Marketing Chapter 11
Which of the following statements is true of shopping centers?
Shopping centers are groups of retail businesses built on a site that is planned, developed, owned, and managed as a unit.
GameStop, a video game retailer, offers a deep assortment of video games and video game consoles. GameStop is best described as a(n) ________.
specialty store
Which of the following statements is true of retailing?
Services like hotels, banks, airlines, restaurants, colleges, and hospitals can be retailed.
________ refers to using point-of-purchase promotions and advertising to extend brand equity to "the last mile" and encourage favorable point-of-purchase decisions.
Shopper marketing
Which type of retailer typically carries deep product assortments of narrow product lines?
specialty stores
Which of the following is an impact of the Great Recession on retailing trends?
tighter consumer spending patterns
________ represent buyers or sellers on a more permanent basis than brokers.
Agents
A convenience store ________.
carries a limited line of high-turnover goods for consumer self-service
________ refer to two or more outlets that are commonly owned and controlled.
Corporate chains
________ refer to retailers that sell standard merchandise at lower prices by accepting lower margins and selling higher volume.
Discount stores
Jacob Kendler works in a wholesale business which specializes in industrial goods needed in automobile industries. Jacob's job involves locating and contacting potential buyers and sellers and facilitating the negotiation process. Which of the following, if true, would strengthen the argument that Jacob works as an agent and not as a merchant wholesaler?
Jacob represents his company but is not liable for any damaged or low-quality goods.
________ are the largest group of wholesalers and can be divided into two broad types of wholesalers: full-service and limited-service.
Merchant wholesalers
________ have filled the ultralow-price, high-volume gap by buying at less-than-regular wholesale prices and charging consumers less than retail.
Off-price retailers
Campbell is one of the oldest retailers in the country. While the service offered at Campbell is fairly mediocre, the retailer is famous for its surprise offerings of seconds, overstocks, and closeouts-occasionally including expensive gadgets and jewelry. Posco, a new chain of retail stores, offers products that are similar to Campbell's offerings; however, Posco is known for encouraging customers to ask questions and for providing service representatives to assist customers in the purchasing decision process. From this scenario, which of the following statements is most likely true?
Posco better utilizes the services mix to differentiate itself from Campbell.
________ refers to the activities involved in selling products or services directly to final consumers for their personal, nonbusiness use.
Retailing
Which of the following is true about trends in wholesaling?
The demand for lower prices and higher quality has increased.
________ are off-price retailers that operate in huge facilities offering few frills but ultra-low prices and surprise deals on selected branded merchandise.
Warehouse clubs
________ includes all the activities involved in selling goods and services to those buying them for resale or business use.
Wholesaling
Wholesalers most likely discourage less-profitable customers by ________.
adding service charges to small purchase orders
A ________ brings buyers and sellers together and assists in negotiations.
broker
Pawz is a larger retailer that specializes in pet products and services such as pet food, accessories, grooming, toys, and medical treatment. Pawz also has animals available for adoption at all of its many stores located across the nation. Pawz is most likely an example of a ________.
category killer
Which term refers to a giant specialty store with a very deep assortment of a particular product line?
category killer
A ________ contains between 15 and 50 retail stores, including a department or variety store, a supermarket, specialty stores, professional offices, and sometimes a bank.
community shopping center
For a retailer to be able to differentiate from competitors and match target shoppers' expectations, the retailer's product assortment should most likely be ________.
constituted by national brands on which the store holds exclusive rights
Jones & Company, a major retail chain across the United States, offers a wide range of consumer goods such as clothing, furniture, home appliances, cosmetics, jewelry, and food. Jones & Company is best described as a ________.
department store
When compared to merchant wholesalers, brokers and agents ________.
do not take title to goods
Venture Zone, a hiking and climbing equipment retailer, has a rock climbing wall inside the store so that consumers can test products prior to purchase. Venture Zone most likely differentiates itself from its competitors through ________.
experiential retailing
An off-price retailing operation that is owned and operated by a manufacturer and normally carries the manufacturer's surplus, discontinued, or irregular goods is called a ________.
factory outlet
Dina loves branded apparel and accessories but cannot afford to buy them too often. Fortunately, Dina lives close to an off-price retail store that is owned and operated by a famous brand. The company utilizes this store to sell its surplus, discontinued, or irregular goods at significantly lower costs. The retail store is best referred to as a ________.
factory outlet
Rhonda recently entered into a contractual agreement with StellarCutz, a national chain of affordable, walk-in hair salons. Under the agreement, Rhonda uses the StellarCutz trade name and receives support from StellarCutz in terms of business methods and processes. Rhonda paid a start-up fee to StellarCutz and will pay annual licensing fees for the use of the StellarCutz brand. Which of the following best describes Rhonda's business?
franchise
Which contractual system is distinguished by the fact that it is normally based on some unique product or service?
franchise
McPherson's, an ice cream retailer, recently entered into an agreement that allows independent businesspeople at select stores and locations across the country to sell its famous ice creams and milk shakes for a monetary consideration. Which type of contractual retail association is described in the above example?
franchise organization
Customers at Carat, a premium jewelry store, are encouraged to make an appointment before a visit so that a customer service representative is assigned to them. These representatives help every customer make a purchase that meets his or her needs and budget after considering numerous options. The different styles and special features of the jewelry are explained to each customer to aid the purchase decision. In this case, Carat is an example of a(n) ________.
full-service retailer
Flax is a chain of stores that carries several product lines including clothing, home furnishings, and household appliances. Each line is operated as a separate department, and employees are available to assist and advise customers in every phase of the shopping process. Flax is most likely a ________.
full-service retailer
Which types of stores are characterized by specialty goods for which customers need assistance and higher operating costs that are passed along to customers as higher prices?
full-service stores
The Toby's chain of first-class department stores carries a wide range of product lines, including clothing, jewelry, kitchenware, and home furnishings. Toby's typically charge higher prices on an everyday basis and then holds frequent sales and price promotions to increase store traffic. Toby's most likely uses ________.
high-low pricing
Allstocks.com is an online retailer that buys furniture, clothing, electronics, and more from a variety of producers at less-than-regular wholesale prices. Allstocks then charges customers less than retail. Allstocks is an example of a(n) ________.
independent off-price retailer
According to the text, today's large and progressive wholesalers have successfully reacted to rising costs by ________.
investing in information technology systems
A ________ is a small open-air mall with upscale stores, convenient locations, and nonretail activities such as a playground, dining establishments, and a movie theater.
lifestyle center
Stores that provide moderate sales assistance because they carry shopping goods about which customers need a moderate level of information are called ________ retailers.
limited-service
Wayne Wholesaling fulfills many channel functions for its customers. The company mainly focuses on helping retailers to train their salespeople, improve store layouts, and set up inventory control systems. Based on this description, which channel function is provided by Wayne Wholesaling?
management services and advice
C & G Retail, a chain of local supermarkets, procures all its goods directly from the producers' factories. This type of wholesaling is usually done in ________.
manufacturers' offices
Hamilton Wholesaling, an electronics wholesaling firm, provides many services to customers including buying, storing, and transporting expensive and delicate electronics equipment. Hamilton takes title of ownership to all goods that the firm handles. Hamilton is most likely a(n) ________.
merchant wholesaler
Specialty stores are characterized by ________.
narrow product lines with deep assortments
Barry's is a chain of retail stores that stocks a large variety of goods and practices high-low pricing. This means that Barry's is likely to ________.
offer numerous sales or discounts
Carleese, a leading fashion brand, sets up small temporary boutiques across numerous locations during its year-end sale, promoting its outdated products at half the price. These temporary boutiques are referred to as ________.
pop-up stores
Power centers are characterized by the ________.
provision of individual entrances to each store
Retail convergence most likely leads to ________.
reduced differentiation
What is most likely the first major marketing decision that a retailer must take?
segmentation
Which wholesaler channel function is demonstrated when a wholesaler's sales force helps a manufacturer reach many small customers at a low cost?
selling and promoting
A ________ refers to a group of retail businesses built on a site that is planned, developed, owned, and managed as a unit.
shopping center
Checking out products in traditional stores and purchasing them online is referred to as ________.
showrooming
Which type of store is much larger than a regular supermarket and offers a large assortment of routinely purchased food products, nonfood items, and services?
superstores
JP Wholesalers is one of the largest wholesalers of wooden furnishings in the country. Recently, the company opened a chain of stores called JP Designer Homes that has become popular due to the good reputation the company has as a wholesaler. The company has now started acquiring smaller retail chains and consolidating its position in the market. Which of the following trends is reflected in this scenario?
the blurring of distinctions between retailers and wholesalers
Which of the following channel functions of wholesalers is demonstrated when a buyer receives quicker delivery because wholesalers are located closer than are producers?
transportation
Which term refers to a wholesaler-sponsored group of independent retailers that engages in group buying and common merchandising?
voluntary chain
Which of the following is a type of off-price retailer?
warehouse club
Which wholesaler channel function helps reduce the inventory holding costs and risks of suppliers and customers?
warehousing
Which of the following conditions increases the chances of a retailer opting to be categorized as a self-service retailer?
when customers are willing to conduct their own locate-compare-select process
Department stores are most likely characterized by ________.
wide varieties of product lines