Question 1

Jordan directs her salespeople to increase the company's share of wallet. Jordan is directing her salespeople to
A) focus on increasing sales to their best customers.
B) focus on male consumers, and not female consumers.
C) sell more store brands and fewer private-label products.
D) become omnichannel salespeople.
E) expand retailing elasticity.

Accepted Answer

Share of wallet refers to the percentage of a customer's total spending in a category that goes to a particular brand or retailer. Therefore, increasing the company's share of wallet involves focusing on increasing sales to existing customers, particularly the best ones who have the highest potential for spending more with the company.

Question 2

The percentage of a customer's purchases made from a particular retailer is referred to as
A) share of wallet.
B) share of market.
C) customer loyalty.
D) customer relationship management.
E) customer value ratio.

Accepted Answer

Share of wallet refers to the percentage of a customer's purchases that are made from a particular retailer. Share of market is the percentage of total sales in a given market that a company holds. Customer loyalty refers to a customer's willingness to continue doing business with a company. Customer relationship management is a strategy for managing a company's interactions with customers. Customer value ratio is not a commonly used term in marketing.

Question 3

The knowledge retailers can gain from their store personnel and customer relationship management databases is valuable for developing
A) supply chain relationships.
B) extreme value retailing efforts.
C) increased customer loyalty.
D) global private-label brands.
E) omnichannel retailing.

Accepted Answer

Knowledge gained from store personnel and CRM databases can be used to enhance customer loyalty by better understanding and meeting their needs and preferences.

Question 4

When a company offers consumers the ability to make purchases via a smartphone, this is known as
A) M-commerce.
B) smart retailing.
C) cell selling.
D) P-commerce.
E) channel expansion.

Accepted Answer

Offering consumers the ability to make purchases via a smartphone is known as m-commerce, or mobile commerce.

Question 5

Mira purchased some eyeliner from an Internet-based beauty supply house, and now she often receives online recommendations for other products from the same cosmetics line. These recommendations were probably the result of
A) the purchases she had made.
B) purchases other customers had made that day.
C) manufacturer clearances and overruns.
D) products she may have returned to the company.
E) items the retailer no longer carries.

Accepted Answer

The recommendations were likely based on the purchases Mira had made, as online retailers often use past purchase history to suggest related products to customers.

Question 6

As the old cliché claims, the three most important things in retailing are
A) size, location, and convenience.
B) price, promotion, and place.
C) location, location, location.
D) price, price, price.
E) before, during, and after the sale.

Accepted Answer

The phrase "location, location, location" emphasizes the importance of a store's physical location and how it can greatly impact its success.

Question 7

Omnichannel retailers use consumer information collected from the customers' Internet browsing and buying behavior to send dedicated e-mails to customers promoting specific products or services in an effort to
A) slay the category killers.
B) compete with off-price retailers.
C) drive their supply chain.
D) increase their share of wallet.
E) combat the inroads made by big-box specialty retailers.

Accepted Answer

Omnichannel retailers use consumer information to send targeted promotions to customers with the goal of increasing their share of wallet, meaning they want customers to spend more money with them and not their competitors.

Question 8

Which of the following retail stores would emphasize personal selling the most as part of the firm's promotional efforts?
A) jewelry store
B) convenience store
C) liquor store
D) secondhand clothing store
E) bakery

Accepted Answer

Jewelry is a high-end and expensive item that requires a lot of personal attention and explanation. Therefore, a jewelry store would emphasize personal selling the most as part of its promotional efforts.

Question 9

Benton manages a building supply company. He wants to invite 20 of his most valuable building-contractor customers to a golf outing and party. Benton will likely use the firm's ________ to identify these customers.
A) website
B) CRM database
C) specialty store sales
D) annual sales report
E) inventory management system

Accepted Answer

Benton will likely use the firm's CRM (Customer Relationship Management) database to identify his most valuable building-contractor customers. A CRM database will allow him to track and analyze customer interactions and behaviors, such as purchases, communication, and history. It can help identify which customers are the most profitable, loyal, and engaged. The database can then be used to segment customers and target specific groups for marketing and retention efforts, such as the golf outing and party for the top 20 customers.

Question 10

________ is the term used to describe the situation when retailers use some combination of stores, catalogs, and the Internet to sell merchandise.
A) Vertical channel integration
B) Cross-channel leverage
C) Horizontal channel integration
D) Omnichannel retailing
E) Opportunistic retailing

Accepted Answer

The term used to describe the situation when retailers use some combination of stores, catalogs, and the Internet to sell merchandise is known as omnichannel retailing. This involves creating a seamless shopping experience for the customer, allowing them to research, browse, and purchase products across multiple channels.

Question 11

Internet buyers are sometimes surprised to see online retailers using information about their past purchases to customize promotions targeted to them the next time they visit the retailer's website. The retailer is using the information to
A) comply with Homeland Security requirements.
B) shift from a general merchandise retailer to a private-label retailer.
C) increase the share of wallet from their best customers.
D) create traffic in their brick-and-mortar stores.
E) reward customer loyalty.

Accepted Answer

The retailer is using the information to increase the share of wallet from their best customers. By customizing promotions targeted to customers' past purchases, the retailer is encouraging them to make additional purchases and increase their spending with the retailer. This is a common marketing tactic used to increase customer retention and loyalty while also driving sales.

Question 12

While it is relatively easy to offer customers Internet options like a FAQ page and an e-mail address to answer questions, some companies are using an interactive approach to address customers' questions while they are visiting the websites. These firms are using ________ to provide the customer with enhanced customer service.
A) vendor-managed inventory
B) web videos
C) online chats
D) EDI
E) online games

Accepted Answer

Online chats allow customers to engage in a real-time conversation with a representative to address their questions and concerns while they are exploring the website. This interactive approach provides enhanced customer service and may result in increased customer satisfaction and loyalty.

Question 13

Chandra owns a pet sitting service. She recently paid a web developer to build a special version of his company website for use on smartphones. Customers will now be able to easily place orders for pet sitting on their cell phones. This is an example of
A) M-commerce.
B) smart retailing.
C) cell selling.
D) P-commerce.
E) channel expansion.

Accepted Answer

This is an example of m-commerce, which refers to conducting commercial transactions using mobile devices such as smartphones and tablets. Specifically, in this scenario, customers can use their smartphones to place orders for pet sitting services through the mobile version of the company's website.

Question 14

Retailers can gain valuable knowledge about their customers from the transaction process and from
A) trade industry profiles.
B) store brand/private-label brand ratios.
C) omnichannel flow process.
D) the insights of store personnel.
E) end-of-aisle positioning studies.

Accepted Answer

Store personnel can interact with customers and gain valuable insights into their preferences and shopping habits, providing retailers with valuable knowledge about their clientele. The transaction process may provide data on purchase history and trends, but it does not necessarily provide direct insight into the preferences and behaviors of the customers themselves. Trade industry profiles, store brand/private-label brand ratios, and end-of-aisle positioning studies may also provide valuable information, but they are not as directly tied to customer behavior as insights from store personnel. Omnichannel flow process can provide information on how customers interact with the retailer's various channels, but it may not provide as much insight into specific customer preferences and behaviors as engaging with store personnel.

Question 15

One of the greatest constraints faced by store-based retailers-and one that the Internet channel can address-is
A) price competition.
B) the amount of merchandise that can be carried in a physical store.
C) competition from other retailers.
D) common zoning restrictions limiting the kinds of merchandise that can be offered for sale.
E) interactive customer service.

Accepted Answer

The amount of merchandise that can be carried in a physical store is a major constraint for store-based retailers as they have limited space to display and store products. On the other hand, the Internet channel can easily address this constraint as retailers can showcase a wide variety of products without the need for physical storage space.

Question 16

Because many consumers choose stores based on proximity to their workplaces or homes, great locations are
A) difficult to define.
B) more important than great products.
C) always situated near supply chain members.
D) a competitive advantage that few rivals can duplicate.
E) almost always locations next to big-box discounters.

Accepted Answer

Great locations are a competitive advantage that few rivals can duplicate because once a store has secured an ideal location, it can be difficult for competitors to open a store in the same area. Furthermore, a great location can attract more customers than a store with great products but is not conveniently located.

Question 17

Andy purchased a number of books from Amazon.com, and he learned to trust the recommendations made to him. More than once he was pleasantly surprised at the books and authors he discovered this way. In this case, Amazon.com was creating value for Andy through
A) repeat business.
B) rapid delivery.
C) expanded market presence.
D) personalized offerings.
E) interactive offerings.

Accepted Answer

Amazon.com created value for Andy by personalized book recommendations that he came to trust and enjoy.

Question 18

Traditionally, retailers treated all their customers ________, but today, successful retailers
A) based on demographics; treat customers based on share of wallet.
B) based on share of wallet; treat all customers identically.
C) identically; base customer attention on demographics.
D) based on demographics; provide more value to mobile commerce customers.
E) identically; provide more value to their best customers.

Accepted Answer

Today's successful retailers recognize that not all customers are equal in terms of value and potential repeat business. They provide more value and attention to their best customers, regardless of demographics or share of wallet.

Question 19

For retailers, when making decisions regarding place, a key ingredient to success is
A) product placement promotion.
B) convenient locations.
C) private-label merchandise.
D) off-price placement.
E) customer relationship management.

Accepted Answer

Convenient locations are crucial for retailers because they can attract more customers who are willing to make purchases due to the store's accessibility. The location of a store can make all the difference in customer traffic and sales.

Question 20

In which of the following categories would a dry cleaning business be placed?
A) services retailer
B) specialty store
C) category killer
D) superstore
E) discount store

Accepted Answer

A dry cleaning business offers services and does not sell goods, therefore it falls under the category of a service retailer.

Quiz 16: Retailing and Omnichannel Marketing

Jordan directs her salespeople to increase the company's share of wallet. Jordan is directing her salespeople to

The percentage of a customer's purchases made from a particular retailer is referred to as

The knowledge retailers can gain from their store personnel and customer relationship management databases is valuable for developing

When a company offers consumers the ability to make purchases via a smartphone, this is known as

Mira purchased some eyeliner from an Internet-based beauty supply house, and now she often receives online recommendations for other products from the same cosmetics line. These recommendations were probably the result of

As the old cliché claims, the three most important things in retailing are

Omnichannel retailers use consumer information collected from the customers' Internet browsing and buying behavior to send dedicated e-mails to customers promoting specific products or services in an effort to

Which of the following retail stores would emphasize personal selling the most as part of the firm's promotional efforts?

Benton manages a building supply company. He wants to invite 20 of his most valuable building-contractor customers to a golf outing and party. Benton will likely use the firm's ________ to identify these customers.

________ is the term used to describe the situation when retailers use some combination of stores, catalogs, and the Internet to sell merchandise.

Internet buyers are sometimes surprised to see online retailers using information about their past purchases to customize promotions targeted to them the next time they visit the retailer's website. The retailer is using the information to

Chandra owns a pet sitting service. She recently paid a web developer to build a special version of his company website for use on smartphones. Customers will now be able to easily place orders for pet sitting on their cell phones. This is an example of

Retailers can gain valuable knowledge about their customers from the transaction process and from

One of the greatest constraints faced by store-based retailers-and one that the Internet channel can address-is

Because many consumers choose stores based on proximity to their workplaces or homes, great locations are

Andy purchased a number of books from Amazon.com, and he learned to trust the recommendations made to him. More than once he was pleasantly surprised at the books and authors he discovered this way. In this case, Amazon.com was creating value for Andy through

Traditionally, retailers treated all their customers ________, but today, successful retailers

For retailers, when making decisions regarding place, a key ingredient to success is

In which of the following categories would a dry cleaning business be placed?