Deck 15: Retailing and Multichannel Marketing

Question 1

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

Answer 1

False

Question 2

Category specialists are also known as big box retailers.

Answer 2

True

Question 3

Natalie is opening a retail store specializing in hard-to-find gift items.Before she opens her store,what question will Natalie need to address?

A) Where will customers want her products?
B) When will customers want her products?
C) What prices will customers be willing to pay?
D) What assortment of products will customers want?
E) all of these.

Answer 3

E

Question 4

Supercenters--stores that combine a supermarket with a full-line discount store--are among the fastest growing food retailer formats.

Question 5

Multichannel retailers are able to simply charge the same prices across all channels.

Question 6

Many retailers and some manufacturers are exploring a multichannel strategy in which they sell in more than one channel,for example,the Internet and stores.

Question 7

Retailing is where marketing:

A) is replaced by personal selling.
B) meets the consumer.
C) meets corporate management.
D) sells itself to the corporation.
E) conducts all of its transactions.

Question 8

Manufacturers might use selective distribution by granting exclusive geographic territories to a few retailers so no other retailers in the territory can sell a particular brand.

Question 9

Retailers address customers' needs for value by providing goods and services:

A) where the customer wants it.
B) when the customer wants it.
C) at the price the customer is willing to pay.
D) in the right color,size,or style the customer wants.
E) all of these.

Question 10

One of retailers' most fundamental activities is providing the right mix of merchandise and services.

Question 11

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

Question 12

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) adds value to products and services sold to final consumers.
D) separates wholesaling from manufacturing.
E) occurs in brick and mortar space.

Question 13

One significant potential benefit of the Internet channel is its ability to personalize information for each customer.

Question 14

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

Question 15

Today,large retailers often dictate to their suppliers what should be made.

Question 16

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

Question 17

Retailing __________ the supply chain.

A) sits at the end of
B) is in the center of
C) maximizes the length of
D) creates rigidity in
E) focuses on production in

Question 18

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

Question 19

Choosing the right retailing partners and knowing where target customers expect to find products are key to a manufacturer's success.

Question 20

Using electronic channels along with more traditional channels can result in customers making more total purchases from the seller.

Question 21

__________ distribution intensity helps a seller to maintain a particular image and control the flow of merchandise into an area.

A) Intensive
B) Endogenous
C) Selective
D) Collective
E) Variable

Question 22

When Creative 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.Creative Pen will probably choose __________ distribution for its new product.

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

Question 23

Which of the following is NOT one of the broad factors manufacturers must consider when establishing a strategy for getting their products into the hands of the ultimate customer?

A) Choosing retail partners.
B) Identifying types of retailers.
C) Facilitating retail strategy.
D) Managing a multichannel strategy.
E) All of these are considered when establishing a strategy.

Question 24

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 self-actualization needs through satisfying these expectations.
E) whether customers will find the store atmosphere appropriate to the neighborhood or location.

Question 25

Wholesalers sell to all of the following EXCEPT:

A) businesses.
B) manufacturers.
C) retailers.
D) consumers.
E) industrial users.

Question 26

Generally,the larger and more sophisticated the channel member,the less likely that it will:

A) use intermediaries.
B) rely on marketing research.
C) use multi-channel marketing.
D) use intensive distribution.
E) be concerned about competitive actions.

Question 27

Retailers like Wal-Mart,Home Depot,and Kroger dictate to their suppliers all of the following EXCEPT:

A) which competitors they should collaborate with.
B) what should be made.
C) how products should be configured.
D) when products should be delivered.
E) what products should cost.

Question 28

In the past,__________ dominated supply chains.

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

Question 29

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 30

When a well-established firm has developed a new product as part of its growth strategy,it may be required to find new retailers to carry the new product.One of the critical factors in choosing new retail partners will be:

A) the power of the brand.
B) its overall reputation as a manufacturer.
C) where customers might expect to find the manufacturer's products.
D) All of these.
E) None of these is particularly important.

Question 31

Anbinh 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,Anbinh Fashions will probably choose __________ distribution.

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

Question 32

Which of the following is NOT one of the typical outlets used by retailers?

A) Catalogs.
B) The Internet.
C) Business-to-business requests for proposals (RFPs).
D) Brick and mortar stores.
E) All of these are typical outlets used by retailers.

Question 33

Heartland 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.Heartland will likely choose __________ distribution intensity.

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

Question 34

Full-line discount,category specialist,and specialty stores are all __________ retailers.

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

Question 35

Today,__________ dominate supply chains.

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

Question 36

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

A) wide-coverage
B) exhaustive
C) intensive
D) exclusive
E) selective

Question 37

There are three types of supply chain distribution intensity:

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

Question 38

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

A) they sell to consumers,businesses,and government.
B) they sell to everyone.
C) they use advertising to generate demand.
D) they employ people in personal selling.
E) they sell to customers for their personal use.

Question 39

Aaron has designed innovative accessories for hard-core bicycling enthusiasts.He knows where and how he will make them,and he needs to turn his attention to the getting the products to the customers.As he chooses retail partners,which of the following should he do?

A) Look at the channel structure.
B) Determine where the target customers will expect to find this kind of product.
C) Consider the characteristics of the channel members.
D) Consider distribution intensity.
E) All of these.

Question 40

John used to work for a large,well-known retailer.He left that company to go to a 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 more control in the channel.
C) can be more efficient.
D) can save money.
E) all of these.

Question 41

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

A) emphasize products with a high gross margin.
B) target health-conscious and ethnic consumers with products that would appeal to them.
C) provide a better shopping environment within the store to make it more appealing to customers.
D) offer more private label brands.
E) All of these.

Question 42

__________ are combating competitive pressures by offering fresh food and healthy fast food,tailoring assortments to local marketing,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 43

__________ are likely to target low-income consumers who demand 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 44

If you walk into a __________,you will likely find a broad variety of merchandise,deep assortment,and customer service,with everything divided into what appears to be a collection of specialty shops.

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

Question 45

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 46

If a food manufacturer had a full range of products,in a number of different containers sizes,which kind of store would the company probably NOT choose as a retailing partner?

A) Conventional supermarket
B) Supercenter
C) Warehouse club
D) Convenience stores
E) The manufacturer could choose any of these as a retailing partner.

Question 47

__________ reduce costs and maintain low prices by buying opportunistically from manufacturers with excess inventory,offering limited assortments and operating in low-rent locations.

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

Question 48

As a type of retailer,category specialists are fierce competitors using:

A) a broad assortment of merchandise.
B) highly trained personnel throughout the stores.
C) a complete assortment in a specific category at low prices.
D) highly attractive loyalty programs.
E) All of these.

Question 49

Off-price retailers can purchase merchandise at one-fifth to one-fourth of the original wholesale prices because they do not ask the suppliers for __________.

A) advertising allowances
B) return privileges
C) markdown adjustments
D) delayed payments
E) All of these

Question 50

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

A) a category specialist.
B) a specialty store.
C) a department store.
D) an extreme value retailer.
E) a cross-over warehouse club.

Question 51

__________ offer general merchandise at lower prices and are often found in lower-income urban and rural areas.

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

Question 52

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

A) department stores.
B) category specialist stores.
C) extreme value retailers.
D) specialty stores.
E) All of these.

Question 53

Category killers are also known as:

A) full-line discount stores.
B) big-box retailers.
C) specialty stores.
D) warehouse clubs.
E) extreme value retailers.

Question 54

Compared to conventional supermarkets,warehouse clubs have:

A) an irregular assortment of food and general merchandise.
B) a lower level of service.
C) lower prices.
D) products for both consumers and small businesses.
E) All of these.

Question 55

Supercenters have become the fastest growing retail category by combining broad assortments of groceries and general merchandise products.__________ dominates this category with more than 80 percent of the supercenters in the United States.

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

Question 56

Kohl's,JCPenney,and Bloomingdales are examples of:

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

Question 57

Brian,an industrial equipment sales rep,purchases a 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.Brian probably does the majority of this shopping at a:

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

Question 58

__________ are combating competitive pressures by increasing the amount of exclusive and private label merchandise,strengthening customer loyalty programs and expanding their online presence.

A) Convenience stores
B) Department stores
C) Full-line discount stores
D) Extreme value stores
E) Off-price retailers

Question 59

A manufacturer of high-end products might consider selling products in a warehouse club if:

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 60

The retail category that has experienced sustained growth due to the aging population is:

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

Question 61

Personal selling is particularly important for retailers selling:

A) online services.
B) discount items.
C) products that are complicated or expensive.
D) to younger consumers and in big-box stores.
E) in extreme value retailing.

Question 62

One of the most fundamental activities of retailers is to provide __________,satisfying the needs of their target market.

A) wholesaling opportunities
B) persuasive advertising
C) the right mix of merchandise and services
D) corrective price controls
E) category killing profitability

Question 63

Retailers use __________ to create an atmosphere that will offer a more pleasant shopping experience.

A) music
B) lighting
C) scents
D) color
E) all of these

Question 64

Retailers with strong brand names of their own might operate outlet stores to:

A) sell excess inventory that might have to be sold at markdown prices in regular stores.
B) compete with category specialist stores.
C) keep manufacturers from selling similar items in their own factory stores.
D) train employees who will later be transferred to the main stores.
E) All of these.

Question 65

__________ offer an inconsistent assortment of brand-name merchandise at low prices.

A) Department stores
B) Specialty stores
C) Category killers
D) Off-price retailers
E) None of these

Question 66

Which of the following retail stores would emphasize personal selling the most as part of the firm's promotional efforts?

A) Jewelry store.
B) Convenience store.
C) Liquor store.
D) Second-hand clothing store.
E) Bakery.

Question 67

If you were a marketer for a manufacturer and you wanted to improve revenues from irregulars,production overruns and returns,you would be attracted to using __________.

A) department stores
B) specialty stores
C) category specialists
D) factory outlets
E) supercenters

Question 68

Retailers can gain valuable knowledge about their customers from the transaction process and from:

A) trade industry profiles.
B) store brand / private label brand ratios.
C) multi-channel flow process.
D) the insights of store personnel.
E) end-of-aisle positioning studies.

Question 69

For retailers,promotion refers to:

A) supply chain communication.
B) the relationship between price and product.
C) the image a store attempts to maintain through their pricing strategy.
D) both their in-store environment and their mass media communications.
E) the seasonal discounts offered to move end-of-season items.

Question 70

Retailers address the conflict between consumers wanting or needing only one item and manufacturers wanting to produce and ship in quantity by providing:

A) reciprocity.
B) simplicity.
C) discounting.
D) storage.
E) extreme value labeling.

Question 71

Retailers use __________ to get customers into their stores.

A) in-store promotions
B) specialty product displays
C) supply chain relationships
D) off-price wholesaling
E) mass media advertising

Question 72

It is often difficult for retailers to distinguish themselves from their competitors through the merchandise they carry because:

A) they do not carry enough merchandise.
B) consumers no longer recognize brand equity.
C) big-box food retailers are shifting into specialty store product lines.
D) there is not enough merchandise to go around.
E) competitors can purchase and sell many of the same popular brands.

Question 73

Retailers' coupons,rebates,and online discounts are types of:

A) in-store promotions.
B) specialty product displays.
C) pricing promotions.
D) off-price wholesaling.
E) mass media advertising.

Question 74

__________ are subtle forms of promotion that encourage shopping in retailers' stores.

A) Electronic signs
B) Store credit cards and gift cards
C) Large stocks of popular national brands
D) Quick response and just-in-time delivery systems
E) Extreme value offers and specialty share of the wallet programs

Question 75

The knowledge retailers can gain from their store personnel and customer relationship management databases is valuable for developing:

A) supply chain relationships.
B) extreme value retailing efforts.
C) loyal customers through loyalty programs.
D) global private label brands.
E) multi-channel retailing.

Question 76

One product strategy used by retailers to differentiate themselves from competitors is:

A) the use of private label brands.
B) discount pricing.
C) removing brand labels from their merchandise offerings.
D) JIT product delivery.
E) offering brand name merchandise.

Question 77

Many retail golf stores have driving ranges,some with backdrops showing famous golf courses.These driving ranges allow:

A) wholesalers to evaluate promotional discounts.
B) retailers to improve the shopping experience through an improved product line assortment.
C) customers to increase their share of wallet spending.
D) retailers to avoid competition from knock-off products.
E) customers to try before they buy.

Question 78

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) downstream value stores
E) category specialist stores

Question 79

Consumers visiting __________ often comment that they feel like they are on a treasure hunt,searching for a bargain,due to the ever-changing assortment of merchandise.

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

Question 80

Kim wants to maximize sales to the customers who walk into her store.Of the following,Kim will likely focus on:

A) in-store promotions.
B) billboard and other outdoor advertising.
C) supply chain relationships.
D) off-price wholesaling.
E) mass media advertising.