MARK 463 CHAPTER 5
CHAPTER 5
RETAIL INSTITUTIONS BY STORE-BASED STRATEGY MIX
The "Wheel of Retailing" theory:
How some retailers choose to grow Figure 5-1 p. 114
Low-End < --- > High End Retail Strategies Figure 5-2 p. 115
The Retail Life Cycle Figure 5-4 p. 116
Retail Institutions categorized by Store-Based Strategy Mix Table 5-1 p. 120
Multiple Choice - Terminology/Concept
1. A retailer with high customer loyalty is able to attract shoppers who come from long distances. This retailer is described as a(n) _____. a. destination retailer b. parasite retailer c. scrambled merchandising retailer d. innovator
2. Which concept characterizes all destination retailers? a. Destination retailers are dominant in terms of some aspect of their overall retail strategy. b. Destination retailers are chains. c. Destination retailers have large locations. d. Destination retailers have low prices.
3. Which retail theory predicts that innovators will start with a low-cost structure and low profit margin requirements? a. scrambled merchandising b. retail life cycle c. wheel of retailing d. rationalized retailing
4. Which of the following is not a basic assumption of the wheel of retailing? a. A large number of price-sensitive shoppers exist. b. Retailers increase operating costs over time to improve their image. c. New institutions are able to reduce operating costs. d. Related-item merchandising increases sales because of one-stop shopping appeals.
5. A retailer that increases its product line assortment width by adding new products unrelated to its original business and to each other is practicing _____. a. scrambled merchandising b. the wheel of retailing c. rationalized retailing d. life cycle retailing
6. A pharmacy (due to increased competition from a neighboring supermarket) has added an exclusive line of cosmetics and expanded its line of greeting cards and gift-wrapping items. This strategy illustrates _____. a. scrambled merchandising b.
RETAIL INSTITUTIONS BY STORE-BASED STRATEGY MIX
The "Wheel of Retailing" theory:
How some retailers choose to grow Figure 5-1 p. 114
Low-End < --- > High End Retail Strategies Figure 5-2 p. 115
The Retail Life Cycle Figure 5-4 p. 116
Retail Institutions categorized by Store-Based Strategy Mix Table 5-1 p. 120
Multiple Choice - Terminology/Concept
1. A retailer with high customer loyalty is able to attract shoppers who come from long distances. This retailer is described as a(n) _____. a. destination retailer b. parasite retailer c. scrambled merchandising retailer d. innovator
2. Which concept characterizes all destination retailers? a. Destination retailers are dominant in terms of some aspect of their overall retail strategy. b. Destination retailers are chains. c. Destination retailers have large locations. d. Destination retailers have low prices.
3. Which retail theory predicts that innovators will start with a low-cost structure and low profit margin requirements? a. scrambled merchandising b. retail life cycle c. wheel of retailing d. rationalized retailing
4. Which of the following is not a basic assumption of the wheel of retailing? a. A large number of price-sensitive shoppers exist. b. Retailers increase operating costs over time to improve their image. c. New institutions are able to reduce operating costs. d. Related-item merchandising increases sales because of one-stop shopping appeals.
5. A retailer that increases its product line assortment width by adding new products unrelated to its original business and to each other is practicing _____. a. scrambled merchandising b. the wheel of retailing c. rationalized retailing d. life cycle retailing
6. A pharmacy (due to increased competition from a neighboring supermarket) has added an exclusive line of cosmetics and expanded its line of greeting cards and gift-wrapping items. This strategy illustrates _____. a. scrambled merchandising b.