Quiz Questions

Quiz Questions:

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Q13-1

List and briefly describe four types of retail chains.

Q13-2

When a consumer selects a retailer, factors related to economic needs are very important.

What are six of these factors?

Q13-3

What are three growth options available to successful retailers? Briefly describe each of these options.

Q13-4

List the five key components of a strategic retail management program.

Q13-5

List six different types of limited-function merchant wholesalers.

Answers:

A13-1

Corporate chains – Statistics Canada defines a corporate chain as "an organization operating four or more retail outlets in the same kind of business, under the same legal ownership."

(p. 335 of text)

Cooperative chains – Retailer-sponsored groups, formed by independent retailers, that run their own buying organizations and conduct joint promotion efforts.

(p. 335 of text)

Voluntary chains – Wholesaler-sponsored groups that work with independent retailers.
(p. 335 of text)

Franchise operations – In a franchise operation, the franchiser develops a good marketing strategy, which the retail franchise holders then carry out in their own units.

(p. 336 of text)

A13-2

(p. 341 of text)

A13-3

Horizontal expansion – This can be achieved by adding more stores, or more product lines, or more forms of retailing.
Vertical integration – Can involve retailers acquiring their own wholesaling and/or manufacturing operations.
A combination of a. and b. above.

(pp. 344 and 345 of text)

A13-4

Long-term objectives, such as customer loyalty and patronage and maximum profits.
Customer expectations and marketing environment.
Strategic variables, such as human resource variables, marketing variables, and financial variables.
Short-term objectives, such as day-to-day customer satisfaction and reaching annual profit margin targets.
ROI and ROA.

(pp. 345 and 346 of text and see Exhibit 13-3, p. 346)

A13-5

(pp. 352 – 354 of text and see Exhibit 13-5, p. 352.)