Exam 2

Question 1

an emotional commitment by an employee to the organization and its goals

employees care about their work and their company

Answer 1

employee engagement

Question 2

• low profits

- high costs

Answer 2

financial performance problems

Question 3

• decreased motivation and effort
• poor customer service
• lower job satisfaction
• greater turnover

Answer 3

employee response

Question 4

-layoffs
-freeze on hiring and promotion
-reduced training
-salary freeze
greater use of part-time employees and more outsourcing

Answer 4

retailers response

Question 5

• Control expenses to be profitable
• Retailers often hire people with little or no experience
• A modest investment in hiring more staff may result in a significant increase in sales

Answer 5

expense control

Question 6

• Employee needs vary depending on the time of day, day of week, time of year, and promotion schedule
• To minimize costs, retailers should complement their full-time employees with part-time workers
• Part-time employees are less expensive than comparable full-time employees

Answer 6

part time employees

Question 7

of employees leaving their job during the year / # of positions

Answer 7

employee turn over

Question 8

Marketing programs that attract “best and brightest” potential employees

EX: Starbucks – “Love What You Do”
Southwest – “Free to Actually Enjoy What You Are Doing”

Answer 8

employment marketing(branding)

Question 9

Recruit “the right people”

Simply seeking the best and the brightest may not always be the most effective approach

Answer 9

selective hiring

Question 10

The set of values, traditions, and customs of a firm that guides employee behavior
Behavior enforced by social pressure

Answer 10

organization culture

Question 11

Indicate what employees should do

Behavior enforced by managers

Answer 11

policies and supervision

Question 12

Human resource management activity designed to realize the benefits of a diverse workforce, which includes but is not limited to skin color, nationality, gender, sexual orientation, and people with disabilities.

Answer 12

managing diversity

Question 13

Groups of minority employees that exchange information and provide emotional and career support

Answer 13

support group and mentoring

Question 14

Identifies the activities to be performed by specific employees, and determines the lines of authority and responsibility in the firm

Answer 14

organizational structure

Question 15

satisfied when purchases accomplish a specific task.

Answer 15

utilitarian needs

Question 16

satisfied when purchases accomplish a need for entertainment, emotional, and recreational experience.

Answer 16

hedonic needs

Question 17

the set of alternatives the customer evaluates when making a choice of what retailer to patronize.

• Increase beliefs about performance
• Change customers’ importance weights
• Add a new benefit

Answer 17

consideration set

Question 18

Retail Market Segment- a group of customers who are attracted to the same retail mix because they have similar needs.

Answer 18

maket segmentation

Question 19

refers to how people live, how they spend their time and money, what activities they pursue, and their attitudes and opinions about the world in which they live.

Answer 19

Lifestyle, or psychographics

Question 20

can influence customers with the same demographics or lifestyle

Answer 20

buy situations

Question 21

segmentation groups customers seeking similar benefits.

Answer 21

benefit

Question 22

do not have centralized management that determines what stores will be in a development.

Answer 22

unplanned locations

Question 23

the shopping center and/or manager makes and enforces policies that govern store operations.

Answer 23

planned locations

Question 24

`Total floor area designed for the retailer’s occupancy.

Answer 24

gross leasable area

Question 25

Minimize the customer’s effort to get the product or service by locating store close to where customers are located

Answer 25

connivence shopping

Question 26

Customers have a good idea of what type of product they want, but don’t have a strong preference for brand, model or retailer. Competing retailers locate near one another

Answer 26

comparison shopping

Question 27

Customers know what they want Designer labels Convenient location matters less

Answer 27

specialty shopping

Question 28

A business philosophy and set of strategies, programs, and systems that focus on identifying and building loyalty with a retailer’s most valuable customers.

Answer 28

Customer relationship management

Question 29

Committed to purchasing merchandise and services from a retailer. Won’t go to a competitor even if they offer something better

Answer 29

customer loyalty

Question 30

trust the retailer and don’t keep track of specific things the retailer has given them versus what they have given the retailer

Answer 30

communal

Question 31

Trade money for value, keep track of exchanges.

Answer 31

exchange

Question 32

Collecting customer data Analyzing the customer data and identifying target customers Developing CRM programs Implementing CRM programs

Answer 32

CRM process

Question 33

The expected contribution from the customer to the retailer’s profits over his or her entire relationship with the retailer

Answer 33

Estimating Lifetime Value (LTV)

Question 34

Data analysis focusing upon the composition of the customer’s market basket – what items are bought during a single shopping occasion?

Answer 34

market basket analysis

Question 35

Recency: how recently customers have made a purchase Frequency: how frequently they make purchases Monetary: how much they have bought

Answer 35

RFM Analysis

Question 36

converting iron and gold customers into platinum customers

Answer 36

customer alchemy

Question 37

as a way to achieve customer alchemy Involves offering and selling more products and services to existing customers and increasing the retailer’s share of wallet with these customers

Answer 37

add-on selling

Question 38

computer-to-computer exchange of business documents between retailers and vendors

Answer 38

electronic data interchange

Question 39

The aspect of supply chain that refers to the planning, implementation, and control of the efficient flow and storage of goods, services, and related information from the point of origin to the point of consumption to meet customers’ requirements.

Answer 39

logistics

Question 40

The process of moving returned goods from their customer destination for the purpose of capturing value or proper disposal.

Answer 40

reverse logistics

Question 41

consumer direct fulfillment, is a system in which retailers receive orders from customers and relay these orders to vendors and then the vendors ship the merchandise ordered directly to the customer.

Answer 41

drop shopping

Question 42

used for years by companies that sell bulky products such as lumber, iron, and petroleum, as well as catalog and mail-order companies

Answer 42

drop shipping