MKTG 4600 TEST 1 (quizes)

Which of the following is a reason for the decline in the availability of retail managers?

The lack of a large talent pool

Which of the following statements is true of retailing in developing economies?

The large size of developing economies is likely to be a motivating factor.

According to the customer pyramid hierarchy, which of the following is true of the iron segment customers of a retailer?

Their spending levels, loyalty, and profitability are not substantial enough for special treatment.

With reference to categorization by ownership, which of the following statements is true of single-store small retailers?

They are more likely to respond quickly to customer needs.

Which of the following is true of corporate chain retailers as compared to single-store retailers?

They can effectively negotiate lower prices for merchandise.

Which of the following does not accurately describe customer relationship management?

Through CRM, retailers try to increase the share of wallet with all customers.

To minimize the negative impact of unprofitable customers, retailers can

charge customers for the services they are abusing like a stocking fee for returned goods.

An outdoor specialty store reinforces its image of selling environmentally friendly sports equipment in its stores by using optimal lighting and manufacturing goods from recycled material while encouraging customers to pick up online orders in stores rather than shipping to their home. This scenario demonstrates

consistent brand image across channels.

Full-line discount stores

stock both private labels and national brands.

The ________ channel is better suited for selling products with important "touch-and-feel" attributes such as the fit of a shirt.

store

The majority of retail sales in the U.S. occur through what channel?

store

What is an advantage of an independent, single-store over other forms of retail ownership?

Ability to react quickly to market changes

________ is a retail channel in which merchandise or services are stored in a machine and dispensed to customers when they deposit cash or use a credit card.

Automated retailing

Which of the following is true of customer characteristics as concluded from the VALS survey?

Consumers who are primarily motivated by self-expression want physical activity, and have a desire to make an impact.

________ is a highly interactive retail channel in which considerable information is conveyed to customers through face-to-face discussions and demonstration.

Direct selling

Which of the following is an advantage of the catalog channel?

Ease of use

Which of the following is a way to achieve customer alchemy?

Increasing the sales made to existing customers through add-on selling

What is a retailer's role in the supply chain?

Linking manufacturers to consumers

________ is a seamless and synchronized customer experience, using all of the retailer's shopping channels.

Omnichannel retailing

Customer lifetime value (CLV) is the

expected contribution from the customer to the retailer's profits over his or her entire relationship with the retailer.

Which of the following requires extended problem solving in a buying decision?

Purchasing a health-care policy for the whole family

Which of the following statements is not true about online retailing?

The Internet is a revolutionary retail format that will eventually replace stores and catalogs.

Which of the following examples best illustrates a utilitarian need?

Zara buys new curtains to replace the worn out ones in her living room.

Helen's, an apparel store, segments its market on the basis of the demographic characteristic of physical size and not on factors like ethnicity. This follows from the ________ criteria used for evaluating whether a retail segment is a viable target market.

actionable

Retailing offers many opportunities for entrepreneurs to flourish. Jeff Bezos is one of many successful entrepreneurs in retail and is the founder of

amazon

John likes to have the latest electronics. He used to go from store to store looking at new cameras, but now just looks at them online from his home. The Internet dramatically reduces the cost of

an information search.

In the CRM process, after constructing a data warehouse, the next step is to

analyze the customer data and identify target markets.

Frequent-shopper programs

are difficult to revise or correct.

The development of more robust data information systems has done all of the following except

been ignored and downplayed as a growth opportunity for retailers.

A retailer that has many people browsing in its store, but few people actually buying products, needs to strive to increase its

conversion rate.

A candy store specializes in selling a wide variety of candy. It even sells brands that are hard to get elsewhere. This is an example of an activity performed by retailers to

create value

The ________ contains transactions, customer contacts, customer preferences, descriptive information, such as demographic and psychographic data, and responses to marketing activities.

data warehouse

A fast-food retailer observes that his sales orders do not show much variety with respect to the store location. Instead, the needs of his customer are age-related. From the given information, it can be concluded that he is most likely to follow ________ market segmentation.

demographic

A department store knows from market research that their average customer comes from a household of $60,000 annual income, 33% of their customers have children at home, 51% of their customers have a college education, and the median age of their customers is 42. This information is based on

demographics.

A hotel's decision to redesign their seating plan to provide optimal space for visiting children is a consequence of the influence of the ________ on customer buying decisions.

family

1-to-1 retailing

improves customer loyalty.

When it comes to service retailing, since customers cannot see, touch, or feel what is being sold, the ________ of the service can sometimes be a concern for customers in trying to decide whether to buy or not.

intangibility

Habitual decision making

involves little or no conscious effort.

A customer that is loyal to a store

is committed to purchasing from the retailer and will seldom shop at the competition.

A retailer performing scrambled merchandising

is likely to experience intertype competition.

Many Americans are choosing to purchase more locally grown and produced food in order to reduce the carbon footprint caused by the transportation of food throughout the world. This is part of the

locavore movement.

A company would enhance its corporate social responsibility image by

lowering its energy consumption

Assortment is the

number of different items offered in a merchandise category.

Variety is the

number of merchandise categories a retailer offers.

Department stores

offer a broad variety and deep assortment of goods.

A conventional supermarket

offers limited services to customers.

Showrooming

results in loss of revenue for the retailer.

The ________ is a set of decisions retailers make to satisfy customer needs and influence their purchase decisions.

retail mix

After developing a thorough understanding of a retailer's competitive environment, a ________ is developed.

retail strategy

The major disadvantage of a mobile channel, compared with a computer-based Internet channel, is

the mobile device's smaller screen.