Chapter 1

Question 1

Retail

Answer 1

the process of selling products and/or services to customers to earn a profit. A retailer is defined as a business or person that sells products and/or services to customers. Each retailer selects merchandise or services based on the needs of a specific store, region, or community.

Question 2

Customers

Answer 2

are people who purchase goods or services from a business.

Question 3

Products

Answer 3

physical goods that are bought and sold, such as food, clothes, and household items.

Question 4

Services

Answer 4

are intangible transactions.

Question 5

Goal of Retailing

Answer 5

to provide customers with the merchandise and services they want—when, where, and how they want to purchase them.

Question 6

Retailers

Answer 6

connecting customers with the products and services they want and need to purchase.

Question 7

Manufacturer

Answer 7

produces finished products

Question 8

Wholesaler

Answer 8

buys large quantities of products directly from manufacturer and then sell smaller amounts to retailers

Question 9

Product distribution channel options

Answer 9

• manufacturer, wholesaler, retailer, customer
• manufacturer, retailer distribution, retailer, customer
• online retailer, manufacturer, customer

Question 10

Retail ecosystem

Answer 10

An interconnected system of approaches for meeting the goal of retailing, which is to provide customers with the merchandise and services they want – when, where and how they want to experience and purchase them.

Question 11

Multichannel Retailing

Answer 11

retailing offers customers the opportunity to interact with the multiple options in their ecosystem. The retailer’s multiple channels are available for consumers to use but are not necessarily systemically connected to each other.

ie. may carry specific merchandise in store and offer different via ecommerce

Question 12

Omnichannel Retailing

Answer 12

omnichannel retailing integrates the channels to create a seamless consumer experience through the use of technology.

Question 13

type retail ownership

Independent

Answer 13

typically a single store or a small, regional chain, these retailers are able to tailor their offerings to meet the needs of local customers. Ex: “Mom-and-Pop stores.

Question 14

type of retail ownership

Corporation

Answer 14

a business owned by shareholders through publicly traded stock. These retailers usually have centralized decision-making for their multiple store locations. Ex: Walmart, Target

Question 15

type of retail ownership

Private Company

Answer 15

even though ownership is typically limited to a single or small number of owner investors, private businesses can be large companies with many retail locations and centralized business operations. Ex: Albertsons, Ashley Stewart

Question 16

type of reail ownership

Franchise

Answer 16

a license is granted to another entity to retail a company’s products or services in a particular area; consistency in the customer experience is critical. Ex: Pizza Hut, Edible Arrangements

Question 17

Retail drives US economy (statistics)

Answer 17

support one in four U.S. jobs
at least 20% of jobs in every state,
supporting 42 million employees across the nation. hiring over half of all working teens. There are over 1.5 million U.S. employees at Walmart alone!

Question 18

Majority retailers are

Answer 18

independently owned

Question 19

Customer Mindset

Answer 19

Customers value different things from retailers, customer service, and their shopping experiences

Question 20

Comparison Shopper

Answer 20

a customer who spends a lot of time checking out products and prices through online sites, visiting different stores, comparing retailer ads and/or getting the opinions of others, either personally or through social media. A comparison shopper can take a long time to make a purchase decision and might return to a retailer several times before making a purchase. These shoppers are certain that they want the best price and will return the item and buy it again at another retailer in order to get it.

Question 21

Recreational shopper

Answer 21

This customer views shopping as a fun occasion rather than looking for specific merchandise or services. The recreational shopper’s mindset is adventure. This type of customer enjoys walking through stores, trying on clothes, testing gadgets, talking to sales associates, and learning about new products. Shopping does not necessarily include making a purchase.

Question 22

Impulse buyer

Answer 22

This shopper’s mindset allows quick purchase decisions, often for inexpensive items that do not have a high importance to the buyer. Retailers entice shoppers in stores to purchase additional items in the checkout area as they wait to purchase their main items because impulse buyers often purchase them.

Question 23

innovation/trend buyer

Answer 23

It is important to this person to be one of the first to purchase the newest technology, car, eat at the just-opened restaurant, or see the latest movie. An innovation/trend buyer has an early adopter mindset and wants to be recognized as a trendsetter by others.

Question 24

follower

Answer 24

: This customer wants to find out what’s trendy before making a purchase. They have a more cautious mindset and are reluctant to be the first to try new products.

Question 25

Customer loyalty life cycle

Answer 25

1. customer has a want or need 2. considers different options 3. chooses a buying option 4. likes or dislikes experience 5. purchases from retailer again 6. tells others/become loyal shopper

Question 26

interruptions of customer loyalty life cycle

Answer 26

Employees might deliver poor customer service Competitors may offer better products, services, or prices An online site or app may be difficult for customers to use, discouraging them from purchasing Product quality can be lower than a customer expected, causing the customer to return merchandise If customers have a good experience, they often don't tell anyone. But if they have a bad experience, they often tell a lot of people! Social media enables customer reviews to reach many people very quickly

Question 27

Demographic data

Answer 27

or quantifiable information, such as household size, resident age, income, education, occupation, and place of residence, help retailers determine customer behavior.

Question 28

motivation

Answer 28

or the reason someone behaves a certain way, influences the way consumers make purchase decisions.

Question 29

External commercial cues

Answer 29

Retailer marketing keeps their products and services in front of the customer. The delicious-looking food in a fast food restaurant television advertisement is an example of a commercial cue.

Question 30

External Social Cues

Answer 30

People - family, friends, coworkers, etc. - can influence behavior. If your friend says, “Everyone on Twitter says the new burger restaurant downtown is great! Let's check it out,” that's a social cue.

Question 31

Internal Physical Cues

Answer 31

Sometimes, internal needs drive the decision to purchase. If you think, “I'm hungry. I'm going to drive over to Burger King for lunch,” that's a physical cue.

Question 32

# 5 stage decision making process step 1 Recognize a need

Answer 32

an internal or external cue often results in the recognition that a product or service may be needed. “I just saw that dress Miley Cyrus was wearing on Instagram, I want that!” or “The washing machine is very old. Maybe I should get a new one.” At this point, it's just a consideration and may go no further.

Question 33

# 5 stage decision making step 2 Search for information

Answer 33

As the motivation to purchase the item increases, the person begins to consider ways that their wants and needs should be satisfied. “Let me look online for the performance where the Instagram pic was taken. It may have the dress designer’s name.” or “I could check out Best Buy and the Home Depot for a washer; Let me look online to see what they have available.”

Question 34

# 5 stage decision making process step 3 Evaluate alternatives

Answer 34

The customer has done their research and is ready to compare options to purchase. “Miley’s dress is from a designer that is very expensive, but an online search shows that Urban Outfitters and Zara have similar styles that are much less expensive. I want to try it on though,” or “Both Best Buy and Home Depot have the washer I want, both offer a price match guarantee and free delivery, but the service was so much better at... “

Question 35

# 5 stage decision making step 4 purchase

Answer 35

Criteria such as retailer reputation, quality of service, price, product availability, the proximity of the store to the customer's home, and other factors figure into the customer's decision to buy at one location versus another.

Question 36

# 5 stage decision making step 5 Review decision and experience

Answer 36

After the purchase is complete, the customer reflects on whether the product or service met their expectations and about the quality of the customer service provided by the retailer. If they are happy with these things, they are more likely to repeat the purchase behavior and recommend the retailer to others. If they do not have a positive experience, the next time they need to make a similar purchase, they will reevaluate the alternatives and choose a different option. In addition, they may tell others to avoid the product or service and the retailer.

Question 37

Connecting with customer

Answer 37

Greeting and making a connection with the customer as soon as possible sets the tone for a great experience. It's important to smile, make eye contact, and pleasantly greet a customer as they approach, whether they just came through the front door or anywhere in the store. Ask how you can help them with their shopping today. A confident and positive attitude helps to begin building a relationship with the customer right away.

Question 38

Provide positive and memorable experience by?

Answer 38

maintain the relationship by treating each customer as an important shopper in the store - Be attentive. Keep eye contact, an open, welcoming stance, and a suitable tone when speaking with the customer. Listen carefully. Repeat the customer

Question 39

How to leave a great impression

Answer 39

Verify that their needs are met during the visit or a plan was put in place to help them Ask if there are other ways that you can help them Thank the customer for shopping at the store and invite them to come back and shop again Acknowledge customers who leave the store without making a purchase. They may be searching for information or evaluating alternatives. A pleasant goodbye can be the difference that brings them back to your store to make a purchase in the future.

Question 40

social media influencer

Answer 40

a user who has established credibility in a specific industry or content area, has access to a huge audience through their follower network, and can persuade others to act based on their recommendations

Question 41

company website

Answer 41

website that represents a retailer on the Internet. Retailer websites typically provide customers with a way to browse and purchase products and services that the company offers, along with information about store location and hours, career opportunities, and general information about the company

Question 42

mobile apps

Answer 42

software applications are designed to run on small wireless devices such as smartphones, tablets, or smartwatches. Retailer apps enable customers to purchase merchandise, view promotions and E coupons, track loyalty or reward program activity, and experience other retail content customers can usually use apps to place orders for pickup or home delivery.

Question 43

Self Service kiosk

Answer 43

are interactive computers with customized software that provide access to information and applications. Retailer in-store kiosk capabilities differ, but customers may use them to order food and drink items for immediate consumption, locate merchandise in a store, access product information, find gift registries, request employee assistance, buy merchandise online, and more.

Question 44

self checkout

Answer 44

allow customers to scan, pack, and pay for their merchandise without the assistance of a store cashier, although an employee is always close by in case the customer needs help. Some customers use self-checkouts because they like to interact with the technology.

Question 45

digital signage

Answer 45

uses technology to electronically display digital images, videos, web pages, and text. Retailers use digital signs to attract in-store customers to merchandise, provide price and product information, and share brand content and messaging with customers to enhance their shopping experience.

Question 46

QR code

Answer 46

specifically bar codes that contain product or store information. In a store, a customer typically scans a QR code with their smartphone to access the data that it displays, which might be product information, store information, or even a discount code or coupon. QR codes are usually used by retail employees to track inventory.

Question 47

company culture

Answer 47

unique way company employee act with each other and customers

Question 48

quality customer service

Answer 48

delivering a positive, memorable experience that is more than what the customer expected

Question 49

$ lost annually due to poor customer service

Answer 49

60-70 billion

Question 50

quality customer service includes

Answer 50

* treating with respect * listening * being professinoal * communication * knowledgeable on products * postive and patient * solve problems and confident

Question 51

company brand

Answer 51

overall impression gathered from information that is seen, heard, experienced