Deck 11: Retailing and Wholesaling 

Question 1

Which of the following statements is true of retailing?

A) A feature common to all types of retail stores is the use of the everyday low pricing strategy.
B) The largest type of retail outlet is a supermarket.
C) A department store has a narrow product line with a deep assortment.
D) Services like hotels, banks, airlines, restaurants, colleges, and hospitals can be retailed.
E) All retail stores are full-service retail stores.

Answer 1

D

Question 2

Customers at Carat, a premium jewellery store, are encouraged to make an appointment before a visit so that a customer service representative is assigned to them. These representatives help every customer make a purchase that meets his or her needs and budget after considering numerous options. The different styles and special features of the jewellery are explained to each customer to aid the purchase decision. In this case, Carat is an example of a(n) _ .

A) off-price retailer
B) convenience store
C) self-service retailer
D) supermarket
E) full-service retailer

Answer 2

E

Question 3

Which of the following is a type of off-price retailer?

A) full-service retailer
B) specialty store
C) supermarket
D) warehouse club
E) discount store

Answer 3

D

Question 4

have filled the ultralow-price, high-volume gap by buying at less-than-regular wholesale prices and charging consumers less than retail.

A) Designer shops
B) Specialty stores
C) Full-service retailers
D) Convenience stores
E) Off-price retailers

Question 5

Bulk Barn is Canada's largest bulk food distributor with over 275 stores across Canada. The primary role of the staff is to restock shelves and operate cash registers. Customers locate, compare, and select their groceries and other sundry items. Bulk Barn is most likely a _.

A) self-service retailer
B) category killer
C) full-service retailer
D) pop-up store
E) supermarket

Question 6

Which type of retailer is much larger than a regular supermarket and offers a large assortment of routinely purchased food products, nonfood items, and services?

A) factory outlets
B) off-price outlets
C) discount stores
D) specialty stores
E) superstores

Question 7

Which type of retailer typically carries deep product assortments of narrow product lines?

A) factory outlets
B) self-service retailers
C) warehouse clubs
D) discount stores
E) specialty stores

Question 8

Aristocrat Bows N Ties, a Toronto necktie retailer, offers a deep assortment of men's neckties. This company is best described as a(n) _ .

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

Question 9

Specialty stores are characterized by .

A) routinely purchased food products and services
B) the sale of convenience and staple items
C) low prices on a wide range of goods
D) a wide range of products and categories
E) narrow product lines with deep assortments

Question 10

Which term refers to a giant specialty store with a very deep assortment of a particular product line?

A) convenience store
B) factory outlet
C) independent store
D) category killer
E) department store

Question 11

Stores that provide moderate sales assistance because they carry shopping goods about which customers need a moderate level of information are called retailers.

A) limited-service
B) off-price
C) convenience
D) self-service
E) full-service

Question 12

A convenience store .

A) involves high operation costs due to full-service customer assistance
B) carries a limited line of high-turnover goods for consumer self-service
C) markets to segments comprised mostly of white-collar workers
D) is a multi-channel food and discount retailer that targets niche markets
E) stocks narrow product lines that have wide, deep assortments

Question 13

Office Solutions is a large retailer that specializes in office products and services. Their offerings include a wide and deep assortment of computers, desk furniture, printers, office supplies, stationery, and printing. Office Solutions is most likely an example of a .

A) pop-up store
B) convenience store
C) supermarket
D) category killer
E) lifestyle centre

Question 14

creates a seamless cross-channel buying experience that integrates in-store, online, and mobile shopping.

A) Consolidation marketing
B) Shopper marketing
C) Test marketing
D) Online marketing
E) Omni-channel retailing

Question 15

Leading "big-box" stores, such as Walmart and Home Depot, now dominate the retail scene. However, even "small-box" stores like Dollarama, are thriving in the current economic environment. All three retailers are considered _.

A) designer shops
B) convenience stores
C) discount stores
D) full-service retailers
E) specialty stores

Question 16

refers to the activities involved in selling products or services directly to final consumers for their personal, nonbusiness use.

A) Retailing
B) Procurement
C) Manufacturing
D) Warehousing
E) Sole sourcing

Question 17

Department stores are most likely characterized by .

A) deep assortments of luxury brands
B) narrow product lines
C) wide varieties of product lines
D) specialty goods and services
E) predatory pricing strategies

Question 18

focuses the entire marketing process-from product and brand development to logistics, promotion, and merchandising-toward turning shoppers into buyers as they move along toward the point of sale.

A) Internal marketing
B) Sole sourcing
C) Warehousing
D) Shopper marketing
E) Test marketing

Question 19

The Hudson's Bay Company (The Bay), a major retail chain across Canada, offers a wide range of consumer goods such as clothing, furniture, home appliances, cosmetics, and jewellery. The Bay is best described as a .

A) specialty store
B) department store
C) supermarket
D) category killer
E) pop-up store

Question 20

Which types of stores are characterized by specialty goods for which customers need assistance and higher operating costs that are passed along to customers as higher prices?

A) full-service stores
B) discount stores
C) off-price stores
D) self-service stores
E) convenience stores

Question 21

Dina loves branded apparel and accessories but cannot afford to buy them too often. Fortunately, Dina lives close to an off-price retail store that is owned and operated by a famous brand. The company utilizes this store to sell its surplus, discontinued, or irregular goods at significantly lower costs. The retail store is best referred to as a .

A) specialty store
B) superstore
C) category killer
D) power centre
E) factory outlet

Question 22

Warehouse clubs appeal not only to low-income consumers seeking bargains on bare-bones products but to customers shopping for a wide range of goods, from necessities to extravagances.

Question 23

Which contractual system is distinguished by the fact that it is normally based on some unique product or service; method of doing business; or trade name, goodwill, or patent that has been developed?

A) franchise
B) corporate chain
C) voluntary chain
D) warehouse club
E) retailer cooperative

Question 24

An off-price retailing operation that is owned and operated by a manufacturer and normally carries the manufacturer's surplus, discontinued, or irregular goods is called a .

A) warehouse club
B) category killer
C) specialty store
D) superstore
E) factory outlet

Question 25

What is retailing? Explain the concept of shopper marketing.

Question 26

now command about 45 percent of all retail sales in Canada.

A) Factory outlets
B) Joint agreements
C) Franchises
D) Acquisitions
E) Superstores

Question 27

A group of independent retailers that bands together to set up a jointly owned, central wholesale operation and conduct joint merchandising and promotion efforts is referred to as a .

A) factory outlet mall
B) voluntary chain
C) corporate chain
D) warehouse club
E) retailer cooperative

Question 28

Crunch and Munch is the country's favourite fast-food vendor of fried chicken. Over the years, the company has diversified into providing a larger variety of snacks like hot dogs, burritos, and burgers, but consumers still consider it the best seller of fried chicken. Many potential investors have approached Crunch and Munch with offers to buy the company, but Crunch and Munch continues to operate through its stores. What is franchising? Why would franchising be a good contractual system for Crunch and Munch?

Question 29

Compare and contrast specialty stores and convenience stores.

Question 30

refer to two or more outlets that are commonly owned and controlled.

A) Warehouse clubs
B) Corporate chains
C) Specialty stores
D) Factory stores
E) Designer shops

Question 31

A franchise organization is a group of independent retailers who jointly establish a central buying organization and conduct joint promotion efforts.

Question 32

Winners is a retailer that buys clothing and home products from a variety of brand name manufacturers at less-than-regular wholesale prices and then charges customers less than retail. Winners is an example of a(n) .

A) full-service retailer
B) independent off-price retailer
C) departmental retailer
D) category killer
E) specialty retailer

Question 33

Examples of a service retailer include hotels, airlines, banks, colleges, and many others.

Question 34

An off-price retailer buys and sells at lower wholesale prices.

Question 35

How are retailers classified based on the amount of service they provide to customers? Provide examples of each service level to illustrate your response.

Question 36

Mind and Body Fitness recently entered into a financial agreement that allows 25 independent business people at select locations across the country to set up establishments that offer its holistic services and programs. They include weight-management, group programming, sport-specific training, yoga, Pilates, and nutrition. Which type of contractual retail association does this represent?

A) voluntary chain
B) franchise organization
C) retailer cooperative
D) independent retailer
E) corporate chain

Question 37

Describe superstores, category killers, and service retailers.

Question 38

Foot Locker has mastered online and mobile efforts that link seamlessly with store operations, offering options such as "buy online, ship from store" and "buy online, reserve in store" for pickup. This is an example of .

A) omni-channel retailing
B) web-based retailing
C) in-store ordering with a mobile device
D) digital retailing
E) social media

Question 39

are off-price retailers that operate in huge facilities offering few frills but ultra-low prices and surprise deals on selected branded merchandise.

A) Superstores
B) Specialty stores
C) Warehouse clubs
D) Convenience stores
E) Department stores

Question 40

A convenience store is owned and operated by a manufacturer and normally carries the manufacturer's surplus, discontinued, or irregular goods.

Question 41

Campbell is one of the oldest retailers in the country. While the service offered at Campbell is fairly mediocre, the retailer is famous for its surprise offerings of seconds, overstocks, and closeouts - occasionally including expensive gadgets and jewellery. Posco, a new chain of retail stores, offers products that are similar to Campbell's offerings; however, Posco is known for encouraging customers to ask questions and for providing service representatives to assist customers in the purchasing decision process. From this scenario, which of the following statements is most likely true?

A) Both Campbell and Posco fail to identify the needs and wants of target markets.
B) Posco better utilizes the services mix to differentiate itself from Campbell.
C) Campbell has not been able to differentiate itself on the basis of product assortment.
D) Posco's product assortment helps differentiate it from Campbell.
E) Posco fails to differentiate itself from Campbell through the services mix.

Question 42

Omni-channel retailers are those who _ .

A) sell products through third-party retailers
B) conduct all business activities online
C) use mobile apps to sell their products
D) successfully merge the virtual and physical worlds
E) expand their businesses internationally

Question 43

The boundaries between in-store and online retailing are rapidly blurring.

Question 44

It's estimated that most Canadian retail sales are either transacted directly or influenced by online research.

Question 45

Omni-channel retailing includes all of the following except .

A) omitting digital selling options
B) cross-shopping on mobile devices
C) integrating available shopping channels
D) increasing in-store shopping channels
E) boosting online selling options

Question 46

According to the author, creating a digital-friendly store, high-powered website, and extensive social media presence constitutes good omni-channel retailing.

Question 47

Charging higher prices on an everyday basis, coupled with frequent sales and other price promotions to increase store traffic, create a low-price image, or attract customers who will buy other goods at full prices is referred to as pricing.

A) high-low
B) everyday low
C) discount
D) category killer
E) predatory

Question 48

What is most likely the first major marketing decision that a retailer must take?

A) differentiation
B) segmenting the market
C) promoting
D) positioning
E) targeting

Question 49

According to research, nearly 60 percent of shoppers research product information on their smartphone while shopping.

Question 50

Walmart, Loblaws, Canadian Tire, and other major retailers offer handy _ that pull customers to both their websites and stores.

A) platforms
B) product information
C) in-store shopping experiences
D) channels
E) mobile apps

Question 51

Many online merchants-including Amazon-have experienced so much online growth that they are now moving into showrooms or their own stores.

Question 52

Describe the growth of online retailing.

Question 53

Which of the following plays the most important role in omni-channel retailing?

A) Social media
B) In-store promotions
C) Advertising
D) Daily alerts
E) Discounts

Question 54

Bikers and non-bikers alike enjoy dining at the Harley Davidson Café in Las Vegas. Several Harley Davidson models are on display as well as a very large, uniquely crafted American flag. Menu items include the Easy Rider, the Choppers Cobb salad, and the Harley Hog sandwich. The Harley Davidson Café most likely uses .

A) franchising
B) experiential retailing
C) everyday low pricing
D) self-service retailing
E) predatory pricing

Question 55

Retailers must decide on three major product variables: product assortment, services mix, and .

A) store ambience
B) store location
C) store atmosphere
D) self-service offerings
E) store layout

Question 56

Which of the following statements is true of shopping centres?

A) Shopping centres are huge superstores that offer a deep assortment of a particular product line.
B) Most shopping centres function at the regional level rather than at the neighbourhood level.
C) Shopping centres typically contain only those stores that target a niche market segment of high income groups.
D) Shopping centres are groups of retail businesses built on a site that is planned, developed, owned, and managed as a unit.
E) Shopping centres usually contain exclusive brands and specialty stores rather than convenience stores or department stores.

Question 57

What have retailers learned about how customers make purchase decisions?

Question 58

Compared to companies that employ Every day low pricing (EDLP), the Hudson's Bay Company (The Bay) carries a wide range of product lines, including clothing, jewellery, kitchenware, and home furnishings. The Bay typically charges higher prices on an everyday basis and then holds frequent sales and price promotions to increase store traffic. The Bay most likely uses _.

A) everyday low pricing
B) self-service retailing
C) franchise retailing
D) experiential retailing
E) high-low pricing

Question 59

Beyond direct online sales, retailer online sites, mobile apps, and social media influence a large amount of in-store buying.

Question 60

A _ refers to a group of retail businesses built on a site that is planned, developed, owned, and managed as a unit.

A) pop-up store
B) shopping centre
C) category killer
D) warehouse
E) convenience store

Question 61

Which wholesaler channel function is demonstrated when a wholesaler's sales force helps a manufacturer reach many small customers at a low cost?

A) selling and promoting
B) buying and assortment building
C) risk bearing
D) bulk breaking
E) warehousing

Question 62

Which of the following is an impact of the Great Recession on retailing trends?

A) prohibition on new retail forms
B) economic shift toward higher prices
C) lower costs for retailers
D) longer retail life cycles
E) tighter consumer spending patterns

Question 63

Describe the promotion tools used by retailers.

Question 64

Rotanna's, a leading fashion brand, sets up small temporary boutiques across numerous locations during its year-end sale, promoting its outdated products at half the price. These temporary boutiques are referred to as .

A) power centres
B) pop-up stores
C) franchises
D) category killers
E) shopping centres

Question 65

According to the text, today's large and progressive wholesalers have successfully reacted to rising costs by .

A) increasing customer service responsibilities
B) relocating to low-rent, low-tax areas
C) investing in information technology systems
D) reducing promotional and personal selling activities
E) eliminating the need for brokers and agents

Question 66

Three types of shopping centres are regional shopping centres, community shopping centres, and neighbourhood shopping centres or strip malls. Describe how they differ from each other.

Question 67

Retail convergence most likely leads to .

A) reduced competition
B) increased profit margins
C) reduced advertising costs
D) increased sales
E) reduced differentiation

Question 68

Power centres are characterized by the _.

A) lack of an anchor store
B) provision for nonretail activities, such as playgrounds
C) absence of any pricing strategies for differentiation
D) provision of individual entrances to each store
E) sale of exclusive brands only

Question 69

Differentiate between power centres and lifestyle centres.

Question 70

A _ _ is a small open-air mall with upscale stores, convenient locations, and nonretail activities such as a playground, hotel, dining establishments, and a movie theater.

A) regional shopping centre
B) power centre
C) warehouse club
D) lifestyle centre
E) community shopping centre

Question 71

includes all the activities involved in selling goods and services to those buying them for resale or business use.

A) Crowdsourcing
B) Wholesaling
C) Showrooming
D) Franchising
E) Sole sourcing

Question 72

A _ contains between 15 and 50 retail stores, including a department or variety store, a supermarket, specialty stores, professional offices, and sometimes a bank.

A) superstore
B) warehouse club
C) regional shopping mall
D) neighbourhood shopping centre
E) community shopping centre

Question 73

Grace and her fiancé visit several furniture stores in and around their hometown of Saskatoon. They use their smartphones to capture information about manufacturers and pricing, and ultimately decide to purchase their favourite items online. This is referred to as .

A) wholesaling
B) franchising
C) warehousing
D) retailing
E) showrooming

Question 74

Casey's is a large supermarket that practices everyday low pricing. Therefore, consumers should expect few discounts or sales if shopping at Casey's regularly.

Question 75

Electronics Storage is a wholesaler that holds inventories, thereby reducing carrying costs and risks for both suppliers and customers. Which channel function does Electronics Storage primarily provide?

A) showrooming
B) financing
C) assortment building
D) transporting
E) warehousing

Question 76

The rise of megaretailers has shifted the balance of power between retailers and producers. Since megaretailers have access to numerous consumers, they have significant power when dealing with manufacturers.

Question 77

Pricing decisions of specialty stores are typically based on low markups on a high volume of products.

Question 78

Retailers are greening up their stores and operations, promoting more environmentally responsible products and working with channel partners to reduce their environmental impact.

Question 79

Too many retailers, even big ones, fail to clearly define their target markets and positions.

Question 80

The retailer's product assortment should be distinguishable and also match target shoppers' expectations.