Question 1

Real Canadian Superstore is a chain of retail outlets in Canada that are described as large, departmentalized, self-service stores that specialize in wide assortments of foodstuffs and limited nonfood items. Real Canadian Superstores would be classified as which of the following?

Accepted Answer

Real Canadian Superstores specialize in foodstuffs and are described as departmentalized self-service stores. Thus, they would be classified as supermarkets.

Question 2

Costco carries a broad assortment of nationally branded hard goods (broader than a department store) and offers customers very limited service. What would Costco be classed as?

Accepted Answer

Costco offers a broad assortment of hard goods, similar to a department store, but with very limited service. This fits the description of a full-line discount store, which offers a wide range of merchandise at lower prices than traditional department stores. Costco's emphasis on bulk purchases and its membership model also align with this classification. Costco is not a factory outlet, which typically sells discounted merchandise directly from a manufacturer, nor a price cut store or specialty supercentre, neither of which accurately reflect the range of goods and services offered by Costco.

Question 3

What is the term for a retail operation that has a 8,300-square-metre facility, houses a florist, baker, bank, craft shop, photo finisher, dry cleaner, and pharmacy under the same roof as grocery and household items?

Accepted Answer

A supercenter is a large retail store that combines a grocery store with a wide range of other products and services, including those listed in the question, all under one roof. The size of the facility mentioned in the question (8,300 square meters) also fits the typical size of a supercenter. The other options (A, B, D) do not accurately describe this type of retail operation.

Question 4

Walmart sells products that fall under many different categories. These include groceries, seasonal, toys, and sporting goods to mention a few. What are they involved in?

Accepted Answer

Walmart is involved in scrambled merchandising, which means offering a variety of products from different categories in one store.

Question 5

These self-service stores carry a limited line of high-turnover, high-priced goods and resemble miniature supermarkets. They are typically located near residential areas and are open long hours, seven days a week. What are they?

Accepted Answer

Convenience stores fit the description provided in the statement, as they carry a limited line of high-turnover, high-priced goods and are located near residential areas with long operating hours. Specialty stores usually offer a wide range of products, while wholesale stores and factory outlets cater to bulk buyers and sell goods at discounted prices.

Question 6

For consumers, the initial attraction of drugstores was the pharmaceuticals they carried, but now consumers can have their prescriptions filled at mass merchandisers, at supermarkets, and through the mail. What have drugstores done to remain competitive?

Accepted Answer

Drugstores have remained competitive by providing customers with value-added services, such as health screenings, immunizations, and personalized consultations, to differentiate themselves from other retailers that offer prescription drugs.

Question 7

Why are prices usually higher in convenience stores than in supermarkets?

Accepted Answer

Convenience stores offer more convenience such as a better location, longer hours, and faster service, which leads to higher prices compared to supermarkets. They also have smaller inventories which can lead to higher prices due to the increased cost of maintaining a limited stock. The other options do not necessarily always result in higher prices.

Question 8

Glen's Safety First! sells a huge assortment of firefighting and other safety equipment at greatly reduced prices. It offers customers few services and competes on the basis of moderate to low prices on the large quantities of merchandise it stocks. What is Glen's Safety First! an example of?

Accepted Answer

Glen's Safety First! is a specialty discount store that focuses on selling firefighting and safety equipment. It offers few services and competes on the basis of low prices and large quantities of merchandise.

Question 9

What is the term for the retailing strategy of using moderate to low prices on large quantities of products and lower service to stimulate a high turnover of inventory?

Accepted Answer

Mass merchandising is the retailing strategy that uses moderate to low prices on large quantities of products and offers lower service to stimulate a high turnover of inventory. This is commonly seen in discount stores and warehouse clubs. Option A (specialty store positioning) refers to a retailing strategy that focuses on offering a unique and narrow product assortment to a specific target market at high prices, while option B (merchandise positioning) refers to a retailer's decision regarding the type and quality of product offerings. Option C (the wheel of retailing) refers to the concept that retail formats evolve over time, from low-end and price-oriented formats to higher-end and service-oriented formats.

Question 10

According to your textbook, what is one way supermarkets establish long-term relationships with their customers?

Accepted Answer

According to the textbook, supermarkets establish long-term relationships with their customers by using loyalty marketing programs. These programs reward customers for their repeat business and offer promotions and discounts to incentivize continued loyalty.

Question 11

Home Depot Fuel is the name of a chain of convenience stores owned and operated by The Home Depot. These stores typically sell gas and are located just outside The Home Depot warehouse store. What else can you presume about the Home Depot Fuel convenience stores?

Accepted Answer

The Home Depot Fuel convenience stores are primarily focused on selling gas and a limited line of high-turnover goods, such as snacks and drinks. They do not carry the same extensive range of products as The Home Depot warehouse store, nor do they compete on the basis of low price.

Question 12

Which of the following retailers compete on the basis of low prices, high turnover, and high volume?

Accepted Answer

Discount stores typically compete on the basis of low prices, high turnover, and high volume. They offer a wide range of products at discounted prices to attract customers who are looking for bargains. Specialty stores, on the other hand, focus on a specific product or service and offer a unique shopping experience for customers who are willing to pay a premium price. General stores offer a mix of products, including both branded and private-label items. Department stores offer a wide range of products, including clothing, home goods, and electronics, and often provide a high-end shopping experience with personalized customer service.

Question 13

Last year, over two million people visited Wine.com and bought 14,000 different fine wines at discounted prices. Wine.com shipped wine to over 100,000 customers generating more than $30 million in sales. Wine.com has since become the most trafficked wine site in the world. As an online retail operation, how would Wine.com correctly be labelled?

Accepted Answer

Wine.com can be labeled as a category killer since it specializes in selling a specific category of products, in this case, fine wines, and has become the most popular and successful retailer in that niche.

Question 14

Why are specialty stores such as Office Depot, Bed Bath & Beyond, and Staples often called category killers?

Accepted Answer

Specialty stores like Office Depot, Bed Bath & Beyond, and Staples are often called category killers because they dominate a particular category of merchandise, often priced lower than competitors. This can make it difficult for other retailers to compete in the same category and can ultimately destroy their profit potential.

Question 15

Walmart utilizes a strategy of moderate to low prices on large quantities of products and lower levels of service to stimulate a high turnover of inventory. Walmart offers a wide variety of different product lines. What is Walmart an example of?

Accepted Answer

Walmart is an example of a mass merchandiser, as it offers a wide variety of products at moderate to low prices and emphasizes high turnover of inventory.

Question 16

Spar is Ireland's largest supermarket chain. Which of the following is the most likely reason that Spar supermarkets sell all types of foodstuffs as well as nonfood products including a wide range of firearms and gun accessories?

Accepted Answer

One-stop shopping often leads to scrambled merchandising, where a retailer offers a diverse range of products to attract more customers. As Spar is the largest supermarket chain in Ireland, it's likely that they're catering to customer demand for convenience and variety by offering both food and non-food products, including firearms and gun accessories.

Question 17

Costco, Safeway, Metro, and other supermarket chains offer a variety of nontraditional goods and services such as DVD rental, flower shops, dry cleaning, and banking. What is this practice called?

Accepted Answer

The practice of offering a variety of nontraditional goods and services is called scrambled merchandising.

Question 18

Which of the following best describes discount stores?

Accepted Answer

Discount stores typically offer products at lower prices than traditional retail stores and focus on high turnover and high volume of sales to maintain profitability. They achieve this by keeping their operating costs low and often have minimal staffing levels and limited product selections.

Question 19

Hudson's Bay's Home Outfitters sells furnishings and uses self-service, discount prices, high volume, and high turnover of merchandise to their advantage. What are they are?

Accepted Answer

The answer of Hudson's Bay's Home Outfitters sells furnishings and...

Question 20

Winners and Marshall's sell a variety of products. What type of retailers are they?

Accepted Answer

Winners and Marshall's are both off-price retailers that offer discounted prices on a variety of brand-name merchandise. They specialize in purchasing overstock and out-of-season items from other retailers and selling them at a lower cost.

Quiz 15: Retailing