Question 1

A prominent pizza chain opens its outlets in the best locations in the country to gain an advantage over its competitors and new brands entering the market.Which of the following elements of the marketing mix is being used by the firm to create its retail strategy?

Accepted Answer

The firm is focusing on the 'place' element of the marketing mix by choosing strategic locations for its outlets to gain a competitive advantage.

Question 2

The benefit offered by bricks-and-mortar retailers is:

Accepted Answer

Bricks-and-mortar retailers allow customers to pay with cash, which is not possible with online-only retailers.

Question 3

Risk reduction and social interaction are benefits associated with the:

Accepted Answer

The store channel provides the benefit of risk reduction as customers have the opportunity to physically see and touch the product before making a purchase. Additionally, social interaction is also a benefit as customers can receive immediate assistance from sales associates and potentially interact with other customers in the store. The other channels listed may provide convenience and accessibility, but do not necessarily offer the same level of risk reduction and social interaction as the store channel.

Question 4

Which of the following is a benefit offered to customers by the store channel?

Accepted Answer

The store channel offers instant gratification as customers can immediately purchase and take home items, unlike online shopping which requires waiting for delivery.

Question 5

An agreement between a manufacturer and retailer in which the manufacturer agrees to defray some advertising costs is called:

Accepted Answer

Cooperative advertising is an agreement between a manufacturer and retailer where the manufacturer agrees to share some of the advertising costs to promote their product. This helps both parties to share the cost of promoting the product which increases the chance of product visibility and an increase in sales.

Question 6

Sandra, a stay-at-home mom, is busy all day looking after her two toddlers.The only opportunity she gets to interact with adults is during her visits to the supermarket, which are a change from her daily routine.Which of the following retail channels would Sandra prefer to use for her shopping?

Accepted Answer

Sandra would prefer to shop in stores as it provides her an opportunity to interact with adults, which she doesn't get much of at home.

Question 7

Retailers that offer great value for money and provide convenient store layouts that make shopping faster and easier for customers are called:

Accepted Answer

Value retailers focus on offering products at low prices and providing a convenient shopping experience, which aligns with the description given.

Question 8

Which of the following refers to the percentage of a customer's purchases made from a particular retailer?

Accepted Answer

Share of wallet refers to the percentage of a customer's purchases made from a particular retailer.

Question 9

The benefit of touching and feeling merchandise when examining products is provided by the channel.

Accepted Answer

The correct answer is B: store. A store provides the benefit of touching and feeling merchandise when examining products.

Question 10

A kiosk offers:

Accepted Answer

The answer of A kiosk offers:
...

Question 11

Buy Easy is an electronics retailer that sells branded electronic goods.To increase sales, one laptop manufacturer enters an agreement to bear costs of advertising its products prominently at Buy Easy checkout counters.The marketing mix element that is being used to create Buy Easy's retail strategy is:

Accepted Answer

The marketing mix element being used in this scenario is promotion. The laptop manufacturer is bearing the costs of advertising its products prominently at Buy Easy checkout counters, which is a form of promotion.

Question 12

A cosmetics manufacturer helps its retailers to coordinate promotional activities for its products and has formed an agreement with retailers to share the advertising production and media costs.This agreement between manufacturers and retailers is known as:

Accepted Answer

The agreement between the cosmetics manufacturer and retailers to share advertising production and media costs is known as cooperative advertising. This allows both parties to benefit from increased exposure for the products through coordinated promotional activities.

Question 13

Brian is concerned about the security of online credit card transactions and always prefers to pay by cash.Which of the following retail channels is best suited for customers like Brian?

Accepted Answer

Stores allow customers like Brian to pay by cash in person, avoiding online transactions and potential security concerns.

Question 14

An electronics retail chain uses its customer information to select its best customers and targets its promotions at these customers.The retailer also provides personal service to these customers to increase the percentage of their purchases.The retailer is using this strategy on particular customers to increase the:

Accepted Answer

The retailer is focusing on increasing the percentage of purchases made by existing customers, which is referred to as increasing the "share of wallet."

Question 15

Toy Castle is a retail chain that sells a wide range of toys.During Christmas, it sells a special, limited edition collector's box, containing rare toys at a marginally higher value.Sales increase for this item as customers believe that they are really getting value for their money.Which of the following elements of the marketing mix is Toy Castle using to create its retail strategy?

Accepted Answer

Toy Castle is using the "price" element of the marketing mix by offering the limited edition collector's box at a marginally higher value, which creates a perception of value for money among customers.

Question 16

A key ingredient of success for retailers is:

Accepted Answer

Convenience is crucial for retailers as it enhances customer satisfaction and encourages repeat business by making shopping easier and more accessible.

Question 17

Which of the following is a benefit offered by kiosks?

Accepted Answer

The answer of Which of the following is a benefit...

Question 18

Access to wish lists, gift registries, and loyalty program information is a benefit offered by the channel.

Accepted Answer

The answer of Access to wish lists, gift registries, and...

Question 19

A shoe manufacturer producing sports shoes decides to sell its products in discount stores located near sports universities and stadiums.The element of the marketing mix being used to create the retail strategy in this example is:

Accepted Answer

The element of the marketing mix being used is "place" as it involves the distribution strategy of selling products in specific locations near sports universities and stadiums.

Question 20

An adventure sports products retailer tries a new sales strategy by installing a rock climbing facility within the retail outlet, giving customers an opportunity to try out ropes and grips before buying them.Which of the following elements of the marketing mix is being used by the retailer in this scenario?

Accepted Answer

The retailer is using "promotion" as part of the marketing mix by providing an experiential opportunity for customers to engage with the products, which can enhance interest and sales.

Quiz 13: Value Communication Integrated Marketing Communications