Retailing

Question 1

independent retailers

Answer 1

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

local florists, shoe repair, ethnic food markets

Question 2

chain stores

Answer 2

owned and operated as a group by a single organization

Gap or Starbucks

Question 3

franchises

Answer 3

owned and operated by individuals but licensed by a larger supporting organization

Krispy Kreme, McDonald’s, Dunkin Donuts

Question 4

retailing

Answer 4

the process by which goods and services are sold to customers for their personal use

value is added or subtracted from the offering with image, inventory, service quality, location, and pricing policy

Question 5

Retailers belong to a _____, providing time, place, and ownership utility of customers

Answer 5

channel of distribution

Question 6

Retail stores can be classified by

Answer 6

level of service, what they sell, and merchandise selection

Question 7

Difficulties in retailing

Answer 7

shoplifting, employee theft, retail borrowing

Question 8

Issues in customer dealings

Answer 8

discouraging certain types of customers from shopping

selling harmful products to at risk groups

Question 9

self-service retailers

Answer 9

shoppers make selections without any help

Factory Outlets

Question 10

limited-service retailers

Answer 10

may offer credit service and merchandise return services but little else
the majority of shopper selection is done without assistance

Target

Question 11

full-service retailers

Answer 11

offer supporting services such as gift wrapping, trained sales associates assist buyers\

Exclusive clothing stores offer: credit, alterations, delivery, consulting, liberal return policies, gift-wrapping, personal shopping

Question 12

merchandise mix

Answer 12

total set of products offered for sale by a retailer, including all product lines sold to all consumer groups

like food stores

Question 13

merchandise breadth

Answer 13

number of different product lines

Question 14

merchandise depth

Answer 14

choices available in each product line

Question 15

An airport bookstore has _____ breadth and ____ depth

for just the LOTR books

Answer 15

narrow, shallow

Question 16

Sam’s Club has _____ breadth and ____ depth

Selling LOTR, a few books and limited assortment of tshirts and toys

Answer 16

broad, shallow

Question 17

www.legendaryheroes.com only sells on the internet and only sells merchandise for specific series/books/movies like Hercules, LOTR, Conan, The Highlander, etc.

______ breadth and ______ depth

Answer 17

narrow, deep

Question 18

Amazon sells millions of books and a long list of other product lines including electronics, toys, apparel, motorcycles, etc.

____breadth and ____ depth

Answer 18

broad, deep

Question 19

non-store retailing

Answer 19

any method used to make an exchange with a product end user that does not require a customer visit to a store

Question 20

direct selling

Answer 20

an interactive sales process in which a salesperson presents a product to one individual or a small group, takes orders and delivers merchandise

Question 21

Forms of direct selling

Answer 21

door to door sales
party plan system (like Mary Kay)
automatic vending

Question 22

convenience stores

Answer 22

have little depth and little depth, carry necessities but usually have few versions to choose from and low service

Question 23

supermarkets

Answer 23

have some breadth and some depth, low to medium service

Question 24

specialty stores

Answer 24

have limited breadth but significant depth, concentrated product assortment and carry one or few product lines but at a considerable depth, high service

Question 25

discount stores

Answer 25

general discount stores, warehouse clubs, factory outlet stores

Question 26

department stores

Answer 26

have some breadth and some depth, medium to high service

Question 27

hypermarkets

Answer 27

combine warehouse and supermarket characteristics
less popular in the US

Carrefours?

Question 28

store image

Answer 28

the way a retailer is perceived in the marketplace relative to the competition

Question 29

atmospherics

Answer 29

the use of color, lighting, scents, furnishings, sounds and other design elements to create a desired store image

Question 30

Music in a store can

Answer 30

control the pace of store traffic, create an image, and attract or direct consumers’ attention

Question 31

Lighting can

Answer 31

highlight merchandise, structure space and capture a mood, energy efficient lighting, downplay features

Question 32

Scent

Answer 32

neutral scents produce more favorable perceptions of the store than no scent, and customers in scented stores report feeling as if they spent less time shopping than customers in unscented stores

Question 33

Color

Answer 33

warm colors produce emotional, vibrant, hot, and active responses

cool colors have a peaceful, calming effect

colors are culturally bounded

Question 34

store layout

Answer 34

arrangement of merchandise in the store that determines traffic flow

Question 35

grid layout

Answer 35

easy to locate merch
does not encourage customers to explore store
allows more merch to be displayed
cost efficient
used in grocery, discount, and drugstores

Question 36

free form layout

Answer 36

fixtures and aisles arranged asymmetrically
provides an intimate, relaxing environment that facilitates shopping and browsing
pleasant relaxing ambiance
inefficient use of space
susceptible to shoplifting
used in specialty stores and upscale department stores

Question 37

racetrack layout

Answer 37

loop with a major aisle that has access to departments
draws customers around the store
provide different viewing angles and encourage exploration
used in department stores like JC Penney

Question 38

Store personnel should complement a store’s image through

Answer 38

dress, attitude, and knowledge

Question 39

price points

Answer 39

price ranges of a store’s merchandise

can play a role in establishing store image

Question 40

Site selection takes into effect ____ or ____, which accounts for a majority of its sales and customers

Answer 40

the store’s trade area or geographic zone

Question 41

Types of stores

Answer 41

department store, specialty store, supermarket, convenience store, drugstore, full-line discounter, specialty discounter, warehouse clubs, restaurant

Vary depending on the degree to which they provide service to you. Specialty store has high level of service on one particular product category (e.g., electronics) down to warehouse club which sells a variety of product categories with very little service/sales support in-store.