Chapter 13: Retailing and Wholesaling

Question 0

Retailer

Answer 0

A business whose sales come primarily from retailing.

Question 1

Retailing

Answer 1

All of the activities involved in selling goods or services directly to final consumers for their personal, nonbusiness use.

Question 2

Shopper Marketing

Answer 2

Using in-store promotions and advertising to extend brand equity to “the last mile” and encourage favourable in-store purchase decisions.

Question 3

Specialty Store

Answer 3

A retail organization that carries a narrow product line with a deep assortment within that line.

Question 4

Department Store

Answer 4

A retail organization that carries a wide variety of product lines - each line is operated as separate department managed by specialist buyers or merchandisers.

Question 5

Supermarket

Answer 5

A large, low-cost, low-margin, high-volume, self-service store that carries a wide variety of grocery and household products

Question 6

Convenience Store

Answer 6

A small store, located near a residential area, that is open long hours seven days a week and carries a limited line of high-turnover convenience goods.

Question 7

Superstore

Answer 7

A store much larger than a regular supermarket that offers a large assortment of routinely purchase food products, nonfood items, and services

Question 8

Category Killer

Answer 8

A giant specialty store that carries a very deep assortment of a particular line and is staffed by knowledgeable employees

Question 9

Service Retailer

Answer 9

A retailer whose product line is actually a service. ex. Hotels, airlines, banks, universities, and many others.

Question 10

Discount Store

Answer 10

A retail operation that sells standard merchandise at lower prices by accepting lower margins and selling at a higher volume.

Question 11

Off-Price Retailer

Answer 11

A retailer that buys at less-than-regular wholesale prices and sells at less than retail. Ex. Factory outlets, independents, and warehouse clubs. COSTCO

Question 12

Independent Off-Price Retailer

Answer 12

An off-price retailer that is either independently owned and run or a division of a larger retail corporation.

Question 13

Factory Outlet

Answer 13

An off-price retailing operation that is owned and operated by a manufacturer and normally carries the manufacturer’s surplus, discontinued, or irregular goods.

Question 14

Warehouse Club

Answer 14

An off-price retailer that sells a limited selection of brand-name grocery items, appliances, and clothing and a hodgepodge of other goods at deep discounts to members who pay annual membership fees.

Question 15

Chain Stores

Answer 15

Two or more outlets that are commonly owned and controlled

Question 16

Franchise

Answer 16

A contractual association between a manufacturer, wholesaler, or service organization (a franchisor) and independent business people (franchisees) who buy the right to own and operate one or more units in the franchise system

Question 17

Shopping Centre

Answer 17

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

Question 18

Wheel-of-Retailing Concept

Answer 18

A concept that states that new types of retailers usually begin as low-margin, low-price, low-status operations but later evolve into higher-priced, higher-service operations, eventually becoming like the conventional retailers they replaced.

Question 19

Wholesaling

Answer 19

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

Question 20

Wholesaler

Answer 20

A firm engaged primarily in wholesaling activities.

Question 21

Merchant Wholesaler

Answer 21

An independently owned wholesale business that takes title to the merchandise it handles.

Question 22

Broker

Answer 22

A wholesaler who does not take title to goods and whose function is to bring buyers and sellers together and assist in negotiation.

Question 23

Agent

Answer 23

A wholesaler who represents buyers or sellers on a relatively permanent basis, performs only a few functions, and does not take title to goods.

Question 24

Manufacturers’ Sales Branches and Offices

Answer 24

Wholesaling by sellers or buyers themselves rather than through independent wholesalers.