Exam 14: Retailing and Wholesaling

Speciality stores carry wide but shallow assortments.

A distinctive feature of David Jones department store is the number of designer brands across all product lines. David Jones stocks some of the top international and local labels such as Pucci, Versace, Alex Perry, Collette Dinnigan and Lisa Ho. These labels cannot be purchased from any other department store or retail outlet. In this respect, David Jones has successfully bucked the trend through the use of:

Ponsonby Wholesale takes title to the products that it handles. The firm is best classified as a(n):

Which of the following is an example of a limited- service wholesaler?

Beatrice is choosing the types of products and determining how many different product lines she will carry in her educational toy store. Beatrice is making the_________ decision.

Chain stores such as Myer are full- service retailers.

_________have long-term relationships with buyers and make purchases for them. These wholesalers often receive, inspect, warehouse and ship merchandise for their buyers.

As a type of agent, _________take physical possession of products and negotiate sales. Theirs is a short- term relationship, and they tend to work in agriculture.

The Beta Corporation views itself as a manufacturing specialist. The firm has a surplus of one line that it would like to dispose of immediately. The firm is most likely to sell to:

Self- service retailing was pioneered during the Great Depression of the 1930s.

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. The Hamilton Home Shop will offer what level of service?

Retailers that carry a huge selection of merchandise in a single product category at such good prices that they destroy competitors are known as:

The stores that first popularised the concept of offering a wide variety of product lines organised according to type of product are known as: