Chapter 11- Retailing and Wholesaling

Question 1

Retailer

Answer 1

Business who’s sales come primarily from retailing

Question 2

Shopper Marketing

Answer 2

Using in-store promotions and advertising to extend brand equity “to the last mile”

Question 3

Retailing

Answer 3

Activities involved in selling goods or services directly to consumers for their personal, non business use

Question 4

Types of Retailers

Answer 4

• Amount of service offered
• Breadth and depth of product lines
• Relative prices they charge
• How they’re organized

Question 5

Levels of Service

Answer 5

Self Service- customers who are willing to perform their own “locate-compare-select” to save time/money
Ex) Supermarkets- Target/Kohls

Limited Service- carry more shopping goods about which customers need information
Ex) Sears/JcPenney

-Full-Service- carry more speciality goods and assist customers in every phase of shopping process
Ex) Tiffany’s, Nordstroms

Question 6

Specialty Store

Answer 6

Carries narrow product lien with a deep assortment

Question 7

Department Store

Answer 7

Carries several product lines- each line operated as a separate department

Question 8

Supermarket

Answer 8

Huge, low cost, low margin, high volume, self service operation

Question 9

Convenience store

Answer 9

Carries a limited line of high turnover

-slightly higher price

Question 10

Discount Store

Answer 10

Sells goods at lower prices with lower margins and higher volumes

Question 11

Off-price retailer

Answer 11

Sells merchandise bought at less-than regular wholesale prices and are sold at less than retailer

Question 12

Superstore

Answer 12

Large store for routinely purchased items

Question 13

Warehouse club

Answer 13

Off price retailer selling a limited selection of brand name grocery items, appliances, clothing, and other goods at deep discounts to members who pay annual membership fees

Question 14

Corporate Chain store

Answer 14

Two or more outlets that are commonly owned and controlled
Strongest in department stores, discount stores, food stores, drug stores, and restaurants
Ex) Sears, Target, Kroger, CVS

Question 15

Voluntary Chain

Answer 15

Wholesaler-Sponsored group of independent retailers engaged in group buying and merchandising
Ex) Independent Grocers Alliance (IGA)

Question 16

Retailer Cooperative

Answer 16

Group of independent retailers who jointly establish a central buying organization and conduct joint promotional efforts
Ex) Ace hardware

Question 17

Franchise Organization

Answer 17

Contractual association between a franchisor and franchisee

Ex) Subway, McDonalds, 7 Eleven

Question 18

Product Assortment

Answer 18

Offer merchandise that is carried by no other competitor

Question 19

Services Mix

Answer 19

Offer unique services

Question 20

Store Atmosphere

Answer 20

Create a unique store experience, such as with experiential retailing

Question 21

Price Decisions

Answer 21

Price Policy must fit the retailers

• Target Market and positioning
• Product and Service Assortment
• Competition
• Economic factors
• Everyday low prices (EDLP) or high-low prices

Question 22

Promotion Decision

Answer 22

Advertising
Personal Selling
Sales Promotion
Public Relations
Direct Marketing

Question 23

Place Decision

Answer 23

Locations should be accessible to the target market in areas that are consistent with the retailer’s positioning

Question 24

Shopping Centre

Answer 24

Group of retail businesses built on a site that is planned, developed, owned, and managed as a unit

Question 25

Impact of the Great Recession on consumers

Answer 25

-Changed spending patterns

Question 26

Impact of the Great Recession on retailers

Answer 26

• Cost-cutting, price promotions, bankruptcy

- New Value pitches in positioning

Question 27

Rise of Mega-Retailers

Answer 27

Offer better merchandise selections, good service, and strong price savings

Question 28

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

Answer 28

Availability of a variety of non-store alternatives

Question 29

Show rooming

Answer 29

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

Question 30

Growing importance of retail technology

Answer 30

• Produce better forecasts
• Control Inventory costs
• Interact electronically with suppliers
• Send information between stores
• Sell to customers within stores

Question 31

Green Retailing

Answer 31

• Promoting more environmentally responsible products
• Launching programs to help customers be more responsible
• Working with channel partners to reduce their environmental impact

Question 32

Wholesaling

Answer 32

All the activities involved in selling goods and services to those buying for resale or business use

Question 33

Wholesaler

Answer 33

A firm engaged primarily in wholesaling activities