Chapter 2

Question 1

● Is a place business where consumers can purchase food and take it with them to be consumed off-premise. Retail food is basically food obtained through a business transaction with an organization that is not a restaurant

Answer 1

Food Retailers

Question 2

● Is a rural or small-town store that carries a general line of merchandise. It carries a broad selection of merchandise, sometimes in a small place, where people from the town and surrounding rural areas come to purchase all their general goods

Answer 2

General Merchandise Retailers

Question 3

● Is a form of retailing in which a firm sells its products without a physical retail store/space

Answer 3

Non-Store Retail Formats

Question 4

Non-Store Retail Formats are;

Answer 4

○ Electronic Retailing
○ Catalog and Direct Mail
○ Direct Selling
○ Television Home Shopping
○ Vending Machines

Question 5

SERVICE RETAILERS CHARACTERISTICS

Answer 5

1. Intangibility
2. Simultaneous Production and Delivery
3. Perishability
4. Inconsistency of the Offering

Question 6

➔ Inability to be perceived by the sense of touch

Answer 6

Intangibility

Question 7

➔ Service products are consumed at the same time they are being produced
◆ Importance of Service Provider

Answer 7

Simultaneous Production and Delivery

Question 8

➔ The quality of a food, beverage or another product that makes it expire or spoil quickly.
➔ No inventory, Must Fill Capacity

Answer 8

Perishability

Question 9

➔ Service quality is often inconsistent. This is because service personnel have different capabilities, which vary in performance from day to day

Answer 9

Inconsistency of the Offering

Question 10

TYPES OF RETAIL OWNERSHIPS

Answer 10

Independent Retail
Corporate Chain
Franchise

Question 11

Are businesses that operate with a single retail outlet, or are structured as a small chain with no more than three locations. Generally, stores of this type are individually owned, owned by a family, or owned by two partners

Answer 11

Independent Retail

Question 12

○ Appear to be strongest in the food, drug, shoe, variety, and clothing industries. Managed chain stores have a number of advantages over independently managed stores

Answer 12

● Corporate Chain

Question 13

○ Is a method of distributing products or services

Answer 13

● Franchise

Question 14

• Who establishes the brand’s trademark or trade name and business system

Answer 14

Franchisor

Question 15

• Who pays a royalty and often an initial fee for the right to do business under the franchisor’s name and system

Answer 15

Franchisee

Question 16

The process of using multiple channels for selling similar products across different platforms. The platforms may be online and offline and the various channels may be brick and mortar store, online store, mobile store, mobile app store. Etc.

Answer 16

Multi channel retailing