Question 1

A retailer seeking to minimize bad debts should utilize what type of credit?
A) revolving credit account
B) commercial credit card
C) option credit account
D) open credit account

Accepted Answer

A commercial credit card provides the retailer with more control over the credit extended. The credit limit and payment terms are set by the card issuer, and the retailer can monitor and restrict employee spending on the card. This helps to minimize bad debts because the retailer has more oversight and can prevent overspending or unauthorized purchases.

Question 2

Which type of credit account does not allow a consumer to make a partial payment?
A) layaway plan
B) revolving credit account
C) open credit account
D) option credit account

Accepted Answer

The answer of Which type of credit account does not...

Question 3

The optimal level of a value-oriented retail strategy is a(n)________.
A) augmented retail strategy
B) potential retail strategy
C) expected retail strategy
D) optimal retail strategy

Accepted Answer

The answer of The optimal level of a value-oriented retail...

Question 4

The purchase of a Toyota Camry hybrid car on the basis of a three-year loan is a goods-based transaction; the lease of a Toyota Camry hybrid car on the basis of a three-year lease is a(n)________.
A) rented-goods service
B) leased-goods service
C) nongoods service
D) owned-goods service

Accepted Answer

The answer of The purchase of a Toyota Camry hybrid...

Question 5

Relationship retailing can be distinguished from other retail strategies in that it stresses ________.
A) long-term relationships with existing customers
B) obtaining a constant stream of new customers
C) short-term relationships with both existing and new customers
D) short-term relationships with highly profitable customers

Accepted Answer

Relationship retailing focuses on building long-term relationships with existing customers, rather than constantly seeking out new ones or focusing solely on short-term relationships with highly profitable customers.

Question 6

An expected retail strategy for a ________ can be an augmented retail strategy for a(n)________.
A) costly specialty store; discount store
B) warehouse club; department store
C) shopping center; shopping district
D) chain store; independent retailer

Accepted Answer

An augmented retail strategy involves offering a higher level of service or unique products to justify a higher price point. Therefore, it would make sense for a costly specialty store to utilize this strategy. However, a discount store's main selling point is its low prices, so an augmented strategy may not be the most effective.

Question 7

Instruction in home repair by home improvement centers is likely to reduce the demand for ________ services.
A) rented-goods
B) leased-goods
C) nongoods
D) owned-goods

Accepted Answer

Home repair instruction by home improvement centers will enable homeowners to perform repairs themselves, thereby reducing the demand for professional repair services or contractors. This means that fewer repairs will be outsourced, resulting in a decrease in the demand for owned-goods such as tools and equipment typically used by professionals.

Question 8

In micromerchandising,retailers seek to match local assortments to the needs of the population that each store serves.Thus,a supermarket located near a college may feature dormitory supplies,while a store located in a family area may feature discounts on frozen foods.Micromerchandising is a form of ________.
A) value-oriented strategy
B) adaptation strategy
C) category management
D) consumerism

Accepted Answer

The answer of In micromerchandising,retailers seek to match local assortments...

Question 9

A restaurant carefully trains its employees to give them discretion to correct a service-related problem.For example,a waiter can give a guest a free appetizer if the wait for a table is more than 15 minutes.This illustrates ________.
A) employee empowerment
B) an expected customer service
C) a potential customer service
D) lip service, not real service

Accepted Answer

Employee empowerment refers to giving employees the autonomy and authority to make decisions that benefit both the customer and the organization. In this case, the restaurant is empowering its employees to make a decision to offer a free appetizer to a guest who has experienced a delay in being seated, which shows that the restaurant trusts its employees to make decisions that improve the customer experience.

Question 10

Low-cost financing available from manufacturers for purchases of capital goods may lower the overall demand for ________ services.
A) owned-goods
B) leased-goods
C) nongoods
D) rented-goods

Accepted Answer

The answer of Low-cost financing available from manufacturers for purchases...

Question 11

The interdependency among all channel members is expressed ________.
A) in a value delivery system
B) in an independent vertical channel system
C) through vertical integration
D) in franchising

Accepted Answer

The concept of a value delivery system emphasizes the interdependence among all channel members, where each member plays a crucial role in creating and delivering value to the end customer. This implies that every channel member's actions can affect the others and impact the overall success of the channel.

Question 12

Airline-based affinity credit cards that give consumers one airline mile for each $1 charged are an example of a ________.
A) retailer-generated credit card
B) customer loyalty program
C) debit card
D) smart card

Accepted Answer

Airline-based affinity credit cards that give consumers one airline mile for each $1 charged are an example of a customer loyalty program. These programs are designed to incentivize customers to continue using the airline's services, earn rewards, and ultimately build customer loyalty.

Question 13

Which service most closely resembles goods-based retailing?
A) rented-goods services
B) leased-goods services
C) nongoods services
D) owned-goods services

Accepted Answer

Rented-goods services most closely resemble goods-based retailing because they involve tangible products that are temporarily transferred to the customer, similar to how goods are sold in retailing, but with the key difference being the temporary ownership.

Question 14

To properly study customer defection rates,a retailer needs ________.
A) an experimental design
B) a competitive intelligence reporting system
C) a marketing information system
D) a customer database

Accepted Answer

To properly study customer defection rates, a retailer needs a customer database that stores information about the customers, such as purchase history, demographics, and transactional data. This information can reveal patterns and trends in customer behavior, which can help retailers identify why customers are leaving and take steps to retain them. An experimental design may be useful for testing retention strategies, but it is not necessary for studying defection rates. A competitive intelligence reporting system may provide information about competitors' customer retention strategies, but it is not essential for analyzing a retailer's own customer defection rates. A marketing information system may provide general market data, but it may not capture specific customer behavior needed to analyze defection rates.

Question 15

A customer loyalty program is part of ________.
A) relationship retailing
B) customer satisfaction
C) transactional retailing
D) revolving credit

Accepted Answer

A customer loyalty program is a key aspect of relationship retailing. It focuses on building a strong bond with customers, increasing their likelihood to return and make repeat purchases. This is in contrast to transactional retailing, which focuses on one-time sales transactions, and revolving credit, which is a financial service. Customer satisfaction is important for all businesses, but it is not specifically related to loyalty programs.

Question 16

An advantage to a retailer's use of its individual retailer credit card over a bank-sponsored card is ________.
A) greater flexibility in extending credit
B) lower capital requirements
C) lower interest costs
D) lower bad debt costs

Accepted Answer

Retailers can extend credit more easily through their own credit card as they have more control over the credit approval process and can tailor it to their specific customer base. This can result in higher approval rates and more customer loyalty. Bank-sponsored cards may have stricter credit requirements and may not be as flexible in terms of credit extension.

Question 17

A retailer develops a merchandise plan on the basis of classifying goods into substitutes or complements.This illustrates ________.
A) self-scanning
B) nongoods services
C) just-in-time inventory management
D) category management

Accepted Answer

Category management involves classifying goods into categories and developing a merchandise plan based on this classification. This includes identifying substitute and complementary products, among other factors. Self-scanning, non-goods services, and just-in-time inventory management are not related to this process.

Question 18

A regional airline found that its best 10 percent of customers accounted for 35 percent of its total revenues.These customers comprise the hotel's ________.
A) expected customers
B) niche customers
C) loyal customers
D) core customers

Accepted Answer

The term "core customers" refers to a group of customers who are loyal to the brand and frequently make purchases, contributing significantly to the total revenue. Therefore, the best choice is D. The other options may not accurately describe this specific group of customers.

Question 19

Which statement concerning complaints is correct?
A) Most consumers complain when dissatisfied.
B) Complaining is relatively easy.
C) Marketers should make it more difficult for consumers to complain.
D) Most people feel complaining produces little or no positive results.

Accepted Answer

Studies have shown that most people feel complaining produces little or no positive results, which is why many choose not to complain even when dissatisfied. A, B, and C are not accurate statements about complaints.

Question 20

Which service is the least tangible?
A) rented-goods services
B) leased-goods services
C) nongoods services
D) owned-goods services

Accepted Answer

Nongoods services are the least tangible because they do not involve the transfer of physical goods, only intangible benefits or experiences. Examples include services provided by restaurants, hotels, and healthcare facilities. Rented-goods, leased-goods, and owned-goods services all involve the transfer of physical goods and are therefore more tangible than nongoods services.

Quiz 2: Building and Sustaining Relationships in Retailing

A retailer seeking to minimize bad debts should utilize what type of credit?

Which type of credit account does not allow a consumer to make a partial payment?

The optimal level of a value-oriented retail strategy is a(n) ________.

The purchase of a Toyota Camry hybrid car on the basis of a three-year loan is a goods-based transaction; the lease of a Toyota Camry hybrid car on the basis of a three-year lease is a(n) ________.

Relationship retailing can be distinguished from other retail strategies in that it stresses ________.

An expected retail strategy for a can be an augmented retail strategy for a(n) .

Instruction in home repair by home improvement centers is likely to reduce the demand for ________ services.

A restaurant carefully trains its employees to give them discretion to correct a service-related problem.For example,a waiter can give a guest a free appetizer if the wait for a table is more than 15 minutes.This illustrates ________.

Low-cost financing available from manufacturers for purchases of capital goods may lower the overall demand for ________ services.

The interdependency among all channel members is expressed ________.

Airline-based affinity credit cards that give consumers one airline mile for each $1 charged are an example of a ________.

Which service most closely resembles goods-based retailing?

To properly study customer defection rates,a retailer needs ________.

A customer loyalty program is part of ________.

An advantage to a retailer's use of its individual retailer credit card over a bank-sponsored card is ________.

A retailer develops a merchandise plan on the basis of classifying goods into substitutes or complements.This illustrates ________.

A regional airline found that its best 10 percent of customers accounted for 35 percent of its total revenues.These customers comprise the hotel's ________.

Which statement concerning complaints is correct?

Which service is the least tangible?