DISCUSSION QUESTIONS AND PROBLEMS 1. How do retailers add value to the products bought by 8. An entrepreneur approaches you about how to sell consumers? her new writing pens to consumers. The pens have a 2. What is your favorite retailer? Why do you like this unique benefit--they are more comfortable to use retailer? What would a competitive retailer have to than traditional pens. The entrepreneur is concerned do to get your patronage? the retailers she has approached want to buy the pens 3. What are the benefits and limitations of purchasing a from her at $10.00 a piece and then sell the pens in home entertainment system directly from a number of their stores at $18.00 to consumers. The entrepre- component manufacturers rather than from a retailer? neur is dismayed at the extra $8.00 the retailers are 4. What retailers would be considered intratype competi- getting and has decided to sell the product directly tors for a convenience store chain such as 7-Eleven? to consumers for $10.00. She wants to know your What firms would be intertype competitors? opinion. What do you think? Why? 5. How does Walmart contribute and/or detract from 9. From a personal perspective, how does retailing rate the communities in which it operates stores? as a potential career compared with others you are considering? Why? 6. The same brand and style of men's suits are sold at different prices at a department store like Macy's and 10. In this chapter, some socially responsible activities engaged in by retailers are described. Take the per- at a specialty store like Men's Wearhouse. Why would a customer choose to buy the suit from one store spective of a stockholder in one of these companies. rather than the other? What effect will these activities have on the value of its stock? Why might they have a positive or negative 7. Compare and contrast the retail mixes of department effect? stores and full-line discount stores. Use bullet points or a table to list the similarities and differences. SUGGESTED READINGS ALLO