Chapter 1

Question 1

• Is a business that sells products and/or services to consumers for personal or family use

Answer 1

RETAILING

Question 2

• A person or organization that buys goods or services from a store or business

Answer 2

CUSTOMER

Question 3

• Buys products with the objective of selling them later at a high price

Answer 3

RESELLER

Question 4

• Is the path used to get a product from the manufacturer or creator to the end user. It is how the customer gets their product after purchase, which often include intermediaries

Answer 4

DISTRIBUTION CHANNEL

Question 5

Four Distribution Channel

Answer 5

1. Manufacturing
2. Wholesaler
3. Retailer
4. Consumer

Question 6

• Is the creation or production of goods with the help of equipment, labor, machines, tools, and chemical or biological processing or formulation

Answer 6

1. Manufacturing

Question 7

• A person or company that sells large quantities of goods, often at low prices, to retailers

Answer 7

Wholesaler

Question 8

• A person or business that sells goods to the public in small quantities for immediate use or consumption

Answer 8

Retailer

Question 9

• A person who buys a product or

service for personal or family use

Answer 9

Consumer

Question 10

TYPES OF DISTRIBUTION CHANNELS

Answer 10

Direct
Indirect
Hybrid

Question 11

• Allows the consumer to make purchases from the manufacturer. This direct, or short channel, may mean lower costs for consumer because they are buying directly from the manufacturer

Answer 11

Direct

Question 12

• Allows the consumer to buy the goods from a wholesaler or retailer. That are typical for goods that are sold in traditional brick-and-mortar stores

Answer 12

Indirect

Question 13

• It uses both direct and indirect channels. A product or service manufacturer may use both a retailer to distribute a product or service and may also make sales directly with the consumer. A manufacturer might sell an item on its ecommerce website, but then an intermediary delivers the physical product to the customer

Answer 13

Hybrid

Question 14

HOW RETAILERS ADD VALUE

Answer 14

1. Breaking Bulk
2. Holding Inventory
3. Providing Assortment
4. Offering Services

Question 15

Buy in large quantities then offer to consumer in smaller quantities

Answer 15

Breaking Bulk

Question 16

Keep inventory so that products will be available when consumers want them

Answer 16

Holding Inventory

Question 17

Enables customer to choose from a wide selection of brands, designs, sizes, colors and prices in one location

Answer 17

Providing Assortment

Question 18

• Provide services that make it easier to buy and use products RETAIL MIX

Answer 18

Offering Services

Question 19

ELEMENTS OF RETAIL MIX

Answer 19

Merchandise Assortment
Store Design and Display
Communication Mix
Customer Service
Pricing
Location

Question 20

• Is the different types of product lines and products that the retailer offers for sale. Decisions regarding to the assortment of products include its width and depth

Answer 20

Merchandise Assortment

Question 21

• Is another important consideration for a retailer. The store’s physical layout and atmosphere should be properly planned to suit the target market and induce customers to buy

Answer 21

Store Design and Display

Question 22

• All the tools you use to communicate with your customers or potential customers. This could be through advertising, social media, product packaging, direct marketing, websites, events, exhibitions

Answer 22

Communication Mix

Question 23

• Besides typical customer services, modern retailers may offer such services as home delivery, credit, and conversation. A retailer can use services mix as a key tool of non-price competition for differentiating him from others

Answer 23

Customer Service

Question 24

• A retailer’s price policy plays an important role in positioning. In formulating price policies, retailers must consider their target market, product, service assortment, and competition. Although all retailers would like to charge high markups and achieve high volume, they are rarely achievable simultaneously

Answer 24

Pricing

Question 25

• A retailer’s location is the key to its ability to attract customers and succeed in business. The costs of building or leasing store premises have a significant bearing on the
  retailer’s profits

Answer 25

Location