Chapter 16 Retailing and Omnichannel Marketing

Conventional supermarkets tend to have a larger amount of some items and a smaller amount of others. Which of the following product types is most likely to be the smallest amount in stock?

Beauty aids

Which of the following are advantages that online shopping has over traditional store channels?

Broader selection More information

Effective omnichannel operations need a(n) _, which consists of a centralized customer data warehouse that houses a complete history of each customer's interaction with the retailer.

CRM system

MAC, a brand of makeup produced by Estee Lauder, sells through the company's retail outlets. Therefore, whenever a new MAC product is made it will automatically be brought into Estee Lauder retailing outlets. Which type of channel structure does this setup represent?

Corporate vertical marketing system

Which of the following terms refers to the number of channel members used at each level of marketing channel?

Distribution intensity

Based on the diagram, imagine you work for Nars and are determining your retail partners. You learn that your customers expect to find Nars products at Kohl's, Dillard's, and Macy's. Based on the customers' expectations, what action would you plan on taking with regards to retail partnerships?

Dropping JCPenney and adding Kohl's

True or false: Service retailers, who sell services rather than merchandise, are a small and shrinking retail sector.

False

Which of the following is an advantage of using the Internet channel over the store and catalog channels?

Greater variety

Which of the following strategies for distribution intensity involves getting products into as many different outlets as possible?

Intensive distribution

An off-price retailer is also known as which of the following?

Liquidator Close-out retailer

To stay competitive with other types of food retailers, conventional supermarkets have employed a number of different strategies. Which of the following is not a strategy that conventional supermarkets have adopted?

Offer private-label brands exclusively

_ retailers struggle to provide an integrated shopping experience across all their channels, because unique skills and resources are needed to manage each channel.

Omnichannel

__ is a major benefit to using the Internet channel and refers to the ability to tailor the information for each customer economically.

Personalization

Match the type of personalization with the way in which it is typically implemented within the Internet channel.

Personalized customer sercvic

Brookstone is a retailer known retailer known for opening stores in airports where they have a captive market. This is an example of utilizing which of the following four Ps to one's competitive advantage?

Place

Which of the four Ps of retailing best helps to define the value of both the merchandise and the service?

Price

Which type of store tailors its retail strategy toward very specific market segments by offering deep but narrow assortments and sales associate expertise?

Speciality stores

Estee Lauder is a large and established firm with the resources to provide itself with its own sales force to sell its products. A smaller firm will probably need to rely on wholesalers to help to distribute its products. The wholesalers are also called what?

Supply chain intermediary

In a multichannel system in particular, the retailer needs to provide a consistent _ across all channels.

brand image

A product is made by a manufacturer and then delivered to a given retailer. The route or pathway that the product takes to get from the manufacturer to the retailer is known as _.

channel structure

7-Eleven is an example of a(n) _ store that sells a limited number of items in a small but easy-to-reach location.

convenience

What is the most important benefit a retailer provides to a consumer that a manufacturer has difficult matching?

convenience

While a(n) _ supermarket is likely to carry around 30,000 SKUs at any given time, a(n) _ food retailer will stock around 1,500 SKUs in order to reduce costs and maximize efficiency.

conventional; extreme-value

Macy's, Sears, JCPenney, and Kohl's are all examples of general merchandise retailers known as _ stores that carry a broad variety and deep assortment of products and customer services.

department

If Ford allows only one retailer or dealer in a given territory the ability to sells its particular brand, it is using a(n) _ distribution strategy.

exclusive

Retailers like Dollar General fall into the category of _. By contrast, retailers like Macy's are considered a _ store.

extreme-value; department

One way to facilitate smart retail strategy is to use the _ Ps.

four

Customers do not expect _ products in full-line discount stores.

higher-end

To determine how much integration is best, each retailer must address issues such as:

integrated CRM brand image supply chain pricing

Generally, the _ and more sophisticated a firm is, the _ likely it will be to use supply chain intermediaries.

larger; less

By developing strong relationships with customers, retailers can create _ customers and programs that are critical for successful store promotion.

loyal

Imagine that Apple conducts a seminar with Best Buy employees on new features in Apple's latest iPhone. This would be an example of the _ educating the _ on how to use and consequently sell its new product.

manufacturer; retailer

The four Ps are used in facilitating retail strategy by addressing the needs of the retailer's target _.

market

Getting customers into the stores by using newspaper, magazines, and television is advertising in the _, whereas displays and signs placed at the point of purchase or in aisles is advertising in the _.

media;store

One of the retailers' most fundamental activities in fulfilling the needs of the target market is to provide the ideal blend of _ and _.

merchandise; service

When a firm offers to directly answer a question from a consumer online, this is known as a(n) _, a timely and direct type of personalized customer service.

online chat

When retailers create individualized web pages for each consumer based on the consumer's prior purchase history, the retailers are providing _.

personalized offerings

In omnichannel marketing, customers expect _ consistency for the same SKU across channels.

pricing

The biggest thing a manufacturer will look for when deciding on a(n) _ partner is whether or not their customer matches the manufacturer's target market.

retail

Between the intensive and exclusive distribution strategies lies _ distribution, which uses a few retailers in a territory.

selective

Marcella receives coupons in the mail from the supermarket where she gets most of her groceries. The coupons are personalized based on her buying behavior. The supermarket is trying to encourage Marcella to increase the percentage of her purchases there, which is known as _.

share of wallet

At Macy's consumers encounter I.N.C. dresses and clothes, which are exclusive to Macy's. These consumers have encountered a _ brand.

store

Stores such as Walmart, Fred Meyer, and Super Target are a combination of supermarkets and full-line discount stores. These are known as _.

supercenters

There are two primary reasons firms elect to use online chats over methods such as online FAQs or automated 800 numbers when providing customer service. One reason is that it provides a fast and easily accessible outlet for relevant questions. The other reason is that it addresses specific questions that may not be answered on a traditional FAQ or non-interactive help source. What does this second aspect of online chat refer to?

the personalization of answers to questions

A _ club is a very large retailer that offers a limited and irregular assortment of food and general merchandise with little service at low prices for ultimate consumers and small businesses.

warehouse

If a consumer wants to purchase food in bulk, the ideal type of retailer would be a _ club. By contrast, when a consumer wants to buy just a small snack on the go, the ideal type of retailer would be a _ retailer.

warehouse; convenience

Which of the following are ways in which retailers can increase their share of wallet on given customers?

website promotions in real time targeting promotions direct saleperson contact