Question 1

Sally's LLC, a local supermarket, has all of the following characteristics. Which of the following characteristics of Sally's is most likely to be a more sustainable competitive advantage?

Accepted Answer

A shared system with vendors is a sustainable competitive advantage that is hard to replicate.

Question 2

Why should a retailer be concerned with building a sustainable competitive advantage?

Accepted Answer

Establishing a sustainable competitive advantage means that the retailer, in effect, builds a wall around its battle position-that is, around its present and potential customers and its competition. When the wall is high, it will be hard for external competitors (i.e., retailers operating in other markets or entrepreneurs) to scale the wall and enter the market to compete for the retailer's target customers.

Question 3

Tara gets her oil changed only at Tires Plus Inc. This commitment to Tires Plus Inc. illustrates

Accepted Answer

Customer loyalty is evident when customers are committed to buying merchandise and services from a particular retailer.

Question 4

Customers who shop at Books-A-Million find that it has a large selection of books, in addition to a helpful and friendly staff. Furthermore, they can enjoy a peaceful place to read while sipping a cappuccino at its in-store Joe Muggs Café. This intimate perception of the store indicates its ________ strategy.

Accepted Answer

Positioning refers to the image that the customer has of the store relative to its competitors.

Question 5

________ is the design and implementation of a retail mix in order to create an image of the retailer within the customer's mind relative to its competitors.

Accepted Answer

Positioning is the design and implementation of a retail mix in order to create an image of the retailer within the customer's mind relative to its competitors.

Question 6

Forester, a jewelry store, has developed a sustainable competitive advantage. Which of the following characteristics of Forester is most likely to be the reason for this advantage?

Accepted Answer

Training knowledgeable and helpful salespeople is a sustainable competitive advantage that is hard to replicate.

Question 7

Myra wanted to purchase a vase as a wedding gift. Pier 1 Imports offers a better assortment and slightly lower prices, but she immediately went to her local gift shop instead of Pier 1 Imports. This is an example of

Accepted Answer

Customer loyalty means that customers are committed to buying merchandise and services from a particular retailer. Loyalty means that customers will be reluctant to switch and patronize a competitive retailer.

Question 8

Positioning is the process of

Accepted Answer

A retailer's brand image reflects its positioning strategy. Positioning is the design and implementation of a retail mix to create an image of the retailer in the customer's mind relative to its competitors.

Question 9

Which of the following characteristics is most likely to be the least sustainable competitive advantage?

Accepted Answer

Having more sales promotions is the least sustainable competitive advantage compared to the other options.

Question 10

Wendy's has established itself in the fast food market as one of the top five restaurants in the city. Customers frequent Wendy's because of the impeccable quality of food associated with it. Which of the following is most likely to be the reason for Wendy's sustainable competitive advantage?

Accepted Answer

Customers frequent Wendy's because of the impeccable quality of food associated with its name. Hence, the brand image is the sustainable competitive advantage.

Question 11

Establishing a sustainable competitive advantage is the key to ________ performance.

Accepted Answer

Establishing a sustainable competitive advantage is the key to long-term financial performance.

Question 12

________ are developed such that the distance between two retailers' positions on the map indicates how similar those stores appear, according to consumers.

Accepted Answer

Perceptual maps are developed such that the distance between two retailers' positions on the map indicates how similar the stores appear, according to consumers. A perceptual map is frequently used to represent the customer's image and preferences for retailers.

Question 13

After selecting a target market and a retail mix, the final element in a retail strategy is the retailer's approach to

Accepted Answer

After selecting a target market and a retail mix, the final element in a retail strategy is the retailer's approach to building a sustainable competitive advantage.

Question 14

Which of the following characteristics is most likely to be the more sustainable competitive advantage?

Accepted Answer

The ability to get scarce merchandise is the most sustainable competitive advantage compared to the other options.

Question 15

In perceptual maps, retailers that are closer to an ideal point are evaluated

Accepted Answer

In perceptual maps, retailers that are closer to an ideal point are evaluated more favorably by the consumers in the segment than are retailers located farther away.

Question 16

My Favorite Quilt Shop offers members of their Fabric Lovers Club merchandise worth $20 for every $200 they purchase plus additional discounts on classes and new fabric lines. The Fabric Lovers Club is a good way to develop

Accepted Answer

Customer loyalty is evident when customers are committed to buying merchandise and services from a particular retailer.

Question 17

Which of the following characteristics of a footwear store would most likely be its least sustainable competitive advantage?

Accepted Answer

Lowering prices can easily be replicated, and hence, it is not a sustainable competitive advantage.

Question 18

Although Rosa visits several retailers when shopping for suits, she always buys suits at Bow and Arrow Inc. Which of the following approaches best demonstrates her affinity for Bow and Arrow Inc.?

Accepted Answer

Customer loyalty is evident when customers are committed to buying merchandise and services from a particular retailer.

Question 19

John plans to start a grocery store in his locality. Which of the following is most likely to give him the least sustainable competitive advantage in the market?

Accepted Answer

Recruiting more employees can easily be replicated, and hence, it is not a sustainable competitive advantage.

Question 20

Retailers can foster customer loyalty by

Accepted Answer

Approaches for developing customer loyalty include building a strong brand image, creating a unique positioning in the target market, offering unique merchandise, providing excellent customer service, implementing a customer relationship management program, and building a retail community.

Quiz 5: Retail Market Strategy

Sally's LLC, a local supermarket, has all of the following characteristics. Which of the following characteristics of Sally's is most likely to be a more sustainable competitive advantage?

Why should a retailer be concerned with building a sustainable competitive advantage?

Tara gets her oil changed only at Tires Plus Inc. This commitment to Tires Plus Inc. illustrates

________ is the design and implementation of a retail mix in order to create an image of the retailer within the customer's mind relative to its competitors.

Forester, a jewelry store, has developed a sustainable competitive advantage. Which of the following characteristics of Forester is most likely to be the reason for this advantage?

Myra wanted to purchase a vase as a wedding gift. Pier 1 Imports offers a better assortment and slightly lower prices, but she immediately went to her local gift shop instead of Pier 1 Imports. This is an example of

Positioning is the process of

Which of the following characteristics is most likely to be the least sustainable competitive advantage?

Wendy's has established itself in the fast food market as one of the top five restaurants in the city. Customers frequent Wendy's because of the impeccable quality of food associated with it. Which of the following is most likely to be the reason for Wendy's sustainable competitive advantage?

Establishing a sustainable competitive advantage is the key to ________ performance.

________ are developed such that the distance between two retailers' positions on the map indicates how similar those stores appear, according to consumers.

After selecting a target market and a retail mix, the final element in a retail strategy is the retailer's approach to

Which of the following characteristics is most likely to be the more sustainable competitive advantage?

In perceptual maps, retailers that are closer to an ideal point are evaluated

My Favorite Quilt Shop offers members of their Fabric Lovers Club merchandise worth $20 for every $200 they purchase plus additional discounts on classes and new fabric lines. The Fabric Lovers Club is a good way to develop

Which of the following characteristics of a footwear store would most likely be its least sustainable competitive advantage?

Although Rosa visits several retailers when shopping for suits, she always buys suits at Bow and Arrow Inc. Which of the following approaches best demonstrates her affinity for Bow and Arrow Inc.?

John plans to start a grocery store in his locality. Which of the following is most likely to give him the least sustainable competitive advantage in the market?

Retailers can foster customer loyalty by