Deck 15: Appealing to the Customer: Retail Communication Mix

Question 1

Despite the difference in price,Drew would go out of his way to purchase a latte at Starbucks on his way to work,even though there were coffee houses within a block of his office.It can be said that Starbucks:

A) should probably lower their prices to avoid losing such a loyal customer
B) will put the competing coffee houses out of business
C) prices their beverages based on a cost-oriented method
D) has a strong brand loyalty from Drew
E) motivates its shoppers differently than other coffee houses

Answer 1

D

Question 2

Which of the following statements is true about brands?

A) Pita bread is a brand.
B) Dockers is a brand.
C) Convenience store is a brand.
D) Ice cream is a brand.
E) All of these are true.

Answer 2

B

Question 3

Which of the following is a brand that indicates to consumers the type of merchandise and services offered by the retailer?

A) Shoppers Drug Mart
B) PetSmart
C) Mark's Work Warehouse
D) Magic Cuts
E) All of these indicate types of merchandise or services offered by the retailer

Answer 3

E

Question 4

Andrea wants to build top-of-mind awareness for her costume shop.The best way for her to develop this awareness would be to:

A) partner with her vendors to bring great merchandise into the store
B) repeatedly expose customers to the name of the shop through advertising
C) offer better customer service and good publicity will naturally spread
D) teach costume design classes
E) develop the best inventory of costumes in the city

Question 5

Marginal analysis method of communication budget setting is based on:

A) Determining the specific tasks for accomplishing the communication objectives
B) The marketing principles of the product life cycle-and where your product/category is currently operating
C) Setting the communication budget as a fixed percentage of forecast sales
D) The economic principle that firms should increase communication expenditures so long as each additional dollar spent generates more than a dollar of additional contribution
E) None of these

Question 6

Which of the following is a brand association?

A) Honda Civic and Buick
B) Retail Council of Canada
C) Walmart's low prices
D) Professional Golf Association
E) Peoples annual report

Question 7

Which of the following are brand names?

A) McDonald's
B) Shoppers Drug Mart
C) Winners
D) Peoples
E) All of these are brands

Question 8

The value that brand image offers retailers is referred to as:

A) brand loyalty
B) brand position
C) product loyalty
D) brand equity
E) category awareness

Question 9

What do retailers need to do to develop a strong set of associations and a clearly defined brand image?

A) Keep their prices low
B) Offer the services the customer wants
C) Focus on specifics of the retail mix that directly affect the way the customer shops
D) Be consistent by portraying the same message to the customer over time and across all elements of the retail mix
E) Integrate the elements of the retail mix and fine tune which element creates the largest margins

Question 10

In order to build the brand equity of their private label merchandise,a retailer needs to:

A) lower the prices to give the new merchandise a chance against the competition
B) limit the amount of private label merchandise to make it more collectable
C) create a high level of brand awareness
D) partner with manufacturers to reduce distribution costs.
E) develop unfavorable associations for a competitor's private labels

Question 11

Which of the following programs help retailers deliver comprehensive and consistent messages to their customers?

A) CRM programs
B) Integrated marketing communication programs
C) Customer service programs
D) Interpersonal communication programs
E) Objective and task program

Question 12

To evaluate a trade promotional idea initiated by P&G,Loblaw's (the grocer)should NOT consider:

A) The realized margin from the promotion
B) The cost of the additional inventory carried due to buying more than the normal amount
C) The potential loss suffered when customers switch to the promoted merchandise from more profitable private-label brands
D) The additional sales made to customers attracted to the store by the promotion.
E) The retailer should actually consider all of these

Question 13

The Consumers' Association of Canada seeks to uphold all of the following rights except:

A) The right to be seen
B) The right to choice
C) The right to be informed
D) The right to safety
E) The right to be heard

Question 14

To effectively implement and evaluate a communication program:

A) objectives must be clearly stated in quantitative terms
B) the target audience needs to be defined
C) the degree of change expected needs to be defined
D) the time period over which change will be realized needs to be defined
E) all of these

Question 15

For most of the past century Sears enjoyed the success of Craftsman brand tools.Since Sears communicates the brand's durability through advertisements,performance,and guarantees,Craftsman is the leading brand of choice for consumers interested in purchasing tools.Which of the following statements best describes Sears' communication program?

A) Sears created and maintained a long-term communication program about the Craftsman brand
B) Sears created a short-term objective of increasing sales
C) Advertising alone was the strategy for Craftsman's success
D) Positive publicity single-handedly lifted Sears out of the marketing slump it had been experiencing for the past decade
E) None of these

Question 16

A communication objective would be used to:

A) increase store sales over the next seven or fewer days
B) increase store profits
C) make consumers aware of the store and its merchandise
D) reduce employee turnover by 10%
E) do all of these

Question 17

What is brand image?

A) A set of associations usually organized around meaningful themes
B) Anything linked to or connected with the brand name in a consumer's memory
C) The ability of a potential customer to recognize or recall that the brand name is a type of retailer or product/service
D) When consumers indicate they know the brand when the name is presented to them
E) A distinguishing name or symbol that identifies the products offered by a seller

Question 18

Why is it necessary for retailers to develop and implement a communication program?

A) To increase customer awareness of their Internet sites
B) To attract customers to their stores
C) To encourage customers to buy
D) To build appealing brand images
E) All of these

Question 19

Which of the following is a well-stated communication objective?

A) Increase sales by 10% over the next 12 months
B) Increase awareness in target market
C) Reduce customer complaint by 5%
D) Increase awareness by 15% in the next 6 months
E) All of these

Question 20

The "Roll up the Rim to Win" contest would be an example of a ______________ consumers have with Tim Hortons.

A) brand memory
B) brand association
C) brand awareness
D) brand exposure
E) brand recall

Question 21

Percy opened a store selling computer software and computer services.Of the advertising media available to him,which would be most effective for targeting his local trading area?

A) Internet
B) Radio
C) Television
D) Magazines
E) Newspapers

Question 22

Clara owns a popular women's boutique in a gentrified urban area.She carries women's career wear and an extensive selection of quality leather handbags.Recently,Clara noticed that her shoppers have high awareness of her apparel,but are surprised when they see the handbags.Since the handbags have high margins,she is concerned about the shoppers' surprised response.What should Clara do?

A) Clara should do nothing since the handbags are selling
B) Clara should place the handbags in the back of the store
C) Clara should allocate more of the communication budget to advertise the handbags in special ads
D) She should realize the passing fad of leather and provide less of an assortment
E) Clara should spend the same on each merchandise category her store carries in order to maximize the profits

Question 23

Barbie's Dry Cleaning has been in the neighborhood for a year.In that time,she has developed relationships with a few customers that are loyal to her store,but she wants to build this base.Which of the following media is effective in building reach?

A) Television
B) Radio
C) Outdoor Billboards
D) Yellow Pages
E) All of these

Question 24

Under the competitive parity method,the communication budget is set so that:

A) sales forecasts will not affect the budget
B) it resembles a fixed percentage of sales
C) the retailer's share of the communication expenses equals its share of the market
D) surplus cannot be allocated to other categories
E) retailers can exploit opportunities they confront in the market

Question 25

Which of the following communication methods do consumers believe to be the most credible?

A) Internet advertising
B) Print advertising
C) Personal selling
D) Sales promotions
E) Publicity

Question 26

Vicky's Lawn Service has been serving her community for several years.Recently Vicky realized her business offered some similar lawn services as her competitors,and some very different services,and was less expensive.Which of the following advertising media would work best if she wanted to convey this information to the community?

A) Television
B) Newspapers
C) Radio
D) Outdoor Billboards
E) Yellow Pages

Question 27

The Internet allows retailers to communicate with customers by:

A) banner ads
B) web sites
C) e-mail
D) affiliate programs
E) all of these

Question 28

Which of the following media would be more used mostly by national retailers?

A) Billboards
B) Newspapers
C) Radio
D) Yellow Pages
E) Magazines

Question 29

______________ refers to the number of potential customers in the retailer's target market that could be exposed to an ad in a given medium.

A) Reach
B) Cost
C) Impact
D) Coverage
E) Frequency

Question 30

Which of the following is not a method used to determine a communication budget?

A) Affordable method
B) Percentage of sales method
C) Objective-and-task method
D) Competitive parity method
E) Contribution analysis method

Question 31

Which of the following is not a factor in selecting media?

A) Coverage
B) Reach
C) Cost
D) Impact
E) Timing

Question 32

The owner of a jewelry store estimated advertising by all jewelry stores in the trading area as $4,000 His estimate for his store's market share was 35 percent.By using the competitive parity method,what is the jewelry store's communication budget?

A) $10,000
B) $4,000
C) $1,400
D) $1,500
E) $600

Question 33

A retailer's magazine advertising campaign builds an image of elegance and high fashion,yet the store's sales promotions emphasize low prices.Because of the inconsistencies,consumers are left confused about the retailer's image and tend to shop elsewhere.What can the store manager do to resolve the problem of inconsistency with the communication mix?

A) The manager can re-train associates to support the image of elegance and fashion
B) The manager can re-examine the elements of the mix that can be eliminated
C) The manager can develop an integrated marketing communication program
D) The manager can determine which communication program works best for her local market
E) The manager can imitate the communication programs of successful competitors

Question 34

__________________ occurs when consumers indicate they know the retail brand when the name has been presented to them

A) Top-of-mind awareness
B) Aided recall
C) Brand equity
D) Brand association
E) Brand energy

Question 35

Reginald manages a large antique mall housing 200 retailers.Up until a year ago,his advertising was limited to signage along the local highway.For the past year,he has been advertising in antique magazines and regional newspapers,in order to increase total sales in the mall.How should Reginald begin with evaluating the results of his advertising campaign?

A) Compare the sales of this year to prior years
B) Count patrons
C) Inquire with vendors about loyal customers
D) Survey customers about their awareness of antique malls
E) All of these

Question 36

Luke was interested in developing a communication budget for his holistic vitamin shop which he will be opening in thirty days.He is planning an opening sale event,and will advertise through local newspapers.With the available information,the method would be best for Luke to use in developing his communication program is:

A) objective and task method
B) affordable method
C) percentage of sales method
D) competitive parity method
E) marginal analysis method

Question 37

Recently,Sears spent much of its communication budget advertising the "Softer Side of Sears" campaign since it felt the customer knew very little of Sears' apparel assortments,and there would be a substantial return from advertising apparel versus advertising the more well-known appliances.What principle for budget allocation was Sears probably using?

A) Percentage of sales method
B) Competitive parity method
C) Affordable method
D) High-assay principle
E) Objective-and-task method

Question 38

The term ___________________ refers to an advertisement's effect on its target audience.

A) reach
B) impact
C) coverage
D) cumulative reach
E) cost per thousand

Question 39

Publicity is often used to communicate with:

A) investors
B) employees
C) potential shoppers
D) loyal shoppers
E) all of these

Question 40

Advertising media are compared by using:

A) reach
B) impact
C) coverage
D) cumulative reach
E) cost per thousand

Question 41

A(n)_________________ is a set of associations that are usually organized around some meaningful themes.

Question 42

A(n)________________ is a combination magazine and catalogue.

Question 43

Retailers use several methods to set communication budgets including (list 5 methods): ______________,____________________,__________________________,______________________,and ______________________.

Question 44

___________________ is the ability of a potential customer to recognize or recall that the brand name is a type of retailer or product/service.

Question 45

Levi's,Dell,and CCM are examples of _________.

Question 46

To develop a strong set of associations and a clearly defined brand image,retailers need to be __________________ in portraying the same message to customers over time and across all of the elements of their retail mix.

Question 47

Anything linked to or connected with the brand name in a consumer's memory is called a ______________________.

Question 48

_____________ offer a discount on the price of specific items when they are purchased at a store.

Question 49

Retailers communicate with their customers at no cost through _______________.

Question 50

A measure used to compare the value of advertising media is ________________.

Question 51

An example of a(n)________________________ could include the relationship of coffee or the "roll up the rim to win" promotion with Tim Hortons.

Question 52

When customers indicate they know the brand when the name is presented to them,it is called ___________________.

Question 53

The actual number of customers in a target market exposed to an advertising medium is called ___________.

Question 54

When a customer is asked about retailers that sell vacuum cleaners and she responds with "Sears," it can be said that Sears has __________________________.

Question 55

QR codes are:

A) Quality restrictions placed on exporters of goods originating in third world countries
B) Imbedded in smart phones and works in tandem with RFID and CSIS technologies
C) Intended to be scanned by in store security to reduce employee theft
D) Quantity revisions sent by head office to reduce inventory gaps occurring on "fad" type merchandise
E) Intended to be scanned by the camera on a mobile phone, providing for fast transfer of information

Question 56

Which of the following is not true about co-op advertising?

A) A conflict in goals between a retailer and vendor can reduce the effectiveness of co-op ads.
B) Co-op ads is a promotional program that sees a vendor and retailer working together.
C) Co-op rates paid to retailers are established by strict government regulations.
D) The vendor pays for part of the retailer's ad - but dictates some conditions.
E) Co-op ads tend to blur the distinction between retailers.

Question 57

Building awareness is the first step in developing ___________________.

Question 58

Direct marketing includes all of the following,except:

A) Direct mail
B) E-mail
C) Mobile marketing
D) YouTube
E) Catalogue delivered directly to a consumer

Question 59

The value that brand image offers retailers is referred to as ________________.

Question 60

____________________ are effective for generating short-term interest among consumers,but they are not useful for building long-term loyalty.

Question 61

Why is marginal analysis not widely used for setting the communication budget?

Question 62

How does a strong brand image enable retailers to increase their margins?

Question 63

Why is marginal analysis the most economically correct method for setting communication budgets?

Question 64

The most flexible communication method is ____________.

Question 65

What is the major disadvantage associated with using the competitive parity method of determining a retail communication budget?

Question 66

What are the four steps in the retail communication process?

Question 67

Why is it necessary for retailers to develop and implement a communication program?

Question 68

Under the ______________________ method,the communication budget is set so that the retailer's share of communication expense is equal to its share of the market.

Question 69

Why do retailers establish objectives for communication programs?

Question 70

Allocating the budget to merchandise areas that will yield the greatest return is referred to as the ___________________________.

Question 71

How can having strong brands benefit a retailer?

Question 72

___________________ is based in the economic principle that firms should increase communication expenditures so long as each additional dollar spent generates more than a dollar of additional contribution.

Question 73

Why is it problematic for retailers to spend about the same on communication programs for each geographic region?

Question 74

What are the long-term and short term effects of communication programs?

Question 75

What is a brand?

Question 76

What are the disadvantages associated with using the percentage-of-sales method for establishing a retail communication budget?

Question 77

What can a retailer do to build the brand equity of its firm or private label merchandise?

Question 78

How can brands benefit the consumer?

Question 79

Who would be in the target audience for publicity generated when a hobby store donated $1,000 in art supplies to a local school system?

Question 80

___________________ is the number of times a potential customer is exposed to a retailer's ad.