Deck 2: Building and Sustaining Relationships in Retailing

Question 1

Which of the following does not comprise a competitive advantage to a retailer?

A) a proposed retail strategy
B) an augmented retail strategy
C) an expected retail strategy
D) a potential retail strategy

Answer 1

C

Question 2

Partial,revolving payments are not permitted in a(n)________.

A) debit account
B) open credit account
C) revolving credit account
D) option credit account

Answer 2

B

Question 3

Just-in-time inventory management and electronic data interchange are examples of ________.

A) a value chain
B) channel conflict
C) seamless logistics management
D) direct store delivery

Answer 3

A

Question 4

A customer is billed monthly on the basis of his/her outstanding cumulative balance in a(n)________.

A) debit account
B) open credit account
C) revolving credit account
D) option credit account

Question 5

An ongoing relationship between all the parties that develop,produce,deliver,and sell particular goods and services is referred to as ________.

A) a value delivery system
B) channel cooperation
C) a channel partnership
D) vertical integration

Question 6

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

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

Question 7

A retailer can reward its best customers through ________.

A) everyday low pricing
B) manufacturer-sponsored coupons
C) customer loyalty programs
D) contests and sweepstakes

Question 8

A retailer's focus on satisfaction of existing customers through seeking to form and maintain long-term bonds with customers is referred to as ________.

A) commitment-based retailing
B) customer satisfaction
C) relationship retailing
D) SERVQUAL

Question 9

The minimum value chain elements a given customer segment expects from a type of retailer is a(n)________.

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

Question 10

All of the activities and processes that provide a certain value for the customer are referred to as ________.

A) a value chain
B) customer service
C) a value delivery system
D) relationship retailing

Question 11

The bundle of benefits offered to consumers through a channel of distribution is ________.

A) a value chain
B) customer service
C) a value delivery system
D) relationship retailing

Question 12

An important component of the value chain concept is ________.

A) the inevitability of channel conflict
B) dependency of each channel member on one another
C) the need for independence among channel members
D) the need to minimize total channel costs

Question 13

A clean store environment,adequate parking facilities,and standard return privileges constitute a(n)________.

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

Question 14

Which statement concerning a retailer's core customers is not correct?

A) A retailer's core customers are generally least price conscious.
B) A retailer's core customers should represent its target market.
C) A retailer's core customers deserve special treatment.
D) A retailer's core customers prefer long-term relationships.

Question 15

Activities that enhance the shopping experience and give retailers a competitive advantage are referred to as a(n)________.

A) customer loyalty program
B) potential customer service
C) expected customer service
D) augmented customer service

Question 16

A vital component of a customer loyalty program is ________.

A) restricted membership
B) new rules of participation
C) standardized letters to participants
D) a database to track consumer purchases

Question 17

A retailer seeks to maximize the profitability of its inventory assortment through ________.

A) efficient consumer response
B) category management
C) optimal space planning
D) everyday low pricing

Question 18

A unique strategy that no competing retailer in a given retail format has perfected constitutes a(n)________.

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

Question 19

The customer base,customer service,customer satisfaction,and loyalty programs and defection rates are components of ________.

A) the American Consumer Satisfaction Index (ACSI)
B) customer satisfaction
C) the marketing concept applied to retailing
D) relationship retailing

Question 20

A customer must pay his/her full bill when it is due in a(n)________.

A) debit account
B) open credit account
C) revolving credit account
D) option credit account

Question 21

Consumers have goods that they own repaired,maintained,or altered with ________ services.

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

Question 22

Which retail strategy does not provide a differential advantage to a consumer?

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

Question 23

Retailers can quickly complete customer transactions,amass sales data,and adjust inventory through ________.

A) electronic data interchange
B) data warehousing
C) computer-assisted ordering system
D) point-of-sale scanning equipment

Question 24

Airline travel is an example of a(n)________ service.

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

Question 25

Which statement concerning retail technology is not correct?

A) The roles of technology and humans must be clear and consistent with the objectives and style of a business.
B) Technology can be viewed as impersonal and cold by some consumers.
C) Consumers should be forced to use the most advanced technology as a means of cost control.
D) Customers now expect certain technological advances, such as feedback on product availability.

Question 26

Intangibility particularly affects ________ services.

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

Question 27

Tutoring is an example of a(n)________ service.

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

Question 28

The major difference between value and a value chain is that only ________.

A) value covers tangible benefits
B) value covers intangible benefits
C) the value chain relates to a channel of distribution
D) the value chain covers the total bundle of benefits received by consumers

Question 29

Which statement concerning value is not correct?

A) Value is based on shoppers' perceptions.
B) Value is based on perceived benefits received versus the price paid.
C) Value relates to tangible product dimensions.
D) A price-oriented shopper seeks low prices.

Question 30

The balancing of corporate citizenship with a fair level of profits for stockholders,management,and employees concerns ________.

A) social responsibility
B) ethics
C) the golden rule
D) consumerism

Question 31

A retailer bases its overall customer service strategy on providing a 7-day return policy,having sufficient quantities of advertised goods on hand,and well-lit parking areas.The retailer's retail strategy can be described as a(n)________.

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

Question 32

A "smart card" is a form of a(n)________.

A) open credit plan
B) layaway plan
C) electronic payment plan
D) revolving credit plan

Question 33

Inseparability for a service provider affects which element of a retail strategy?

A) the setting of a price
B) advertising the firm in a distinctive manner
C) accommodating demand in peak periods
D) the establishment of branch units

Question 34

"Revenues from an unrented hotel room are lost forever" refers to which characteristic of services?

A) the perishability of services
B) the variability of a service's quality
C) the inseparability of the producer from the service
D) the inseparability of the service from the service provider

Question 35

The activities of government,business,and other organizations to protect people from practices infringing upon their rights as consumers is ________.

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

Question 36

________ relates to the moral principles and values of a retailer.

A) Social responsibility
B) Ethics
C) The golden rule
D) Consumerism

Question 37

Electronic banking involves ________.

A) consumers being able to complete transactions any day, any hour at both bank and nonbank locations
B) weekly bank statements that reflect the past week's transactions
C) the use of a national debit transfer system
D) the use of a national credit reporting system

Question 38

Lawn care and house painting are examples of ________ services.

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

Question 39

Which return policy can be viewed as part of an augmented retail strategy?

A) 7-day return policy
B) 10-day return policy
C) exchanges allowable but no money-back guarantee
D) unconditional money-back guarantee

Question 40

The right to safety,information,choice,and to be heard directly concern ________.

A) social responsibility
B) ethics
C) the golden rule
D) consumerism

Question 41

A retailer seeking to minimize bad debts should utilize what type of credit?

A) revolving credit account
B) commercial credit card
C) option credit account
D) open credit account

Question 42

Which type of credit account does not allow a consumer to make a partial payment?

A) layaway plan
B) revolving credit account
C) open credit account
D) option credit account

Question 43

The optimal level of a value-oriented retail strategy is a(n)________.

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

Question 44

The purchase of a Toyota Camry hybrid car on the basis of a three-year loan is a goods-based transaction; the lease of a Toyota Camry hybrid car on the basis of a three-year lease is a(n)________.

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

Question 45

Relationship retailing can be distinguished from other retail strategies in that it stresses ________.

A) long-term relationships with existing customers
B) obtaining a constant stream of new customers
C) short-term relationships with both existing and new customers
D) short-term relationships with highly profitable customers

Question 46

An expected retail strategy for a ________ can be an augmented retail strategy for a(n)________.

A) costly specialty store; discount store
B) warehouse club; department store
C) shopping center; shopping district
D) chain store; independent retailer

Question 47

Instruction in home repair by home improvement centers is likely to reduce the demand for ________ services.

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

Question 48

In micromerchandising,retailers seek to match local assortments to the needs of the population that each store serves.Thus,a supermarket located near a college may feature dormitory supplies,while a store located in a family area may feature discounts on frozen foods.Micromerchandising is a form of ________.

A) value-oriented strategy
B) adaptation strategy
C) category management
D) consumerism

Question 49

A restaurant carefully trains its employees to give them discretion to correct a service-related problem.For example,a waiter can give a guest a free appetizer if the wait for a table is more than 15 minutes.This illustrates ________.

A) employee empowerment
B) an expected customer service
C) a potential customer service
D) lip service, not real service

Question 50

Low-cost financing available from manufacturers for purchases of capital goods may lower the overall demand for ________ services.

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

Question 51

The interdependency among all channel members is expressed ________.

A) in a value delivery system
B) in an independent vertical channel system
C) through vertical integration
D) in franchising

Question 52

Airline-based affinity credit cards that give consumers one airline mile for each $1 charged are an example of a ________.

A) retailer-generated credit card
B) customer loyalty program
C) debit card
D) smart card

Question 53

Which service most closely resembles goods-based retailing?

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

Question 54

To properly study customer defection rates,a retailer needs ________.

A) an experimental design
B) a competitive intelligence reporting system
C) a marketing information system
D) a customer database

Question 55

A customer loyalty program is part of ________.

A) relationship retailing
B) customer satisfaction
C) transactional retailing
D) revolving credit

Question 56

An advantage to a retailer's use of its individual retailer credit card over a bank-sponsored card is ________.

A) greater flexibility in extending credit
B) lower capital requirements
C) lower interest costs
D) lower bad debt costs

Question 57

A retailer develops a merchandise plan on the basis of classifying goods into substitutes or complements.This illustrates ________.

A) self-scanning
B) nongoods services
C) just-in-time inventory management
D) category management

Question 58

A regional airline found that its best 10 percent of customers accounted for 35 percent of its total revenues.These customers comprise the hotel's ________.

A) expected customers
B) niche customers
C) loyal customers
D) core customers

Question 59

Which statement concerning complaints is correct?

A) Most consumers complain when dissatisfied.
B) Complaining is relatively easy.
C) Marketers should make it more difficult for consumers to complain.
D) Most people feel complaining produces little or no positive results.

Question 60

Which service is the least tangible?

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

Question 61

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

A) giving a consumer advice newsletter to all customers
B) selling private label merchandise
C) sponsoring a consumer advisory panel
D) providing a money-back guarantee on all goods and services

Question 62

A good relationship retailing program requires a database to maintain the retailer's customer loyalty program and to determine defection rates.

Question 63

The statement "in the supermarket,lettuce wilts; in a Broadway show,the curtain goes up" refers to which characteristic of services?

A) the high variability in services
B) the inseparability of the services from its provider
C) low tangibility
D) inability to stockpile inventories

Question 64

Service retailers often seek to reduce the perishability of services through standardization.

Question 65

A retailer can encourage ethical behavior among its employees through the development and communication of a ________.

A) corporate mission statement
B) code of ethics
C) customer exchange policy
D) customer service standard

Question 66

A retailer has a consumer advisory committee which meets monthly with a vice-president of operations.The committee reflects which element of the consumer's bill of rights?

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

Question 67

Most electronic banking transactions are now through debit cards.

Question 68

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

A) providing an exchange policy on all goods and services
B) refusing to sell foods with any additive
C) nutritional labeling of all food products
D) engaging in systematic product testing programs

Question 69

There are no physical products in nongoods services.

Question 70

A major problem for a service retailer seeking to expand into new geographic markets is ________.

A) the high variability of services
B) the inseparability of the services from its provider
C) low tangibility
D) inability to stockpile inventories

Question 71

The major difference between social responsibility of retailers and consumerism is that ________.

A) consumerism is concerned with moral issues, while social responsibility is concerned with legal issues
B) social responsibility is concerned with moral issues, while consumerism is concerned with legal issues
C) social responsibility reflects an obligation to all parties (employees, the general public), whereas consumerism is concerned with the obligation to consumers
D) consumerism reflects an obligation to all parties (employees, the general public), whereas social responsibility is concerned with the obligation to consumers

Question 72

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

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

Question 73

The perishability of services prevents the shifting of services from low to high demand periods.

Question 74

A potential problem relating to scanning that is unique to the self-checkout system is ________.

A) consumer fraud
B) scanner error
C) employee training of how to use the scanner
D) need for special shopping bags

Question 75

An expected retail strategy involves a higher level of customer service than an augmented retail strategy.

Question 76

The service strategy process for services retailing is the same as for goods retailing.

Question 77

Relationship retailing is based on the building and maintenance of long-term relationships with profitable customers.

Question 78

Generally,consumers are more concerned with the results of a value chain,as opposed to the value chain process.

Question 79

Which of the following is a potential consumerism-related difficulty with a specialization merger?

A) A consumer's right to safety may be lessened.
B) A consumer's right to be heard may be lessened.
C) A consumer's right to choose may be lessened.
D) A consumer's right to be informed may be lessened.

Question 80

The value delivery system concept suggests that each channel member must retain its standard retail tasks.