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Unformatted text preview: consumers involved in the retail experience, also known as:
Interactivity is a major trend in retailing today that directly involves each customer in the buying
KEY: CB&E Model Distribution OBJ: 15-7 TOP: AACSB Reflective MSC: BLOOMS Application ESSAY
1. Define retailing and list the factors that are used to classify retail operations.
Retailing is defined as all activities directly related to the sale of goods and services to the
ultimate consumer for personal, nonbusiness use or consumption. A retail establishment can be
classified according to its ownership, level of service, product assortment, and price.
KEY: CB&E Model Distribution OBJ: 15-1 TOP: AACSB MSC: BLOOMS Synthesis 2. Define independent retailer, chain store, and franchise and give an example of each.
Retailers owned by a single person or partnership and not operated as part of a larger retail
institution are independent retailers. Local florist, shoe stores, and ethnic food markets typically
fit this classification. Chain stores are owned and operated as a group by a single organization.
Gap and Starbucks are examples of chain stores. Franchises, such as Subway or Quiznos, are
owned and operated by individuals but are licensed by a larger supporting organization.
KEY: CB&E Model Distribution OBJ: 15-2 TOP: AACSB MSC: BLOOMS Synthesis 3. There are several types of retail stores, each offering a different product assortment, service level,
and price level, according to the shopping preferences of its customers. Name eight types of
retailers. For each type, indicate the level of service, product assortment, and level of price.
See Exhibit 15.1.
Type of Retailer
Full-line discount store
Restaurant Level of Service
Moderately high to
Low to moderate
Moderate to low
Moderate to low Product Assortment
Broad Level of Price
Moderate to high Narrow
Medium to narrow
Medium to broad
Medium to broad Low
Low to high Broad
Medium to narrow
Narrow Moderate to high
Moderately low to
Low to very low
Low to high PTS: 1
KEY: CB&E Model Distribution OBJ: 15-2 TOP: AACSB MSC: BLOOMS Synthesis 4. Compare and contrast supermarkets and convenience stores. Name several characteristics of each
store in your answer.
SUPERMARKETS are large, departmentalized, self-service retailers that specialize in wide
assortments of foodstuffs and some nonfood items. Prices are moderate, and profit margins are
slim. Supermarkets seek to meet consumer demands by providing larger, one-stop stores (all the
way up to the giant superstores) and scrambled merchandising.
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This document was uploaded on 09/29/2013.
- Fall '13