Deck 15: Appealing to the Customer: Retail Communication Mix

Question 1

A communication objective would be used to:

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

Answer 1

D

Question 2

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) The economic principle that firms should increase communication expenditures so long as each additional dollar spent generates more than a dollar of additional contribution
D) Setting the communication budget as a fixed percentage of forecast sales
E) None of these

Answer 2

C

Question 3

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

Answer 3

D

Question 4

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

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

Question 5

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

A) Focus on specifics of the retail mix that directly affect the way the customer shops
B) Keep their prices low
C) Offer the services the customer wants
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 6

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

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

Question 7

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) When consumers indicate they know the brand when the name is presented to them
D) The ability of a potential customer to recognize or recall that the brand name is a type of retailer or product/service
E) A distinguishing name or symbol that identifies the products offered by a seller

Question 8

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

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

Question 9

To effectively implement and evaluate a communication program:

A) the target audience needs to be defined
B) objectives must be clearly stated in quantitative terms
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 10

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

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

Question 11

Which of the following are brand names?

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

Question 12

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

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

Question 13

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

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

Question 14

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

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

Question 15

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

Question 16

Which of the following statements is true about brands?

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

Question 17

Which of the following is a brand association?

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

Question 18

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

Question 19

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

Question 20

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

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

Question 21

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

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

Question 22

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

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

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

Question 24

The Internet allows retailers to communicate with customers by:

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

Question 25

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

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

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

Question 27

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

Question 28

The term

A) reach refers to an advertisement's effect on its target audience.
B) cumulative reach
C) cost per thousand
D) impact
E) coverage

Question 29

Publicity is often used to communicate with:

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

Question 30

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

Question 31

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

Question 32

QR codes are:

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

Question 33

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

Question 34

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

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

Question 35

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

Question 36

Advertising media are compared by using:

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

Question 37

Direct marketing includes all of the following, except:

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

Question 38

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 allocate more of the communication budget to advertise the handbags in special ads
B) Clara should do nothing since the handbags are selling
C) Clara should place the handbags in the back of the store
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 39

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

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

Question 40

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

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

Question 41

What is the problem with using sales promotions as the only way of communicating with the customer?

Question 42

What are the four steps in the retail communication process?

Question 43

Why do retailers establish objectives for communication programs?

Question 44

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

Question 45

What is the benefit of extending a successful brand name to a new concept?

Question 46

What medium do retailers use for image advertising because the reproduction quality is high?

Question 47

What is a brand?

Question 48

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

Question 49

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

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

Question 50

What are the most common associations retailers develop with their brand name?

Question 51

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

Question 52

How can brands benefit the consumer?

Question 53

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 54

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

Question 55

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

Question 56

How can having strong brands benefit a retailer?

Question 57

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

Question 58

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

Question 59

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

Question 60

How can retailers build top-of-mind awareness?

Question 61

In advertising, what do we mean when we use the word, "impact"?

Question 62

What is the objective and task method?

Question 63

How can frequency for Internet advertising be assessed?

Question 64

What are four ways retailers can use websites?

Question 65

What is based on 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 66

What is the advantage of using either the affordable method or the percentage-of-sales method for setting retail communication budgets?

Question 67

If the communication objective were to increase lunch-hour shopping, a store manager could
determine his or her communication budget by determining what tactics to use to reach this goal and the costs involved in implementing these tactics. Which method of establishing a retail
communication budget would the store manager be using?

Question 68

Why is it difficult for managers to do a marginal analysis?

Question 69

Why are publicity and word-of-mouth more credible than information in paid communication sources?