Question 1

One of the greatest constraints faced by store-based retailers--and one that the Internet channel can address--is:

Accepted Answer

Store-based retailers are limited by the physical space of their store, which limits the amount of merchandise they can stock. The Internet channel allows retailers to offer a wider range of products without the limitations of physical space. While price competitiveness and competition from other retailers may also be constraints for store-based retailers, they can also be overcome through effective marketing and pricing strategies. Zoning restrictions may also be a factor, but they are not as widespread as the physical space limitations. Therefore, B is the best choice.

Question 2

Andy purchased a number of books from Amazon.com,and he learned to trust the recommendations made to him.More than once he was pleasantly surprised at the books and authors he discovered this way.In this case,Amazon.com was creating value for Andy through:

Accepted Answer

Amazon.com was creating value for Andy through personalized offerings, as it recommended books and authors that matched his interests and preferences. This personalized approach helped Andy discover new books and authors that he might have otherwise overlooked, leading to a positive experience and potentially increasing his loyalty and repeat business.

Question 3

Johan owns an oil-change business called Oil Only.He changes oil in cars--and that is all he does.What kind of retail business is this?

Accepted Answer

Johan's business only provides a service of changing oil in cars which makes it a service retailer.

Question 4

Retailers focusing on increasing sales to their best customers are attempting to:

Accepted Answer

Increasing the share of wallet refers to increasing the percentage of a customer's total purchases that are made from a particular retailer. By focusing on increasing sales to their best customers, retailers are aiming to capture a larger portion of these customers' spending. This strategy can be more effective and efficient than attempting to attract new customers, as it is typically more expensive and time-consuming to acquire new customers than to retain and grow sales to existing ones.

Question 5

__________ is the term used to describe the situation when retailers use some combination of stores,catalogs and the Internet to sell merchandise.

Accepted Answer

Multichannel retailing is the term used to describe the situation when retailers use some combination of stores, catalogs, and the Internet to sell merchandise. This allows retailers to reach a broader customer base and provide a seamless shopping experience across multiple platforms.

Question 6

Because many consumers choose stores based on proximity to their workplaces or homes,great locations are:

Accepted Answer

Great locations are a competitive advantage that few rivals can duplicate because they provide convenience to consumers and can attract more foot traffic to the store.

Question 7

When a retailer with physical stores begins selling products on its website,the firm could see a decrease in store sales as website sales increase.This is called:

Accepted Answer

Cannibalization refers to the loss of sales for a product or service due to the introduction of a new, similar product. In this case, the physical stores of the retailer would experience a decrease in sales as customers switch to purchasing products online. This is a common challenge that retailers face when they expand their sales channels to include online sales.

Question 8

Traditionally,retailers treated all their customers:

Accepted Answer

Traditionally, retailers treated all their customers the same way, without considering their individual preferences or characteristics. This approach was based on the assumption that all customers were equally valuable and that providing a consistent experience for everyone was the best way to attract and retain customers.

Question 9

As the old cliché claims,the three most important things in retailing are:

Accepted Answer

While all options have some importance in retailing, location is consistently the most critical factor for brick-and-mortar businesses. Being situated in a busy, accessible spot can draw in customers who are passing by and increase foot traffic. Even with competitive pricing, strong marketing, and convenience, a poorly located store may not succeed.

Question 10

Benefits of the Internet as a channel include the ability to:

Accepted Answer

The benefits of the Internet as a channel include all of the options listed: personalizing offerings and service, offering a greater selection of products, expanding market presence beyond locations of physical stores, and collecting information about how consumers shop for a particular product. Therefore, option E is the best choice.

Question 11

In which of the following categories would a dry cleaning business be placed?

Accepted Answer

A dry cleaning business primarily provides a service rather than selling tangible products. Hence, it should be categorized as a service retailer. Specialty stores typically sell specific types of products, category killers dominate a specific retail category, superstores sell a wide variety of products, and discount stores offer products at low prices.

Question 12

Benton manages a building supply company.He wants to invite twenty of his most valuable building-contractor customers to a golf outing and party.Benton will probably use the firm's __________ to identify these customers.

Accepted Answer

A CRM database (Customer Relationship Management) will track interactions and transactions with customers, making it the most likely tool Benton will use to identify his most valuable building-contractor customers. The database can store information such as purchase history, frequency of orders, and total revenue generated. This information helps Benton determine who his most valuable customers are and invite them to the golf outing and party.

Question 13

Jordan directs her salespeople to increase their "share of wallet." Jordan is directing her salespeople to:

Accepted Answer

"Share of wallet" refers to the portion of customers' total spending that a business captures. By directing her salespeople to increase their "share of wallet," Jordan is instructing them to focus on increasing sales to their best customers, who likely have a higher potential for spending more with the business.

Question 14

While it is relatively easy to offer customers Internet options like a FAQ page and an e-mail address to answer questions,some companies are using an interactive approach to address customers' questions while they are visiting the websites.These firms are using __________ to provide the customer with enhanced customer service.

Accepted Answer

Online chats offer customers an interactive approach to address their questions while they are visiting the website, providing enhanced customer service. Vendor-managed inventory, web videos, EDI, and online games do not necessarily provide this type of customer service.

Question 15

For brick-and-mortar retailers,a key ingredient to place decisions is:

Accepted Answer

The key ingredient for brick-and-mortar retailers in place decisions is convenient locations. This is because the accessibility of the store plays a major role in attracting customers. The location should be easily accessible to the target customers and should be in a prominent location. Other factors such as product placement, promotion, private-label merchandise, or off-price placement can also influence place decisions but convenient locations are the most important.

Question 16

When a company offers consumers the ability to make purchases via a smart phone,this is known as:

Accepted Answer

M-commerce (mobile commerce) refers to the ability of consumers to make purchases using their mobile devices, such as smartphones or tablets. This allows for convenient and easy shopping experiences, as consumers can make purchases from virtually anywhere at any time, simply by using their mobile devices. Therefore, option A is the best choice. The other choices are incorrect because they either do not specifically refer to mobile commerce (options B and E) or are not accurate descriptions of the concept (options C and D).

Question 17

Mira purchased some books online,and since then she often receives recommendations to buy other books when visiting the bookstore website.These recommendations were probably the result of:

Accepted Answer

The recommendations are likely based on a combination of factors including her past purchases, similar purchases by other customers, her browsing patterns, and possibly her interactions with the company regarding returns or complaints.

Question 18

Internet buyers are sometimes surprised to see online retailers using information about their past purchases to customize promotions targeted to them the next time they visit the retailer's website.The retailer is using the information to:

Accepted Answer

The retailer is using the information to increase their share of wallet from their best customers by offering targeted promotions based on their past purchases. This can encourage customers to return to the website and make additional purchases, increasing the retailer's sales and profits. Choices A, B, and D are not relevant to the situation described.

Question 19

Today,most successful retailers concentrate on providing:

Accepted Answer

Providing more value to their best customers not only encourages loyalty but also drives sales and word-of-mouth advertising. Additionally, these customers are more likely to spend more money and make repeat purchases, making them a valuable asset to the retailer.

Question 20

Chandra owns a pet sitting service.He recently paid a web developer to build a special version of his company website for use on smart phones.Customers will now be able to easily place orders for pet sitting on their cell phones.This is an example of:

Accepted Answer

This is an example of m-commerce, which refers to the buying and selling of goods and services through wireless handheld devices such as smartphones and tablets.

Quiz 15: Retailing and Multichannel Marketing