Retail Marketing Midterm 2

Front 1

Strategy Mix is used for ?

Back 1

Identifying and understand consumers

Front 2

Strategy mix contains ?

Back 2

Store Location

Operating procedures (management styles)

goods/services offered (broad/depth/qualtity/etc)

pricing tactics

store atmosphere

customer services

promotional methods: advertising, displays

Front 3

Demographics gives insight to what ?

Back 3

consumers value now/tomorrow, how to reach them

Front 4

Demographic data is ?

Back 4

Quantifiable, easily identifiable, measurable

(market size, gender, age, income, education, retail sales)

Front 5

Consumer lifestyle social factors:

Back 5

Culture, reference groups, social class, time utilization, household life cycle, family life cycle

Front 6

Consumer Lifestyles Psychological Factors:

Back 6

Personality, attitudes, perceived risk, class consciousness, purchase importance

Front 7

How psychological factors, influence outcomes?

(perceived risk) example

Back 7

Factors affecting perceived risk (budget, urgency, number of alternatives)

->

types of perceived risk (functional, physical, financial, social, psychological, time)

-> (consumer)

outcome (purchase new product, stick with old brand, talk to friends)

Front 8

When creating a lifestyle profile consider? (FIRST 5)

Back 8

culture (norms, values, customs)

social class (potential consumers lower class? social mobile?)

reference groups (who do they look for advice from, differ for good categories)

family lifecycle (stages of cycle are bulk customers)

Time Utilization (how do people spend time? how do they feel about shopping time?)

Front 9

When creating a lifestyle profile consider? (2ND 5)

Back 9

Personality (personality traits)

Class consciousness ( status-conscious?)

Attitudes (feel about the retailer)

Perceived risk (risk with retailer, Which goods) Important of purchase (important are goods/services)

Front 10

What are some modern implications of customer demographics and lifestyles ?

Back 10

Consumer sophistication and confidence

Shoppers are more knowledgable and cosmopolitan

more up to date on trends

willing to sacrifice in other areas for style

gender roles

Front 11

A modern implication of customer demographics and lifestyles that attribute to a rise in efficiency of shopping ?

Back 11

Lack of time, people working longer hours

Retailers: longer hours, on floor personnel, self checkout.

Front 12

Some component lifestyles ? (modern implications of customer demographics and lifestyles)

Back 12

Shopping is less predictable and more individualistic, situation based shopping.

Front 13

The consumer decision process ?

Back 13

2 parts: process and factors affecting the process

stimulus, problem awareness, information search, evaluation of alternatives, purchase, post purchase behavior

Front 14

Factors affecting the consumer decision process ?

Back 14

Demographics and Lifestyle

Front 15

Influences of consumers purchase or non purchase (key factors in purchase act)

Back 15

retailers place of purchase (store, www, home)

retailers purchase terms (price, cash vs credit)

retailers good/service availability (stock on hand, delivery)

Front 16

Risk and time - types of consumer decision making ?

Back 16

Routine decision making (low risk)

Limited (medium risk)

Extended (high risk)

Front 17

Impulse purchasing 3 types ?

Back 17

Completely unplanned

partially unplanned

unplanned substitution

Front 18

Types of consumer loyalty ?

Back 18

Inertia Loyalty - due to inconvenience, switching brands

Mercenary Loyalty - what you give me to be loyal

True loyalty - trust, shared values

Cult loyalty - rejecting brand/values

Front 19

Steps to devising a target market strategy ?

Back 19

Determine target market approach

Select specific target market

Study characteristics, needs

Examine how customers make decisions

Develop retail strategy mix

Front 20

What makes retail shoppers tick ?

Back 20

Lifestyles, demographics, needs and desires, environmental factors, retailer actions, shopping attitudes and behaviors

Front 21

Discretionary income = ?

Back 21

money left after taxes and buying necessities

Front 22

When developing a target market profile a retailer should identify ?

Back 22

key consumer needs and desires

motives (reasons for behaviors)

Front 23

Attitudes towards shopping include things like ?

Back 23

Thrifting (price, convenience)

Allures (fun shopping experience)

Speedsters, etc

Front 24

2 different types of Stimulus = ?

Back 24

cue (social or commercial) or a drive (physical)

Front 25

Information search involves ?

Back 25

alternatives to solve problem and characteristics of alternatives

Front 26

Cognitive dissonance = ?

more likely when?

Back 26

that the correct decision has been made

we spend more time making buying decisions

Front 27

Types of decision making ?

Back 27

extended (full use of decision process)

limited (each step but not a lot of time)

routine (habit, skips steps)

Front 28

Concentrated marketing is to ?

Back 28

1 distance customer group

Front 29

Differentiated marketing is to ?

Back 29

two or more distinct groups

Front 30

Location is important because ?

Back 30

hard to overcome bad location (inflexible)

moving location looses customer loyalty

financial

90% of sales are in store?

Front 31

Considerations for location:

Back 31

population competition, transpiration, parking, costs, length of agreement, legal.

Front 32

Steps in choosing a location:

Back 32

evaluate geographic area (residents and retailers)

type to locate (isolated, unplanned, planed business district, shopping centre, etc)

select above option.

analyze alternate sites

Front 33

Trading area is ?

Back 33

geographic area containing customers, can have trading area overlap where same customers are served by both branches.

Front 34

Why use trading area analysis?

Back 34

discover demographics

focus on promotional activities

internet impact

risk of competitors

discovery of geographic weaknesses

review of other issues

Front 35

Geographic information system (GIS) is software which ?

Back 35

mapping with with key data for:

population demographics

data on purchases

listing of current and proposed competition

Front 36

3 parts of size and shape of trading area:

Back 36

Primary (50-80% of customers) - closest to store, high density of customers in population.

Secondary (15-20%)

Fringe (the rest)

Front 37

when a store has a wider trading area (more travel) it can be ?

Back 37

Destination store

Front 38

Parasite store = ?

Back 38

doesn't create its own traffic

Front 39

Store types with largest trading area:

moving down to smallest:

Back 39

Departments stores

Convenience stores

Front 40

3 computer trading area analysis models for assessing store locations:

Back 40

analog, regression, gravity

Front 41

Riley's law is of ____ ?

Back 41

retail gravitation - traditional trading area delineation

Front 42

Riley's law establishes ?

Back 42

point of difference - indifference between two cities or communities so that the trading area can be determined.

Front 43

Huffs law = ?

Back 43

shopper attraction on basis of product assortment and locations, travel time to locations (sensitivity)

Front 44

Factors to consider in evaluating retail trading areas?

Back 44

population size/characteristics

availability of labor

closeness to source of supply

promotional facilitates (media)

economic base (dominate industry, industrial structure)

competitive situation

availability of locations

regulations

Front 45

A saturated trading area has ?

unbalanced too many or too less are called?

Back 45

proper amount of stores to satisfy need

overstored and understored

Front 46

3 types of locations ?

Back 46

Isolate store, unplanned businesses district,

planned shopping centre

Front 47

Isolated stores advantages ?

Back 47

A: no direct competition, low rental, high visibility, easy parking, excellent traffic if can generate

Front 48

Isolated stores disadvantages ?

Back 48

Difficulty attracting customers, no cost sharing

Front 49

Unplanned business districts include:

Back 49

CBD

Secondary BD

Neighborhood BD

String

Front 50

CBD strength and weaknesses ?

Back 50

S: assortment of goods, public transportation, variety of store types and positioning, high traffic.

W: traffic and parking, travel time for outsiders, poor condition/image for some cities, high rent and tax

Front 51

What is string? A and D?

Back 51

Similar product/servies, main road, congested

A: lower rent/operating costs, good visibility

D: low variety, higher ad costs, high travel

Front 52

Secondary BD = ?

Back 52

unplanned, usually found by intersection of 2 major streets (city or town)

Front 53

Neighborhood BD =?

Back 53

unplanned that appeals to convenience of single residential area.

Front 54

Types of planned shopping centers ?

Back 54

Regional, community, neighborhood

Front 55

Advantages and Disadvantages of planned shopping centers ?

Back 55

A: assortment, one stop, traffic, sharing costs

D: limited flexibility, competition, higher rent

Front 56

Regional Centres = ?

Back 56

Planned shopping

50-150 stores, driving time of trading area = 30 min

Front 57

Neighborhood centres = ?

Back 57

planned shopping

5-15 stores

up to 15 min driving time

usually revolves around principle tenant like supermarket or drug store

Front 58

Megamall = ? size

Back 58

1 million + sq ft

Front 59

The optimum site location for a particular store is called?

Back 59

100% location

Front 60

100% location is made up of?

Back 60

Pedestrian traffic

Vehicular traffic

Parking

Transportation

Store composition

specific size

terms of occupancy

overall rating

Front 61

Types of leases ?

Back 61

Strait (fix amount p/month)

Percentage (relative to sales and profit)

Graduated (increase $ over time)

Net (calls for all maintenance costs to be paid for by retailer (electric, insurance, repair)

Maintenance (rent will increase if owners taxes and bills increase beyond certain point)

Front 62

Advantages of Ownership =?

Back 62

no chance of increase rent or loss of lease, mortgage is stable, flexible,

Front 63

Advantages of Leasing = ?

Back 63

Min initial investment, less risk, access to prime sites,

Front 64

Managing a retail business compromises 3 steps ?

Back 64

setting up organizational structure, managing personnel, managing operations

Front 65

Managing retail considering customer (target market needs) to dos?

Back 65

Sufficient/appropriate personnel (knowledgable)

store facilities

branch specific to needs

changing needs addressed

Front 66

Managing retail considering employee needs to dos?

Back 66

positions challenging and satisfying

promotion program

participate in decision making

communication

fair

rewards

Front 67

Managing retail considering management needs to dos?

Back 67

easy to employ

reporting, motivating

levels of organization

reporting to supervisor

etc

Front 68

Organizational chart illustrates ?

Back 68

hierarchal relationships and authority

Front 69

Span of control ?

Back 69

number of people directly reporting to the next level, assumes coordination through direct supervision

Front 70

Tall structures = ?

Back 70

When companies grow.

Higher overhead costs, worse upward information, focus power to managers

Front 71

Firms moving to flatter structures (delayering) because ?

Back 71

tall hierarchies have higher mgmt and overhead costs, less info flow and staff empowerment.

Front 72

Problems with flatter hierarchies?

Back 72

undermines management functions, increase workload and stress, restrict management career development

Front 73

Factors Influencing Span of Control = ?

Back 73

if we have a low number then it means we havea very tall structure

Front 74

Mazur Plan =?

Back 74

Divides retail into 4 functional areas:

merchandising

publicity

store management

accounting and control

Front 75

A job description consists of ?

Back 75

Title, Position reports to, objectives, duties and responsibilities, committees and meetings.

Front 76

Strategy Mix ? change to do what?

whats hardest to change?

Back 76

what retailer canchange for more profitabilityStore location isthe hardest to change

Front 77

Why are consumers moresophisticated today?

Back 77

Instant access - impatience

Front 78

Unplanned Substitution = ?

Back 78

you walk into a store and a new substitutionyou didn’t know about changes your mind

Front 79

Shape of tradingarea can be affected by ?

Back 79

geographic and competitors

Front 80

Operations blueprint = ?

Back 80

lists all operating functions to be performed and who's responsible.

What retailer has to do and why it is valuable

Front 81

Blueprint suggestions are ?

list them....

Back 81

Actions:

Customer, onstage/visual employee, backstage employee, support processes, physical evidence

Front 82

Top down spacemanagement = ?

Back 82

how we want to structure store, then products

Front 83

Bottom up = ?

Back 83

how we want to displace products, then builds up to departments

Front 84

Efficient personnel utilization would be ?

Back 84

reduce turnover, increase customer service and productivity, offer better flexibility

Front 85

Credit Cards charge between ? transaction fees

Back 85

1.5% and 5%

3rd greatest expense of retailers

Front 86

"checkout" surcharge fees charge ?

Back 86

customers the credit % transaction fee

Front 87

Benefits of outsourcing ?

Back 87

reduce cost of employee time, capitalize on experience and economies of scale

increase flexibility and reduce store costs

Front 88

Some examples of outsourcing for marketers ?

Back 88

Dataanalysis, website, legal

Front 89

Crisis Management - should have ?

Back 89

Contingency plans for as many possible crisis situations

Promo responses and clear chain of command