Chapter #2

Question 1

Variety

Answer 1

Number of different merch categories. (breadth)

Question 2

Assortment

Answer 2

Number of specific options in a specific merch category. (depth)

Question 3

SKU

Answer 3

Stock Keeping Units.

Example: 12 vs 24 Cottonelle toilet paper in a pack

Question 4

Conventional Supermarket

Answer 4

Example: Whole Foods. 30% of sales come from perishables.

Question 5

Limited Assortment Supermarkets

Answer 5

Because lesser quantity they are seen as more efficient and cheaper. Example: ALDI.

Question 6

Difference between conventional supermarket and limited assortment.

Answer 6

Limited assortment has less brands and variety allowing them to be drastically cheaper vs conventional supermarkets sell what they know people will buy and offer many options.

Question 7

3 Ways Consumer food consumptions are changing.

Answer 7

1-Time pressures exist more now than ever.
2-Eating out more
3-Meal solutions are available.

Question 8

Supercenters

Answer 8

A store that offers everything one could need in a “one stop shop,” like groceries, clothing, home decor etc.
Example: Target or Walmart

Question 9

Warehouse Club

Answer 9

Think of the stores where you need a membership to even enter into the store like Sam’s Club or Costco. Sell things incredibly in bulk and offer odd assortments and give little customer service.

Question 10

Convenience Store

Answer 10

Could exist inside a gas station, most of what is sold is consumed within 30 minutes of purchase, fast and easy.

Question 11

Department Store

Answer 11

Tons of variety and deep assortment. Think of Macy’s where the customer service is good because there’s so much so they specialize.

Question 12

Category Specialist Store.

Answer 12

Think a Cabella’s or an REI, it offers a specialty experience and is a “destination store” where there’s lots of growth and tough competition. They SPECIALIZE in being a certain “type” of store.

Question 13

Full-Line Discount Store

Answer 13

Walmart and it’s model of everyday low prices, whereas they literally get everything in from other places for dirt cheap prices.

Question 14

Specialty Store

Answer 14

They have a high level of service and thrive on limited merch categories.
Example: Teavana or Sephora

Question 15

Difference between Specialty store and category specialist store.

Answer 15

Category Specialist is selling the EXPERIENCE and is a bit larger and more broad of a place.
Specialty store has a more intimate feel in shopping experience and is much smaller.

Question 16

Drugstores

Answer 16

Focus on healthy and beauty care. Think Walgreens or CVS. May sell everything from medicine to makeup.

Question 17

Extreme Value Retailers aka Dollar Stores

Answer 17

Limited services and products, in a low cost area, not much is over $1. Example: Dollar General, Family Dollar, Dollar Tree.

Question 18

Off Price Retailers

Answer 18

Close out retailers where this is the “last stop” for that product. Think Overstock.com or Nordstrom Rack where it’s the stuff that’s got to go.

Question 19

4 aspects of Services Retailing (and describe them)

Answer 19

1-Intangibility (cannot gift wrap a massage, cannot “touch” the product)
2-Simultaneous production/consumption (Restaurant they make your food and you eat it, no going back to return the service)
3-Perishability (cannot sell the seat on an airplane after the plane has already left)
4-Inconsistency of the Offering (because people are selling to people and everyone is different, this is why HR training is vital)