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business
retailing management

Questions and Answers of Retailing Management

7. How have improvements in the user-friendliness of GIS mapping technology caused retailers to become more research-driven in locating stores?
6. Why isn’t Walmart a good choice to be an anchor at a mall?
5. What lines of retail trade do you believe will be most affected by the growth of retailing on the Internet?
4. Why are some shopping centers and malls now using big-box stores such as Home Depot, Bass Pro Shops and Kaplan’s as anchors? Aren’t anchor stores supposed to be department stores?
3. What types of retailers would be best suited for locating in a lifestyle center?
2. What three criteria should be met to successfully target a market?
1. Why should retailers be concerned about selecting the right target market?How are target market selection and location related?
6. Explain how to select the best geographic site for a store?
5. Discuss the various attributes to consider when evaluating retail sites within a retail market.
4. Describe the various factors to consider when identifying the most attractive geographic market for a new store.
3. Define geographic information systems (GIS) and discuss their potential uses in a retail enterprise.
2. Identify the different options, both store-based and nonstore-based, for effectively reaching a target market and identify the advantages and disadvantages of business districts, shopping centers,
1. Explain the criteria used in selecting a target market.
18. Many retailers face the problem of small amounts of unredeemed money that remain on a gift card. Does this ‘‘breakage’’ belong to the retailer as part of its profit, does it belong in the
17. Because of religious or personal beliefs, a convenience owner may not want to stock a particular product—say, cigarettes or beer—that is normally sold by its category of store. Can government
16. Retailers should abide by the philosophy that ‘‘as long as it is legal, it is ethical.’’ Agree or disagree and explain your reasoning.
15. Should online retailers be required to collect the sales tax on all their sales for the individual states?
14. In a free-market system such as the one we have in the United States, should cities be allowed to use zoning laws to prevent big-box discounters from entering their markets?
13. Should a retailer be allowed to sell products below cost in attempt to increase store traffic? Why?
12. Discuss the concept of exclusive dealing. Are exclusive dealing arrangements in the retailer’s best interest? Are they in the consumer’s best interest?
11. How could two-way exclusive dealing arrangements be harmful to consumers and competition?
10. Could a decision by a manufacturer to engage in dual distribution be harmful to the consumer and members of the supply chain? Explain your reasoning.z
9. Should a retailer be held liable for statements made by its sales staff, even if the staff was instructed not to make such statements? Explain your reasoning
8. Should a McDonald’s franchisee be held liable for selling a Happy Meal to an already overweight child? Why?
7. A New York judge recently ruled that a retailer with the first name of John committed trademark infringement when he renamed one of his existing stores ‘‘Trader John’s’’ and redesigned
6. Do you believe that fake merchandise is sold on eBay? If so, what can eBay do about it, within reason?
5. Should all types of ‘‘puffery’’ be removed from ads? Explain your reasoning.
4. If a student goes to a flea market and buys what he knows to be a fake Polo shirt for $18, is this an example of ‘‘deceitful diversion of patronage’’? Is anyone hurt by this transaction?
3. Deceptive pricing harms not only the consumer but also competition.Agree or disagree and explain your reasoning
2. Does vertical price fixing help or hurt the small independent retailer?Why?
1. A busy corner intersection in Houston has gasoline stations on all four corners. These dealers always seem to have identical prices for their gasoline or, at least, they are within one cent of
6. Explain how a retailer’s code of ethics will influence its behavior.
5. Describe how various state and local laws, in addition to federal regulations, must be considered in developing retail policies.
4. Discuss the impact of government regulation on a retailer’s behavior with other supply-chain members.
3. Explain the retailer’s responsibilities regarding the products sold.
2. Differentiate between legal and illegal promotional activities.
1. Explain how legislation constrains a retailer’s pricing policies.
4. If the manufacturer must pay for the recall, would this cause some manufacturers to be more careful so as to avoid recalls? Or would it cause them to hesitate longer before deciding that a recall
3. Would the results achieved in this case have been different if there was a real vendor–retailer partnership? How and why?
2. If the manufacturer or wholesaler must pay for the legitimate costs of a recall, then who would determine the legitimacy of each cost and see that it was not creating an opportunity for middlemen
1. Is the wholesaler responsible if the manufacturer is unable to pay for all the costs of a recall?
12. With the advent of category management, how has the role of the supplier changed?
11. Why is trust so important in a supply chain? Can’t the largest and most powerful member of the supply chain simply tell the others what to do?
10. Why are retailers so dependent on other supply-chain members? Couldn’t they simply perform all eight marketing functions themselves?
9. Should it be legal for a manufacturer to prevent a discount retailer from purchasing the manufacturer’s name-brand products from a diverter and selling these in the discounter’s store?
8. Agree or disagree with the following statement and support your answer.‘‘Retailers should always oppose attempts by the manufacturer to sell its products directly to the consumer from the
7. You are a manufacturer of a popular consumer product that is sold through independent retailers and some department store chains. Today a large bigbox chain approaches you and wants to carry your
6. What is a vertical marketing channel? What is the primary difference between a conventional marketing channel and a vertical marketing channel?
5. Your roommate says he can save money by eliminating the middleman—in this case, the retailer—and purchasing his potato chips at Costco in 8-pound boxes. He says you pay too much by purchasing
4. For years, Dell was known for selling its computers directly to the consumer. Then it started selling them at Walmart and Best Buy. A classmate contends, ‘‘Selling through a middleman is only
3. Facilitating marketing institutions, since they don’t take title to the goods, add no value to a supply chain. Agree or disagree with this statement and explain your reasoning.
2. Must a retailer be involved in performing all the marketing functions? If it can rely on other members of the channel, what functions can they perform and which members can perform them?
1. Why must a retailer view itself as a member of a larger marketing system?Can’t JCPenney’s, Costco, or Best Buy be successful on its own?
3. What can a manufacturer do in advance to avoid having a current supply-chain partner object?
2. What does such a move do to the existing channel relationships?
1. What is the real cost of a manufacturer becoming an e-tailer?
4. Understand the importance of a collaborative supply-chain relationship.
3. Explain the terms dependency, power, and conflict and their impact on supply-chain relations.
2. Describe the types of supply chains by length, width, and control.
1. Discuss the retailer’s role as one of the institutions involved in the supply chain.
5. If you were the independent retailer, what would you do? Why?
4. Can the independent retailer breakaway from the other four retailers? How?
3. What about the current independent bicycle retailer that has been in the market the longest? Is the retailer in a dangerous place?
2. What could happen to change the current market structure?
1. What market structure best describes the current market conditions for these four retailers—Trek, Erik’s, Dick, and Target? Given the market structure you have chosen, in what manner do the
14. Is it better for a retailer to develop a new private-label brand or to try to revive a once-prestigious brand that has been discontinued? Explain your reasoning.
13. Several possible explanations were given as to why retailers from smaller countries tend to do better when entering foreign markets then those from larger countries. Do you agree or disagree with
12. What do you think about the projected growth of the rental format? Would you rent your textbooks if an outlet was available on your campus? If your best friend was getting married, would you
11. If a new retail format is a hit in one country, it generally will be successful in all countries. Agree or disagree?
10. Will the Internet ever completely replace traditional bricks-and-mortar retailing? Provide a rationale for your response.
9. If a retail format enters the decline stage of the retail life cycle, does that mean that this format will be gone within the next decade? Or can it linger in the decline stage for years? Can a
8. Would strategies for retailers differ in the four stages of the retail life cycle?What strategies should be emphasized at each of the four stages?
7. Describe the retail accordion theory of competition. What are this theory’s major strengths and weakness?
6. Describe the wheel of retailing theory. What are the theory’s major strengths and weakness? Does this theory do a good job of explaining what has happened to American retailers today?
5. Someone once said that ‘‘the supercenter format will kill the grocery retailers.’’ However, this hasn’t happen. Can you think of an explanation as to why this hasn’t occurred?
4. Can divertive competition occur only in intertype competition—that is, where two different types of retailers with a similar product compete with each other?
3. Provide an example of intratype competition that was not mentioned in the text. Provide an example of intertype competition that was not mentioned in the text. Can a retailer face both intratype
2. Why is it so important for a retailer to develop a protected niche?
1. Can a retailer ever operate in a pure monopoly situation? If you believe that this is possible, provide an example and explain what dangers this retailer faces. If you believe this is not
4. Describe the changes that could affect retail competition.
3. Describe the four theories used to explain the evolution of retail competition.
2. Distinguish between various types of retail competition.
1. Explain the various models of retail competition.
3. Because she is the manager of the mall’s largest store, not only will other managers look to Pat Snyder for advice but also she carries considerable influence with Ms. Donnelly. What should Pat
2. What do you think of each of Pam Donnelly’s ideas? What population and social or economic trends support your conclusion(s)? Why?
1. Based on Chapter 1’s discussion of both the creative and analytical approach, are Pam Donnelly’s ideas sufficiently creative to attract new business (sales), and what analyses should she have
12. Why should a retailer care about a customer after a sale has been made?
11. Does a consumer begin the shopping and purchasing process at the needrecognition stage?
10. Why is the consumer shopping and purchasing model presented within the text called a process model? Explain how understanding this process could affect a retailer’s actions.
9. How are retailers affected by the fact that today’s college students are graduating with a highest amount of student debt ever? Can you give an example where this will help a retailer? Will this
8. In recent years, the net wealth of the average American has grown at a slower rate, if not declined. Should retailers worry about this? Why?
7. Why is it more difficult for retailers to manage their businesses when economic turbulence is high?
6. Which recent trend—parents returning to live with their children or children returning to live with their parents—is going to have the most significant impact on retailers? What can retailers
5. Should retailers care about trends such as the delay or even postponement of marriage by modern Americans? After all, how does this affect apparel retailing? restaurant retailing? home furnishing
4. What strategies should retailers develop given the higher level of educational attainment today? Explain your reasoning.
3. It is important for a retailer to understand that as boomers age, they change their shopping behavior. Can you provide one example from current events where a retailer successfully adapted to this
2. Between 2010 and 2050, what type of retailers will be most affected by changes in the ethnic makeup of the population? Will these same retailers be affected by the changing age distribution?
1. During the recent recession, some so-called retail experts urged retailers to cut expenses to the bone and not to worry about their customer-service levels. Was this a good idea? What is the
4. Discuss the consumer shopping and purchasing model, including the key stages in the shopping and purchasing process.
3. Describe the changing economic trends and their effects on retailing.

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