Chapter 11 - Retailing and Wholesaling

Question 1

Product Assortment

Answer 1

Offer merchandise that is carried by no other competitor

Question 2

Services Mix

Answer 2

Offer unique services

Question 3

Store Atmosphere

Answer 3

Create a unique store experience, such as with experimental retailing

Question 4

Price Policy

Answer 4

Must fit the retailer’s target market and positioning, product and service assortment, competition, and economic factors

Question 5

Everyday Low Pricing (EDLP)

Answer 5

Charging constant, everyday low prices with few sales or discounts

Question 6

High-Low Pricing

Answer 6

Charging higher prices on an everyday basis, coupled with frequent sales and other price promotions, to increase store traffic, create a low-price image, or attract customers who will buy other goods at full prices

Question 7

Retail Convergence

Answer 7

The merging of consumers, products, prices, and retailers; means greater competition and for retailers and greater difficulty in differentiating the product assortments of different types of retailers

Question 8

Megaretailers

Answer 8

Offer better merchandise selections, good service, and strong price savings to consumers; have shifted the balance of power between retailers and producers; grow even larger by squeezing out smaller, weaker competitors

Question 9

Showrooming

Answer 9

Checking out merchandise and prices in a retail showroom but buying from an online-only rival

Question 10

Green Retailing

Answer 10

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

Question 11

Selling and Promoting

Answer 11

Wholesalers’ sales forces help manufacturers reach many small customers at a low cost

Question 12

Buying and Assortment Building

Answer 12

Wholesalers can select items and build assortments need by their customers, thereby saving the consumers work

Question 13

Bulk-Breaking

Answer 13

Wholesalers save their customers money by buying in carload lots and breaking bulk (breaking large lots into smaller quantities)

Question 14

Warehousing

Answer 14

Wholesalers hold inventories, thereby reducing the inventory costs and risks of suppliers and customers

Question 15

Transportation

Answer 15

Wholesalers can provide quicker delivery to buyers because they are closer than the producers

Question 16

Financing

Answer 16

Wholesalers finance their customers by giving credit, and they finance their suppliers by ordering early and paying bills on time

Question 17

Risk Bearing

Answer 17

Wholesalers absorb risk by taking title and bearing the cost of theft, damage, spoilage, and obsolescence

Question 18

Market Information

Answer 18

Wholesalers give information to suppliers and customers about competitors, new products, and price developments

Question 19

Management Services and Advice

Answer 19

Wholesalers often help retailers train their salesclerks, improve store layouts and displays, and set up accounting and inventory control systems