MKT 315 TEST PAPER 2025/2026 QUESTIONS AND
SOLUTIONS MARKED A+
✔✔Full Line Discount Stores - ✔✔Wide variety, limited service, low prices.
Differentiated strategy. (Target/Walmart)
✔✔Specialty Stores - ✔✔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 - ✔✔Offer a complete assortment in a category, deep
assortment and narrow variety, low price, incredible growth lately
✔✔Department Stores - ✔✔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 - ✔✔Issues: Shrinking profit margins, consolidation, increasing service
aspect
✔✔Off-Price Retailers - ✔✔Closeout retailers like TJ Maxx and Outlet Stores. Issues:
Increased opportunistic buying, hurt by sales in department stores
✔✔Extreme-Value Retailers: - ✔✔General merchandise discount stores, much smaller
than traditional discount stores. (Dollar stores) Growing rapidly
✔✔Nonstore Retailers - ✔✔Electronic retailing
Catalog and direct mail retailers
Direct selling
Television and home shopping
Vending machines
✔✔Services Retailers - ✔✔Airlines, banks, credit cards, fitness, health care. There are
four differences in the offering provided by service retailers:
1. Intangibility: Problems in evaluating service quality
2. Simultaneous production and delivery: Importance of service provider
3. Perishability: No inventory, must fill capacity
4. Inconsistency of the offering
✔✔Types of Retailers by Ownership - ✔✔1. Independent, single-store establishments
- Consumer/wholesaler owned cooperatives
2. Corporate Chains
3. Franchising
, ✔✔Reasons for franchising growth - ✔✔Technological advances, profitable utilization of
capital resources, franchisee pays fixed fee plus % of sales, implements program.
✔✔Franchisor advantages/disadvantages: - ✔✔Advantages: Rapid expansion, highly
motivated to do a good job, addition to profits by selling franchisees products/services
Disadvantages: Less control over advertising/pricing/perssonel practices
✔✔Franchisee Benefits - ✔✔Advantages: initial services, market survey, site selection,
facility design, financing, management, continuous services
Disadvantages: Loss of control, high royalty fees, costs on equipment
✔✔Multichannel Retailer - ✔✔A retailer that sells merchandise or services thru more
than one channel
- customers want to interact in different ways because each channel offers a unique set
of benefits
- Leverage existing assets
- Expand market
✔✔Benefits from using store channel - ✔✔Browsing, touch and feel, personal service,
cash payment, immediate gratification, entertainment and social interaction
✔✔Benefits from using catalog channel - ✔✔Convenience, portability, visual
presentation, safety
✔✔Benefits from online channel - ✔✔- Convenience, safety, wider variety/deeper
assortment, personalization, more information
- Importance of internet retailing: US retail e commerce was 4% of total sales,
influences behavior in buying process
✔✔Virtual Communities - ✔✔A network of members sharing common interests with
each other electronically
✔✔Positive Outlook for Future - ✔✔Young people are growing up with computers,
women use internet almost as much as men, people buy everything online.
✔✔Impediments to online shopping - ✔✔Use technology to convert touch and feel
information into 'look and see' information:
3D imaging, zoom technology, live chat
✔✔Key to multi-channel retailing: - ✔✔Integration
- Maintaining brand image across channels, merchandise assortment offered in each
channel, pricing across channels
✔✔VCs: Sources of Revenue - ✔✔Subscription fees: Fixed monthly charge for some
services
SOLUTIONS MARKED A+
✔✔Full Line Discount Stores - ✔✔Wide variety, limited service, low prices.
Differentiated strategy. (Target/Walmart)
✔✔Specialty Stores - ✔✔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 - ✔✔Offer a complete assortment in a category, deep
assortment and narrow variety, low price, incredible growth lately
✔✔Department Stores - ✔✔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 - ✔✔Issues: Shrinking profit margins, consolidation, increasing service
aspect
✔✔Off-Price Retailers - ✔✔Closeout retailers like TJ Maxx and Outlet Stores. Issues:
Increased opportunistic buying, hurt by sales in department stores
✔✔Extreme-Value Retailers: - ✔✔General merchandise discount stores, much smaller
than traditional discount stores. (Dollar stores) Growing rapidly
✔✔Nonstore Retailers - ✔✔Electronic retailing
Catalog and direct mail retailers
Direct selling
Television and home shopping
Vending machines
✔✔Services Retailers - ✔✔Airlines, banks, credit cards, fitness, health care. There are
four differences in the offering provided by service retailers:
1. Intangibility: Problems in evaluating service quality
2. Simultaneous production and delivery: Importance of service provider
3. Perishability: No inventory, must fill capacity
4. Inconsistency of the offering
✔✔Types of Retailers by Ownership - ✔✔1. Independent, single-store establishments
- Consumer/wholesaler owned cooperatives
2. Corporate Chains
3. Franchising
, ✔✔Reasons for franchising growth - ✔✔Technological advances, profitable utilization of
capital resources, franchisee pays fixed fee plus % of sales, implements program.
✔✔Franchisor advantages/disadvantages: - ✔✔Advantages: Rapid expansion, highly
motivated to do a good job, addition to profits by selling franchisees products/services
Disadvantages: Less control over advertising/pricing/perssonel practices
✔✔Franchisee Benefits - ✔✔Advantages: initial services, market survey, site selection,
facility design, financing, management, continuous services
Disadvantages: Loss of control, high royalty fees, costs on equipment
✔✔Multichannel Retailer - ✔✔A retailer that sells merchandise or services thru more
than one channel
- customers want to interact in different ways because each channel offers a unique set
of benefits
- Leverage existing assets
- Expand market
✔✔Benefits from using store channel - ✔✔Browsing, touch and feel, personal service,
cash payment, immediate gratification, entertainment and social interaction
✔✔Benefits from using catalog channel - ✔✔Convenience, portability, visual
presentation, safety
✔✔Benefits from online channel - ✔✔- Convenience, safety, wider variety/deeper
assortment, personalization, more information
- Importance of internet retailing: US retail e commerce was 4% of total sales,
influences behavior in buying process
✔✔Virtual Communities - ✔✔A network of members sharing common interests with
each other electronically
✔✔Positive Outlook for Future - ✔✔Young people are growing up with computers,
women use internet almost as much as men, people buy everything online.
✔✔Impediments to online shopping - ✔✔Use technology to convert touch and feel
information into 'look and see' information:
3D imaging, zoom technology, live chat
✔✔Key to multi-channel retailing: - ✔✔Integration
- Maintaining brand image across channels, merchandise assortment offered in each
channel, pricing across channels
✔✔VCs: Sources of Revenue - ✔✔Subscription fees: Fixed monthly charge for some
services
