Chapter 3 Test Flashcards
What is the name of the rule that says “a small number of of customers account for the majority of the profit. 80% of the profit comes from 20% of the customers?
80-20 Rule
What is the segment that is composed of a retailers most loyal customers?
Platinum segment
20% of the customers make up this segment.
Gold segment
Customers that are price conscious is called the?
Iron segment
What is used by managers to gauge how well the store and each department are operating?
Financial Reports
Represents percentages or proportions where the entire portion represents 100% and each smaller portion represents a piece of the 100%
Pie charts
What is it when “some retailers match competitor’s prices if it can be proven in a sales ad or coupon. This helps the customer to get the best price.”?
Price matching
What is the general rule in retail stores?
The customer is always right.
What is used to compare information?
Bar graphs
What is the actual number of sales transactions made?
Total number of Transactions
What is the total number of items within each transaction?
Units per transaction
graphs that show how data changes over a period of time
Line graphs
this is the price the customer is willing to pay for the product or service based on what the purchase will give them
Price sensitivity
- What is an ad-
a. Regular priced merchandise- new items, latest trends
b. Sale merchandise- retailers run sales as a way to get customers into the store.
c. Clearance merchandise- reduced priced items the retailer no longer wants.
the best means of advertising
Word of Mouth
this is the lowest segment and can actually cost the company money
Lead segment
it is necessary to keep records on your customers to better them
Customer records
customers receive special offers or rewards by shopping at their store, staying at their hotels, or flying their airlines.
Loyalty Program
Client records should include the following basic information
a. Name
b. Address
c. Telephone Number(s)
d. Occupation (or hobbies, collections, activities, projects, or other interest that influence buying preference.
when a person recommends a store or sales person based on his or her experience
Referal
How retailers tell customers about their sales and promotions
a. Coupons
b. Newspaper ads
c. Flyers and Circular
d. Television or radio ads
e. Special events
f. Online ads and sales
- When pricing items, retailers must consider the following?
a. What price would be considered so expensive that customers would not buy it?
b. What price would be too low so that the customer would feel the quality couldn’t be very good?
c. What price would be considered starting to get expensive, but not out of the question? The customer would have to give it some thought.
d. What price would the customer consider the item to be a bargaining
If an item goes on sale, make sure that
a. The advertised sale price comes up when the item is scanned.
b. The correct price is shown on the shelf signage.
c. The price tags reflect the price change.
Retailers with websites may charge different prices for online purchases than for those made in the store
True
