MAR3231 Exam 1 Hopkins FSU (2024) Questions With Correct Solutions, Already Passed!!

Retail - encompasses the business activities involved in selling goods & services to consumers for their personal, family, or household use -orhow firms deliver products to end users 1.) How can we best serve our customers while earning fair profit? 2.) How can we stand out in a competitive environment where consumers have many choices? 3.) How can we grow our business while retaining a core of loyal customers? 4.) Communicating with millennials. - Issues in Retailing Paradox of Choice - consumers are overwhelmed when they have too many options Core Customer - customer that is the center of retailing activities Ex: Amazon (online payment) v. Walmart (pay in cash) "Real Time" Consumers - wait until the last minute to shop Retailers can best address their issues by: 1.) fulling understanding & applying basic principles of retailing and 2.) maintaining a focused retail strategy. - The Retail Philosophy Customer Value - Key Area of the Retail Philosophy Manufacturer -> Wholesaler -> Retailer -> Final Consumer - Distribution Channel-lack of infrastructure -risk of upsetting retailers or supply chain partners -consumer need for brand comparison - Why don't manufacturers sell directly to customers? The Sorting Process - brings all different products together for convenience Ex: Walmart Multi-Channel Retailing (Omni-Channel) - a retailer sells to consumers through multiple retail formats Ex: web sites, physical stores, mall, pop-up shops 1.) Exclusive 2.) Intensive 3.) Selective - Distribution Types Exclusive Distribution - suppliers make agreements with one or few retailers (smoothest relationship) Intensive Distribution - suppliers sell through as many retailers as possible (most volatile relationship) Selective Distribution - supplier sells through a moderate number of retailers The Retailing Concept - create a concept that is so different / compelling / full of value that competitors are irrelevant 1.) Customer Orientation 2.) Coordinated Efforts3.) Value Driven 4.) Goal Orientation - Groups of the Retailing Concept Total Retail Experience - all elements in a retail offering that encourage (or inhibit) customers during contact with a retailer value is a series of activities & processes (the "value chain") that provide a certain value for the consumer - Channel (Firm) Perspective value is a perception that the shopper has of the value chain, view of all benefits from a purchase v. the price paid - Customer Perspective (Results + Process Quality) / (Price + Customer Access Costs) - Value overall quality, instructions, ease of assembly, taste / quality / health, warranty, product testing by retailer - Examples of Results wide aisles, ease of finding, high in-stock position, fun experience, short waiting times - Examples of Process Quality Costs + Delivery + Assembly + Credit - Price warehouse club membership fees, inconvenient location, poor store hours, inadequate parking - Examples of Customer Access Costs Retail Value Chain - represents total number of benefits offered to consumers through channel of distribution store location / parking, ambiance, customer service, brands / products carried, product quality, in-stock position, shipping, prices, image, etc. - Examples of Retail Value ChainRelationship - connection / emotional association Desired Service: Delights Zone of Tolerance: Desireables Adequate Service: Musts - Customer Service - Expectations Platinum (most profitable) Gold Iron (largest %) Lead (costs you money) - Customer Base