Exam 3 Ch.14

Question 1

retailing

Answer 1

all the activities directly related to the sale of goods and services to
the ultimate consumer for personal, nonbusiness use

Question 2

retailer

Answer 2

a channel intermediary that sells mainly to consumers

Question 3

independent retailer

Answer 3

a retailer owned by a single person or partnership and not operated
as part of a larger retail institution

Question 4

chain store

Answer 4

a store that is part of a group of the same stores owned and operated by a single organization

Question 5

franchise

Answer 5

a relationship in which the business rights to operate and sell a product are granted by the franchisor to the franchisee

Question 6

department store

Answer 6

a store housing several departments under one roof

Question 7

specialty store

Answer 7

a retail store specializing in a given type of merchandise

Question 8

supermarket

Answer 8

a large, departmentalized, self-service retailer that specializes
in food and some nonfood items

Question 9

drugstore

Answer 9

a retail store that stocks pharmacy-related products and services as its main draw

Question 10

convenience store

Answer 10

a miniature supermarket, carrying only a limited line of high-turnover convenience goods

Question 11

discount store

Answer 11

a retailer that competes on the basis of low prices, high
turnover, and high volume

Question 12

full line discount store

Answer 12

a discount store that carries a vast depth and breadth of product within a single product category

Question 13

supercenter

Answer 13

a large retailer that stocks and sells a wide variety of merchandise including groceries, clothing, household goods, and other general merchandise

Question 14

specialty discount store

Answer 14

a retail store that offers a nearly complete selection of single-line merchandise and uses self-service, discount prices, high volume, and high turnover

Question 15

category killer

Answer 15

a large discount store that specializes in a single line of
merchandise and becomes the dominant retailer in its category

Question 16

warehouse club

Answer 16

a large, no-frills retailer that sells bulk quantities of
merchandise to customers at volume discount prices in exchange for a periodic
membership fee

Question 17

off price retailer

Answer 17

a retailer that sells at prices 25 percent or more below
traditional department store prices because it pays cash for its stock and usually
doesn’t ask for return privileges

Question 18

factory outlet

Answer 18

an off-price retailer that is owned and operated by a manufacturer

Question 19

used goods retailer

Answer 19

a retailer whereby items purchased from one of the
other types of retailers are resold to different customers

Question 20

restaurant

Answer 20

a retailer that provides both tangible products—food and drink—and valuable services—food preparation and presentation

Question 21

floor stock

Answer 21

inventory displayed for sale to customers

Question 22

back stock

Answer 22

inventory held in reserve for potential future sale in a retailer’s storeroom or
stockroom

Question 23

atmosphere (presentation)

Answer 23

The main element of a store’s presentation is its atmosphere, the overall impression conveyed by a store’s physical layout, decor, and surroundings.

• The layout of retail stores is a key factor.

− The goal is to use all of the store’s space effectively, including aisles, fixtures, merchandise
displays, and non selling areas.

− In addition to making shopping easy and convenient for the customer, an effective layout
influences traffic patterns and purchasing behavior

Question 24

personnel (people)

Answer 24

Sales personnel provide their customers with the amount of service prescribed by the retail strategy of the store.

• Retail salespeople must be able to persuade customers that what they are selling is what the customer needs.
• Providing great customer service is one of the most challenging elements in the retail mix because customer expectations for service vary greatly