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M: Marketing, 6e (Grewal)
Chapter 16 Retailing and Omnichannel Marketing
1) It is primarily the retailer's responsibility to make sure customers' expectations are fulfilled.
2) Retailers who advertise that they sell at wholesale prices are wholesalers.
3) Today, large retailers dictate to their suppliers what should be made.
4) Many retailers and some manufacturers use an omnichannel or multichannel strategy in which
they sell in more than one channel, (e.g., store, catalog, Internet).
5) Convenience for the customer is seldom a factor for manufacturers when choosing a retail
partner.
6) The larger and more sophisticated the channel member, the more likely that it will use supply
chain intermediaries.
7) Manufacturers might use selective distribution by allowing only a few selected retail
customers in a territory to sell its products.
8) Consumer packaged-goods companies, such as Procter & Gamble, Pepsi, and Kraft, typically
seek an exclusive distribution strategy.
9) Supercenters are large stores (185,000 square feet) that combine a supermarket with a full-line
discount store.
10) Category specialists are also known as category killers.
11) Dollar General and Dollar Tree are examples of full-price discount retailers.
12) Off-price retailers specialize in having a consistent line of merchandise available at discount
prices.
13) One of retailers' most fundamental activities is providing the right mix of merchandise and
services that satisfies the needs of the target market.
14) One significant potential benefit of the Internet channel is its ability to enable retailers to
provide personalized offerings and services for each customer.
15) Effective omnichannel operations require an integrated CRM (customer relationship
management) system.
16) Choosing the right retailing partners and knowing where target customers expect to find
products are key to a manufacturer's success.
17) When retailers extend their services to the Internet and become omnichannel retailers, they
are able to satisfy a broader range of customers' needs and wants.
18) Omnichannel retailers are able to simply charge the same prices across all channels.
19) Where does retailing fall in the supply chain?
A) at the end
B) in the center
C) first
D) second
E) nowhere
20) Retailing is the primary activity in all of the following situations except
A) buying and eating a fast-food meal.
B) transporting pallets of Daisy brand dairy products.
C) visiting a tile store that sells at wholesale prices.
D) upgrading an airline ticket at the airport.
E) purchasing one case of paper for the office at Office Max.
21) Natalie represents a manufacturer who makes unique, high-end hats. When making a
recommendation about potential retail partners, what should be Natalie's first consideration?
A) What is the appropriate advertising strategy?
B) When will customers want this product?
C) What prices will customers be willing to pay?
D) What assortment of products will customers want?
E) How likely is it for certain retailers to carry this product?
22) Retailing is defined as the set of business activities that
A) focuses on a firm's core values.
B) focuses on transactions, but not relationships.
C) add value to products and services sold to consumers for their personal or family use.
D) separates wholesaling from manufacturing.
E) occurs only in brick-and-mortar space.
23) All of the following are typical channels used by retailers except
A) catalogs.
B) the Internet.
C) wholesalers
D) stores.
E) restaurants and hotels.
24) The key factor distinguishing retailers from other members of the supply chain is that
A) they sell to consumers, businesses, and government.
B) they utilize marketing to reach consumers.
C) they use advertising to generate demand.
D) they rarely engage in personal selling.
E) they sell to customers for their personal use.
25) Wholesalers sell to all of the following except
A) businesses.
B) manufacturers.
C) retailers.
D) consumers.
E) industrial users.
26) All of the following are included in the broad factors manufacturers must consider when
establishing a strategy for getting their products into the hands of the ultimate customer except
A) choosing retail partners.
B) identifying types of retailers.
C) developing retail strategy.
D) managing an omnichannel strategy.
E) lowering production costs.
27) Aaron has designed innovative accessories for hard-core bicycling enthusiasts. He knows
where and how he will make them, and he needs to turn his attention to getting the products to
the customers. As he chooses retail partners, which of the following is least important in this
process?
A) looking at the channel structure
B) determining where target customers will expect to find this product
C) considering characteristics of channel members
D) encouraging new bicycling enthusiasts
E) considering distribution intensity
28) In the past, ________ controlled supply chains.
A) retailers
B) manufacturers
C) government agencies
D) wholesalers
E) distributors
29) Today, ________ dominate supply chains.
A) large retailers
B) manufacturers
C) government agencies
D) wholesalers
E) distributors
30) Today, retailers like Walmart, Home Depot, and Kroger dictate to their suppliers all of the
following except
A) which competitors they should collaborate with.
B) what should be made.
C) how products should be configured.
D) when products should be delivered.
E) what products should cost.
31) Knowing what customers expect is essential. Retailers need to know which manufacturers
their customers prefer, while manufacturers need to know
A) if customers are using credit cards or cash to make purchases.
B) how many employees the retailers have.
C) where their target customers expect to find their products.
D) whether the products will fill a customer's self-actualization needs.
E) whether customers will find the store atmospherics appropriate to the location.
32) Generally, the larger and more sophisticated the channel member, the less likely that it will
A) use supply chain intermediaries.
B) rely on marketing research.
C) use omnichannel marketing.
D) use intensive distribution.
E) be concerned about competitive actions.
33) John used to work for a large, well-known retailer. He left that company to work for a much
smaller company, and in doing so, he discovered that the channel functions were handled very
differently in the smaller firm. Looking back at his experience, he noticed that larger firms
A) perform many different channel functions themselves.
B) have less control in the channel.
C) are generally less efficient.
D) spend more money wastefully.
E) use more independent salespeople.
34) Distribution intensity is commonly divided into three levels:
A) intensive, exclusive, and selective.
B) primary, secondary, and tertiary.
C) administered, vertical, and independent.
D) global, national, and local.
E) corporate, contractual, and independent.
35) Some companies want to get their products into as many outlets as possible, understanding
that the more exposure a product gets, the more it will sell. If this is consistent with the
company's overall strategy, it will choose ________ distribution.
A) primary
B) independent
C) intensive
D) exclusive
E) selective
36) When Creative Pen Company designed a new pen that was particularly comfortable to use, it
wanted to literally get the pen in the hands of as many consumers as possible. Creative Pen will
probably choose ________ distribution for its new product.
A) intensive
B) exclusive
C) selective
D) collective
E) variable
37) Anbinh Fashions is launching a new line of one-of-a-kind designer jewelry. Each piece is
handcrafted, and production volumes will be very low. To emphasize the unique nature of this
jewelry, Anbinh Fashions will most likely choose ________ distribution.
A) luxury
B) selective
C) monopolistic
D) intensive
E) exclusive
38) Heartland Plantation produces organic food products like stone-ground grits and wild rice.
The company has limited production capacity and wants to carefully control where its products
are sold. Heartland will likely choose ________ distribution intensity.
A) luxury
B) variable
C) monopolistic
D) intensive
E) exclusive
39) A(n) ________ distribution intensity helps a seller maintain a particular image and control
the flow of merchandise into an area.
A) intensive
B) widespread
C) selective
D) collective
E) variable
40) If a manufacturer wasn't happy with either intensive or exclusive distribution, a logical
choice, which incorporates some features from both, would be ________ distribution.
A) moderate
B) compromise
C) luxury
D) evolutionary
E) selective
41) Full-line discount, category specialist, and specialty stores are all types of ________
retailers.
A) food
B) general merchandise
C) price sensitive
D) limited demand
E) special appeal
42) If a manufacturer had a full range of products, in a number of different container sizes, which
kind of store would the company be least likely to choose as a retailing partner?
A) conventional supermarket
B) supercenter
C) warehouse club
D) convenience stores
E) full-line discount stores
43) Paul's family has owned and operated a small chain of conventional supermarkets for many
years. Competition from a variety of other kinds of retailers has adversely affected the business.
To address the new competitive reality, Paul wants to apply what he recently learned as a
marketing major and he has recommended that his family's business should
A) emphasize fresh, locally sourced perishables.
B) target the broadest possible customer base.
C) eliminate customer frills and extras.
D) offer fewer private-label brands.
E) offer more national brand packaged goods and few perishables.
44) Supercenters are large stores that combine a supermarket with a full-line discount store.
________ dominates this category with the vast majority of supercenters in the United States.
A) Target
B) Meijer
C) Kmart
D) Kroger
E) Walmart
45) Compared to conventional supermarkets, warehouse clubs have
A) a broader assortment of food items.
B) a lower level of service.
C) slightly higher prices.
D) no products appealing to small businesses.
E) lower annual fees.
46) Which of the following represents the best reason a manufacturer of high-end products might
consider selling products in a warehouse club?
A) There are no high-end shopping centers within a 100-mile radius of the warehouse club.
B) The warehouse club has a good reputation.
C) The manufacturer is trying to increase market share.
D) The manufacturer overestimated demand or has a great deal of returned merchandise from
other retailers.
E) The warehouse club wants to upgrade its image.
