CH08 Info Gathering and Processing in Retailing

Question 1

Retail information system (RIS) (p. 195)

Answer 1

Anticipates the information needs of retail managers; collects, organizes, and stores relevant data on a continuous basis; and directs the flow of info to the proper decision makers

Question 2

Database management (p.197)

Answer 2

• Where a retailer gathers, integrates, applies, and stores info related to specific subject areas
• Major element in retail info systems, and may be used with customer databases, vendor databases, product category databases, etc.
• Should be approached as a series of 5 steps:
  1. Plan the particular database and its components and determine info needs
  2. Acquire the necessary info
  3. Retain the info in a usable and accessible format
  4. Update the database regularly to reflect demographic trends, recent purchases, etc.
  5. Analyse the database to determine company strengths and weaknesses

Question 3

Data warehousing (p. 198)

Answer 3

Copies of all the databases in a firm are maintained in 1 location and are accessible to employees at any locale

Question 4

Data mining (p.199)

Answer 4

• in-depth analysis of info to gain specific insights about customers, products categories, vendors, etc.
• Goal? To learn if there are opportunities and tailored marketing efforts that would lead to better retailer performance

Question 5

Universal Product Code (UPC) (p. 200)

Answer 5

an item’s dentification code, marked with a series of thick and thin vertical lines

Question 6

Electronic data interchange (EDI) (p.200)

Answer 6

when retailers and suppliers regularly exchange info through their computers with regard to inventory levels, delivery times, unit sales, etc. on particular items

Question 7

Marketing research process (p. 202)

Answer 7

a series of activities:
1. define the problem to be researched
2. examine secondary data
3. generate primary data
4. analyze data
5. make recs
6. implement findings

Question 8

marketing research in retailing (p. 201)

Answer 8

the collection and analysis of info relating to specific issues facing a retailer

Question 9

issue (problem) definition (p. 202)

Answer 9

involves a clear statement of the topic to be studied

Question 10

secondary data (p. 202)

Answer 10

data that has been gathered for purposes other than addressing the issue currently under study

Question 11

primary data (p. 202)

Answer 11

data collected to address the specific issue under study

Question 12

internal secondary data (p. 204)

Answer 12

data available within the company, sometimes from the data bank of a RIS

Question 13

external secondary data (p. 206)

Answer 13

data available from sources outside the firm

Question 14

probability (random) sample (p. 207)

Answer 14

when every store, product, or customer has an equal/known chance of being chosen for study

Question 15

nonprobability sample (p. 207)

Answer 15

when stores, products, or customers are chosen by the researcher based on judgement or convenience

Question 16

survey (p. 207)

Answer 16

typically info is systematically gathered from respondents by communicating with them

Question 17

semantic differential (p. 208)

Answer 17

survey format, using a listing of bipolar adjective scales, that may be disguised or undisguised

Question 18

observation (p. 208)

Answer 18

the form in research in which present behavior or the results of past behavior are noted and recorded

Question 19

mystery shopper (p. 209)

Question 20

experiment (p. 209)

Answer 20

when retailers or their market research partners hire ppl to pose as customers and observe a service or brand through visits, telephone calls, or web site interactions

Question 21

simulation (p. 209)

Answer 21

a type of experiment whereby a computer program is used to manipulate the elements of a retail strategy mix rather than test them in a real setting