Marketing Final Exam

Hours and fast service prices are usually higher and

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Unformatted text preview: CE STORES are like miniature supermarkets. They carry only a limited line of high-turnover convenience goods. Convenience stores offer convenient locations, long hours, and fast service. Prices are usually higher, and gross margins are moderately high. Most convenience stores are self-service organizations. PTS: 1 REF: 232 | 234-235 OBJ: 15-2 | 15-3 TOP: AACSB Communication KEY: CB&E Model Distribution MSC: BLOOMS Synthesis 5. A specialty store is not only a type of store but also is a method of retail operations. Describe the specialty store strategy. Then name two examples of specialty stores. ANS: Specialty stores specialize in a given type of merchandise such as children’s clothing, baked goods, and pet supplies. Specialty stores carry a narrow assortment of merchandise but a very deep product selection. Specialty stores typically offer more customer service and more knowledgeable salesclerks. Prices and gross margins tend to be high, but this is of secondary importance to the customer who strongly values distinctive merchandise, attractive stores, and quality personnel. Examples of specialty stores include Benetton, Victoria’s Secret, The Body Shop, Footlocker, and Crate & Barrel. PTS: 1 REF: 234 Communication KEY: CB&E Model Distribution OBJ: 15-3 TOP: AACSB MSC: BLOOMS Synthesis 6. Discount stores are retail chains that compete on the basis of low prices, high turnover, and high volume. Name and briefly describe four types of discounters, and give an example of each type. ANS: FULL-LINE DISCOUNTERS. These stores are similar to traditional department stores, except that they carry a much broader assortment of well-known, nationally branded “hard goods” and offer consumers very limited service. Most full-line discounters are national chains such as Kmart, Walmart, and Target. Supercenters combine a full line of groceries and general merchandise with a wide range of services. SPECIALTY DISCOUNT STORES. Single-line specialty discount stores offer consumers a nearly complete selection of one line of merchandise and use self-service, discount prices, high volume, and high-turnover merchandise in their retailing strategies. These stores are also called “category killers” because they dominate their narrow segment. Toys “R” Us (toys), Home Depot (home improvement), Office Depot (office supplies), and Best Buy (electronics) are examples. WAREHOUSE MEMBERSHIP CLUBS. These are usually warehouse outlets that allow members to buy items on a cash-and-carry basis. Examples include Costco and Sam’s Club. OFF-PRICE RETAILERS. These retailers buy manufacturers’ overruns, irregular merchandise, unsold end-of-season output, and goods from bankrupt stores. The merchandise is then sold at large discounts from traditional department stores. Examples include T.J.Maxx, Ross Stores, Marshalls, and Tuesday Morning. A special case of this type is the single-price store, such as Family Dollar, Dollar General, and the One Price Clothing Stores...
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This document was uploaded on 09/29/2013.

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