Chapter 16

Wholesalers sell to all of the following EXCEPT
a. manufacturers.
b. industrial users.
c. consumers.
d. businesses.
e. Retailers.
c. consumers.
Retailers in expensive resort areas often find it difficult to hire quality salespeople. In a situation like this, retailers should consider augmenting or even replacing the sales and customer service functions with
a. variable pricing strategies.
b. continuous use of promotions.
c. expanded hours of operation.
d. special attention to product placement in their stores.
e. in-store kiosks or self-checkout lanes.
e. in-store kiosks or self-checkout lanes.
Bertone’s Office Supplies has decided to branch out from its existing stores. It plans to start sending out a catalog and to sell its products online. Bertone’s is adopting:
a. selective distribution.
b. an extreme value strategy.
c. a multichannel strategy.
d. a service retailing philosophy.
e. exclusive distribution.
c. a multichannel strategy.
Which of the following strategies is designed to place products in as many outlets as possible?
a. exclusive distribution
b. surplus distribution
c. contractual distribution
d. intensive distribution
e. selective distribution
d. intensive distribution
__________ distribution intensity helps a seller to maintain a particular image and control the flow of merchandise into an area.
a. Selective
b. Collective
c. Intensive
d. Variable
e. Endogenous
a. Selective
Natalie represents a manufacturer who makes unique, high-end hats. When making a recommendation about potential retail partners, what should be Natalie’s first consideration?
a. How likely is it for certain retailers to carry this product?
b. What is the appropriate advertising strategy?
c. What assortment of products will customers want?
d. When will customers want this product?
e. What prices will customers be willing to pay?
a. How likely is it for certain retailers to carry this product?
As a type of retailer, category specialists are fierce competitors using
a. highly trained personnel throughout the stores.
b. a complete assortment in a specific category at low prices.
c. a broad assortment of merchandise.
d. highly attractive loyalty programs.
e. a limited but complementary merchandise assortment.
b. a complete assortment in a specific category at low prices.
Carol’s Studio, located in a shopping mall, offers Zumba dance classes for all ages. Carol’s Studio is known as a
a. small box specialist.
b. specialty store.
c. service retailer.
d. category specialist.
e. outlet studio.
c. service retailer.
If you’re a manufacturer, and you want to showcase your product in a store that has a narrow but deep selection of merchandise and where sales associates can assist customers with their selections, you’d likely choose
a. an extreme value retailer.
b. a specialty store.
c. a department store.
d. a category specialist.
e. a warehouse club.
b. a specialty store.
Retailers focusing on increasing sales to their best customers are attempting to
a. combat the inroads made by big-box specialty retailers.
b. increase their share of wallet.
c. slay the category killers.
d. compete with off-price retailers.
e. drive their supply chain.
b. increase their share of wallet.
One advantage of a retail store that is NOT shared with an Internet channel is
a. accepting cash payments.
b. offering a greater selection of products.
c. providing meaningful product information.
d. price matching competitors.
e. collecting information about how consumers shop.
a. accepting cash payments.
Because many consumers choose stores based on proximity to their workplaces or homes, great locations are
a. difficult to define.
b. almost always locations next to big box discounters.
c. always situated near supply chain members.
d. a competitive advantage that few rivals can duplicate.
e. more important than great products
d. a competitive advantage that few rivals can duplicate.
How does a retail distribution center supporting a store channel most obviously differ from one supporting an Internet channel?
a. in use of SKU identification
b. in use of CRM technology
c. in speed of order fulfillment
d. in quality of tracking mechanisms
e. in quantity of items shipped
e. in quantity of items shipped
Retailing is defined as the set of business activities that
a. focuses on a firm’s core values.
b. only occurs in brick-and-mortar space.
c. separates wholesaling from manufacturing.
d. focuses on transactions, but not relationships.
e. adds value to products and services sold to final consumers.
e. adds value to products and services sold to final consumers.
For brick-and-mortar retailers, when making decisions regarding place, a key ingredient to success is
a. off-price placement.
b. product placement promotion.
c. private-label merchandise.
d. customer relationship management.
e. convenient locations.
e. convenient locations.
Although it is relatively easy to offer customers Internet options like a FAQ page and an e-mail address to answer questions, some companies are using an interactive approach to address customers’ questions while they are visiting the websites. These firms are using ___________ to provide the customer with enhanced customer service.
Select one:
a. web videos
b. online games
c. EDI
d. vendor-managed inventory
e. online chats
e. online chats
For consumers, shopping in a retail store instead of online offers the unique benefits of participating in a social experience and
a. receiving meaningful product information.
b. receiving personalized offers.
c. viewing a greater selection of products.
d. viewing price matching by competitors.
e. obtaining immediate gratification
e. obtaining immediate gratification
One product strategy used by retailers to differentiate themselves from competitors is
a. the use of private label brands.
b. JIT product delivery.
c. discount pricing.
d. offering brand name merchandise.
e. removing brand labels from their merchandise offerings.
a. the use of private label brands.
_________ offer a limited assortment of general merchandise at very low prices and are often found in lower-rent locations.
Select one:
a. Off-price retailers
b. Extreme value retailers
c. Discount stores
d. Department stores
e. Category specialists
b. Extreme value retailers
The key factor distinguishing retailers from other members of the supply chain is that
a. they sell to customers for their personal use.
b. they use advertising to generate demand.
c. they sell to consumers, businesses, and government.
d. they rarely engage in personal selling.
e. they use marketing to reach consumers.
a. they sell to customers for their personal use.
Bertone’s Office Supplies has large stores resembling warehouse environments, with racks stocked from floor to ceiling with different types of office supplies. Its assortment of office supplies is the largest in town, and their prices are low. Bertone’s is a
a. extreme value retailer.
b. full-line discount retailer.
c. category specialist.
d. off-price retailer.
e. warehouse club.
c. category specialist.
Andy purchased a number of books from Amazon.com, and he learned to trust the recommendations made to him. More than once he was pleasantly surprised at the books and authors he discovered this way. In this case, Amazon.com was creating value for Andy through
a. personalized offerings.
b. interactive offerings.
c. rapid delivery.
d. repeat business.
e. expanded market presence.
a. personalized offerings.
As the old cliché claims, the three most important things in retailing are
a. size, location, and convenience.
b. price, promotion, and place.
c. location, location, and location.
d. before, during, and after the sale.
e. price, price, price.
c. location, location, and location.
Many retail golf stores have driving ranges, some with backdrops showing famous golf courses. These driving ranges allow
Select one:
a. retailers to avoid competition from knock-off products.
b. retailers to improve the shopping experience through an improved product line assortment.
c. customers to try before they buy.
d. customers to increase their share of wallet spending.
e. wholesalers to evaluate promotional discounts.
c. customers to try before they buy.
Bertone’s Office Supplies has decided to branch out from its existing stores. It plans to start sending out a catalog and to sell its products online. Bertone’s is adopting:
Select one:
a. selective distribution.
b. exclusive distribution.
c. a service retailing philosophy.
d. a multichannel strategy.
e. an extreme value strategy.
d. a multichannel strategy.
Retailers address the conflict between consumers wanting or needing only one item and manufacturers wanting to produce and ship in quantity by providing
Select one:
a. discounting.
b. storage.
c. simplicity.
d. extreme value labeling.
e. reciprocity.
b. storage.
If a manufacturer wasn’t happy with either intensive or exclusive distribution, a logical choice, which incorporates some features from both, would be __________ distribution.
Select one:
a. compromise
b. luxury
c. selective
d. evolutionary
e. moderate
c. selective
Distribution intensity is commonly divided into three levels:
Select one:
a. intensive, exclusive, and selective.
b. global, national, and local.
c. primary, secondary, and tertiary.
d. corporate, contractual, and independent.
e. administered, vertical, and independent.
a. intensive, exclusive, and selective.
Heartland Plantation produces organic food products like stone-ground grits and wild rice. The company has limited production capacity and wants to carefully control where its products are sold. Heartland will likely choose __________ distribution intensity.
Select one:
a. exclusive
b. monopolistic
c. luxury
d. variable
e. intensive
a. exclusive
Mira purchased some eyeliner from an Internet-based beauty supply house, and now she often receives online recommendations for other products from the same cosmetics line. These recommendations were probably the result of
Select one:
a. purchases other customers had made that day.
b. products she may have returned to the company.
c. the purchases she had made.
d. items the retailer no longer carries.
e. manufacturer clearances and overruns.
c. the purchases she had made.
Today, __________ dominate supply chains.
Select one:
a. manufacturers
b. wholesalers
c. distributors
d. large retailers
e. government agencies
d. large retailers
Johan owns an oil-change business called Oil Only. He changes oil in cars—and that is all he does. What kind of retail business is this?
Select one:
a. category specialist
b. specialty store
c. off-price retailer
d. extreme value retailer
e. service retailer
e. service retailer
Retailers focusing on increasing sales to their best customers are attempting to
Select one:
a. slay the category killers.
b. drive their supply chain.
c. increase their share of wallet.
d. compete with off-price retailers.
e. combat the inroads made by big-box specialty retailers.
c. increase their share of wallet.
Knowing what customers expect is essential. Retailers need to know which manufacturers their customers prefer, whereas manufacturers need to know
Select one:
a. whether customers are using credit cards or cash to make purchases.
b. whether the products will fill a customer’s self-actualization needs.
c. how many employees the retailers have.
d. where their target customers expect to find their products.
e. whether customers will find the store atmospherics appropriate to the location.
d. where their target customers expect to find their products.
If you were a marketer for a clothing manufacturer and you wanted to improve revenues from irregulars, production overruns, and returns, you would be attracted to using
Select one:
a. supercenters.
b. department stores.
c. specialty stores.
d. category specialists.
e. off-price retailers.
e. off-price retailers.
Many retail golf stores have driving ranges, some with backdrops showing famous golf courses. These driving ranges allow
Select one:
a. customers to increase their share of wallet spending.
b. retailers to improve the shopping experience through an improved product line assortment.
c. customers to try before they buy.
d. wholesalers to evaluate promotional discounts.
e. retailers to avoid competition from knock-off products.
c. customers to try before they buy.
How does a retail distribution center supporting a store channel most obviously differ from one supporting an Internet channel?
Select one:
a. in use of CRM technology
b. in quality of tracking mechanisms
c. in speed of order fulfillment
d. in quantity of items shipped
e. in use of SKU identification
d. in quantity of items shipped
Jackie is running errands on Saturday morning. First, she drives through Starbucks for a large latte, stops at the tailor to pick up a dress she had hemmed, and then heads to her manicure appointment. What kind of retailers is Jackie visiting?
Select one:
a. services retailers
b. convenience stores and services retailers
c. convenience stores
d. category specialists and specialty stores
e. category specialists
a. services retailers
__________ offer an inconsistent assortment of brand-name merchandise at low prices.
Select one:
a. Off-price retailers
b. Department stores
c. Category killers
d. Specialty stores
e. Full-line discount stores
a. Off-price retailers
__________ are combating competitive pressures by increasing the amount of exclusive and private label merchandise they sell and expanding their online presence.
Select one:
a. Department stores
b. Extreme value stores
c. Off-price retailers
d. Full-line discount stores
e. Convenience stores
a. Department stores
Today, retailers like Walmart, Home Depot, and Kroger dictate to their suppliers all of the following EXCEPT
Select one:
a. what products should cost.
b. which competitors they should collaborate with.
c. what should be made.
d. how products should be configured.
e. when products should be delivered.
b. which competitors they should collaborate with.
One of the greatest constraints faced by store-based retailers—and one that the Internet channel can address—is
Select one:
a. common zoning restrictions limiting the kinds of merchandise that can be offered for sale.
b. interactive customer service.
c. competition from other retailers.
d. the amount of merchandise that can be carried in a physical store.
e. being price competitive.
d. the amount of merchandise that can be carried in a physical store.
In which of the following categories would a dry cleaning business be placed?
Select one:
a. specialty store
b. superstore
c. services retailer
d. category killer
e. discount store
c. services retailer
The key factor distinguishing retailers from other members of the supply chain is that
Select one:
a. they sell to customers for their personal use.
b. they use marketing to reach consumers.
c. they rarely engage in personal selling.
d. they use advertising to generate demand.
e. they sell to consumers, businesses, and government.
a. they sell to customers for their personal use.
Benefits of the traditional retail store as a channel includes the ability to
Select one:
a. offer an expanded market presence for all consumers.
b. offer a greater selection of products.
c. provide personalized and meaningful product information.
d. efficiently collect information about how consumers shop for a particular product.
e. quickly compare prices across multiple channels.
c. provide personalized and meaningful product information.
__________ offer an inconsistent assortment of brand-name merchandise at low prices.
Select one:
a. Category killers
b. Full-line discount stores
c. Department stores
d. Off-price retailers
e. Specialty stores
d. Off-price retailers
For consumers, shopping in a retail store instead of online offers the unique benefits of participating in a social experience and
Select one:
a. receiving meaningful product information.
b. viewing a greater selection of products.
c. receiving personalized offers.
d. viewing price matching by competitors.
e. obtaining immediate gratification.
e. obtaining immediate gratification.
Although it is relatively easy to offer customers Internet options like a FAQ page and an e-mail address to answer questions, some companies are using an interactive approach to address customers’ questions while they are visiting the websites. These firms are using ___________ to provide the customer with enhanced customer service.
Select one:
a. online chats
b. online games
c. vendor-managed inventory
d. web videos
e. EDI
a. online chats
Paul’s family has owned and operated a small chain of conventional supermarkets for many years. Competition from a variety of other kinds of retailers has adversely affected the business. To address the new competitive reality, Paul wants to apply what he recently learned as a marketing major, and he has recommended that his family’s business should
Select one:
a. eliminate customer frills and extras.
b. emphasize fresh, locally sourced perishables.
c. offer more national brand packaged goods and few perishables.
d. target the broadest possible customer base.
e. offer fewer private label brands.
b. emphasize fresh, locally sourced perishables.
Supercenters have become the fastest growing retail category by combining broad assortments of groceries and general merchandise products. __________ dominates this category with the vast majority of supercenters in the United States.
Select one:
a. Target
b. Kroger
c. Walmart
d. Meijer
e. Kmart
c. Walmart
Heartland Plantation produces organic food products like stone-ground grits and wild rice. The company has limited production capacity and wants to carefully control where its products are sold. Heartland will likely choose __________ distribution intensity.
Select one:
a. luxury
b. intensive
c. variable
d. monopolistic
e. exclusive
e. exclusive
When a manufacturer chooses one or more retailing partners, the overriding consideration must be
Select one:
a. the overall cost to the manufacturer.
b. the satisfaction of the retailing partners.
c. whether customers can participate in mobile commerce.
d. the retailers’ customary distribution intensity.
e. the greatest possible customer convenience and satisfaction.
^e. the greatest possible customer convenience and satisfaction.
Henri wants customers in his specialty tobacco store to feel at home, as if they were in their personal smoking den. He uses lighting, music, and soft chairs to create a look and feel that will get customers to relax and return. Henri is focusing on
Select one:
a. product.
b. place.
c. price.
d. policy.
e. promotion.
e. promotion.
Retailers can gain valuable knowledge about their customers from the transaction process and from
Select one:
a. the insights of store personnel.
b. store brand/private label brand ratios.
c. multichannel flow process.
d. end-of-aisle positioning studies. Incorrect
e. trade industry profiles.
a. the insights of store personnel.
Anbinh Fashions is launching a new line of one-of-a-kind designer jewelry. Each piece is handcrafted, and production volumes will be very low. To emphasize the unique nature of this jewelry, Anbinh Fashions will probably choose _________ distribution.
Select one:
a. intensive
b. monopolistic
c. exclusive
d. luxury Incorrect
e. selective
c. exclusive
__________ can purchase merchandise at one-fifth to one-fourth of the original wholesale prices because they do not ask the suppliers for advertising allowances or markdown adjustments.
Select one:
a. Off-price retailers
b. Specialty stores
c. Drugstores
d. Department stores Incorrect
e. Category specialists
a. Off-price retailers
Andy purchased a number of books from Amazon.com, and he learned to trust the recommendations made to him. More than once he was pleasantly surprised at the books and authors he discovered this way. In this case, Amazon.com was creating value for Andy through
Select one:
a. personalized offerings.
b. rapid delivery.
c. interactive offerings.
d. repeat business.
e. expanded market presence.
a. personalized offerings.
If you’re a manufacturer, and you want to showcase your product in a store that has a narrow but deep selection of merchandise and where sales associates can assist customers with their selections, you’d likely choose
Select one:
a. a category specialist.
b. a specialty store.
c. a department store.
d. a warehouse club.
e. an extreme value retailer.
b. a specialty store.
Internet buyers are sometimes surprised to see online retailers using information about their past purchases to customize promotions targeted to them the next time they visit the retailer’s website. The retailer is using the information to
Select one:
a. shift from a general merchandise retailer to a private-label retailer.
b. increase the share of wallet from its best customers.
c. create traffic in its brick-and-mortar stores.
d. comply with Homeland Security requirements.
e. reward customer loyalty. Incorrect
b. increase the share of wallet from its best customers.
Henri wants customers in his specialty tobacco store to feel at home, as if they were in their personal smoking den. He uses lighting, music, and soft chairs to create a look and feel that will get customers to relax and return. Henri is focusing on
Select one:
a. price.
b. promotion.
c. product.
d. place. Incorrect
e. policy.
b. promotion.
Retailers address the conflict between consumers wanting or needing only one item and manufacturers wanting to produce and ship in quantity by providing
Select one:
a. reciprocity.
b. simplicity. Incorrect
c. extreme value labeling.
d. discounting.
e. storage.
e. storage.
If a manufacturer had a full range of products, in a number of container sizes, which kind of store would the company be LEAST likely to choose as a retailing partner?
Select one:
a. convenience stores
b. conventional supermarket
c. supercenter
d. warehouse club Incorrect
e. full-line discount stores
a. convenience stores
Kohl’s, JCPenney, and Bloomingdales are examples of
Select one:
a. extreme value stores.
b. discount stores.
c. department stores.
d. off-price retailers.
e. category specialist stores.
c. department stores.
Benefits of the traditional retail store as a channel includes the ability to
Select one:
a. quickly compare prices across multiple channels.
b. provide personalized and meaningful product information.
c. offer a greater selection of products. Incorrect
d. offer an expanded market presence for all consumers.
e. efficiently collect information about how consumers shop for a particular product.
b. provide personalized and meaningful product information.
Personal selling is particularly important for retailers selling
Select one:
a. products that are complicated or expensive.
b. discount items.
c. low-cost services.
d. trend or fashion items.
e. online services.
a. products that are complicated or expensive.
Because many consumers choose stores based on proximity to their workplaces or homes, great locations are
Select one:
a. difficult to define.
b. a competitive advantage that few rivals can duplicate.
c. more important than great products.
d. always situated near supply chain members. Incorrect
e. almost always locations next to big box discounters.
b. a competitive advantage that few rivals can duplicate
Which of the following is NOT one of the broad factors manufacturers must consider when establishing a strategy for getting their products into the hands of the ultimate customer?
Select one:
a. developing retail strategy
b. managing a multichannel strategy
c. lowering production costs
d. choosing retail partners
e. identifying types of retailers
c. lowering production costs
The key factor distinguishing retailers from other members of the supply chain is that
Select one:
a. they use marketing to reach consumers.
b. they rarely engage in personal selling. Incorrect
c. they sell to customers for their personal use.
d. they sell to consumers, businesses, and government.
e. they use advertising to generate demand.
c. they sell to customers for their personal use.
__________ are subtle forms of promotion that encourage shopping in retailers’ stores.
Select one:
a. Extreme value offers and specialty share of the wallet programs
b. Quick response and just-in-time delivery systems
c. Store credit cards and gift cards
d. Large stocks of popular national brands
e. Electronic signs
c. Store credit cards and gift cards
Retailing is defined as the set of business activities that
Select one:
a. focuses on a firm’s core values.
b. adds value to products and services sold to final consumers.
c. focuses on transactions, but not relationships. Incorrect
d. separates wholesaling from manufacturing.
e. only occurs in brick-and-mortar space.
b. adds value to products and services sold to final consumers.
If you were a marketer for a clothing manufacturer and you wanted to improve revenues from irregulars, production overruns, and returns, you would be attracted to using
Select one:
a. supercenters.
b. off-price retailers.
c. department stores.
d. specialty stores. Incorrect
e. category specialists.
b. off-price retailers.
Generally, the larger and more sophisticated the channel member, the less likely that it will
Select one:
a. use intensive distribution.
b. rely on marketing research.
c. use multichannel marketing.
d. be concerned about competitive actions. Incorrect
e. use supply chain intermediaries.
e. use supply chain intermediaries.
Paul’s family has owned and operated a small chain of conventional supermarkets for many years. Competition from a variety of other kinds of retailers has adversely affected the business. To address the new competitive reality, Paul wants to apply what he recently learned as a marketing major, and he has recommended that his family’s business should
Select one:
a. eliminate customer frills and extras.
b. emphasize fresh, locally sourced perishables.
c. offer more national brand packaged goods and few perishables.
d. offer fewer private label brands.
e. target the broadest possible customer base.
b. emphasize fresh, locally sourced perishables.