Retail Management: Prelim & Midterm Examination

Retailing is the last stage in a channel of distribution—all the businesses and people involved in the physical movement and transfer of ownership of goods and services from producer to consumer. (2 POINTS)

• True

• False

These are some issues over which retailers and their suppliers have different priorities: (2 POINTS)

• control over the distribution channel, profit allocation, the number of competing retailers handling suppliers’ products, product displays, promotion support, payment terms, and operating flexibility.

• retailers carry some competing brands

• None of the above

The overall plan guiding a retail firm. It influences the firm’s business activities and its response to market forces, such as competition and the economy. (2 POINTS)

Among the factors comprising a customer service strategy are store hours, parking, shopper-friendly store layout, credit acceptance, helpful salespeople, amenities such as gift wrapping, clean restrooms, reasonable delivery policies, the time shoppers spend in checkout lines, and customer follow-Satisfaction with customer service. (2 POINTS)

• True

• False

Value is based on perceived benefits received versus the price paid. (2 POINTS)

• True

• False

Represents the minimum value chain elements a given customer segment (e.g., young women) expects from a type of retailer (e.g., a mid-priced apparel retailer). (2 POINTS)

• expected retail strategy

• augmented retail strategy

• potential retail strategy

Comprises value chain elements not yet perfected by a competing firm in the retailer’s category. (2 POINTS)

• expected retail strategy

• augmented retail strategy

• potential retail strategy

Loyal customers are the backbone of a business. (2 POINTS)

• True

• False

Retailers must regularly analyze their customer base in terms of population and lifestyle trends, attitudes toward and reasons for shopping, the level of loyalty, and the mix of new versus loyal customers. (2 POINTS)

• False

• True

• Trolls

It includes the activities that enhance the shopping experience and give retailers a competitive advantage. (2 POINTS)

• Expected customer service

• Augmented customer service

• employee empowerment