Accessibility: Keyboard Navigation
Blooms: Understand
Difficulty: Medium
Learning Objective: 01-02 Understand the role retailers play in the distribution channel and the functions they perform.
Topic: 01-02 A retailer's role in a distribution channel
74. Distinguish between intratype competition and intertype competition. Give an example of each.
Intratype competition refers to the competition between retailers with the same format. An example would be the competition between Loblaws and Sobeys for sale of fresh salmon. Intertype competition refers to the competition between retailers that sell similar merchandise using different formats. An example would be the sale of Maybelline mascara between Walmart and Shoppers Drug Mart.
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: Easy
Learning Objective: 01-05 Discuss different types of decisions retail managers make.
Topic: 01-12 Understanding the world of retailing
75. Why would a drug store add novelty gifts, fresh bread, pre-wrapped sandwiches and milk to its product mix?
The drug store is engaging in scrambled merchandising and has added these products and more, to appeal to a broader group of customers and to provide one-stop shopping for our time-starved society.
Accessibility: Keyboard Navigation
Blooms: Understand
Difficulty: Medium
Learning Objective: 01-05 Discuss different types of decisions retail managers make.
Topic: 01-12 Understanding the world of retailing
76. A chef wants to open a Chinese restaurant in the suburbs of a large city. How should she identify the competition?
This question can have a variety of responses, but she could first look at the obvious and identify other Chinese restaurants near her location. Is her location the best? She should consider frozen Chinese entrees at nearby grocery stores. She should also consider the prices of the entrees she offers and compare them to the prices of other types of restaurants.
Accessibility: Keyboard Navigation
Blooms: Understand
Difficulty: Medium
Learning Objective: 01-05 Discuss different types of decisions retail managers make.
Topic: 01-13 Developing a retail strategy
77. Why do retailers consider customers as important when developing a retail strategy?
Retailers need to understand customers and how they are changing so that they can better satisfy their needs. Retailers need to know and understand why customers shop, how they select a store, and how they select from that store's merchandise.
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: Medium
Learning Objective: 01-05 Discuss different types of decisions retail managers make.
Topic: 01-13 Developing a retail strategy
78. What are the three things identified by a retail strategy statement?
A retail strategy statement identifies (1) the target market toward which the retailer will direct its efforts, (2) the nature of the merchandise and services the retailer will offer to satisfy the needs of the target market, and (3) how the retailer will build a long-term advantage over its competitors.
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: Medium
Learning Objective: 01-05 Discuss different types of decisions retail managers make.
Topic: 01-13 Developing a retail strategy
79. Why is location strategy important for both consumers and for competitive reasons?
(1) Location is typically the most important characteristic consumers consider when selecting a store. (2) A good location creates a long-term advantage over the competition.
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: Medium
Learning Objective: 01-05 Discuss different types of decisions retail managers make.
Topic: 01-14 Implementing the retail strategy
80. Define Customer Relationship Management and give an example on how retailers are using CRM programs in their business.
Customer relationship management (CRM) is a business philosophy and set of strategies, programs, and systems that focus on identifying and building loyalty with a firm's most-valued customers. Retailers use data analysis to identify their most-valued customers. Once they have identified these customers, retailers design special programs and initiatives, building their loyalty.
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: Medium
Learning Objective: 01-05 Discuss different types of decisions retail managers make.