Retail Management Midterm Chapters
1-6 Exam Questions and Answers36
Intangibility - ANSWERS -services are generally intangible, such as performances or actions
rather than objects. ex) health care services
Simultaneous Production & Consumption - ANSWERS -products are typically made in factories,
stored, and then sold by a retailer, while service providers create and deliver the service as the
customer is consuming it. ex) the food you're eating at a restaurant is almost always prepared
and consumed at the same time
Perishability - ANSWERS -because the creation and consumption of services are inseparable,
services are perishable, meaning they can't be saved, stored, or resold, in contrast to
merchandise which can be held in inventory until bought ex) you cannot regift a massage that
you just received
Inconsistency - ANSWERS -merchandise is often produced by machines with very tight quality
control, whereas services are performances that are produced by inidentical people. ex) a
waiter at a restaurant will not produce the same experience as his co-worker might
Competitive Models - ANSWERS -
retailing - ANSWERS -the set of business activities that add value to the products and services
sold to consumers for their personal or family use
retailer - ANSWERS -business that sells products or services, or both, to consumers for their
personal or family use
,satisfying customer needs - ANSWERS -have the right merchandise, at the right price, in the
right quantities, and at the right time when the consumer wants it
distribution channel - ANSWERS -a set of firms that facilitate the movement of products from
the point of production to the point of sale to the ultimate consumer
vertical integration - ANSWERS -a firm performs more than one set of activities in the channel
backward integration - ANSWERS -arises when a retailer performs some distribution and
manufacturing activities
forward integration - ANSWERS -occurs when a manufacturer undertakes retailing activities
retailer functions - ANSWERS -providing assortments, breaking bulk, holding inventory, and
providing service & services
breaking bulk - ANSWERS -a function performed by retailers or wholesalers in which they
receive large quantities of merchandise
corporate social responsibility (CSR) - ANSWERS -the voluntary actions taken by a company to
address the ethical, social, and environmental impacts of its business operations and the
concerns of its stakeholders
CSR engagement - ANSWERS -1. companies engage only in CSR activities required by law
2. companies go engage in CSR activities that provide a short-term financial benefit to the
company
3. companies operate responsibly because they believe this is the "right thing" to do
4. companies engage in socially and environmentally responsible actions because they believe
these activities must be done for the "well-being" of everyone
,retail council of Canada (RCC) - ANSWERS -an industry-funded, not-for-profit association that
provides support for merchants, vendors, and suppliers so that they are able to meet the
challenges of offering goods and services to consumers in a competitive marketplace
retail management decision process - ANSWERS -1. understand the world of retailing
2. develop a retail strategy
3. implement the retail strategy
4. ethics and legal considerations
intratype competition - ANSWERS -competition between retailers of the same type (e.g.
Safeway vs. Save-On Foods)
variety - ANSWERS -the number of different merchandise categories within a store or
department
scrambled merhandising - ANSWERS -offering of merchandise not typically associated with the
store type, such as clothing in a drugstore
intertype competition - ANSWERS -competition between retailers that sell similar merchandise
using different formats, such as discount and department stores
retail strategy - ANSWERS -indicates how the firm plans to focus its resources to accomplish its
objectives
identifies: the target market(s) toward which the retailer will direct its efforts; the nature of the
merchandise and/or services the retailer will offer to satisfy needs of the target market; and
how the retailer will build a long-term advantage over competitors
, strategic decision areas - ANSWERS -retail market strategy, financial objectives, location strategy,
organizational design & human resources management strategies, retail information & supply
chain management systems, and customer relationship management
customer relationship management (CRM) - ANSWERS -a business philosophy and set of
strategies, programs, and systems that focus on identifying and building loyalty with a firm's
most-valued customers
retail mix - ANSWERS -decision variables retailers use to satisfy customer needs and influence
their purchase decisions
product - ANSWERS -types of merchandise/services offered (e.g., intensity, assortment)
place - ANSWERS -length of channels, hybrid channel approaches, types of distribution channels
(e.g., movement, flow of goods, distribution channels)
physical - ANSWERS -theme of the store, emotional attachment customer derives from the
store, layout, design measure of what it is like to shop in the store (e.g., atmosphere, climate)
price - ANSWERS -value perception (e.g., quality, value, price)
people - ANSWERS -product knowledge and policies; getting customers in and out efficiently
(e.g., knowledge, service)
promotion - ANSWERS -public relations, sales promotion, advertising, direct marketing, personal
selling (e.g., promotional communication mix)
process - ANSWERS -ensure consistent behaviours and performance; includes internal and
external processes (e.g., standards, protocols, variability)
1-6 Exam Questions and Answers36
Intangibility - ANSWERS -services are generally intangible, such as performances or actions
rather than objects. ex) health care services
Simultaneous Production & Consumption - ANSWERS -products are typically made in factories,
stored, and then sold by a retailer, while service providers create and deliver the service as the
customer is consuming it. ex) the food you're eating at a restaurant is almost always prepared
and consumed at the same time
Perishability - ANSWERS -because the creation and consumption of services are inseparable,
services are perishable, meaning they can't be saved, stored, or resold, in contrast to
merchandise which can be held in inventory until bought ex) you cannot regift a massage that
you just received
Inconsistency - ANSWERS -merchandise is often produced by machines with very tight quality
control, whereas services are performances that are produced by inidentical people. ex) a
waiter at a restaurant will not produce the same experience as his co-worker might
Competitive Models - ANSWERS -
retailing - ANSWERS -the set of business activities that add value to the products and services
sold to consumers for their personal or family use
retailer - ANSWERS -business that sells products or services, or both, to consumers for their
personal or family use
,satisfying customer needs - ANSWERS -have the right merchandise, at the right price, in the
right quantities, and at the right time when the consumer wants it
distribution channel - ANSWERS -a set of firms that facilitate the movement of products from
the point of production to the point of sale to the ultimate consumer
vertical integration - ANSWERS -a firm performs more than one set of activities in the channel
backward integration - ANSWERS -arises when a retailer performs some distribution and
manufacturing activities
forward integration - ANSWERS -occurs when a manufacturer undertakes retailing activities
retailer functions - ANSWERS -providing assortments, breaking bulk, holding inventory, and
providing service & services
breaking bulk - ANSWERS -a function performed by retailers or wholesalers in which they
receive large quantities of merchandise
corporate social responsibility (CSR) - ANSWERS -the voluntary actions taken by a company to
address the ethical, social, and environmental impacts of its business operations and the
concerns of its stakeholders
CSR engagement - ANSWERS -1. companies engage only in CSR activities required by law
2. companies go engage in CSR activities that provide a short-term financial benefit to the
company
3. companies operate responsibly because they believe this is the "right thing" to do
4. companies engage in socially and environmentally responsible actions because they believe
these activities must be done for the "well-being" of everyone
,retail council of Canada (RCC) - ANSWERS -an industry-funded, not-for-profit association that
provides support for merchants, vendors, and suppliers so that they are able to meet the
challenges of offering goods and services to consumers in a competitive marketplace
retail management decision process - ANSWERS -1. understand the world of retailing
2. develop a retail strategy
3. implement the retail strategy
4. ethics and legal considerations
intratype competition - ANSWERS -competition between retailers of the same type (e.g.
Safeway vs. Save-On Foods)
variety - ANSWERS -the number of different merchandise categories within a store or
department
scrambled merhandising - ANSWERS -offering of merchandise not typically associated with the
store type, such as clothing in a drugstore
intertype competition - ANSWERS -competition between retailers that sell similar merchandise
using different formats, such as discount and department stores
retail strategy - ANSWERS -indicates how the firm plans to focus its resources to accomplish its
objectives
identifies: the target market(s) toward which the retailer will direct its efforts; the nature of the
merchandise and/or services the retailer will offer to satisfy needs of the target market; and
how the retailer will build a long-term advantage over competitors
, strategic decision areas - ANSWERS -retail market strategy, financial objectives, location strategy,
organizational design & human resources management strategies, retail information & supply
chain management systems, and customer relationship management
customer relationship management (CRM) - ANSWERS -a business philosophy and set of
strategies, programs, and systems that focus on identifying and building loyalty with a firm's
most-valued customers
retail mix - ANSWERS -decision variables retailers use to satisfy customer needs and influence
their purchase decisions
product - ANSWERS -types of merchandise/services offered (e.g., intensity, assortment)
place - ANSWERS -length of channels, hybrid channel approaches, types of distribution channels
(e.g., movement, flow of goods, distribution channels)
physical - ANSWERS -theme of the store, emotional attachment customer derives from the
store, layout, design measure of what it is like to shop in the store (e.g., atmosphere, climate)
price - ANSWERS -value perception (e.g., quality, value, price)
people - ANSWERS -product knowledge and policies; getting customers in and out efficiently
(e.g., knowledge, service)
promotion - ANSWERS -public relations, sales promotion, advertising, direct marketing, personal
selling (e.g., promotional communication mix)
process - ANSWERS -ensure consistent behaviours and performance; includes internal and
external processes (e.g., standards, protocols, variability)
