Deck 17: Retailing and Multichannel Marketing

Question 1

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

Answer 1

True

Question 2

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

Answer 2

A

Question 3

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

Answer 3

True

Question 4

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

Question 5

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

Question 6

The only consumer advantages to shopping in a brick-and-mortar store are browsing and the ability to touch and feel the products.

Question 7

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 8

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 9

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

Question 10

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

Question 11

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

Question 12

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 13

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

Question 14

Consumers prefer to research complicated products on the Internet rather than talking directly to sales associates in a retail store.

Question 15

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

Question 16

Category specialists are also known as category killers.

Question 17

Natalie represents a manufacturer who makes unique,high-end hats.When making a recommendation about potential retail partners,what should be Natalie'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 18

Effective multichannel operations require an integrated CRM (customer relationship management)system with a centralized customer data warehouse.

Question 19

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

Question 20

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

Question 21

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 is LEAST important in this process?

A) Look at the channel structure
B) Determining where target customers will expect to find this product
C) Considering characteristics of channel members
D) Encouraging new bicycling enthusiasts
E) Considering distribution intensity

Question 22

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 23

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 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 a customer's self-actualization needs.
E) whether customers will find the store atmospherics appropriate to the neighborhood or location.

Question 25

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) corporate,contractual,and independent.

Question 26

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 27

Today,retailers like Walmart,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

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 rarely engage in personal selling.
E) they sell to customers for their personal use.

Question 29

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) restaurants and hotels

Question 30

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

Question 31

Wholesalers sell to all of the following EXCEPT

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

Question 32

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 33

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

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

Question 34

Today,__________ dominate supply chains.

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

Question 35

John 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 36

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) Developing retail strategy
D) Managing a multichannel strategy
E) Lowering production costs

Question 37

In the past,__________ dominated supply chains.

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

Question 38

__________ 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 39

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 40

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) only occurs in brick-and-mortar space.

Question 41

__________ can purchase merchandise at one-fifth to one-fourth of 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 42

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) convenience stores.

Question 43

__________ 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) Full-line discount stores

Question 44

Compared to conventional supermarkets,warehouse clubs have

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

Question 45

__________ 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 46

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

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

Question 47

__________ offer a limited assortment of general merchandise at very low prices and are often found in lower-rent locations.

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

Question 48

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 49

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

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

Question 50

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 51

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 warehouse club.

Question 52

Paul'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,Paul 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 53

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) a limited,but complementary merchandise assortment.

Question 54

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 55

If a food manufacturer had a full range of products,in a number of different container 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 56

__________ 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 57

__________ reduce costs and maintain low prices by buying opportunistically from manufacturers with excess inventory,offering limited assortments of household goods,groceries,as well as health and beauty aids.

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

Question 58

Which of the following 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 59

Brian,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.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 60

__________ 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 61

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 62

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) multichannel flow process.
D) the insights of store personnel.
E) end-of-aisle positioning studies.

Question 63

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 64

If you were a marketer for a clothing 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) off-price retailers.
E) supercenters.

Question 65

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) services retailers
E) category specialist stores

Question 66

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 67

__________ 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 68

Henri wants customers in his specialty tobacco store to feel at home,as if they were in their personal smoking den.He uses lighting,music,and soft chairs to create a "look and feel" that will get customers to relax and return.Henri is focusing on

A) price.
B) place.
C) policy.
D) promotion.
E) product.

Question 69

Kim wants to maximize sales to the customers who walk into her store.Of the following,Kim will most 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.

Question 70

Retailers in expensive resort areas often find it difficult to hire quality salespeople.In a situation like this,some retailers augment or even replace the sales and customer service functions with

A) expanded hours of operation.
B) continuous use of promotions.
C) in-store kiosks or self-checkout lanes.
D) special attention to placement of products in their stores.
E) positioning relative to competing firms in the area.

Question 71

Unusual and exciting displays like Bass Pro Shops' climbing wall and stocked aquarium are examples of

A) promotional discounts.
B) mass media gimmicks.
C) mobile marketing.
D) in-store promotions.
E) co-op advertising.

Question 72

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 73

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 74

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 75

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 76

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 77

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 78

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) multichannel retailing.

Question 79

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 80

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

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