Chapter 4 MKTG 3335 (Retailing) McGraw Hill

Grouping customers seeking similar benefits is called ___ segmentation.

Benefit

__ means that the retailer is able to determine which customers are in the market segment

identifiable

Arrange the stages that consumers go through to select merchandise in the right order.

1. Recognize needs 2. Search for information about merchandise 3. Evaluate merchandise 4. Select Merchandise 5. Purchase merchandise 6. Postpurchase evaluation

Identify an example of psychographic segmentation

A retail chain segments its markets based on the attitudes and opinions of customers

Identify an example of geographic segmentation

A retail chain targets customers living in the warmer parts of a country.

___ means that customers like and consistently buy a specific brand in a product category.

Brand Loyalty

____- is the meaning, beliefs, morals, and values shared by most members of a society.

Culture

___ groups consumers on the basis of easily measured, objective characteristics such as age, gender, income, and education.

Demographic segmentation

If a customer searches for information about a product using an online search engine, he is using a(n) source of information.

External

____ risks arise when customers purchase an expensive product or service.

Financial

____ decision making is a purchase decision process involving little or no conscious effort.

Habitual

___ needs are consumer needs for entertaining, emotional, and recreational experiences.

Hedonic

___ sources are information in a customers's memory, such as names, images, and past experiences with different stores

Internal

Karen, a homemaker, is at a shopping mall. She visits the supermarket where she purchases a cleaning product of a low-priced generic brand and dog food of a high-priced brand. She then visits a sports store to buy arm floats for her son who has enrolled in swimming classes. While making the payment, Karen notices wrist bands displayed at the checkout counter and decides to buy one on the spot. She visits a jewelry store and purchases a pair of diamond earings only because her best friend owns a pair. Which of the following conclusions can be drawn from the scenario?

Karen is a cross-shopper since she purchased products from both low-priced and high-priced brands

___ problems solving is a purchase decision involving a moderate amount of effort and time.

Limited

retailer ___ means that customers like and habitually visit the same retailer to purchase a type of merchandise.

Loyalty

Cynthia is extra concerned about the toys she busy for her kids. She feels that toy makers use toxic materials that have negative effects on the health of small children. In this scenario, Cynthia is concerned about the __ risk associated with the toys.

Physical

Identify the characteristic of hedonic needs

Shoppers with hedonic needs desire excitement and stimulation

___ risks arise when customers believe a product will affect how others view them.

Social

Identify the true statement about the amount of information search undertaken by consumers

The amount of information search increases when the competition for a product is greater.

Which of the following is a characteristic of the multiattribute model?

This model is based on the notion that customers see a retailer, a product, or a channel as a collection of characteristics.

Which of the following is a retailer's objective for customers during the information search stage of the buying process?

To limit the customer's information search to its store or website.

In the buying process, a consideration set is.....

a collection of alternatives a customer evaluates when making a choice of a retailer to patronize

Store __ are customers who like a store so much that the actively share their positive experiences with friends and family.

advocates

The ___ refers to the steps that consumers go through when purchasing a product of service.

buying process

___ segmentation uses multiple variables to identify customers in the target segment according to their benefits sought, lifestyles and demographics.

composite

What is the characteristic of benefit segmentation?

customers in benefit segments aren't easily identified.

If the level of competition for a product ____, the amount of information search for the product___.

decreases; decreases

The __ strategy helps assure customers that they won't find a lower price for these products at a different store the next time they go shopping.

everyday low pricing

A ___ means that workers are able to live relatively comfortably within the context of their local areas.

fair wage

A retail ___ is a group of customers who are attracted to the same retail mix because they have similar needs

market segment

Conversion rate is the ___

percentage of customers who enter a store of access a website and then buy a product from that same store or website

The multiattribute attitude model ___

predicts customers' evaluation of alternatives and their choices

Lifestyle segmentation is also know as ___

psychographic

A __ group includes one or more people whom a person uses as a basis of comparison for beliefs, feelings, and behaviors.

reference

___ is a postconsumption evaluation of how well a store or product meets or exceeds customer expectations.

satisfaction

In market segmentation, actionable is the criterion which means that the retailer ____

should know what to do to satisfy the needs for the consumers in a segment.

The market for pet pharmaceuticals is probably not large enough in one local area to serve as a target market segment, but a national market could be served through the internet channel. In this scenario, " ___" is the criterion that is being evaluated about the target market.

substantiality

A(n) ___ need arises when customers' desired level of satisfaction differs from their present level of satisfaction.

unsatisfied

From a consumer's perspective, ___ needs are associated with work.

utilitarian

Customers motivated by ___ needs typically shop in a more deliberate and efficient manner, while customers motivated by ___ needs desire excitement, stimulation, status and power, recreation, and adventure.

utilitarian; hedonic

___ reduce a customer's negative feeling of risk, both before and after the purchase

warranties