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

6. 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

7. 7 LEVELS OF SERVICE -Locate-compare-select process; -Self-Locate or may Ask assistance if needed; -Needs more information and assistance; -Prefers to be waited during locate-compare-select process; Self-service Self-selection Limited Service Full service

9. 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

10. 11 Nonstore Retailers Direct Selling Direct Marketing Buying Service Automatic Vending

13. 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

14. 15 Nonstore Retailers Direct Selling Direct Marketing Buying Service Automatic Vending

17. 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

18. 19 Service Mix Prepurchase Services Advertising, window display, fitting rooms, fashion shows; Shipping and delivery, gift wrapping, installations, engraving; General information, check cashing, parking, restaurants, rest rooms; Postpurchase Services Ancillary Services

20. 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

21. 23 Retailers’ Marketing Decisions Target Market Services Product Assortment Store Atmosphere Procurement Store Activities Prices Communications Locations

23. Storewide sales

24. Markdowns

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

29. High Mark-up, Lower-Volume (Fine Specialty Stores)

31. 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

33. Significant investments on R&D

35. 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

36. 35 Market Logistics Decisions INVENTORY ORDER PROCESSING How should orders be handled? How should goods be shipped? How much stock should be held? Where should stock be located? WAREHOUSING TRANSPORTATION

38. Warehousing – Stocking locations of finished goods until they are sold;

39. Inventory – decision-making as to when and how much to order.

41. 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

42. DETERMINING OPTIMAL ORDER QUANTITY Total Cost per Unit PRICE PER UNIT Inventory-carrying Cost per unit Order-processing Cost per unit ORDER QUANTITY

43. WHAT FACTORS AFFECT CHOICE OF ORDER QUANTITY? Order-processing cost (OC) Inventory-carrying cost(HC) -decreases with more number of units ordered; -increases with more number of units ordered; Total Cost (TC) = OC + HC Optimal Quantity = Lowest point of TC

44. 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

45. 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