Chapter 13 - Retailers,Wholesalers,and Their Strategy Planning
Chapter 13 Retailers, Wholesalers, and Their Strategy Planning
True / False Questions
1. Retailing includes all of the activities involved in reselling goods to final consumers, but it does not include the sale of services to final consumers since services must be produced in the presence of the consumer. True False
2. In the U.S. about three-fourths of new retailing ventures fail during the first year. True False
3. A consumer's choice of a retail store appears to be based almost entirely on economic needs. True False
4. A consumer's choice of a retail store appears to be based almost entirely on emotional needs--economic needs have almost no influence. True False
5. The marketing strategies for the two shoe retailers Payless and Zappos are very different but both are successful. True False
6. The marketing strategies for the two shoe retailers Payless and Zappos are very different, and Zappos' strategy is successful while Payless' strategy is not. True False
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Chapter 13 - Retailers,Wholesalers,and Their Strategy Planning
7. It's oversimplified to classify retailers and their strategies on the basis of a single characteristic--such as sales volume, services, product assortment, etc. True False
8. Retailers and their strategies can easily be classified based on the type of merchandise they sell. True False
9. Single-line stores that used to carry anything they could sell in reasonable volume were the main retailers in the United States. True False
10. Most "conventional" retailers are single-line or limited-line stores that have very low expenses relative to sales. True False
11. Most single-line and limited-line stores apply the retailing philosophy of buying low and selling high. True False
12. In most countries, small limited-line retailers still account for the majority of all retailers. True False
13. Specialty shops are limited-line stores which aim at a carefully defined target market with a unique product assortment, good service, and knowledgeable salespeople. True False
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Chapter 13 - Retailers,Wholesalers,and Their Strategy Planning
14. Specialty shops will continue to be a part of the retailing scene as long as customers have varied tastes and the money to satisfy them. True False
15. Department stores are stores which usually try to serve customers seeking a variety of convenience products. True False
16. Department stores are larger stores that are organized into many separate departments and offer many product lines. True False
17. Department stores keep growing in numbers, sales, and market share. True False
18. The mass-merchandising concept means that retailers can succeed by selling a large volume of merchandise to a target market at low prices. True False
19. Mass-merchandisers have proved to be effective competitors in taking away department store customers. True False
20. Retailers who follow a policy of "buy low and sell high" are practicing the "mass- merchandising concept." True False
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