Chapter 17
Test Bank
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.
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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 Family Dollar 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.
Multiple Choice Questions
19. Where does retailing fall in the supply chain?
20. Retailing is the primary activity in all of the following situations except
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?
22. Retailing is defined as the set of business activities that
23. All of the following are typical outlets used by retailers except
24. The key factor distinguishing retailers from other members of the supply chain is that
25. Wholesalers sell to all of the following except
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
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?
28. In the past, __________ controlled supply chains.
29. Today, __________ dominate supply chains.
30. Today, retailers like Walmart, Home Depot, and Kroger dictate to their suppliers all of the following except
31. Knowing what customers expect is essential. Retailers need to know which manufacturers their customers prefer, while manufacturers need to know
32. Generally, the larger and more sophisticated the channel member, the less likely that it will
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
34. Distribution intensity is commonly divided into three levels:
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.
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.
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.
38. Heartland Plantation produces organic food products like stone-ground grits and wild rice. The company has limited production capacity and wants
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39. A(n) __________ distribution intensity helps a seller maintain a particular image and control the flow of merchandise into an area.
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.
Feedback: Selective distribution is a compromise between intensive and exclusive distribution.
41. Full-line discount, category specialist, and specialty stores are all types of __________ retailers.
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?
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
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and he has recommended that his family’s business should
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.
45. Compared to conventional supermarkets, warehouse clubs have
46. Which of the following represents the best reason a manufacturer of high-end products might consider selling products in a warehouse club?
47. __________ are combating competitive pressures by offering fresh food and healthy fast food, tailoring assortments to local markets, opening
locations closer to where consumers work and shop, and adding new services.
48. Brian, an industrial equipment sales rep, purchases a quick snack to eat on the way to work. He buys lunch while on the road visiting customers, and
grabs bread and milk on the way home when he stops to buy gas. Brian probably does the majority of this shopping at a
49. If you walk into a(n) __________, you will likely find a broad variety of merchandise, deep assortment, and customer service, with everything
organized into distinct departments for displaying merchandise.
50. Macy’s, Kohl’s, JCPenney, and Nordstrom are examples of
51. __________ are combating competitive pressures by providing better value with private-label merchandise; adding new value-added services such
as online ordering and delivery options; and providing a better shopping experience.
52. Retailers that offer a broad variety of merchandise, limited services, and low prices are known as
53. If you’re a manufacturer, and you want to showcase your product in a store that has a narrow but deep selection of merchandise and where expert
sales associates can assist customers with their selections, you’d most likely choose
54. If you are a marketer for a manufacturer, and the marketing mix for your product focuses on very specific market segments, you’d like to sell your
product through
55. Of the following retailers, the best example of a category killer is
56. As a type of retailer, category specialists offer
57. __________ offer a limited assortment of general merchandise at very low prices and are often found in lower-rent locations.
58. __________ reduce costs and maintain low prices by buying opportunistically from manufacturers with excess inventory, offering limited
assortments of household goods and groceries, as well as health and beauty aids.
59. __________ are likely to target low-income consumers who demand national brands, but cannot afford to buy large-sized packages.
60. __________ can purchase merchandise at substantial discounts from the original wholesale prices because they do not ask the suppliers for
advertising allowances or markdown adjustments.
61. __________ offer an inconsistent assortment of brand-name merchandise at low prices.
62. Because of the way __________ buy merchandise, customers can never be confident that the same merchandise will be in stock each time they visit
the store.
63. Higher-income consumers visiting __________ feel like they are on a treasure hunt, searching for a bargain.
64. If you were a marketer for a clothing manufacturer and you wanted to improve revenues from irregulars, production overruns, and returns, you
would be attracted to using
65. Considering what you know about their target markets and merchandise, which of the following retailers is least likely to have an online presence?
66. One of the most fundamental activities of retailers is to provide __________, satisfying the needs of their target market.
67. Retailers address the conflict between consumers wanting or needing only one item and manufacturers wanting to produce and ship in quantity by
providing
68. It is often difficult for retailers to distinguish themselves from their competitors through the merchandise they carry because
69. One product strategy used by retailers to differentiate themselves from competitors is
70. ________ must always be aligned with other elements of a retailer’s strategy in order to accurately define the value of the product and a retailer’s
image.
71. For retailers, promotion refers to