Retail Marketing Strategies Quiz

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Questions and Answers

What does 'identifiable' imply about a retailer's customers?

Retailers can determine the segment's size and target consumers. (correct)

Retailers must avoid any demographic analysis.

Customers cannot be segmented.

Customers have very similar preferences.

Which of the following is likely to be found in a store located in a high-income neighborhood?

Prepared and gourmet foods (correct)

Snack foods

Generic brand items

Fast food products

What occurs when there is too much overlap between market segments?

Marketing strategies can be generalized.

Distinct marketing strategies are essential.

Consumer preferences are more diverse.

Segments may become indistinguishable. (correct)

Which stage in the decision process indicates a customer is actively considering a purchase?

Intend to buy Signup and view all the answers

What type of consumer is categorized as a 'laggard'?

A consumer who is skeptical of new products. Signup and view all the answers

What does a 'heavy' usage rate signify about a consumer?

They frequently purchase and use the product. Signup and view all the answers

Which benefit sought is associated with consumers prioritizing quality over cost?

Prestige Signup and view all the answers

Which factor plays a role in defining a person's social class?

Occupation Signup and view all the answers

What is the term for the behavior of buying both premium and low-priced merchandise?

Cross-shopping Signup and view all the answers

Which approach is NOT typically used by retailers to stimulate need recognition?

Customer surveys Signup and view all the answers

What is the first step before a customer is motivated to make a purchase?

Need recognition Signup and view all the answers

Which source of information includes past experiences and memories?

Internal sources Signup and view all the answers

During her search, where did Eva begin looking for information on suits?

The Internet Signup and view all the answers

Which activity is an example of stimulating need recognition in a retail context?

Creating a holiday sales event Signup and view all the answers

What types of sources do customers utilize for external information?

Retailer websites and advertising Signup and view all the answers

What method did Melrose Jewelers use to engage customers on their Facebook page?

Personality quiz Signup and view all the answers

What is a limitation of using lifestyle segmentation compared to demographics?

Lifestyle segmentation is harder to identify potential customers. Signup and view all the answers

What is often used alongside lifestyle segmentation for effective market segmentation?

Demographics segmentation. Signup and view all the answers

In what situation is convenience more valued than assortment, according to the multiattribute attitude model?

Fill-in shopping for staple items. Signup and view all the answers

Why is buying situation segmentation considered highly actionable for marketers?

It is easy to identify what satisfies the needs of a segment. Signup and view all the answers

Which method is used to identify VALS segments in marketing?

VALS questionnaire. Signup and view all the answers

How can retailers assess the size of a market segment?

By determining who has purchased under specific circumstances. Signup and view all the answers

What type of shopping behavior may require different considerations than lifestyle segmentation?

Buying situations. Signup and view all the answers

What is an example of how demographics can aid in market segmentation for a company like Nike?

Targeting marketing strategies by gender. Signup and view all the answers

Which characteristic has the highest importance weight for the young single woman?

Convenience Signup and view all the answers

What is the overall evaluation score for supermarkets when considering parents with four children?

164 Signup and view all the answers

Which retailer characteristic is rated the lowest by the parent with four children?

Availability of product Information Signup and view all the answers

For which retailer type does the availability of product information have a performance belief of 4?

Supercenter Signup and view all the answers

Which characteristic has the highest overall weight among the examined categories for the Internet Grocer?

Convenience Signup and view all the answers

How can retailers influence customer shopping behaviors effectively?

By conducting thorough market research Signup and view all the answers

Among the characteristics evaluated, which has the lowest importance weight for the parent with four children?

Availability of product Information Signup and view all the answers

Which aggregate evaluation score suggests that supercenters are preferred by young single women?

221 Signup and view all the answers

What characterizes the extended problem-solving process in customer buying decisions?

Significant time and effort in evaluating alternatives. Signup and view all the answers

Which type of buying process is defined by minimal effort and typically occurs habitually?

Habitual decision making. Signup and view all the answers

What type of risk is associated with the potential impact of a purchase on a person's health or safety?

Physical risk. Signup and view all the answers

In which scenario is limited problem solving likely to occur?

Purchasing groceries every week. Signup and view all the answers

What motivates customers to engage in impulse buying?

Visual appeal of prominent point-of-purchase displays. Signup and view all the answers

Which of the following best describes customer satisfaction?

A measurement of how well a purchase meets customer expectations. Signup and view all the answers

How does risk affect the length of the buying process?

Higher risks lead to a longer buying process due to more thorough evaluation. Signup and view all the answers

What is a key factor contributing to habitual decision making?

Time constraints affecting customer choices. Signup and view all the answers

Study Notes

Cross-Shopping

Customers patronize both premium and low-priced retailers, or high-end and price-oriented retailers.

Stimulating Need Recognition

Retailers use various strategies to stimulate unmet customer needs.
These strategies include advertising, emails, direct mail, publicity, and special events.
Retailers also use social media campaigns and visual merchandising to stimulate need recognition.

Information Search

Customers conduct research on retailers, channels, or products to meet their identified needs.
The search process can involve online research, consulting friends, visiting stores, and browsing fashion blogs.

Sources of Information

Customers use both internal and external sources of information.
Internal sources rely on the customer's memory and past experiences.
External sources include information from websites (manufacturers, retailers), search engines, traditional media, social media, friends, and product demonstrations.

Evaluating Retailers

The Multiattribute Attitude Model helps retailers understand how customers choose retailers or channels.
The model considers the customer's evaluation of several retailer characteristics and their importance weights.

Implications for Retailers

The model helps retailers identify customer preferences and choose appropriate marketing tactics.
To effectively attract customers, retailers need to understand:
- Alternative retailers considered by customers.
- Retailer characteristics important to customers during evaluation.
- Customer ratings of retailers on these characteristics.
- Importance weights assigned by customers to each characteristic.

Market Segmentation

Identifiable: Customers within a segment can be easily identified. This allows retailers to determine segment size and target their marketing efforts.
Demographics: Used to identify customer segments based on factors like age, income, occupation, and education. These factors influence consumer behavior and purchasing decisions.
Lifestyle: Customers with similar demographics may have different lifestyles, affecting their purchasing choices. The differences can be captured using lifestyle segmentation.
Psychographics: Includes factors like values, attitudes, interests, and personality traits. This information can provide insights into consumer behavior and preferences.
VALS: A psychographic segmentation tool that classifies consumers based on their values, attitudes, and lifestyles.
Buying Situation Segmentation: Considers different buying situations, which influence purchasing decisions.
- Fill-in Shopping: Focuses on convenience and nearby retailers.
- Weekly Shopping: Considers price, assortment, and overall value.

Post-Purchase Evaluation

Satisfaction occurs when the customer's experience meets or exceeds expectations.
Unsatisfactory experiences can lead to complaints, patronage of other stores, and switching brands.

Types of Buying Processes

The complexity of the buying process depends on the level of importance and risk associated with the purchase.
Extended Problem Solving: involves extensive research and evaluation when the purchase carries high risk and uncertainty.
Limited Problem Solving: requires moderate effort when customers have prior experience with the product and the risk is moderate.
Habitual Decision Making: involves little conscious effort when the customer has established preferences or routines.

Extended Problem Solving

Customers spend more time and effort on information search and evaluating alternatives.
Factors like financial, physical, and social risks influence extended problem solving.

Limited Problem Solving

Customers have some prior experience with the product and the risk is moderate.
Impulse buying is a type of limited problem solving, driven by unplanned purchases.

Habitual Decision Making

Involves minimal conscious effort as customers rely on established preferences or routines.

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Description

Test your knowledge on retail marketing strategies, including cross-shopping behavior and need recognition. This quiz covers how retailers stimulate customer needs and the information search process customers perform. Explore the internal and external sources of information that influence customer decisions.