MKTG 437 EXAM 1 QUESTIONS WITH
CORRECT ANSWERS
What is retailing? - Correct Answers -all of the activities directly related to the sale of
goods and services to the ultimate consumer for non-business use.
main function of retailing - Correct Answers -to serve as a direct link from producer to
consumer
Main Activities of Merchandise Related Retail - Correct Answers -BUY (from
manufacturer or supplier)
SELL (to consumer buying for personal non- business use)
Justifications for Retailers Existence - Correct Answers -* Selling & Distributing products
* Convenience (To Customers & To Producers)
* Providing Value
* Serving as Information Source
Retailers Create Value - Correct Answers -1. Creating Assortments of Products
2. Breaking Bulk
3. Holding Inventory
4. Providing Services
Benefits of Retailers as Middlemen - Correct Answers --Discrepancies of Quantity
-Discrepancies of Assortment
-Temporal Discrepancies (time)
-Spatial Discrepancies
-Transactional Efficiencies
breaking bulk - Correct Answers -delivering single units from distribution centers to retail
outlets rather than the multiple units bundled together by manufacturers termed 'case-
packs'
Keys to retailer's survival & growth - Correct Answers -Effectiveness in procuring goods
& services that are:
- Desirable
- At convenient location
- Right time
- Acceptable prices
- Proper quantities
, Common Retailing Characteristics - Correct Answers -1. Consumer initiates the process
2. Transactional "urgency"- retailers do not think deep into the future
3. Small quantity purchases
4. Geographically localized- changing bc of online shopping
Disintermediation - Correct Answers -Don't need someone's help anymore and can do it
on one's own
Nature of retailing - Correct Answers --Competition
-Requires retail businesses to find ways to differentiate themselves... develop:
SCA's (Sustainable Competitive Advantages)
Potential SCA's (Sustainable Competitive Advantages) - Correct Answers --Type of
merchandise offered
-Width and variety of merchandise offered
-Services offered
-Number of outlets
-Price emphasis
-Store layout and design
-Store location
-Image
-Promotions
The Theory of Differential Congruence - Correct Answers -If the store presents itself in a
way customers like, they'll do more business
3 kinds of branding - Correct Answers -1. manufacturers brands- producer does
branding (proctor and gamble)
2. private branding- store brands, don't manufacture but do branding
3. exclusives branding- only one selling that brand (ex: Martha Stewart at Macy's)
4. Generic- ibuprofen
B-D-E - Correct Answers -Ultimately the success of any retailer is related to how well it
manages these three issues:
1. Brand - perceptions of store
2. Differentiation - SCA's
3. Experience - customer experience
5 RETAIL MIX ELEMENTS - Correct Answers -1. Spatial Considerations
2. Merchandising
3. Price
4. Integrated Marketing Communications
5. Customer Services
Steps in Developing a Retail Marketing Plan (5) - Correct Answers -1. Determine all
potential market segments
CORRECT ANSWERS
What is retailing? - Correct Answers -all of the activities directly related to the sale of
goods and services to the ultimate consumer for non-business use.
main function of retailing - Correct Answers -to serve as a direct link from producer to
consumer
Main Activities of Merchandise Related Retail - Correct Answers -BUY (from
manufacturer or supplier)
SELL (to consumer buying for personal non- business use)
Justifications for Retailers Existence - Correct Answers -* Selling & Distributing products
* Convenience (To Customers & To Producers)
* Providing Value
* Serving as Information Source
Retailers Create Value - Correct Answers -1. Creating Assortments of Products
2. Breaking Bulk
3. Holding Inventory
4. Providing Services
Benefits of Retailers as Middlemen - Correct Answers --Discrepancies of Quantity
-Discrepancies of Assortment
-Temporal Discrepancies (time)
-Spatial Discrepancies
-Transactional Efficiencies
breaking bulk - Correct Answers -delivering single units from distribution centers to retail
outlets rather than the multiple units bundled together by manufacturers termed 'case-
packs'
Keys to retailer's survival & growth - Correct Answers -Effectiveness in procuring goods
& services that are:
- Desirable
- At convenient location
- Right time
- Acceptable prices
- Proper quantities
, Common Retailing Characteristics - Correct Answers -1. Consumer initiates the process
2. Transactional "urgency"- retailers do not think deep into the future
3. Small quantity purchases
4. Geographically localized- changing bc of online shopping
Disintermediation - Correct Answers -Don't need someone's help anymore and can do it
on one's own
Nature of retailing - Correct Answers --Competition
-Requires retail businesses to find ways to differentiate themselves... develop:
SCA's (Sustainable Competitive Advantages)
Potential SCA's (Sustainable Competitive Advantages) - Correct Answers --Type of
merchandise offered
-Width and variety of merchandise offered
-Services offered
-Number of outlets
-Price emphasis
-Store layout and design
-Store location
-Image
-Promotions
The Theory of Differential Congruence - Correct Answers -If the store presents itself in a
way customers like, they'll do more business
3 kinds of branding - Correct Answers -1. manufacturers brands- producer does
branding (proctor and gamble)
2. private branding- store brands, don't manufacture but do branding
3. exclusives branding- only one selling that brand (ex: Martha Stewart at Macy's)
4. Generic- ibuprofen
B-D-E - Correct Answers -Ultimately the success of any retailer is related to how well it
manages these three issues:
1. Brand - perceptions of store
2. Differentiation - SCA's
3. Experience - customer experience
5 RETAIL MIX ELEMENTS - Correct Answers -1. Spatial Considerations
2. Merchandising
3. Price
4. Integrated Marketing Communications
5. Customer Services
Steps in Developing a Retail Marketing Plan (5) - Correct Answers -1. Determine all
potential market segments
