MKT 320 exam 2
Abercrombie & Fitch operates three well-known chains of stores, each designed to serve a different target market. The company's namesake Abercrombie & Fitch stores target young adults age 21 and older, while its Hollister stores are geared to teens 14 and older and its Abercrombie Kids stores sell clothing for children from 7 to 14. From this information, we can conclude that A&F has taken a __________ approach to market segmentation. benefit psychographic geodemographic demographic geographic
demographic
Decision makers at a department store chain know from market research that their average customer comes from a household of $60,000 annual income, 33% of their customers have children at home, 51% of their customers have a college education, and the median age of their customers is 42. These statistics are an example of __________ information that a retailer might use for market segmentation.
demographic
1/5 Q5 At Fayette Mall, which of the following is an anchor store? Bath & Body Works Victoria's Secret Zumiez Abercrombie & Fitch Dillard's
dillards, jc penney, h and m, dicks sporting goods, macys
1/2 Q12 Which method of entering the global marketplace is the most expensive and also the most risky - but also offers the highest profit potential? A strategic alliance A joint venture Direct investment Franchising
direct investment
When evaluating the performance of a retailer, which of the following is the best financial performance measurement to use?
return on assets
The strategic profit model graphically summarizes the factors that affect a retail firm's financial performance. A manager or analyst who completes the strategic profit model will compute several dollar figures and ratios and "plug them into" the model. The final computation - and the main point of using the model - will be ______ , which is reported as a ______
return on assets, ratio
1/3 Q 10 To report chainwide sales growth statistics, retailers and retail industry analysts generally exclude locations that have been open for less than one year. The resulting figure is known as __________ or, alternately, "comparable store sales growth."
same-store sales growth
2/2 Q5 Common sense tells us that customers will stay away from a shopping center if there are too few parking spaces. The textbook authors tell us, however, that too many empty spaces may also be a problem; people see the empty spaces and think it means the stores are unpopular. For a supermarket, retail industry experts recommend _____ spaces per thousand square feet of retail store space.
10-15
When a retailer is deciding upon a type of location (e.g., freestanding location, Main Street, regional mall, community strip center), it needs to select a location that is consistent with __________. the density of the target market in relation to the location the typical shopping behavior of members of its target market its positioning strategy all of the above none of the above
all of the above
1/2 Q5 The asset turnover management path is one of two analytical sequences that are woven into the strategic profit model. The information that is used to analyze a retailer's asset management path comes primarily from the retailer's __________.
balance sheet
Which of the following ratios appears in the strategic profit model and is one of the terms used to calculate return on assets (ROA)?
net profit margin
1/4 Q14 In a SWOT analysis, the letter O stands for __________.
opportunities
2/6 Q9 The authors of your textbook would describe McDonald's at Palomar Centre as a(n) __________.
outparcel
The authors of your textbook would describe Arby's at Lansdowne Shopppes as a(n) __________.
outparcel
Which of the following does not describe asset turnover? The "asset" part of asset turnover includes both current assets and fixed assets. It is the retailer's net sales divided by its total assets. It assesses the productivity of a firm's investments in its assets. It indicates how many sales dollars are generated for each dollar invested in assets. In the strategic profit model, it is on the profit management path.
In the strategic profit model, it is on the profit management path.
Shirley Turley owns Ballistic Bazaar, a gun shop and shooting range. Key financial figures for Shirley's business for fiscal year 2021 include: Net Sales: $274,000 Operating Expenses: $22,000 Interest Expense: $900 Average Inventory: $21,200 Total Current Assets: $33,300 Fixed Assets: $111,100 Net After-Tax Profit: $56,300 Taxes: $21,000 Cost of Goods Sold: $173,800 What was Ballistic Bazaar's return on assets (ROA) in FY 2019? [
38.99
Sara Herrera runs an Internet-based retail operation from her spare bedroom. The online storefront - named For Reality Lovers - sells DVDs, posters, figurines, bobblehead dolls, collectors' cards, licensed logo apparel, and other memorabilia from TV reality shows such as Survivor, Dance Moms, Fear Factor, American Idol, The Apprentice, The Amazing Race, Dating in the Dark, Top Chef, Project Runway, Big Brother, Kate Plus 8, Dancing with the Stars, Jersey Shore, Naked and Afraid, Tough Enough, Real Housewives of [insert city name], Dog the Bounty Hunter, The Glee Project, Bachelor in Paradise, Here Comes Honey Boo Boo, Duck Dynasty, and Keeping Up with the Kardashians. Key financial figures for Sara's business for fiscal year 2021 include: Net Sales: $23,000 Operating Expenses: $2,200 Interest Expense: $0 Average Inventory: $5,900 Total Current Assets: $8,400 Fixed Assets: $9,400 Net After-Tax Profit: $8,150 Taxes: $3,450 Cost of Goods Sold: $9,200 What was For Reality Lovers' return on assets (ROA) in FY 2019?
45.79
Common sense tells us that customers will stay away from a shopping center if there are too few parking spaces. The textbook authors tell us, however, that too many empty spaces may also send a negative signal (i.e., that the stores are unpopular). For a shopping center, retail industry experts recommend _____ spaces per thousand square feet of retail store space. 3 5.5 10 to 15 20 25
5.5
For a retailer, which of the following is a potential disadvantage of locating in an enclosed mall?
A. Mall management has tight control over retailers' operations, such as strict rules about window displays and signage. B. Customers may choose to go to strip centers or other shopping centers where they can park close to a retailer's front door. C. Occupancy costs are higher than those of strip centers, freestanding sites, and most central business districts.
Which of the following describes a consumer who is using an internal source of information during the information search step of the buying process? Cierra Barrera "takes mental inventory" of what she has learned from her past shopping and purchase experiences. Grace Chase visits stores and talks to salespeople. Joyce Royce tries to "get inside" the minds of friends and family members. Brewster Schuster looks inside magazines, books, consumer guides, and product brochures. Abel Gable reads product information at a retailer's website.
Cierra
1/3 Q2 Regarding a Metropolitan Statistical Area (MSA), which of the following is true? A. A Micropolitan Statistical Area (MiSA) may be larger than some Metropolitan Statistical Areas (MSAs). B. By definition, an MSA has 50,000 or more inhabitants in its core urban area. C. It may make sense for a retailer to locate several stores in one MSA and none in some others. D. All of the above. E. Both B and C.
D
1/3 Q6 For a retailer, which of the following is a potential advantage of locating in an enclosed mall? A. Malls usually attract shoppers from a wide trade area. B. Customers who won't visit an outdoor shopping venue during bad weather may still come to the mall. C. Mall management usually ensures a level of consistency that benefits all tenants (such as uniform hours of operation). D. All of the above. E. Both B and C.
D
1/4 6 According to the authors of your textbook, one of the ways a retailer can develop a sustainable competitive advantage is by building strong relationships with customers, i.e., by cultivating customer loyalty. All other things being equal, retailers can build strong customer loyalty by __________ A. offering unique merchandise B. offering attractive rewards through a frequent shopper program C. using its websites and social media to build a strong retail community D. doing any or all of the above E. doing only A or B. (C doesn't work.)
D
Regarding omnicenters, with which of the following statements would the authors of your textbook likely agree? A. They accommodate the desires of cross-shoppers, such as the shopper who wants to visit Neiman Marcus, Walmart, and P.F. Chang's in one outing. B. Omnicenters typically combine more than one retail setting (e.g., an enclosed mall, a lifestyle center, and a power center) into the same location. C. Compared to most other shopping center locations, they spread the common area maintenance (CAM) charges among a larger pool of retail tenants, which reduces each individual retailer's share of the cost. D. All of the above. E. Both A and C.
D
With regard to building a sustainable competitive advantage through customer loyalty, which of the following statements is consistent with the information that appears in your textbook? A. Unique merchandise has enabled Lululemon to create customer loyalty. B. Outstanding customer service has helped Ritz-Carlton hotels to build customer loyalty. C. Starbucks has boosted customer loyalty by building a strong online retail community. D. All of the above. E. Both A and B.
D
1/2 7 With regard to developing and maintaining a sustainable competitive advantage, with which of the following statements would the authors of your textbook likely agree? A. Efficient internal operations (e.g., human resource management) can be a source of sustainable competitive advantage. B. Location can be the most important source of sustainable competitive advantage. C. It's almost impossible for a retailer to have more than one source of sustainable competitive advantage. D. All of the above. E. Both A and B.
E
Which of the following examples best illustrates a hedonic need? Sophie Brophy buys herself a new pair of shoes to cheer herself up at the end of a bad day. Mason Grayson buys himself a calculator for his finance class. Quenton Hinton buys himself a suit to wear to a job interview. Daphne Gaffney buys tires to replace the worn out ones on her car. Lauren Warren buys herself a new beanie to keep her head warm on cold days.
Sophie
Inside the corporate offices of a well-known store chain, marketing executives Carly Farley and Cecil Diesel are having a spirited discussion. Specifically, they are debating whether they should tailor the marketing mix of their new product to appeal to the "Achievers" market segment or the "Innovators" segment, or whether they should develop a separate marketing mix for each of those segments. From their use of labels like "Achievers" and "Innovators" to describe their target market, we can determine that Carly and Cecil's company has bought into the __________ segmentation typology. Group of answer choices
VALS
The emerging international markets that are sometimes referred to as "the BRIC" countries are __________. Bolivia, Rhodesia, Indonesia, and Chile Bangladesh, Republic of the Congo, Iceland, and Cambodia Brazil, Russia, India, and China Burma, Rwanda, Israel, and Cuba Britain, Romania, Italy, and Canada
brazil, russia, india, china
Regarding a Metropolitan Statistical Area (MSA), which of the following is true? An MSA is a core urban area consisting of more than 50,000 inhabitants, plus any adjoining communities that have a high degree of economic and social integration with the core community. The Lexington-Fayette MSA consists of six counties: Bourbon, Clark, Fayette, Jessamine, Scott, and Woodford. It may make sense for a retailer to locate several stores in one MSA and none in some others. All of the above. None of the above.
all the above
Bianca Wonka has inherited a candy store chain that was started by her uncle. Bianca has completed an analysis of the company's financial statements and is now strategizing to improve the company's performance. Which of the following actions would result in greater return on assets (ROA)? Bianca successfully implements a market penetration growth strategy, which increases the company's "top line" (i.e., net sales). At the same time, she negotiates with vendors and lowers the company's per-unit cost of goods sold. Bianca reduces operating expenses by finding ways to reduce energy costs and cut waste. Bianca identifies idle and underperforming company assets and sells them. The money from the sale of assets is then used to pay off all of the company's debt. Any or all of the above. Both A and B.
any or all of the above
All other things being equal, the best area for locating a store is __________. the area that will generate the greatest long-term profit the area with the lowest operating costs the area that has the greatest population density the area with the least competition the area that has the fastest-growing economy
area that will generate the greatest long term profit
Garrett Jarrett owns The Sweat, Stink & Suffer Health Spa (also known as the "Triple S Gym"). Garrett believes he can segment his market into three distinct groups: those who want to join a spa so they can lose weight those who seek a target-rich environment for checking out potential dates those who want a gym only for serious pumpage of iron Thus, Garrett segments his market into those who are seeking a higher level of physical fitness, those who are seeking companionship, and those who are seeking a bulkier or more cut build. Which label most closely resembles the segmentation base that Garrett is using in order to understand and target his market?
benefit segmentation
Shirley Turley owns Ballistic Bazaar (a gun shop and shooting range). Shirley decides she can segment her market into three distinct groups: those who want a weapon for home protection those who want a weapon for seasonal hunting of varmints collectors who enjoy owning a wide variety of firearms for their intrinsic and aesthetic value Thus, she segments her market into those who are seeking safety for their household and/or family, those who are seeking recreation, and those who are seeking the satisfaction of ownership in and of itself. Which label most closely resembles the dimension that Shirley is using to segment her market? Benefit segmentation Age segmentation Family life-cycle (FLC) segmentation Geographic segmentation Income segmentation
benefit segmentation
_______________ is the process of grouping consumers into market segments based on what they want the product to do for them. Demographic segmentation Geographic segmentation Benefit segmentation Buying situation segmentation Psychographic segmentation
benefit segmentation
To minimize conflict among franchisees, most franchise agreements grant franchisees an exclusive territory. This can be one of the benefits of operating a franchise, namely the avoidance of __________. synergism cannibalization dissemblance replication convergence
cannibalization
1/5 Q2 Fayette Cigar Store is located at 137 East Main Street (between North Martin Luther King Boulevard and North Limestone) in Lexington, Kentucky. It adjoins the Fayette County District Court on one side and the Pam Miller Downtown Arts Center on the other. Which of the following is the correct label for Fayette Cigar Store's location? Strip center Freestanding Central business district (CBD) Power center Mixed-use development (MXD)
central business district
Sunrise Bakery is located in a row of adjoining storefronts at 111 West Main Street (between North Limestone and North Upper) in Lexington, Kentucky. Which of the following is the correct label for Sunrise Bakery's location?
central business district
Chanda Lear just found out that her sister-in-law, Holly Wood, is coming to visit for three days. Between now and the time "Sis" arrives (which is about six hours from now), Chanda needs to buy paper towels, eggs, milk, diet soda, an air-freshener refill cartridge, snack crackers, and dish soap. Four retailers are in Chanda's consideration set for the quick shopping trip she is about to make: Kroger (about three miles away), ALDI (about a mile away), Walgreens (about a half-mile away), and Walmart (about six miles away). Chanda believes she can accomplish one-stop shopping at any one of the four stores. In the terminology of the multiattribute model, if Chanda were to articulate her beliefs about the stores' performance benefits, Kroger would receive the following scores (on a scale of 1 to 10, with 10 being best). Desirability of brands carried: 9 Ease of parking-lot and front-entrance access: 3 Budge friendliness: 4 Pleasure of the shopping experience: 6 Proximity to home: 4 Chanda would give ALDI the following scores on the same performance benefits. Desirability of brands carried: 4 Ease of parking-lot and front-entrance access: 8 Budget friendliness: 10 Pleasure of the shopping experience: 3 Proximity to home: 7 Chanda would give Walgreens the following scores on the same performance benefits. Desirability of brands carried: 5 Ease of parking-lot and front-entrance access: 6 Budget friendliness: 2 Pleasure of the shopping experience: 5 Proximity to home: 10 Chanda would give Walmart the following scores. Desirability of brands carried: 8 Ease of parking-lot and front-entrance access: 1 Budget friendliness: 8 Pleasure of the shopping experience: 2 Proximity to home: 2 Chanda places the following importance weights on the five key performance benefits (with 10 representing "very important" and 1 representing "very unimportant"). Desirability of brands carried: 8 Ease of parking-lot and front-entrance access: 5 Budget friendliness: 4 Pleasure of the shopping experience: 7 Proximity to home: 8 If we use the multiattribute model to predict which retailer Chanda will choose, which of the following can we conclude?
chanda will go to walgreens
1/6 Q4 Regency Centre in Lexington, Kentucky is anchored by Kroger, Michael's, and T.J. Maxx. The shopping center, which has an L-shaped layout, also is also home to Five Below, Pet Supermarket, Sally's Beauty Supply, GNC, and IHOP. The authors of your textbook would categorize Recency Centre as a(n) __________. neighborhood shopping center power center omnicenter community shopping center lifestyle center
community shopping center
If a retailer identifies customers in its target market by benefits sought, lifestyles, and demographics, it is taking the __________ approach to segmentation. geodemographic composite psychosocial buying-situation VALS™
composite
On her way home from classes at the university, Staci Casey remembers that she used her last paper towel that morning. Staci is aware that Walmart is likely to have the best price in town on national brands such as Bounty or Brawny. She also knows that Kroger may have one brand of paper towels or another on sale at a reasonable price. Staci does not alter her course to drive toward either Walmart or Kroger; rather, she turns into the parking lot of a Walgreens drug store that is directly on her route home from school. Staci enters the store with the intention of buying whatever brand of paper towels is available, in whatever quantity of rolls the package contains, at whatever price Walgreens is charging. The authors of your textbook would say that this scenario illustrates which "shopping situation"?
convenience shopping
__________ refers to the total amount of money that a retailer pays vendors for the merchandise that it (i.e., the retailer) subsequently sells. Return on assets (ROA) Gross margin Selling, general, and administrative (SG&A) expenses Cost of goods sold (COGS) Current ratio
cost of goods sold
Trade area zones are best determined based upon __________. demographics customer interests customer drive time psychographics topographical characteristics
customer drive time
The fashion life cycle has 5 stages. During the ___ stage, the fashion begins to decline in popularity
fourth
In 1985, Kroger Co. purchased Turkey Hill Minit Markets (a Lancaster, Pennsylvania-based chain of convenience store/gas stations). As part of the same deal, Kroger also acquired Turkey Hill Minit Markets' sister company - Turkey Hill Dairy, based in Conestoga, Pennsylvania - a producer of fresh milk products, ice cream, frozen yogurt, and bottled drinks. In total, Kroger's Turkey Hill acquisition was part of a(n) __________ growth strategy.
diversification
Operating profit margin is also referred to as __________. earnings before interest and taxes (EBIT) return on assets (ROA) gross margin (GM) cost of goods sold (COGS) selling, general and administrative (SG&A)
earnings befire interest and taxes
1/4 7 Kirk Burke is shopping for tires for his pride and joy, i.e., his 2016 Camaro SS. When Kirk bought the car new, it came equipped with Pirelli P Zero tires. Kirk is not sure he wants to replace the original tires with more of the same. The Pirellis performed admirably in the spring and summer months. However, for the $850 to $1,100 that he'll end up spending, Kirk suspects that there may be other brands and types of tires that would be more appropriate for year-round driving. Kirk also knows that some tires are more appropriate than others for a cool car like his. He wouldn't want to buy tires that he and his buddies think of as belonging on their grandfathers' Oldsmobiles (such as Uniroyal, Goodyear, or General), just like he wouldn't want to disgrace his beloved Camaro by buying tires that would look more at home on the Volvos, Subarus, and minivans of cautious "soccer moms." Maybe BFGoodrich? Toyo? Stick with Pirelli? Kirk isn't at all sure what to buy. All he knows at this point is that he'll visit a lot of websites and tire retailers, and he'll have a lot of conversations with service representatives before he makes his final choice. Kirk's tire shopping behavior most closely resembles __________. limited problem solving impulse buying autonomic decision making habitual decision making extended problem solving
extended problem solving
All other things being equal, retailers can expect a consumer's most important reference group to be his or her __________. fellow sorority or fraternity members family college classmates, past or present favorite celebrities work colleagues
family
__________ is a type of product or way of behaving that is temporarily adopted by a large number of consumers because the product, service, or behavior is considered socially appropriate for the time and place.
fashion
1/4 19 The fashion life cycle has ____ stages. During the ____ stage, some consumers who are recognized as fashion leaders or innovators adopt the fashion and start a trend in their social group.
five, first
Sondra Alondra owns Gothic Ghoullery, a specialty apparel and accessories retailer. At present, the retailer has eleven locations: three at regional malls, six in strip centers, and two standalone stores. Sondra has five-year leases for each of her standalone locations. At one of these (the Batwing Boulevard location), Sondra pays a monthly amount that is equal to $1.30 per square foot. At the other store (located on Darque Alley), Sondra pays a monthly amount that is equal to 7 percent of her previous month's sales, but no more than $3,100 per month. Sondra's current lease at the Batwing Boulevard location is a(n) _____ lease. The Darque Alley lease, on the other hand, is a(n) _____ lease.
fixed rate, percentage
Orlando, Florida-based Darden Restaurants, Inc., the world's largest full-service restaurant company, owns a portfolio of brands that includes Olive Garden, LongHorn Steakhouse, Capital Grille, Seasons 52, Eddie V's, Yard House, and Bahama Breeze. In Lexington, the Olive Garden and LongHorn locations are wholly owned by Darden, as are most other U.S. locations. However, if you were to visit a Middle East or North Africa location of one of these three restaurants - such as the LongHorn Steakhouse in Riyadh, Saudi Arabia or the Olive Garden in Abu Dhabi, United Arab Emirates - you might notice a wall plaque stating that the restaurant is operated by Americana Group. Indeed, Americana Group (headquartered in Kuwait City) has paid an upfront fee to Darden for the right to operate a total of 60 Darden-branded restaurants. In addition to that, Americana pays a monthly fee to Darden based on the restaurants' sales performance. Americana Group also operates TGI Fridays (a TriArtisan Capital Companies brand), KFC (a Yum! brand), Pizza Hut (also a Yum! brand), and Krispy Kreme locations in the Middle East, under agreements that are similar to the company's agreement with Darden. If the authors of your textbook were to use this scenario to illustrate nondomestic market entry, they would cite it as an example of __________.
franchising
Which method of entering the global marketplace is the least expensive and also the least risky - but also has the lowest profit potential?
franchising
Spalding's Bakery is located at 760 Winchester Road (near the intersection of Winchester Road and Walton Avenue). The bakery adjoins a parking lot and is the sole occupant of its building. Which of the following is the correct label for Spalding's location?
freestanding
Many inner-city areas are going through a process of ________, which is the renewal and rebuilding of offices, housing, and retailers in deteriorating areas. This practice has been criticized by some, because it often results in more affluent people moving into the area and lower-income residents having to leave because they cannot afford to stay. marginalization commercialization trade zone expansion re-zoning gentrification
gentrification
Retail executives who are examining trade areas for a potential store will typically buy information packages (often as a software subscription, sometimes as a complete hardware + software combination) to help them make an informed decision. Such systems describe the spatial features of an area, such as rivers and roads, street addresses and the characteristics of the household at an address, and information about competing retailers in the area. The authors of your textbook refer to this type of information resource as a(n) __________. bird's-eye perspective generator (BPG) customer-spotting system (CSS) interactive topo(graphical) map (ITM) trade-area heat map (THM) geographic information system (GIS)
geographic info system, nielsen claritas, pitney bowes, and esri are examples
1/4 8 Jared Sherrod prefers Nike athletic shoes over any other brand. He does not, however, have a strong preference for any particular retailer, or even for any category of retailer. His next pair of Nikes may be purchased at Finish Line, Shoe Carnival, Foot Locker, JCPenney . . . one never knows. And, since Jared wears his Nikes as an all-around sneaker rather than for playing a particular sport, his next pair may be running shoes, basketball shoes, cross trainers - whatever happens to be convenient to purchase when it's time to buy. Jared's purchase behavior, when it comes to athletic shoes, most closely resembles
habitual decision making
2/4 Tucker Rucker has little to no preference for a brand of tires. He says, "Goodyear, Bridgestone, Toyo, Michelin, Uniroyal, Dunlop, BF Goodrich, Cooper, Hankook, Yokohama, Mastercraft, Cooper, General - they're all about the same. Round, black, and made of rubber." Tucker will go only one place to buy tires for his Ford F-150 truck and for the family Taurus: Walmart Auto Care Center. If one of the vehicles needs tires, Tucker goes to Walmart. Once he's there, he'll try to keep the process short and simple by buying whatever the sales associate recommends, unless he considers the price to be outrageously out of line. Based on the authors' explanation of "types of buying decisions," Tucker's tire shopping behavior most closely resembles __________. habitual decision making autonomic decision making impulse buying extended problem solving limited problem solving
habitual decision making
3/4 One of the four criteria for deciding whether a retail segment is a viable target market is "substantiality." A substantial segment: is one to which the retailer can effectively target promotions and other elements of the retail mix. is made up of customers whose needs are significantly different from those of customers in other segments - and the retailer knows how to satisfy these needs. is a segment whose population is of known or knowable size, social characteristics, and demographic features. has enough buying power to justify developing a special retailing mix. is spread over an entire region, such as "south of the Ohio River, east of the Mississippi River, north of the Gulf of Mexico, and west of the Atlantic Ocean."
has enough buying power to justify developing a special retailing mix.
At which stage of the strategic retail planning process does a retailer answer the questions "Who are our customers?" and "what are our capabilities?"
in step 1, as it defines its business mission
1/4 Q13 At which stage of the strategic retail planning process does a retailer analyze market factors, competitive factors, environmental factors, and its own internal strengths and weaknesses?
in step 2, as it conducts a swot analysis
At which stage of the strategic retail planning process does a retailer analyze market factors, competitive factors, environmental factors, and its own internal strengths and weaknesses?
in step 2, as it conducts a swot analysis
At which stage of the strategic retail planning process does a retailer analyze the impact - or potential impact - of economic conditions on its sales?
in step 2, as it conducts a swot analysis
The profit margin management path is one of two analytical sequences that make up the strategic profit model. The information that is used to analyze a retailer's profit management path comes from the retailer's _______
income statement
2/4 One of the four criteria for deciding whether a retail segment is a viable target market is "identifiability." An identifiable segment: is "self contained" within a single ZIP code. is a segment whose population is of known or knowable size, social characteristics, and demographic features. has enough buying power to justify developing a special retailing mix. is one to which the retailer can effectively target promotions and other elements of the retail mix. is made up of customers whose needs are significantly different from those of customers in other segments - and the retailer knows how to satisfy these needs
is a segment whose population is of known or knowable size, social characteristics, and demographic features.
1/4 17 One of the four criteria for deciding whether a retail segment is a viable target market is "actionability." An actionable segment: is a segment whose population is of known or knowable size, social characteristics, and demographic features. is made up of customers whose needs are significantly different from those of customers in other segments - and the retailer knows how to satisfy these needs. consists of well-informed consumers with active lifestyles. is one to which the retailer can effectively target promotions and other elements of the retail mix. has enough buying power to warrant developing a special retailing mix.
is made up of customers whose needs are significantly different from those of customers in other segments - and the retailer knows how to satisfy these needs. consists of well-informed consumers with active lifestyles.
One of the four criteria for deciding whether a retail segment is a viable target market is "reachability." A reachable segment:
is one to which the retailer can effectively target promotions and other elements of the retail mix.
Gray Fox moved into his first-ever apartment a couple of weeks ago. This evening, Gray will be having dinner guests, and he has begun strategizing to prepare the meal. Halfway through the morning (while he is sitting in his Real Estate Finance class), Gray mentally goes through the paces of preparing a masterful "almost-from-scratch" meal for himself and the five guests he is expecting. He realizes that his kitchen is not yet fully equipped for the task ahead of him; he needs a vegetable steamer. After class, as Gray walks to his car, he is conflicted about whether he should buy something inexpensive that will "get him through the day" or something of high quality and eye-catching style that will become a treasured addition to his "culinary collection." Five retailers are in his consideration set: Walmart (located in a power center, about a mile and a half out of his way on the drive home), Kohl's (located in a different power center, about four miles out of his way on the drive home), JCPenney (located in a regional mall about ten miles out of his way on the drive home), Macy's (located at the same mall as JCPenney), and Williams-Sonoma (also located at the same mall). In the language of the multiattribute model, if Gray were to articulate his beliefs about each respective store's performance benefits, Walmart would receive the following scores (on a scale of 1 to 10, with 10 being best). Quality and style of merchandise: 4 Ease of parking-lot and front-entrance access: 4 Budget friendliness: 9 Pleasure of the shopping experience: 3 Convenience of location: 6 Gray would give Kohl's the following scores on the same performance benefits. Quality and style of merchandise: 6 Ease of parking-lot and front-entrance access: 7 Budget friendliness: 8 Pleasure of the shopping experience: 5 Convenience of location: 5 Gray would give JCPenney the following scores on the same performance benefits. Quality and style of merchandise: 5 Ease of parking-lot and front-entrance access: 3 Budget friendliness: 5 Pleasure of the shopping experience: 4 Convenience of location: 3 Gray would give Macy's the following scores. Quality and style of merchandise: 8 Ease of parking-lot and front-entrance access: 3 Budget friendliness: 4 Pleasure of the shopping experience: 8 Convenience of location: 3 Gray would give Williams-Sonoma the following scores. Quality and style of merchandise: 10 Ease of parking-lot and front-entrance access: 3 Budget friendliness: 2 Pleasure of the shopping experience: 9 Convenience of location: 3 Gray places the following importance weights on the five key performance benefits (with 10 representing "very important" and 1 representing "very unimportant"). Quality and style of merchandise: 7 Ease of parking-lot and front-entrance access: 2 Budget friendliness: 7 Pleasure of the shopping experience: 7 Convenience of location: 3 If we use the multiattribute model to predict which retailer Gray will choose, which of the following can we conclude?
its a tie between kohls and williams sonoma
Jay Bird just found out that his mother is coming to visit for three days. Between now and the time Mom arrives (which is about six hours from now), Jay needs to buy paper towels, eggs, milk, diet soda, an air-freshener refill cartridge, bathroom cleaner/disinfectant, cereal, furniture polish, and dish soap.
jay will go to kroger
Cayley Fraley is a merchandise planner at H&M. Cayley believes that fashion spreads from peer group to peer group, with each group having its own fashion leaders who play key roles in their own social networks. The authors of your textbook would say that Cayley subscribes to the __________ fashion theory.
mass market
1/4 Q1 By recent estimates, the Lexington-Fayette ____ has a population of 516,464, with 321,959 of those individuals residing within Lexington itself. By similar estimates, the Paducah KY-IL _____ is populated by 99,261, of whom 24,941 live within the community of Paducah itself.
metropolitan statistical area, micropolitan statistical area
The Summit at Fritz Farm has over 70 shops, including Whole Foods Market, Anthropologie, Lululemon, Brooks Brothers, Frye, and Bath & Body Works. Other features include restaurants, luxury apartments, a boutique hotel, and office space. The authors of your textbook would classify The Summit at Fritz Farm as a(n) __________.
mixed use development
In the five-stage buying process, as it is presented by the authors of your textbook, a customer enters the __________ stage because of an unsatisfied need.
need recognition
The authors of your textbook describe a buying process that begins with _____ and ends with ____
need recognition, post-purchase evaluation
A(n) __________ describes the nature of the retailer's operations - its retail mix - that will be used to satisfy the needs of its target market. operating plan corporate charter service blueprint mission statement retail format
retail format
1/3 Q8 Kent Dent and his partner "Scratch" Hatch own Scratch & Dent Appliance, which is located in an old house that Scratch inherited from his grandmother. They sell otherwise-new, perfectly usable refrigerators, washers and dryers, and dishwashers that have minor cosmetic damage or defects. Key financial figures for Scratch & Dent for fiscal year 2021 include: Net Sales: $610,000 Total Current Assets: $59,115 Fixed Assets: $177,700 Net After-Tax Profit: $55,900 Taxes: $50,000 Cost of Goods Sold: $410,000 What was Scratch & Dent's return on assets (ROA) in FY 2019? 9.16% 2.58 23.6% 32.79% 15.42%
net income/ total assets 23.6% FIGURE OUT WHY
Regarding legal issues that affect a retailer's location decision, with which of the following would the authors of your textbook likely agree? Municipal regulations such as zoning ordinances, signage restrictions, and licensing requirements rarely - if ever - change. In the U.S., federal law prohibits insurance companies from offering policies that protect retailers from economic damages due to below-ground environmental and health hazards, such as buried petroleum tanks or containers of acid. Retailers typically do not need to concern themselves with "environmental issues" such as hazardous waste disposal or the environmental impact of construction materials. Usually, only manufacturers have to navigate their way through such regulations and restrictions. All of the above. None of the above.
none of the above
1/6 Q 9 The authors of your textbook would describe BJ's Restaurant & Brewhouse at Fayette Mall as a(n) __________. artificial barrier to site accessibility outparcel center of retail gravitation destination store anchor store
outparcel
To develop and refine its target marketing and positioning, a retailer may rely on a two-dimensional plot of consumers' perceptions of the retailer and its competitors. This visual aid is called a __________. Blake Mouton grid Venn diagram PERT diagram perceptual map planogram
perceptual map
According to the authors of your textbook, the three kinds of locations that available to retailers are __________, __________, and __________. community center; neighborhood center; regional mall freestanding; business district; shopping center planned; unplanned; nontraditional power center; lifestyle center; omnicenter community center; neighborhood center; regional mall
planned; unplanned; nontraditional
A store's ____ is the geographic area from which it draws 50 to 70 percent of its customers. Its ____ is located immediately beyond that area, and generates another 20 to 30 percent of the store's customers. The remaining customers come from the store's ____
primary trading area, secondary trading area, tertiary trading area
Positioning is the __________. ranking of a retailer in Stores magazine's annual Top 100 Retailers report; for example, Walmart is ranked #1 in the 2019 Top 100 Retailers and Costco is ranked #4. process of creating an image in the customer's mind, relative to the retailer's competitors retailer's effort to have its stores visited by high-visibility characters in movies and TV shows retailer's approach to assigning shelf space to brands retailer's geographic location strategy
process of creating an image in the customer's mind, relative to the retailer's competitors
Chief Auto Parts came into existence in 1955 in southern California and eventually grew to include stores in Arizona, Arkansas, California, Nevada, Tennessee, and Texas. In 1979, the chain was purchased by 7-Eleven. In keeping with its own identity as a convenience store chain, 7-Eleven thought of its Chief stores as "convenience auto parts stores" and kept most Chief locations open 7 days a week, 24 hours a day. Similarly, many new Chief stores were opened right next door to 7-Eleven stores. In 1992, the Chief chain was sold to General Electric. Then, in 1992, AutoZone bought the chain from General Electric. As AutoZone integrated Chief into its own operations, it closed any Chief locations that would have cannibalized existing AutoZone stores. The remaining Chief stores - some of which were located in states where AutoZone did not have a presence at the time - were turned into AutoZone stores. For 7-Eleven, the acquisition of Chief Auto Parts in 1979 was part of a(n) [ Select ] ["retail format development", "related diversification", "market penetration", "unrelated diversification", "market expansion"] growth strategy; AutoZone's purchase of the chain in 1992 more closely resembled the textbook definition of a(n) [ Select ] ["unrelated diversification", "retail format development", "related diversification", "market penetration", "market expansion"] growth strategy.
related diversification, market expansion
In 1998, McDonald's (a quick service restaurant, or QSR, chain) purchased Chipotle (a fast casual restaurant chain). In a separate deal, McDonald's purchased another non-QSR chain, Donato's Pizza, a year later. It appears that when McDonald's purchased Chipotle, it was carrying out a(n) [ Select ] ["format development", "related diversification", "market expansion", "market penetration", "market penetration"] growth strategy. The Donato's acquisition was, most likely, part of a(n) [ Select ] ["format development", "penetration", "related diversification", "market expansion", "unrelated diversification"] growth strategy.
related diversification, related diversification
1/5 Q9 A "Walmart Market" is smaller than a Walmart Supercenter or a standard Walmart discount store. It occupies, on average, 38,000 square feet, whereas the average Walmart Supercenter covers 179.000 square feet and the average size of a standard discount store is 105,000 square feet. A Walmart Market offers about 28,000 items, including fresh produce, meat and dairy products, bakery and deli items, household supplies, health and beauty aids, and a pharmacy. At present, there are approximately 200 Walmart Markets compared with approximately 3,000 Supercenters and about 600 standard Walmart discount stores. When Wal-Mart Stores, Inc. originally launched the Walmart Market concept (which it then called "Walmart Neighborhood Market") in 1998, the company's expansion into this new store configuration was part of a __________ growth strategy. market penetration retail format development market expansion diversification focused
retail format development
A(n) __________ is a group of consumers with similar needs and a group of retailers that satisfy those needs using a similar retail format. retail cartel designated market area (DMA) metropolitan statistical area (MSA) retail market segment mass market
retail market segment
The fashion life cycle has 5 stages. During the ____ stage, the fashion spreads from fashion leaders to others and becomes widely accepted as a fashion.
second
1/7 Q15 Consultants at Insula Research are presenting a SWOT analysis to Chick-fil-A's senior executives. The Insula consultants mention that of all QSR (quick-service restaurant) chains, Chick-fil-A has the highest rating for drive-through service accuracy. The chain fills orders correctly 91.6% of the time. Chick-fil-A's closest competitors in order accuracy are Taco Bell (at 90.9% accuracy), Taco John's (at 89.7% accuracy), McDonald's at 88.3% accuracy), and Wendy's (at 86.8% accuracy). From the perspective of top management at Chick-fil-A, the fact that their restaurants are able to deliver the most accurate service in the drive-through sector of the restaurant industry would be classified as a(n) __________.
strength
1/3 20 Calvin Galvin is a regional manager at Urban Outfitters. Calvin believes that fashions are generated within groups of younger, less-affluent consumers—sometimes unintentionally—and then make their way into mainstream consumer classes. The authors of your textbook would say that Calvin subscribes to the __________ fashion theory. trickle-down mass-market populist niche-and-enclave subculture
sub culture
Summer Raines just found out that her cousin, April Showers, is coming to visit for a week. Between now and the time "Cuz" arrives (which is about six hours from now), Summer needs to buy toilet paper, diet soda, bottled water, cookies, ice cream, coffee, an air-freshener refill cartridge, laundry detergent, and all-purpose cleaner. Four retailers are in Summer's consideration set for the quick trip she is about to make: Kroger (about three miles away), Dollar General (about a mile away), IGA (about a half-mile away), and Walmart (about two miles away). Summer believes she can accomplish one-stop shopping at any one of the four stores. In the terminology of the multiattribute model, if Summer were to articulate her beliefs about the stores' performance benefits, Kroger would receive the following scores (on a scale of 1 to 10, with 10 being best). Desirability of brands carried: 9 Ease of parking-lot and front-entrance access: 4 Budge friendliness: 6 Pleasure of the shopping experience: 6 Proximity to home: 4 Summer would give Dollar General the following scores on the same performance benefits. Desirability of brands carried: 4 Ease of parking-lot and front-entrance access: 8 Budget friendliness: 10 Pleasure of the shopping experience: 3 Proximity to home: 7 Summer would give IGA the following scores on the same performance benefits. Desirability of brands carried: 5 Ease of parking-lot and front-entrance access: 6 Budget friendliness: 2 Pleasure of the shopping experience: 5 Proximity to home: 8 Summer would give Walmart the following scores. Desirability of brands carried: 8 Ease of parking-lot and front-entrance access: 5 Budget friendliness: 9 Pleasure of the shopping experience: 3 Proximity to home: 6 Summer places the following importance weights on the five key performance benefits (with 10 representing "very important" and 1 representing "very unimportant"). Desirability of brands carried: 8 Ease of parking-lot and front-entrance access: 5 Budget friendliness: 4 Pleasure of the shopping experience: 7 Proximity to home: 8 If we use the multiattribute model to predict which retailer Summer will choose, which of the following can we conclude?
summer will go to walmart
The _____ system classifies all U.S. neighborhoods into 67 segments based on demographics and socioeconomic characteristics. To get this proprietary analysis of the population surrounding a prospective retail site, a retailer would need to buy it from _____ A retailer might use this information if it wished to take a ___ approach to market segmentation.
tapestry, esri, geodemographic
1/2 1 The authors of your textbook define a retail strategy as a statement that identifies (1) __________, (2) the format the retailer plans to use to satisfy the target market's needs, and (3) the bases on which the retailer plans to build a sustainable competitive advantage. a graphic representation of the retailer's trade area a summary of the company's approach to site selection the retailer's target market a "competitive intelligence" section that analyzes the retailer's three largest intratype competitors the bio(s) of the company's principal owners (if private) or board of directors (if publicly traded)
target market
The authors of your text define conversion rate as __________. the total quantity of items purchased, divided by the total number of shoppers who entered the store (or accessed a website) number of customers who buy from a sales associate, divided by the number of shoppers the total number of customers who leave the store (or exit a website) having made a purchase, divided by the total number of shoppers who enter the store (or access the website) total items purchased, divided by the total number of shoppers who enter a store or website the number of customers who make a purchase in a store or at a website, divided by the number of shoppers who visit the store or website and do not make a purchase
the total number of customers who leave the store (or exit a website) having made a purchase, divided by the total number of shoppers who enter the store (or access the website)
The fashion life cycle has five stages. During the ____ stage, the fashion becomes accepted by most people in the social group and can become overused.
third
Consultants at Insula Research are presenting a SWOT analysis of McDonald's to McDonald's senior executives. The Insula consultants mention that of all QSR (quick-service restaurant) chains, Wendy's has the fastest average service time in the drive-through lane, averaging 133.63 seconds per vehicle. Insula's research study found Wendy's closest competitors in average service time to be Taco Bell (at 158.03 seconds per vehicle), Taco John's (at 181.19 seconds per vehicle), McDonald's (at 189.49 seconds per vehicle), and Burger King (at 198.48 seconds per vehicle). From the perspective of top management at McDonald's, the ability of Wendy's to deliver consistently-speedier drive-through service would be classified as a(n
threat
2/3 Devin Bevin is senior vice president at Nordstrom. Devin believes that after wealthy, well-educated consumers adopt a fashion, the fashion is then slowly adopted by consumers in lower social classes. The authors of your textbook would say that Devin subscribes to the __________ fashion theory.
trickle down
According to the authors of your textbook, people go shopping because of __________ needs. utilitarian latent and manifest latent hedonic utilitarian and hedonic
utilitarian and hedonic
1/7 9 Anna Graham just found out that her mother-in-law, Ima Payne, is coming to visit for a week. Between now and when Ima arrives arrives (which is about six hours from now), Anna needs to buy paper towels, ear plugs, eggs, milk, diet soda, an air-freshener refill cartridge, cereal, dish soap, and the latest issue of National Enquirer. Four retailers are in Anna's consideration set for the quick trip she is about to make: Kroger (about three miles away), Dollar General (about a mile away), CVS (about a half-mile away), and Target (about six miles away). Anna believes she can accomplish one-stop shopping at any one of the four stores. In the terminology of the multiattribute model, if Anna were to articulate her beliefs about the stores' performance benefits, Kroger would receive the following scores (on a scale of 1 to 10, with 10 being best). Desirability of brands carried: 9 Ease of parking-lot and front-entrance access: 3 Budget friendliness: 4 Pleasure of the shopping experience: 6 Proximity to home: 4 Anna would give Dollar General the following scores on the same performance benefits. Desirability of brands carried: 4 Ease of parking-lot and front-entrance access: 8 Budget friendliness: 10 Pleasure of the shopping experience: 3 Proximity to home: 7 Anna would give CVS the following scores on the same performance benefits. Desirability of brands carried: 5 Ease of parking-lot and front-entrance access: 6 Budget friendliness: 2 Pleasure of the shopping experience: 5 Proximity to home: 10 Anna would give Target the following scores. Desirability of brands carried: 8 Ease of parking-lot and front-entrance access: 1 Budget friendliness: 8 Pleasure of the shopping experience: 2 Proximity to home: 2 If we use the multiattribute model to predict which retailer Anna will choose, which of the following can we conclude?
we cant draw a conclusion from info
Kylie Riley moved into her first-ever apartment a couple of weeks ago. This evening, Kylie will be having dinner guests, and she has begun strategizing to prepare the meal. Halfway through the morning (while she is sitting in her Business Analytics class), Kylie mentally goes through the paces of preparing a masterful "almost-from-scratch" meal for herself and the five guests she is expecting. She realizes that her kitchen is not yet fully equipped for the task ahead of her; she needs a mixer. After class, as Kylie walks to her car, she is conflicted about whether she should buy something inexpensive that will "get her through the day" or something of high quality and eye-catching style that will become a treasured addition to her "culinary collection." Five retailers are in her consideration set: Walmart (located in a power center, about a mile and a half out of her way on the drive home), Bed Bath & Beyond (located in a different power center, about four miles out of her way on the drive home), JCPenney (located in a regional mall about ten miles out of her way on the drive home), Macy's (located at the same mall as JCPenney), and Williams-Sonoma (also located at the same mall). In the language of the multiattribute model, if Kylie were to articulate her beliefs about each respective store's performance benefits, Walmart would receive the following scores (on a scale of 1 to 10, with 10 being best). Quality and style of merchandise: 4 Ease of parking-lot and front-entrance access: 4 Budget friendliness: 9 Pleasure of the shopping experience: 3 Convenience of location: 6 Kylie would give Bed Bath & Beyond the following scores on the same performance benefits. Quality and style of merchandise: 6 Ease of parking-lot and front-entrance access: 7 Budget friendliness: 8 Pleasure of the shopping experience: 5 Convenience of location: 5 Kylie would give JCPenney the following scores on the same performance benefits. Quality and style of merchandise: 5 Ease of parking-lot and front-entrance access: 3 Budget friendliness: 5 Pleasure of the shopping experience: 4 Convenience of location: 3 Kylie would give Macy's the following scores. Quality and style of merchandise: 8 Ease of parking-lot and front-entrance access: 3 Budget friendliness: 4 Pleasure of the shopping experience: 8 Convenience of location: 3 Kylie would give Williams-Sonoma the following scores. Quality and style of merchandise: 10 Ease of parking-lot and front-entrance access: 3 Budget friendliness: 2 Pleasure of the shopping experience: 9 Convenience of location: 3 Kylie places the following importance weights on the five key performance benefits (with 10 representing "very important" and 1 representing "very unimportant"). Quality and style of merchandise: 8 Ease of parking-lot and front-entrance access: 5 Budget friendliness: 5 Pleasure of the shopping experience: 7 Convenience of location: 4 If we use the multiattribute model to predict which retailer Kylie will choose, which of the following can we conclude?
williams-sonoma
