Mkt 315 Exam Bank Solution Manual (Rated A+)

MKT 315 EXAM BANK SOLUTION MANUAL (RATED A+) What is Retailing? - Answers A set of business activities that adds value to the products and services sold to consumers for their personal or family use. It is the last stage in the distribution process; includes every sale to the final customer Pure Retailers - Answers Sears, Holiday Inn, McDonalds Retailers that are also wholesalers - Answers Office Depot, Home Depot Four Ways Retailers Add Value - Answers 1. Breaking Bulk 2. Holding Inventory 3. Providing Assortment 4. Offering Services Breaking Bulk - Answers Sell it in quantities customers want. Manufacturers/wholesalers reduce transportation costs by selling in large quantities Holding Inventory - Answers Buy it at a convenient place when you want it. Consumers may make unplanned or impulse purchases and have limited storage Providing Assortment - Answers Buy other products at same time Offering Services - Answers See it before you buy it, get credit, privacy at home General Trends in Retailing - Answers Selling merchandise over the internet and growth in use of multi-channel retailing by traditional retailers. Using IT to manage supply chains, analyze POS data to tailor assortments to stores, computer systems for merchandising planning. Most common Trends in retailing - Answers 1. Increasing industry concentration: Few nationals dominate most formats 2. Growing diversity of formats 3. Globalization: Source merchandise from around the world. There are factors stimulating globalization like transferability of skills/relaxation of trade barriers. Retail Mix - Answers Elements used by a retailer to satisfy customers needs 1. Pricing 2. Type of merchandise 3. Merchandise and services offered 4. Services offered Pricing - Answers Price - Cost trade off: The more sales associates who provide detailed information on the products, the higher the cost. Types of Merchandise - Answers Goods/Services offered Merchandise/Services Offered - Answers Variety/Assortment Variety: Breadth of merchandise, wide vs. narrow. Number of categories offered. Assortment: Depth of merchandise, deep vs. shallow: Number of different stockkeeping unites in a merchandise category SKU - Answers The smallest unit for keeping inventory Services Offered - Answers Retailers differ in the services they offer customers. There is a general trend toward services. Types of Retailers - Answers Merchandise Retailers Non-store retailers Service Retailers Merchandise Retailers - Answers Food Retailers General Merchandise retailers Food Retailers - Answers 1. Mom and Pops: Conventional supermarkets 2. Convenience Stores 3. Big Box Retailers Mom and Pops: Conventional supermarkets - - Answers Self service food stores with groceries/meat/produce with limited variety, are in decline Convenience Stores - Answers Limited variety and assortment, tailors assortments to local market, makes it convenient to shop, offer fresh/healthy food, opening smaller stores closer to consumers, financial services available Big Box Retailers - Answers Warehouse clubs, supercenters Changing consumption patterns in food retailing - Answers Time pressure Eating out more Meal solutions General Merchandise Retailers - Answers Full line discount stores Specialty stores Category Specialists Department stores Drugstores Off-price retailers Extreme value retailers Full Line Discount Stores - Answers Wide variety, limited service, low prices. Differentiated strategy. (Target/Walmart) Specialty Stores - Answers Limited number of complementary merchandise categories and provide high level of service. Have issues with decline in mall shopping, increase in price consciousness Category Specialists - Answers Offer a complete assortment in a category, deep assortment and narrow variety, low price, incredible growth lately Department Stores - Answers Wide variety and deep assortment, focus on apparel and soft home goods, develop private labels/brands. Attempting to increase private label merchandise, expand multichannel and social media. Three tiers: 1st: Upscale (nordstrom) 2nd: Middle (Macy's) 3rd: Kohls Drugstores - Answers Issues: Shrinking profit margins, consolidation, increasing service aspect Off-Price Retailers - Answers Closeout retailers like TJ Maxx and Outlet Stores. Issues: Increased opportunistic buying, hurt by sales in department stores Extreme-Value Retailers: - Answers General merchandise discount stores, much smaller than traditional discount stores. (Dollar stores) Growing rapidly Nonstore Retailers - Answers Electronic retailing Catalog and direct mail retailers Direct selling Television and home shopping Vending machines Services Retailers - Answers Airlines, banks, credit cards, fitness, health care. There ar