MAR3231 Hopkins Exam 2 Study Questions

Provider Gap ___ can be resolved by conducting market research to better understand your customer. a. 2 - service design and standards gap b. 3 - service performance gap c. 1 - listening gap d. 4 - communication gap

1 - listening gap

From the point of students at FSU, college athletes could possibly be classified as a(n) _. a. Membership Group b. Aspirational Group c. Dissociative Group d. All answers are correct

All answers are correct

Walmart can close provider Gap 4 (Communication Gap) by doing which of the following? a. Conducting market research b. Creating policies that are important to their customers c. Avoiding over-promising in advertising d. All answers are correct

Avoiding over-promising in advertising

An individual attempting to enter retailing who desires and requires considerable training and assistance should consider _____. a. product/trademark franchising b. a leased department operation c. business format franchising d. independent retailing

Business format franchising

Because Whole Foods is so expensive, I assume that if I pay $12.00 for ready-to-eat Mac & Cheese it should be amazing. If for some reason the food isn't good, my unhappiness can be explained by Gap ____ in the Gaps Model of Service Quality. a. service performance gap b. service design and standards gap c. communication gap d. listening gap

Communication gap

Which of the following statements describes a marketing implication that results from inseparability of services within retail? a. Customers may become loyal to the employee instead of the retailer b. Mass production is easier c. The employee has little control over the service delivery d. The benefits of a service are hard to describe

Customers may become loyal to the employee instead of the retailer

In the lates 1990s, regional shopping malls were everywhere. People regularly flocked to their local mall to shop, socialize, and enjoy all that the mall had to offer. However, beginning in the early 2000s, regional malls began closing due to a spike in Ecommerce. This point in the early 2000s represents the beginning of the _ stage for regional shopping malls. a. Introduction b. Growth c. Maturity d. Decline

Decline

Which retail shopping behavior is easier to identify because of quantifiable measures? a. Lifestyles b. Needs and Desires c. Demographics d. Shopping Attitudes

Demographics

A retailer with high customer loyalty is able to attract shoppers who come from long distances. This retailer is described as a(n) ----. a. parasite retailer b. destination retailer c. innovator d. scrambled merchandising retailer

Destination retailer

Offering a money back guarantee is an example of how a firm can offset perceived _ risk. a. Financial b. Social c. Physical d. Lifestyle

Financial

Lane is interested in owning a restaurant. However, Lane has never worked in a restaurant, so she doesn't know much about everything that goes into managing a restaurant. Which type of ownership would be most beneficial for Lane? a. leased department b. franchise c. creating a chain restaurant d. independent

Franchise

____ is the discrepancy between the development of customer-driven service standards and actual service performance by company employees. a. Gap 1 - Listening Gap b. Gap 2 - Service Design and Standards Gap c. Gap 3 - Service Performance Gap d. Gap 4 - Communication Gap

Gap 3 - Service Performance Gap

A pizza delivery company promises that your pizza will arrive no later than 30 minutes after you order. However, you placed the order an hour ago and you still have not received your pizza. The Gaps Model of Service Quality states that you are upset because of ____________. a. Gap 4 - The communication gap b. Gap 1 - The listening gap c. Gap 3 - The online ordering gap d. Gap 2 - The service designs and standards gap

Gap 4 - The communication gap

What is a reason that retailers might begin using a scrambled merchandise strategy? a. Avoid confusing the customer with new products not related to the retailer's core product b. To decrease sales per square foot c. Increase cross-selling opportunities d. None of the answers are correct

Increase cross selling opportunities

The beginning of the wheel of retailing (when low-price institutions first appear) corresponds to which retail life cycle stage? a. Decline b. Accelerated Development c. Introduction d. Maturity

Introduction

The manner in which an individual lives and spends his/her time and money is his/her ----. a. reference group behavior b. social class structure c. consumer decision process d. lifestyle

Lifestyle

As an independent retailer in Tallahassee, Loli & the Bean has additional challenges when competing with national chains because ____. a. it is more difficult for Loli & the Bean to manage their store image b. Loli & the Bean lacks the inventory management systems found in retailers like Wal-Mart c. it is more difficult for Loli & the Bean to change promotional strategies to match consumer demand d. The management team at Loli & the Bean can't offer input because of the large corporate organizational chart

Loli & the Bean lacks the inventory management systems found in retailers like Wal-Mart

It is advantageous for Governor's Square Mall to have Mac Cosmetics as a leased department because ___, but Governor's Square should be concerned about ___. a. Mac Cosmetics provides an additional stream of revenue for the mall : the added cost of more employees on the mall's payroll b. Mac Cosmetics provides an additional stream of revenue for the mall : who the mall will need to hire to manage the Mac Cosmetic inventory c. Mac Cosmetics manages their employees : the effect Mac Cosmetics might have on the mall's image d. All of the statements are correct

Mac Cosmetics manages their employees : the effect Mac Cosmetics might have on the mall's image

A disadvantage for independent retailers is a lack of ____. a. Management Succession Options b. Control over strategy c. independence d. competitive advantages

Management Succession Options

Which of the following is an example of a tangible component provided by WalMart? a. Customer service b. Low Prices c. Two day delivery d. Return Policy e. None of the above

None of the above

The element of perceived risk that relates to product safety is _____ risk. a. physical b. performance c. economic d. social

Physical

Offering a reduced salt option of a product is an example of how a firm can offset which of the perceived risks we discussed in class? a. Purchase Risk b. Time Risk c. Lifestyle Risk d. Physical Risk

Physical Risk

A retailer has begun to pre-wrap gift items and to re-deploy checkout personnel to reduce waiting times. The retailer is responding to which demographic and lifestyle factor? a. Poverty of Time b. Gender Roles c. Component Lifestyle d. Consumer Sophistication

Poverty of Time

____ explains the idea that customers will make decisions based on their goal of maximizing self-interest. a. Consumer behavior b. Rational Choice Theory c. Market Research d. Consumer decision making

Rational Choice Theory

Which of the following is not a basic assumption of the wheel of retailing? a. Retailers increase operating costs over time to improve their image b. A large number of price-sensitive shoppers exist c. Related-item merchandising increases sales because of one-stop shopping appeals d. New institutions are able to reduce operating costs

Related-item merchandising increases sales because of one-stop shopping appeals

Goods which are highly visible and which consumers feel they are judged by have high _____ perceived risk. a. physical b. social c. financial d. time

Social

The element of perceived risk that relates to how friends and relatives view the purchase of a good or service is --- risk. a. performance b. psychological c. social d. physical

Social

Income, occupation, and education are important components of ----. a. culture b. reference group affiliation c. a family life cycle d. social class

Social Class

The third floor of Saks Fifth Avenue's flagship store is made up of leased departments. While there are advantages to allowing companies to rent this space, there are also disadvantages. Which of the following might be a disadvantage that Saks should consider when adopting this business model? a. The Saks associates responsible for selling the merchandise will have to learn about new products every time a new company rents space in Saks b. Saks might have to hire more employees to manage all of the new inventory sold by these companies c. The rent received from the companies will be a stream of revenue for Saks d. The companies renting the space might hurt the image of Saks

The companies renting the space might hurt the image of Saks

Department stores are now facing increased competition from clothing retailers who offer fewer services but cheaper prices. This illustrates ____. a. Scrambled Merchandise b. Wheel of Retail c. Destination Retail d. Retail Life Cycle

Wheel of Retail

How a customer spends his/her free time is an example of ___________. a. a customer's lifestyle b. a customer's shopping attitude c. a customer's demographic classification d. a customer's shopping behavior

a customer's lifestyle

Which of the following is part of a retailer's strategy mix? a. pricing strategy b. location c. promotional methods d. all answers are correct

all answers are correct

Based on the Wheel of Retailing, Walmart will move up the wheel in order to do which of the following? a. improve their image b. increase sales c. broaden their target market d. all of the above

all of the above

Chains can receive new items as soon as they are introduced, get proper service and selling support from suppliers, and obtain the best prices. These advantages refer to _____. a. a centralized organization b. bargaining power c. economies of scale d. quantity discounts

bargaining power

When considering the large number of retail stores associated with this type of ownership, the need to develop and monitor a common image is most important for which retail institutions? a. independents and flea markets b. chains and franchises c. chains and independents d. only independents

chains and franchises

The process whereby individuals decide whether, what, when, where, how, and from whom to purchase goods and services is _____. a. marketing research b. commercial search c. outshopping d. consumer behavior

consumer behavior

Because the industry is made up of many ______, experiences with medical service providers are not easily evaluated by customers. a. specific qualities b. search qualities c. credence qualities d. experience qualities

credence qualities

An objective, easily identifiable, and measurable population characteristic is called a(n) _____. a. demographic statistic b. AIO inventory c. lifestyle measure d. reference group measure

demographic statistic

Which service attribute limits expansion possibilities for a service provider? a. inseparability of the service from its provider b. intangibility c. industrialization of services d. perishability

inseparability of the service from its provider

A major disadvantage of independent retailing is the ----. a. high investment requirements b. latitude in selecting customer markets c. inflexibility in developing strategy d. limitation in bargaining power

limitation in bargaining power

Independent retailers are characterized by _____. a. vertical integration b. a franchise form of distribution c. ownership of only one retail unit d. a partnership form of organization

ownership of only one retail unit

"The revenues from an unrented hotel room are forever lost." This statement refers to which characteristic of services? a. intangibility b. variability c. inseparability d. perishability

perishability

Certain restaurants offer happy hour in hopes of getting customers to come to the restaurant early. This promotion helps balance supply and demand in that certain customers will come in earlier and the restaurant can make money on tables that would have otherwise been underutilized. By implementing happy hour, the restaurant is finding a solution for which service characteristic? a. intangibility b. perishability c. variability d. inseparability

perishability

Which service quality attribute deals with lost revenues that cannot be recouped? a. variability b. access c. perishability d. reliability

perishability

Which of the following is an element of perceived risk? a. lifestyle risk b. reference group risk c. purchase risk d. physical risk

physical risk

Aspirational, membership, and dissociative are forms of _____. a. household life cycles b. social classes c. family life cycles d. reference groups

reference groups

A pharmacy (due to increased competition from a neighboring supermarket) has added an exclusive line of cosmetics and expanded its line of greeting cards and gift-wrapping items. This strategy illustrates ____. a. the wheel of retailing b. rationalized retailing c. the retail life cycle d. scrambled merchandising

scrambled merchandising

A retailer tries to appeal to consumers' one-stop shopping needs through _____. a. the retail life cycle b. scrambled merchandising c. vertical marketing systems d. the wheel of retailing

scrambled merchandising

Which form of perceived risk most closely resembles class consciousness? a. social risk b. performance risk c. financial risk d. time risk

social risk

An example of perishability of a service is ----. a. that some services cannot be inventoried or stored b. that the owner-operator is indispensable c. the inseparability of the producer from the service d. the variability of a service's quality

that some services cannot be inventoried or stored

The theory that suggests that established retailers must be cautious in converting from a low-end strategy to a high-end strategy is _____. a. scrambled merchandising b. the wheel of retailing c. the retail life cycle d. rationalized retailing

the wheel of retailing

A lesson that Walmart can take from the Wheel of Retailing is ----. a. to determine if customers are willing to pay for additional services that result in higher prices b. begin offering luxury brands because price sensitive customers will spend more once they experience high end products c. bundle all new services together and offer all of the services at one large price. Even though the price is high, the customers will be happy because of the many benefits they get with one purchase. d. increase prices slowly because price sensitive customers will not notice small increases

to determine if customers are willing to pay for additional services that result in higher prices

Which retail theory predicts that innovators will start with a low-cost structure and low profit margin requirements? a. rationalized retailing b. scrambled merchandising c. wheel of retailing d. retail life cycle

wheel of retailing