Chapter 15 - Retailers, Wholesalers, and Direct Marketers

Question 1

Retailing

Answer 1

• Activities involving in selling merchandise to ultimate consumers

Question 2

Wheel of Retailing

Answer 2

• Hypothesis that each new type of retailer gains a competitive foothold by offering lower prices than current suppliers charge, the result of reducing or eliminating services

Question 3

Stock-keeping Unit

Answer 3

• Offering within a product line, such as a specific size of liquid detergent

Question 4

Markup

Answer 4

• Amount a retailer adds to the cost of a product to determine its selling price

Question 5

Markdown

Answer 5

• Amount by which a retailer reduces the original selling price of a product

Question 6

Planned Shopping Center

Answer 6

• Group of retail stores planned, coordinated, and marketed as a unit

Question 7

Atmospherics

Answer 7

• Combination of physical characteristics and amenities that contribute to a store’s image

Question 8

Convenience Retailers

Answer 8

• Store that appeals to customers by having an accessible location, long hours, rapid checkout, and adequate parking

Question 9

Specialty Retailers

Answer 9

• Store that combines carefully defined product lines, services, and reputation to persuade shoppers to spend considerable shopping effort there

Question 10

Limited-line Store

Answer 10

• Retailer that offers a large assortment within a single product line or within a few related product lines

Question 11

Category Killer

Answer 11

• Store offering huge selections and low prices in single product lines

Question 12

General Merchandise Retailers

Answer 12

• Store that carries a wide variety of product lines

Question 13

Department Store

Answer 13

• Large store that handles a variety of merchandise, including clothing, household goods, appliances, and furniture

Question 14

Mass Merchandiser

Answer 14

• Store that stocks a wider line of goods than a department store, usually without the same depth of assortment within each line

Question 15

Discount House

Answer 15

• Store that charges low prices but may not offer some services

Question 16

Hypermarkets

Answer 16

• Giant one-stop shopping facility offering wide selections of grocery items and general merchandise at discount prices, typically filling up 200,000 or more square feet of selling space

Question 17

Supercenters

Answer 17

• Large store, usually smaller than a hypermarket, that combines groceries with discount store merchandise

Question 18

Retail Convergence

Answer 18

• Situation in which similar merchandise is available from multiple retail outlets, resulting in the blurring of distinctions between types of retailers and merchandise offered

Question 19

Scrambled Merchandising

Answer 19

• Retailing practice of combining dissimilar product lines to boost sales volume

Question 20

Wholesalers

Answer 20

• Channel intermediary that takes title to goods it handles and then distributes those goods to retailers, other distributors, or B2B customers

Question 21

Wholesaling Intermediaries

Answer 21

• Comprehensive term that describes wholesalers as well as agents and brokers

Question 22

Merchant Wholesalers

Answer 22

• Independently owned wholesaling intermediary that takes title to the goods it handles; also known as an industrial distributor in the business goods market

Question 23

Rack Jobber

Answer 23

• Full-function merchant wholesaler that markets specialized lines of merchandise to retail stores

Question 24

Truck Wholesaler (or Truck Jobber)

Answer 24

• Limited-function merchant wholesaler that markets perishable food items

Question 25

Drop Shipper

Answer 25

• Limited-function merchant wholesaler that accepts orders from customers and forwards those orders to producers, which then ship directly to the buyers

Question 26

Mail-Order Wholesaler

Answer 26

• Limited-function merchant wholesaler that distributes catalogs instead of sending sales personnel to contact customers

Question 27

Commission Merchants

Answer 27

• Agent wholesaling intermediary that takes possession of goods shipped to a central market for sale, acts as the producer’s agent, and collects an agreed-upon fee at the time of the sale

Question 28

Brokers

Answer 28

• Agent wholesaling intermediary that does not take title to or possession of goods in the course of its primary function, which is to bring together buyers and sellers

Question 29

Selling Agent

Answer 29

• Agent wholesaling intermediary for the entire marketing program of a firm’s product line

Question 30

Manufacturers’ Representatives

Answer 30

• Agent wholesaling intermediary who represents manufacturers of related but noncompeting products and receives a commission on each sale

Question 31

Direct Marketing

Answer 31

• Direct communications, other than personal sales contacts, between buyer and seller, designed to generate sales, information requests, or store or website visits