RCSC 400 Exam 1 Questions

What percentage of U.S. personal consumption expenditures on goods and services are "Made in China"?

2.7%

What is one of the main arguments about the threat Amazon poses for bricks-and-mortar stores that was discussed in the video "the Amazon Effect"?

Amazon is close to offering same-day deliveries

An example for a competitive strategy is_________

Ask for a price premium for a unique offering

A main challenge for multi-channel retailers is___________

Creating an integrated shopping experience

Retail websites typically offer _______ when the retail store channel.

Deeper Assortments

A retailer that carries a broad variety and deep assortment, offers customer services, and is organized into separate departments for displaying merchandise is called a

Department Store

The Men's Warhorse stocks over 350 different styles and colors of ties. This assortment of ties can be referred to as the store's

Depth of Merchandise

Examples of ways to develop sustainable competitive advantage:

Develop and excellent relationship with a jewelry vendor Customer database to manage their customer service Secure a good location Develop a frequent buyer plan

How could a fitness center develop a sustainable competitive advantage over a national chain like Gold's Gym?

Develop relationships with members offering unique work-out programs with assigned instructors recommending specific routine to suit their needs

Even though miller loves bacon, he is worried about his cholesterol. He is also concerned how eating bacon will effect it. Before deciding to buy lower-fat Oscar-Meyer Bacon; he read the label information on all the various brands of bacon in the meat counter. Miller engaged in:

Extended problem solving

Purchasing from factories that pay workers a living wage more than minimum wage) and offer other benefits to the employees is called

Fair Trade

What format of ownership combines the advantages of owner-managed businesses with the efficiency of centralized decision making in chain store operations?

Franchise

Melissa's son started school and brought home a supply list. Among the required supplies were green ink pens. Melissaa thought that finding boxes which carry only green pens would be difficult until her neighbor informer her that Office Max carried packs of twelve. In turn, Melissa shared this information with yet another mom down the block who faced the same dilemma. Which of the following approaches should office max use in defining its market segment?

Geographic

Which of the following is an opportunity for retailers to develop a sustainable competitive advantage

Good Customer Service

When a customer has brand loyalty for a specific brand of hot dog, each purchase decision to buy that brand would be an example:

Habitual Decision Making

What kind of need may be satisfied by shopping and purchasing designer label merchandise?

Hedonic

A massage parlor that requires its therapists to keep a database on each customer and include in that database what was done on each visit as far as customer aches and pains and peculiar characteristics of the customer, is trying to cope with which service characteristic?

Inconsistency

CVS, Walgreens, and Rite Aid are __________ competitors

Intratype

The competition between the same types of retailers is called:

Intratype

Why should a retailer be concerned with building a sustainable competitive advantage?

It could result in long term profitability

What is retailing?

It is the set of business activities that adds value to the products and services sold to consumers for their personal use.

If a retailer plans to use the online channel synergistically with other channels it can expect:

Its multichannel customers to make more purchases

Harley Davidson stores sell merchandise which interest people who love motorcycles and the idea of the open road and freedom. Some are bikers and others are those who do not have a Harley Davidson motorcycle, but buy the HD logo apparel and accessories anyway. Harley Davidson would focus on which of the following segmentations?

Lifestyle

Veronica walked into CVS with a headache and she knew she needed quick pain relief. IN the past she used Advil. Although there are several other brands containing ibuprofen, she decides to purchase Advil because it worked former in the past. What kind of decision-making process did she most likely use when shopping her pain relief?

Limited problem solving (prior experience with the product)

Select the growth strategy that best supports this description: "Target stores having over 20 locations in the minneapolis and St. Paul Minnesota, twin cities, area."

Market Penetration

To effectively sell merchandise, which typically involves habitual problem solving by customers what is the most critical element in the retail mix?

Merchandise assortment

Mckenna was shopping for a new electric mixer. Online she she found the perfect one at williams-sonoma.com but when she went to the williams sonoma store, she found the same mixer for 15$ more. The retailers has a problem with:

Price inconsistency across the channels

What is a way that retailers can reduce channel migration?

Promote private label merchandise that can be purchased only from that retailer

To implement a retail strategy, a retailer must develop a _____ that satisfies the needs of its target market better than its competitors.

Retail Mix

When developing the ___________ for his new barber shop, Theo decided to obtain a long-term competitive advantage over other salons by offering longer hours, better prices, a well trained staff and half-price perm day every Wednesday to attract customers.

Retail Strategy

Which of the following would NOT be an effective way for a jewelry store to develop a sustainable competitive advantage

Sell Gold watches at lower prices than anywhere else in town

The percentage of total purchases made by a customer in you store is called

Share of wallet

According to Michael E. Porter, what is "strategy"?

Strategy is the creation of a unique and valuable advantage that will outlast competitors' activities.

Which of the following is the biggest threat to convenience stores

Supermarket chains also offering gasoline

What do Delta, Marriott, and Century 21 have in common?

They are all examples of service retailers

After years of walking his laundry to the corner Laundromat, Marco was glad to move into an apartment with washer/dryer hookups. He had every intention of purchasing a washer and a dryer within a month. Which of the following needs would the purchase satisfy?

Utilitarian

Which of the following statements is NOT correct?

Variety means the number of items a store offers in a category

Select the growth strategy that best supports this description: "Russell Athletic harvesting their own cotton and manufacturing their own fabric for producing their apparel goods."

Vertical Integration

A company that is in the second stage of corporate social responsibility

engages in CSR activities that provide short-term financial benefit

A _______ opportunity involves directing efforts towards existing customers by using its present retailing format.

market penetration

What would be a measure of retailer's success at converting positive evaluations into purchases?

the number of abandoned carts on a Web site.

A main goal to become a multi-channel retailers is

to increase share of wallet

Victoria's Secret, a popular retail chain in women's lingerie and perfume, designs the merchandise they sell, and then contracts with manufacturers to produce it exclusively for them. Victoria's Secret is practicing

vertical integration

By obtaining information about customer preferences, and past purchase behavior, retailers operating an electronic channel are able to:

Tailor merchandise and recommendations

In a franchise contract, the franchisee pays the franchisor a______

lump sum plus a royalty on all sales

______________ arises when a retailer performs some distribution and manufacturing activities, such as operating warehouses or designing private-label merchandise.

Backward Integration

Matt used to shop for electronics at the closest Best Buy store. But now that he has his iPad, he does his electronic shopping online at bestbuy.com. This is an example of:

Cannibalizing

Catherine was interested in purchasing a digital camera so she on Best Buy's website to learn more about the different features and capabilities of the device. Since she was going to Target to buy her groceries anyway, she decided to just buy the digital camera at Target. This is an example of:

Channel Migration

Department stores have placed an emphasis on their own private branded merchandise to _________

differentiate their product offerings

A buying decision made by customers on the spot after seeing the merchandise:

is called impulse buying

Florist, Blake Godrey, ran a small glass shop and sold blown glass pieces to people in Northern Virginia. He believed that he could sell more glass if he had means to use the internet. Thus he borrowed money and invested in creating a web site called glass.com where he sells glass pieces to people all over the world using various delivery services. Godfrey realized a(n) _________ opportunity

related diversification