Marketing Chapter 11 Topic Retail Outlet Classifications Wholesale Clubs Are The Same Thing Membership Warehouses

11–33

Blooms: Understand

Difficulty: 2 Medium

Learning Objective: 11-04 Describe the major types of nonstore retailing.

Topic: Nonstore Retailing

101. Reilly’s law of retail gravitation states that the size of a trading area ______ as population density decreases.

102. Regarding store location, a(n) ______ store has no adjacent retailers with which it shares traffic.

103. Kelly likes shopping in her city’s downtown area. It has many fashion stores, gift and specialty shops, and several

restaurants where she can eat. This describes a(n) ______ business district.

104. Retail centers that feature upscale retail operations as well as fine dining and entertainment options and are located within

affluent neighborhoods are referred to as ______ shopping centers.

105. In order to succeed, a retailer must communicate an ______ that is clear, distinctive, and consistent.

106. Consumer views of a retailer’s image are heavily grounded in the store’s ______ -the psychological feeling a person gets

when visiting the retail store, catalog, vending machine, or website.

107. Retail ______, which are the sensory-based stimuli within the retailer’s environment, have been shown to contribute greatly

to people’s shopping enjoyment.

11–35

Blooms: Understand

Difficulty: 2 Medium

Learning Objective: 11-06 Discuss key strategic issues in 21st-century retailing.

Topic: Retailing Strategy

108. A store traffic pattern in which display and aisles are laid out in a rectangular grid is a ______ traffic flow pattern.

109. Payments made by manufacturers to retailers to ensure that products are preferentially displayed by the retailer are called

______ allowances.

110. By using _____ mapping, retailers are better able to design customer experiences that move the consumer from

awareness and discovery to purchase, use, and advocacy of a good or service.

111. Wholesalers provide goods and services to other businesses as well as to consumers.

112. Over 95 percent of retailers operate more than one store.

113. Low per-transaction revenue means that retailers need to use advertising and sales promotions to increase store traffic.

114. The majority of retail operations are operated as part of a larger network.

115. Since retailer cooperatives are wholesale-sponsored, there tends to be much greater consistency across stores in terms of

merchandising and promotions.

116. An assortment includes both the breadth of product categories and the depth of product lines offered within each category.

117. Wholesale clubs are the same thing as membership warehouses.

118. Because they do not have aisles of unrelated products, off-price retailers can also offer a more intimate and intuitive

shopping experience.

119. The decline in department store retail sales can be attributed, in part, to the growth of the Internet and B2C e-commerce.

120. Dollar discount stores and closeout chains are both types of off-price retailers.

121. According to Forrester Research, almost half of the goods and services that consumers ultimately purchased in a store

were actually influenced by online activity.

122. A disadvantage of catalog marketing is the difficulty in targeting the right customers and tracking their activity.

123. Direct selling works best for individuals who have difficulty building up a reliable network of customers.

124. According to Reilly‘s law of retail gravitation, people in less-populated areas are less willing to drive a longer distance to do

their shopping.

125. An important point that retailers should keep in mind regarding choosing a retail location is that distance or driving time may

not correspond with individuals’ perceptions of distance or time.

126. A planned shopping center is designed to be operated as a unit, with tenants selected to limit direct competition.

127. In an economic downturn, it is virtually impossible for a retail store to thrive.

128. It is not necessary for a retailer to work on building and maintaining a positive store image—it usually happens on its own.

129. A store’s lighting, music, and displays are all part of its atmospherics.

130. When arranging merchandise for sale, the optimal location for a retailer’s most profitable products are at the end of an

aisle, at eye-level on a shelf, or at the check-out counter.

131. Describe the key channel functions retailers perform that create efficiencies for their suppliers and value for the end–

consumer.

132. What are the three factors that differentiate retail marketing from marketing practiced in other types of business?

133. What is “level of service” and describe the varying service levels retailers may provide.

134. Explain the difference between product breadth and product depth.

11–42

Blooms: Remember

Difficulty: 1 Easy

Learning Objective: 11-02 Explain the four ways in which marketers classify retailers.

Topic: Retail Outlet Classifications

135. Describe the difference between full line discount stores and specialty discount stores and provide examples of each.

136. What advantages are there for a manufacturer to open a factory outlet store?

137. What are the limitations of online retailing?

11–43

138. Describe the three different location types available to a retailer.

139. What is “journey mapping” and how is it used by retailers?

AACSB: Reflective Thinking

Blooms: Understand

Difficulty: 2 Medium

Learning Objective: 11-06 Discuss key strategic issues in 21st-century retailing.

Topic: Retailing Strategy

Chapter 11 Test Bank Summary