Ch. 11 Retailing and Wholesaling

Question 1

Retailing

Answer 1

All the activities involved in selling goods or services directly to final consumers for their personal, nonbusiness use.

Question 2

Retailer

Answer 2

A business whose sales come primarily from retailing.

Question 3

Shopper marketing

Answer 3

Using point-of-sale promotions and advertising to extend brand equity to “the last mile” and encourage favorable in-store purchase decisions.

Question 4

Specialty store

Answer 4

A retail store that carries a narrow product line with a deep assortment within that line.

Question 5

Department store

Answer 5

A retail store that carries a wide variety of product lines, each operated as a separate department managed by specialist buyers or merchandisers.

Question 6

Supermarket

Answer 6

A large, low-cost, low-margin, high-volume, self-service store that carries a wide variety of grocery and household products.

Question 7

Convenience store

Answer 7

A small store, located near a residential area, that is open long hours seven days a week and carries a limited line of high-turnover convenience goods.

Question 8

Superstore

Answer 8

A store much larger than a regular supermarket that offers a large assortment of routinely purchased food products, nonfood items, and services.

Question 9

Category Killer

Answer 9

A giant specialty store that carries a very deep assortment of a particular line.

Question 10

Service retailer

Answer 10

A retailer whose product line is actually a service; examples include hotels, airlines, banks, colleges, and many others.

Question 11

Discount store

Answer 11

A retail operation that sells standard merchandise at a lower prices by accepting lower margins and selling at higher volume.

Question 12

Off-price retailer

Answer 12

A retailer that buys at less-than-regular wholesale prices and sells at less than retail.

Question 13

Independent off-price retailer

Answer 13

An off-price retailer that is either independently owned and run or is a division of a larger retail corporation.

Question 14

Factory outlet

Answer 14

An off-price retailing operation that is owned and operated by a manufacturer and normally carries the manufacturer’s surplus, discontinued, or irregular goods.

Question 15

Warehouse club

Answer 15

An off-price retailer that sells a limited selection of brand name grocery items, appliances, clothing, and other goods at deep discounts to members who pay annual membership fees.

Question 16

Corporate chains

Answer 16

Two or more outlets that are commonly owned and controlled.

Question 17

Franchise

Answer 17

A contractual association between a manufacturer, wholesaler, or service organization (a franchisor) and independent businesspeople (franchisees) who buy the right to own and operate one or more units in the franchise system.

Question 18

Shopping center

Answer 18

A group of retail businesses built on a site that is planned, developed, owned, and managed as a unit.

Question 19

Wheel-of-retailing concept

Answer 19

A concept that suggests new types of retailers usually begin as low-margin, low-price, low-status operations but later evolve into higher-priced, higher-service operations, eventually becoming like the conventional retailers they replaced.

Question 20

Wholesaling

Answer 20

All the activities involved in selling goods and services to those buying for resale or business use.

Question 21

Wholesaler

Answer 21

A firm engaged primarily in wholesaling activities.

Question 22

Merchant wholesaler

Answer 22

An independently owned wholesale business that takes title to the merchandise it handles.

Question 23

Broker

Answer 23

A wholesaler who does not take title to goods and whose function is to bring buyers and sellers together and assist in negotiation.

Question 24

Agent

Answer 24

A wholesaler who represents buyers or sellers on a relatively permanent basis, performs only a few functions, and does not take title to goods.

Question 25

Manufacturers’ sales branches and offices

Answer 25

Wholesaling by sellers or buyers themselves rather than through independent wholesalers.