This document contains 10 learning questions from a chapter on managing retailing, wholesaling, and logistics. The questions cover various topics like types of retailers, levels of retailer service, categories of non-store retailing, retail marketing decisions, pricing groups for retailers, private labels, market logistics decisions, and determining optimal order quantity. The document provides explanations and examples for each question to help students learn the key concepts being tested.
Chapter 16 Managing Retailing, Wholesaling And Logistics Mendoza
1. TOP 10 Learning Questions for Chapter 16: Managing Retailing, Wholesaling and Logistics Mary Rose R. Mendoza September 23, 2010 Marketing Management Class Prof. Remigio Joseph De Ungria
2. 1. The following are major types of retailer except _____________. Discount store Department store Catalog showroom Supermarket Brokers and agents 2
3. Major Retail Types Specialty Store Convenience Store Department Store Discount Store Superstore Catalog Showroom Supermarket Off-price Retailer
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5. Brokers and agents fall under major wholesaler types whose activities involve selling goods or services to those buying for resale or business use. They facilitate buying and selling on a commission of 2% to 6%of the selling price. 4 A “retailer” sells to final consumers.
6. 1. The following are major types of retailer except _____________. Discount store Department store Catalog showroom Supermarket Brokers and agents 5
7. 2. ____________is a level of retailer service in which customers are willing to carry out their own locate-compare-select process to save money. 6 Self-service Self-selection Limited Service Full Service Assisted Service
8. 7 LEVELS OF SERVICE Self-service Customer Carry out his own locate-compare-select process; Customer could Self-Locate or may Ask assistance if needed; Customer Need more information and assistance; Customer Prefer to be waited during locate-compare-select process; Self-selection Limited Service Full service
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11. 3. Avon and Mary Kay Cosmetics are businesses which could be categorized to what type of non-store retailing? Direct marketing Direct selling Network marketing Automatic vending Buying services 10
12. 11 Nonstore Retailers Direct Marketing Direct Selling Automatic Vending Buying Service
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15. 4. Amazon.com & Zappos.com as online retail stores fall into what category of non-store retailing? Direct marketing Direct selling Network marketing Automatic vending Buying services 14
16. 15 Nonstore Retailers Direct Marketing Direct Selling Automatic Vending Buying Service
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19. 5. Which service mix includes general information, parking, restaurants, &repairs in a retailer’s customer offerings? Prepurchase services Postpurchase services Customer services Ancillary services Customized services 18
20. 19 Service Mix Prepurchase Services Advertising, window display, fitting rooms, fashion shows, trade-ins; Shipping and delivery, gift wrapping, installations, engraving; General information, check cashing, parking, restaurants, rest rooms; Postpurchase Services Ancillary Services
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22. 6. The following are true about retail marketing decisions except _________: a. Retailers’ target market is moving towards niche markets; b. Retailers usually mark up cost of goods by a standard percentage; c. Retailers greatly consider store atmosphere that would match customer motivation; d. Retailers use wide range of communication tools such as ads, special sales, money-saving coupons, to generate traffic and sales; e. Retailers select locations that are accessible to target market. 22
23. 23 Retailers’ Marketing Decisions Target Market Services Product Assortment Store Atmosphere Procurement Store Activities Prices Communications Locations
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26. 7. Wal Mart as a discount store falls into what pricing group? a. high-markup, lower-volume b. low-markup, higher-volume c. high-markup, higher-volume d. low-markup, lower-volume e. none of the above 26
27. 27 Retail Positioning Map Broad Bloomingdale’s Wal Mart Breadth of Product Line Tiffany Sunglass Hut Narrow Value Added High Low
31. a. high-markup, lower-volume b. low-markup, higher-volume c. high-markup, higher-volume d. low-markup, lower-volume e. none of the above 29 7. Wal Mart as a discount store falls into what pricing group?
32. 8. Which of the following is true about private labels? a. These are unbranded, plainly packaged, less expensive versions of common products. b. Private labels are usually sold at a higher price due to higher costs on advertising, sales promotion and distribution. c. Private labels require much investment on R&D to bring out new brands, line extensions, and features. d. Are also called reseller, store, house or distributor brand developed by retailers and wholesalers. e. all of the above 30
35. Investments on “pull” advertising programsPRIVATE LABEL Developed by retailers/wholesalers Shelf space advantage Lower price
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37. It is offered to customers at a lower price due to lower costs incurred in production, advertising, sales promotion and distribution.
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39. 9. Which is not a market logistics decision? a. What optimum number of units to produce? b. How should orders be handled? c. Where should stock be located? d. How much stock should be held? e. How should goods be shipped? 34
40. 35 Market Logistics Decisions ORDER PROCESSING INVENTORY How should orders be handled? How should goods be shipped? How much stock should be held? Where should stock be located? WAREHOUSING TRANSPORTATION
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42. Warehousing – Stocking locations of finished goods until they are sold to respond to discrepancies production and consumption cycles.
43. Inventory – decision-making as to when and how much to order. Costs involved are carrying costs and ordering costs.
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45. 10. Which statement is not true in determining Optimal Order Quantity? a. Order-processing cost per unit decreases with number of units ordered b. Inventory-carrying charges per unit decreases with the number of units ordered c. Total cost curve is the sum of ordering costs and inventory costs d. The quantity where the lowest point of the total cost curve is projected is the optimal order quantity e. None of the above 38
46. DETERMINING OPTIMAL ORDER QUANTITY Total Cost per Unit PRICE PER UNIT Inventory-carrying Cost per unit Order-processing Cost per unit ORDER QUANTITY
47. REDUCING INVENTORY COSTS? KNOW THE OPTIMAL! Order-processing cost per unit decreaseswith more number of units ordered becausecosts are spread over more units. Inventory-carrying costs per unit increases with more units ordered because each unit remains longer in inventory. These 2 costs are added to find the total cost curve. The lowest point in the total curve is the optimal order quantity.
48. 10. Which statement is not true in determining Optimal Order Quantity? a. Order-processing cost per unit decreases with number of units ordered b. Inventory-carrying charges per unit decreases with the number of units ordered c. Total cost curve is the sum of ordering costs and inventory costs d. The quantity where the lowest point of the total cost curve is projected is the optimal order quantity e. None of the above 41
49. TOP 10 Learning Questions for Chapter 16: Managing Retailing, Wholesaling and Logistics Mary Rose R. Mendoza September 23, 2010 Marketing Management Class Prof. Remigio Joseph De Ungria
