RETAILING - College Essay | StudyHippo.com

Q: Assume that Emryl\'s and Muzen are two popular warehouse clubs operating in Minnesota. They are fierce competitors in the apparel industry. To gain more visibility in the market, Emryl\'s decides to design its own store brands, and Muzen decides to open more stores in Minnesota. Which of the following conclusions can be drawn from the information provided in the scenario?

The competition between Emryl\'s and Muzen is an example of intratype competition

question

___ integration occurs when a retailer engages in wholesaling activities by operating its own distribution centers to supply merchandise to its stores

answer

vertical

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___ integration, a type of vertical integration, arises when a retailer operates its own warehouses or designs its own private-label merchandise

answer

backward

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a store exhibiting corporate social responsibility if ___

answer

the stores employees distribute free blankets to the poor in its locality

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vertical integration means that a retail firm ___

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performs more than one set of activities in a supply chain

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___ ___ occurs when a retailer performs some wholesaling and manufacturing activities

answer

backward integration

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___ is motivating firms to enter the BoP (base of the pyramid or bottom of the pyramid) market

answer

maturation of consumer goods and retail markets in developed economies

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t/f retail stores predominately compete against other stores that are located nearby

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t more than 90% of all retail sales are usually made in stores that are less than a 15-minutes drive from the consumer's home. Thus, retail stores predominately compete against other stores located nearby

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Amazon.com was initially started as a ___

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book retailer

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___ are the cofounders of Forever 21

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Do Won and Jin Sook Chang

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___ is the largest retailer in the world

answer

Wal-Mart

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Forever 21 ___

answer

focuses on trendy, exciting clothing options

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the corporate philosophy of IKEA ___

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promotes cost-cutting strategies

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which of the following best describes Howard Schultz?

answer

He had a vision of recreating the Old World magic and romance behind the Italian coffee bar

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The first step in a typical retail management decision process is ___

answer

Understanding the world of retailing

question

Assume that Emryl's and Muzen are two popular warehouse clubs operating in Minnesota. They are fierce competitors in the apparel industry. To gain more visibility in the market, Emryl's decides to design its own store brands, and Muzen decides to open more stores in Minnesota. Which of the following conclusions can be drawn from the information provided in the scenario?

answer

The competition between Emryl's and Muzen is an example of intratype competition

question

When retailers offer merchandise not typically associated with their type of store, such as clothing in a drugstore, the result is __ __

answer

Scrambled merchandising

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Competition between retailers that sell similar merchandise using different types of stores is called ___ ___

answer

Intertype competition

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To develop and implement an effective retail strategy, retailers should ___

answer

Understand why customers shop, how they select a store, and how they select among the stores products

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scrambled merchandising ___

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increases intertype competiiong

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increasing ___ competition makes it harder for retailers to identify and monitor their competition

answer

intertype

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t/f formulating and implementing a retail strategy is independent of a firms macro and microenvironments

answer

f

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Retailing ___

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is a very labor-intensive industry

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t/f elements in a retail mix include the types of merchandise and services offered, merchandise pricing, advertising and promotional programs, store design, merchandise display, assistance to customers provided by salespeople, and convenience of the store's loation

answer

t

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___ are the principles governing individual and companies that establish appropriate behavior and indicate what is right and wrong

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ethics

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___ dictate which activities society has deemed to be clearly wrong, those activities for which retailers and their employees will be punished through the federal or state legal systems

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laws

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which of the following statements is true about the ethical and legal aspects of retailing?

answer

most business decisions are not regulated by laws

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identify the level of restrictions on retail locations, store size, and ownership laid down by governments in different countries

answer

us = minimal restrictions india = extensive restrictions china = modest restrictions

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Who among the following is a retailer?

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A motel provided overnight lodging to customers

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rank the elements of the supply chain in the correct order--staring from the initial stage to the final stage of product delivery

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manufacturer wholesaler retailer consumer

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retailers ___

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link manufacturers to consumers

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why do manufacturers and wholesalers typically ship cases of frozen dinners or cartons of blouses to retailers?

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to reduce their transportation costs

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activities performed by retailers, such as breaking bulk and ___ ___, allow consumers to keep a smaller inventory of products at home because they know local retailers will have the products available when they need more

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holding inventory

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what should a retailer do to improve the brand value of its store in the market?

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provide services that make it easier for customers to buy and use its products

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in retailing value-creating activities undertaken by channel members ___

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increase the cost of products and services sold to customers

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Isaac is the owner of a department store, which is primarily involved in selling products to a particular demographic in Minnesota. which of the following situation indicates that he is engaging in vertical integration?

answer

Isaac manufactures part of his merchandise

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Nate owns 2 retail stores in Orlando that sell outdoor sports equipment to end-users. Which of the following scenarios indicates that Nate is engaging in backward integration?

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He acquires a warehouse to regulate the distribution of merchandise to his stores

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___ occurs when a manufacturer operates its own stores to sell its products.

answer

forward integration

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Which of the following is an example of forward integration?

answer

a home-based bakery sells cupcakes and pastries directly to restaurants and customers

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Rank the following countries on the basis of the average store size (starting from highest to lowest)

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US China India

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How is retailing the US different?

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The retail industry in the US has the greatest retail density and concentration of large retail firms

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A retailer is engaging in vertical integration if ___

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it sells national brands and also designs private-label merchandise

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Sharon is the owner of a gaming console manufacturing unit. Which of the following situation indicates that she is engaging in forward integration?

answer

She sets up a gaming store to sell consoles directly to end-users.

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KartonKings Inc., a food retailer, processes customer feedback data to make an informed decision about product performance. The ability to process huge volumes of customer data is a consequence of the development of ___ on the retail industry

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information systems

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BrainCord LLC is a retailer that designs its own merchandise and then contracts with manufacturers to produce it exclusively for them. It does not perform any direct manufacturing or wholesaling. This is an example of __ integration.

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vertical

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what is retailing?

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it deals with the sale of products meant for personal use

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a retailer performing scrambled merchandising :

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is likely to experience intertype competition

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after developing a thorough understanding of a retailer's competitive environment, a ___ is developed.

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retail strategy

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Brainwave Inc. had promoted an exchange offer in which Brainwave plastic shopping bags could be exchanged for a reusable one. The hope was that this reusable bag would be a short-term benefit for Brainwave as customers would be advertising for the retailer when they carried the bags around. Which stage of corporate social responsibility does this promotional strategy exhibit?

answer

second stage

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which of the following is an example of intratype competition?

answer

CVS and Walgreens

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a company would enhance its corporate social responsibility image by:

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lowering its energy consumption

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

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the lack of a large talent pool

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which of the following terms refers to the competition between the same types of retailers

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intratype competition

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FlyMe Inc. is a sportswear manufacturer that also performs wholesaling to department and speciality retailers as well as retailing to customers directly through the FlyMe website and FlyMe stores. This is an example of ___/

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forward integration

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Live Healthy Inc., a drug store retailer, has added jewelry, accessories, and apparel to its offerings. Which of the following terms best describes this scenario?

answer

scrambled merchandising

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

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retail mix

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

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linking manufacturer to consumers

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

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

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a company engaging in corporate social responsibility (CSR) is ___

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likely to seek LEED certification

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the development of information systems has:

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helped the maintenance of the inventory system of retailers

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Eric is a salesperson who takes a high pressure sales approach when he knows that a product is not suitable for a customers needs. this is most likely to be a violation of the ___

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stores ethical policy

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identify the ___ is an example of the impact of information systems on retailing

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inventory to be ordered

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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 ___

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create value

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the ___ in the north american industry classification system captures differences between north american countries

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sixth

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in merchandising, variety is the number of ___

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merchandise categories a retailer offers

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in merchandising, assortment is the number of ___

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different items offered in a merchandise category

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t/f each merchandise category is called a stock keeping unit

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f

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a conventional ___ is a large, self-service retail food store offering groceries, meat, and produce, as well as some nonfood items, such as health and beauty aids and general merchandise

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supermarket

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while conventional supermarkets carry about 30,000 stock-keeping units, ___ supermarkets or ___ food retailers only stock about 1,500 stock-keeping units

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limited-assortment extreme-value

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the power perimeter of a supermarket ___

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is very profitable to retailers

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the ___ movement focuses on reducing the carbon footprint caused by the transportation of food throughout the world

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locavore

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in the north american industry classification system, ___

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the first two digits identify the firm's business sector

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limited-assortment supermarkets are also known as ___

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extreme-value food retailers

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___ are large stores that combine a supermarket with a full-line discount store

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supercenters

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hyper markets ___

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place greater emphasis on perishables, such as product, than supercenters

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___ are approximately 100,000 to 150,000 square feet large

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warehouse clubs

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unlike supercenters, hypermarkets ___

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carry a larger proportion of food items

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rank the different types of food retailers based on their store size (starting from smallest to largest)

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convenience stores limited-assortment supermarkets warehouse clubs hypermarkets

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which of the following is a characteristic of a warehouse club?

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they have simple interiors and concrete floors

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supermarkets ___

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generally charge lower prices for products than do convenience stores

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department stores ___

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are not as convenient as discount stores

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which of the following products is an example of hard goods?

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eletronics

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retailers that offer a broad variety of merchandise, limited service, and low prices are known as ___ stores

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full-line discount

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typically, traditional full-line discount stores ___

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are less efficient than supercenters

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___ are big-box stores that offer a narrow but deep assortment of merchandise

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category specialists

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___ stores concentrate on a limited number of complementary merchandise categories and provide a high level of service

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speciality

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___ stores are retailers that sell secondhand or used merchandise

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resale

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extreme-value retailers ___

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offer a broad variety of household goods

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___ are specialty stores that concentrate on health and beauty care products

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drugstores

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t/f traditional full-line discount stores have better economies of scale than supercenters

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false

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off-price retailers can buy merchandise at low prices because ___

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they do not ask suppliers for advertising allowances or markdown adjustments

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in retailing ___ are end-of-season merchandise that will not be used in following seasons

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closeouts

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an outlet store is a type of an ___

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off-price retailer

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___ retailers primarily sell services rather than merchandise

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service

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service retailers ___

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create and deliver the service as the customer is consuming it

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independent retail establishments ___

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are not bound by the bureaucracies inherent in large retail organizations

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t/f corporate retail chains are more effective in negotiating lower prices for merchandise and advertising than small retailers

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true

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___ is a contractual agreement in which a company sells the right to use its business trademark, service mark, or trade name, or another commercial symbol of the company, to an individual for a one-tome establishment fee and an ongoing royalty fee, typically expressed as a percentage of gross monthly sales

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franchising

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___ retailers offer an inconsistent assortment of brand-name merchandise at a significant discount off the manufacturer;s suggested retail price

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off-price

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identify the characteristics of department stores based on the three tiers

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first tier = offers exclusive designer merchandise along with excellent customer service second tier = offers modestly priced merchandise with less customer service third tier = caters to more price-conscious consumers

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identify the characteristics of different types of retailers

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conventional supermarket = offers a great variety of brands extreme-value food retailer = offers products at lower prices

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warehouse clubs differ from category specialists in that warehouse clubs ___

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offer a greater variety of merchandise categories

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a ___ voluntary cooperative group is an organization operated by a wholesaler offering a merchandising program to small, independent retailers on a voluntary basis

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wholesale-sponsored

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department stores located near category specialists often reduce their offerings in the category because category specialists ___

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offer a deeper assortment of relatively lower prices to consumers

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hard good are also known as ___ goods

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durable

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identify the accurate statement about extreme-value food retailers from the following

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they strongly appeal to customers who are more willing to try a store brand

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___ brands are items that are developed and marketed by a retailer and available only in its stores

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private-label

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which of the following statements is true about hispanics in the U.S>

answer

they are more likley to prefer stores with bilingual staff and singage

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soft goods are also known as ___ or ___ goods

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nondurable consumable

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which of the following is true of coporate chain retailers as compared to single-store retailers?

answer

they can effectively negotiate lower prices for merchandise

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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 decided whether to buy or not

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intagibility

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best buy is considered to be a category specialist retailer because it ___

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offers a narrow variety but deep assortment of merchandise

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convience stores ___

answer

enable consumers with speedy chekcout

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assortment is the __

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number of different items offered in a merchandise category

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service retailers sometimes find it difficult to match supply and demand because the creation and consumption of the service is simultaneous. This is a consequence of ___

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perishability

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many americans are choosing to purchase more locally grown and produced food in order to reduce their carbon footprint caused by the transportation of food throughout the world. this is part of the ___

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locavore movement

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department stores ___

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offer a broad variety and deep assortment of goods

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service retailers ___

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must try to maintain consistent high-quality services

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___ are retailers that offer a limited and irregular assortment of food and general merchandise with little service at low prices for ultimate consumers and small business

answer

warehouse clubs

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

answer

they are more likley to respond quickly to the customer needs

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with respect to types of merchandise, which of the following is true of a retailer?

answer

similar merchandise retailers have different assortment and variety

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merchandise reatilers ___

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retail products whose quality is not affected by the time and location of sale

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with discount stores also offering grovery in their offerings, what can conventional supermarkets do to differentiate their offerings?

answer

they can produce private label merchandise

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variety is the ___

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number of merchandise categories a retailer offers

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

answer

ability to react quickly to market changes

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full-line discount stores ___

answer

stock both private lables and national brands

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tillers LLC -- a famous retailer -- carries groceries, sporting goods, automobiles, electronics, housewares, healthy and beauty aides, apparel, footwear, jewelry, camping gear, and more. using the provided information, it can be concluded that tillers has ___

answer

broad variety

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a conventional supermarket ___

answer

offers limited services to customers

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the ___ ownership format combines the advantages of owner-manage business with the fficienies of centralized decision making in chain store operations

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franchising

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a retail ___ is the way a retailer sells and delivers merchandise and services to its customers

answer

channel

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catalogs, direct selling, and television home shopping are classified as ___ retail channels

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nonstore

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___ retailing involves using more than one channel to sell and deliver merchandise and services to consumers

answer

multichannel

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omniretailing is term frequently used to describe ___ retailing

answer

multichannel

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who among the following is an omniretailer?

answer

a retailer who sells its products using a vending machine and an electronic channel

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the ___ channel has the highest growth rate

answer

mobile

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a customer is said to be using an electronic retailing channel if he/she ___

answer

buys a product from a retailers website

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___ involves accessing the internet through a traditional computer

answer

electronic retailing

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___ is a form of internet retailing

answer

electronic retailing

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___ involves accessing the internet using a smartphone

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mobile retailing

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which of the following is a nonstore retail channel?

answer

a catalog

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reuben owns a category specialist store. he is using a catalog channel to sell his products if he ___

answer

mails the stores merchandise list to a customer

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___ are programs, typically 30 to 60 minutes long, that mix entertainment with product demonstrations

answer

infomercials

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___ is a nonstore retail channel

answer

television home shopping

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the retail channel in which salespeople interact with customers face to face in a convenient location, either at the customers home or at work is called ___

answer

direct selling

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an ___ retailing machine is also known as a vending machine

answer

automated

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t/f direct selling is a highly interactive retail channel

answer

t

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sharon is using a direct selling retail channel if she ___

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buys a product from a business development manager who is involved in door-to-door selling

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which of the following is a characteristic of direct selling?

answer

it does not requires a sophisticated or expensive infrastructure to be effective

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which of the following occurs when a retailer sells merchandise and services to other distributors, rather than to end- users?

answer

a pyramid scheme

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in a ___ system, salespeople encourage customers to act as hosts and invite friends or coworkers for a social gathering

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party plan

question

in a ___ system, independent business people serve as master distributors, recruiting other people to become distributors in their network

answer

multilevel

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which of the following is an eample of a pyramid scheme in direct selling

answer

a warehouse buys products from a manufacturer and sells them to a specialty store, which in turn sells them to a supermarket

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automated retailing is classifies as a ___ retail channel

answer

nonstore

question

samuel is using an automated retail channel if he ___

answer

buys a product from a vending machine

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a ___ offers the greatest opportunity for customers to use all five senses when examining and evaluating products

answer

store channel

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customer who patronize store retail channels ___

answer

prefer to pay with cash as it does not result in potential interest payments

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a distributors buys merchandise from a manufacturer and sells it to other distributors. in direct selling, this is an examples of ___

answer

the pyramid scheme

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unlinke store channels, all nonstore retail channels ___

answer

are limited in the degree to which they can satisfy the entertainment needs of consumers

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what is the advantage of catalog channels over other retail channels?

answer

catalogs are easier to browse through than websites

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what is an advantage of internet channels over other retail channels?

answer

individual retailers' websites offer a greater number of product alternatives that consumers can consider

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internet channels ___

answer

can offer a greater selection of products to customers

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unlike catalog channels, ___

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the product information provided to consumers through internet channels is unlimited

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a disadvantage of a store channel is that ___

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the market for customers who shop in stores i typically limited to customers living in proximity to those stores

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what is a disadvantage of catalog channels?

answer

the market for catalogs is limited by the high cost of printing and mailing them

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t/f by adding an internet channel in their retail formats, retailers cannot expand their markets without having to build new stores

answer

false

question

what is a characterisitic of a store channel?

answer

it is difficult for most store channels to develop extensive purchase histories of their customers

question

identify the accurate statement about the different types of retail channels

answer

all transactions through the internet have the information needed to send the product to the consumer

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t/f in internet channels, the click-stream data collected by a cookie does not provide insights into what products customers looked at but did not buy

answer

f

question

how does a mobile channel differ from an electronic channel

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a mobile channel has a smaller screen size and slower download speeds

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a characteristic of mobile channels is that ___

answer

apps developed by retailers typically do not provide access to all of the functions available on the retailers' website

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why do store based retailers or catalogers add internet channels in their retail strategy

answer

retailers like to improve their offerings and build a competitive advantage

question

John has been invited to Sarah's wedding, and he decides to buy her a gift at Natasha's, a department store. Sarah is a frequent shopper at Natasha's, and John is more likely to choose something that she will like. Which of the following technologies would enable that

answer

shared customer database

question

Patagonia reinforces its image of selling environmentally friendly sports equipment in its stores by using optimal lighting and manufacturing goods from recycled material. This scenario demonstrates _____.

answer

consisten brand image across channels

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Showrooming:

answer

results in loss of revenue for the retailer

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_____ involves using more than one channel to sell and deliver merchandise and services to consumers.

answer

multichannel retailing

question

Retail distribution centers:

answer

are customized to support store, Internet, and catalog channels.

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A company that follows centralized multichannel retailing:

answer

follows the same profiel across different channels

question

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

answer

ease of use

question

At the cinemas, Diet Cola and Peppy Soda are the two most popular brands of cola sold to customers through vending machines. This is an example of _____.

answer

automated retailing

question

Tina is a frequent shopper at a department store and is well known at her hometown outlet. She has travelled to another city where the store has a branch and happens to visit it. Which of the following technologies would enable the store to identify her and offer her the privileges of a frequent shopper?

answer

the RFID on her card

question

Nancy's Knits has become a popular store with tourists in the area. To expand her market presence, the most attractive strategy would be to _____.

answer

add an internet retailing channel

question

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

answer

the internet is a revolutionary retail format that will eventually replace stores and catalogs

question

When customers conduct product research on a retailer's websites but then purchase the product elsewhere, it is referred to as _____.

answer

chanel migration

question

Which of the following is a benefit of the information generated by placing cookies on a customer's hard drive?

answer

it allows the retailer to provide customized promotions

question

Anna requires a new dress for her graduation ceremony, and she decides to visit Drezzez Inc., the apparel store. Which of the following scenarios describes a possible retail improvement that might exist in an apparel store of the future?

answer

anna will be able to try on her dress of choice on a virtual platform

question

pricing in case of multichannel retailers

answer

is independent of the customer who makes the purchase

question

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

answer

store

question

Which of the following is an advantage of shopping through the store channel?

answer

it allows customer to make cash payment

question

The direct selling channel:

answer

results in the communication of extensive information about the product

question

_____ 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.

answer

automated retailing

question

Which of the following is an advantage of shopping through the Internet channel?

answer

extensive and timely information

question

the __ refers to the steps that consumers go through when purchasing a product or service

answer

buying process

question

identify the true statement about need recognition

answer

the buying process is triggered when consumers realize they have an unsatisfied need

question

when a consumers goes shopping to accomplish a specific task, such as rebbecca buying a watch to keep track of time, she is seeking to satisfy her ___

answer

utilitarian need

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when consumers go shopping for pleasure, they are seeking to satisfy their ___

answer

hedonic needs

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cross shopping is the ___

answer

pattern of patronizing both expensive, status oriented retailers and price oriented retailers

question

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

answer

internal

question

if a customer searches for information about a product using an online search engine, he is using an ___ source of information

answer

external

question

which of the following is a retailers objective for customers during the information search stage of the buying process

answer

to limit the customers information search to its store or website

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t/f if a retailer is included in consumers' consideration set, it decreases the likelihood that consumers will remember the retailer when they are about to go shopping

answer

f

question

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

answer

warranties

question

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

answer

satisfaction

question

customers typically engage in ___ when the purchase decision involves a lot of risk and uncertainty

answer

extended problem solving

question

___ risk arise when customers purchase an expensive product or service

answer

financial

question

cynthia is extra concerned about the toys she buys for her kids. she feels that toy makers use toxic material that have negative effects on the health of small children. in this scenario, cynthia is concerned about the ___ risk associated with the toys.

answer

physical

question

jesse plans on purchasing an apple ipad because he does not want to feel left out of his peer group. in this scenario, jesse is concerned about the ___ risk

answer

social

question

___ problem solving is a purchase decision process involving a moderate amount of effort and time

answer

limited

question

which of the following statements is true about consumer decision making in the buying process?

answer

typically, habitual decision making process occurs when decisions are not very important to customers

question

customers who are brand loyal ___

answer

are reluctant to switch to other brands

question

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

answer

loyalty

question

which of the following statements is true about the buying process

answer

the buying process does not end when a customer purchases a product

question

identify the true statement about reference group

answer

they provide information to consumers directly through conversation

question

t/f culture does not influence consumer buying behavior

answer

f

question

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

answer

market segment

question

in market segmentation, actionable is the criterion which means that the retailer ___

answer

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

question

which of the following is the reason why retailers should ensure that their market segments are identifiable and distinct from one another

answer

distinct marketing strategies become redudant due to overlapping market segments

question

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 scenarioe, "___" is the criterion that is being evaluated about the target market

answer

substantiality

question

___, a criterion for evaluating market segments, means that the retailer can target promotions and other elements of the retail mix to consumers in the segment

answer

reachable

question

identify an example of geographic segmentation

answer

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

question

identify an example of demographic segmentation

answer

a retail chain segments its market based on the earning potential of customers

question

___ segmentation uses both geographic and demographic characteristics to classify consumers

answer

geodemographic

question

___ groups customers based on how they live, how they spend their time and money, what activities they pursue, and their attitiudes and opinions about the world in which they live

answer

pyschographic segmentation

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

answer

identifiable

question

___, a criterion for evaluating market segments, helps determine the size and or the buying power of a market segment

answer

substantial

question

demographic segmentation ___

answer

identifies potential customers more easily than psychographic segmentation

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grouping customers seeking similar benefits is called ___ segmentation

answer

benefit

question

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

answer

composite

question

who among the following is a utilitarian shopper

answer

a mountaineer who purchases a pair of tekking shoes before embarking on a snow trek

question

what is the difference between utilitarian shoppers and hedonic shoppers

answer

utilitarian shoppers are more deliberate than shoppers motivated by hedonic needs

question

identify the characteristic of hedonic needs

answer

shoppers with hedonic needs desire excitement and stimulation

question

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

answer

utilitarian hedonic

question

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

answer

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

question

hedonic shoppers typically ___

answer

spend more time collecting information about products and shopping

question

if the level of competition for a product ___, the amount of information search for the product ___

answer

decreases decreases

question

conversion rate is the ___

answer

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

question

The weather forecast is reporting that the season's first snowfall is predicted to hit tomorrow, and it will also involve ice and sleet. Many homeowners rush out to purchase shovels and deicing rock salt for their driveways. This has stimulated _____ which is a part of the buying process.

answer

need recognition

question

Which of the following examples best illustrates a hedonic need?

answer

Laura buys herself a cardigan as she ranked first in her class.

question

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

answer

conversion rate

question

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

answer

Purchasing a health-care policy cover for the whole family

question

Which of the following examples best illustrates a utilitarian need?

answer

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

question

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.

answer

family

question

Tangent Inc., the department store, knows from market research that their average customers 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 _____ .

answer

demographics

question

John likes to have the latest electronics. He goes from store to store looking at new cameras, but now just checks it online from his home. The Internet dramatically reduces the cost of _____.

answer

information search

question

Extended problem solving in a buying decision:

answer

is likely to prompt the offer of money back guarentees

question

Elena usually shops for her clothing at Macy's but would never buy her cosmetics there. She buys her cosmetics at Walmart. Her pattern of buying would be an example of _____ .

answer

cross shopping

question

GreenMart is a grocery store that is exclusively involved in the sale of organic products. They also encourage their customers to be environmentally aware by requesting them to use reusable bags and ban plastics from their store. The retailer in this instance targets the _____ market segment.

answer

psychographic

question

When Jenna buys groceries, she shops at Whole Foods or Trader Joe's because she knows that these two stores carry organic and unique foods. For Taylor, these two stores make up her _____.

answer

consideration set

question

Habitual decision making:

answer

involves little or no conscious effort

question

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.

answer

actionable

question

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.

answer

demographic

question

Instances where snack shops are located near college campuses and gourmet foods in affluent areas follow from the _____ criteria used for evaluating whether a retail segment is a viable target market.

answer

identifiable

question

Jamie wants to buy an imported car but has refrained from doing so because of the devaluation of her country's money value against the dollar. Which of the following is a reason that seemed to influence Jamie's buying process?

answer

the econom

question

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

answer

Customers primarily motivated by ideals look for products and services that demonstrate success to their peers.

question

Limited problem solving decision process:

answer

is done on the spot after seeing the merchandise.

question

A restaurant's decision to convert its image from an upscale dining option into a one-for-all fast food is a consequence of the influence of _____ on customer buying decisions.

answer

culture

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