Question

True or False: The main factors involved in determining a product's markup are the inventory turnover rate and the services performed by the retailer.

True or False: Other things being equal, stores with a higher inventory turnover rate can cover their costs and earn a profit while charging a smaller markup.

True or False: In the case of convenience stores, customers usually compare prices, assortments, and quality levels at competing outlets before making purchase decisions.

True or False: Specialty retailers typically attract customers by offering the products at the lowest possible prices.

True or False: A full-service retailer usually sells convenience products that people can purchase without any assistance.

True or False: Vending machines are classified as a form of automatic merchandising.

• Which of the following is one of the fundamental steps in the marketing strategy process on which a retailer bases its key decisions?

Selecting a target market

Stipulating a minimum profit margin

Determining the store location and atmosphere

Determining the method of inventory management

•A retail establishment that carries a wide variety of product lines, stocking all of them in some depth is referred to as a _____.

rack jobber

category killer

specialty store

general merchandise retailer

• Explain how store atmospherics help retailers to attract customers.

• What is online retailing? How has the Internet enhanced the functions of the direct marketers?

• When a retailer decides to offer gift wrapping, product assembly, and registries, they are considering the elements of their:

merchandising strategy.

customer service strategy.

promotional strategy.

pricing strategy.

• A retailer seeks to communicate information about its stores through its ______ strategy.

merchandising

location/distribution

promotional

store atmospherics

• Retailers can project their personalities through their ______.

pricing strategy

customer service strategy

atmospherics

merchandising strategy

•The basic objective of all customer services focuses on:

attracting and retaining target customers, thus increasing sales and profits.

charging higher prices on products, therefore increasing profits.

making the shopping experience more enjoyable.

encouraging customers to shop in brick-and-mortar stores rather than online.

Answer 1

Answered first 4 as a per policy

The main factors involved in determining a product's markup are the inventory turnover rate and the services performed by the retailer - True

The amount a retailer adds to the product's cost is called the markup and it depends on services offered by the retailer (like larger stores have higher markups) and the inventory turnover.

Other things being equal, stores with a higher inventory turnover rate can cover their costs and earn a profit while charging a smaller markup. - True

Inventory turnover is the number of times a company has sold and replaced inventory during a given period. If a company has inventory the company can make more profit by charging smaller markups.

In the case of convenience stores, customers usually compare prices, assortments, and quality levels at competing outlets before making purchase decisions. - True

The convenience stores attempt for in-house advertisements and displays well-trained staff to differentiate themselves

Specialty retailers typically attract customers by offering the products at the lowest possible prices. - False

Speciaity retailers handle only a part of a single product line and posses depth knowledge of the product and usage.