978-1337407588 Chapter 14 Solution Manual Part 1

subject Type Homework Help
subject Pages 9
subject Words 3763
subject Authors Carl Mcdaniel, Charles W. Lamb, Joe F. Hair

Unlock document.

This document is partially blurred.
Unlock all pages and 1 million more documents.
Get Access
page-pf1
Chapter 4: Retailing
1
Review and Assignments for Chapter 14
Review Quesons
1. Discuss the possible marketing implications of the recent trend toward supercenters,
which combine a supermarket and a full-line discount store.
Supercenters have been created to meet the needs of today’s customers for convenience,
variety, and service. Customers can truly have one-stop shopping for both food and
2. Explain the function of warehouse clubs. Why are they classified as both wholesalers
and retailers?
Although students’ answers will vary, they should address some of these points.
Wholesale clubs sell a limited selection of fast-moving merchandise including brand
3. What advantages does franchising provide to franchisers as well as franchisees?
Benefits for franchisees include the use of a known name, product, and/or business
Applicaon Quesons
1. In order to fully appreciate the role retailing plays in the U.S. economy, it may be
helpful to review a selection of press articles related to the retailing industry. Search
for articles pertaining to retailing. Read a selection of articles, and report your
© 2018 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
page-pf2
Chapter 4: Retailing
2
findings to the class.
Students answers will vary depending on the articles read. You may wish to have students ʼ
2. Form a team with three classmates to identify the different retail stores in your city
where pet supplies are sold. Team members should split up and visit all the different
retailing outlets for pet supplies. Prepare a report describing the differences in brands
and products sold at each of the retailing formats and the differences in store
characteristics and service levels. For example, look at brands that are sold via mass
merchandisers versus independent specialty stores or other venues. Suggest why
different products and brands are distributed through different types of stores.
3. Go to the Gift Center at online wine retailer wine.com’s website
http://www.wine.com/. How does this site help shoppers select gifts?
4. How much does the most powerful computer with the fastest modem, most memory,
largest monitor, biggest hard drive, and all the available peripherals cost at
http://www.dell.com? Visit a store like Best Buy or Circuit City and price a
comparable computer. How can you explain any price differences between the two
retail operations? Explain any differences in features that you encountered. What
conclusions can you draw from your research?
Computer prices change constantly; at the current time, they are decreasing due to lower
5. Most catalog companies also offer online shopping. Visit the website of one of your
favorite catalogs to see if you can buy online. If so, surf the online catalog for a few
minutes. Then compare the two retailing methods (paper and Internet) for prices,
products, and so forth. Which do you prefer—the paper catalog or online shopping?
Why?
© 2018 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
page-pf3
Chapter 4: Retailing
3
6. Curves is the world’s largest fitness franchise and the fastest-growing franchise of any
kind. What do you need to do to become a Curves franchisee? Visit the site
(http://www.curves.com) to find out. Does anything surprise you?
7. Identify a successful retail business in your community. What marketing strategies
have led to its success?
Although students’ answers will vary, the following is a basic model of a student response:
Oak Street Market is a highly successful, small specialty grocery store in my community.
In the 1980s, Oak Street recognized a market niche that had been neglected by the local
supermarket chains. Oak Street offers a comprehensive selection of high-quality and
8. How can a company create an atmosphere on its website? Visit the websites of some
of your favorite retailers to see if they have been able to re-create the store
atmosphere on the Internet.
Students’ answers will vary. Many will cite elements of design as the ability to create
atmosphere: color, layout, graphic elements (photos, typeface, etc.), and other visual
Applicaon Exercise
After reading the chapter, you can see that differences in retailing are the result of strategy. To
better understand the relationship between strategic retailing factors and consumer perceptions,
© 2018 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
page-pf4
Chapter 4: Retailing
4
Purpose: To have students think intentionally about differences in retailing establishments by
Setting It Up: Because this involves excursions, you may wish to set this up as a paired
exercise. Alternatively, you can pick the product for which the students will shop and direct
Activities
1 Go through each store and make careful observations on the following:
Location: Where is each store? How congested is the area of town where each store is
located? What influence does the neighborhood have on your impression of the
store? Would you travel to this store under normal circumstances? Write a detailed
paragraph on the location of each store.
Exterior atmosphere: How convenient is parking? Is parking adequate? How are other
issues concerning parking (cleanliness and size of the lot, size of spaces, well lit,
etc.)? What kinds of stores are around the store you are visiting? Do you think being
located next to them increases traffic at your store? Are direct competitors nearby? Is
the building modern or historic? Is it attractive, clean, and appealing? Is the entrance
inviting to shoppers?
Interior atmosphere: Compare the following attributes at each store: aisle width;
lighting; number of customers; noise (background music, loudspeakers, etc.); store
layout; signage; accessibility of the cashier; number of products available (depth and
width of assortment); ability to inspect the product before purchase; quality of the
fixtures (shelves, lights, etc.); availability of salespeople and their knowledge about
the product; willingness of salespeople to help.
Product: Is your product available? If not, is there a satisfactory substitute? What is
your perception of the quality of goods offered? Why do you think as you do?
Price: What is the price of the product/brand at this store? Is the price prominently
displayed? How do the prices at the two stores compare? How does the price
compare to your expectations?
2 From which of these two stores would you actually purchase the item? Why, specifically?
List the factors that played a role in your decision. Which factor is most important to you?
If you would not purchase the item at either store, why not?
© 2018 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
page-pf5
Chapter 4: Retailing
5
3 What are the three most important differences you observed between the stores?
4 Using the results of your research, write a short paper that outlines your observations.
Conclude your paper with your answers to questions 2 and 3.
This exercise was inspired by the following Great Idea in Teaching Marketing:
Amy R. Hubbert, University of Nebraska at Omaha
Discovery of Strategic Retailing Factors
The purpose of this assignment is to give students in the Principles of Marketing course an
opportunity to discover for themselves the influence of strategic retailing factors (e.g., location,
Each student selects an item categorized as a “shopping product” for which to shop. Students
describe the product attributes desired as specifically as possible. If it is a branded product, the
Two issues are critical in the selection of specific stores. First, retailing factors will be the most
salient if two very different stores are compared. Therefore, each student chooses two types of
Each student visits the two stores he or she selects and records observations of specific strategic
A. Location Factors
What is the type of location (traditional business district, community shopping center, etc.)? How
© 2018 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
page-pf6
Chapter 4: Retailing
6
your product?
B. Exterior Atmospherics
a How convenient is it to get into the parking lot from the street? For example, do you have
to drive by and make a U-turn or can you turn in at a stoplight?
b How adequate is the parking? What other parking issues do you notice? For example, is
C. Interior Atmospherics
a Aesthetics: Discuss aisle width in general and in comparison to the other store. Note the
lighting. Is it too bright or too dim? Is it used to emphasize the merchandise? How
b Layout: How prominent is the department in which your product is located? How long
c Display: How deep and wide are the product lines compared to others in the store, the
other store, and your own expectations? What sources of information/promotion about
d Personnel: Are salespeople available to help? If yes, by what clues are the sales staffs
D. Product
Is your product available at the store? Is there a satisfactory substitute? What are your
© 2018 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
page-pf7
Chapter 4: Retailing
7
E. Price
What is the price of the product/brand you would purchase from this store? Is the price
prominently displayed? How does the price compare to the other store’s price? How does the
price compare to your expectations?
Students conclude their papers with reflections on the following questions:
a From which of these two stores would you actually purchase the item? Why, specifically?
On the due date, an in-class activity offers the opportunity for students to share and compare
their findings. Small groups of four to five students are formed. Each group member names their
Case Assignment: Kroger Co.
In 1883, Barney Kroger used his life savings (a total of $372) to open a grocery store on Pearl
Over its century of growth, mergers have been key to Krogers continued success. In
1983, Kroger merged with Dillion Companies Inc. in Kansas to become a coast-to-coast operator
In 2014, Kroger completed its merger with Harris Teeter, a regional chain in the
© 2018 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
page-pf8
Chapter 4: Retailing
8
Kroger took this prototype and ran with it, and in late 2014, the company began testing
Kroger ClickList customers shop online for their groceries, choosing from a catalog
featuring 40,000+ items, including fresh meat and produce. After confirming the order, shoppers
ClickList transactions must be paid for with a credit or debit card. Government benefits
By 2016, Kroger had expanded ClickList services to Nashville, Tennessee; Atlanta,
Georgia; Louisville, Kentucky; Cincinnati, Ohio; Murfreesboro, Tennessee; central Virginia; and
While Kroger may have been the first to enter the click-and-collect grocery business, they
Amazon already offers AmazonFresh, home delivery of more than 500,000 items,
including fresh groceries for same-day or next-day delivery. AmazonFresh is available only in
© 2018 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
page-pf9
Chapter 4: Retailing
9
Amazon has made no official statement about their future plans in the grocery business.
Sources: “ClickList,” Kroger, accessed October 20, 2016,
Game-Changing New Grocery Service, and Moms Are Freaking Out About It,” Business Insider,
February 17, 2016, accessed October 20, 2016,
; “History of Kroger,” Kroger, accessed October 20, 2016,
ClickList?,” Cincinnati.com, August 26, 2016, accessed October 20, 2016,
TRUE/FALSE
1. Kroger Co. is one of the world’s largest grocery retailers.
PTS: 1 OBJ: LO: 14-1 TOP: AACSB: Reflective Thinking
KEY: CB&E Model: Strategy MSC: BLOOMS: Level I Knowledge
2. Kroger locations are franchises.
PTS: 1 OBJ: LO: 14-2 TOP: AACSB: Reflective Thinking
KEY: CB&E Model: Strategy MSC: BLOOMS: Level I Knowledge
3. Kroger locations are considered convenience stores.
© 2018 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
page-pfa
Chapter 4: Retailing
10
PTS: 1 OBJ: LO: 14-2 TOP: AACSB: Reflective Thinking
KEY: CB&E Model: Strategy MSC: BLOOMS: Level I Knowledge
4. Krogers ClickList is an example of nonstore retailing.
PTS: 1 OBJ: LO: 14-3 TOP: AACSB: Reflective Thinking
KEY: CB&E Model: Strategy MSC: BLOOMS: Level I Knowledge
5. Picking and packing groceries is easier for Kroger employees than customers because they
have access to the floor stock and the back stock.
PTS: 1 OBJ: LO: 14-4 TOP: AACSB: Reflective Thinking
KEY: CB&E Model: Strategy MSC: BLOOMS: Level I Knowledge
© 2018 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

Trusted by Thousands of
Students

Here are what students say about us.

Copyright ©2022 All rights reserved. | CoursePaper is not sponsored or endorsed by any college or university.