Question 1

Which of the following would NOT be an effective way for a jewelry store to develop a sustainable competitive advantage?

Accepted Answer

Selling merchandise at lower prices can be easily replicated.

Question 2

How could a fitness center develop a sustainable competitive advantage over a national chain like Gold's Gym?

Accepted Answer

Develop relationships with members offering unique work-out programs with assigned instructors recommending specific routines to suit their needs is the only advantage difficult to replicate by competitors.

Question 3

__________ 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

This is the definition of positioning.

Question 4

A department store can foster customer loyalty through:

Accepted Answer

Customer loyalty can be fostered when customers feel that the store cares more about them than what their competitors do.

Question 5

A dry cleaner can develop a sustainable competitive advantage by all of these EXCEPT:

Accepted Answer

All of the choices describe ways to develop a long-term relationship with the customer that could be difficult for competitors to initially copy EXCEPT for lowering prices.Matching those lowered prices would be easy for a competitor to copy.

Question 6

Although Rosa considers several retailers when shopping for suits,she always buys suits at Bloomingdales given that their customer service is second to none.Her affinity for Bloomingdales best demonstrates which of the following?

Accepted Answer

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

Question 7

Which of the following is NOT an opportunity for a retailer to develop a sustainable competitive advantage?

Accepted Answer

Selling merchandise at lower prices can be easily replicated.

Question 8

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 the 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.

Question 9

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 and passed the Pier 1.This example is an example of:

Accepted Answer

Customer loyalty can be fostered when customers feel that the store cares more about them than what their competitors do.

Question 10

Which of the following is NOT true in describing positioning?

Accepted Answer

The retailer reinforces its image with the targeted market through merchandise and service.

Question 11

Which of the following is an area in which a retailer can develop a long-term competitive advantage?

Accepted Answer

Relationships with vendors that are developed over a long period of time may not be easily offset by competition.

Question 12

How can a small town quilting supply store compete against Walmart,and still thrive?

Accepted Answer

Customer loyalty can be fostered by offering classes to customers;this is something that cannot be easily replicated by its competitors.Walmart already has lower prices and is open 24 hours,so the shop needs to find a way to compete.

Question 13

Which of the following is a group of consumers with similar needs,as well as a group of retailers using a similar format to satisfy those consumers' needs?

Accepted Answer

This is the definition of a retail market.

Question 14

Retailers can foster customer loyalty by:

Accepted Answer

There are many ways to build customer loyalty;providing good customer service is the only option here.

Question 15

Which of the following is an opportunity for retailers to develop a sustainable competitive advantage?

Accepted Answer

The only option for building a long term advantage is good customer service as the other choices are easily replicated by competitors.

Question 16

Positioning is the process of:

Accepted Answer

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 competitor's results in creating and supporting a clear and distinct image of the retailer.

Question 17

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

Accepted Answer

The retailer with building a sustainable competitive advance can metaphorically build a wall around its position making it hard for its competitors to enter the market and take away the target customers;all of which results in long-term profitability.

Question 18

A management orientation that focuses a retailer on determining its target market's needs and satisfying those needs more effectively than its competitors is called:

Accepted Answer

This is the definition for retailing concept.

Question 19

My Favorite Quilt Shop offers members of their Fabric Lovers Club $20 in merchandise 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 when customers are committed to buying merchandise and services from a particular retailer.

Question 20

Even though there are several garages in town,Tara gets her oil changed only at Tires Plus.This commitment to Tires Plus illustrates:

Accepted Answer