Question 1

Which of the following statements is true of service failures?

Accepted Answer

A)  They can be eliminated by successful market segmentation.
B)  Retailers cannot recover from service failures.
C)  They can be solved by canceling return policies.
D)  If handled effectively, they can result in higher customer loyalty.E) A) and B)
F) None of the above

Question 2

Since retail prices are usually based on the cost of the merchandise, an essential part of pricing is efficient and timely buying.

Accepted Answer

A) True 
 B)False  True

Question 3

Lily's Apparel, a renowned apparel store, focuses on Gen Y customers and provides them with a customized clothing experience. Lily's Apparel has defined its target market by _____.

Accepted Answer

A)  religion
B)  educational qualifications
C)  geographic boundaries
D)  psychographic characteristicsE) B) and C)
F) C) and D)

Question 4

What is brand cannibalization? Why is it dangerous to the retailer?

Accepted Answer

Answers will vary. Brand cannibalization refers to the reduction of sales for one brand as the result of the introduction of a new product or promotion of a current product by another brand. Brand cannibalization is dangerous to the retailer for two reasons. First, the retailer incurs significant expense in executing the promotion itself. Second, the promotion creates inaccurate sales forecasts for both the promoted and cannibalized products, leading to stockouts of the promoted brand and financial losses from discounting surplus inventory of the cannibalized brand. The latter types of losses can sometimes be significantly greater than the cost of the promotion itself. Therefore, retail managers should design their promotional activities carefully, with gaining new customers being the primary objective.

Question 5

Briefly explain the process of defining a target market.

Accepted Answer

Answers will vary. The first and foremos...

Question 6

_____ is a form of nonstore retailing that entails the use of machines to offer goods for sale.

Accepted Answer

A)  Direct retailing
B)  Telemarketing
C)  Automatic vending
D)  E-tailingE) B) and C)
F) A) and C)

Question 7

_____ is a selling technique that seeks to broaden customers' original purchases with related items.

Accepted Answer

A)  Suggestion selling
B)  Co-marketing
C)  Shopper marketing
D)  Benefit sellingE) C) and D)
F) B) and D) A

Question 8

Strategic retailing goals typically focus on:

Accepted Answer

A)  reducing costs of goods sold.
B)  increasing costs of goods sold.
C)  reducing return on assets or equity.
D)  not using a retailing mix.E) None of the above
F) A) and C)

Question 9

Determining a target market is optional while creating the retailing mix.

Accepted Answer

A) True 
 B)False

Question 10

Which of the following is a difference between off-price retailers and specialty shops?

Accepted Answer

A)  Off-price retailers keep a greater amount of floor stock, whereas specialty shops keep a lower amount of floor stock.
B)  Off-price retailers charge higher prices for customers, whereas specialty shops charge lower prices for customers.
C)  Off-price retailers focus on lean inventory management, whereas specialty shops have an agile approach to inventory.
D)  Off-price retailers focus on providing high quality customer service, whereas specialty shops de-emphasize customer service.E) B) and C)
F) None of the above

Question 11

Briefly explain the actions a retailer should take to address retail product/service failures.

Accepted Answer

Answers will vary. The best retailers ha...

Question 12

Unlike supermarkets, convenience stores:

Accepted Answer

A)  charge lower prices.
B)  carry a much more limited line of high-turnover convenience goods.
C)  enable customers to shop without visiting a physical store location.
D)  offer no service to customers.E) A) and D)
F) B) and D)

Question 13

Will, a salesperson at a superstore, mistakenly provides wrong information to a customer about the location of a specific brand of dishwashing liquid. The customer, as a result, wastes time searching for the product. This is an example of brand cannibalization.

Accepted Answer

A) True 
 B)False

Question 14

Establishing channel-wide network coherence is a key factor in maintaining service quality.

Accepted Answer

A) True 
 B)False

Question 15

Henry runs Moonlight Café, a world renowned fast-food restaurant, in his locality. He started the restaurant after getting a license from Moonlight Café and by regularly paying it a fee for the right to use its brand name, products, and methods of operation. Henry most likely operates a(n)  _____.

Accepted Answer

A)  independent retail store
B)  warehouse club
C)  chain store
D)  franchiseE) A) and D)
F) None of the above

Question 16

Service delivery can be improved by:

Accepted Answer

A)  implementing a no-return policy after sale.
B)  maximizing wait times for customers.
C)  increasing the costs of services provided.
D)  choosing the right distribution channel.E) A) and D)
F) A) and C)

Question 17

Asif, a member of a local baseball team, broke his bat during a practice match. With the final match scheduled for the next day, Asif urgently required a new bat. Therefore, he placed an order on Duke.com, an online portal for sports goods, and he dropped in at its nearest physical store to pick up his order. This is an example of the use of _____.

Accepted Answer

A)  microtargeting
B)  click-and-collect
C)  telemarketing
D)  e-tailingE) A) and D)
F) A) and C)

Question 18

Suggestion selling by sales or service associates should always help shoppers recognize true needs rather than sell them unwanted merchandise.

Accepted Answer

A) True 
 B)False

Question 19

Target markets in retailing are often defined by demographics, geographic boundaries, and psychographics.

Accepted Answer

A) True 
 B)False

Question 20

Which of the following statements is true of big data analytics?

Accepted Answer

A)  It analyzes customers' needs based on their proximity to a retail store.
B)  It focuses on understanding the behavior of a brand's target customers.
C)  It enables retailers and suppliers alike to gain better customer insights.
D)  It allows customers to evaluate the service quality offered by retailers.E) A) and D)
F) None of the above

Exam 14: Retailing

Which of the following statements is true of service failures?

Correct Answer
verified

Since retail prices are usually based on the cost of the merchandise, an essential part of pricing is efficient and timely buying.

Correct Answer
verified
True

Lily's Apparel, a renowned apparel store, focuses on Gen Y customers and provides them with a customized clothing experience. Lily's Apparel has defined its target market by _____.

Correct Answer
verified

What is brand cannibalization? Why is it dangerous to the retailer?

Briefly explain the process of defining a target market.

Correct Answer
verified
Answers will vary. The first and foremos...
View Answer

_____ is a form of nonstore retailing that entails the use of machines to offer goods for sale.

Correct Answer
verified

_____ is a selling technique that seeks to broaden customers' original purchases with related items.

Correct Answer
verified
A

Strategic retailing goals typically focus on:

Correct Answer
verified

Determining a target market is optional while creating the retailing mix.

Correct Answer
verified

Which of the following is a difference between off-price retailers and specialty shops?

Correct Answer
verified

Briefly explain the actions a retailer should take to address retail product/service failures.

Correct Answer
verified
Answers will vary. The best retailers ha...
View Answer

Unlike supermarkets, convenience stores:

Correct Answer
verified

Will, a salesperson at a superstore, mistakenly provides wrong information to a customer about the location of a specific brand of dishwashing liquid. The customer, as a result, wastes time searching for the product. This is an example of brand cannibalization.

Correct Answer
verified

Establishing channel-wide network coherence is a key factor in maintaining service quality.

Correct Answer
verified

Henry runs Moonlight Café, a world renowned fast-food restaurant, in his locality. He started the restaurant after getting a license from Moonlight Café and by regularly paying it a fee for the right to use its brand name, products, and methods of operation. Henry most likely operates a(n) _____.

Correct Answer
verified

Service delivery can be improved by:

Correct Answer
verified

Correct Answer
verified

Suggestion selling by sales or service associates should always help shoppers recognize true needs rather than sell them unwanted merchandise.

Correct Answer
verified

Target markets in retailing are often defined by demographics, geographic boundaries, and psychographics.

Correct Answer
verified

Which of the following statements is true of big data analytics?

Correct Answer
verified

Exam 14: Retailing

Which of the following statements is true of service failures?

Correct AnswerverifiedShow Answer

Since retail prices are usually based on the cost of the merchandise, an essential part of pricing is efficient and timely buying.

Correct AnswerverifiedTrue

Lily's Apparel, a renowned apparel store, focuses on Gen Y customers and provides them with a customized clothing experience. Lily's Apparel has defined its target market by _____.

Correct AnswerverifiedShow Answer

What is brand cannibalization? Why is it dangerous to the retailer?

Briefly explain the process of defining a target market.

Correct AnswerverifiedAnswers will vary. The first and foremos...View AnswerShow Answer

_____ is a form of nonstore retailing that entails the use of machines to offer goods for sale.

Correct AnswerverifiedShow Answer

_____ is a selling technique that seeks to broaden customers' original purchases with related items.

Correct AnswerverifiedA

Strategic retailing goals typically focus on:

Correct AnswerverifiedShow Answer

Determining a target market is optional while creating the retailing mix.

Correct AnswerverifiedShow Answer

Which of the following is a difference between off-price retailers and specialty shops?

Correct AnswerverifiedShow Answer

Briefly explain the actions a retailer should take to address retail product/service failures.

Correct AnswerverifiedAnswers will vary. The best retailers ha...View AnswerShow Answer

Unlike supermarkets, convenience stores:

Correct AnswerverifiedShow Answer

Will, a salesperson at a superstore, mistakenly provides wrong information to a customer about the location of a specific brand of dishwashing liquid. The customer, as a result, wastes time searching for the product. This is an example of brand cannibalization.

Correct AnswerverifiedShow Answer

Establishing channel-wide network coherence is a key factor in maintaining service quality.

Correct AnswerverifiedShow Answer

Henry runs Moonlight Café, a world renowned fast-food restaurant, in his locality. He started the restaurant after getting a license from Moonlight Café and by regularly paying it a fee for the right to use its brand name, products, and methods of operation. Henry most likely operates a(n) _____.

Correct AnswerverifiedShow Answer

Service delivery can be improved by:

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Suggestion selling by sales or service associates should always help shoppers recognize true needs rather than sell them unwanted merchandise.

Correct AnswerverifiedShow Answer

Target markets in retailing are often defined by demographics, geographic boundaries, and psychographics.

Correct AnswerverifiedShow Answer

Which of the following statements is true of big data analytics?

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
verified
True

Correct Answer
verified

Correct Answer
verified
Answers will vary. The first and foremos...
View Answer

Correct Answer
verified

Correct Answer
verified
A

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
Answers will vary. The best retailers ha...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified