Smartbook CH 14 & 17

When firms compete by lowering price at retail, they are engaged in ______.

a price war

Which of the following types of stores has over half of its sales coming from pharmaceuticals?

drugstores

When there are many firms competing for customers in a given market, but the products are differentiated, it is known as ______.

monopolistic competition

Firms engage in price wars to ______.

preserve their market share

The contribution per unit is the_____________ minus the variable cost per unit.

price

______ is important for the manufacturer and retailer to consider when determining how to position a brand and the products that fall under the brand.

price

One way to facilitate a smart retail strategy is to use the ________

6 p's

Which of the following refers to the controllable characteristics of a store related to presentation?

Atmosphere

To determine how much integration is best, each retailer must address issues such as which of the following? (Select all that apply.)

Brand image Supply chain Integrated CRM Pricing

What retailer offers a narrow but deep assortment of merchandise?

Category specialists

Which of the following is a retail format that carries a broad variety and deep assortment of merchandise, offers customer services, and organizes their facilities into distinct departments for displaying certain product types?

Department stores

A manufacturer of clothing apparel currently sells its products at Neiman Marcus and Dillard's. A new survey shows that a majority of its customers now expect to find its products at Neiman Marcus, Macy's, and Saks Fifth Avenue but relatively few customers expect to find the products at Dillard's or Marshalls. If the manufacturer acts on its customers' expectations, what action would it take in regard to its retail partnerships?

Drop Dillard's and add Macy's and Saks FIfth Avenue.

Which of the following stores might offer food items as a way of responding to pressure to reduce health care costs?

Drugstore

Which of the following statements about service retailers are true? (Select all that apply.)

Examples include health clubs and dry cleaners. They are a large part of the retail industry. They primarily sell services rather than merchandise.

Which of the following do you need to know to calculate target return price? (Select all that apply.)

Expected unit sales Variable costs Fixed costs

Walmart and Target, which offer a broad variety of merchandise, limited service, and low prices, are examples of which of the following type of retailers?

Full-line discount stores

Amazon.com is an Internet channel that consumers use to purchase a wide variety of products. Which of the following aspects of Amazon.com are advantages it has over the store channel? (Select all that apply.)

Greater selection of products Greater ability to collect information about consumer shopping behavior Greater personalized information

The competition in food retailing could best be characterized as which of the following?

Highly competitive

One advantage of using the ______ channel over the ______ channel is the much higher probability of having a deeper assortment of merchandise available.

Internet; retail

Which of the following is true of the Internet channel compared to the store and catalog channels?

It helps retailers offer a greater variety of products.

Which of the following is true of the supply chain of an omnichannel retailer?

It often includes multiple distribution centers.

Which of the following are part of the atmosphere of a store? (Select all that apply.)

Lighting Music

Channel members include which of the following?

Manufacturers, retailers, wholesalers

To stay competitive with other types of food retailers, conventional supermarkets have employed a number of different strategies. Which of the following is NOT a common strategy that many conventional supermarkets have adopted?

Offer an athletic shoe department

Which of the following does an integrated CRM facilitate? (Select all that apply.)

Targeting future promotions Handling customer complaints Expediting returns

Which of the following is an example of monopolistic competition? (Monopolistic competition is NOT a monopoly.)

The apparel industry, with many providers that seek ways to differentiate themselves and claim market share

Which of the following is an example of an oligopoly?

The oil industry, with a limited number of providers

Which of the following is true of online grocers and the items they sell?

They tend to sell more lower-profit-margin items.

Why might firms engage in a price war?

To compete by lowering prices

How do managers use break-even analysis?

To find a production quantity where, for a given price, costs are equal to revenues

True or false: The general price range of the products offered by a retailer helps define its image.

True

Category specialists, or category killers, are ______ stores that offer a narrow but deep assortment of merchandise, where assistance is typically only found in certain areas of the store.

big-box

Guitar Center reinforces its image of selling high-quality musical equipment in its stores and catalogs and on its website. This is an example of providing a consistent ______ across all channels.

brand image

The point at which the number of units sold generates enough revenue to equal total costs is known as ______.

break-even point

The five Cs of pricing include ______.

channel members

One of the five Cs of pricing is ______.

competition

The five Cs of pricing are company objectives, customers, cost, channel members, and ____________.

competitors

Whereas a(n) ______ supermarket is likely to carry around 30,000 SKUs at any given time, a(n) ______ food retailer will only stock around 1,500 SKUs in order to reduce costs and maximize efficiency.

conventional; extreme-value

Retailers like Dollar General fall into the category of ______ stores. By contrast, retailers like Macy's are considered ______ stores.

extreme-value; department

True or false: Omnichannel retailers price items the same regardless of channel.

false

Customers do not expect ______ products in full-line discount stores.

higher-end

Category specialists are also called category ______ because of their ability to offer a complete assortment in a category at somewhat lower prices than competing store types, such as a full-line discount store.

killers

Generally, the ______ and more sophisticated a firm is, the ______ likely it will be to use supply chain intermediaries.

large, less

Which of the following is another term for target return percentage?

markup

In many geographic areas, utilities such as water and electricity are available from only one provider. This is an example of a level of competition called a(n) ______.

monopoly

When only a few firms dominate a market, it is known as ______ competition.

oligopolistic

If a firm has been accused of opening stores in new communities with artificially low prices, set for the sole purpose of driving competing stores in the area out of business, this type of behavior is called ______ pricing.

pedartory

If a manufacturer instructs a retailer on how to use a newly released product, this would be an example of the manufacturer getting involved with which of the following six Ps?

personal

Brookstone is a retailer known for opening stores in airports, where they have a captive market. This is an example of employing which of the following six Ps to one's competitive advantage?

place

One strategy that Starbucks uses is opening stores in areas where competing coffee shops would have little chance of staying competitive with Starbucks. What Starbucks is essentially doing is saturating the market, a strategy that falls under ______ within the six Ps framework.

place

In omnichannel marketing, customers expect ______ consistency for the same SKU across channels.

pricing

Which of the following are ways in which retailers help satisfy customers' needs regarding product? (Select all that apply.) They provide ________.

products in the quantities their customers wish to buy. a mix of services relating to the products they sell. an assortment of products geared toward their target market.

When a retailer advertises using newspapers, magazines, television, and social media, the retailer is using

promotion

A manufacturer will seek out partnerships with ________ who will sell the manufacturer's products and/or services to the final consumers. (Remember to type only one word in the blank.)

retail

Adding value to products and services sold to consumers for personal or family use is known as_______

retailing

Personalized ______ refers to ways in which the firm literally helps the consumer during the online shopping experience, personalized ______ refers to how the firm tailors the website for the consumer based on past shopping patterns.

service; offerings

Omnichannel retailers ______ provide an integrated shopping experience across all their channels.

struggle

Stores such as Walmart, Fred Meyer, and SuperTarget are a combination of supermarkets and full-line discount stores. These are known as ______.

supercenters

The role of the retailer is to help ______.

the consumer and manufacturer

Price times quantity is ______.

total revenue

Total cost is ______.

variable costs plus fixed costs

Which of the following is NOT a type of retailer that falls under the general merchandise retailing category?

wholesale