Chapter 11

Question 1

Define retailing

Answer 1

All activities involved in selling, renting, and providing goods and services to ultimate consumers for personal, family, or household use.

Question 2

Define form of ownership

Answer 2

Distinguishes retail outlets on the basis of whether individuals, corporate chains (under common ownership), or contractual systems (like franchises) own the outlet.

Question 3

Define retailing mix

Answer 3

The goods and services, pricing, physical distribution, and communications tactics chosen by a store.

• products and services mix
• retail pricing mix
• physical location mix
• communications mix

Question 4

Define level of service

Answer 4

The degree of service provided to the customer by self-, limited-, and full-service retailers.

Question 5

define the merchandise mix

Answer 5

How many different types of products a store carries and in what assortment. - distinction between breadth and depth of a product line

Question 6

Define depth of a product line

Answer 6

The assortment of products within each product line.

Question 7

Define breadth of product line

Answer 7

The variety of different items a store carries.

Question 8

Limited line vs single line stores (specialty outlets)

Answer 8

• limited line = stores that carry a large depth of a related line of items (like large depth of multiple items)
• single line stores (stores that carry a lot of depth in one primary line of merchandise)

–> specialty outlets focus on one type of product like electronics, office supplies etc.

Question 9

category killers

Answer 9

specialty outlets that focus on one type of product and often dominate the market

Question 10

general merchandise stores

Answer 10

stores that carry a variety of product lines but with limited depth

Question 11

Define scrambled merchandising

Answer 11

Offering several unrelated product lines in a single retail store. –> leads to competition between very dissimilar types of retail outlets, (intertype competition)

Question 12

What is a planogram

Answer 12

a visual diagram or drawing of fixtures and products that illustrates how and where retail products should be placed on a store shelf and other info.

• fastest moving high margin products get the most space on the shelf

Question 13

define shrinkage

Answer 13

Breakage and theft of merchandise by customers and employees.

Question 14

define off price retailing

Answer 14

Selling brand-name merchandise at lower than regular prices. ex. winners

Question 15

define the central business district

Answer 15

The oldest retail setting, the community’s downtown area.

Question 16

Define regional shopping centers

Answer 16

Consist of 50 to 150 stores that typically attract customers who live within a 5- to 15-km range; often containing two or three anchor stores. ex.malls

Question 17

define community shopping centre

Answer 17

Retail location that typically has one primary store and 20 to 40 smaller outlets, serving a population of consumers within a 2- to 5-km drive.

Question 18

define strip location

Answer 18

A cluster of stores serving people who live within a 5- to 10-minute drive.

Question 19

Define power centre

Answer 19

Large shopping strip with multiple anchor stores, a convenient location, and a supermarket. (Are unenclosed shopping centers)

Question 20

define multichannel retailers

Answer 20

Use a combination of traditional store formats and non-store formats such as catalogues and online retailing.

Question 21

Define merchant wholesalers

Answer 21

Independently owned firms that take title to the merchandise they handle. (they buy the merchandise that they handle)

Question 22

what are rack jobbers (type of limited service wholesalers)

Answer 22

furnish racks or shelves that display merchandise and perform all channel functions, they sell on consignment so the retain ownership of the products displayed and only charge for what merchandise gets sold.

Question 23

what are cash and carry wholesalers (type of limited service wholesalers)

Answer 23

they take title to merchandise but sell only to buyers who call on them, pay cash, and furnish their own transportation for merchandise

• electric supplies, office supplies, hardware, groceries

Question 24

what are drop shippers (type of limited service wholesalers)

Answer 24

wholesalers that own the merchandise they sell but do not physically handle, stock or deliver it. They solicit orders from retailers and have the merchandise directly shipped from a producer to a buyer

• bulky products like coal, lumber, chemicals

Question 25

agents and brokers

Answer 25

unlike wholesalers they do not take title to merchandise and provide fewer channel functions

Question 26

define manufacturer’s agents

Answer 26

Work for several producers and carry non-competitive, complementary merchandise in an exclusive territory.

Question 27

define selling agents

Answer 27

Represent a single producer and are responsible for the entire marketing function of that producer.

Question 28

define brokers

Answer 28

Independent firms or individuals whose main function is to bring buyers and sellers together to make sales.

Question 29

a manufactureres branch office does what

Answer 29

carries a producers inventory and performs the functions of a full service wholesaler

Question 30

a manufacturers sales office does what

Answer 30

does not carry inventory, typically performs only a sales function and serves as an alternative to agents and brokers