Question 1

In what ways do retailers add value to products?

Accepted Answer

Retailers add value for customers by providing services and assisting in making product selections. They can also enhance consumers' perception of the value of products by making buyers' shopping experiences easier or more convenient, such as providing free delivery or offering an online shopping option. Retailers can facilitate comparison shopping to allow customers to evaluate different options. For example, car dealerships often cluster in the same general vicinity, as do furniture stores. Product value is also enhanced when retailers offer services, such as technical advice, delivery, credit, and repair. Finally, retail sales personnel are trained to be able to demonstrate to customers how products can satisfy their needs or solve problems.Retailers can add significant value to the supply chain, representing a critical link between producers and ultimate consumers by providing the environment in which exchanges occur. Retailers play a major role in creating time, place, and possession utility and, in some cases, form utility. Retailers perform marketing functions that benefit ultimate consumers by making available broad arrays of products that can satisfy their needs.

Question 2

What are the three types of nonstore retailing, and what are some examples of each?

Accepted Answer

Direct marketing, direct selling, and vending are the three types of nonstore retailing.Direct marketing is the use of telephone, Internet, and nonpersonal media to communicate product and organizational information to customers, who can purchase products via mail, telephone, or the Internet. Direct marketing can occur through catalog marketing, direct-response marketing, telemarketing, television home shopping, and online retailing. Companies such as Land's End, Pottery Barn, and Crate & Barrel, sell via catalogs, online, and through retail stores. The Home Shopping Network originated and popularized the television home shopping format.Direct selling is the marketing of products to ultimate consumers through face-to-face sales presentations at home or in the workplace. The top five global direct selling companies are Avon, Amway, Herbalife, Natura Cosmeticos, and Vorwerk & Co. Product categories that have been highly successful for direct selling include cosmetics and personal-care products, health products, jewelry, accessories, and household products.Automatic vending is the use of machines to dispense products. It is one of the most impersonal forms of retailing and accounts for a small minority of all retail sales. InstyMeds vending machines dispense prescription medications to customers, and fishermen in Pennsylvania can even buy live bait via PA Live Bait Vending.

Question 3

Walmart, Macy's, Nordstrom's, and Toys "R" Us are examples of

Accepted Answer

Walmart, Macy's, Nordstrom's, and Toys "R" Us are all examples of retailers, which are businesses that sell products directly to consumers.

Question 4

Compare and contrast department stores and discount stores.

Accepted Answer

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Question 5

A retailer is an organization that purchases products for the purpose of reselling them to

Accepted Answer

Retailers purchase products with the intent of selling them directly to the ultimate consumer, whether in-store or through e-commerce channels.

Question 6

Discuss some of the functions that full-service wholesalers provide. How do these differ from those that limited-service wholesalers provide?

Accepted Answer

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Question 7

What are the primary advantages and disadvantages of a franchise arrangement for a franchisee?

Accepted Answer

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Question 8

Compare the services wholesalers provide for producers with the services they provide to retailers.

Accepted Answer

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Question 9

What is a store's image, and how does it affect retailing strategy decisions?

Accepted Answer

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Question 10

What are the two categories of retail stores based on breadth of products offered, and what types of stores are in each category?

Accepted Answer

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Question 11

Identify and describe three kinds of specialty stores.

Accepted Answer

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Question 12

Discuss the role of merchant wholesalers. When is a producer most likely to use them?

Accepted Answer

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Question 13

Taylor works for a company that buys snacks such as chips, cookies, and candy in bulk from manufacturers. Taylor's company then repackages them and sells them to vending companies who have vending machines at government institutions. Taylor most likely works for a(an) ___, while the vending machine company is a(an) _____.

Accepted Answer

Taylor's company buys snacks in bulk from manufacturers and repackages them before selling them to vending companies. This indicates that Taylor works for a wholesaler, as they buy products in bulk and then sell them in smaller quantities to retailers. The vending machine company, on the other hand, buys the packaged snacks from the wholesaler and sells them directly to consumers through vending machines, making them a retailer.

Question 14

What wholesaling activities do selling agents and brokers perform?

Accepted Answer

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Question 15

Discuss the advantages and disadvantages of catalog marketing.

Accepted Answer

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Question 16

What role does wholesaling play in the marketing channel? Is this role necessary?

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Question 17

Kate owns a refreshment-stand business at the community ballpark. She goes to a warehouse store like Sam's and purchases snacks and canned soda that she will sell at her refreshment stand. Kate is considered a(n)

Accepted Answer

Kate is selling directly to the end consumer, so she is a retailer. The other options do not fit the description of Kate's business model.

Question 18

Direct selling, direct marketing, and vending machines are all examples of

Accepted Answer

Direct selling, direct marketing, and vending machines all involve selling products directly to the end consumer, which falls under the category of retailing. This is opposed to wholesaling, which involves selling products in bulk to retailers or other businesses. Advertising and promoting may be a part of these methods of retailing, but they do not encompass the entire process. Therefore, the best choice is D) retailing.

Question 19

Why is a store's location one of the most important strategic retailing decisions?

Accepted Answer

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Question 20

Retailing is best characterized as

Accepted Answer

Retailing involves transactions between the retailer and the customer wherein the customer intends to consume the product for personal, family or household use. Therefore, option B is the best choice. Option A describes the characteristics of a large organization with a wide and deep product mix, which may or may not be a retailer. Option C describes a supplier-dealer arrangement, which is not specific to retailing. Option D describes transactions for business purposes, which may or may not be retailing. Option E limits retailing only to store or service establishments, which is not accurate as retailing can occur through various channels such as online or mobile platforms.

Quiz 15: Retailing, Direct Marketing and Wholesaling