Lesson 1

Question 1

Retailing

Answer 1

Business activities involved in selling goods and services to consumers for their personal, family, or household use.

Question 2

Every sale to final consumers

Answer 2

Retailing

Question 3

Provide issues in retailing

Answer 3

1. Best serve consumers while earning a fair profit.
2. To stand out in a highly competitive environment.
3. To grow a business while retaining a core of loyal consumers.

Question 4

Philosophy of retailing

Answer 4

Retailing will address issues by fully understanding and applying the basic principles of retailing (well-structured, systematic, and focused retail strategy)

Question 5

Candidate for a retailing career

Answer 5

Be a person
Be flexible
Be decisive
Have analytical skills
Have patience

Question 6

Channel of distribution

Answer 6

Manufacturer - Wholesaler - Retailer - Final consumer

Question 7

Retailer’s role in the sorting process

Answer 7

Manufacturer of Brand A & B - Wholesaler - Retailer - Consumer of Brand A & B

Question 8

Multi-channel retailing

Answer 8

A retailer who sells to consumers through multiple retail formats (websites or physical stores).

Question 9

Types of distribution: EXCLUSIVE

Answer 9

An agreement that allows a specific retailer as the only one in a specific geographic area to carry certain products.

Question 10

Type of Distribution: INTENSIVE

Answer 10

Selling through as many retailers as possible.

Question 11

Types of distribution: SELECTIVE

Answer 11

Selling through a moderate or selected number of retailers.

Question 12

Characteristics affecting retailer’s strategy

Answer 12

1. Small, average scale
2. Popularity of stores through location
3. Impulse purchase

Question 13

Customer service

Answer 13

Activities undertaken by a retailer in a connection with the basic goods/services it sells.

Question 14

Examples/types of customer service

Answer 14

Store hours
Parking
Shopper-friendliness
Credit acceptance
Sales people

Question 15

Relationship retailing

Answer 15

Seek to establish and maintain long-term bonds with consumers, rather than act as if each sale transactions is a completely new consumer.

Question 16

Its harder to get new consumers than to keep existing ones happy

Answer 16

Effective relationship retailing: WIN-WIN APPROACH

Question 17

2 Types of an Effective Relationship Retailing

Answer 17

1. USE A WIN-WIN APPROACH
2. DEVELOP A CUSTOMER BASE

Question 18

Ongoing consumer contact is improved with information on people’s attributes and shopping behaviors.

Answer 18

Effective relationship retailing: DEVELOP A CUSTOMER BASE