Retail Chapter 7

Question 0

from the perspective of the of the manufacturer, wholesaler, and retailer: VALUE is embodied by a series of activities and processes that is called:

Answer 0

A Value Chain- provides a certain value for the consumer. It is the totality of the tangible and intangible product and customer service attributes offered to shoppers.

Question 1

Several Parties involved in channel distribution. They are:

Answer 1

manufacturers, wholesalers, retailers, and customers

Question 2

From the perspective of the customer, VALUE is:

Answer 2

the perception the shopper has of a value chain. Value is based on the perceived benefits received versus the price paid.

Question 3

value chain

Answer 3

represents the total bundle of benefits offered to consumers through a channel of distribution. It comprises, store location and parking, retailer ambience, the level of customer service, the products/brands carried, product quality, the retailer’s in stock position, shipping, prices, the retailer’s image and other elements.

Question 4

expected retail strategy

Answer 4

represents the minimum value chain elements a given customer segment expects from a type of retailer.

Question 5

augmented retail strategy includes:

Answer 5

the extra elements in a value chain that differentiate one retailer from another.

Question 6

potential retail strategy

Answer 6

comprises value chain elements not yet perfected by a competing firm in the retailer’s category.

Question 7

5 potential pitfalls to avoid in planning a value oriented retail strategy:

Answer 7

1. Planing value with just a price perspective.
2. Providing value-enhancing services that customers do not want or will not pay extra for.
3. Competing in the wrong value/price segment.
4. Believing augmented elements alone create value:
5. Paying lip service to customer service.

Question 8

relationship retailing

Answer 8

whereby retailers seek to form and maintain long term bonds with customers, rather than act as if each sales transaction is a new encounter with them.

Question 9

four factors to keep in mind in relationship retailering

Answer 9

1. customer base
2. customer service
3. customer satisfaction
4. loyalty programs

Question 10

Customer base

Answer 10

in terms of population and lifestyle trends, attitudes toward and reasons for shopping.

Question 11

core customers

Answer 11

best customers

Question 12

customer service

Answer 12

refers to the identifiable, but sometimes intangible, activities undertaken by a retailer in conjunction with the goods and services it sells.

Question 13

2 elements of customer service

Answer 13

1. expected customer service

2. augmented customer service

Question 14

employee empowerment

Answer 14

whereby workers have the discretion to do what they believe is necessary within reason, to satisfy the customer even if this means bending some rules.

Question 15

Developing Customer Service

Answer 15

1. consider what customer services are expected and what customer services are augmented for a particular retailer.
2. what level of customer service is proper to complement a firm’s image.
3. should there be a choice of customer services
4. should customer services be free?
5. How can a retailer measure the benefits of providing customer services against their costs.
6. How can customer services be terminated.

Question 16

Advantages of retailer sponsored credit cards:

Answer 16

1. the retaielr saves the fee it would pay for outside card sales.
2. people are encouraged to shop with a given retailer because its card is usually not accepted elsewhere.
3. contact can be maintained with customers an information learned about them.

Question 17

revolving credit account

Answer 17

whereby a customer charges items and is billed monthly on the basis of the outstanding cumulative balance.

Question 18

option credit account

Answer 18

whereby a consumer must pay th ebill in full when it is due.

Question 19

customer satisfaction

Answer 19

occurs when the value and customer service provided through a retialing experience meet or exceed consumer expectations

Question 20

turning around customer service

Answer 20

focus on customer concerns
empower frontline employees
show that you are listening
express sincere understanding
apologize and rectify the situation

Question 21

Loyalty (frequent shopper) Programs

Answer 21

reward a retailer’s best customer’s, those with whom it wants long lasting relationships.

Question 22

What do good customer loyalty programs have in common?

Answer 22

Their rewards are useful and appealing, and they are attainable in a reasonable amount of time.

Question 23

value delivery system

Answer 23

comprises all the parties that develop, produce, deliver, and sell and service particular goods and services.

Question 24

Category Management

Answer 24

whereby channel members collaborate to manage products by category rather than by individual items. Example: supermarket chains

Question 25

Goods retailing

Answer 25

focuses on the sale of tangible (physical) products.

Question 26

Service Retailing

Answer 26

involves transactions in which consumers do not purchase aquire ownership of a tangible product.

Question 27

Rented-goods services

Answer 27

whereby consumers lease and use goods for specified periods of time.

Question 28

Owned-good services

Answer 28

whereby goods owned by consumers are repaired, imporved, or maintained.

Question 29

Nongoods services

Answer 29

whereby intangible personal services are offered to consumers who then experience the services rather than posses them.

Question 30

customer service and service retailing are not interchangable. What are the differences?

Answer 30

customer service refers to the activities undertaken in conjunction with the retailer's main business; they are part of the total retail experience. Service retailing refers to situations in which services are sold to consumers.

Question 31

4 unique aspects of service retailing that influence relationship building and customer retention

Answer 31

1. the intangibility of many services makes a consumer's choice of competitive offerings tougher than with goods. 2. The service provider and his or her services are sometimes inseparable (thereby localizing marketing efforts. 3. THe perishability of many services prevents storage and increases risk. 4. The aspect of human nature involved in many servies makes them more variable.

Question 32

Technology and relationships in retailing

Answer 32

1. roles of technology and humans must be clear and consistent with the goals and style of that business. 2. Shoppers expect certain operations to be in place so they can rapidly complete credit transactions get feedback on product availability and so on.

Question 33

Electronic banking involves both the use of automatic teller machines and instant processing of retail purchases.

Answer 33

Electronic banking

Question 34

smart card

Answer 34

the smart card contains an electronic strip that stores and modifies customer information as transactions take place

Question 35

Ethics

Answer 35

acts that are trustworthy, fair, honest, and respectful manner with each of its consituencies.

Question 36

Ethics

Answer 36

Relates to the retailer's moral principles and values

Question 37

social repsonsibility

Answer 37

involves acts benefiting society

Question 38

consumerism

Answer 38

entails protecting consumer rights