Podcast
Questions and Answers
What term describes retailers that offer low-priced goods and target price-sensitive consumers?
What term describes retailers that offer low-priced goods and target price-sensitive consumers?
Which of the following is NOT a characteristic that distinguishes service retailers from merchandise retailers?
Which of the following is NOT a characteristic that distinguishes service retailers from merchandise retailers?
What is a defining feature of corporate chains in retail?
What is a defining feature of corporate chains in retail?
What type of retail structure involves a contractual agreement allowing a franchisee to use a company's trademark?
What type of retail structure involves a contractual agreement allowing a franchisee to use a company's trademark?
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What is one key advantage of independent, single store establishments?
What is one key advantage of independent, single store establishments?
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Which type of supermarket focuses on cost-cutting measures and limited selection for lower prices?
Which type of supermarket focuses on cost-cutting measures and limited selection for lower prices?
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What type of merchandise includes ethical and organic products?
What type of merchandise includes ethical and organic products?
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Which factor contributes to higher prices in department stores compared to discount stores?
Which factor contributes to higher prices in department stores compared to discount stores?
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How do supermarkets enhance the shopping experience for customers?
How do supermarkets enhance the shopping experience for customers?
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Which of the following best characterizes supercenters?
Which of the following best characterizes supercenters?
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What is a common characteristic of conventional supermarkets?
What is a common characteristic of conventional supermarkets?
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Which group of customers do limited-assortment supermarkets primarily appeal to?
Which group of customers do limited-assortment supermarkets primarily appeal to?
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What is an important trend supermarkets are focusing on to stay competitive?
What is an important trend supermarkets are focusing on to stay competitive?
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What does the term 'variety' refer to in retailing?
What does the term 'variety' refer to in retailing?
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Which of the following best describes an SKU?
Which of the following best describes an SKU?
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What is one significant consequence of offering deep and broad assortments for retailers?
What is one significant consequence of offering deep and broad assortments for retailers?
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How do most retailers manage the higher costs associated with an expanded variety and assortment?
How do most retailers manage the higher costs associated with an expanded variety and assortment?
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Which type of services are typically considered basic customer services offered by most retailers?
Which type of services are typically considered basic customer services offered by most retailers?
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What role does the NAICS play in the context of retailers?
What role does the NAICS play in the context of retailers?
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Why do some retailers charge for additional services like home delivery?
Why do some retailers charge for additional services like home delivery?
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How are different subsectors identified within the NAICS classification system?
How are different subsectors identified within the NAICS classification system?
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What type of retail outlet focuses on providing a limited range of high-turnover items and usually has extended hours?
What type of retail outlet focuses on providing a limited range of high-turnover items and usually has extended hours?
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Which type of retail store is known for selling groceries online with home delivery services?
Which type of retail store is known for selling groceries online with home delivery services?
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What distinguishes full-line discount stores from other retail formats?
What distinguishes full-line discount stores from other retail formats?
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Which of the following types of stores are considered 'category killers'?
Which of the following types of stores are considered 'category killers'?
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Department stores are facing competition primarily from which type of retailers?
Department stores are facing competition primarily from which type of retailers?
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What is a common characteristic of drugstores compared to other retail types?
What is a common characteristic of drugstores compared to other retail types?
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Warehouse clubs often charge for membership. What is the primary benefit of this model?
Warehouse clubs often charge for membership. What is the primary benefit of this model?
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Which of the following best describes specialty stores?
Which of the following best describes specialty stores?
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Study Notes
Retailer Characteristics
- NAICS (North American Industry Classification System) classifies businesses based on products/services with a hierarchical six-digit code.
- Variety (breadth) indicates the number of different merchandise categories; assortment (depth) reflects the number of items within a category.
- Stock-Keeping Unit (SKU) identifies each unique item of merchandise by size, color, etc.
Services Offered
- Basic customer services include displaying merchandise, accepting credit cards, providing parking, and convenient operating hours.
- Paid services may include home delivery and gift wrapping.
- Specialized retailers, like Wheelworks, offer personalized services, unlike mass retailers such as Walmart.
Prices and Costs of Merchandise and Services
- Deep and broad assortments attract customers but require significant inventory investment and higher costs.
- Increased service offerings raise costs for staffing, facilities, and financial services, impacting retail pricing strategies.
- Department stores have higher prices due to upscale merchandise, personal services, and premium locations, leading to fashion risk when trends shift.
- Discount stores attract budget-conscious customers seeking lower prices over services.
Food Retailers
- Conventional supermarkets provide around 30,000 products, prominently featuring perishables.
- Limited-assortment supermarkets focus on efficiency with about 1,500 products, appealing to price-sensitive shoppers.
- Supermarkets enhance the shopping experience with additional services like in-store restaurants and cooking classes.
- Merchandise types include fresh, green (organic), ethnic, and private-label offerings.
Supercenters and Warehouse Clubs
- Supercenters offer a combination of groceries and general merchandise at low prices, e.g., Walmart Supercenter.
- Warehouse clubs, such as Costco, provide bulk purchasing options for members with minimal service.
Convenience Stores
- Small, accessible retail outlets like 7/11 offer a limited range of high-turnover items, often at higher prices due to the convenience factor.
Online Grocery Retailers
- Digital platforms (e.g., Amazon Fresh, Kroger) provide home delivery services and a wide range of products, leveraging technology for inventory management and customer service.
General Merchandise Retailers
- Department stores provide diverse product ranges but face competition from online shopping, prompting enhancements in store experience and digital presence.
- Full-line discount stores offer lower-priced goods across various merchandise categories.
- Category specialists focus on specific product categories, often dominating that market niche, like Ace Hardware for home improvement.
- Specialty stores deliver deep assortments in narrow categories, emphasizing specialized customer service.
- Drugstores mainly sell health-related products and personal care items, while extreme-value retailers serve price-sensitive consumers with low-priced goods.
Service Retailing
- Differences between service and merchandise retailers include intangibility, simultaneous production and consumption, perishability, and inconsistencies in offerings.
Types of Ownership
- Independent, single-store establishments allow direct owner-customer interaction, facilitating quick responses to consumer needs.
- Corporate chains operate multiple outlets with centralized decision-making; examples include Walmart and Macy's.
- Franchising involves a contractual agreement where the franchisor grants rights to use trademarks or business symbols to the franchisee for a fee and ongoing royalties.
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Description
This quiz explores various types of retailers, including food and general merchandise retailers, as well as service retailing. It highlights retailer characteristics and ownership types using classifications such as NAICS. Test your knowledge on the retail landscape and its classification.