The end.
(retailing sits at the end of the supply chain, facing the consumer.)
question
Retailing is the primary activity in all of the following situations EXCEPT
answer
Transporting pallets of Daisy brand dairy products.
(Retailing is defined as the set of business activities that add value to products and services sold to consumers for their personal or family use.)
question
Natalie represents a manufacturer who makes unique, high-end hats. When making a recommendation about potential retail partners, what should be Natalie's first consideration?
answer
How likely is it for certain retailers to carry this product?
(In choosing retail partners, Natalie must first assess how likely it is for certain retailers to carry the product.)
question
Retailing is defined as the set of business activities that
answer
Adds value to products and services sold to final consumers.
(This is the definition of retailing.)
question
Which of the following is NOT one of the typical outlets used by retailers?
answer
Business-to-business requests for proposals (RFPs).
(B2B requests for proposal are used by firms in the B2B buying process. All other outlets listed are typical channels retailers use.)
question
The key factor distinguishing retailers from other members of the supply chain is that
answer
They sell to customers for their personal use.
(Retailers sell to the end customer, who can be either a consumer or a business, for their own use (i.e., not for resale).)
question
Wholesalers sell to all of the following EXCEPT
answer
Consumers.
(Wholesalers connect channel members together, including businesses and manufacturers, but they do not sell to consumers.)
question
Which of the following is NOT one of the broad factors manufacturers must consider when establishing a strategy for getting their products into the hands of the ultimate customer?
answer
Lowering production costs.
(All of the factors listed except lowering production costs are issues manufacturers must consider when developing a strategy for getting their products to the final customer.)
question
Aaron has designed innovative accessories for hard-core bicycling enthusiasts. He knows where and how he will make them, and he needs to turn his attention to getting the products to the customers. As he chooses retail partners, which of the following is LEAST important in this process?
answer
Encouraging new bicycling enthusiasts.
(All of the factors listed except encouraging new bicycling enthusiasts are issues Aaron must consider when developing a strategy for getting his products to the final customer.)
question
In the past, __________ dominated supply chains.
answer
Manufacturers.
(Historically, manufacturers used to dominate supply chains.)
question
Today, __________ dominate supply chains.
answer
Large retailers.
(Large retailers like Walmart have become so powerful that today they dominate their supply chains.)
question
Today, retailers like Walmart, Home Depot, and Kroger dictate to their suppliers all of the following EXCEPT
answer
Which competitors they should collaborate with.
(Retailing today is changing, both in the United States and around the world. Manufacturers no longer rule many supply chains, as they once did. Retailers like Walmart, Home Depot, and Kroger dictate to their suppliers what should be made, how it should be configured, when it should be delivered, and, to some extent, what it should cost. They do not, however, dictate which competitors their suppliers should collaborate with.)
question
Knowing what customers expect is essential. Retailers need to know which manufacturers their customers prefer, whereas manufacturers need to know
answer
Where their target customers expect to find their products.
(Manufacturers must know where their target customers expect to find their products, or they will not know which retailers to consider as partners.)
question
Generally, the larger and more sophisticated the channel member, the less likely that it will
answer
Use supply chain intermediaries.
(Larger, more sophisticated channel members (such as large manufacturers) are likely to perform many channel functions for themselves instead of using intermediaries.)
question
John used to work for a large, well-known retailer. He left that company to work for a much smaller company, and in doing so, he discovered that the channel functions were handled very differently in the smaller firm. Looking back at his experience, he noticed that larger firms
answer
Perform many channel functions themselves.
(Larger, more sophisticated channel members (such as large manufacturers) are likely to perform many channel functions for themselves instead of using intermediaries. They are large enough to be able to achieve economies of scale, increasing efficiency and reducing costs.)
question
Distribution intensity is commonly divided into three levels:
answer
Intensive, exclusive, and selective.
(The three types of supply chain intensity are intensive, exclusive, and selective.)
question
Some companies want to get their products into as many outlets as possible, understanding that the more exposure a product gets, the more it will sell. If this is consistent with the company's overall strategy, it will choose __________ distribution.
answer
Intensive.
(Intensive distribution refers to getting a product into as many outlets as possible.)
question
When Creative Pen Company designed a new pen that was particularly comfortable to use, it wanted to literally get the pen in the hands of as many consumers as possible. Creative Pen will probably choose __________ distribution for its new product.
answer
Intensive.
(Intensive distribution refers to getting a product into as many outlets as possible.)
question
Anbinh Fashions is launching a new line of one-of-a-kind designer jewelry. Each piece is handcrafted, and production volumes will be very low. To emphasize the unique nature of this jewelry, Anbinh Fashions will probably choose _________ distribution.
answer
Exclusive.
(Anbinh Fashions should use exclusive distribution. This will reinforce the unique nature of the jewelry and match the low production volumes.)
question
Heartland Plantation produces organic food products like stone-ground grits and wild rice. The company has limited production capacity and wants to carefully control where its products are sold. Heartland will likely choose __________ distribution intensity.
answer
Exclusive.
(Heartland Plantation should use exclusive distribution, both to match its limited production capacity and to grant it the control it wants.)
question
__________ distribution intensity helps a seller to maintain a particular image and control the flow of merchandise into an area.
answer
Selective.
(Selective distribution intensity, in which a few sellers in a given area are permitted to sell a product, is a good strategy for maintaining an image and controlling the flow of merchandise without resorting to the more extreme solution, exclusive distribution.)
question
If a manufacturer wasn't happy with either intensive or exclusive distribution, a logical choice, which incorporates some features from both, would be __________ distribution.
answer
Selective.
(Selective distribution is a compromise between intensive and exclusive distribution.)
question
Full-line discount, category specialist, and specialty stores are all types of __________ retailers.
answer
General merchandise.
(These are all general merchandise retailers that may carry a wide range of products.)
question
If a manufacturer had a full range of products, in a number of container sizes, which kind of store would the company be LEAST likely to choose as a retailing partner?
answer
Convenience stores.
(Convenience stores carry limited inventory and would not be a good choice for a manufacturer with a full range of products.)
question
Paul's family has owned and operated a small chain of conventional supermarkets for many years. Competition from a variety of other kinds of retailers has adversely affected the business. To address the new competitive reality, Paul wants to apply what he recently learned as a marketing major, and he has recommended that his family's business should
answer
Emphasize fresh, locally sourced perishables.
(Emphasizing fresh, locally sourced perishables is a successful strategy conventional supermarkets use to compete against intrusions by other food retailing formats.)
question
Supercenters have become the fastest growing retail category by combining broad assortments of groceries and general merchandise products. __________ dominates this category with the vast majority of supercenters in the United States.
answer
Walmart.
(Walmart has thus far made the largest investment in supercenters of any retailer.)
question
Compared to conventional supermarkets, warehouse clubs have
answer
A lower level of service.
(Compared to conventional supermarkets, warehouse clubs have a lower level of service and prices. They charge annual fees and target both consumers and small businesses.)
question
Which of the following represents the BEST reason a manufacturer of high-end products might consider selling products in a warehouse club?
answer
The manufacturer overestimated demand or has a great deal of returned merchandise from other retailers.
(A high-end manufacturer would not want to sell in a warehouse club under normal circumstances because it is not consistent with the image and service level expected for high-end products. But for overstocks or returns, a warehouse club might be a good place to sell these extra products.)
question
__________ are combating competitive pressures by offering fresh food and healthy fast food, tailoring assortments to local markets, opening locations closer to where consumers work and shop, and adding new services.
answer
Convenience stores.
(Convenience stores are facing competition from supermarkets and supercenters adding gas stations and from drugstores carrying convenience store merchandise. They are looking for additional ways to compete.)
question
Brian, an industrial equipment sales rep, purchases a quick snack to eat on the way to work. He buys lunch while on the road visiting customers and grabs bread and milk on the way home when he stops to buy gas. Brian probably does the majority of this shopping at a
answer
Convenience store.
(Brian probably makes these purchases in convenience stores in the midst of his busy life.)
question
If you walk into a __________ you will likely find a broad variety of merchandise, deep assortment and customer service with everything divided into what appears to be a collection of specialty shops.
answer
Department store.
(Department stores carry many categories of merchandise organized into departments that seem like small specialty shops.)
question
Kohl's, JCPenney, and Bloomingdales are examples of
answer
Department stores.
(These are examples of department stores.)
question
__________ are combating competitive pressures by increasing the amount of exclusive and private label merchandise they sell and expanding their online presence.
answer
Department stores.
(Department stores, like most retailers, are experiencing greater competition and need to take extra steps to compete.)
question
Retailers that offer a broad variety of merchandise, limited services, and low prices are known as
answer
Full-line discount stores.
(These are full-line discount stores, such as Walmart and Target.)
question
If you're a manufacturer, and you want to showcase your product in a store that has a narrow but deep selection of merchandise and where sales associates can assist customers with their selections, you'd likely choose
answer
A specialty store.
(You would probably choose a specialty store. You might also consider a category specialist; however, category specialists do not have sales associates across all sections of the store.)
question
If you are a marketer for a manufacturer, and the marketing mix for your product focuses on very specific market segments, you'd like to sell your product through
answer
Specialty stores.
(A specialty store would be the best choice to reach a very specific market segment.)
question
Of the following retailers, the best example of a category killer is
answer
Staples.
(Category killers are category specialists that offer a narrow but deep assortment of merchandise.)
question
As a type of retailer, category specialists are fierce competitors using
answer
A complete assortment in a specific category at low prices.
(Category specialists have a narrow but deep merchandise assortment in one category.)
question
__________ offer a limited assortment of general merchandise at very low prices and are often found in lower-rent locations.
answer
Extreme value retailers.
(Extreme value retailers are small, full-line discount stores that offer a limited merchandise assortment at very low prices.)
question
__________ reduce costs and maintain low prices by buying opportunistically from manufacturers with excess inventory, offering limited assortments of household goods and groceries, as well as health and beauty aids.
answer
Extreme value retailers.
(Extreme value retailers are small, full-line discount stores that offer a limited merchandise assortment at very low prices.)
question
__________ are likely to target low-income consumers who demand national brands but cannot afford to buy large-sized packages.
answer
Extreme value retailers.
(Extreme value retailers are small, full-line discount stores that offer a limited merchandise assortment at very low prices.)
question
__________ can purchase merchandise at one-fifth to one-fourth of the original wholesale prices because they do not ask the suppliers for advertising allowances or markdown adjustments.
answer
Off-price retailers.
(Off-price retailers offer an inconsistent assortment of brand name merchandise at significant discounts from the manufacturer's suggested retail price. They typically purchase closeout merchandise and do not receive special considerations given to traditional retailers.)
question
__________ offer an inconsistent assortment of brand-name merchandise at low prices.
answer
Off-price retailers.
(Off-price retailers offer an inconsistent assortment of brand name merchandise at significant discounts from the manufacturer's suggested retail price. They typically purchase closeout merchandise and do not receive special considerations given to traditional retailers.)
question
Because of the way __________ buy merchandise, customers can never be confident that the same merchandise will be in stock each time they visit the store.
answer
Off-price retailers.
(Off-price retailers offer an inconsistent assortment of brand name merchandise at significant discounts from the manufacturer's suggested retail price. They typically purchase closeout merchandise and do not receive special considerations given to traditional retailers.)
question
Higher-income consumers visiting __________ feel like they are on a treasure hunt, searching for a bargain.
answer
Extreme value retailers.
(Extreme value and off-price retailers offer an inconsistent assortment of brand name merchandise at significant discounts from the manufacturer's suggested retail price. Higher-income consumers are increasingly patronizing these stores for the thrill of the hunt.)
question
If you were a marketer for a clothing manufacturer and you wanted to improve revenues from irregulars, production overruns, and returns, you would be attracted to using
answer
Off-price retailers.
(To be able to sell at prices 20-60 percent lower than the MSRP, off-price retailers buy opportunistically from manufacturers with excess inventory at the end of the season.)
question
Considering what you know about their target markets and merchandise, which of the following retailers is LEAST likely to have an online presence?
answer
Convenience stores.
(Convenience stores provide a limited variety and assortment of merchandise at a convenient location for consumers. They offer only a limited assortment of merchandise at higher-than-average prices, so do not require an online presence.)
question
Jackie is running errands on Saturday morning. First, she drives through Starbucks for a large latte, stops at the tailor to pick up a dress she had hemmed, and then heads to her manicure appointment. What kind of retailers is Jackie visiting?
answer
Service retailers.
(Firms that primarily sell services rather than merchandise are services retailers. All the places that Jackie visited are services retailers.)
question
One of the most fundamental activities of retailers is to provide __________, satisfying the needs of their target market.
answer
The right mix of merchandise and services.
(Retailers must find the right balance between merchandise offered and services provided.)
question
Retailers address the conflict between consumers wanting or needing only one item and manufacturers wanting to produce and ship in quantity by providing
answer
Storage.
(Retailers buy in quantity from manufacturers and then sell single items to consumers, thus providing a storage function.)
question
It is often difficult for retailers to distinguish themselves from their competitors through the merchandise they carry because
answer
Competitors can purchase and sell many of the same popular brands.
(Merchandise can ordinarily not be used to create a competitive advantage, unless the retailer has exclusive distribution rights to a brand.)
question
One product strategy used by retailers to differentiate themselves from competitors is
answer
The use of private label brands.
(Many retailers have private label brands—their own brands of merchandise sold at prices below the prices of national brands.)
question
________ must always be aligned with other elements of a retailer's strategy to accurately define its image.
answer
Price.
(Price must always be aligned with the other elements of a retailer's strategy: product, promotion, and place. The general price range of a particular store helps define its image.)
question
For retailers, promotion refers to
answer
Both their in-store environment and their media communications.
(Retailers promote through the in-store environment (atmospherics) and media communications.)
question
Retailers use __________ to get customers into their stores.
answer
Mass media advertising.
(Mass media advertising is one technique retailers use to get customers into their stores. In-store promotions and specialty product displays might increase sales once a customer is in the store but are not helpful for getting them there.)
question
Kim wants to maximize sales to the customers who walk into her store. Of the following, Kim will most likely focus on
answer
In-store promotions.
(Billboards, outdoor ads, and mass media advertising can be helpful in getting customers into stores. To increase sales once a customer is in the store, in-store promotions are the best choice.)
question
__________ are subtle forms of promotion that encourage shopping in retailers' stores.
answer
Store credit cards and gift cards.
(Store credit cards and gift cards will encourage customers to spend in one store as opposed to another.)
question
Retailers' coupons, rebates, and online discounts are types of
answer
Pricing promotions.
(These are types of price promotions the retailer might offer.)
question
Unusual and exciting displays like Bass Pro Shops' climbing wall and stocked aquarium are examples of
answer
In-store promotions.
(Unique and unusual aspects of the store like lighting, furniture, scents, music, and special displays attract customers to a store and make the shopping experience more enjoyable.)
question
Many retail golf stores have driving ranges, some with backdrops showing famous golf courses. These driving ranges allow
answer
Customers to try before they buy.
(The ability to try before buying is a key advantage of brick-and-mortar retail stores.)
question
Henri wants customers in his specialty tobacco store to feel at home, as if they were in their personal smoking den. He uses lighting, music, and soft chairs to create a look and feel that will get customers to relax and return. Henri is focusing on
answer
Promotion.
(In addition to traditional forms of promotion, many retailers are devoting more resources to their overall retail environment as a means to promote and showcase what the store has to offer.)
question
Retailers in expensive resort areas often find it difficult to hire quality salespeople. In a situation like this, retailers should consider augmenting or even replacing the sales and customer service functions with
answer
In-store kiosks or self-checkout lanes.
(In some situations, technology can be used to augment or replace sales or customer service personnel—as with self-checkout lanes in grocery stores.)
question
Personal selling is particularly important for retailers selling
answer
Products that are complicated or expensive.
(Sales personnel are especially helpful for complex and/or expensive products, since the greater risk will lead customers to seek help.)
question
Which of the following retail stores would emphasize personal selling the most as part of the firm's promotional efforts?
answer
Jewelry store.
(Personal selling would be most important for a jewelry store, since its products can be expensive and buying precious stones (like diamonds) can be complex for a first-time buyer.)
question
The knowledge retailers can gain from their store personnel and customer relationship management databases is valuable for developing
answer
Increased customer loyalty.
(CRM databases collect information on customers, which can be used to identify the best customers and to increase customer loyalty.)
question
Retailers can gain valuable knowledge about their customers from the transaction process and from
answer
The insights of store personnel.
(Insights of store personnel can be a valuable source of customer information because these people have direct contact with customers.)
question
Traditionally, retailers treated all their customers ________, but today, successful retailers ________.
answer
Identically; provide more value to their best customers.
(Traditionally, before the advent of CRM programs, most retailers treated all customers the same. Today the most successful retailers concentrate on providing more value to their best customers.)
question
The percentage of a customer's purchases made from a particular retailer is referred to as
answer
Share of wallet.
(Share of wallet refers to the percentage of the customer's purchases made from that particular retailer.)
question
Benton manages a building supply company. He wants to invite twenty of his most valuable building-contractor customers to a golf outing and party. Benton will likely use the firm's ___________ to identify these customers.
answer
CRM database.
(CRM databases collect information on customers, which can be used to identify the best customers.)
question
Internet buyers are sometimes surprised to see online retailers using information about their past purchases to customize promotions targeted to them the next time they visit the retailer's website. The retailer is using the information to
answer
Increase the share of wallet from its best customers.
(Online retailers are using browsing and purchase behavior to customize promotions and recommendations, with the hope that customers will increase their spending with the retailer—in other words, increase their share of wallet.)
question
Retailers focusing on increasing sales to their best customers are attempting to
answer
Increase their share of wallet.
(Retailers hope that customers will increase their spending with the retailer—in other words, increase their share of wallet.)
question
Jordan directs her salespeople to increase their share of wallet. Jordan is directing her salespeople to
answer
Focus on increasing sales to their best customers.
(Increasing share of wallet means increasing spending with that retailer.)
question
For brick-and-mortar retailers, when making decisions regarding place, a key ingredient to success is
answer
Convenient locations.
(Location is an essential component of the marketing strategy for most retailers.)
Location, location, and location.
(Location is an essential component of the marketing strategy for most retailers.)
question
Because many consumers choose stores based on proximity to their workplaces or homes, great locations are
answer
A competitive advantage that few rivals can duplicate.
(Location is an essential component of the marketing strategy for most retailers.)
question
Benefits of the traditional retail store as a channel includes the ability to
answer
Provide personalized and meaningful product information.
(Personalizing product information and service, particularly when purchasing a complicated product, is a benefit of a traditional retail store.)
question
One advantage of a retail store that is NOT shared with an Internet channel is
answer
Accepting cash payments.
(Stores are the only channel that accepts cash payments. Some customers prefer to pay with cash because it is easy, resolves the transaction immediately, and does not result in potential interest payments.)
question
Janelle is shopping for a unique outfit for a benefit dinner dance. She wants it to sparkle and shine, but still feel light, silky, and comfortable. For the highest satisfaction, Janelle likely should
answer
Shop in traditional retail stores.
(Perhaps the greatest benefit offered by stores is the opportunity for customers to use all five of their senses—touch, smell, taste, vision, and hearing—to examine products.)
question
Although it is relatively easy to offer customers Internet options like a FAQ page and an e-mail address to answer questions, some companies are using an interactive approach to address customers' questions while they are visiting the websites. These firms are using ___________ to provide the customer with enhanced customer service.
answer
Online chats.
(Some vendors enhance customer service by offering online chats for customer service. Some of the other items listed (such as web videos and online games) may be offered, but they are not strictly aimed at enhancing customer service.)
question
Andy purchased a number of books from Amazon.com, and he learned to trust the recommendations made to him. More than once he was pleasantly surprised at the books and authors he discovered this way. In this case, Amazon.com was creating value for Andy through
answer
Personalized offerings.
(Amazon is creating a personalized offering for Andy, recommending books it thinks he might enjoy based on his past purchases and other interaction with the site.)
question
Mira purchased some eyeliner from an Internet-based beauty supply house, and now she often receives online recommendations for other products from the same cosmetics line. These recommendations were probably the result of
answer
The purchases she had made.
(The personalized offering created for Mira was probably based on her purchase history.)
question
__________ is the term used to describe the situation when retailers use some combination of stores, catalogs, and the Internet to sell merchandise.
answer
Multichannel retailing.
(This is the definition of multichannel retailing.)
question
One of the greatest constraints faced by store-based retailers—and one that the Internet channel can address—is
answer
The amount of merchandise that can be carried in a physical store.
(Store-based retailers have limitations in terms of the amount of merchandise they can carry in the space available. Websites are limited only by the size of their distribution centers, combined with their suppliers' ability to ship goods quickly.)
question
In which of the following categories would a dry cleaning business be placed?
answer
Services retailer.
(A services retailer is a firm that primarily sells a service rather than merchandise.)
question
When a company offers consumers the ability to make purchases via a smartphone, this is known as
answer
M-commerce.
(M-commerce (or mobile commerce) refers to the ability to purchase products through a mobile phone.)
question
Chandra owns a pet sitting service. He recently paid a web developer to build a special version of his company website for use on smartphones. Customers will now be able to easily place orders for pet sitting on their cell phones. This is an example of
answer
M-commerce.
(M-commerce (or mobile commerce) refers to the ability to purchase products through a mobile phone.)
question
Johan owns an oil-change business called Oil Only. He changes oil in cars—and that is all he does. What kind of retail business is this?
answer
Service retailer.
(A service retailer is a firm that primarily sells a service rather than merchandise.)
question
What is the primary function of a stock keeping unit (SKU)?
answer
An SKU represents a unique inventory item in a store.
(SKUs (stock keeping units) are used in supermarkets and some other stores to identify each unique inventory item that the store stocks. The small tag attached to a product referred to in one of the answer options is an RFID tag.)
question
Bertone's Office Supplies has decided to branch out from its existing stores. It plans to start sending out a catalog and to sell its products online. Bertone's is adopting:
answer
A multichannel strategy.
(A multichannel strategy is when a company uses multiple sales channels, such as stores, catalogs and the Internet.)
question
Bertone's Office Supplies has large stores resembling warehouse environments, with racks stocked from floor to ceiling with different types of office supplies. Its assortment of office supplies is the largest in town, and their prices are low. Bertone's is a(n)
answer
Category specialist.
(Category specialists offer a narrow but deep assortment of merchandise. Extreme value retailers sell at a low price, but have a more limited merchandise selection. An off-price retailer purchases excess merchandise from manufacturers and retailers and has an inconsistent merchandise selection. A full-line discount retailer would have a broader selection (i.e., more than just office supplies) than Bertone's does. A warehouse club is a large store offering a limited and irregular assortment of merchandise.)
question
Carol's Studio, located in a shopping mall, offers Zumba dance classes for all ages. Carol's Studio is known as a(n)
answer
Service retailer.
(A service retailer is a firm that primarily sells a service rather than merchandise.)
question
Which type of store is small and offers a limited merchandise assortment at very low prices?
answer
Extreme value retailers.
(Extreme value retailers are small, full-line discount stores that offer a limited merchandise assortment at a very low price.)
question
Which of the following strategies is designed to place products in as many outlets as possible?
answer
Intensive distribution.
(Intensive distribution is designed to have as many products in as many outlets as possible.)
question
Sophia could not afford expensive furnishings, but wanted a stylish home. After researching many options, she went to a local Target to purchase the trendy lamps, pillows, and art featured on its ads and website. As a consumer, which retailing challenge was Sophia likely responding to?
answer
Brand image consistency.
(Consumers desire a seamless experience when interacting with multichannel retailers. Therefore, retailers need to provide a consistent brand image across all channels.)
question
As a multichannel retailing operation matures, as in the case of Walmart, what tends to happen to its organizational structure?
answer
Operational integration of all channels.
(Consumers desire a seamless experience when interacting with multichannel retailers. To determine how much integration is best, each retailer must address issues such as integrated CRM, brand image, pricing, and the supply chain. As the multichannel operation matures, retailers tend to integrate all operations under one organization.)
question
In multichannel retailing, what visible element must often be adjusted because of competition faced in different channels?
answer
Pricing.
(Retailers with stores in multiple markets often set different prices for the same merchandise to compete better with local stores. However, customers expect pricing consistency for the same item across channels.)
question
How does a retail distribution center supporting a store channel most obviously differ from one supporting an Internet channel?
answer
In quantity of items shipped.
(Retail distribution centers (DCs) supporting a store channel are designed to ship many cartons of merchandise to stores. In contrast, the DCs supporting a catalog and Internet channel are designed to ship a few items to individual customers.)
question
Customers interacting with multichannel retailers most desire a(n) ________ experience
answer
Seamless.
(To determine how much integration is best, each retailer must address issues such as integrated CRM, brand image, pricing, and the supply chain to provide consumers with a seamless experience.determine how much integration is best, each retailer must address issues such as integrated CRM, brand image, pricing, and the supply chain to provide consumers with a seamless experience.)
question
When a manufacturer chooses one or more retailing partners, the overriding consideration must be
answer
The greatest possible customer convenience and satisfaction.
(Manufacturers undertake partnerships that create value by pulling together all the actions necessary for the greatest possible customer convenience and satisfaction.)
question
For consumers, shopping in a retail store instead of online offers the unique benefits of participating in a social experience and
answer
Obtaining immediate gratification.
(Stores have the advantage of allowing customers to get the merchandise immediately after paying for it.)
question
Annabeth is looking for a Michael Kors chronograph watch and assumes she can view and try them on at Macy's. She makes a special trip to the store to look at the watches and selects the style she likes best. Which aspect of choosing a retail partner allowed Annabeth to confidently shop for this item at a particular store?
answer
Customer expectations.
(Retailers should also know customer preferences regarding manufacturers. Manufacturers, in contrast, need to know where their target market customers expect to find their products and those of their competitors.)
question
Amber has developed a line of organic lotions and handmade soaps with unique, herb-based scents and a touch of bee balm. She plans to sell these products to the wealthy residents of a nearby resort town. Which level of distribution intensity is probably best for this product?
answer
Exclusive.
(Exclusive distribution can benefit manufacturers by assuring them that the most appropriate retailers represent their products. Amber can only produce the lotions and soaps in a limited quantity, so she also needs to limit their distribution.)
question
A customer who is shopping for fashionable but relatively low-cost merchandise in a pleasant environment is shopping at a
answer
Full-line discount store.
(Customers do not expect higher-end products in full-line discount stores. Rather, they are looking for value prices on these items and are willing to compromise on quality or cachet.)
question
A(n) ________ is a brand that is developed by a national brand vendor, often in conjunction with a retailer, and is sold exclusively by the retailer.
answer
Exclusive co-brand.
(Retailers often work together with their suppliers to develop an exclusive co-brand. An exclusive co-brand is a brand that is developed by a national brand vendor, often in conjunction with a retailer, and is sold exclusively by the retailer.)
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