CH02 Retailing Relationships

Question 1

value

Answer 1

• The difference between a prospective customer’s evaluation of the benefits and costs of one product when compared with others
• Eg. why choose one product over another

Value=Results+Process Quality−Price−Customer Access Costs

Question 2

value chain

Answer 2

• The total bundle of benefits offered to consumer through distribution channels
• Eg. in retail: store location, parking, ambience, customers service, quality, in-stock, shipping prices, etc.

Question 3

core customers

Answer 3

Best customers–loyal, satisfied customers who get high value from the retailer and generate high profits for the retailer

Question 4

expected customer service

Answer 4

The service level that customers want to receive from any retailer

Question 5

augmented customer service

Answer 5

Includes the activities that enhance the shopping experience an give retailers a competitive advantage

Question 6

employee empowerment

Answer 6

When an employee has the power to make a decision without needing to consult someone higher up

Question 7

revolving credit account

Answer 7

Where a customer charges items and is billed monthly on the basis of the outstanding cumulative balance

Question 8

option credit account

Answer 8

• A form of a revolving account; no interest is assessed if a person pays a bill in full when it is due
• When a person makes a partial payment, they are assessed interest monthly on the unpaid balance

Question 9

open credit account

Answer 9

• Whereby a consumer must pay the bill in full when it is due
• Partial revolving payments are not permitted
• A person with an open account also has a credit limit

Question 10

customer satisfaction

Answer 10

How satisfied a customer is with a retailers’ product and the service to obtain said product/service

Question 11

consumer loyalty (frequent shopper) programs

Answer 11

• Programs put in place where customer gain points with their purchase that can provide additional benefits within a retailer’s store
• Can come in the form of discounts, free gifts, etc.
• Eg. stores: Sephora, Indigo, Starbucks rewards, etc

Question 12

value delivery system

Answer 12

Comprises of all the parties that develop, produce, deliver, and sell and service particular goods and services

Question 13

goods retailing

Answer 13

• The retailing of physical goods
• Eg. the pharmacy

Question 14

service retailing

Answer 14

• The retailing of services
• Eg. getting your nails done

Question 15

rented-goods services

Answer 15

When customers rent or lease goods
Eg. rent a bouncy castle, lease a car

Question 16

owned-goods services

Answer 16

When customers buy goods for life
Eg. literally buying anything

Question 17

nongoods services

Answer 17

• Services? Buying or putting money towards anything that isnt a good but that still provides you with value
• key characteristics: intangibility, consumption experience, and perishability
• Eg. haircuts, personal training, medical care, legal advice, etc.

Question 18

electronic banking

Answer 18

• Involves both the use of AMTs and the instant processing of retail purchases
• Allows centralized recordkeeping and lets customers complete transaction 24/7 outside of a bank
• Eg. Apple pay 🍏

Question 19

ethics

Answer 19

• Good versus bad
  Acts in trustworthy, fair, honest, and respectful manner with each of its constituencies

Question 20

social responsibility

Answer 20

• What we as a society uphold
• Acts in the best interests of society–as well as itself

Question 21

consumerism

Answer 21

Involves the activities of government, business, and other organizations to protect people from practices of infringing on their rights as consumers

Question 22

Americans with Disabilities Act (ADA)

Answer 22

• A law; mandates that a person with disabilities be given appropriate access to retailing facilities
• Eg. the automated shopping carts