Marketing HW 7

Distinguish between specialty stores, department stores, supermarkets, convenience stores, superstores, and category killers. Give an example of each.
Specialty store- a retail store that carries a narrow product line (Tiffany’s)

Department store- carries a wide variety of product lines, each operated as a separate department managed by specialist buyers (Macy’s)

Supermarkets- large, low-cost, low-margin, high-volume store that carries a wide variety of grocery and household products (Price Chopper)

Convenience store- small store located near residential areas, that is open long hours, and carries a limited line of high-turnover convenience goods (7 Eleven)

Superstores- much larger than a regular supermarket that offers a large assortment of routinely purchased food products, nonfood items, and services (WalMart)

Category killers- giant specialty store that carries a very deep assortment of a particular line (Best Buy)

What is the wheel-of-retailing concept? Does it apply to online retailing?
Suggests new types of retailers usually begin as low-margin, low-price, low-status operations buy later evolve into higher-priced, higher-service, eventually becoming like the conventional retailers they replaced.

Challenge established retailers that have become fat by letting their costs and margins increase.

Doesn’t apply to online retailing

What is retail convergence? Has it helped or harmed small retailers?
Diff. types of retailers now sell the same products at the same prices to the same consumers. Merging of consumers, products, prices, and retailers.

Greater competition for retailers and greater difficulty in differentiating the product assortments of different types of retailers

Harms small retailers because the new arrival of a new arrival of a superstore can quickly force nearby independents out of business

Name and describe the different types of wholesalers.
Merchant wholesalers
-Full-service and limited-service

Brokers and agents

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