CHAPTER 17

The term "share of _____________" refers to the percentage of a customer's purchases made from a particular retailer

"share of wallet"

An integrated __________ system consists of a centralized customer data warehouse that houses a complete history of each customer's interaction with the retailer

CRM

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

Distribution intensity

Which of the following firms would be most likely to employ an intensive distribution strategy for their products?

Proctor & Gamble and Pepsi

Customers expect pricing consistency for the same ____________ across channels

SKU

One of the reasons firms employ a selective distribution strategy is because they want to make sure only higher end retailers receive their products in order to maintain their prestigious image. Select ALL of the following firms where selective distribution is the strategy that might be used in order to maintain prestige

Tommy Hilfiger and Calvin Klein

Which of the following firms would NOT be a good candidate for adding an electronic channel as means to expanding its market presence?

bayer chocolates, a local candy company

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 have the smallest amount in stock?

beauty aids

Category specialists, or category killers, are _________ stores that offer a narrow but deep assortment of merchandise, where assistance is typically only found in certain areas of the store

big-box

In a multi channel system particularly, the retailer needs to provide a consistent _____________ across all channels

brand image

Which of the following are sources of information a clothing retailer would use to build relationships with its best customers?

browsing activity on its website, customer shopping habits, and store personnel

Which of these statements best describes the relationship wholesalers have with manufacturers and retailers?

buys from manufacturer then resells to retailers or business users

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

If a manufacturer selling hammers is trying to decide whether or not it should conduct business with Walmart and Home Depot, which step in this framework does this represent?

choosing retail partners

7 Eleven is an example of a _______________ store that sells a limited variety of merchandise in a small but easy to reach locataion

convenience

Some of the actions that _____________ stores are taking to remain competitive include decreasing their dependency on gasoline sales, offering fresh food and healthy fast food, and opening smaller stores closer to where consumers shop and work

convenience

_____________ advertising is when a manufacturer and retailer work together to deliver an advertising message to the target market

cooperative

Advertising that manufacturers and retailers develop together to defray its cost is called ____________ advertising

cooperative advertising (broad term)

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

Subtle elements that make up a store's "look and feel" include music, color, scent, and _____________

crowding

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 product and customer services

department

If a manufacturer is currently working with a retailer in determining how they will implement the four Ps, which factor is the manufacturer most likely examining?

developing retail strategy

Because each of the channels is somewhat ____________, a critical decision facing multichannel retailers is the degree to which they should or are able to integrate the operations of the channels

different

Which of the following retailers is NOT a name for a discount store that offers a narrow but deep assortment of merchandise?

drugstores

Which of the following types of stores has over half of its sales coming from pharmaceuticals?

drugstores

If Ford allows only one retailer or dealer in a given territory the ability to sell its particular brand, it is using a _________________ distribution strategy

exclusive

Which of the following placement strategies involves manufacturers granting sole geographic territories to one or very few retailers so no other retailers in the territory can sell a particular brand?

exclusive distribution

An extreme-______________ retailer refers to a small full line discount store that offers a limited merchandise assortment at very low prices, often as low no more than one dollar per item

extreme-value

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

Full line discount, specialty, department, and off price are all types of retailers that fall under which broad retailing category?

general merchandise

Amazon.com is an internet channel that consumers use to purchase a wide variety of products. Which of the following aspects of Amazon.com represents the BEST advantage it has over the store and channel?

greater personalized information

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, supply chain, brand image, and pricing

An _______________ distribution strategy is when the goal is to get the manufacturer's products into as many different outlets as possible

intensive

One advantage of using the ____________ channel over the ____________ channel is the much higher probability of having a deeper assortment of merchandise available

internet; retail

Category specialists are also called category ____________ because of their ability to offer a complete assortment in a category at somewhat lower prices than competing store types, such as a full line discount store

killers

Aldi is a type of supermarket that voluntarily chooses to only offer one or two brands and sizes (one of which is always a store brand) in order to maximize efficiency and reduce costs. What type of supermarket is this called?

limited assortment supermarket

Retailing that takes place through mobile devices is called _____________

m-commerce

If a manufacturer is trying to determine in what circumstances it may prefer to use a certain channel for selling a product, which factor are they most likely examining?

managing a multichannel approach

The business activities associated with retailing involve both products and services. Which of the following is NOT a venue where retailing occurs?

manufacturer's warehouse

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 products

manufacturer; retailer

A ____________ strategy is when manufacturers and retailers work together to sell products and/or services in more than one channel

multichannel

An off-____________ retailer is one that offers an inconsistent, often unpredictable, assortment of brand name merchandise at low prices

off-price

Personalized ______________ refers to retailers creating individualized web pages for each consumer based on their prior history, which is typically derived from past purchases

offering

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

omnichannel

When a firm offers to directly answer a question from a consumer using its Web page, this is known as ____________ _____________, a timely and direct type of personalized customer service

online chat

_____________ is a major benefit to using the internet channel and refers to the ability to tailor the information for each customer economically

personalization

Providing help in the form of FAQs, 800 numbers, or online chats

personalized customer service

Creates individualized web pages for each consumer based on their prior history, which is typically derived from past purchases

personalized offerings

One strategy that Starbucks uses is strategically opening stores in areas where competing coffeshops would have little chance of staying competitive with Starbucks. What Starbucks is then essentially doing is saturating the market, a strategy that falls under _______________ within the four Ps framework

place

One consideration in retail strategy is trying to figure out what to charge a customer for a given brand within a product category. This consideration refers to _________________, one of the elements of the four Ps framework

price

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

price

_______________ is important for the manufacturer and retailer to consider when determining how to position and value a brand and the products that fall under the brand

price

Service retailers:

primarily sell services rather than merchandise, large part of the retail industry, and examples include health clubs and dry cleaners

One effective retail strategy is to have an exclusive partnership with a popular brand, much like the one Macy's has with Tommy Hilfiger. Another that Macy's employs is to develop private label brans such as Charter Club. Retail strategies like these would best be classified as a strategy involving which of the four Ps?

product

If a manufacturer instructs a retailer on how to use a newly released product, this would be an example of the manufacturer getting involved with which of the following four Ps?

promotion

When a retailer advertises using traditional media such as newspapers, magazines, and television, the retailer is using ____________, one of the four Ps

promotion

Limited assortment supermarkets are able to offer their merchandise at 40% to 60% lower prices than conventional supermarkets by cutting costs in certain ways. Which of the following is NOT a cost-cutting technique typically used by these types of supermarkets?

providing a better overall atmosphere, demonstrations, and fun

Conventional supermarkets are experiencing increasing competitive pressure from other types of food retailers. Which of the following are ways in which conventional supermarkets have responded to this pressure?

providing local produce and improving the in store experience

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

retail

A manufacturer will seek out partnerships with ____________ who will sell the manufacturer's products and/or services to the final consumers

retailers

Which of the following are ways in which retailers help satisfy customers' needs regarding product?

retailers provide a mix of services relating to the products they sell, provide an assortment of products geared toward its target market, and provide products in the quantities their customers wish to buy

Which of the following statements are true about the storage function of retailers?

retailers provide a value to manufacturers and consumers by housing products for sale, consumers generally do not want to purchase more of a product than they need, and some retailers are beginning to push suppliers to hold more of their inventory

________________ refers to a set of a business activities that add value to products and services sold to consumers for their personal or family use

retailing

Which of the following is NOT an actual distribution intensity level considered by

retentive distribution

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

Sephora is a leading perfume and cosmetic store chain that only sells merchandise in this narrow area but has a deep assortment of various cosmetics. What type of retailer?

specialty store

At Macy's, consumers encounter INC dresses and clothes, which are exclusive to Macy's. These consumers have encountered a _____________ brand

store

Channel __________ refers to the way in which a manufacturer gets its products to the retailers channels

structure

Which of the following is a type of food retailer?

supercenter

_________________ is a type of food retailer consisting of a large supermarket in addition to a full line discount store. Its intention is to be a one stop shopping experience for consumers

supercenter

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

Which of the following refers to a food retailer that is very large in size and offers a limited and irregular assortment of food and general merchandise with little service at low prices? People that shop there tend to be consumers who prefer buying food in bulk or even small businesses

warehouse club

If a consumer were to plan on purchasing food in bulk, the ideal type of retailer would be a _______________ club. By contrast, when a consumer plans on purchasing just a small snack on the go, the ideal type of retailer would be a _____________ retailer

warehouse; convenience