Deck 16: Retailing and Omnichannel Marketing

Question 1

One significant potential benefit of the Internet channel is its ability to enable retailers to provide personalized offerings and services for each customer.

Answer 1

True

Question 2

Convenience for the customer is seldom a factor for manufacturers when choosing a retail partner.

Answer 2

False

Question 3

Manufacturers might use selective distribution by allowing only a few selected retail customers in a territory to sell its products.

Answer 3

True

Question 4

Retailers who advertise that they sell at wholesale prices are wholesalers.

Question 5

Category specialists are also known as category killers.

Question 6

Effective omnichannel operations require an integrated CRM (customer relationship management)system.

Question 7

When retailers extend their services to the Internet and become omnichannel retailers, they can satisfy a broader range of customers' needs and wants.

Question 8

Off-price retailers specialize in having a consistent line of merchandise available at discount prices.

Question 9

Many retailers and some manufacturers use an omnichannel or multichannel strategy in which they sell in more than one channel, such as a store, catalog, or the Internet.

Question 10

Supercenters are large stores (185,000 square feet)that combine a supermarket with a full-line discount store.

Question 11

Omnichannel retailers charge the same prices across all channels.

Question 12

One criterion for ensuring a manufacturer's success in choosing the right retailing partner is to know where target customers expect to find products.

Question 13

Consumer packaged-goods companies, such as Procter & Gamble, Pepsi, and Kraft, typically seek an exclusive distribution strategy.

Question 14

Retailing is the primary activity in which of these activities?

A)selling goods to a retailer
B)transporting pallets of Daisy brand dairy products
C)selling goods on the Internet
D)using containers to ship to Europe
E)exchanging items of equal value with another person

Question 15

Dollar General and Dollar Tree are examples of full-price discount retailers.

Question 16

One of retailers' most fundamental activities is providing the right mix of merchandise and services that satisfies the needs of the target market.

Question 17

Today, large manufacturers dictate to retailers what should be made.

Question 18

The larger and more sophisticated the channel member, the more likely that it will use supply chain intermediaries.

Question 19

It is primarily the retailer's responsibility to make sure customers' expectations are fulfilled.

Question 20

Neveen represents a manufacturer who makes unique, high-end hats. When making a recommendation about potential retail partners, what should be Neveen's first consideration?

A)What is the appropriate advertising strategy?
B)When will customers want this product?
C)What prices will customers be willing to pay?
D)What assortment of products will customers want?
E)How likely is it for certain retailers to carry this product?

Question 21

Which of these channels is least likely to be used by retailers to sell products?

A)catalogs
B)the Internet
C)wholesalers
D)stores
E)restaurants and hotels

Question 22

Some companies want to get their products into as many outlets as possible, understanding that the more exposure a product gets, the more it will sell. If this is consistent with the company's overall strategy, it will choose ________ distribution.

A)primary
B)independent
C)intensive
D)exclusive
E)selective

Question 23

Distribution intensity is commonly divided into three levels:

A)intensive, exclusive, and selective.
B)primary, secondary, and tertiary.
C)administered, vertical, and independent.
D)global, national, and local.
E)profit, government, and nonprofit.

Question 24

Every Woman Fashions is launching a new line of one-of-a-kind designer jewelry. Each piece is handcrafted, and production volumes will be very low. To emphasize the unique nature of this jewelry, Every Woman Fashions will most likely choose ________ distribution.

A)luxury
B)selective
C)monopolistic
D)intensive
E)exclusive

Question 25

When a manufacturer chooses one or more retailing partners, the overriding consideration must be

A)if customers can participate in mobile commerce.
B)the retailers' customary distribution intensity.
C)the satisfaction of the retailing partners.
D)the greatest possible customer convenience and satisfaction.
E)the overall cost to the manufacturer.

Question 26

Oliver's Office Supplies has decided to branch out from its existing stores. It plans to start sending out a catalog and to sell its products online. Oliver's is adopting

A)an omnichannel strategy.
B)exclusive distribution.
C)selective distribution.
D)an extreme value strategy.
E)a service retailing philosophy.

Question 27

Today, ________ dominate supply chains.

A)large retailers
B)manufacturers
C)government agencies
D)wholesalers
E)distributors

Question 28

Goeff used to work for a large, well-known retailer. He left that company to work for a much smaller company, and in doing so, he discovered that the channel functions were handled very differently in the smaller firm. Looking back at his experience, he noticed that larger firms

A)perform many different channel functions themselves.
B)have less control in the channel.
C)are generally less efficient.
D)spend more money wastefully.
E)use more independent salespeople.

Question 29

Who controlled supply chains in the past?

A)retailers
B)manufacturers
C)government agencies
D)wholesalers
E)distributors

Question 30

A(n)________ distribution intensity helps a seller maintain a particular image and control the flow of merchandise into an area.

A)intensive
B)widespread
C)selective
D)collective
E)variable

Question 31

What determines how many of the marketing channel functions a particular manufacturer will perform?

A)the type and availability of the product
B)the location of the retailers
C)the image the manufacturer wishes to display
D)the manufacturer's size and level of sophistication
E)the caliber of the consumer

Question 32

If a manufacturer wasn't happy with either intensive or exclusive distribution, a logical choice, which incorporates some features from both, would be ________ distribution.

A)moderate
B)compromise
C)luxury
D)evolutionary
E)selective

Question 33

When Personal Pen Company designed a new pen that was particularly comfortable to use, it wanted to literally get the pen in the hands of as many consumers as possible. Personal Pen will probably choose ________ distribution for its new product.

A)intensive
B)exclusive
C)selective
D)collective
E)variable

Question 34

The key factor distinguishing retailers from other members of the supply chain is that they

A)sell to consumers, businesses, and government.
B)utilize marketing to reach consumers.
C)use advertising to generate demand.
D)rarely engage in personal selling.
E)sell to customers for their personal use.

Question 35

Min-Seo is looking for a Michael Kors chronograph watch and assumes she can view and try them on at Macy's. She makes a special trip to the store to look at the watches and selects the style she likes best. Which aspect of choosing a retail partner allowed Min-Seo to confidently shop for this item at a particular store?

A)channel structure
B)customer expectations
C)channel characteristics
D)distribution intensity
E)vertical integration of channel

Question 36

Knowing what customers expect is essential. Retailers need to know which manufacturers their customers prefer, while manufacturers need to know

A)if customers are using credit cards or cash to make purchases.
B)how many employees the retailers have.
C)where their target customers expect to find their products.
D)whether the products will fill a customer's self-actualization needs.
E)whether customers will find the store atmospherics appropriate to the location.

Question 37

Retailing is defined as the set of business activities that

A)focuses on a firm's core values.
B)focuses on transactions, but not relationships.
C)add value to products and services sold to consumers for their personal or family use.
D)separates wholesaling from manufacturing.
E)occurs only in brick-and-mortar space.

Question 38

From the Heart Plantation produces organic food products like stone-ground grits and wild rice. The company has limited production capacity and wants to carefully control where its products are sold. From the Heart Plantation will likely choose ________ distribution intensity.

A)luxury
B)variable
C)monopolistic
D)intensive
E)exclusive

Question 39

Amazon is a very large and sophisticated channel member, and as such, it is not likely it will

A)use supply chain intermediaries.
B)rely on marketing research.
C)use omnichannel marketing.
D)use intensive distribution.
E)be concerned about competitive actions.

Question 40

Althea has designed innovative accessories for hard-core gaming enthusiasts. She knows where and how she will make them, and she needs to turn her attention to getting the products to the customers. As she chooses retail partners, which of the following is least important in this process?

A)looking at the channel structure
B)determining where target customers will expect to find this product
C)considering characteristics of channel members
D)encouraging new gaming enthusiasts
E)considering distribution intensity

Question 41

Supercenters are large stores that combine a supermarket with a full-line discount store. ________ dominates this category with the vast majority of supercenters in the United States.

A)Target
B)Meijer
C)Costco
D)Kroger
E)Walmart

Question 42

If a manufacturer had a full range of products, in a number of different container sizes, which kind of store would the company be least likely to choose as a retailing partner?

A)conventional supermarket
B)supercenter
C)warehouse club
D)convenience stores
E)full-line discount stores

Question 43

Coca-Cola wants its product available everywhere-grocery stores, convenience stores, restaurants, and vending machines. The more exposure the products get, the more they sell. The company is employing a(n)________ strategy.

A)intensive distribution
B)exclusive distribution
C)selective distribution
D)surplus distribution
E)contractual distribution

Question 44

Nordstrom Rack is an example of a(n)

A)department store.
B)off-price retailer.
C)discount store.
D)specialty store.
E)category specialist.

Question 45

Full-line discount, category specialist, and specialty stores are all types of ________ retailers.

A)food
B)general merchandise
C)price sensitive
D)limited demand
E)special appeal

Question 46

________ are combating competitive pressures by providing better value with private-label merchandise; adding new value-added services such as online ordering and delivery options; and providing a better shopping experience.

A)Convenience stores
B)Department stores
C)Full-line discount stores
D)Extreme value stores
E)Conventional supermarkets

Question 47

Compared to conventional supermarkets, warehouse clubs have

A)a broader assortment of food items.
B)a lower level of service.
C)slightly higher prices.
D)no products appealing to small businesses.
E)lower annual fees.

Question 48

If you are a manufacturer and you want to showcase your product in a store that has a narrow but deep selection of merchandise and where expert sales associates can assist customers with their selections, you'd most likely choose a(n)

A)category specialist.
B)specialty store.
C)department store.
D)extreme value retailer.
E)warehouse club.

Question 49

Of the following retailers, the best example of a category killer is

A)Dollar General.
B)Staples.
C)Kohl's.
D)Target.
E)Costco.

Question 50

If you are a marketer for a manufacturer, and the marketing mix for your product focuses on very specific market segments, you'd probably like to sell your product through

A)department stores.
B)category specialist stores.
C)extreme value retailers.
D)specialty stores.
E)convenience stores.

Question 51

Mei has developed a line of organic lotions and handmade soaps with unique, herb-based scents and a touch of bee balm. She plans to sell these products to the wealthy residents of a nearby resort town. Which level of distribution intensity is probably best for this product?

A)intensive
B)exclusive
C)selective
D)collective
E)variable

Question 52

Bao, an industrial equipment sales rep, purchases a quick snack to eat on the way to work. He buys lunch while on the road visiting customers, and grabs bread and milk on the way home when he stops to buy gas. Bao probably does most of this shopping at a

A)convenience store.
B)warehouse club.
C)conventional supermarket.
D)drugstore.
E)category specialist.

Question 53

Customers are willing to pay more for ________ online than if they bought them in stores.

A)books
B)shoes
C)groceries
D)pharmaceuticals
E)clothing and accessories

Question 54

Which statement represents the best reason a manufacturer of high-end products might consider selling products in a warehouse club?

A)There are no high-end shopping centers within a 100-mile radius of the warehouse club.
B)The warehouse club has a good reputation.
C)The manufacturer is trying to increase market share.
D)The manufacturer overestimated demand or has a great deal of returned merchandise from other retailers.
E)The warehouse club wants to upgrade its image.

Question 55

________ are combating competitive pressures by offering fresh food and healthy fast food, tailoring assortments to local markets, opening locations closer to where consumers work and shop, and adding new services.

A)Warehouse clubs
B)Supercenters
C)Convenience stores
D)Department stores
E)Extreme value retailers

Question 56

If you walk into a(n)________, you will likely find a broad variety of merchandise, deep assortment, and customer service, with everything organized into distinct departments for displaying merchandise.

A)department store
B)off-price retailer
C)discount store
D)specialty store
E)category specialist

Question 57

What online business is experiencing rapid growth in spite of its low profit margins?

A)bookstores
B)shoe stores
C)groceries
D)pharmaceuticals
E)clothing manufacturers

Question 58

Macy's, Kohl's, JCPenney, and Nordstrom are examples of

A)department stores.
B)off-price retailers.
C)discount stores.
D)extreme value stores.
E)category specialist stores.

Question 59

Paulo's family has owned and operated a small chain of conventional supermarkets for many years. Competition from a variety of other kinds of retailers has adversely affected the business. To address the new competitive reality, Paulo wants to apply what he recently learned as a marketing major and he has recommended that his family's business should

A)emphasize fresh, locally sourced perishables.
B)target the broadest possible customer base.
C)eliminate customer frills and extras.
D)offer fewer private-label brands.
E)offer more national brand packaged goods and few perishables.

Question 60

Retailers that offer a broad variety of merchandise, limited services, and low prices are known as

A)full-line discount stores.
B)convenience stores.
C)home improvement stores.
D)category specialists.
E)department stores.

Question 61

________ reduce costs and maintain low prices by buying from manufacturers with excess inventory, offering limited assortments of goods and groceries.

A)Category killers
B)Specialty stores
C)Factory outlets
D)Extreme-value retailers
E)Convenience stores

Question 62

What company accounts for two-thirds of full-line discount store retail sales in the U.S.?

A)Macy's
B)Walmart
C)Target
D)Costco
E)Walgreens

Question 63

A customer who is shopping for fashionable but relatively low-cost merchandise in a pleasant environment is probably shopping at a(n)

A)specialty store.
B)extreme value retailer.
C)full-line discount store.
D)department store.
E)convenience store.

Question 64

Which of these businesses is a service retailer?

A)Target
B)Starbucks
C)Kroger (grocery)
D)Clarissa's clothing boutique
E)Ace Hardware

Question 65

What are specialty stores that concentrate on pharmaceuticals and health and personal grooming merchandise usually called?

A)department stores
B)convenience stores
C)drugstores
D)off-price retailers
E)full-line discount stores

Question 66

Mark owns an oil-change business called Oil Only. He changes oil in cars-and that is all he does. What kind of retail business is this?

A)service retailer
B)specialty store
C)category specialist
D)extreme value retailer
E)off-price retailer

Question 67

If you were a marketer for a clothing manufacturer and you wanted to reduce inventory of irregulars, production overruns, and returns, you would be attracted to using

A)department stores.
B)specialty stores.
C)category specialists.
D)off-price retailers.
E)supercenters.

Question 68

In which retail category would a nail salon be placed?

A)service retailer
B)specialty store
C)category killer
D)superstore
E)discount store

Question 69

________ are likely to target low-income consumers who want national brands but cannot afford to buy large-sized packages.

A)Category killers
B)Department stores
C)Extreme-value retailers
D)Specialty stores
E)Warehouse club stores

Question 70

________ offer a limited assortment of general merchandise at very low prices, often targeting low-income customers.

A)Department stores
B)Off-price retailers
C)Discount stores
D)Extreme-value retailers
E)Category specialists

Question 71

Bertone's Office Supplies has large stores resembling warehouse environments, with racks stocked from floor to ceiling with different types of office supplies. Its assortment of office supplies is the largest in town, and its prices are low. Bertone's is a(n)

A)warehouse club.
B)extreme-value retailer.
C)off-price retailer.
D)full-line discount retailer.
E)category specialist.

Question 72

Higher-income consumers visiting ________ may feel like they are on a treasure hunt, searching for a bargain.

A)department stores
B)extreme-value retailers
C)big-box retailers
D)service retailers
E)category specialist stores

Question 73

Anna has a large family and likes to stock up on large packs of basics like toilet paper, paper towels, and large bottles of condiments like ketchup. Anna would most likely shop for these items at a(n)

A)convenience store.
B)off-price retailer.
C)specialty store.
D)warehouse club.
E)category killer.

Question 74

Because of the way ________ buy merchandise, customers can never be confident that the same merchandise will be in stock each time they visit the store.

A)department stores
B)off-price retailers
C)discount stores
D)service retailers
E)category specialist stores

Question 75

Cho's Studio, located in a shopping mall, offers Zumba dance classes for all ages. Cho's Studio is known as a(n)

A)service retailer.
B)category specialist.
C)specialty store.
D)outlet studio.
E)small-box specialist.

Question 76

Considering what you know about their target markets and merchandise, which of the following retailers is least likely to have an online presence?

A)department stores
B)convenience stores
C)category specialists
D)off-price retailers
E)full-line discount stores

Question 77

________ include TJ Maxx and Overstock.com.

A)Department stores
B)Specialty stores
C)Category killers
D)Off-price retailers
E)Full-line discount stores

Question 78

Which type of store is small and offers a limited merchandise assortment at very low prices?

A)specialty stores
B)extreme-value retailers
C)outlet stores
D)limited assortment supermarkets
E)convenience stores

Question 79

________ can purchase merchandise at substantial discounts from the original wholesale prices because they do not ask the suppliers for advertising allowances or markdown adjustments.

A)Department stores
B)Specialty stores
C)Category specialists
D)Drugstores
E)Off-price retailers

Question 80

As a type of retailer, category specialists offer

A)a broad assortment of merchandise.
B)highly trained personnel throughout the stores.
C)predominantly a self-service approach with a narrow, deep assortment.
D)high prices and high-end merchandise.
E)a limited, but complementary merchandise assortment.