Question 1

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 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

_____ 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 selling 
A) Suggestion selling 
B) Co-marketing 
C) Shopper marketing 
D) Benefit selling A

Question 4

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. 
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.

Question 5

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. 
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.

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-tailing 
A) Direct retailing 
B) Telemarketing 
C) Automatic vending 
D) E-tailing

Question 7

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. 
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.

Question 8

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

Accepted Answer

A) True 
 B)False

Question 9

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. 
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.

Question 10

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 11

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 characteristics 
A) religion 
B) educational qualifications 
C) geographic boundaries 
D) psychographic characteristics

Question 12

Briefly explain the process of defining a target market.

Accepted Answer

Answers will vary. The first and foremos

Question 13

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. 
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.

Question 14

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) franchise 
A) independent retail store 
B) warehouse club 
C) chain store 
D) franchise

Question 15

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 16

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

Question 17

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

Accepted Answer

Answers will vary. The best retailers ha

Question 18

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

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

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. 
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.

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

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

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

Strategic retailing goals typically focus on:

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

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

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

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

Which of the following statements is true of service failures?

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

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 _____.

Briefly explain the process of defining a target market.

Service delivery can be improved by:

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) _____.

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.

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

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

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

Unlike supermarkets, convenience stores:

An Overview of Marketing

Strategic Planning for Competitive Advantage

Ethics and Social Responsibility

The Marketing Environment

Developing a Global Vision

Consumer Decision Making

Business Marketing

Segmenting and Targeting Markets

Marketing Research

Product Concepts

Developing and Managing Products

Services and Nonprofit Organization Marketing

Supply Chain Management and Marketing Channels

Marketing Communications

Advertising, Public Relations, and Sales Promotion

Personal Selling and Sales Management

Social Media and Marketing

Pricing Concepts

Filters

Exam 14: Retailing

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

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

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

Strategic retailing goals typically focus on:

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

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

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

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

Which of the following statements is true of service failures?

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

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 _____.

Briefly explain the process of defining a target market.

Service delivery can be improved by:

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) _____.

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.

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

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

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

Unlike supermarkets, convenience stores:

An Overview of Marketing

Strategic Planning for Competitive Advantage

Ethics and Social Responsibility

The Marketing Environment

Developing a Global Vision

Consumer Decision Making

Business Marketing

Segmenting and Targeting Markets

Marketing Research

Product Concepts

Developing and Managing Products

Services and Nonprofit Organization Marketing

Supply Chain Management and Marketing Channels

Marketing Communications

Advertising, Public Relations, and Sales Promotion

Personal Selling and Sales Management

Social Media and Marketing

Pricing Concepts

Filters