Chapter 16 | Retailers & Wholesalers

Question 1

Classifying Retail Outlets (list all 3)

Answer 1

1. Form of Ownership
2. Level of Service
3. Merchandise Line

Question 2

1. Form of Ownership

Answer 2

1. Independent Retailer
2. Corporate Chain
3. Contractual Systems (franchising)

Question 3

2. Level of Service

Answer 3

-Self-Service (RFID) (example: Costco)
-Limited Service
-Full-Service

Question 4

Type of Merchandise Line

Answer 4

-Depth of Product Line
*Specialty Outlets
*Category Killers

Question 5

Retailing Strategy | Positioning a Retail Store

Answer 5

-retail positioning matrix
*breadth of product line
*value added

Question 6

The 4 positioning strategies for retailers: examples

Answer 6

Walmart (Broad Breadth of product line)
Payless (Narrow Breadth of Product Line)
Bloomingdale’s Broad Value Added)
Tiffany & Co. (High Value Added)

Question 7

Retailing Mix

Answer 7

includes the activities related to managing the store and the merchandises in the store, which included retail pricing, store location, retail communication, and merchandise.

Question 8

Retail Pricing (3 bullet points)

Answer 8

1. Original Markup
2. Maintained Markup
3. Gross Margin

Question 9

Retailing Strategy

Answer 9

Retail Mix, Retail Pricing, Markdown

Question 10

Why Retailers Evolve & Change | The “Wheel of Retailing” Keeps on Rolling!

Answer 10

New types of retailers enter the market as low-status, low-margin, low-price operators and then if successful, evolve into more conventional retailers offering more service with higher operating costs and higher prices.

Question 11

Channel Intermediaries

Answer 11

*Merchant Wholesalers