MKTG205Chp4 - Covers chapter 4 lecture notes on retailing marketing 204 PDF

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Covers chapter 4 lecture notes on retailing marketing 204...

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1. A SWOT analysis is often conducted during which stage of the strategic retail planning process? A. Definition of business mission B. Situational audit C. Evaluating strategic alternatives D. Establishing objectives E. Retail segmentation process 2. Fastlane (Sports shoe company) has decided to expand and is experimenting with various growth strategies. It first decided to purchase some Burger King (fast food franchises) and Mobay (Jamaican restaurant) stores. This move was considered a failure and now Fastlane has decided to open more Fastlane stores and to keep them open longer than their competitors. Fastlane has: A. Abandoned a retail format development strategy and adopted a diversification strategy B. Abandoned a diversification strategy and adopted a market penetration strategy C. Abandoned a market penetration strategy and adopted a retail format development strategy D. Abandoned a diversification strategy and adopted a market expansion strategy E. Abandoned a market expansion strategy and adopted a market penetration strategy 3. A retail strategy is a statement that will identify which of the following? A. output measures B. price points C. the advertising campaign D. the retail market E. the target market A retail strategy identifies the target market, but also the format the retailer plans to use to satisfy the target market's needs and the basis upon which the retailer plans to build a sustainable 4. Which of the following provides the direction that the retailer plans to take to deal effectively with environmental factors? A. marketing objective B. merchandise budget plan C. mission statement D. organizational structure E. retail strategy

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5. You are about to loan a friend $10,000 to start a candy store in a central business district. Where can you find information about how he plans to build a sustainable advantage? A. In the marketing objectives B. In the organizational chart C. In the organizational mission statement D. In the retail market strategy E. In the situation audit who have children under the age of 10 and who have annual incomes of more than $50,000. These parents are the store's: A. marketing mix B. marketing objective C. retail format D. retail mix E. target market

7. The Knotty Question is a tie store chain that is found in many airport concourses. Its _____ is business travelers who have either forgotten to pack a tie or spilled something on their tie and need a replacement. A. retail format B. retail mix C. target market D. marketing mix E. marketing objective The target market is the segment toward which the retailer focuses its investment. 8. A retailer's format uses the ___________ to satisfy the needs of the target market. A. buying plan B. demographic information C. positioning statement D. retail mix E. sustainable competitive advantage 9. Talbots is a catalogue and a specialty store retailer. Its target market is 35-to-55-year-old women. Sixty percent of its customers are college-educated with an average family income of $75,000. Talbots offers private brands, moderate to better-priced women's classic apparel, shoes, and accessories. Its stores are located in village locations and upscale regional malls. Synergies among the store, catalogue and website operations provide a competitive advantage over other retailers. This is a description of Talbots': A. retail strategy B. marketing objective C. merchandise budget plan D. mission statement E. organizational structure 2

The retail strategy identifies the retail format, the target market, and the basis for the retailer's competitive advantage.

10. Starbucks is a chain of gourmet cafes that cater to coffee drinkers. Many of their customers commute from the suburbs and many of the stores are in business districts to accommodate the commuters' needs. Starbucks sells their private brand of coffees and accompanies them with fresh baked goods. They have a synergy between their stores and their website which helps to maintain an advantage over competing local coffee shops. This is a description of Starbuck's: A. marketing objective B. merchandise budget plan C. mission statement D. organizational structure E. retail strategy

11. Fingerhut is best known as a catalogue retailer selling a variety of merchandise. Their reach is over 500 million homes with a target market of households with annual incomes between $15,000 and $35,000. Fingerhut offers unique payment plans to meet the needs of their customers and has a sophisticated database management technique that targets marketing activities and minimizes credit risks. This is an example of a: A. marketing segmentation B. merchandise assortment pan C. mission statement D. retail classification E. retail strategy 12. Which of the following is a group of consumers with similar needs and a group of retailers using a similar format to satisfy those consumers' needs? A. marketing format B. retail market C. retail mix D. target audience E. target market 13. Why should a retailer be concerned with building a sustainable competitive advantage? A. It could affect merchandise planning B. They should not as other retailers would just duplicate the efforts C. It could result in long-term profitability D. It is the final step in developing the retail strategy E. The competition's advantage will stimulate the retailer's market

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14. How would a locally owned fitness centre develop a sustainable competitive advantage over a chain like Movati Fitness Centres? A. Advertise in health and fitness magazines B. Develop relationships with members by offering unique work-out programs with assigned instructors recommending specific routines to suit their needs C. Offer more classes D. Reduce membership fees E. Utilize a computerized database management system to monitor visitors and out of town guests Correct answer is the only one that would be hard to duplicate.

5. A dry cleaner can develop a sustainable competitive advantage doing the following EXCEPT: A. securing a good location B. developing a customer database to offer special promotions C. developing a coupon offering with some of the local department stores D. develop a patented chemical that removes wine stains without harming the fabric E. By providing the same service and pricing as their direct competitors

16. Which of the following would NOT be an effective way for a jewellery store to develop a sustainable competitive advantage? A. Develop an excellent relationship with the jewellery vendor B. Develop an efficient inventory system C. Sell gold watches at lower prices than anywhere else in town D. Secure a good location E. Carry unique merchandise Selling merchandise at lower prices can be easily replicated. 17. Which of the following is an area in which a retailer can develop a long-term competitive advantage? A. advertising B. loss prevention C. carry national brands D. vendor relations E. visual merchandising

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18. Which of the following is an opportunity for a retailer to develop a sustainable competitive advantage? A. Customer loyalty B. Customer service C. Distribution systems D. Unique merchandise E. All of these are opportunities for the retailer

19. Although she considers many retailers when shopping for clothes, Rosa always buys suits in Reitmans because their selection and prices are second to none. Her affinity for Reitmans best demonstrates which of the following? A. brand awareness B. brand familiarity C. customer loyalty D. good vendor relations E. unique merchandise assortment 20. Even though there are several garages in town, Kelly gets her oil changed only at Mr. Lube. This commitment to Mr. Lube illustrates: A. brand acceptance B. customer loyalty C. good customer service D. store awareness E. coincidence 21. Retailers foster customer loyalty by: A. having a generalized organizational mission statement B. having no one distinct image of their brand C. providing superior customer service D. trying to attain qualitative objectives rather than quantitative ones E. using a mass advertising strategy Correct option is listed in the text as one means of fostering customer loyalty. 22. A department store can foster customer loyalty by: A. accepting all major credit cards B. using single sourcing C. having a sales-oriented mission statement D. positioning itself as a store that cares as much about its customers E. offering free gift wrap with a $50 purchase

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23. A small town quilting supply store compete against Walmart and still thrive? A. The shop can extend its hours B. The store can lower prices C. The store can hire part time employees D. The shop can offer classes on quilting. E. Increase inventory Only the specific response of offering classes will set it apart from what Walmart can do. All of the other alternatives will be surpassed by Walmart.

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24. Mary wanted to purchase a vase as a wedding gift. Pier 1 Imports offers a better assortment and slightly lower prices, but she immediately went to her local gift shop instead and passed the Pier 1. This is an example of: A. a situation audit B. customer loyalty C. direct competition D. retail perception E. strategic controls

25. Positioning is the process of: A. acquiring a lease for a retail store in a region B. creating and supporting a clear and distinct image C. finding a retail location site D. negotiating the percentage-of-sales payment to the mall owners E. performing a situation audit

26. __________ is the design and implementation of a retail mix to create an image of the retailer in the customer's mind relative to its competitors. A. Competitive feedback B. Detailing C. Imaging D. Positioning E. Retail perception

27. The parking lot of the Chevy Café contains four vintage restored Chevrolets from the 1950s and 1960s. The café building is painted the same colour blue as used on 1964 Chevrolets. The booths inside are made to look like car bench seats. The food served is limited to burgers, hotdogs, shakes, and fries. The café's image as a retro place to eat is an example of the implementation of a/an __________ strategy. A. detailing B. imaging C. positioning D. response-stimulus E. retail perception Positioning is the design and implementation of a retail mix to create an image of the retailer in the customer's mind relative to its competitors.

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28. Customers that shop at Books-A-Million find that it has a marvellous selection of books with a helpful and friendly staff. In addition, they can enjoy a peaceful place to read while sipping a cappuccino at the in-store coffee shop. Their perception of the store indicates its ______________ strategy. A. imaging B. perceptual retailing C. positioning D. retail feedback E. visual merchandising Positioning refers to the image that the customer has of the store.

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29. Lisa loves to stop into Winners once a week. Winners purchases overruns or out-of-season merchandise from vendors and retailers then sells them in their stores for less. With each visit, she never knows what she will find, but she feels assured it will be a bargain. Winners store is ____________ in Lisa's mind as a retailer with varied assortments with reasonable prices. A. perceived B. positioned C. solidified D. sustained E. visualized

30. The Crooked Room restaurant is an interesting spot for breakfast. The floors are cracked terrazzo, the walls are covered with local art, the seats are wobbly and the cooks are grouchy, yet on Sunday mornings, there's always a wait because the food is good and cheap. The Crooked Room has _______________ itself to locals as a familiar place to go for inexpensive, good food. A. labelled B. offered C. positioned D. presented E. solidified ated on Cape Breton Island. It has a 100-year history of visitors and vacationers from all over the world. The Inn exudes luxury from the moment you walk to the moment you savour the fine cuisine in its restaurant. The rooms are decorated with furniture from the early 20th century. Visitors are served beverages on the porch as they rock in the chairs and watch the port. This model of luxury is part of The Atlantic Inn's _____________. A. culture B. marketing program C. perception D. positioning E. strategy 32. Customer loyalty programs are part of: A. positioning B. human resource management C. the retail concept D. data warehouses E. customer relationship management

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33. Pat signed up for a PC Mastercard and can collect points on all purchases from Loblaws and Shoppers Drug Mart. The program is an example of a: A. food club B. customer service strategy C. loyalty program D. marketing strategy E. warehouse club

34. By using the information provided from the data warehouse, a retailer can: A. advertise to a more marketable demographic segment B. determine whether moving to a new location would attract more business C. easily gauge price points to meet the competitor's prices D. offer more services like gift wrap, lower interest rate credit, and same-day delivery E. tailor offerings to better meet the needs of their customers 35. Building store loyalty by targeting customers and better meeting their needs can: A. annoy occasional shoppers B. attract new shoppers C. improve customer satisfaction D. inhibit customer growth E. prohibit the variety of assortments in a category

36. When Starbucks opened in Seattle, it allowed store density to promote the business. Sometimes, the storefronts occupied two corners of an intersection. Only when the Seattle market was saturated did Starbucks move into other markets. Starbucks understands the value of building a competitive advantage through securing: A. customer loyalty B. database warehouses C. good locations D. positioning E. trained servers 37. Good human resource management is important to retailers for the following reason: A. employees manipulate the system when there is no training B. employees who are motivated and feel a part of a culture are more likely to build customer loyalty C. management is not trained in labour laws D. management does not have the time to develop training programs because of their other responsibilities E. the goal is to develop long-term relationships with employees

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Retailers gain a sustainable competitive advantage by motivating and coordinating employee efforts, providing incentives, fostering a strong culture and managing diversity. 38. Developing programs to motivate and coordinate employee efforts, providing incentives, fostering an organizational culture and managing diversity are functions of the: A. chief executive officer B. district manager C. general store manager D. human resource manager E. marketing manager 39. Having efficient distribution and information systems is vital for retailers to sustain a competitive advantage due to the following EXCEPT: A. they are able to get the merchandise to the customer quickly and efficiently B. they are able to get the assortments to the customer they want C. they are able to deliver merchandise at lower costs and apply the margin to lower prices or better services D. the information flow between vendors and stores is seamless enabling rapid replenishment E. the manufacturing quality of the product is enhanced

40. Since Walmart has an efficient distribution and information system, it is able to offer _____________ to its customers. A. a greater depth of merchandise B. better customer service C. better locations D. complementary services and merchandise E. lower prices

41. It is difficult for retailers to develop a sustainable competitive advantage with merchandise alone because: A. competitors can purchase and sell the same national brands B. designers specify which retailers can sell their brands C. different regions of the country carry different merchandise D. distribution centres are unreliable on shipping dates E. vendors favour the larger retailers because they buy more volume

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42. When given a choice between selling a national brand of makeup and a private-label brand, a mall-based specialty store retailer might choose to develop a private-label brand: A. to prevent its customers from comparison shopping B. to limit its store traffic to qualified buyers C. to increase its sales expenses D. to increase its merchandising flexibility E. for all of these reasons In a mall situation where several stores carry national brands, consumers who are attracted by brands rather than the store do not develop store loyalty and will comparison shop for the best prices.

43. Another name for store brands is _________ brands. A. national B. private-label C. exclusive D. generic E. unique

44. A successful private-label brand with produce the following EXCEPT: A. develops store loyalty B. increases store traffic C. enhances store image D. differentiates a store from its competitors E. increases cost for retailers and consumers 45. Which of the following is an example of a private-label brand sold at Loblaws? A. President's Choice coffee B. Kellogg's cornflakes C. Heinz ketchup D. Tim Horton's Coffee E. French's Mustard PC coffee must be bought exclusively at supermarkets owned by Loblaw Companies Limited. All of the other alternatives can be purchased at a number of different retailers.

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46. Kirkland Signature brand products sold at Costco are an example of: A. competitive brands B. multiple source advantage C. national label brands D. private-label brands E. no-name brands

47. Why would a retail chain like La Senza want to develop private-brand labels to be sold exclusively at its stores? A. To gain publicity for the chain B. To foster customer loyalty C. To upgrade its reputation as a lingerie boutique D. To develop effective distribution strategies E. To take advantage of its mall locations Private labels create exclusivity, which, in turn, encourage customer loyalty.

48. What is a benefit of having strong relations with a vendor? A. A retailer could receive popular merchandise in short supply. B. It is easier to return to a solid relationship with a vendor when private-labels fail. C. Strong relations mean better profits for shareholders. D. Vendors supply complementary merchandise to their most profitable supporters. E. Vendors determine which retailers will receive the better prices. Good relationships can lead to exclusive rights to sell merchandise in a region, or obtain special terms of purchase, or receive popular merchandise in short supply. 49. In order to offer consistent and long-term good customer service, retailers must do the following EXCEPT: A. demand it from their employees B. instill its importance to their employees C. invest more in information systems D. offer incentives for employees who offer consistent services E. have employees work 60 hours a week to serve customers after hours

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50. The best way for a retailer to develop a sustainable competitive advantage is to the following EXCEPT: A. concentrate on finding the best location B. concentrate on having the lowest prices in town C. develop a good distribution system D. maintain good vendor relations E. offer products and services than maintain the same quality as direct competitors A sustainable competitive advantage is best protected by using multiple approaches.

51. The following are examples of growth opportunities EXCEPT for: A. Market penetration B. Diversification C. Retail format development D. Market expansion E. Store closures

52. A ________ opportunity involves directing efforts toward existing customers by using its present retailing format. A. market penetration B. diversification C. retail format development D. market expansion E. market divestment

53. Which type of retail growth strategy is most closely associated to cross-selling? A. market penetration B. diversification C. retail format development D. market depletion E. market divestment

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54. A doughnut shop that decides to o...