RETAILING

___ integration occurs when a retailer engages in wholesaling activities by operating its own distribution centers to supply merchandise to its stores
vertical
___ integration, a type of vertical integration, arises when a retailer operates its own warehouses or designs its own private-label merchandise
backward
a store exhibiting corporate social responsibility if ___
the stores employees distribute free blankets to the poor in its locality
vertical integration means that a retail firm ___
performs more than one set of activities in a supply chain
___ ___ occurs when a retailer performs some wholesaling and manufacturing activities
backward integration
___ is motivating firms to enter the BoP (base of the pyramid or bottom of the pyramid) market
maturation of consumer goods and retail markets in developed economies
t/f
retail stores predominately compete against other stores that are located nearby
t
more than 90% of all retail sales are usually made in stores that are less than a 15-minutes drive from the consumer’s home. Thus, retail stores predominately compete against other stores located nearby
Amazon.com was initially started as a ___
book retailer
___ are the cofounders of Forever 21
Do Won and Jin Sook Chang
___ is the largest retailer in the world
Wal-Mart
Forever 21 ___
focuses on trendy, exciting clothing options
the corporate philosophy of IKEA ___
promotes cost-cutting strategies
which of the following best describes Howard Schultz?
He had a vision of recreating the Old World magic and romance behind the Italian coffee bar
The first step in a typical retail management decision process is ___
Understanding the world of retailing
Assume that Emryl’s and Muzen are two popular warehouse clubs operating in Minnesota. They are fierce competitors in the apparel industry. To gain more visibility in the market, Emryl’s decides to design its own store brands, and Muzen decides to open more stores in Minnesota. Which of the following conclusions can be drawn from the information provided in the scenario?
The competition between Emryl’s and Muzen is an example of intratype competition
When retailers offer merchandise not typically associated with their type of store, such as clothing in a drugstore, the result is __ __
Scrambled merchandising
Competition between retailers that sell similar merchandise using different types of stores is called ___ ___
Intertype competition
To develop and implement an effective retail strategy, retailers should ___
Understand why customers shop, how they select a store, and how they select among the stores products
scrambled merchandising ___
increases intertype competiiong
increasing ___ competition makes it harder for retailers to identify and monitor their competition
intertype
t/f
formulating and implementing a retail strategy is independent of a firms macro and microenvironments
f
Retailing ___
is a very labor-intensive industry
t/f
elements in a retail mix include the types of merchandise and services offered, merchandise pricing, advertising and promotional programs, store design, merchandise display, assistance to customers provided by salespeople, and convenience of the store’s loation
t
___ are the principles governing individual and companies that establish appropriate behavior and indicate what is right and wrong
ethics
___ dictate which activities society has deemed to be clearly wrong, those activities for which retailers and their employees will be punished through the federal or state legal systems
laws
which of the following statements is true about the ethical and legal aspects of retailing?
most business decisions are not regulated by laws
identify the level of restrictions on retail locations, store size, and ownership laid down by governments in different countries
us = minimal restrictions
india = extensive restrictions
china = modest restrictions
Who among the following is a retailer?
A motel provided overnight lodging to customers
rank the elements of the supply chain in the correct order–staring from the initial stage to the final stage of product delivery
manufacturer
wholesaler
retailer
consumer
retailers ___
link manufacturers to consumers
why do manufacturers and wholesalers typically ship cases of frozen dinners or cartons of blouses to retailers?
to reduce their transportation costs
activities performed by retailers, such as breaking bulk and ___ ___, allow consumers to keep a smaller inventory of products at home because they know local retailers will have the products available when they need more
holding inventory
what should a retailer do to improve the brand value of its store in the market?
provide services that make it easier for customers to buy and use its products
in retailing value-creating activities undertaken by channel members ___
increase the cost of products and services sold to customers
Isaac is the owner of a department store, which is primarily involved in selling products to a particular demographic in Minnesota. which of the following situation indicates that he is engaging in vertical integration?
Isaac manufactures part of his merchandise
Nate owns 2 retail stores in Orlando that sell outdoor sports equipment to end-users. Which of the following scenarios indicates that Nate is engaging in backward integration?
He acquires a warehouse to regulate the distribution of merchandise to his stores
___ occurs when a manufacturer operates its own stores to sell its products.
forward integration
Which of the following is an example of forward integration?
a home-based bakery sells cupcakes and pastries directly to restaurants and customers
Rank the following countries on the basis of the average store size (starting from highest to lowest)
US
China
India
How is retailing the US different?
The retail industry in the US has the greatest retail density and concentration of large retail firms
A retailer is engaging in vertical integration if ___
it sells national brands and also designs private-label merchandise
Sharon is the owner of a gaming console manufacturing unit. Which of the following situation indicates that she is engaging in forward integration?
She sets up a gaming store to sell consoles directly to end-users.
KartonKings Inc., a food retailer, processes customer feedback data to make an informed decision about product performance. The ability to process huge volumes of customer data is a consequence of the development of ___ on the retail industry
information systems
BrainCord LLC is a retailer that designs its own merchandise and then contracts with manufacturers to produce it exclusively for them. It does not perform any direct manufacturing or wholesaling. This is an example of __ integration.
vertical
what is retailing?
it deals with the sale of products meant for personal use
a retailer performing scrambled merchandising :
is likely to experience intertype competition
after developing a thorough understanding of a retailer’s competitive environment, a ___ is developed.
retail strategy
Brainwave Inc. had promoted an exchange offer in which Brainwave plastic shopping bags could be exchanged for a reusable one. The hope was that this reusable bag would be a short-term benefit for Brainwave as customers would be advertising for the retailer when they carried the bags around. Which stage of corporate social responsibility does this promotional strategy exhibit?
second stage
which of the following is an example of intratype competition?
CVS and Walgreens
a company would enhance its corporate social responsibility image by:
lowering its energy consumption
which of the following is a reason for the decline in the availability of retail managers?
the lack of a large talent pool
which of the following terms refers to the competition between the same types of retailers
intratype competition
FlyMe Inc. is a sportswear manufacturer that also performs wholesaling to department and speciality retailers as well as retailing to customers directly through the FlyMe website and FlyMe stores. This is an example of ___/
forward integration
Live Healthy Inc., a drug store retailer, has added jewelry, accessories, and apparel to its offerings. Which of the following terms best describes this scenario?
scrambled merchandising
The __ is a set of decisions retailers make to satisfy customer needs and influence their purchase decision
retail mix
What is a retailer’s role in the supply chain?
linking manufacturer to consumers
Which of the following statements is true of retailing in developing economies?
the large size of developing economies is likely to be a motivating factor
a company engaging in corporate social responsibility (CSR) is ___
likely to seek LEED certification
the development of information systems has:
helped the maintenance of the inventory system of retailers
Eric is a salesperson who takes a high pressure sales approach when he knows that a product is not suitable for a customers needs. this is most likely to be a violation of the ___
stores ethical policy
identify the ___ is an example of the impact of information systems on retailing
inventory to be ordered
a candy store specializes in selling a wide variety of candy. it even sells brands that are hard to get elsewhere. this is an example of an activity performed by retailers to ___
create value
the ___ in the north american industry classification system captures differences between north american countries
sixth
in merchandising, variety is the number of ___
merchandise categories a retailer offers
in merchandising, assortment is the number of ___
different items offered in a merchandise category
t/f
each merchandise category is called a stock keeping unit
f
a conventional ___ is a large, self-service retail food store offering groceries, meat, and produce, as well as some nonfood items, such as health and beauty aids and general merchandise
supermarket
while conventional supermarkets carry about 30,000 stock-keeping units, ___ supermarkets or ___ food retailers only stock about 1,500 stock-keeping units
limited-assortment
extreme-value
the power perimeter of a supermarket ___
is very profitable to retailers
the ___ movement focuses on reducing the carbon footprint caused by the transportation of food throughout the world
locavore
in the north american industry classification system, ___
the first two digits identify the firm’s business sector
limited-assortment supermarkets are also known as ___
extreme-value food retailers
___ are large stores that combine a supermarket with a full-line discount store
supercenters
hyper markets ___
place greater emphasis on perishables, such as product, than supercenters
___ are approximately 100,000 to 150,000 square feet large
warehouse clubs
unlike supercenters, hypermarkets ___
carry a larger proportion of food items
rank the different types of food retailers based on their store size (starting from smallest to largest)
convenience stores
limited-assortment supermarkets
warehouse clubs
hypermarkets
which of the following is a characteristic of a warehouse club?
they have simple interiors and concrete floors
supermarkets ___
generally charge lower prices for products than do convenience stores
department stores ___
are not as convenient as discount stores
which of the following products is an example of hard goods?
eletronics
retailers that offer a broad variety of merchandise, limited service, and low prices are known as ___ stores
full-line discount
typically, traditional full-line discount stores ___
are less efficient than supercenters
___ are big-box stores that offer a narrow but deep assortment of merchandise
category specialists
___ stores concentrate on a limited number of complementary merchandise categories and provide a high level of service
speciality
___ stores are retailers that sell secondhand or used merchandise
resale
extreme-value retailers ___
offer a broad variety of household goods
___ are specialty stores that concentrate on health and beauty care products
drugstores
t/f
traditional full-line discount stores have better economies of scale than supercenters
false
off-price retailers can buy merchandise at low prices because ___
they do not ask suppliers for advertising allowances or markdown adjustments
in retailing ___ are end-of-season merchandise that will not be used in following seasons
closeouts
an outlet store is a type of an ___
off-price retailer
___ retailers primarily sell services rather than merchandise
service
service retailers ___
create and deliver the service as the customer is consuming it
independent retail establishments ___
are not bound by the bureaucracies inherent in large retail organizations
t/f
corporate retail chains are more effective in negotiating lower prices for merchandise and advertising than small retailers
true
___ is a contractual agreement in which a company sells the right to use its business trademark, service mark, or trade name, or another commercial symbol of the company, to an individual for a one-tome establishment fee and an ongoing royalty fee, typically expressed as a percentage of gross monthly sales
franchising
___ retailers offer an inconsistent assortment of brand-name merchandise at a significant discount off the manufacturer;s suggested retail price
off-price
identify the characteristics of department stores based on the three tiers
first tier = offers exclusive designer merchandise along with excellent customer service
second tier = offers modestly priced merchandise with less customer service
third tier = caters to more price-conscious consumers
identify the characteristics of different types of retailers
conventional supermarket = offers a great variety of brands
extreme-value food retailer = offers products at lower prices
warehouse clubs differ from category specialists in that warehouse clubs ___
offer a greater variety of merchandise categories
a ___ voluntary cooperative group is an organization operated by a wholesaler offering a merchandising program to small, independent retailers on a voluntary basis
wholesale-sponsored
department stores located near category specialists often reduce their offerings in the category because category specialists ___
offer a deeper assortment of relatively lower prices to consumers
hard good are also known as ___ goods
durable
identify the accurate statement about extreme-value food retailers from the following
they strongly appeal to customers who are more willing to try a store brand
___ brands are items that are developed and marketed by a retailer and available only in its stores
private-label
which of the following statements is true about hispanics in the U.S>
they are more likley to prefer stores with bilingual staff and singage
soft goods are also known as ___ or ___ goods
nondurable
consumable
which of the following is true of coporate chain retailers as compared to single-store retailers?
they can effectively negotiate lower prices for merchandise
when it comes to service retailing, since customers cannot see, touch, or feel what is being sold, the ___ of the service can sometimes be a concern for customers in trying to decided whether to buy or not
intagibility
best buy is considered to be a category specialist retailer because it ___
offers a narrow variety but deep assortment of merchandise
convience stores ___
enable consumers with speedy chekcout
assortment is the __
number of different items offered in a merchandise category
service retailers sometimes find it difficult to match supply and demand because the creation and consumption of the service is simultaneous. This is a consequence of ___
perishability
many americans are choosing to purchase more locally grown and produced food in order to reduce their carbon footprint caused by the transportation of food throughout the world. this is part of the ___
locavore movement
department stores ___
offer a broad variety and deep assortment of goods
service retailers ___
must try to maintain consistent high-quality services
___ are retailers that offer a limited and irregular assortment of food and general merchandise with little service at low prices for ultimate consumers and small business
warehouse clubs
with reference to categorization by ownership, which of the following statements is true of single-store small retailers?
they are more likley to respond quickly to the customer needs
with respect to types of merchandise, which of the following is true of a retailer?
similar merchandise retailers have different assortment and variety
merchandise reatilers ___
retail products whose quality is not affected by the time and location of sale
with discount stores also offering grovery in their offerings, what can conventional supermarkets do to differentiate their offerings?
they can produce private label merchandise
variety is the ___
number of merchandise categories a retailer offers
what is the advantage of an independent, single-store over other forms of retail ownership?
ability to react quickly to market changes
full-line discount stores ___
stock both private lables and national brands
tillers LLC — a famous retailer — carries groceries, sporting goods, automobiles, electronics, housewares, healthy and beauty aides, apparel, footwear, jewelry, camping gear, and more. using the provided information, it can be concluded that tillers has ___
broad variety
a conventional supermarket ___
offers limited services to customers
the ___ ownership format combines the advantages of owner-manage business with the fficienies of centralized decision making in chain store operations
franchising
a retail ___ is the way a retailer sells and delivers merchandise and services to its customers
channel
catalogs, direct selling, and television home shopping are classified as ___ retail channels
nonstore
___ retailing involves using more than one channel to sell and deliver merchandise and services to consumers
multichannel
omniretailing is term frequently used to describe ___ retailing
multichannel
who among the following is an omniretailer?
a retailer who sells its products using a vending machine and an electronic channel
the ___ channel has the highest growth rate
mobile
a customer is said to be using an electronic retailing channel if he/she ___
buys a product from a retailers website
___ involves accessing the internet through a traditional computer
electronic retailing
___ is a form of internet retailing
electronic retailing
___ involves accessing the internet using a smartphone
mobile retailing
which of the following is a nonstore retail channel?
a catalog
reuben owns a category specialist store. he is using a catalog channel to sell his products if he ___
mails the stores merchandise list to a customer
___ are programs, typically 30 to 60 minutes long, that mix entertainment with product demonstrations
infomercials
___ is a nonstore retail channel
television home shopping
the retail channel in which salespeople interact with customers face to face in a convenient location, either at the customers home or at work is called ___
direct selling
an ___ retailing machine is also known as a vending machine
automated
t/f
direct selling is a highly interactive retail channel
t
sharon is using a direct selling retail channel if she ___
buys a product from a business development manager who is involved in door-to-door selling
which of the following is a characteristic of direct selling?
it does not requires a sophisticated or expensive infrastructure to be effective
which of the following occurs when a retailer sells merchandise and services to other distributors, rather than to end- users?
a pyramid scheme
in a ___ system, salespeople encourage customers to act as hosts and invite friends or coworkers for a social gathering
party plan
in a ___ system, independent business people serve as master distributors, recruiting other people to become distributors in their network
multilevel
which of the following is an eample of a pyramid scheme in direct selling
a warehouse buys products from a manufacturer and sells them to a specialty store, which in turn sells them to a supermarket
automated retailing is classifies as a ___ retail channel
nonstore
samuel is using an automated retail channel if he ___
buys a product from a vending machine
a ___ offers the greatest opportunity for customers to use all five senses when examining and evaluating products
store channel
customer who patronize store retail channels ___
prefer to pay with cash as it does not result in potential interest payments
a distributors buys merchandise from a manufacturer and sells it to other distributors. in direct selling, this is an examples of ___
the pyramid scheme
unlinke store channels, all nonstore retail channels ___
are limited in the degree to which they can satisfy the entertainment needs of consumers
what is the advantage of catalog channels over other retail channels?
catalogs are easier to browse through than websites
what is an advantage of internet channels over other retail channels?
individual retailers’ websites offer a greater number of product alternatives that consumers can consider
internet channels ___
can offer a greater selection of products to customers
unlike catalog channels, ___
the product information provided to consumers through internet channels is unlimited
a disadvantage of a store channel is that ___
the market for customers who shop in stores i typically limited to customers living in proximity to those stores
what is a disadvantage of catalog channels?
the market for catalogs is limited by the high cost of printing and mailing them
t/f
by adding an internet channel in their retail formats, retailers cannot expand their markets without having to build new stores
false
what is a characterisitic of a store channel?
it is difficult for most store channels to develop extensive purchase histories of their customers
identify the accurate statement about the different types of retail channels
all transactions through the internet have the information needed to send the product to the consumer
t/f
in internet channels, the click-stream data collected by a cookie does not provide insights into what products customers looked at but did not buy
f
how does a mobile channel differ from an electronic channel
a mobile channel has a smaller screen size and slower download speeds
a characteristic of mobile channels is that ___
apps developed by retailers typically do not provide access to all of the functions available on the retailers’ website
why do store based retailers or catalogers add internet channels in their retail strategy
retailers like to improve their offerings and build a competitive advantage
John has been invited to Sarah’s wedding, and he decides to buy her a gift at Natasha’s, a department store. Sarah is a frequent shopper at Natasha’s, and John is more likely to choose something that she will like. Which of the following technologies would enable that
shared customer database
Patagonia reinforces its image of selling environmentally friendly sports equipment in its stores by using optimal lighting and manufacturing goods from recycled material. This scenario demonstrates _____.
consisten brand image across channels
Showrooming:
results in loss of revenue for the retailer
_____ involves using more than one channel to sell and deliver merchandise and services to consumers.
multichannel retailing
Retail distribution centers:
are customized to support store, Internet, and catalog channels.
A company that follows centralized multichannel retailing:
follows the same profiel across different channels
Which of the following is an advantage of the catalog channel?
ease of use
At the cinemas, Diet Cola and Peppy Soda are the two most popular brands of cola sold to customers through vending machines. This is an example of _____.
automated retailing
Tina is a frequent shopper at a department store and is well known at her hometown outlet. She has travelled to another city where the store has a branch and happens to visit it. Which of the following technologies would enable the store to identify her and offer her the privileges of a frequent shopper?
the RFID on her card
Nancy’s Knits has become a popular store with tourists in the area. To expand her market presence, the most attractive strategy would be to _____.
add an internet retailing channel
Which of the following statements is not true about online retailing?
the internet is a revolutionary retail format that will eventually replace stores and catalogs
When customers conduct product research on a retailer’s websites but then purchase the product elsewhere, it is referred to as _____.
chanel migration
Which of the following is a benefit of the information generated by placing cookies on a customer’s hard drive?
it allows the retailer to provide customized promotions
Anna requires a new dress for her graduation ceremony, and she decides to visit Drezzez Inc., the apparel store. Which of the following scenarios describes a possible retail improvement that might exist in an apparel store of the future?
anna will be able to try on her dress of choice on a virtual platform
pricing in case of multichannel retailers
is independent of the customer who makes the purchase
The _____ channel is better suited for selling products with important “touch-and-feel” attributes such as the fit of a shirt.
store
Which of the following is an advantage of shopping through the store channel?
it allows customer to make cash payment
The direct selling channel:
results in the communication of extensive information about the product
_____ is a retail channel in which merchandise or services are stored in a machine and dispensed to customers when they deposit cash or use a credit card.
automated retailing
Which of the following is an advantage of shopping through the Internet channel?
extensive and timely information
the __ refers to the steps that consumers go through when purchasing a product or service
buying process
identify the true statement about need recognition
the buying process is triggered when consumers realize they have an unsatisfied need
when a consumers goes shopping to accomplish a specific task, such as rebbecca buying a watch to keep track of time, she is seeking to satisfy her ___
utilitarian need
when consumers go shopping for pleasure, they are seeking to satisfy their ___
hedonic needs
cross shopping is the ___
pattern of patronizing both expensive, status oriented retailers and price oriented retailers
___ sources are information in a customers memory, such as names, images, and past experiences with different stores
internal
if a customer searches for information about a product using an online search engine, he is using an ___ source of information
external
which of the following is a retailers objective for customers during the information search stage of the buying process
to limit the customers information search to its store or website
t/f
if a retailer is included in consumers’ consideration set, it decreases the likelihood that consumers will remember the retailer when they are about to go shopping
f
___ reduce a customer’s negative feeling of risk, both before and after the purchase
warranties
___ is a postconsumption evaluation of how well a store or product meets or exceeds customer expectations
satisfaction
customers typically engage in ___ when the purchase decision involves a lot of risk and uncertainty
extended problem solving
___ risk arise when customers purchase an expensive product or service
financial
cynthia is extra concerned about the toys she buys for her kids. she feels that toy makers use toxic material that have negative effects on the health of small children. in this scenario, cynthia is concerned about the ___ risk associated with the toys.
physical
jesse plans on purchasing an apple ipad because he does not want to feel left out of his peer group. in this scenario, jesse is concerned about the ___ risk
social
___ problem solving is a purchase decision process involving a moderate amount of effort and time
limited
which of the following statements is true about consumer decision making in the buying process?
typically, habitual decision making process occurs when decisions are not very important to customers
customers who are brand loyal ___
are reluctant to switch to other brands
retailer ___ means that customers like and habitually visit the same retailer to purchase a type of merchandise
loyalty
which of the following statements is true about the buying process
the buying process does not end when a customer purchases a product
identify the true statement about reference group
they provide information to consumers directly through conversation
t/f
culture does not influence consumer buying behavior
f
a retail ___ is a group of customers who are attracted to the same retail mix because they have similar needs
market segment
in market segmentation, actionable is the criterion which means that the retailer ___
should know what to do to satisfy needs for the consumers in a segment
which of the following is the reason why retailers should ensure that their market segments are identifiable and distinct from one another
distinct marketing strategies become redudant due to overlapping market segments
the market for pet pharmaceuticals is probably not large enough in one local area to serve as a target market segment, but a national market could be served through the internet channel. in this scenarioe, “___” is the criterion that is being evaluated about the target market
substantiality
___, a criterion for evaluating market segments, means that the retailer can target promotions and other elements of the retail mix to consumers in the segment
reachable
identify an example of geographic segmentation
a retail chain targets customers living in the warmer parts of a country
identify an example of demographic segmentation
a retail chain segments its market based on the earning potential of customers
___ segmentation uses both geographic and demographic characteristics to classify consumers
geodemographic
___ groups customers based on how they live, how they spend their time and money, what activities they pursue, and their attitiudes and opinions about the world in which they live
pyschographic segmentation
___ means that the retailer is able to determine which customers are in the market segment
identifiable
___, a criterion for evaluating market segments, helps determine the size and or the buying power of a market segment
substantial
demographic segmentation ___
identifies potential customers more easily than psychographic segmentation
grouping customers seeking similar benefits is called ___ segmentation
benefit
___ segmentation uses multiple variable to identify customers in the target segment according to their benefits sought, lifestyles, and demographics
composite
who among the following is a utilitarian shopper
a mountaineer who purchases a pair of tekking shoes before embarking on a snow trek
what is the difference between utilitarian shoppers and hedonic shoppers
utilitarian shoppers are more deliberate than shoppers motivated by hedonic needs
identify the characteristic of hedonic needs
shoppers with hedonic needs desire excitement and stimulation
customers motivated by ___ needs typically shop in amore deliberate and efficient manner, while customers motivated by ___ needs desire excitement, stimulation, status and power, recreation, and adventure
utilitarian
hedonic
identify the true statement about the amount of information search undertaken by consumers
the amount of information search increases when the competition for a product is greater
hedonic shoppers typically ___
spend more time collecting information about products and shopping
if the level of competition for a product ___, the amount of information search for the product ___
decreases
decreases
conversion rate is the ___
percentage of customers who enter a store or access a website and then buy a product from that same store or website
The weather forecast is reporting that the season’s first snowfall is predicted to hit tomorrow, and it will also involve ice and sleet. Many homeowners rush out to purchase shovels and deicing rock salt for their driveways. This has stimulated _____ which is a part of the buying process.
need recognition
Which of the following examples best illustrates a hedonic need?
Laura buys herself a cardigan as she ranked first in her class.
A retailer that has many people browsing in their store, but few people actually buying products, needs to strive to increase its _____.
conversion rate
Which of the following requires extended problem solving in a buying decision?
Purchasing a health-care policy cover for the whole family
Which of the following examples best illustrates a utilitarian need?
Zara buys new curtains to replace the worn out ones in her living room.
A hotel’s decision to redesign their seating plan to provide optimal space for visiting children is a consequence of the influence of the _____ on customer buying decisions.
family
Tangent Inc., the department store, knows from market research that their average customers comes from a household of $60,000 annual income, 33% of their customers have children at home, 51% of their customers have a college education, and the median age of their customers is 42. This information is based on _____ .
demographics
John likes to have the latest electronics. He goes from store to store looking at new cameras, but now just checks it online from his home. The Internet dramatically reduces the cost of _____.
information search
Extended problem solving in a buying decision:
is likely to prompt the offer of money back guarentees
Elena usually shops for her clothing at Macy’s but would never buy her cosmetics there. She buys her cosmetics at Walmart. Her pattern of buying would be an example of _____ .
cross shopping
GreenMart is a grocery store that is exclusively involved in the sale of organic products. They also encourage their customers to be environmentally aware by requesting them to use reusable bags and ban plastics from their store. The retailer in this instance targets the _____ market segment.
psychographic
When Jenna buys groceries, she shops at Whole Foods or Trader Joe’s because she knows that these two stores carry organic and unique foods. For Taylor, these two stores make up her _____.
consideration set
Habitual decision making:
involves little or no conscious effort
Helen’s, an apparel store, segments its market on the basis of the demographic characteristic of physical size and not on factors like ethnicity. This follows from the _____ criteria used for evaluating whether a retail segment is a viable target market.
actionable
A fast-food retailer observes that his sales orders do not show much variety with respect to the store location. Instead, the needs of his customer are age-related. From the given information, it can be concluded that he is most likely to follow _____ market segmentation.
demographic
Instances where snack shops are located near college campuses and gourmet foods in affluent areas follow from the _____ criteria used for evaluating whether a retail segment is a viable target market.
identifiable
Jamie wants to buy an imported car but has refrained from doing so because of the devaluation of her country’s money value against the dollar. Which of the following is a reason that seemed to influence Jamie’s buying process?
the econom
Which of the following is true of customer characteristics as concluded from the VALS survey?
Customers primarily motivated by ideals look for products and services that demonstrate success to their peers.
Limited problem solving decision process:
is done on the spot after seeing the merchandise.
A restaurant’s decision to convert its image from an upscale dining option into a one-for-all fast food is a consequence of the influence of _____ on customer buying decisions.
culture