79 terms

Ch 14

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Cyber Monday" takes place on
the first Monday after Thanksgiving when consumers shop from their broadband connections at work on their first day back after the holiday.
One reason for the growth of Cyber Monday and online shopping in general is
prices are almost always lower online since there is greater competition.
One reason for the growth of Cyber Monday and online shopping in general is
large retailers such as Amazon, Home Depot and Wal-Mart have given online shopping a lot of visibility
Mpire.com helps consumers by
tracking the price of products like TVs, clothing, and books to let consumers know if prices are increasing or decreasing.
All activities involved in selling, renting, and providing goods and services to ultimate consumers for personal, family, or household use are referred to as _________.
retailing
Retailing's economic value is represented by __________ as well as by the total amount of money exchanged in retail sales.
The people employed in retailing
The __________ provided by retailers create value for consumers.
utilities
The ability to shop over the Internet 24/7 provides consumers with __________ utility.
time
One of the best-run banks in the United States, Wells Fargo reaches retail customers through 3,339 branch banks, 561 in-store mini banks, a worldwide network of 6,960 ATMs, and its online banking service. The online service has millions of users. Which utility does Wells Fargo best provide in this example?
place
Enterprise car rental agency differentiates itself from other similar agencies by providing a delivery service. This delivery service is particularly valuable to someone who has been left stranded without transportation. By making it easy to rent temporary transportation, Enterprise is emphasizing which utility?
possession
A restaurant that offers food made exactly to each customer's preference is providing its customers with ________ utility.
form
There are two general types of franchises:
business-format franchises and product-distribution franchises.
A franchise where the franchising company uses an agreement method for the distribution of its products is known as a
product-distribution franchise
In this type of franchising, the company uses the agreement as a method for the distribution of its products. Chrysler, Ford, and Coca-Cola gives the franchisee the right to use the brand name of the franchisor to sells its products.
product-distribution franchise
There are three key methods of classifying retail operations
form of ownership, level of service, and merchandise line.
Which method of classifying retail outlets would be most appropriate for describing all franchise operations?
form of ownership
A method of classification that describes how many different types of products a store carries and in what assortment is referred to as _________.
merchandise line
One of the most common forms of retail ownership is the __________ business owned by a person.
independent retailer
A form of ownership that involves multiple outlets under common ownership is referred to as a(n)
corporate chain
Bon Marche, Lazurus, Burdines, Famous Barr, Filenes, Foleys, and now 40 Bloomingdale's are all part of __________ corporate chain.
Macy's
Independently owned stores that band together to act like a chain is referred to as _________.
contractual systems
What type of contractual system describes a situation where assistance in selecting the location, setting up the store or facility, advertising, and training personnel is provided?
franchising system
McDonald's, iHop, and Subway are all _________.
business-format franchises
Loehmann distinguishes themselves as preeminent, upscale, off-price specialty retailers for name band designer fashions. They offer in-season merchandise and frequent new arrivals at prices 30% to 65% less than department store prices. Loehamann retailers provide consumers with
Limited service
General merchandise stores such as Walmart, Kmart, and Target are usually considered as _________ outlets.
limited service
Retail outlets vary by their merchandise lines, the key distinction being the __________ and __________ of the items offered to customers.
breadth; depth
The variety of different items a store carries is referred to as
breadth of product line
When a store carries a large assortment of each product item it is referred to as
depth of product line
Victoria's Secret, a nationwide chain, carries great depth in women's lingerie. Victoria's Secret is an example of a(n)
single-line store
A drug store that sells pharmaceuticals, beauty aids, camera equipment, nonperishable grocery items, and automobile motor oil is an example of a retailer using
● dual channel marketing.
scrambled merchandising
Retailing that occurs outside a retail outlet, such as through direct marketing, direct selling, and automatic vending is referred to as _________.
nonstore retailing
Which of the following is an example of nonstore retailing?
vending machines
Which form of retailing is Best Buy using in airports to distribute its cell phone and computer accessories, digital cameras, flash drives, and other consumer electronics?
vending machines
Direct mail and catalog retailing are examples of _________.
nonstore retailing
Currently, the three largest television home shopping programs in the United States are
QVC, HSN, and ShopNBC.
Several television shopping programs are developing online video platforms and interactive technology that allows viewers to place orders
with their remote control rather than the telephone
Which type of utility is created by online shopping?
Time
Walmart recently introduced "site-to-store" service that
Allows customers to order online and pick up the order without a shipping fee at the store of their choice
Experts suggest that online retailers should think of their Web sites as __________ if they are to attract and retain customers.
dynamic billboards
As the use of telemarketing grows, _________, ethical guidelines, and industry standards have become a topic of discussion among consumers, Congress, the Federal Trade Commission (FTC), and businesses.
consumer privacy
Consumers who do not want to receive telephone calls related to company sales efforts can
place their numbers on the National Do-Not-Call Registry
Sales of goods and services to consumers through personal interactions and demonstrations in their home or office are referred to as _________.
direct selling
A customer was unable to go to the store on her own to buy gifts for the holidays. She contacted a Tupperware representative who came to her home, showed her not only catalogs but actual products, answered all her questions, and had all the customer's gifts sorted and delivered. This is an example of _________.
direct selling
Growth in the direct-selling industry is the result of two trends. First, many direct selling retailers are expanding into markets outside the United States. The second trend is
there are a growing number of companies that are using direct selling to reach consumers who prefer one-on-one customer service and a social shopping experience rather than online shopping or big discount stores.
Growth in the direct-selling industry is the result of two trends, (1) there is a growing number of companies that are using direct selling to reach consumers who prefer one-on-one customer service and a social shopping experience rather than online shipping or big discount stores, and (2)
many direct selling retailers are expanding into markets outside of the United States.
The activities related to managing the store and the merchandise in the store, which includes retail pricing, store location, retail communication, and merchandise are referred to as _________.
retailing mix
When developing marketing strategies, marketing managers use the elements of the marketing mix, which includes product, price, place, and promotion. The marketer can effectively control these elements to develop marketing strategies and to change those strategies in response to environmental changes. In a similar fashion, when developing retailing strategies, marketers use what is called the retailing mix, which includes
retail pricing, store location, retail communication, and merchandise
Markup refers to
the amount added to the cost the retailer paid for a product to reach the final selling price.
Discounting a product when the product does not sell at the original price and an adjustment is necessary, is referred to as _________.
markdown
Many retailers take a markdown as soon as sales fall off to free up valuable selling space and cash. This concept of retail pricing is referred to as _________.
timing
Emphasizing consistently low prices and eliminating most markdowns or sales is referred to as a(n) __________
strategy everyday low pricing
Many retailers advocate a(n) __________ strategy, a pricing strategy that may not offer the lowest prices but does try to create value for customers through its service and the total buying experience.
Everyday fair pricing
A variation of off-price retailing includes __________ stores.
outlet stores
Most stores today are near several others in one of five settings: the central business district, the regional center, the community shopping center, power center, or _________.
the strip mall
Regional shopping centers refer to
50 to 150 stores that typically attract customers who live or work within a 5-to 10-mile range, often containing two or three anchor stores
Large shopping areas often contain two or three __________ stores, which are well-known national or regional stores such as Sears, Saks Fifth Avenue, and Bloomingdale's.
anchor
Strip mall refers to
cluster of neighborhood stores to serve people within a 5-to 10-minute drive.
Multichannel retailer refers to
retailers that utilize and integrate a combination of traditional store formats and nonstore formats such catalogs, television, and online retailing
The music played in the grocery store has a slow tempo to get shoppers to stay longer and hopefully put more items in their cart. Music is part of the grocery stores _________.
atmosphere
An approach to managing the assortment of merchandise in which a manger is assigned the responsibility for selecting all products that consumers in a market segment might view as substitutes for each other, with the objective of maximizing sales and profits in the category, is referred to as _________.
category management
An indicator of how effectively retail space is used to generate revenue is a common financial indicator called
sales per square foot
Boston Pizza wants to determine how effective their retail format is compared to other pizza establishments in the local area. The calculation for this indicator is arrived at by determining the __________ for their store and comparing it against the same indicator for all of the other local pizza outlets.
same store sales growth
The description of how new retail outlets enter the market is referred to as the _________.
wheel of retailing
Many fast food retailers, including McDonald's and Burger King, have followed a predictable pattern of how new forms of retail outlets enter the marketplace. McDonald's has evolved from a relatively simple hamburger joint with low margins, low prices, limited product offerings, and low institutional status to a worldwide chain with higher margins, high status, and a diverse list of products. This evolution of McDonald's restaurants is consistent with the
wheel of retailing
The process of growth and decline that retail outlets, like products, experience which consists of the early growth, accelerated development, maturity, and decline stages, is referred to as
retail life cycle
Retail life cycle refers to
the process of growth and decline that retail outlets, like products, experience which consists of the early growth, accelerated development, maturity, and decline stages
The four stages of the retail life cycle are
early growth, accelerated development, maturity, and decline
Which type of outlet is most likely in its early growth stage?
online retailers
Which type of outlet is most likely in its maturity stage?
convenience stores
Which type of outlet is most likely in its decline stage?
business-district retailers
Both market share and profit achieve their greatest growth rates during which stage of the retail life cycle?
accelerated development
The key goal for retailers in the accelerated development phase of the retail life cycle is to
establish a dominant position in the fight for market share.
Discounting generally takes place during which stage of the retail life cycle?
decline
Independently owned firms that take title to the merchandise they handle are referred to as
merchant wholesalers
General merchandise wholesaler refers to
wholesalers that carry a broad assortment of merchandise and perform all channel functions.
The wholesalers most prevalent in the hardware, drug, and clothing industries would be _________.
full-line wholesaler
Which type of wholesaler offers a relatively narrow range of products but has an extensive assortment within the product lines carried?
specialty merchandise wholesaler
The four major types of limited-service merchant wholesalers are cash and carry wholesalers, drop shippers, truck jobbers and _________.
rack jobbers
The four major types of limited-service merchant wholesalers are cash and carry wholesalers, drop shippers, truck jobbers and _________.
rack jobbers