Exam 12: Retailing and Wholesaling

What types of products may be sold through category killers?

7-Eleven, Stop-N-Go, and Macs, small stores that traditionally have had a primary market of young, blue-collar men, are examples of ________.

Which term refers to a giant specialty store with a very deep assortment of a particular product line?

Voluntary chains are normally based on one unique product or a specific trade name.

Retailers cannot make consistent decisions about product assortment and pricing until they define and profile their markets.

Posco, a limited-service retail chain with 130 stores across the country, is seeking to improve its standing in the market. Since its operations are widespread, altering the store atmosphere significantly is not feasible because of the costs involved. Similarly, upgrading the stores to full-service retail chains would require a large investment of time, effort, and employee training. Assuming that many of Posco Retail's private-label brands are bringing in large revenues, what strategy could Posco Retail use to differentiate itself while matching target shoppers' expectations?

Explain how wholesalers have been able to use technology to cut costs.

In the 1970s, Shipshewana was only a small town with a hardware store, a grain mill, a shoe store, a small restaurant, and a grocery store. Over the next two decades, the small town transformed into an international tourist attraction, attracting thousands of tourists who are intrigued with the lifestyle of Shipshewana's largest population—the Amish. Ben and Mary Miller, having grown up within the Amish faith, decided to capitalize on their town's popularity and their woodworking skills. Their shop, Indiana Wood, began with a small display of handmade hickory rocking chairs, Ben Miller's specialty. But within a few months, the display at Indiana Wood included picnic tables, flower boxes, and small handmade novelty items. No other shop offers the same. Mary Miller decorated the shop's display room with authentic Amish décor and eventually hired three Amish friends to sew and embroider napkins and other textiles per customer request. In addition, two women from the Amish community sought permission from the Millers to display home-baked pastries and jellies on Tuesdays and Wednesdays, the town's busiest tourist days, when Shipshewana attracts swarms of visitors to its flea market on the south edge of town. "Shipshewana is full of specialty shops," Mary Miller stated. "People don't come here to buy things made in China or Taiwan. They want real, Amish-made goods." -Why might Indiana Wood be classified as a full-service retailer?

________ includes all the activities involved in selling goods and services to those buying them for resale or business use.

Wholesalers most likely discourage less-profitable customers by ________.

________ have filled the ultralow-price, high-volume gap by buying at less-than-regular wholesale prices and charging consumers less than retail.

Crunch and Munch is the country's favorite fast-food vendor of fried chicken. Over the years, the company has diversified into providing a larger variety of snacks like hot dogs, burritos, and burgers, but consumers still consider it the best seller of fried chicken. Many parties have approached Crunch and Munch with offers to buy the company, but Crunch and Munch continues to operate through its stores and franchise outlets. What is franchising? Why would franchising be a good contractual system for Crunch and Munch?

GameStop, a video game retailer, offers a deep assortment of video games and video game consoles. GameStop is best described as a(n)________.

Pricing decisions of specialty stores are typically based on low markups on a high volume of products.

In an automated warehouse, orders are fed directly from the retailer's information system into the wholesaler's, and the items are picked up by mechanical devices and taken to a shipping platform where they are assembled.

Manufacturers' agents represent two or more manufacturers of complementary lines.

Allstocks.com is an online retailer that buys furniture, clothing, electronics, and more from a variety of producers at less-than-regular wholesale prices. Allstocks then charges customers less than retail. Allstocks is an example of a(n)________.

Which type of retailer typically carries deep product assortments of narrow product lines?

Three types of shopping centres are regional shopping centres, community shopping centres, and neighborhood shopping centres or strip malls. Describe how they differ from each other.

A growing number of outlet malls now feature upscale brands such as Coach, Polo Ralph Lauren, Dolce & Gabbana, and Giorgio Armani. Which of the following are most likely to protest about this trend to the manufacturers of these brands?