Exam 14: Retailing and Wholesaling

Wholesalers add value to the distribution channel by performing a number of functions. Which of the following is NOT one of the functions normally performed by wholesalers?

In general, limited service retailers such as hardware or Manchester stores provide more sales assistance.

Speciality stores such as Toys 'R' Us are often called category killers because:

You have been hired to be the retail manager for a wealthy lottery winner who wants to open a retail store. Your first task is to design the new product assortment. Why is the product offering so important to the success of the enterprise? What information should you use in selecting the product offering? Should you consider product depth and width when selecting the product offering?

Most convenience goods are sold through _________retailing.

A category killer such as Bunnings hardware stores carries _________product lines.

Wholesalers who have a limited line of fast- moving goods, sell to small retailers for cash, and normally do not deliver are known as:

A store that carries a narrow product line with a deep assortment within that line is called a:

The type of retail store that first introduced the self- service concept is called a:

Supermarket, discount and warehouse retailing are combined under one roof in:

Some retail stores are designed to allow customers to easily locate merchandise which they pay for at centrally- located checkouts before loading the goods in their own cars. This approach to retailing is best described as:

Lombards market themselves as the "paper people" and sell a wide range of paper based products including party supplies, catering supplies and stationery. Approximately 70 per cent of Lombard's customers are resellers such as cafés, restaurants, hotels, caterers and party planners who purchase paper products for use business use. Given that some 20 per cent of its business comes from the customers purchasing for their own personal use, Lombards cannot be classified as a wholesale operation.

When Bill goes to do his grocery shopping for the week, he also likes to drop off his dry cleaning and obtain cash out using his debit card. He would also like the idea of getting his shoes repaired there while he is shopping. Bill would enjoy doing his grocery shopping at 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 would be the best location for this outlet, given Elliott and Robin's perspective on their business?

Wholesalers rely primarily on sales promotions to achieve their promotional objectives.

A limited service wholesaler who performs a delivery function by delivering food products to convenience stores, mill- bars, small supermarkets, hotels and cafeterias is known as a:

In 2001, Apple opened the first of a series of concept stores designed to exhibit Apple computers in a natural usage environment. Merchandise is displayed in "solution zones" for hands- on, real world use and visitors are encouraged to use computers to access the Internet or send emails. There are sit- down theatres where consumers can participate in demonstrations or receive instruction. There is a "Genius Bar" where consumers can ask questions and solve technical problems. For the consumer, perhaps the most important feature of the Apple Concept store is the hands- on use. Computers displayed in Apple stores are hooked up to camcorders, digital cameras, iPods, music keyboards and other peripherals so the visitor can actually create something, burn it to a CD/DVD, and get a feel for the hardware and software. Apple concept stores are best described as:

In the face of competitive pressure and changes in the way that retailers purchase merchandise, long-term survival for wholesalers depends on:

Which of the following is the store that is BEST described as a large, low- cost, low- margin, high- volume, self- service retailer?

The set of activities involved in selling goods or services to the consumer for personal or non- business use is termed: