CH05 Retail institutions by store-based strategy mix

Question 1

strategy mix (p. 111)

Answer 1

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

Question 2

destination retailer (p. 111)

Answer 2

where consumers view the company as distinctive enough to be loyal to it and go out of their way to shop their

Question 3

wheel of retailing (p. 111)

Answer 3

figure 5-1
retail innovators often first appear as low-price operators with low costs and low profit margin requirements. over time, the innovators upgrade the products they carry and improve their facilities and customer service, and prices rise

Question 4

scrambled merchandising (p. 113)

Answer 4

when a retailer adds goods and services that may be unrelated to each other and to the firm’s original business
eg. sweaters in a shoe store

Question 5

retail life cycle (p. 114)

Answer 5

states that retail institutions–like the goods and services they sell–pass through identifiable life stages: intro, growth, maturity, and decline

Question 6

mergers (p. 116)

Answer 6

involve the combination of separately owned retail firms

Question 7

diversification (p. 116)

Answer 7

retailers become active in businesses outside their normal operations, by adding stores in different goods/service categories

Question 8

downsizing (p. 117)

Answer 8

when unprofitable stores are closed or divisions are sold off by retailers unhappy with parformance

Question 9

convenience store (p. 119)

Answer 9

• a small, well-located, food-oriented retailer that is open long hours and carries a moderate number of items at above-average prices
• average atmosphere and customer service

Question 10

supermarket (p. 119)

Answer 10

a self-service food store with grocery, meat, and produce departments and a minimum annual sales of $2 million

Question 11

conventional supermarket (p. 120)

Answer 11

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

Question 12

food-based superstore (p. 120)

Answer 12

larger and more diversified than a conventional supermarket but usually smaller and less diversified that a combination store

Question 13

combination store (p. 121)

Answer 13

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

Question 14

supercenter (p. 121)

Answer 14

a combo store blending an economy supermarket with a discount department store

Question 15

hypermarket (p. 121)

Answer 15

• a very large store with a wide range of goods and a large parking lot, typically situated outside a town
• the European institution that did not succeed in the states

Question 16

box (limited-line) store (p. 121)

Answer 16

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

Question 17

warehouse store (p. 122)

Answer 17

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

Question 18

specialty store (p. 122)

Answer 18

-concentrates on selling one type of goods or service line
- eg. young women’s apparel

Question 19

category killer (power retailer) (p. 123)

Answer 19

• aka power retailer
• a large store, typically one of a chain, which specializes in a particular type of discounted merchandise and becomes the dominant retailer in that category
• eg. walmart, what amazon is trying to do

Question 20

department store (p. 123)

Answer 20

• a large retail unit with an extensive
  assortment (width and depth) of goods and services that is organized into separate departments
  for purposes of buying, promotion, customer service, and control
• eg. hudson’s bay

Question 21

traditional department store (p. 124)

Answer 21

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

Question 22

full-line discount store (p. 125)

Answer 22

offers a wide range of products like a department store but sells them at lower prices by purchasing in bulk and selling over an extended period

Question 23

variety store (p. 125)

Answer 23

handles an 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 24

off-price chain (p. 126)

Answer 24

features brand-name (sometimes designer) apparel and accessories, footwear (primarily women’s and family), linens, fabrics, cosmetics, and/or house-wares and sells them at everyday low prices in an efficient, limited-service environment

Question 25

factory outlet (p. 127)

Answer 25

a manufacturer-owned store that sells closeouts, discontinued merchandise, irregulars, canceled orders, and sometimes in-season, first-quality merch

Question 26

membership (warehouse) club (p. 127)

Answer 26

• straddles the line between wholesaling and retailing; it appeals to price-conscious consumers, who must be members to shop
  there
• eg. costco

Question 27

flea market (p. 128)

Answer 27

• many retail vendors sell a range of products at discount prices in plain surroundings
• marche aux puces st. eustache