Deck 2: Building and Sustaining Relationships in Retailing

Question 1

Which of the following is not a major advantage of the use of centralized customer service areas?

A)The salesperson is able to recommend alternative goods and services.
B)A common store policy is ensured.
C)The department can be placed in a space with little activity.
D)Specialized personnel can be used.

Answer 1

A

Question 2

A form of revolving credit is a(n)_____ credit account.

A)extended revolving
B)retailer-generated
C)open
D)option

Answer 2

D

Question 3

Allowing workers to have discretion to satisfy customers most closely illustrates _____.

A)relationship retailing
B)employee empowerment
C)a customer loyalty program
D)the retailing concept

Answer 3

B

Question 4

A retailer's customers who are most loyal and who have the highest average sales can be classified as its _____.

A)outshoppers
B)target market
C)primary customers
D)core customers

Question 5

Expected customer services _____.

A)are considered basic ingredients in the retail offering
B)complement a store's extended offering
C)are extra ingredients that add to the retail offering
D)are provided to customers free of charge

Question 6

In a revolving credit account,_____.

A)a customer is billed at the end of the month on the basis of the outstanding cumulative balance
B)no interest is assessed if a consumer pays part of the bill when it is due
C)a customer can exceed his/her credit limit
D)a customer must pay his/her bill in full when it becomes due

Question 7

A retailer can reinforce its competitive advantage by providing _____ services.

A)augmented customer
B)basic
C)ancillary customer
D)expected customer

Question 8

With an open payment credit account,_____.

A)a customer is billed at the end of the month on the basis of the outstanding balance
B)a consumer pays for a purchase in equal installments
C)a customer can exceed his/her credit limit
D)a customer must pay the bill in full when it becomes due

Question 9

The minimum value chain elements a given customer segment anticipates from a given type of retailer is referred as a(n)_____ retail strategy.

A)potential
B)realized
C)expected
D)augmented

Question 10

A(n)_____ retail strategy encompasses the extra elements in a value chain that differentiate one retailer from another.

A)potential
B)augmented
C)expected
D)realized

Question 11

No interest is assessed if the consumer pays his/her bill in full when it is due or a partial payment can be made in a(n)_____ credit account.

A)open
B)monthly
C)option
D)revolving

Question 12

Car rental and airplane travel are examples of _____ services.

A)regulated goods
B)owned-goods
C)nongoods
D)rented-goods

Question 13

Which statement concerning a value delivery system is not correct?

A)Each channel member is dependent on each other.
B)A value delivery system is as strong as its weakest link.
C)Value delivery systems are relatively simple to develop and administer.
D)Nonstore retailing requires a different delivery system than store-based retailing.

Question 14

A(n)_____ retail strategy encompasses value chain elements not yet perfected by any competing firm in a retailer's industry category.

A)potential
B)expected
C)augmented
D)realized

Question 15

Partial,revolving payments are not permitted in _____.

A)revolving credit accounts with a maximum credit limit
B)monthly payment credit accounts
C)open credit accounts
D)option credit accounts

Question 16

Which of the following is not an attribute of an effective customer loyalty program?

A)a program where participation rules frequently change
B)a reward that is appealing to customers
C)a data bank that tracks purchases and rewards eligibility
D)an award that is attainable in a reasonable time frame

Question 17

An advantage of a retailer-generated credit card is _____.

A)no bad debt or slow-payment problems
B)no need for credit checks
C)low startup costs
D)the encouragement of store loyalty

Question 18

A fundamental concept of the value chain is the _____.

A)interrelationship among manufacturer,wholesaler,and retailer
B)independence of all channel members
C)notion that value is interpreted similarly by all final consumers
D)notion that value is affected by price alone

Question 19

From the customer's perspective,value is based on _____.

A)perceptions
B)quality alone
C)retailer benefits alone
D)price alone

Question 20

Consumers lease physical products for a specified period of time with _____ services.

A)intangible
B)owned-goods
C)nongoods
D)rented-goods

Question 21

Physical products are not involved in which type of service?

A)repair services
B)nongoods services
C)rented-goods services
D)owned-goods services

Question 22

A retailer has a detailed labeling system on all toy products aimed at children less than 5 years old.This illustrates the right to _____.

A)be informed
B)redress
C)choose
D)service

Question 23

Which service attribute limits expansion possibilities for a service provider?

A)industrialization of services
B)intangibility
C)perishability
D)inseparability of the service from its provider

Question 24

Electronic banking involves _____.

A)end-of-month credit statements
B)the use of standardized credit systems on a national level
C)video-recording systems
D)the use of automatic teller machines and the instant processing of retail purchases

Question 25

Retailers practice relationship retailing with _____ customers.

A)nonregular
B)regular
C)core
D)former

Question 26

Which retail strategy is typically based on benchmarking from firms in other industries?

A)potential retail strategy
B)primary retail strategy
C)augmented retail strategy
D)expected retail strategy

Question 27

An example of perishability of a service is _____.

A)the inseparability of the producer from the service
B)the variability of a service's quality
C)that some services cannot be inventoried or stored
D)that the owner-operator is indispensable

Question 28

From a consumer's perspective,value is based on _____.

A)the perception of benefits received versus price paid
B)who performs each of the elements in a value chain
C)who performs the visible elements in a value chain
D)only the price paid

Question 29

The four consumer rights as stated by President Kennedy about 50 years ago are _____.

A)value,choice,safety,and to be heard
B)safety,information,choice,and to be heard
C)low prices,competition,return policy,and credit
D)information,choice,safety,and credit

Question 30

"The revenues from an unrented hotel room are forever lost." This statement refers to which characteristic of services?

A)intangibility
B)perishability
C)variability
D)inseparability

Question 31

Consumers have physical products that they possess repaired or altered with _____ services.

A)owned-goods
B)repair
C)rented-goods
D)nongoods

Question 32

A retailer can reduce labor costs associated with shopping-line waiting time through _____.

A)logistics management
B)mass customization
C)self-scanning
D)inventory scheduling

Question 33

A(n)_____ card contains an electronic strip that stores and modifies information as transactions take place.

A)smart
B)debit
C)credit
D)interactive

Question 34

Computer and auto repair are examples of _____ services.

A)nongoods
B)repair
C)owned-goods
D)rented-goods

Question 35

An example of an expected retail strategy for a new-car dealer is _____.

A)transportation to and from home during auto repair
B)warranty repair work conducted free-of-charge
C)coffee and danish served in a waiting room during auto repair
D)24-hour-a-day,7-day-a-week auto towing for customers

Question 36

Environmental issues are generally covered in _____.

A)social responsibility
B)consumer rights
C)ethics
D)consumerism

Question 37

Accounting and legal services are examples of _____ services.

A)proforma
B)rented-goods
C)nongoods
D)owned-goods

Question 38

The activities of government,business,and independent organizations designed to aid and protect shoppers involve _____.

A)advertising regulation
B)social responsibility
C)consumerism
D)a consumer orientation of business

Question 39

In an electronic debit payment plan,the purchase price _____.

A)must be paid by the consumer at the time the bill is received
B)must be paid by the consumer within 10 days of the time the bill is received
C)is immediately deducted from a consumer's bank account and transferred to a retailer's account
D)can be financed through many different payment plans

Question 40

Which retail strategy can be used by a retailer as a competitive advantage?

A)expected retail strategy
B)primary retail strategy
C)augmented retail strategy
D)secondary retail strategy

Question 41

A retailer offers a revolving credit account to its customers;interest is charged at 18 percent per year.If a customer buys $400 in merchandise in November and carries the total balance over for one month,how much must the customer remit to pay the account in full?

A)$400
B)$403
C)$406
D)$409

Question 42

Expected customer services are generally offered _____.

A)to all customers
B)free-of-charge
C)at a fee which enables the retailer to break even
D)at a fee which enables the retailer to earn a fair profit over the cost of the service

Question 43

Owned-goods service providers often receive competition from _____.

A)outshoppers
B)do-it-yourselfers
C)in-home shoppers
D)personalizing shoppers

Question 44

An advantage to a retailer's using retailer-generated credit cards is _____.

A)no bad debt
B)low retailer startup costs
C)the development of store loyalty
D)rapid cash flow

Question 45

Rewards,value-added benefits,and customer recognition are three complementary elements in _____.

A)relationship retailing
B)customer service
C)a service-based program
D)a customer loyalty program

Question 46

The distinction of whether a customer service is considered expected or augmented is based upon the _____.

A)degree of computerization
B)retailer size
C)cost of the service offered
D)target market served

Question 47

The type of service retailing that most closely resembles goods-based retailing involves _____ services.

A)professional
B)rented-goods
C)owned-goods
D)nongoods

Question 48

At the consumer's option,an option credit account can be either paid in full or be a _____.

A)layaway plan
B)deferred billing account
C)COD account
D)revolving credit account

Question 49

Which service quality attribute deals with lost revenues that cannot be recouped?

A)access
B)perishability
C)reliability
D)variability

Question 50

A retailer offers an option credit account to its customers;interest is charged at 15 percent per year.If a consumer buys $400 in merchandise on January 1 and receives the bill January 15,how much must the consumer remit to pay the account in full?

A)$400
B)$406
C)$403
D)$409

Question 51

A(n)_____ customer service to a full-service specialty shop would be a _____ customer service to a price-oriented discounter.

A)primary,secondary
B)primary,potential
C)expected,augmented
D)augmented,expected

Question 52

Which type of service is generally leased?

A)rented-goods service
B)owned-goods service
C)nongoods service
D)regulated-goods service

Question 53

Ease of entry is simplest for which service retailer type?

A)nongoods retailer
B)rental-goods retailer
C)retailer with extensive licensing requirements
D)leased goods retailer

Question 54

A value delivery system is based on _____.

A)outsourcing
B)cost minimization
C)a high degree of cooperation among all channel members
D)one channel member conducting all activities

Question 55

Which statement concerning customer satisfaction is not correct?

A)According to the American Customer Satisfaction Index,fast-food firms rate lowest among retailers in customer satisfaction.
B)Most shoppers complain when they are dissatisfied.
C)"Very satisfied" shoppers are much more likely to remain loyal than "satisfied" shoppers.
D)Customer expectations generally move upwards over time.

Question 56

Service quality can be standardized and made more efficient by _____.

A)greater dependence on the owner
B)automation
C)franchising
D)advertising

Question 57

The least tangible type of service is _____ services.

A)regulated goods
B)nongoods
C)owned-goods
D)rented-goods

Question 58

Which service quality attribute deals with the physical facilities of the service provider?

A)access
B)reliability
C)tangibles
D)communication

Question 59

A firm should seek to increase service tangibility by _____.

A)adding computers
B)utilizing only the services of the owner
C)offering warranties
D)matching demand and supply

Question 60

Variability in service quality can be reduced through _____.

A)standardizing services
B)development of branches
C)market research
D)warranties

Question 61

The major difference between consumerism and social responsibility is that consumerism is _____.

A)based on legal issues,whereas social responsibility is based on moral issues
B)based on moral issues,whereas social responsibility is based on legal issues
C)concerned with an obligation to all parties,whereas social responsibility reflects an obligation to final consumers
D)concerned with an obligation only to consumers,whereas social responsibility reflects an obligation to all parties

Question 62

The American Customer Satisfaction Index produces a measure of customer service quality based on surveys of consumers.

Question 63

A customer must pay the bill when it is due with a revolving credit account.

Question 64

A value chain consists of both tangible and intangible product and service offerings.

Question 65

A retailer can best implement a consumer's right to safety by _____.

A)selling foods with additives
B)age-labeling all toys
C)providing a money-back guarantee on all goods and services
D)nutritional labeling of all food products

Question 66

A major advantage to the use of point-of-sale scanning equipment by retailers is _____.

A)lower fixture investment costs
B)ease in consumer ability to read prices
C)compatibility of codes for supermarkets and department stores
D)better inventory control

Question 67

Expected customer services provide a competitive advantage to the retailer.

Question 68

The increased deregulation of industries should have a positive impact on which consumer right?

A)the right to safety
B)the right to be heard
C)the right to choose
D)the right to be informed

Question 69

An augmented retail strategy consists of the additional elements that differentiate one retailer from another.

Question 70

Employee empowerment is a central concept to improving customer service.

Question 71

The consumer's right to be informed by retailers is more difficult due to the increase in _____.

A)suburban branch locations
B)self-service
C)self-fulfillment
D)store hours

Question 72

Rented-goods service retailers require little or no inventories.

Question 73

A retailer can best implement a consumer's right to be informed by _____.

A)providing a money-back guarantee on all goods and services
B)utilizing per-unit pricing
C)monitoring store waiting lines
D)installing automatic teller machines

Question 74

The major difference between a typical credit account and a debit-only transfer system is that in the debit-only transfer system,_____.

A)interest is assessed from the billing date
B)the purchase price is immediately deducted from the consumer's bank account
C)no interest is charged if payment is made at the billing date
D)the consumer is billed monthly on the basis of the outstanding balance

Question 75

An important implication of the rise in electronic banking to retailers is the _____.

A)growth in national credit and debit cards
B)growth in banking from home
C)increase in collection responsibilities
D)increase in importance of retailer-generated credit cards

Question 76

A retailer can best implement a consumer's right to be heard by _____.

A)developing a consumer advisory council
B)selling private-label merchandise
C)expanding store hours
D)providing a money-back guarantee on all goods and services

Question 77

One impact of electronic banking for retailers is the increased opportunity for _____.

A)video-ordering systems
B)retailer-generated credit cards
C)generating increased store traffic
D)in-home banking

Question 78

All elements of the value chain are visible to shoppers.

Question 79

The best retailers in a given category have perfected potential retail strategies.

Question 80

The value chain only encompasses the retailer and the final consumer.