Retail

Question 1

Adapting the resources of the firm to the opportunities and threats of an ever-changing retail environment.

Answer 1

Strategic Planning

Question 2

Components of Strategic Planning

Answer 2

Mission, Statement of Goals and Objectives, SWOT, Strategies

Question 3

It is a basic description of the fundamental nature, rationale, and direction of the firm.

Answer 3

Mission Statement

Question 4

A control mechanism by establishing a standard against which the firm can measure and evaluate its performance

Answer 4

Statement of Goals and Objectives

Question 5

The retailer’s total sales divided by total market sales.

Answer 5

Market Share

Question 6

Products that are out of stock and therefore unavailable to customers when they want them.

Answer 6

Stockouts

Question 7

State the sales objectives that the retailer desires for each unit of resource input.

Answer 7

Productivity Objectives

Question 8

Net sales divided by the total square feet of retail floor space.

Answer 8

Space productivity

Question 9

Net sales divided by the number of full time–equivalent employees

Answer 9

Labor productivity

Question 10

Net sales divided by the average dollar investment in inventory

Answer 10

Merchandise productivity

Question 11

Are a carefully designed plan for achieving the
retailer’s goals and objectives.

Answer 11

Strategies

Question 12

➢What major competitive advantage(s) do we have?
➢What are we good at?
➢What do customers perceive as our strong points?

Answer 12

Strengths

Question 13

➢What major competitive advantage(s) do competitors
have over us?
➢What are competitors better at than we are?
➢What are our major internal weaknesses?

Answer 13

Weaknesses

Question 14

➢What favorable environmental trends may benefit our firm?
➢What is the competition doing in our market?
➢What areas of business that are closely related to ours are undeveloped?

Answer 14

Opportunities

Question 15

➢What unfortunate environmental trends may hurt our future performance?
➢What technology is on the horizon that may soon have an impact on our firm?

Answer 15

Threats

Question 16

Group of customers that the retailer is seeking to serve.

Answer 16

Target Market

Question 17

Geographic space or cyberspace where the retailer conducts business.

Answer 17

Location

Question 18

Combination of merchandise, price, advertising and promotion, location, customer service and selling, and store layout and design.

Answer 18

Retail Mix

Question 19

A clear statement of the tangible and/or intangible results a receives from shopping at and using the retailer’s products or services.

Answer 19

Value Proposition

Question 20

Deals with activities directed at maximizing the efficiency of the retailer’s use of resources. It is frequently referred to as day-to-day management.

Answer 20

Operations Management

Question 21

Occurs when the total shopping experience of the customer has been met or exceeded.

Answer 21

Customer satisfaction

Question 22

Activities performed by the retailer that influence:
* the ease with which a potential customer can shop or learn about the store’s offering.
* the ease with which a transaction can be completed once the customer attempts to make a purchase.
* the customer’s satisfaction with the transaction.

Answer 22

Customer services

Question 23

Occurs when a market has homogenous products and many buyers and sellers, all having perfect knowledge of the market, and ease of entry for both buyers and sellers

Answer 23

Pure competition

Question 24

Occurs when there is only one seller for a product or service.

Answer 24

Pure monopoly

Question 25

Occurs when the products offered are different, yet viewed as substitutable for each other and the sellers recognize that they compete with sellers of these different products.

Answer 25

Monopolistic competition

Question 26

Relatively few sellers, or many small firms who follow the lead of a few larger firms. Offer essentially homogeneous products and any action by one seller is expected to be noticed and reacted to by the other sellers

Answer 26

Oligopolistic competition

Question 27

Are likely to end up selling at a similar price since everybody knows what others are doing.

Answer 27

Oligopolies

Question 28

Occurs when a household travels outside their community of residence or uses the Internet to shop in another community.

Answer 28

Outshopping

Question 29

Identifying a well-defined market segment using demographic or lifestyle variables and appealing to this segment with a clearly differentiated approach.

Answer 29

Store positioning

Question 30

Condition in a community where the number of stores in relation to households is so large that to engage in retailing is usually unprofitable or marginally profitable.

Answer 30

Overstored

Question 31

Condition in a community where the number of stores in relation to households is relatively low so that engaging in retailing is an attractive economic endeavor

Answer 31

Understored

Question 32

(True or False): Competition is most intense in overstored markets because many retailers are achieving an inadequate return on investment

Answer 32

True

Question 33

(True or False): Nonprice variables are directed at enlarging the retailer’s demand by offering customers benefits beyond simply the lowest price

Answer 33

True

Question 34

Shell, Petron, Sea Oil, and Caltex are what examples of market structure

Answer 34

Oligopoly

Question 35

(True or False): Retailers in monopolistic competition attempt to differentiate themselves with the products or services they offer.

Answer 35

True

Question 36

Channel members that take title to the goods as they move through the marketing channel.

Answer 36

Primary marketing institutions

Question 37

Channel members that do not actually take title but assist in the marketing process by specializing in the performance of certain marketing functions.

Answer 37

Facilitating marketing institutions

Question 38

Channel member is loosely aligned with the others and takes a short term orientation; is an unproductive method for marketing goods.

Answer 38

Conventional marketing channel

Question 39

Several levels are professionally managed and centrally programmed to realize the technological, managerial, and promotional economies of a long-term relationship orientation

Answer 39

Vertical marketing channels

Question 40

Either a manufacturer that has integrated vertically forward to reach the consumer or a retailer that has integrated vertically backward to create a self supply network.

Answer 40

Corporate vertical marketing channels

Question 41

Use a contract to govern the working relationship between channel members

Answer 41

Contractual vertical marketing channels

Question 42

The wholesaler brings together a group of independently owned retailers and offers them a coordinated merchandising and buying program that will provide them with economies

Answer 42

Wholesaler-sponsored voluntary groups

Question 43

Wholesale institutions, organized and owned by member retailers, that offer scale economies and services to member retailers, which allows them to compete with larger chain buying organizations.

Answer 43

Retailer-owned cooperatives

Question 44

Exist when one of the channel members takes the initiative to lead the channel by applying the principles of effective interorganizational management.

Answer 44

Administered vertical marketing channels

Question 45

Occurs when a retailer needs another supply chain member or vice versa to perform certain marketing functions.

Answer 45

Dependency

Question 46

When two members of the supply chain are dependent on each other.

Answer 46

Interdependent

Question 47

(True or False): Interdependency is at the root of the collaboration found in today’s supply chains, and is the major cause of conflict found in supply.

Answer 47

True

Question 48

Ability of one channel member to influence the decisions of the other channel members.

Answer 48

Power

Question 49

* Education * State of Marriage * Divorce * Makeup of households * Changing nature of work

Answer 49

Social Trend

Question 50

* Income growth * Personal savings * Women in the labor force * Widespread use of credit

Answer 50

Economic Trend

Question 51

Only one retailer in the trading area sells the products

Answer 51

Exclusive Distribution

Question 52

Moderate number of retailers in each trading area sell products

Answer 52

Selective Distribution

Question 53

All possible retailers in the trading area sell the products

Answer 53

Intensive Distribution

Question 54

What marketing channel includes administered systems, contractual systems, corporate systems, wholesaler sponsored groups, retail owned cooperatives, and franchised retail programs

Answer 54

Vertical Marketing

Question 55

Based on B’s perception that A has the ability to provide rewards for B.

Answer 55

Reward Power

Question 56

Based on B’s perception that A has some special knowledge.

Answer 56

Expertise Power

Question 57

Based on the identification of B with A

Answer 57

Referent Power

Question 58

Based on B’s belief that A has the capability to punish or harm B if B doesn’t do what A wants.

Answer 58

Coercive Power

Question 59

Based on A’s right to influence B, or B’s belief that B should accept A’s influence.

Answer 59

Legitimate power

Question 60

Based on A’s ability to provide B with factual data.

Answer 60

Informational Power

Question 61

The retailer and supplier have different perceptions of reality.

Answer 61

Perceptual incongruity

Question 62

Achieving the goals of either the supplier or the retailer would hamper the performance of the other

Answer 62

Goal incompatibility

Question 63

Manufacturer sells to independent retailers and also through its own retail outlets.

Answer 63

Dual distribution

Question 64

Disagreement about which member of the marketing channel should make decisions.

Answer 64

Domain disagreements

Question 65

Branded merchandise flows through unauthorized channels

Answer 65

Gray Marketing

Question 66

Branded merchandise flows through unauthorized channels

Answer 66

Gray Marketing

Question 67

Consumer seeks product information, usage instructions, and sometimes even warranty work from a full-service store but then, armed with the brand’s model number, purchases the product from a limited service discounter or over the Internet.

Answer 67

Free-riding