience store

a. an extreme-value store

Every time Ayame drives by the Eastgate Mall, she receives a push notification on her smartphone from Kohl's alerting her to a special or an in-store deal. Kohl's is utilizing _______ to reach customers. a. beacons b. signals c. pop ups d. text messaging

a. beacons

A(n) _______ is a very large specialty store that competes on the basis of lower prices and enormous product availability. a. category killer b. traditional specialty store c. off-price retailer d. warehouse club

a. category killer

All of the following are general-merchandise retailers, except _______. a. category killers b. extreme-value stores c. hypermarkets d. warehouse clubs e. department stores

a. category killers

While most _______ worry about online retailers like Amazon, Tractor Supply Co. (TSC) thinks the knowledge of its store associates will keep Amazon at bay. TSC carries products to support a rural lifestyle and at considerable depth. The products are often bulky and high shipping costs will keep customers shopping at TSC rather than Amazon. a. category killers b. warehouse clubs c. superstores d. convenience retailers

a. category killers (Category killers, which have been losing some market share to online retailing, are very large specialty stores that concentrate on a major product category and compete on the basis of low prices and product availability. Tractor Supply Co. is a category killer.)

Dennis enjoys going to a shopping center about 10 miles from his house. It has two department stores, a J.C. Penney and a Dillard's, a convenience store, and some specialty stores. This weekend, he is excited to go see the RV show that is taking place in the center's parking lot. This shopping center is most likely a _______ shopping center. a. community b. regional c. neighborhood d. lifestyle

a. community

A _______ usually has one or two department stores, some specialty stores, and convenience stores. They often hold special events to stimulate traffic. a. community shopping center b. neighborhood shopping center c. regional shopping center d. lifestyle shopping center

a. community shopping center

The key to success in retailing is to have a strong _______ with a retail strategy that provides the level of service, product quality, and innovation that consumers desire. a. customer focus b. location c. category management d. online presence e. shareholder focus

a. customer focus

Hannah is reading through one of her favorite magazines. She notices an ad for a complete set of mint-condition state quarters. To order the coins, she would have to dial a toll-free number or mail in a form printed on the ad. This is an example of _______. a. direct-response marketing b. catalog marketing c. telemarketing d. party planning

a. direct-response marketing

Clifton Medical Supplies has hired a wholesaler to sell its medical products to business customers. Although the wholesaler never physically possesses the products, it takes ownership of them and is responsible if the products do not sell. The wholesaler sells the product and then makes arrangements for Clifton to ship the products directly to the businesses. The wholesaler is a _______. a. drop shipper b. rack jobber c. truck wholesaler d. cash-and-carry wholesaler

a. drop shipper (Drop shippers are limited-service wholesalers that take title of goods, negotiate sales, and arrange delivery from the producer directly to the customer without ever taking physical possession of the product.)

Aaron has been running a successful food truck that sells gourmet grilled cheese sandwiches and macaroni and cheese. He has been thinking of expansion and has been approached by people who would like to open up a similar food truck using the same name and business model that he uses. The situation here would be best suited to _______. a. franchising b. direct selling c. direct-response marketing d. automatic vending

a. franchising

A grocery store is using a wholesaler that provides a variety of nonprescription medicines for its pharmacy section. If the wholesaler is providing financing to the grocery store, assisting with promotional materials, and streamlining coupon redemption, then the wholesaler is most likely a _______. a. full-service wholesaler b. commission merchant c. limited-service wholesaler d. rack jobber

a. full-service wholesaler

Gino's Italian Restaurant is an upscale restaurant. The management is updating the atmosphere of the restaurant to relax the customers and have them indulge in multiple courses. To do so, it is repainting the interior _______, which is known to be calming and associated with wellness, and playing _______ music, which has been shown to encourage customers to stay longer in restaurants. a. green; soft classical b. blue; soft classical c. red; pop d. blue; pop

a. green; soft classical (Green is calming and associated with wellness, so it is more likely to be used in natural food stores and restaurants. Soft classical music enhances the experience of restaurant patrons, encouraging them to indulge in multiple courses.)

At your local _______ store, there is a minimal assortment of goods—most of which are store brands offered at very low prices. To keep costs low, these stores have a no-frills environment where customers have to bag their own groceries and pay a quarter for a grocery cart. a. hard discounter b. warehouse club c. hypermarket d. extreme-value

a. hard discounter (Hard discounters are supermarkets with a no-frills environment and minimal assortment of goods they sell at very low prices. German grocery chains Aldi and Lidl are hard discounters that have expanded into the United States.)

An open-air shopping center that features upscale specialty stores, dining, and entertainment stores is called a _______. a. lifestyle shopping center b. power shopping center c. neighborhood shopping center d. community shopping center

a. lifestyle shopping center

Because Gem Supply's sales have continued to decline, the jewelry manufacturer has found that the costs associated with maintaining its own five-person sales force are prohibitive. The firm's marketing director begins to look for a small company or individual willing to perform the sales function for Gem Supply in its least productive region, the Far West. The ideal entity would carry complementary but non-competing lines. Such a firm or individual would be classified as a _______. a. manufacturers' agent b. selling agent c. specialty-line wholesaler d. rack jobber

a. manufacturers' agent (Manufacturers' agents, which account for more than half of all agent wholesalers, are independent intermediaries that represent two or more sellers and usually offer complete product lines to customers. Restricted to a particular territory, a manufacturers' agent handles noncompeting and complementary products. Gem Supply is a manufacturers' agent.)

Deborah is opening a second-hand clothing store in a shopping center that has other small specialty stores, a convenience store, and a fast-food restaurant. The center primarily attracts customers who live within a couple miles of the stores. Deborah's store is most likely in a _______ shopping center. a. neighborhood b. power c. community d. regional

a. neighborhood

For $14 a month, Shipt will deliver groceries to customers that the customers have ordered through an app or on the Shipt website. Shipt is an example of _______. a. online retailing b. television home shopping c. catalog marketing d. telemarketing

a. online retailing

The reason why Delilah chose to locate her one retail location in this small town was because the town has a reputation for being an "art colony." It is located off a major highway, and a lot of travelers stop in. Others are willing to travel from miles away. When Delilah looked at the market, she realized most sellers of art in the community were charging premium pricing. This worked fine for those who traveled from far away to shop for art, but most people who were just passing through on their way to another destination did not want to make such a big investment. Recognizing this, Delilah chose to price her pottery at more reasonable prices. This is an example of _______. a. retail positioning b. automatic vending c. atmospherics d. direct marketing e. category management

a. retail positioning

A manager at Owens Corning, a manufacturer of fiberglass, insulation, and related products, is updating the way the company interacts with its sales force. The manager has decided to open up offices in key areas that will provide support services for the sales force, carry inventory, and offer services to construction customers. This type of office is known as a _______. a. sales branch b. merchant wholesaler c. sales office d. full-service wholesaler

a. sales branch (A sales branch is a manufacturer-owned intermediary that sells products and provides support services to the manufacturers' sales force. It carries inventory, while a sales office does not.)

Sephora is a store that offers a wide variety of cosmetics and beauty products. It would most likely be categorized as a(n) _______. a. specialty retailer b. superstore c. discount store d. off-price retailer

a. specialty retailer

Many large retailers such as Target and Home Depot are finding that because of their size they can deal directly with producers and take care of ordering, delivery, and handling of goods rather than using an independent wholesaler. They are able to do so because _______. a. they are performing the functions normally performed by independent wholesalers b. the functions performed by independent wholesalers are not needed for large retailers c. they have been able to eliminate many of the functions performed by wholesalers d. they have merged with wholesalers and absorbed their operations into their retail operations

a. they are performing the functions normally performed by independent wholesalers

Phydeaux and Friends is an independent retailer that carries deep product lines of pet supplies. This small, locally owned store is best classified as a(n) _______. a. traditional specialty retailer b. department store c. category killer d. warehouse showroom e. off-price retailer

a. traditional specialty retailer

Which of the following is a limited-service wholesaler? a. Limited-line wholesaler b. Cash-and-carry wholesaler c. General-merchandise wholesaler d. Specialty-line wholesaler

b. Cash-and-carry wholesaler (A limited-service wholesaler is a merchant wholesaler that provides fewer marketing services than a full-service wholesaler. Examples include cash-and-carry wholesalers, rack jobbers, drop shippers, and truck wholesalers. A limited-line wholesaler is a full-service wholesaler.)

Which of the following is not one of the benefits of television home shopping for a marketer engaged in direct marketing? a. Customers can shop at home b. Consumers can seek out hard-to-find items c. Products can be demonstrated easily d. Time spent showing a product can be varied

b. Consumers can seek out hard-to-find items

Which of the following is the most expensive form of retailing? a. Vending b. Direct selling c. Online retailing d. Direct-response marketing e. Catalog marketing

b. Direct selling

Which type of store offers a wide assortment of products, has high inventory turnover, and operates with low margins and high sales volume? a. Convenience store b. Discount store c. Warehouse club d. Department store

b. Discount store

In order to qualify as retailing, the transaction between buyer and seller must occur either through the internet or a physical location. a. True b. False

b. False

Retailers play a major role in creating time, place, and possession utility but not form utility. a. True b. False

b. False

Johnson Produce is a company that is an intermediary that works to get the produce section in grocery stores stocked with fruits and vegetables. Because of the perishability of food items, Johnson Produce does not take title over any of the produce moving from farmers to grocery stores. That means Johnson Produce cannot be which of the following? a. Commission merchant b. Merchant wholesaler c. Broker d. Manufacturers' agent

b. Merchant wholesaler (Johnson Produce is not a merchant wholesaler. Merchant wholesalers are independently owned business that takes title of goods, assumes ownership risks, and buys and resells products to other wholesalers, business customers, or retailers. The other options are all types of agents and brokers, who do not take title of products.)

Which of the following direct marketing methods will reach the most people, allow customers to shop from the convenience of their homes, and is one of the least expensive? a. Direct selling b. Online retailing c. Telemarketing d. Automatic vending e. Television home shopping

b. Online retailing

Nicole manages a boutique that sells unique gifts and stationery. She wants to update the store's strategic plan. Which of the following aspects of the store is the least flexible? a. Store image b. Store location c. Store atmosphere d. Product assortment

b. Store location

Which of the following is an example of an off-price retailer? a. Target b. T.J. Maxx c. Home Depot d. Foot Locker

b. T.J. Maxx

_______ occurs when a shopper researches a product online and then heads to the nearest store to make the actual purchase. a. Window shopping b. Webrooming c. Webhaggling d. Showrooming

b. Webrooming

Jack is shopping for a birthday present for his mother. He wants to buy her a pair of earrings and decides to go to a store that provides the best selection of earrings and jewelry. The best store for him to shop at would be _______. a. a department store b. a traditional specialty store c. a convenience store d. a superstore

b. a traditional specialty store

A general-merchandise retailer offers _______. a. few product lines with deep assortments of these lines b. a variety of product lines that are stocked in depth c. few choices of a large variety of product lines d. a single product line that is stocked in depth

b. a variety of product lines that are stocked in depth

Jordynn decides to open an Olive Garden franchise. She pays the franchise fees and opens the restaurant. Because Olive Garden is already a well-known name, Jordynn knows her chances of success are higher than if she opened her own restaurant from scratch. Jordynn hires experienced servers with great customer service skills. Jordynn would love to adopt an ancient Roman décor for her restaurant. However, she is told that her restaurant must have more of a Tuscany theme so that it remains consistent with other Olive Garden restaurants. Her restaurant becomes a major success. Jordynn's servers are especially adept at convincing patrons to purchase Olive Garden's bottles of wine. The Tuscany theme Jordynn adopts, including photos of Italian scenes and Italian-style architecture, is part of Olive Garden's _______. a. direct marketing b. atmospherics c. retail positioning d. category management e. multichannel selling

b. atmospherics

Jamie works in the insurance industry and has expertise in different types of insurance. She is not affiliated with any insurance company but helps bring together individuals with the insurance company and policy that is right for them. Jamie is a _______. a. selling agent b. broker c. limited-service wholesaler d. commission merchant

b. broker

Before heading to the pool, Yash filled up his car with gas and ran into the _______ to withdraw $40 from the ATM and get snacks and a Gatorade. a. discount store b. convenience store c. extreme-value store d. department store

b. convenience store

Off-price retailers compete primarily on the basis of _______. a. broad selection of products including food, electronics, and clothing b. deeply discounted prices on name-brand merchandise c. high-quality private brands at low prices d. low prices and broad product availability in one major product category

b. deeply discounted prices on name-brand merchandise

Clayton's is a large retail store that has distinct areas for housewares, appliances, men's apparel, women's apparel, cosmetics, and jewelry. It offers personal assistance with shopping, merchandise returns, delivery options, and a pleasant atmosphere. Clayton's is most likely an example of a _______. a. superstore b. department store c. supermarket d. category killer

b. department store (Department stores are large organizations offering a wide product mix organized into separate departments.)

Brett is evaluating how consumers buy his company's products. He is thinking of adding various types of _______ marketing such as publishing a catalog, hiring telemarketers, and online shopping. a. flexible b. direct c. experiential d. off-site

b. direct

Script to Screen is an agency that produces television infomercials. When potential consumers view the infomercial, they can purchase the product by phone, mail, or online. Script to Screen is an example of a company engaging in _______. a. direct selling b. direct-response marketing c. catalog marketing d. telemarketing

b. direct-response marketing

By using Johnson Wholesale Co. for its distribution needs, the Apex Production has a distinct competitive advantage because the services performed by Johnson allow Apex to _______. a. focus on increasing production capacity b. focus on producing products that meet consumers' needs c. focus on increasing working capital d. provide quality merchandise to consumers

b. focus on producing products that meet consumers' needs

Colin brags to his friend Reid that his new bike shop has lots of parking and great visibility from Harper Avenue, and his nearest business neighbors are several hundred feet away. Colin has selected a _______ site for his retail business. a. traditional business district b. freestanding c. community shopping center d. neighborhood shopping center

b. freestanding (Some retailers, including Colin's shop, opt for freestanding structures that are not connected to other buildings, but may be located within planned shopping centers.)

If a retailer needs help with document management, communication management, and the distribution of retailer flyers, it would most likely hire a _______. a. rack jobber b. full-service wholesaler c. limited-service wholesaler d. cash-and-carry wholesaler

b. full-service wholesaler (It would hire a full-service wholesaler. Full-service wholesalers perform the widest possible range of wholesaler functions, sometimes including document management, communication management, and the distribution of retail flyers.)

Department stores, convenience stores, and warehouse clubs can all be classified as _______. a. superstores b. general-merchandise stores c. specialty retailers d. variety stores

b. general-merchandise stores

The United Kingdom's largest supermarket is called Tesco. Tesco is a grocery and general merchandise retailer. In some outer city regions, Tesco has opened up stores it calls Tesco Extra, which carries all of Tesco's product ranges. These stores are known for their massive size—the largest one is 185,500 square feet. Tesco Extra is most likely to be a _______. a. department store b. hypermarket c. warehouse club d. supermarket e. warehouse showroom

b. hypermarket

Victor knows that if he decides to buy a franchise, he will most likely have to supply _______. a. buildings and daily operations b. labor and daily operations c. marketing assistance and management know-how d. management know-how and labor

b. labor and daily operations (Franchisees supply labor and capital, operate the franchised business, and agree to abide by the provisions of the franchise agreement.)

The Grove is an open-air shopping center that has upscale specialty stores, nice restaurants, and a movie theater. It is designed to encourage customer loyalty by looking like a "mini-city" with streets, benches, and a small park. The Grove is most likely a _______ shopping center. a. regional b. lifestyle c. superregional d. power

b. lifestyle

A wholesaler that carries a narrow product mix but offers a deep selection within product lines is called a _______. a. rack jobber b. limited-line wholesaler c. general-merchandise wholesaler d. limited-service wholesaler

b. limited-line wholesaler

Kroger is planning to open a new suburban grocery store. Management is currently evaluating how easy it will be to get deliveries at different sites, leasing terms of sites, and compatibility with potential neighboring stores. Kroger is evaluating a new store's _______. a. product mix b. location c. market segmentation d. retail positioning strategy

b. location

Albert maintains a long-term relationship with his buyers, but he does not offer credit to his customers. He is restricted to a territory that encompasses Kansas City and Topeka. Albert is a _______. a. commission merchant b. manufacturers' agent c. broker d. selling agent

b. manufacturers' agent (Manufacturers' agents are independent intermediaries that represent two or more sellers and usually offer customers complete product lines. They develop long-term relationships with buyers and sellers, but do not offer credit to customers. They are also restricted to a particular territory.)

Ridgeland Designs is a small manufacturer of novelty T-shirts and is trying to decide on an intermediary to help get the T-shirts to retailers. The owner does not want the intermediary to take title of the T-shirts but wants someone to represent the company in negotiating with retailers. More importantly, the owner wants to retain control over the pricing and promotion of the T-shirts to retailers. Ridgeland Design would most likely be looking for a _______. a. sales branch b. manufacturers' agent c. broker d. drop shipper

b. manufacturers' agent (Manufacturers' agents do not take title and represent sellers to retailers, business buyers, and other wholesalers. They have little or no control over marketing decisions for the products they sell.)

Tri-County Supply is a wholesaler that works in the home construction industry, providing building supplies such as doors, windows, gutters, and other components used in home construction. Tri-County Supply takes ownership of the components, which means that it assumes the risk associated with the products if it is unable to sell them to home builders. Tri-County Supply is a _______. a. sales office b. merchant wholesaler c. merchant broker d. rack jobber

b. merchant wholesaler

Retailing is vital to the U.S. economy. There are more than _______ retail establishments in the United States employing nearly _______ people. a. one million; 36 million b. one million; 16 million c. two million; 20 million d. two million; 10 million

b. one million; 16 million

Lindsay visits jcrew.com and orders a sweater. This is an example of _______. a. telemarketing b. online retailing c. television home shopping d. catalog marketing

b. online retailing

Brad is a _______ for a magazine distributor. His job is to go into grocery stores and maintain the magazine displays, making sure the magazines are in stock and that older magazines have been removed. a. cash-and-carry wholesaler b. rack jobber c. commission merchant d. truck jobber

b. rack jobber (Rack jobbers are full-service specialty-line wholesalers that own and maintain display racks in stores. The retailers provide the space and the rack jobbers set up displays, mark merchandise, stock shelves, and keep records. They specialize in high-margin nonfood items.)

Anjali Ravi and Sofia Similpa are starting a business where they own and stock display racks in supermarkets, discount, and drugstores with current magazines. Ravi and Similpa's business would best be described as _______. a. general-merchandise wholesalers b. rack jobbers c. specialty-line wholesalers d. truck jobbers e. drop shippers

b. rack jobbers

Liz has decided to open a store that will offer second-hand children's items for sale. She will buy gently-used items and resell them to customers who are looking for children's clothes and books at discounted rates. No other store in the area seems to be offering children's items at the prices her store will offer. Liz is identifying her _______ before she opens her store. a. store location b. retail positioning c. target customer d. product mix depth

b. retail positioning

When Olive Garden sells wine to its customers in the restaurant, this is known as _______. a. wholesaling b. retailing c. automatic vending d. direct marketing e. warehousing

b. retailing

Alaskan Wholesale is a full-service wholesaler that exclusively deals with selling fish that are caught by fishermen in Alaska. Although it only carries Alaskan fish, its inventory contains a great selection of every type of fish available from Alaska. Alaskan Wholesale is most likely a _______. a. general-merchandise wholesaler b. specialty-line wholesaler c. rack jobber d. drop shipper

b. specialty-line wholesaler

Phil works at a wholesaler that specializes in organic, grass-fed beef. Resellers wanting to purchase from Phil's organization have few options to choose from because its beef products tend not to vary. Phil most likely works for a _______. a. limited-line wholesaler b. specialty-line wholesaler c. rack jobber d. limited-service wholesaler e. general-merchandise wholesaler

b. specialty-line wholesaler

Some shopping centers are designed to attract customers from many miles away. They offer the deepest and widest product mixes and even include attractions like theme parks. These are known as _______. a. power shopping centers b. superregional shopping centers c. community shopping centers d. regional shopping centers

b. superregional shopping centers

All of the following are differences between superstores and discount stores, except _______. a. superstores carry food products that a grocery store carries, but discount stores do not b. superstores carry routinely purchased consumer products, but discount stores do not c. superstores offer more services such as auto repair, dry cleaning, and check cashing than discount stores d. superstores carry more items in overall inventory than discount stores

b. superstores carry routinely purchased consumer products, but discount stores do not

Chris is an advertising manager for a local car wash. The company has been trying to get new customers to visit the wash by having a staff member make phone calls in a process called _______. Since this strategy has not been as successful as he had hoped, he is instead going to mail out postcards advertising the car wash. The cards, part of a strategy called _______, will include a toll-free number where potential customers can call and order prepaid cards to use at the car wash. a. direct-response marketing; direct selling b. telemarketing; direct-response marketing c. telemarketing; catalog marketing d. television home shopping; direct selling

b. telemarketing; direct-response marketing

Which of the following is the best example of a rack jobber? a. A middleman represents a buyer on a permanent basis. b. A wholesaler uses catalogs to sell to retail and business buyers. c. A vendor maintains a rack of Blu-ray discs it sells at a popular drugstore. d. A retailer puts a rack of its merchandise on sale. e. A marketing intermediary transports products to customers for on-the-spot inspection.

c. A vendor maintains a rack of Blu-ray discs it sells at a popular drugstore.

You represent a group of investors who are exploring alternatives for entering the retailing business. Many of these investors have significant past experience working for other retailing companies and they realize the retailing business is very competitive. They also realize there is a high failure rate for startups in this industry. They ask you to recommend a retailing strategy that would meet the following criteria: No storefront would be needed No personal selling would be needed No traditional store operating expenses are necessary Customers can place orders via the internet, telephone, or mail Low operating expenses and limited customer service required Which of the following retailing strategies are you going to recommend they use? a. Vending b. Direct selling c. Catalog marketing d. Telemarketing

c. Catalog marketing

Which of the following is a benefit of franchising for the franchisor? a. Greater control over operations b. Consistent standards of operation c. Fast and selective product distribution d. Greater amount of quality control e. Guaranteed success

c. Fast and selective product distribution

Which of the following is not a benefit of catalog marketing? a. Efficiency and convenience for customers as they do not have to visit a physical location b. Saves on personal selling expenses c. Flexible method of selling products as catalogs can be updated easily d. Location is not important, so retailers can save on rent expenses

c. Flexible method of selling products as catalogs can be updated easily

_______ are designed to resemble traditional "Main Street" shopping centers and often have a central theme evidenced by the architecture. a. Superregional shopping centers b. Regional shopping centers c. Lifestyle shopping centers d. Power shopping centers e. Community shopping centers

c. Lifestyle shopping centers

After continued success, Nicole decides to begin online retailing and is considering creating an app. Online retailing is a significant factor in the rise of what type of retailing? a. Brick-and-mortar retailing b. Pop-up retailing c. Multichannel retailing d. Discount retailing e. Webrooming

c. Multichannel retailing

What type of shopping center usually consists of several small convenience and specialty stores? a. Regional b. Convenience c. Neighborhood d. Specialty

c. Neighborhood

Larry runs an upscale tanning salon targeting customers who wish to tan in a luxurious and private environment. These customers do not wish to be seen at the salon and want to be treated like royalty. To do so, he has private entrances and private areas for each guest, luxurious amenities, and a staff eager to assist clients. No other tanning salons meet the needs of these customers. What strategic issue in retailing has Larry addressed for his tanning salon? a. Store image b. Product mix depth c. Retail positioning d. Store location

c. Retail positioning

_______ carry regular grocery items as well as non-food products and consumer products such as hardware, housewares, small appliances, and clothing. These retailers are usually around 200,000 square feet and offer some services such as check cashing, automotive repair, and dry cleaning. a. Hypermarkets b. Warehouse clubs c. Superstores d. Megamarkets

c. Superstores

Which of the following is not considered an element of a store's atmospherics? a. Merchandise presentation b. Complexity of layout c. Variety of products d. Floor coverings

c. Variety of products

Whole Foods was able to identify a market segment that was looking for healthy and organic foods. This segment was underserved in that there were no large grocery stores that provided a broad assortment of healthy and organic foods, so it created _______ to meet the needs of that segment. a. atmospherics b. target customers c. a retail positioning d. a deep product mix

c. a retail positioning (Retail positioning is a process of identifying an unserved or underserved market segment and serving it through a strategy that distinguishes the retailer from others in the minds of consumers in that segment.)

When Malcolm Reynolds walks into his local H&M store, he gets a message on his smartphone announcing that T-shirts in the store are 25% off today. This illustrates the use of _______. a. virtual fit b. websites c. beacons d. smart mirrors e. self-checkout

c. beacons

Lyle founded a salsa manufacturing plant in his hometown of El Paso, Texas. Sales have been good, and demand for his products have been high. Lyle believes there are many more potential customers for his product in different regions of the country. He would like to sell to discount stores, restaurants, supermarkets, and more. Lyle does not have much experience in the sales area, however, and he cannot afford to hire a full-time salesperson yet. Lyle turns to Tim, an independent salesperson who works for several different clients in the food industry. Tim is a specialist in his field and has a number of connections in the food industry. Lyle is sure Tim will be successful in finding companies or restaurants who will want to purchase his salsa. Tim is most likely a(n) _______. a. direct marketer b. retailer c. broker d. agent e. drop shipper

c. broker

Isabella works at a discount store and is coordinating her store's supply chain. She has a system that collects information on sales demand and on consumer behavior. The system then determines optimal product allocations for her store's shelves between competitors for each type of product. Isabella is working on _______. a. identifying target customers b. improving atmospherics c. category management d. expanding product mix width

c. category management

When a supermarket allocates space for different competing products on a shelf, it is engaging in _______. a. atmospherics b. retail positioning c. category management d. pricing

c. category management

Vaughn was wide awake at 2 a.m., so he decided to watch television. He ended up watching an infomercial about Gotham Steel frying pans. Vaughn became convinced he needed the dishwasher safe, scratch-resistant cookware and immediately called the 1-800 number listed on the screen to order a frying pan. This is an example of _______. a. catalog marketing b. telemarketing c. direct-response marketing d. direct selling

c. direct-response marketing

Brookdale is a regional self-service store that sells name-brand and private-brand clothing, home goods, and electronics at low prices. Brookdale is an example of a _______. a. hypermarket b. department store c. discount store d. category killer

c. discount store

Cash and Carry is a store that carries food, clothing, and household goods at lower price margins than other nearby stores. There is little service provided and customers have to bag their own purchases. Cash and Carry is most likely an example of a _______. a. category killer b. supermarket c. discount store d. department store

c. discount store

In recent years, Target has become more upscale in its appearance and offerings, charging slightly higher prices for products. It has also introduced low-cost clothing lines by designer labels. These changes have blurred the line between _______. a. discount stores and specialty retailers b. department stores and specialty retailers c. discount stores and department stores d. superstores and warehouse clubs

c. discount stores and department stores

Mark Bradley's company takes orders from its collection of retail customers and arranges the shipment of goods directly from manufacturers or other wholesalers to its customers' businesses. Mark is operating as a _______. a. desk wholesaler b. truck jobber c. drop shipper d. mail-order wholesaler

c. drop shipper (Drop shippers, also known as desk jobbers, take title to products and negotiate sales but never take actual possession of products. They forward orders from retailers, business buyers, or other wholesalers to manufacturers and arrange for carload shipments of items to be delivered directly from producers to these customers. They assume responsibility for products during the entire transaction, including the costs of any unsold goods. Mark Bradley's firm is a drop shipper.)

Prior to school starting, Keenan went shopping at a shopping center about 20 miles outside of Cleveland. He bought last season Nike shoes for a significant discount. He also bought a few items from Under Armour, the Gap, and Banana Republic. Keenan was likely shopping at a _______. a. community shopping center b. power shopping center c. factory outlet mall d. lifestyle shopping center

c. factory outlet mall (Factory outlet malls feature discount and factory outlet stores carrying traditional manufacturer brands. Items are often last season and malls are often located outside of metropolitan areas. Promotional activity is at the heart of these shopping centers.)

Taylor Fence Company manufactures fencing popular for farms and large fields. It sells them in retail locations exclusively through wholesalers. It has been unable to find a wholesaler willing to sell the fencing to retailers in remote areas because the wholesalers do not find them to be profitable. Taylor Fence should consider using a _______ to reach these retail customers. a. rack jobber b. drop shipper c. mail-order wholesaler d. limited-line wholesaler

c. mail-order wholesaler (Mail-order wholesalers use catalogs instead of a sales force to sell products to retail buyers. They can reach customers in remote areas that other wholesalers find unprofitable to serve.)

Mike's Bikes has expanded sales of its bicycles throughout most of the United States. As it finishes its expansion, it wants to find an intermediary to handle its sales functions in the new territory west of the Rocky Mountains. This intermediary would be restricted to that territory and Mike's Bikes would retain control over pricing and other marketing decisions. Mike's Bikes should hire a _______. a. limited-line wholesaler b. selling agent c. manufacturers' agent d. commission merchant

c. manufacturers' agent (It should hire a manufacturers' agent. Manufacturers' agents are independent intermediaries that represent sellers. They handle sales functions, but they have little or no control over a product's price or marketing policies)

From early September through the beginning of November, several stores selling Halloween costumes and supplies open. These stores cut down on rental costs compared to stores that are open year-round and are called _______. a. warehouse showrooms b. temporary storefronts c. pop-up stores d. hypermarkets

c. pop-up stores

With the largest department stores, widest product mixes, and deepest product lines of all shopping centers, _______ shopping centers have well-coordinated management and marketing activities. a. community b. lifestyle c. regional d. neighborhood

c. regional

When a retailer purchases a product, it does so in order to _______. a. resell the product to other retailers b. store the product for future use c. resell the product to ultimate consumers d. use the product in its day-to-day operations

c. resell the product to ultimate consumers

Kate owns a refreshment-stand business at the community ballpark. She goes to a warehouse store like Costco and purchases snacks and canned soda that she will sell at her refreshment stand. Kate is considered a _______. a. broker b. producer c. retailer d. wholesaler

c. retailer

Amazon, Target, Kroger, Bed Bath & Beyond, and Lowe's are examples of _______. a. manufacturers b. wholesalers c. retailers d. end-users

c. retailers

Joseph works for a manufacturer, but away from the manufacturing plants. He works with his company's retail customers to help provide wholesale services. His office does not contain any inventory, but his work helps strengthen the efficiency of the supply chain. Joseph works at a _______. a. merchant wholesaler b. manufacturers' agency c. sales office d. sales branch

c. sales office

Brookdale Furniture, Inc., is a manufacturer of office furniture. It has hired a _______ named Davidson Intermediaries to market its product line. Davidson takes care of the sales and other marketing functions for the furniture maker but does not take possession of any of the furniture. a. commission merchant b. full-service wholesaler c. selling agent d. manufacturers' agent

c. selling agent

Wholesaling involves all of the following activities, except _______. a. selling products that will be resold b. selling products that will be used to make other products c. selling products to the ultimate consumer d. selling products for use in general business operations

c. selling products to the ultimate consumer

Veril loves shopping at the Palisades Center Mall in West Nyack, New York. It has four-stories with 16 anchor stores and more than 200 retailers. If she is hungry, Veril can choose from 16 sit-down restaurants and a food court. Occasionally, Veril and her friends go to Palisades to visit the bowling alley, movie theater, ice skating rink, climbing wall and ropes course, or Ferris wheel. Palisades Center Mall would be classified as a _______. a. megamall b. power mall c. superregional shopping center d. lifestyle shopping center

c. superregional shopping center

Sophia is the new marketing manager for a new line of laptop, MP3, and smartphone accessories made by the company, Skull Candy. These accessories are trendy, colorful, and more expensive than others on the market. After considering the target market for the products, Sophia has decided not to use marketing-related activities conducted on the telephone, called _______, and instead use _______, a type of nonstore retailing. a. direct-response marketing; vending b. direct-selling; online retailing c. telemarketing; vending d. e-marketing; specialty marketing

c. telemarketing; vending

Sometimes called limited-line retailers, _______ carry a narrow product mix with deep product lines. a. warehouse clubs b. off-price retailers c. traditional specialty retailers d. category killers

c. traditional specialty retailers

Eric is a wholesaler who deals with individual bakers who want to sell their bread to independent restaurants and grocery stores. Every morning, he picks up bread from the bakers and visits the grocery stores and restaurants that purchase whatever bread he has that day. Eric is a _______. a. selling agent b. broker c. truck jobber d. rack jobber

c. truck jobber

Quentin and his friends saw a commercial advertising the latest Dwayne "The Rock" Johnson movie on Blu-ray, so they rented it from Redbox, an automated movie and game kiosk. This is an example of _______. a. television home shopping b. direct-response marketing c. vending d. direct selling

c. vending

While at the mall, Adrienne decides to buy a new smartwatch. She purchases one using a credit card. The transaction takes place at a machine and involves no contact with a person. This transaction most likely used _______. a. a party plan b. direct-response marketing c. vending d. telemarketing

c. vending

When Alexa visited a furniture store called the Barrington Store for the first time, it was a lot larger than she expected. She was surprised that it had a warehouse feel and large displays of merchandise. There was minimal service, but it had a lot of stock on hand that she was able to carry away in large cartons. The Barrington Store can most likely be categorized as a _______. a. discount store b. superstore c. warehouse showroom d. supermarket

c. warehouse showroom (Barrington Store is a warehouse showroom. Warehouse showrooms are retail facilities in large, low-cost buildings with large on-premises inventories and minimal service. Customers often have some marketing functions such as transportation and financing of the purchase shifted to be their responsibility. Most consumers carry away purchases in manufacturers' cartons.)

A general-merchandise wholesaler would be expected to carry a _______ product mix. a. narrow and deep b. narrow and shallow c. wide and shallow d. wide and deep

c. wide and shallow

Nicole has been wanting to open her own business for many years. After much saving and a loan from the bank, she was able to open up her own store. This store features upscale jewelry, footwear, and clothing for professional women. She uses a premium pricing strategy to demonstrate the quality of her products. As time passed, she adopted other product lines including luggage and beauty products. Nicole has developed strong relationships with suppliers so that new orders come relatively quickly. Nicole distinguishes herself from the competition with the high level of service at her store. Her workers are trained to greet customers within fifteen seconds of them entering the store. She also gives her employees permission to take whatever time needed to make sure that customer needs are met. Based upon the information about Nicole's store, what type of store do you think it is? a. Category killer b. Specialty-line wholesaler c. Warehouse club d. Department store e. Discount store

d. Department store

Advo Systems is an organization that mails product brochures and coupons to potential consumers who can then purchase these products by mail or by phone. Advo Systems illustrates which of the following methods of selling retail products? a. Party plan b. Specialty retailing c. Catalog marketing d. Direct-response marketing

d. Direct-response marketing

Which of the following is least likely to be considered when deciding on a retailer's location? a. Kinds of product being sold b. Customer characteristics c. Placement of competitors' stores d. Distance from corporate headquarters

d. Distance from corporate headquarters

Which of the following is the fastest growing form of retail, especially among Millennials? a. Online clothing and apparel shopping b. Online movie and music purchases c. Online banking d. Online grocery shopping

d. Online grocery shopping

Which of the following types of retailer has put the most pressure on category killers? a. Off-price retailers b. Superstores c. Discount stores d. Online retailers

d. Online retailers

Which of the following involves identifying an unserved or underserved market segment and reaching it through a strategy that distinguishes the retailer from others in the minds of customers in the market segment? a. Category management b. Atmospherics c. Multichannel retailing d. Retail positioning e. Disruptive innovation

d. Retail positioning

Which of the following is owned by the producer? a. Manufacturers' agents b. Brokers c. Commission merchants d. Sales offices e. Selling agents

d. Sales offices

What is the primary difference between superstores and supermarkets? a. Supermarkets offer food and nonfood products and superstores offer only nonfood products. b. Superstores offer lower prices than those found at supermarkets. c. Supermarkets are larger in size than superstores. d. Superstores offer routinely purchased products in addition to products found at supermarkets.

d. Superstores offer routinely purchased products in addition to products found at supermarkets.

Sergei runs an upscale nail salon targeting consumers who wish to get a manicure or pedicure in a luxurious environment. He is working hard to make sure the salon is appealing to his customers. He has installed marble countertops and floors and has gold-plated accents throughout the salon. He has adjusted the music and lighting and uses scented candles that all help add to the luxurious feeling. He believes these changes will make his customers return more frequently. Sergei has been focusing on _______. a. store location b. pricing c. retail positioning d. atmospherics

d. atmospherics

Ryan has been a florist for years and considers himself to be an expert in how florists and flower growers exchange their products. He wants to start a new business as an intermediary that can help growers find florists to sell their flowers. He does not want to represent either party and also does not want to take ownership of any of the product. He simply wants to bring the flower growers and florists together. He will be a _______. a. selling agent b. limited-line wholesaler c. commission merchant d. broker

d. broker (A broker is an intermediary that brings buyers and sellers together but does not represent either party or take ownership of any product.)

Which of the following collection of retailers is most likely to be found at a power shopping center? a. Coach, Kate Spade, Nike, and Lane Bryant outlets b. Macy's, Nordstrom, Marshall's, and Kohl's c. Target and small specialty shops d. buybuy BABY, T.J. Maxx, Bed Bath & Beyond, and Home Depot

d. buybuy BABY, T.J. Maxx, Bed Bath & Beyond, and Home Depot (Power shopping centers combine off-price stores such as T.J. Maxx and category killers like buybuy BABY, Bed Bath & Beyond, and Home Depot.)

Many small restaurants visit Costco to purchase supplies for their food and operating items. While Costco is a retailer, it combines retailing with _______ functions, allowing small businesses that are able to supply their own transportation the ability to pay for and take their products immediately. a. commission merchant b. truck jobber c. selling agent d. cash-and-carry wholesaler

d. cash-and-carry wholesaler (Costco combines retailing with cash-and-carry wholesaler functions. Small business customers can use Costco much like a family can use the grocery store, paying cash for products and transporting them when they leave.)

Welty Popcorn is a manufacturer of gourmet popcorn that is sold in small, independent retailers rather than large retail chains. Most wholesalers do not want to carry Welty Popcorn because their customers are all small retailers. Welty most likely deals with _______. a. general-merchandise wholesalers b. truck wholesalers c. commission merchants d. cash-and-carry wholesalers

d. cash-and-carry wholesalers (These wholesalers typically have small businesses as customers that pay cash and provide their own transportation. The small businesses rely on cash-and-carry wholesalers since most wholesalers do not take on very small retailers.)

Beremand Limited sends out paper copies of a listing of its products. Customers can then look through the listing and place orders online, through mail, or by calling a toll-free number. Beremand Limited is primarily a _______. a. telemarketer b. superstore c. direct seller d. catalog marketer

d. catalog marketer

Zac works in the agriculture industry, dealing with farmers. He takes possession of crops such as corn or soybeans, arranges for them to be stored, and then takes them to be sold at auctions. For his work, he receives a percentage of what the crops are sold for. He is a _______. a. manufacturers' agent b. selling agent c. broker d. commission merchant

d. commission merchant

Meade Farms wants to hire an intermediary to help with the distribution of the yield from its farms. It wants someone that will take possession of the harvested crops, store them, and sell them at an auction. Meade Farms is willing to give the distributor a percentage of what it raises from selling the crops. It should most likely hire a _______. a. limited-service wholesaler b. manufacturers' agent c. selling agent d. commission merchant

d. commission merchant (Commission merchants are agents that receive goods on consignment and negotiate sales in large, central markets. They store and transport the commodities and earn a commission from what they sell.)

Nicole has located her very first store in a smaller shopping area where she sometimes partners with the other businesses to hold events or exhibits. Nicole chose this location because she wanted to attract customers looking for shopping or specialty products. She feels that many of the retailers in the shopping center offer products that cannot be found in the typical strip mall. Nicole has located her shop in a _______. a. power shopping center b. neighborhood shopping center c. regional shopping center d. community shopping center e. lifestyle shopping center

d. community shopping center

Companies such as Avon and Amway choose to market their products to ultimate consumers. They use face-to-face sales presentations either at home or at work. This strategy is referred to as _______. a. catalog marketing b. telemarketing c. direct-response marketing d. direct selling

d. direct selling

National Geographic sent Ray his monthly magazine. It also sent him a form letting him know that his subscription was running out. If he acts now, he can save $5 on his purchase. All Ray has to do to renew his subscription for the upcoming year is fill out a form and mail it with a check to National Geographic. This is an example of _______. a. direct selling b. automatic vending c. telemarketing d. direct-response marketing e. catalog marketing

d. direct-response marketing

KidRead is developing a way to increase the number of subscribers to its children's book subscription service using direct marketing. It has narrowed down the options to _______ in which it would mail out postcards advertising the service and having new customers place mail, telephone, or online orders or _______ in which it would call potential subscribers to sell them the service over the phone. a. online marketing; telemarketing b. catalog marketing; television home shopping c. catalog marketing; online marketing d. direct-response marketing; telemarketing

d. direct-response marketing; telemarketing

Target is a self-service store that sells general merchandise. It is a _______. a. department store b. specialty retailer c. superstore d. discount store

d. discount store (Discount stores are self-service general-merchandise outlets that offer products at low prices. They have lower profit margins than conventional retailers, but higher sales volume. Target, Walmart, and Five Below are examples of discount stores.)

By locating in the same general vicinity as other car dealerships, Hartfield Honda can _______. a. facilitate wholesale exchanges b. create possession utility c. create form utility d. facilitate comparison shopping

d. facilitate comparison shopping

Pat and Taylor want to furnish their apartment with new furniture. They decide to go to an area where there are several furniture stores close to each other. They chose this area because having several stores together helps _______. a. enhance their perception of value b. provide time utility c. provide delivery service d. facilitate comparison shopping

d. facilitate comparison shopping (Retailers can facilitate comparison shopping if they cluster in the same general vicinity. This allows customers to visit several retailers to compare products.)

Athleta, which sells activewear and swimsuits for women, has retail stores across the United States as well as a website, an app, and a catalog. Athleta is participating in _______. a. webrooming b. category killing c. general merchandising d. multichannel retailing

d. multichannel retailing

Twin Pines Mall has a Nordstrom, J.C. Penney, and Macy's as well as many specialty stores that are national chains. It attracts customers traveling a distance because it has stores selling products that smaller shopping centers do not offer. Twin Pines Mall is most likely a _______ shopping center. a. superregional b. lifestyle c. community d. regional

d. regional (Regional shopping centers have large department stores, wide product mixes, and deep product lines. They serve over 150,000 customers in their target market and attract consumers traveling a distance to shop at their stores.)

Marilyn is at home and sees a vacuum cleaner being used on QVC. She calls a toll-free number to order the vacuum and pays with her credit card. This is an example of _______. a. telemarketing b. direct-response marketing c. online retailing d. television home shopping

d. television home shopping (This is television home shopping, which is a form of selling in which products are presented to television viewers who can then buy them by calling a toll-free number and paying with a credit card.)

Small, standardized, routinely purchased items are best suited for distribution through _______. a. television home shopping b. telemarketing c. direct-response marketing d. vending e. direct selling

d. vending

Which of the following is NOT a form of direct marketing? a. Catalog marketing b. Direct-response marketing c. Television home shopping d. Telemarketing e. Direct selling

e. Direct selling

Which of the following is a fraction of the size of conventional discount stores and typically offer very low prices on smaller size name-brand nonperishable household items? a. Warehouse showrooms b. Discount stores c. Warehouse clubs d. Hypermarkets e. Extreme-value stores

e. Extreme-value stores

Which of the following perform the widest range of wholesaling functions? a. Limited-service wholesalers b. Drop shippers c. Sales branches d. Agents e. Full-service wholesalers

e. Full-service wholesalers

_______ is/are a rapidly-growing segment that most retailers now view as vital to their businesses. a. Extreme-value stores b. Brick-and-mortar stores c. Category killers d. Webrooming e. Online retailing

e. Online retailing

Delilah owns a pottery store in a small town. In recent years she has been able to expand her pottery store significantly. Demands for her pottery have grown from outside of the area, and many fans follow the photos of new designs and art pieces posted on Delilah's Facebook page. Delilah does not want to open a new location in a more urban area, but she would like her fans from outside the region to be able to order pottery easily. Additionally, some of her firm's most loyal supporters live in towns even more rural than Delilah's. Delilah is looking for a marketing distribution method that would not be too high in cost and would not require a whole lot of time. She already sells through her website, but she wants to open up another channel of distribution. Based on her criteria, Delilah should probably use _______. a. telemarketing b. automatic vending c. direct selling d. home shopping e. catalog marketing

e. catalog marketing

Joseph has a passion for quality electronics. His dream is to open up a large electronics store to compete against Best Buy. He thinks he can utilize supplier relationships to source the latest high-tech electronics at lower prices. Therefore, he thinks he can beat Best Buy on the type of products available as well as with lower price points. Joseph is most likely to open up a _______. a. department store b. convenience store c. off-price retailer d. warehouse showroom e. category killer

e. category killer

In terms of selling products, _______ is the most personal and customizable form of selling, whereas _______ is one of the least personal. a. wholesaling; automatic vending b. telemarketing; direct-response marketing c. direct selling; in-store retailing d. online retailing; catalog marketing e. direct selling; automatic vending

e. direct selling; automatic vending

Joseph opened a large electronics store called It's Electric to compete against Best Buy. After many years of success, Joseph decides to grant Kim the right to open her own It's Electric location in exchange for a percentage of total sales. In this case, Kim is a(n) _______. a. category killer b. department store c. off-price retailer d. franchisor e. franchisee

e. franchisee

When retailers use multiple distribution channels to complement their stores with catalogs, apps, or websites, they are using _______. a. scrambled merchandising b. retail discounting c. multichannel distribution d. digital retailing e. multichannel retailing

e. multichannel retailing

Cardinal Health, based in Dublin, Ohio, specializes in the distribution of pharmaceuticals and medical products. It recently completed a transaction where it provided a national hospital chain with a new supply of pharmaceuticals used to help control pain after surgery. Cardinal Health is engaging in _______. a. warehousing b. retailing c. manufacturing d. direct marketing e. wholesaling

e. wholesaling