Exam 13: Retailing

Off-price retailers differ from other discount stores in the merchandise they carry.While most other discounters offer a predictable assortment of merchandise,the styles and brands offered at off-price retailers change frequently because they buy only what is currently available at a good deal.

Banana Republic stores are usually built in shopping centers,but in a few cities the company chose to build a stand-alone store.Its freestanding store entices customers to shop because it _____.

Apple Stores Apple Inc.opened its first Apple Store in 2001 and currently has hundreds of stores spanning several countries.Many of the Apple Stores are inside malls,but Apple also has several free standing stores they call their flagship stores,with each looking a little different on the outside.These are located in New York City,Boston,Los Angeles,Chicago,San Francisco,Montreal,Tokyo,and Osaka. The store in New York City is a glass cube with a glass cylindrical elevator and spiral staircase that leads to an underground store.Inside they have long tables displaying products ranging from the iMac,MacBook Air,iPods,printers,cameras,and other accessories.All these products are accessible to customers who can try them out and ask various questions of informed associates.The walls are mostly metallic and the signs are all backlit. All stores have a Genius Bar where a customer can receive technical advice or set up service and repair for their products.To address the needs of the many iPod users,some stores,such as the New York store,have set up a separate iPod Bar where customers can get their own technical assistance.They also have an iMac station for kids who want to try out games and learning products and a theatre for workshops,product training sessions and special presentations. Apple introduced the handheld Easy Pay system where customers don't have to wait in line to purchase products and with a simple click of a paperless,handheld credit card scanner,the employee brings the cash register to the customer.Items can be rung up anywhere on the show room floor.Apple plans to open several more stores in the years to come. Apple also has its online store.At its web site a customer can order any Mac or iPod product,plus a large variety of accessories.In addition to its product offerings,a customer can watch a demonstration of how products work or check out the latest Mac ads or news. -Refer to Apple Stores.What method of nonstore retailing does Apple take advantage of through the use of its Web site?

Diaz John Diaz immigrated to Tallahassee from Cuba in the 1980s.He set up a coffee shop called Diaz in a small upper-middle-class neighborhood.It rapidly became popular because of the wonderful coffee it brewed.Soon Diaz was selling the finest coffees from around the world,plus coffee-making necessities such as grinders and brewers.Within ten years,Diaz was operating a lucrative mail-order business in addition to his coffee shop. Upon entering the shop,the first thing the customer sees is a countertop crowded with all of the machinery needed for making a perfect cup of coffee.Marble-topped tables are set in cozy nooks with overstuffed chairs.Bookshelves on one wall hold books about coffee for patrons to read while they sip.The smell is intoxicating to a real coffee lover.Coffee drinkers can take home a pound when they leave.The store carries all types of coffee from $300 per pound Kopi Luwak from Sumatra to Brazilian Cerrado for $8 a pound. -Refer to Diaz.Customers of Diaz's coffee shop can purchase coffee,coffee makers,mugs,chocolate,music CDs,and all sorts of unique gift items.Diaz is practicing:

Providing great customer service is one of the most challenging elements in the retail mix because customer expectations for service are so varied.

A retail establishment can be classified according to its ownership,level of service,product assortment,and price.

There are several types of retail stores,each offering a different product assortment,service level,and price level,according to the shopping preferences of its customers.Name eight types of retailers.For each type,indicate the level of service,price level,and width of product assortment.

All of the following are factors in creating a store's atmosphere EXCEPT:

Glen's Safety First! sells a huge assortment of firefighting equipment at greatly reduced prices.It offers customers few services and competes on the basis of moderate to low prices on the large quantities of merchandise it stocks.Glen's Safety First! is an example of a:

A specialty store is considering locating a retail store in a regional shopping mall.Which of the following is NOT a likely benefit associated with a locating in a mall?

Interactivity is one of the new developments in retailing.In retailing,interactivity refers to:

James wants to open a small store that offers only products,knowledge and advice for those who like to build Hot Rods,Street Rods,and refurbish classic cars.Which of the following types of stores would most likely support an effective launch of his business idea?

Anchor stores (or generator stores):

Tiffany owns a gift shop that carries clothing and memorabilia of local high school teams as well as home decor objects.She is the sole owner of the store,so in terms of ownership,her store would be classified as a(n):

When opening a new retail operation,the retailer needs to consider all of the following factors EXCEPT:

_____ is the use of a telephone to sell directly to customers.

The manufacturer of Cutco knives uses students as salespeople.The salespeople go into customers' homes and demonstrate the product and the sales transactions usually occur in a home setting.This form of nonstore retailing is called:

Retailing can be defined as all activities directly related to the sale of goods and services to the ultimate consumer for personal,nonbusiness use.

The two types of franchising are target market franchising and geographic franchising.

Susan Adams makes children's clothing.She is also the sales representatives and sets up parties and fashion shows at homes of mothers to demonstrate the quality and value of her clothing.Susan is using: