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 possible, explain why not.
2. 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 each other.
Is this evidence of horizontal price fixing? Why or why not?
In addition, how does legislation constrain a retailer’s pricing policies?
3. What lines of retail trade do you believe will be most affected by the growth of retailing on the Internet?
4. Why should a retailer plan on taking markdowns during a merchandising season? In addition, which markdown policy would be best for sporting goods? Would your answer be the same for a specialty apparel store? Explain your reasoning.
5. Why are the desired promotional outcomes for other members of a retailer’s supply chain different from the retailer’s promotional goals? Isn’t the marketing supply chain supposed to be a partnership? Explain the reasoning behind your answer.
6. What is the psychology of merchandise presentation, and how is it used? Can it be used by e-tailers? Explain the reasoning behind your answer.
7. If value is uniquely defined and experienced by each customer how can a retailer develop an overall value proposition that appeals to all customers? Explain the reasoning behind your answer.