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Principles of Marketing, 17e, Global Edition (Kotler/Armstrong)
Chapter 13 Retailing and Wholesaling
1) ________ includes all the activities involved in selling products or services directly to final
consumers for their personal, nonbusiness use.
A) Franchising
B) Retailing
C) Brokering
D) Wholesaling
E) Disintermediation
2) Many institutions, including retailers, wholesalers, and ________ do retailing.
A) schools
B) government agencies
C) factory farmers
D) manufacturers
E) defense contractors
3) Retailers connect brands with consumers in the ________ phases of the buying process.
A) need identification
B) evaluation of alternatives
C) final
D) information gathering
E) post-purchase
4) ________ involves using in-store promotions and advertising to extend brand equity to "the
last mile" and encourage favorable point-of-purchase decisions.
A) Differentiation
B) Shopper marketing
C) Social media marketing
D) Retailer marketing
E) Segmentation
5) ________ creates a seamless cross-channel buying experience that integrates in-store, online,
and mobile shopping.
A) Shopper marketing
B) Point-of-purchase marketing
C) Social media marketing
D) Virtual marketing
E) Omni-channel retailing
6) Retailers are classified on characteristics including the amount of service they offer, the
breadth and depth of their product lines, how they are organized, and ________.
A) the relative prices they charge
B) the number of locations they have
C) the strength of their Internet presence
D) their sustainability and environmental policies
E) the stability of their financial situation
7) At Neiman Marcus, a first-class department store, customers shop for high-end products and
they are assisted in every phase of the shopping process. Neiman Marcus is a ________.
A) full-service retailer
B) limited-service retailer
C) self-service retailer
D) specialty store
E) superstore
8) ________ is a type of service offered by those retailers who serve customers that are willing
to perform their own "locate-compare-select" process in order to save money.
A) Limited-service
B) Self-service
C) Full-service
D) Specialty-service
E) Wholesaling
9) ________ are retailers that offer sales assistance because they carry more shopping goods
about which customers might need information.
A) Self-service retailers
B) Full-service retailers
C) Off-price retailers
D) Limited-service retailers
E) Specialty-service retailers
10) Which type of retailer usually carries more specialty goods at high prices and is more likely
to provide customers with assistance in every phase of the shopping process?
A) self-service retailer
B) limited-service retailer
C) full-service retailer
D) independent retailer
E) off-price retailer
11) At JCPenney, a mid-level department store, customers shop for moderately priced products
and they are assisted in some phases of the shopping process. JCPenney is a ________.
A) full-service retailer
B) limited-service retailer
C) self-service retailer
D) specialty store
E) superstore
12) Which type of retailer is most likely to require its employees to focus most on assisting
customers as they shop?
A) self-service retailer
B) full-service retailer
C) off-price retailer
D) limited-service retailer
E) convenience retailer
13) Today, ________ are flourishing due to the increased use of market segmentation and
market targeting.
A) chain stores
B) specialty stores
C) superstores
D) discount stores
E) off-price stores
14) Specialty stores carry ________ with ________ within them.
A) only convenience products; shallow assortments
B) narrow product lines; deep assortments
C) narrow product lines; shallow assortments
D) wide product lines; shallow assortments
E) wide product lines; deep assortments
15) Which type of store carries a wide variety of product lines and has been squeezed in recent
years between more focused and flexible specialty stores on the one hand and more efficient,
lower-priced discounters on the other?
A) warehouse clubs
B) department store
C) factory outlet
D) merchant wholesaler
E) category specialist
16) ________ are facing slow sales growth because of slower population growth, increased
competition, and the rapid growth of out-of-home eating.
A) Warehouse clubs
B) Off-price retailers
C) Discount stores
D) Supermarkets
E) Factory outlets
17) Which of the following is the most frequently visited type of retail store?
A) convenience store
B) department store
C) supermarket
D) superstore
E) off-price retailer
18) A ________ is a small store, located near a residential area that is open long hours seven
days a week and carries a limited line of high-turnover goods.
A) convenience store
B) chain store
C) department store
D) supermarket
E) specialty store
19) Which type of store is much larger than regular supermarkets and offers a large assortment
of routinely purchased food products, nonfood items, and services?
A) off-price retailer
B) specialty store
C) factory outlet
D) superstore
E) convenience store
20) Which type of store carries a deep assortment of a particular product line, has
knowledgeable staff, and can be viewed as a giant specialty store?
A) category killer
B) convenience store
C) factory outlet
D) warehouse club
E) off-price retailer
21) Home Depot and PetSmart are examples of ________.
A) factory outlets
B) warehouse clubs
C) superstores
D) off-price retailers
E) category killers
22) Which of the following would be considered a service retailer?
A) factory outlets
B) supermarkets
C) jewelry stores
D) restaurants
E) gas stations
23) ________ retailers in the United States are growing faster than product retailers.
A) Discount
B) Merchant
C) Service
D) Specialty
E) Off-price
24) ________ sell standard merchandise at lower prices by accepting lower margins and selling
higher volume.
A) Merchant wholesalers
B) Discount stores
C) Full-service retailers
D) Limited-service retailers
E) Factory outlets
25) The early ________ cut expenses by offering few services and operating in warehouse-like
facilities in low-rent, heavily traveled districts.
A) department stores
B) hypermarkets
C) discount stores
D) supermarkets
E) full-service retailers
26) As discount stores traded up, ________ have filled the ultra low-price, high-volume gap by
buying at less-than-regular wholesale prices and charging consumers less than retail.
A) off-price retailers
B) specialty stores
C) convenience stores
D) chain stores
E) supercenters
27) Which of the following is NOT a type of off-price retailer?
A) independent
B) factory outlet
C) warehouse club
D) category killer
E) wholesale club
28) ________ are manufacturer-owned and operated stores that offer prices as low as 50
percent below retail on a wide range of mostly surplus, discounted, or irregular items.
A) Category killers
B) Factory outlets
C) Specialty stores
D) Superstores
E) Power centers
29) Which of the following is an off-price retailer that operates in a huge, warehouse-like
facility and offers few frills?
A) warehouse club
B) service retailer
C) convenience store
D) hypermarket
E) superstore
30) ________ are two or more outlets that are commonly owned and controlled.
A) Corporate chains
B) Convenience stores
C) Off-price retailers
D) Independent off-price retailers
E) Power centers
31) As a result of the great success of corporate chains, many independent stores choose to
band together in either a voluntary chain or a ________.
A) factory outlet
B) retailer cooperative
C) wholesale club
D) warehouse club
E) convenience cooperative
32) A ________ is a wholesaler-sponsored group of independent retailers that engages in group
buying and common merchandising.
A) voluntary chain
B) retailer cooperative
C) franchise
D) wholesale club
E) warehouse club
33) McDonald's, Subway, and Jiffy Lube are all examples of ________.
A) voluntary chains
B) retailer cooperatives
C) franchises
D) category killers
E) power centers
34) Which of the following kind of organization best represents a contractual association based
on some unique product or service, a method of doing business, or a trade name or goodwill?
A) corporate chain
B) franchise
C) voluntary chain
D) retailer cooperative
E) warehouse club
35) Sears, Target, and Kroger are examples of ________.
A) voluntary chains
B) retailer cooperatives
C) corporate chains
D) franchise organizations
E) warehouse clubs
36) Independent Grocers Alliance, Do-It Best, and Western Auto are examples of ________.
A) franchise organizations
B) warehouse clubs
C) voluntary chains
D) category killers
E) wholesale clubs
37) GameStop sells only video games and systems, offering a narrow product line with a deep
assortment within that line. GameStop is a(n) ________.
A) department store
B) convenience store
C) category killer
D) specialty store
E) off-price retailer
38) Stop-N-Go , 7-Eleven, and Circle K are examples of ________.
A) department stores
B) convenience stores
C) category killers
D) specialty stores
E) supermarkets
39) Which of the following terms best describes a large, low-cost, low-margin, high-volume,
self-service store that carries a wide variety of grocery and household products?
A) convenience store
B) supermarket
C) specialty store
D) warehouse club
E) factory outlet
40) Overstock.com, a Web seller that buys furniture, clothing, electronics, and more from a
variety of producers at less-than-regular wholesale prices and then charges customers less than
retail, is a(n) ________.
A) specialty store
B) off-price retailer
C) factory outlet
D) wholesale club
E) category killer
Refer to the scenario below to answer the following question(s).
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 were
intrigued by 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 variety.
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 as customers had
requested such items. In addition, two women from the Amish community sought permission
from the Millers to display home-baked pastries and jellies on Tuesdays and Wednesdays,
when Shipshewana attracts swarms of visitors to its flea market on the south edge of town. The
Millers also hired four more people to help customers throughout the purchasing process and to
provide the required product-related information to the customers.
"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."
41) Indiana Wood can be best classified as a(n) ________.
A) full-service retailer
B) industrial distributor
C) self-service retailer
D) warehouse club
E) limited-service retailer
42) Retailers can also be classified by the length and breadth of their product assortments. In
terms of product line, what kind of retailer is Indiana Wood?
A) supermarket
B) specialty store
C) category killer
D) department store
E) convenience store
43) Wholesaling includes all the activities involved in selling products or services directly to
final consumers for their personal, nonbusiness use.
44) Shopper marketing involves focusing the entire marketing process—from product and
brand development to logistics, promotion, and merchandisings—toward turning shoppers into
buyers at the point of sale.
45) Department stores carry narrow product lines with deep assortments within those lines.
46) Self-service retailers serve customers who are willing to perform their own locate-compare-
select process to save time or money.
47) Full-service stores usually carry more specialty goods for which customers need or want
assistance or advice.
48) In recent years, convenience stores have redesigned their stores to closely focus on serving
their primary target market made up of young, blue-collar men.
49) Superstores are much larger than regular supermarkets and offer a large assortment of
routinely purchased food products, nonfood items, and services.
50) Supermarkets sell a limited selection of goods at deep discounts to consumers who pay
membership fees.
51) Supermarkets are located near residential areas and are open long hours, seven days a week.
They carry a limited line of high-turnover goods.
52) Category killers are giant specialty stores that carry a very deep assortment of a particular
line.
53) Off-price retailers pay regular wholesale prices for their merchandise but maintain low
prices by accepting lower margins and selling higher volume.
54) A discount store buys at less-than-regular wholesale prices and charges consumers less than
retail.
55) Independent off-price retailers either are independently owned and run or are divisions of
larger retail corporations.
56) Corporate chains are two or more outlets that are commonly owned and controlled.
57) A voluntary chain is a wholesaler-sponsored group of independent retailers that engages in
group buying and common merchandising.
58) In a retailer cooperative, independent retailers band together to set up a jointly owned,
central wholesale operation and conduct joint merchandising and promotion efforts.
59) Franchises constitute only a small portion of all retail sales in the United States.
60) Retail stores can be classified in terms of several characteristics. Name four of them.
61) Compare and contrast specialty stores and convenience stores.
62) Describe the differences between discount stores and off-price retailers.
63) What types of products do specialty stores carry? Give an example of a specialty store.
64) How have department stores responded to increased competition by specialty stores and
lower-priced discounters?
65) What is a category killer? Provide an example and a description of a category killer.
66) How can discount stores sell merchandise at lower prices?
