Chap 15**

Question 1

When did discount stores (Target, Walmart) show up in the market?

Answer 1

1950s

Question 2

What is the hypothesis that each new type of retailer gains a competitive foothold by offering lower prices than current suppliers charge, the result of reducing or eliminating services?

Answer 2

Wheel of retailing

Question 3

What is the basis of developing retail strategy?

Answer 3

• Selecting target market

- Developing retailing mix to satisfy the chosen market

Question 4

What are things to consider in selecting a target market?

Answer 4

• size of market
• profit potential of the market
• level of competition
• Demo, psycho and geographic factors

Question 5

What are things to consider when developing merchandise mix?

Answer 5

• Needs and preferences
• Competitive environment
• Overall profitability of each product line and category

Question 6

What does SKU stand for? (offering within a product line)

Answer 6

stock-keeping unit

Question 7

What are nonrefundable fees grocery retailers receive from manufacturers to secure shelf space for new products?

Answer 7

slotting allowances

Question 8

Things to consider for developing customer service

Answer 8

• attracting and retaining target customers to increase sales and profits
• services that retailers provide
  .comp coffee, restrooms, child care

Question 9

Price strategy?

Answer 9

• prices reflect a retailers marketing objectives and policies

Question 10

What is a markup?

Answer 10

amount a retailer adds to the cost of a product to determine its selling price

Question 11

What is a markdown?

Answer 11

amount by which a retailer reduces the original selling price of a product

Question 12

Depend on what factors is location strategy developed?

Answer 12

• type of merchandise
• retailers financial resources
• characteristics of the target market
• site availability

Question 13

Promotional Strategy - things to remember

Answer 13

• sales people play important role with: selling up and suggestion selling
• communicating sales, new products

Question 14

A combination of physical characteristics and amenities that contribute to a store’s image is called?

Answer 14

Atmospherics

- includes exterior and interior decor

Question 15

A convenience retailer focuses marketing on what?

Answer 15

• accessible locations
• extended store hours
• rapid checkout services
• adequate parking facilities

Question 16

What is a store called that handles only part of a single product line?

Answer 16

Specialty store

Question 17

A retailer that offers a large assortment of products within on product line or a few related lines is called?

Answer 17

limited line retailer

Question 18

What is a category killer?

Answer 18

retailer that offers huge selections and low prices in single product lines.

• Bass Proshop
• Barnes and Noble
• ToysRUs

Question 19

A series of limited line and specialty stores under one roof is called a ______ ?

Answer 19

Department store

Question 20

Warehouse club?

Answer 20

Costco, Sams Club, BJs

Question 21

*The concept of the wheel or retailing attempts to explain:

Answer 21

the patterns of change in the life of retailing. ?

Question 22

*A lifestyle center is a type of planned shopping center that:

Answer 22

offers a combination of shopping, live entertainment, movie theatres, restaurants, decorative fountains and much more in an attractive outdoor enivornment

Question 23

*Which of the following is an example of a specialty store?

Answer 23

A men’s shoe store

Question 24

What is selling up vs suggestion selling?

Answer 24

Pushing a product that is more expensive then the one the customer is looking at.