Question 1

While it is relatively easy to offer customers Internet options like an 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.

Accepted Answer

Online chats provide an interactive approach to address customer inquiries while they are visiting the website, thus providing enhanced customer service.

Question 2

Benefits of the traditional retail store as a channel include the ability to

Accepted Answer

Traditional retail stores have the advantage of providing personalized attention to customers and offering in-depth product information, leading to a more meaningful shopping experience.

Answer: B
 Brick and mortar stores can offer a greater selection of products than online channels due to limited shelf space and the need to make products physically accessible to consumers.

Answer: C
 By having a physical presence in a certain location, traditional retail stores can expand their market reach to all potential customers, including those who may not shop online.

Answer: D
 Traditional retail stores can collect valuable data on how customers shop for a particular product, such as which items are frequently bought together, how often customers return items, and what items tend to sell out quickly.

Answer: E
 Comparing prices across multiple channels is typically easier to do online, as various e-commerce companies offer product price comparisons. Therefore, traditional retail stores do not typically offer the ability to quickly compare prices across channels.

Question 3

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.

Accepted Answer

A CRM database is designed to store and track customer information, allowing companies to identify their most valuable customers based on factors such as purchase history, communication preferences, and level of engagement. Benton can use the CRM database to easily identify his top 20 building-contractor customers and invite them to the golf outing and party.

Question 4

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

Accepted Answer

The statement implies that great locations are a competitive advantage, which means that they are advantageous and difficult for rivals to replicate. The other options are not supported by the statement.

Question 5

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

Accepted Answer

Jewelry is a high involvement, high-priced purchase, and customers may need assistance in selecting the right item. Therefore, personal selling is essential in this type of retail store.

Question 6

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

Accepted Answer

Amazon.com was creating value for Andy through personalized offerings by recommending books and authors based on his previous purchases and interests.

Question 7

Retailers focusing on increasing sales to their best customers are attempting to

Accepted Answer

When retailers focus on increasing sales to their best customers, they are attempting to increase their share of wallet. This means that they are trying to encourage their customers to spend more money on their products and services, rather than with competitors.

Question 8

For brick-and-mortar retailers,when making decisions regarding place,a key ingredient to success is

Accepted Answer

Convenient locations are a key ingredient to success for brick-and-mortar retailers as they can attract more foot traffic and make it easier for customers to access their products. This can lead to increased sales and profitability. Product placement and promotion, private-label merchandise, off-price placement, and customer relationship management are all important factors as well, but convenient locations are the foundation for success.

Question 9

Retailers in expensive resort areas often find it difficult to hire quality salespeople.In a situation like this,retailers should consider augmenting or even replacing the sales and customer service functions with

Accepted Answer

In-store kiosks or self-checkout lanes can provide automated customer service and sales functions, without the need for human salespeople. This can be especially useful in expensive resort areas where it may be difficult to find quality salespeople. Additionally, this can help reduce labor costs for the retailer.

Question 10

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

Accepted Answer

Knowledge from store personnel and customer databases can help retailers develop strategies to increase customer loyalty by understanding the needs and preferences of their customers.

Question 11

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

Accepted Answer

While all of the options listed could be important in retailing, "location, location, location" is a well-known and widely recognized phrase in the industry. The importance of having a prime location for a retail business cannot be overstated.

Question 12

Henri wants customers in his specialty tobacco store to feel at home,as if they were in their personal smoking den.He uses lighting,music,and soft chairs to create a "look and feel" that will get customers to relax and return.Henri is focusing on which aspect of the marketing mix?

Accepted Answer

Henri is focusing on promotion, as he is using lighting, music, and soft chairs to create an atmosphere that will encourage customers to feel relaxed and return to his store.

Question 13

Janelle is shopping for a unique outfit for a benefit dinner dance.She wants it to sparkle and shine,but still feel light,silky,and comfortable.For the highest satisfaction,Janelle likely should

Accepted Answer

Shopping in traditional retail stores allows Janelle to physically see and feel the fabrics, ensuring they meet her criteria for sparkle, shine, and comfort.

Question 14

Personal selling is particularly important for retailers selling

Accepted Answer

Personal selling is most effective for products that are complicated or expensive, as customers may require more explanation or assurance before making a purchase. Retailers selling online services or low-cost services may not require as much personal interaction, while those selling discount items or trend/fashion items may rely more on advertising and promotions.

Question 15

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

Accepted Answer

The retailer is using past purchase information to increase the share of wallet from their best customers. By creating customized promotions targeted to these customers, the retailer is incentivizing them to continue shopping with them and potentially spend more money. This is a common marketing strategy to increase customer retention and revenue.

Question 16

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

Accepted Answer

Today, successful retailers provide more value to their best customers, rather than treating all customers identically. This approach of focusing on their high-value customers allows retailers to increase customer loyalty and retention, ultimately leading to increased profits.

Question 17

One advantage of a retail store that is not shared with an Internet channel is

Accepted Answer

Retail stores are able to accept cash payments, which is not typically an option with online channels.

Question 18

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

Accepted Answer

Increasing the company's share of wallet means increasing the amount of business they do with their existing customers rather than acquiring new customers. Therefore, directing salespeople to focus on increasing sales to their best customers is the most relevant choice.

Question 19

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

Accepted Answer

Store personnel interact directly with customers, observe their behavior, and gather feedback on a regular basis, which can provide valuable insights about their needs, preferences, and shopping habits. Transaction data alone may not be sufficient to understand the reasons behind customer behavior and decision-making. Other options listed are not directly related to customer knowledge gained from the transaction process.

Question 20

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

Accepted Answer

Share of wallet refers to the percentage of a customer's total spending on a specific type of product or service that goes to a particular retailer. It is a measure of how much of a customer's "wallet" or budget is devoted to purchasing from a particular retailer. Share of market, customer loyalty, customer relationship management, and customer value ratio are all related concepts but do not specifically refer to the percentage of a customer's purchases from a particular retailer.

Quiz 16: Retailing and Omnichannel Marketing