Question 1

The retail mix is a combination of merchandise,price,advertising and promotion,location,customer service and selling,and store layout and design that best serves the segments targeted by the retailer.

Accepted Answer

The statement accurately describes the concept of retail mix.

Question 2

"Are new firms entering or are existing firms leaving? What is the impact on us?" is an example of a "opportunity."

Accepted Answer

This is an example of an opportunity, as it presents the possibility for potential growth or competitive advantages for existing firms.

Question 3

A SWOT analysis is actually the retail industry's term for an accounting audit.

Accepted Answer

A SWOT analysis is a strategic planning tool used to identify an organization’s strengths, weaknesses, opportunities, and threats. It is not an accounting audit, which is a comprehensive review of an organization’s financial records and systems.

Question 4

The first step in strategic planning is to determine the firm's retail marketing strategy.

Accepted Answer

The first step in strategic planning is to analyze the current situation, including the internal and external environment, before determining the retail marketing strategy.

Question 5

A strategy is a carefully designed plan for achieving the retailer's goals and objectives.

Accepted Answer

A strategy is indeed a carefully designed plan that helps retailers achieve their goals and objectives. It involves analyzing the internal and external environment, identifying strengths and weaknesses, choosing target markets, determining the competitive advantage, and devising plans to achieve a sustainable competitive advantage. A good retail strategy also considers factors such as consumer behavior, market trends, technological advancements, and regulatory frameworks, among others, to ensure long-term success.

Question 6

The actions of supply chain members typically do not impact a retailer's strategy.

Accepted Answer

The actions of supply chain members, such as suppliers and distributors, can greatly impact a retailer's strategy as they can influence factors like product availability, quality, and pricing. Therefore, retailers need to work closely with their supply chain partners to ensure coordination and alignment of strategy.

Question 7

"Do competitors do a better job of selecting merchandise and anticipating demand?" is an example of a "weakness?"

Accepted Answer

This question implies that the company may not be as effective in selecting merchandise and anticipating demand as their competitors, which could be seen as a weakness.

Question 8

Strategies indicate how the retailer will attempt to accomplish its goals with the resources available.

Accepted Answer

This statement is true. Strategies are developed to define the approach a retailer will take in achieving their goals and objectives, taking into account the resources available to them.

Question 9

Target market refers to the group of consumers that a retailer is seeking to serve.

Accepted Answer

Target market refers to the specific group of consumers that a retailer is trying to reach and serve with their products or services. Retailers typically use demographic, psychographic, geographic, and behavioral factors to define and understand their target market.

Question 10

Many retailers think getting people to visit your website or your store is one of the easiest tasks in retailing.

Accepted Answer

Getting people to visit your website or store is not easy in retailing. It requires effective marketing, advertising, and promotions to attract customers and stand out among competitors. It also requires delivering a great customer experience to encourage repeat visits and positive word-of-mouth recommendations.

Question 11

Value proposition is the difference between the benefits offered by one retailer versus those of the competition.

Accepted Answer

Value proposition refers to the unique benefits and value that a business offers to its customers, which sets it apart from its competitors.

Question 12

A retailer only needs to consider its strengths and environmental opportunities when formulating a strategic plan.

Accepted Answer

A retailer should also consider its weaknesses and environmental threats when formulating a strategic plan. This is known as a SWOT analysis - evaluating the organization's strengths, weaknesses, opportunities, and threats. Focusing only on strengths and opportunities can lead to overlooking potential challenges and risks.

Question 13

Price promotions usually attract,and subsequently hold,customers.

Accepted Answer

Price promotions can attract customers initially, but they do not guarantee customer loyalty or retention in the long term. Customers attracted by low prices may switch to competitors for better deals, indicating that loyalty built on price alone is fragile.

Question 14

If a retailer makes efficient use of available resources,then the retailer is said to be operations effective.

Accepted Answer

This statement is true. Operations effectiveness involves maximizing productivity and efficiency of available resources to achieve business goals and objectives.

Question 15

Good strategies that reduce operating costs while providing the appropriate level of service present significant opportunities for retailers.

Accepted Answer

The statement is true. Effective cost management and service delivery are crucial for retailers to remain competitive in the market.

Question 16

Retail store managers often determine the location of their stores.

Accepted Answer

Retail store locations are typically determined by corporate real estate teams or executives, not individual store managers.

Question 17

If the customer will never be profitable because of size,location,or other demands,then that customer must be dropped.

Accepted Answer

If a customer will never be profitable, then it makes sense to drop them. This is because keeping unprofitable customers can drag down a business's overall profitability.

Question 18

A "retailer's conversion" refers to getting shoppers in your store and converting them into customers,at the lowest operating cost possible that is consistent with the level of service that your customers expect.

Accepted Answer

A retailer's conversion refers to the process of turning store visitors into paying customers, not specifically about operating costs or service levels.

Question 19

By assessing changing environmental forces,strategic planning opportunities can be found.

Accepted Answer

By assessing changing environmental forces, organizations can identify opportunities and threats, and use strategic planning to adapt and thrive in their market.

Question 20

Retailers typically can not control the environmental factors that may impact them.

Accepted Answer

Retailers often cannot control external environmental factors such as economic conditions, weather, or regulatory changes, which can significantly impact their operations and customer behavior.

Quiz 2: Retail Strategic Planning and Operations Management