CH 5: Retail Market Strategy

1. conditions in the retail market that make it difficult for the firms to enter the market:
1. sales economies
2. customer loyalty
3. the availability of great location
1. CORRECT: barriers to entry
2. target market
3. joint venture
4. customer loyalty
2. describes the nature of the retailer's operations (retail mi! that it "ill use to satisfy the
needs of its target market
1. INCORRECT: retail market
2. retailing concept
3. CORRECT: retail format
4. retail strategy
3. products developed and marketed by a retailer and available only from the retailer (e.g.
#ictoria's $ecret% &ara% 'ap!
1. INCORRECT: barriers to entry
2. direct investments
3. vertical integration
4. CORRECT: private label brands (store brands!
4. sales associates in one department attempt to sell complementary merchandise from other
departments to their customers
1. INCORRECT: positioning
2. CORRECT: cross(selling
3. franchising
4. related
). activities that focus on identifying and building loyalty "ith a retailer's most valued
customers
1. INCORRECT: customer loyalty
2. strategic retail planning process
CH 5: Retail Market Strategy
3. bargaining po"er of vendors
4. CORRECT: fre*uent shopper (loyalty! programs
+. $,-. /nalysis
1. CORRECT: situation audit
2. $,-. /nalysis
3. retail format
4. retail market
0. the market segment(s! to"ard "hich the retailer plans to focus its resources and retail mi
1. INCORRECT: retail market
2. CORRECT: target market
3. related
4. unrelated
1. indicates ho" "ell the business can sei2e opportunities
1. INCORRECT: sales economies
2. situation audit
3. franchising
4. CORRECT: $,-. /nalysis
3. offers the lo"est risk and re*uires the least investment
1. INCORRECT: positioning
2. $,-. /nalysis
3. cross(selling
4. CORRECT: franchising
14. sales associates in one department attempt to sell complementary merchandise from other
departments to their customers
1. CORRECT: cross(selling
2. franchising
3. related
4. positioning
CH 5: Retail Market Strategy
11. describes the nature of the retailer's operations (retail mi! that it "ill use to satisfy the
needs of its target market
1. INCORRECT: retail strategy
2. retail market
3. CORRECT: retail format
4. retailing concept
12. gro"th opportunities directed to"ard eisting customers using the retailer's present
retailing format
1. CORRECT: market penetration gro"th opportunities
2. diversification gro"th opportunity
3. market epansion gro"th opportunity
4. retail format development gro"th opportunity
13. the fre*uencies and intensity of reactions to actions undertaken by competitiors
1. CORRECT: competitive rivalry
2. retail strategy
3. customer loyalty
4. positioning
14. describes diversification by retailers into "holesaling or manufacturing
1. INCORRECT: retail format
2. direct investments
3. retail strategy
4. CORRECT: vertical integration
1). a group of customers "ith similar needs (a market segment! and a group of retailers that
satisfy those needs using a similar retail format
1. INCORRECT: retail strategy
2. target market
3. retail format
4. CORRECT: retail market
CH 5: Retail Market Strategy
1+. a group of customers "ith similar needs (a market segment! and a group of retailers that
satisfy those needs using a similar retail format
1. INCORRECT: retail format
2. target market
3. CORRECT: retail market
4. retail strategy
10. the set of steps a retailer goes through to develop a strategy and plan:
1. 5efine the 6usiness 7ission
2. 8onduct a $ituation /udit
3. 9dentify $trategic -pportunities
4. :valuate $trategic -pportunities
). :stablish $pecific -bjectives ; /llocate <esources
+. 5evelop a <etail 7i to 9mplement the $trategy
0. :valuate =erformance ; 7ake /djustments
1. INCORRECT: vertical integration
2. retailing concept
3. CORRECT: strategic retail planning process
4. strategic alliance
11. has little commonality bet"een the retailer's present business and the ne" gro"th
opportunity
1. INCORRECT: franchising
2. target market
3. CORRECT: unrelated
4. related
13. the market segment(s! to"ard "hich the retailer plans to focus its resources and retail mi
1. INCORRECT: related
2. CORRECT: target market
3. unrelated
4. retail market
24. sales associates in one department attempt to sell complementary merchandise from other
departments to their customers
CH 5: Retail Market Strategy
1. INCORRECT: positioning
2. CORRECT: cross(selling
3. franchising
4. related
21. indicates ho" "ell the business can sei2e opportunities
1. CORRECT: $,-. /nalysis
2. situation audit
3. franchising
4. cross(selling
22. the design and implementation of a retail mi to create an image of the retailer in the
customer's mind relative to its competitiors
1. INCORRECT: franchising
2. cross(selling
3. CORRECT: positioning
4. joint venture
23. activities that focus on identifying and building loyalty "ith a retailer's most valued
customers
1. INCORRECT: bargaining po"er of vendors
2. CORRECT: fre*uent shopper (loyalty! programs
3. customer loyalty
4. retail strategy
24. a statement identifying:
1. the retailers target market
2. the format the retailer plans to use to satisfy the target's needs
3. the bases on "hich the retailer plans to build a sustainable comparative advantage
1. INCORRECT: retail format
2. retail market
3. related
4. CORRECT: retail strategy
CH 5: Retail Market Strategy
2). formed "hen the entering retailer pools its resources "ith a local retailer to form a ne"
company in "hich o"nership% control% and profits are shared
1. INCORRECT: unrelated
2. positioning
3. CORRECT: joint venture
4. related
2+. retailer's are so dependent on large% important vendors that their profits are adversely
affected
1. INCORRECT: barriers to entry
2. retailing concept
3. CORRECT: bargaining po"er of vendors
4. joint venture
20. opportunity "here retailer develops a ne" retail format for the same target
1. INCORRECT: market epansion gro"th opportunity
2. diversification gro"th opportunity
3. market penetration gro"th opportunities
4. CORRECT: retail format development gro"th opportunity
21. gro"th opportunities directed to"ard eisting customers using the retailer's present
retailing format
1. INCORRECT: retail format development gro"th opportunity
2. CORRECT: market penetration gro"th opportunities
3. market epansion gro"th opportunity
4. diversification gro"th opportunity
23. the market segment(s! to"ard "hich the retailer plans to focus its resources and retail mi
1. CORRECT: target market
2. related
3. unrelated
4. retail market
CH 5: Retail Market Strategy
34. $,-. /nalysis
1. INCORRECT: retail format
2. CORRECT: situation audit
3. retail market
4. positioning
31. retailer's are so dependent on large% important vendors that their profits are adversely
affected
1. INCORRECT: barriers to entry
2. CORRECT: bargaining po"er of vendors
3. joint venture
4. retailing concept
32. involves using the retailer's eisting retail format in ne" market segments
1. INCORRECT: market penetration gro"th opportunities
2. CORRECT: market epansion gro"th opportunity
3. diversification gro"th opportunity
4. retail format development gro"th opportunity
33. retailer's are so dependent on large% important vendors that their profits are adversely
affected
1. INCORRECT: barriers to entry
2. CORRECT: bargaining po"er of vendors
3. joint venture
4. retailing concept
34. involves using the retailer's eisting retail format in ne" market segments
1. INCORRECT: market penetration gro"th opportunities
2. CORRECT: market epansion gro"th opportunity
3. diversification gro"th opportunity
4. retail format development gro"th opportunity
CH 5: Retail Market Strategy
3). conditions in the retail market that make it difficult for the firms to enter the market:
1. sales economies
2. customer loyalty
3. the availability of great location
1. INCORRECT: joint venture
2. target market
3. customer loyalty
4. CORRECT: barriers to entry
3+. the set of steps a retailer goes through to develop a strategy and plan:
1. 5efine the 6usiness 7ission
2. 8onduct a $ituation /udit
3. 9dentify $trategic -pportunities
4. :valuate $trategic -pportunities
). :stablish $pecific -bjectives ; /llocate <esources
+. 5evelop a <etail 7i to 9mplement the $trategy
0. :valuate =erformance ; 7ake /djustments
1. INCORRECT: retailing concept
2. retail market
3. strategic alliance
4. CORRECT: strategic retail planning process
30. indicates ho" "ell the business can sei2e opportunities
1. INCORRECT: situation audit
2. franchising
3. CORRECT: $,-. /nalysis
4. sales economies
31. in the retail market that make it difficult for the firms to enter the market:
1. sales economies
2. customer loyalty
3. the availability of great location
1. INCORRECT: joint venture
2. target market
3. customer loyalty
4. CORRECT: barriers to entry
CH 5: Retail Market Strategy
33. the set of steps a retailer goes through to develop a strategy and plan:
1. 5efine the 6usiness 7ission
2. 8onduct a $ituation /udit
3. 9dentify $trategic -pportunities
4. :valuate $trategic -pportunities
). :stablish $pecific -bjectives ; /llocate <esources
+. 5evelop a <etail 7i to 9mplement the $trategy
0. :valuate =erformance ; 7ake /djustments
1. INCORRECT: retailing concept
2. retail market
3. strategic alliance
4. CORRECT: strategic retail planning process
44. indicates ho" "ell the business can sei2e opportunities
1. INCORRECT: situation audit
2. franchising
3. CORRECT: $,-. /nalysis
4. sales economies