Chapter 17

The set of business activities that adds value to products and services sold to consumers for their personal or family use is referred to as
retailing.
When developing strategies for working with retailers, manufacturers must consider whether they should sell in more than one outlet (e.g., store, catalog, and Internet). Which of the following factors for establishing a relationship with retailers deals with this?
Determining whether or not to use an omnichannel strategy
In thinking about the channel structure, the level of difficulty a manufacturer experiences in getting retailers to purchase its products is determined by all of the following except
the degree to which the channel is horizontally integrated.
When choosing retail partners, a high-end cosmetics manufacturer like Estée Lauder would most likely not choose to sell to CVS or Dollar General due to
customer expectations.
Generally, the _____ and _____ sophisticated the channel member, the less likely that it will use supply chain intermediaries.
larger; more
Distribution intensity is commonly divided into three levels. What are they?
Intensive, exclusive, and selective
If Kleenex produced a new, eco-friendly personal-sized package of tissues, which it intended to get into as many retail outlets as possible, it should choose _____ distribution strategy.
an intensive
Luxury goods firms such as Coach use _____ distribution strategy to limit sales to one or only a few select, higher-end retailers in each region, because selling its product in full-line discount stores or off-price retailers would weaken its image.
an exclusive
_____ distribution helps a seller maintain a particular image and control the flow of merchandise into an area which makes this approach attractive to many shopping goods manufacturers, such as most apparel items, home items like branded pots and pans or sheets and towels, branded hardware and tools, and consumer electronics.
Selective
Which of the following food retailers is a self-service retail food store offering groceries, meat, and produce with limited sales of nonfood items?
Conventional supermarket
Offering a one-stop shopping convenience to customers, _______ combine a supermarket with a full-line discount store.
supercenters
Which of the following firms operates more than 3,000 supercenters in the United States accounting for the vast majority of total supercenter sales—far outpacing its competitors?
Walmart
_____ are large retailers (100,000 to 150,000 square feet) that offer a limited and irregular assortment of food and general merchandise, little service, and low prices to the general public and small businesses.
Warehouse clubs
Walmart, Target, and Kmart offer a broad variety of merchandise, limited service, and low prices, which would classify them as
full-line discount stores.
_____ tailor their retail strategy toward very specific market segments by offering deep but narrow assortments and sales associate expertise.
Specialty stores
Which of the following falls into the category of being a general merchandise retailer?
Category specialist
Dollar General and Family Dollar stores are small, full-line discount stores that offer a limited merchandise assortment at very low prices, so they would be classified as
extreme value retailers.
_______ offer an inconsistent assortment of brand name merchandise at a significant discount from the manufacturer’s suggested retail price.
Off-price retailers
Which of the following would qualify as being a service retailer?
A health spa
A brand that is developed by a national brand vendor, often in conjunction with a retailer, and is sold exclusively by the retailer is referred to as
an exclusive brand.
Retailers may modify product, price, and/or promotion to attempt to increase their _____, which is the percentage of the customer’s purchases made from that particular retailer.
share of wallet
The old cliché claiming the three most important things in retailing are “location, location, location” corresponds to which of the following components of the retail strategy?
Place
Which of the following is considered the greatest advantage offered to consumers by brick-and-mortar stores compared to online shopping?
Being able to use all five of their senses
Salespeople can be particularly helpful when purchasing a(n) _____ product.
complicated
When customers purchase merchandise in stores, the physical presence of the store _____ their perceived risk of buying and _____ their confidence that any problems with the merchandise will be corrected.
reduces; increases
Stores are limited by their _____, which is generally not an issue when shopping on the Internet.
size
Offering live, online chat options to shoppers is a way of increasing the value of online shopping because it provides
personalized customer service.
Although the number of their physical stores is limited, L.L.Bean is widely known for offering unique, high-quality merchandise. Adding an Internet channel was particularly attractive because it allowed the company to _____ without having to build new stores.
expand its market presence
Patagonia reinforces its image of selling high-quality, environmentally friendly sports equipment in its stores, catalogs, and website. Which of the following omnichannel challenges has Patagonia overcome by emphasizing function, not fashion, in the descriptions of its products in all of its channels?
Brand image
Both Walmart and JCPenney initially had separate organizations for their Internet channel but subsequently integrated them with stores and catalogs to address the _____ challenge of omnichannel retailing.
supply chain