Ch. 10

Question 1

Box (Limited-Line) Store

Answer 1

food-based discounter that focuses on a small selection of items, moderate hours of operation, few services, and limited manufacturer brands

Question 2

Category Killer (Power Retailer)

Answer 2

very large specialty store featuring an enormous selection in its product category and relatively low prices. It draws consumers from wide geographic areas

Question 3

Combination Store

Answer 3

unites supermarket and general merchandise sales in one facility, with general merchandise typically accounting for 25 to 40 percent of total sales

Question 4

Convenience Store

Answer 4

well-located food-oriented retailer that is open long hours and carries a moderate number of items

Question 5

Conventional Supermarket

Answer 5

departmentalized food store with a wide range of food and related products; sales of general merchandise are rather limited

Question 6

Department Store

Answer 6

large store with an extensive assortment (Width and depth) of goods and services that has separate departments for purposes of buying, promotion, customer service, and control

Question 7

Destination Retailer

Answer 7

firm that consumers view as distinctive enough to become loyal to it. Consumer go out of their way to shop there

Question 8

Diversification

Answer 8

way in which retailers become active in business outside their normal operations – and add stores in different goods/services categories

Question 9

Downsizing

Answer 9

unprofitable stores closed or divisions sold off by retailers unhappy with performance

Question 10

Factory Outlet

Answer 10

manufacturer-owned store selling its closeouts, discontinued merchandise, irregulars, cancelled orders, and sometimes, in-season, first-quality merchandise

Question 11

Flea Market

Answer 11

location where many vendors offer a range of products at discount process in plain surrounding. Many flea markets are located in nontraditional sites not normally associated with retailing

Question 12

Food-Based Superstore

Answer 12

retailer that is larger and more diversified than a conventional supermarket but usually smaller and less diversified than a combination store. It caters to consumers’ complete grocery needs and offers them the ability to buy fill-in general merchandise

Question 13

Full-Line Discount Store

Answer 13

type of department store with a broad, low-priced product assortment; all of the range of products expected at department stores; centralized checkout service; self-service; private-brand nondurables and well-known manufacturer-brand durables; less fashion-sensitive merchandise; relatively inexpensive building, equipment, and fixtures; and less emphasis on credit

Question 14

Hypermarket

Answer 14

combination store pioneered in Europe that blends an economy supermarket with a discount department store. It is even larger than a supercenter

Question 15

Membership (Warehouse) Club

Answer 15

appeals to price-conscious consumers, who must be members to shop

Question 16

Mergers

Answer 16

the combinations of separately owned retail firms

Question 17

Off-Price Chain

Answer 17

features brand-name apparel and accessories, footwear, linens, fabrics, cosmetics, and/or housewares and sells them at everyday low prices in an efficient, limited-service environment

Question 18

Retail Life Cycle

Answer 18

theory asserting that institutions – like the goods and services they sell – pass through identifiable life stages: introduction (early growth), growth (accelerated development), maturity, and decline

Question 19

Scrambled Merchandising

Answer 19

occurs when a retailer adds good and services that may be unrelated to each other and to the firm’s original business

Question 20

Specialty Store

Answer 20

retailer that concentrates on selling one goods or service line

Question 21

Strategy Mix

Answer 21

firm’s particular combination of store location, operating procedures, goods/services offered, pricing tactics, store atmosphere and customer services, and promotional methods

Question 22

Supercenter

Answer 22

combination store blending an economy supermarket with a discount department store

Question 23

Supermarket

Answer 23

self-service food store with grocery, meat, and produce departments and minimum annual sales of $2 million. The category includes conventional supermarkets, food-based superstores, combination stores, box (limited-line) stores, and warehouse stores

Question 24

Traditional Department Store

Answer 24

type of department store in which merchandise quality ranges from average to quite good, pricing is moderate to above average, and customer service ranges from medium levels of sales help, credit, delivery, and so forth to high levels of each

Question 25

Variety Store

Answer 25

outlet that handles a wide assortment of inexpensive and popularly priced goods and services, such as apparel and accessories, costume jewelry, notions and small wares, candy, toys, and other items in the price range

Question 26

Warehouse Store

Answer 26

food-based discounter offering a moderate number of food items in a no-frills setting

Question 27

Wheel Of Retailing

Answer 27

theory stating that retail innovators often first appear as low-price operators with low costs and low profit margins. Over time, they upgrade the products carried and improve facilities and customer services. They then become vulnerable to new discounters with lower cost structures