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
Select one:
a. shift from a general merchandise retailer to a private-label retailer.
b. reward customer loyalty.
c. comply with Homeland Security requirements.
d. increase the share of wallet from its best customers.
e. create traffic in its brick-and-mortar stores.
answer
D
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
Which of the following strategies is designed to place products in as many outlets as possible?
Select one:
a. intensive distribution
b. selective distribution
c. surplus distribution
d. contractual distribution
e. exclusive distribution
answer
A
Intensive distribution is designed to have as many products in as many outlets as possible.
question
Compared to conventional supermarkets, warehouse clubs have
Select one:
a. slightly higher prices.
b. no products appealing to small businesses.
c. lower annual fees.
d. a lower level of service.
e. a broader assortment of food items.
answer
D
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
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
Select one:
a. the purchases she had made.
b. products she may have returned to the company.
c. purchases other customers had made that day.
d. manufacturer clearances and overruns.
e. items the retailer no longer carries.
answer
A
The personalized offering created for Mira was probably based on her purchase history.
question
Retailers focusing on increasing sales to their best customers are attempting to
Select one:
a. combat the inroads made by big-box specialty retailers.
b. drive their supply chain.
c. increase their share of wallet.
d. slay the category killers.
e. compete with off-price retailers.
answer
C
Retailers hope that customers will increase their spending with the retailer—in other words, increase their share of wallet.
question
__________ distribution intensity helps a seller to maintain a particular image and control the flow of merchandise into an area.
Select one:
a. Intensive
b. Collective
c. Endogenous
d. Selective
e. Variable
answer
D
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
Of the following retailers, the best example of a category killer is
Select one:
a. Costco.
b. Dollar General.
c. Staples.
d. Target.
e. Kohl's.
answer
C
Category killers are category specialists that offer a narrow but deep assortment of merchandise.
question
__________ are subtle forms of promotion that encourage shopping in retailers' stores.
Select one:
a. Electronic signs
b. Quick response and just-in-time delivery systems
c. Extreme value offers and specialty share of the wallet programs
d. Store credit cards and gift cards
e. Large stocks of popular national brands
answer
D
Store credit cards and gift cards will encourage customers to spend in one store as opposed to another.
question
The percentage of a customer's purchases made from a particular retailer is referred to as
Select one:
a. share of market.
b. share of wallet.
c. customer relationship management.
d. customer value ratio.
e. customer loyalty.
answer
B
Share of wallet refers to the percentage of the customer's purchases made from that particular retailer.
question
Distribution intensity is commonly divided into three levels:
Select one:
a. administered, vertical, and independent.
b. intensive, exclusive, and selective.
c. corporate, contractual, and independent.
d. global, national, and local.
e. primary, secondary, and tertiary.
answer
B
The three types of supply chain intensity are intensive, selective, and exclusive.
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