Exam 14: Retailing and Wholesaling

Compare and contrast supermarkets and convenience stores. Name several characteristics of each store in your answer.

Every night at about 1:00 am, Nadine stops by the Jiffy Store near her house. She often buys milk or bread while she's there even though the prices at the Jiffy Store are higher than at her local supermarket. The Jiffy Store is an example of a:

David Jones is a chain of stores in Australia. Each store carries several product lines, and each line is managed separately by a specialist buyer or merchandiser. David Jones offers many types of customer service, and its prices reflect that fact. David Jones is an example of a:

Wholesalers that are owned by farmer- members who assemble farm products to sell in local markets are known as:

Each line in a department store is operated as a separate department managed by specialist buyers or merchandisers.

In general, wholesalers pay as much attention to promotion and location as retailers do.

Many retail stores are using technology to provide superior customer service. Which of the following is NOT a technology used to provide in- store customer service?

Drop shippers are primarily transportation experts who facilitate shipment but do not take title to the goods they sell.

Well- known manufacturers such as Calvin Klein and Levi Strauss have decided the most profitable way to dispose of out- of- season and irregular stock is to open stores and sell their own merchandise. This is the retail strategy of:

Regional shopping centres are planned and designed to serve customer needs much like a mini- downtown.

Commission merchants are agents that, unlike most agents, take possession of the products they help sell.

Which of the following is NOT a part of a store's atmosphere?

Due to the inroads made by national brand advertisers, consumers can find popular brands in most retail outlets-from department stores through to mass- merchandise discount stores. Thus, it has become more difficult for retailers to differentiate by offering exclusive merchandise. Discuss the ways that retailers can differentiate their outlets from competitors. Use appropriate examples from your own experience to illustrate your answer.

Costco Wholesale Corporation opened its first Australian outlet in Melbourne's Docklands in 2009 and now has outlets in Canberra and Sydney. Costco's business model is to offer deep discounts and a wide product assortment which customers can purchase in bulk. Costco's approach to retailing is that members of the public are only entitled to shop at Costco outlets after paying a $60 annual subscription fee. Costco would be BEST described as a(n):

A __________ is a free- form corporation that combines several diversified retailing lines and forms under central ownership, along with integration of distribution- and- management functions of those retailing lines and forms.

The agent who takes physical possession of products and negotiates sales is called a:

Z- Force has opened a new store that is over 200,000 square feet and combines a supermarket and discount department store. The store must generate a volume of over $1,000,000 per week in sales just to break even. This new store is an example of a:

Mini Case 14- 1 Elliott and Robin want to open a store and call it The Hamilton Home Shop. They have decided that it will feature household items such as decorative vases and planters, sheets and towels, bathroom accessories, and pictures. Their offerings will change from week to week depending on what's available from their wholesalers. Initially, they plan to sell irregulars and factory overruns, but they are flexible. Elliott has a real knack for spotting items others admire. People are always telling him what good taste he has. They must, however, be careful about how they spend the small amount of capital they have. One of their goals is to find an inexpensive location. Once the store is up and operational, they hope they can use their cash flow to meet expenses. They plan to have no more than two full- time employees other than themselves and possibly some part- time help as the need arises. Customers will be allowed to make their own selections, but either Elliott or Robin will be there if they request some advice. Elliott and Robin plan on letting their customers use credit cards. They also feel it is important to have a generous merchandise return policy. Because Elliott and Robin are retailing novices, they want to join a retail organisation for advice and support and to share the costs of promotions. Elliott and Robin think that word- of- mouth will be their most powerful advertising tool. They expect to attract customers that appreciate the merchandise found at major department stores and mall speciality stores, but who would like the lower prices. -Refer to Mini Case 14- 1. What type of wholesaler would best serve The Hamilton Home Shop?

A contractual association between a manufacturer, wholesaler, or service organisation and independent business people is known as a:

Retailers can position themselves at three levels of service: self- service, limited service and full service. Briefly discuss those levels.