Chapter 11

Question 1

Retailer

Answer 1

Business whose sales come primary from retailing

Question 2

Retailing

Answer 2

Activities involves in selling goods or services directly to consumers for their personal use

Question 3

Shopper marketing

Answer 3

Focusing the entire marketing process toward turning shoppers into buyers as they approach point of sale

Question 4

First moment of truth

Answer 4

3-7 seconds after a shopper first encounters a product on a store shelf

Question 5

Consumers buying journey

Answer 5

How consumers go through the process of identifying needs, alt evaluation and purchase

Question 6

Omni-channel retailing

Answer 6

Creates seamless cross channel buying experience that integrates in-store, online, and mobile shopping

Question 7

Retailer classification

Answer 7

Based on:

• amount of service offered
• breadth and depth of product lines
• relative prices charged
• way they are organized

Question 8

Self service retailers

Answer 8

Serve customers who are willing to perform their own locate-compare-select process

Question 9

Limited service retailers

Answer 9

Carry more shopping goods about which customer which customers need information and provides more sales assistance

Question 10

Full service retailers

Answer 10

Carry more specialty goods and assists customers in every phase of the shopping process

Question 11

Specialty stores

Answer 11

Carry narrow lines of product line with a deep assortment within that line

Ex.) Sunglass Hut

Question 12

Department stores

Answer 12

Carry a wide variety of product lines, each operated as a separate department managed by specialist buyers or merchandisers

Question 13

Supermarkets

Answer 13

Large, low cost, low margin, high volume, self service stores that carry a wide carrier of grocery and household products

Question 14

Convenience stores

Answer 14

Small stores located near residential areas that are open long hours seven days a week and carry limited line of high turnover convenience goods

Question 15

Discount stores

Answer 15

Sell standard merchandise at lower prices by accepting lower margins and selling at higher volume

Question 16

Off price retailers

Answer 16

Buyer less than regular wholesale prices and sell at less than retail; includes factory outlets owned by manufacturers and independent off price retailers run by division of larger retail corporation

Question 17

Warehouse clubs

Answer 17

Sell limited selection of brand name grocery items, appliances, clothing and other goods at deep discounts to members who pay annual membership fees

Question 18

Superstores

Answer 18

Much larger than regular supermarkets and offer a large assortment of routinely purchased food profits, non food items, and services

Question 19

Supercenters

Answer 19

Combined supermarket and discount stores

Question 20

Category killers

Answer 20

Carry deep assortment of a particular line

Question 21

Service retailers in United States are growing faster than product retailers

Answer 21

For many retailers the product line is actually a service

Question 22

Corporate chains

Answer 22

Two or more outlets that are commonly owned and controlled, their size allows them to buy in large quantities at lower prices and gain promotional economies

Question 23

Voluntary chain

Answer 23

Wholesaler sponsored chain of independent retailers that engages in group buying and common merchandising

Question 24

Retailer cooperative

Answer 24

Group of independent retailers that bands together to set up a jointly owned, central wholesale operation and conducts joint merchandising and promotion efforts

Question 25

Franchise

Answer 25

Refers to contractual associations between a manufacturer, wholesaler, or service organization and independent business people who buy the right it own and operate one or more units in the franchise system

Question 26

Segmentation, targeting, differentiation, and positioning decisions

Answer 26

Target markets must be segmented and defined. Retailers then decide how to differentiate and position themselves in those markets.

Question 27

Three product variables

Answer 27

Product assortment- should differentiate while matching target shoppers’ expectations

Services mix- can help set one retailer apart from another

Store atmosphere- want to create unique store experience that suits target market and moves customers to buy

Question 28

Price decision

Answer 28

Price policy must fit retailers’ target market and positioning, product and service assortment, competitor, economic factors

Retailers practice either EDLP or high-low pricing

Question 29

Promotion decision

Answer 29

Advertising- may be supported by newspaper inserts and catalogs

Personal selling- salespeople greeting customers, meeting their needs, and building relationships

Sales promo- in store demonstrations, displays, sales, loyalty programs

Public relations- new store openings, special events, newsletters and blogs, store magazines, and public service activities

Direct and social media marketing

Question 30

Place decision

Answer 30

Locations should be accessible to target market

Shopping center- group of retail businesses built in site that is planned developed owned and managed as a unit

Question 31

Tighter consumer spending

Answer 31

Impact of Great Recession on consumers
-changed spending patterns; frugality

Impact of the Great Recession on retailers

• cost cutting, price promotions, bankruptcy
• new value pitches in positioning

New retail forms, shortening retail life cycles, and retail convergence; pop ups

Question 32

Rise of mega retailers

Answer 32

Offer better merchandise selections, good service, and strong price savings to consumers and have shifted the balance of powers between retailers and producers

Growth of direct, online, mobile, and social media retailing

Question 33

Green retailing

Answer 33

Promoting more environmentally responsible products, launching programs to help customers be more responsible, working with channel partners it reduce their environmental impact

Global expansion of major retailers- escaping saturated home markets

Question 34

Wholesaling

Answer 34

Involves all the activities in selling goods and services to those buying for resale or business use

Question 35

Wholesaler

Answer 35

Firm engaged primarily in wholesaling activities

Question 36

Channel functions performed by wholesalers

Answer 36

• selling and promoting- wholesalers hell to reach smaller consumers with sales force at lower cost
• buying and assortment building- build assortments for retailers
• bulk breaking- breaking lots into smaller questions
• warehousing- holding inventory and reduce inventory cost of retailers
• transportation- quicker delivery bc of proximity to retailers
• financing- give credit
• risk bearing- risk of theft, damage, spoilage, obsolescence
• market info- info about market, competitors, pricing
• management services and advice- training clerks, store layouts and displays, etc.

Question 37

Trends in wholesaling

Answer 37

• need for greater efficiency
• demands for lower prices
• sorting out suppliers who are not adding value based on cost and quality
• blurring distinction between large retailers and wholesalers
• increased use of tech to contain costs and boost productivity