.MKT 308 Reviewer: Wheel of Retailing Theory

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What is the primary concern for consumers regarding the value chain?

The results (correct)

The marketing strategy

The process

The cost structure

What may start affecting profits towards the end of accelerated development?

Hedonistic rewards

Customer preferences

Owned-goods services

Cost pressures (correct)

What is customer satisfaction based on in a retail experience?

Having a large staff

Providing the lowest prices

Offering luxurious items

Exceeding expectations (correct)

Which type of rewards attract people who shop for pleasure?

Hedonistic rewards (B) Signup and view all the answers

What does the unit-pricing law most often apply to?

Supermarkets (B) Signup and view all the answers

In what situation do retailers become active in businesses outside their normal operations?

Diversification (B) Signup and view all the answers

What rewards will attract consumers who like to stick with one brand or store?

Informational rewards (B) Signup and view all the answers

What type of retailer seeks to establish and maintain long-term bonds with customers?

Retailers engaging in relationship retailing (B) Signup and view all the answers

What strategy represents the minimum value chain elements a given customer segment expects from a type of retailer?

Expected retail strategy (A) Signup and view all the answers

What does downsizing involve for retailers who are unhappy with performance?

Closing unprofitable stores or selling off divisions (C) Signup and view all the answers

Which statement describes a specialty store?

It carries a narrow but deep assortment and tailors the strategy to a market segment (B) Signup and view all the answers

What type of rewards will consumers value if they want to reduce the time spent shopping?

Functional rewards (C) Signup and view all the answers

What type of services does a seller offer in nongoods services?

Personal expertise for a specified time (A) Signup and view all the answers

What does price discrimination law prohibit suppliers from doing?

Offering unjustified discounts to large retailers only (C) Signup and view all the answers

What characterizes a conventional supermarket?

Departmentalized food store with a wide range of food products (C) Signup and view all the answers

What difficulty arises for firms due to the intangible nature of some services?

Developing a consumer-oriented strategy (C) Signup and view all the answers

What do mergers involve in the retail context?

Combining separately owned retail firms (C) Signup and view all the answers

What occurs during the decline stage of a retail format?

Falling off of sales and profits, leading to firms abandoning the format (D) Signup and view all the answers

What is one way that services can increase customer loyalty?

By better understanding and reacting to shopper complaints (B) Signup and view all the answers

What does the text state about economic conditions and retailers?

Economic conditions are beyond any retailer's control, no matter how large it is (A) Signup and view all the answers

What is the definition of value from the customer's perspective?

The perception a shopper has of a value chain (C) Signup and view all the answers

What does the text say about the role of retailing in the distribution process?

Retailing is the last stage in the distribution process from supplier to consumer (A) Signup and view all the answers

What is the definition of 'intensive distribution' according to the text?

Maximizing suppliers' sales and letting retailers offer many brands and product versions (A) Signup and view all the answers

What does the text mean by 'value driven'?

Having prices appropriate for the level of products and customer service (C) Signup and view all the answers

What is the main purpose of a retailer's strategy?

To influence the firm's business activities and respond to market forces (A) Signup and view all the answers

What is the key characteristic of service retailing?

Consumers do not purchase or acquire ownership of tangible products (B) Signup and view all the answers

What is the main purpose of an economic rewards product system?

To attract price-sensitive customers and induce them to buy more (A) Signup and view all the answers

What is the key characteristic of selective distribution?

Suppliers sell through a moderate number of retailers (C) Signup and view all the answers

What is the main purpose of a customer orientation?

To determine the attributes and needs of its customers and endeavor to satisfy these needs to the fullest (B) Signup and view all the answers

What is the key characteristic of an augmented retail strategy?

It includes the extra elements in a value chain that differentiate one retailer from another (B) Signup and view all the answers