chapters 3-5

Question 1

the firms particular combination of store location, operating procedures, goods/services offered, pricing tactics, store atmosphere and customer services and promotional methods

Answer 1

strategy mix

Question 2

consumers view the company as distinctive enough to become loyal to it and go out of their way to shop there.

Answer 2

destination retailer

Question 3

what are the three concepts that help explain the uses of mixes of approaches that yield a greater appeal for a retailer?

Answer 3

wheel of retailing, scrambled merchandising and the retail life cycle

Question 4

retail innovators often first appear as low price operators with low costs and low profit margin requirements.

Answer 4

wheel of retailing

Question 5

what are the 4 principles that the wheel of retailing is grounded on?

Answer 5

there are man price sensitive shoppers who will trade customer services did selections, and convenient locations for lower prices. price sensitive shoppers are often not loyal and will switch to retailers with lower prices. new institutions are frequently able to have lower operating costs than existing institutions. as retails move up the wheel, they typically do so to increase sales, broaden the target market, and improve their image

Question 6

occurs when a retailer adds goods and services that may be unrelated to each other and to the firms original business

Answer 6

scrambled merchandising

Question 7

why is scrambled merchandising popular?

Answer 7

retailers want to increase overall revenues. fast selling, highly profitable goods and services are usually added. consumers make more impulse purchases. people like one stop shopping. different target markets my be reached. the impact of seasonality and competition is reduced.

Question 8

what are some limitations to scrambled merchandising?

Answer 8

potential lack of retailer expertise in buying, selling and servicing unfamiliar items. the costs associated with broader assortment. and the possible harm to a retailers image if ineffective.

Question 9

states that retail institutions pass through identifiable life stages: introduction, growth, maturity, and decline

Answer 9

retail life cycle

Question 10

involve the combination of separately owned retail firms.

Answer 10

mergers

Question 11

why do companies want a merger?

Answer 11

maximize resources, enlarge their customer base, improve productivity and bargaining power, limit weaknesses and gain competitive advantages.

Question 12

whereby unprofitable stores are closed or divisions are sold off.

Answer 12

downsizing

Question 13

number of product lines carried by a retailer

Answer 13

width of assortment

Question 14

selection within a product lines stocked

Answer 14

depth of assortment

Question 15

typically well located, food oriented retailer that is open long hours carries a moderate number of items.

Answer 15

convenience store

Question 16

a self service food store with grocery, meat, and produce department and minimum annual sales of $2 million.

Answer 16

super market

Question 17

a departmentalized food store with a wide range of food and related products; sales of general merchandise are rather limited

Answer 17

conventional supermarket

Question 18

generally rely on high inventory turnover, profit margins are low, average gross margins are 20-22 percent of sales, and net profits are 1-3 percent of sales

Answer 18

conventional supermarkets

Question 19

larger and more diversified than a conventional supermarket but usually smaller and less diversified than a combination store

Answer 19

food based superstore

Question 20

unites supermarket and general merchandise in one facility with general merchandise accounting for 25-40 percent of sales.

Answer 20

combination store

Question 21

combination store blending an economy supermarket with a discount department store

Answer 21

super center

Question 22

food based discounter that focuses on a small selection of items, moderate hours of operation, few services, and limited manufacturer brands. carry fewer than 2000 items, few refrigerated perishables and few sizes and brands per item.

Answer 22

box (limited line) store

Question 23

food based discounter offering a moderate number of food items in a no frill setting.

Answer 23

warehouse store.

Question 24

concentrates on selling one goods or service line. usually carries a narrow but deep assortment in the chosen category and tailors the strategy to a give market segment

Answer 24

specialty store

Question 25

an especially large specialty store. features an enormous selection in its category and relatively low price.

Answer 25

category killer

Question 26

large retail unit with an extensive assortment of goods and services that is organized into spa rte departments for purposes of buying, promotion, customer service, and control

Answer 26

department store

Question 27

merchandise quality rangers from average to quite good.pricing is moderate to above average. customer service ranges from medium levels of sales help, credit, delivery and so forth to high levels of each.

Answer 27

traditional department store

Question 28

what are some reasons for traditional departments stores’ difficulties?

Answer 28

they no longer have brand exclusivity, instead of creating more of their own brands, they have often signed excluding licensing agreements with fashion designers names. this generates loyalty to the designer not the retailer, price conscious consumers are more attracted to discounters than to traditional department stores, popularity of shopping centers has aided specialty stores because consumers can engage in one stop shopping, specialty stores are too big and have too much unproductive selling space and low turnover merchandise, man department stores have had a weak focus on market segments and a fuzzy image, they repeatedly change strategic orientation, confusing consumers as to their image, and some companies are not as innovative in their merchandise decisions as they once were

Question 29

a type of department store that conveys the image of high volume, low cost outlet selling a broad product assortment for less than conventional prices; it is more apt to carry the range of product lines once expiated at departments store as well as others; shopping carts and centralized checkout service are provided; custom service is usually provided within store departments but at a centralized area. products are normally sold vial self service with minimal assistance; nondurable goods feature private brands, whereas durable goods emphasize well known manufacturer brands; less fashion sensitive merchandise is carried; building equipment and fixtures are less expensive; and operating costs are lower than for traditional department stores and specialty stores

Answer 29

full line disc out store

Question 30

handles an assortment of inexpensive and popularly priced goods and services

Answer 30

variety store

Question 31

sell similar items to those in conventional variety stores but in plainer surroundings and at much lower prices

Answer 31

dollar discount stores

Question 32

sell similar items to those in conventional variety stores but feature closeouts and overruns

Answer 32

closeout chains

Question 33

features brand name apparel and accessories, footwear, lines, fabrics, cosmetics, and/or housewares and sells them at everyday low prices in an efficient limited service environment.

Answer 33

off price chain

Question 34

what is an example of an off price chain>

Answer 34

TJ MAX, Marshalls

Question 35

manufacturer owned store selling closeouts; discontinued merchandise; canceled orders; and sometimes, in season first quality merchandise.

Answer 35

factory outlet

Question 36

what are the 4 basic reasons that manufacturers interest in outlet stores has risen?

Answer 36

manufacturers can control where their discounted merchandise is sold. outlets are profitable due to low operating costs. manufacturer decides on store visibility, sets promotion policies, removes labels, and ensures that discounted items and irregulars are disposed of properly. because many specially department stores are increasing private label sales, manufacturers need revenue from outlet stores to sustain their own growth.

Question 37

appeals to price conscious consumers, who must be members to shop there

Answer 37

membership (warehouse) club

Question 38

many retail vendors sell a range of products at discount prices in plain surroundings.

Answer 38

flea market