Question 1

Which of the following does not comprise a competitive advantage to a retailer?
A) a proposed retail strategy
B) an augmented retail strategy
C) an expected retail strategy
D) a potential retail strategy

Accepted Answer

"Expected retail strategy" does not make sense as a competitive advantage since it implies a strategy that is merely anticipated or predicted, but not yet implemented or proven. The correct options that present competitive advantage are usually associated with a concrete, well-planned approach that sets the retailer apart from competitors (such as a proposed, augmented, or potential strategy).

Question 2

Partial,revolving payments are not permitted in a(n)________.
A) debit account
B) open credit account
C) revolving credit account
D) option credit account

Accepted Answer

B

Question 3

Just-in-time inventory management and electronic data interchange are examples of ________.
A) a value chain
B) channel conflict
C) seamless logistics management
D) direct store delivery

Accepted Answer

Both just-in-time inventory management and electronic data interchange are aspects of the overall value chain, which refers to the series of activities involved in delivering a product or service to customers. Just-in-time inventory management involves carefully managing inventory levels to minimize waste and reduce costs, while electronic data interchange enables seamless communication and information sharing between different parties within the value chain. Together, these tools help improve overall logistics management and streamline the delivery of goods and services to customers.

Question 4

A customer is billed monthly on the basis of his/her outstanding cumulative balance in a(n)________.
A) debit account
B) open credit account
C) revolving credit account
D) option credit account

Accepted Answer

A revolving credit account allows the customer to continuously borrow up to a certain credit limit and make payments on their outstanding balance. The monthly billing is based on the outstanding balance, making it the best choice for this scenario. A debit account requires immediate payment and would not have a cumulative balance, while an open credit account and option credit account do not necessarily have a revolving feature.

Question 5

An ongoing relationship between all the parties that develop,produce,deliver,and sell particular goods and services is referred to as ________.
A) a value delivery system
B) channel cooperation
C) a channel partnership
D) vertical integration

Accepted Answer

A value delivery system is a comprehensive approach to creating and delivering value to customers that involves all parties in the production and distribution process working together in an ongoing relationship. It is a more inclusive concept than channel cooperation or channel partnership, as it encompasses all stakeholders involved in delivering the final product or service to the customer. Vertical integration refers to a type of business model where a company owns and operates multiple stages of the production and distribution process in-house, rather than relying on outside suppliers or intermediaries.

Question 6

Consumers lease physical products for a specified period of time with ________ services.
A) owned-goods
B) rented-goods
C) intangible
D) nongoods

Accepted Answer

Rented-goods services involve consumers leasing physical products for a specified period of time, as opposed to owning them outright.

Question 7

A retailer can reward its best customers through ________.
A) everyday low pricing
B) manufacturer-sponsored coupons
C) customer loyalty programs
D) contests and sweepstakes

Accepted Answer

Customer loyalty programs are designed specifically to reward and incentivize a retailer's best customers. These programs often offer perks such as exclusive discounts, personalized promotions, and special offers based on the customer's purchasing history.

Question 8

A retailer's focus on satisfaction of existing customers through seeking to form and maintain long-term bonds with customers is referred to as ________.
A) commitment-based retailing
B) customer satisfaction
C) relationship retailing
D) SERVQUAL

Accepted Answer

The term that describes a retailer's focus on customer relationships and long-term customer loyalty is relationship retailing. This approach involves building trust, communication, and personalized interactions with customers to keep them coming back. Options A, B, and D do not accurately describe this approach.

Question 9

The minimum value chain elements a given customer segment expects from a type of retailer is a(n)________.
A) proposed retail strategy
B) augmented retail strategy
C) expected retail strategy
D) potential retail strategy

Accepted Answer

The minimum value chain elements expected by a customer segment are the basic and essential services or offerings that they expect the retailer to provide. These are part of the retailer's expected retail strategy. Proposed, augmented, and potential retail strategies, on the other hand, refer to additional services or offerings that a retailer can provide to create differentiation and competitive advantage in the market, but are not necessarily expected by the customer segment.

Question 10

All of the activities and processes that provide a certain value for the customer are referred to as ________.
A) a value chain
B) customer service
C) a value delivery system
D) relationship retailing

Accepted Answer

A value chain is a set of activities and processes that work together to create and add value to the end product or service for the customer. It includes everything from the initial sourcing of raw materials, to their processing, all the way through to the final delivery and support of the product or service.

Question 11

The bundle of benefits offered to consumers through a channel of distribution is ________.
A) a value chain
B) customer service
C) a value delivery system
D) relationship retailing

Accepted Answer

The answer of The bundle of benefits offered to consumers...

Question 12

An important component of the value chain concept is ________.
A) the inevitability of channel conflict
B) dependency of each channel member on one another
C) the need for independence among channel members
D) the need to minimize total channel costs

Accepted Answer

The value chain concept emphasizes the interdependence of each channel member on one another to create and deliver value to the end customer. Therefore, choice B is the correct answer as it highlights this important component of the value chain concept. The other options, including the inevitability of channel conflict (A), the need for independence among channel members (C), and the need to minimize total channel costs (D), are not considered key components of the value chain concept.

Question 13

A clean store environment,adequate parking facilities,and standard return privileges constitute a(n)________.
A) proposed retail strategy
B) augmented retail strategy
C) expected retail strategy
D) potential retail strategy

Accepted Answer

These elements are considered standard expectations that customers have when visiting a retail store, thus forming the expected retail strategy.

Question 14

Which statement concerning a retailer's core customers is not correct?
A) A retailer's core customers are generally least price conscious.
B) A retailer's core customers should represent its target market.
C) A retailer's core customers deserve special treatment.
D) A retailer's core customers prefer long-term relationships.

Accepted Answer

This statement is not necessarily true. While core customers may be less price sensitive than occasional customers, they still may be wary of overpaying and value competitive pricing.

Question 15

Activities that enhance the shopping experience and give retailers a competitive advantage are referred to as a(n)________.
A) customer loyalty program
B) potential customer service
C) expected customer service
D) augmented customer service

Accepted Answer

Augmented customer service refers to activities and features that go above and beyond what is typically expected from a retailer. These can include personalized recommendations, interactive displays, virtual try-on technology, and other enhancements to the shopping experience. By providing these added value services, retailers can set themselves apart from competitors and increase customer satisfaction and loyalty.

Question 16

A vital component of a customer loyalty program is ________.
A) restricted membership
B) new rules of participation
C) standardized letters to participants
D) a database to track consumer purchases

Accepted Answer

A database to track consumer purchases is a vital component of a customer loyalty program as it helps in understanding the consumer behavior and preferences, enabling the program to offer personalized rewards and incentives. Restricted membership, new rules of participation, and standardized letters to participants are important but not as crucial as a database to track consumer purchases.

Question 17

A retailer seeks to maximize the profitability of its inventory assortment through ________.
A) efficient consumer response
B) category management
C) optimal space planning
D) everyday low pricing

Accepted Answer

Category management is the process in which a retailer manages its product categories as individual business units and seeks to optimize the profitability of each category by understanding consumer behavior, market trends, and supplier capabilities. This approach helps retailers to identify and stock the right products in the right quantities, which ultimately maximizes profitability. While efficient consumer response, optimal space planning, and everyday low pricing are important strategies, they may not necessarily lead directly to maximizing profitability of the inventory assortment.

Question 18

A unique strategy that no competing retailer in a given retail format has perfected constitutes a(n)________.
A) proposed retail strategy
B) augmented retail strategy
C) expected retail strategy
D) potential retail strategy

Accepted Answer

The answer of A unique strategy that no competing retailer...

Question 19

The customer base,customer service,customer satisfaction,and loyalty programs and defection rates are components of ________.
A) the American Consumer Satisfaction Index (ACSI)
B) customer satisfaction
C) the marketing concept applied to retailing
D) relationship retailing

Accepted Answer

The components listed are all related to relationship retailing, which emphasizes building long-term customer relationships through personalized attention, customer service, and loyalty programs. The other options do not encompass all the listed components. The American Customer Satisfaction Index (ACSI) is a specific metric for measuring customer satisfaction, while the marketing concept applied to retailing and customer satisfaction are more general concepts that do not necessarily include loyalty programs and defection rates.

Question 20

A customer must pay his/her full bill when it is due in a(n)________.
A) debit account
B) open credit account
C) revolving credit account
D) option credit account

Accepted Answer

An open credit account requires the customer to pay their full bill when it is due, as opposed to a revolving credit account which allows them to carry a balance and make minimum payments over time. A debit account is typically linked to a checking account and automatically deducts funds when purchases are made, while an option credit account allows for flexible payment options but may have higher interest rates.

Quiz 2: Building and Sustaining Relationships in Retailing

Which of the following does not comprise a competitive advantage to a retailer?

Partial,revolving payments are not permitted in a(n) ________.

Just-in-time inventory management and electronic data interchange are examples of ________.

A customer is billed monthly on the basis of his/her outstanding cumulative balance in a(n) ________.

An ongoing relationship between all the parties that develop,produce,deliver,and sell particular goods and services is referred to as ________.

Consumers lease physical products for a specified period of time with ________ services.

A retailer can reward its best customers through ________.

A retailer's focus on satisfaction of existing customers through seeking to form and maintain long-term bonds with customers is referred to as ________.

The minimum value chain elements a given customer segment expects from a type of retailer is a(n) ________.

All of the activities and processes that provide a certain value for the customer are referred to as ________.

The bundle of benefits offered to consumers through a channel of distribution is ________.

An important component of the value chain concept is ________.

A clean store environment,adequate parking facilities,and standard return privileges constitute a(n) ________.

Which statement concerning a retailer's core customers is not correct?

Activities that enhance the shopping experience and give retailers a competitive advantage are referred to as a(n) ________.

A vital component of a customer loyalty program is ________.

A retailer seeks to maximize the profitability of its inventory assortment through ________.

A unique strategy that no competing retailer in a given retail format has perfected constitutes a(n) ________.

The customer base,customer service,customer satisfaction,and loyalty programs and defection rates are components of ________.

A customer must pay his/her full bill when it is due in a(n) ________.