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business
retailing management

Questions and Answers of Retailing Management

Do you have any other suggestions for improving the store’s sales? (Appendix)
What would you recommend? Why? (Appendix)
Why did this service breakdown occur? (Appendix)
How was this service gap related to the other gaps (standards, knowledge, delivery, and communications) described in the Gaps model in Chapter 18?
What steps does Nordstrom take to implement its strategy of providing outstanding customer service? (Appendix)
How do these activities enable Nordstrom to reduce the gaps between perceived service and customer expectations, as described in Chapter 18?
What are the pros and cons of Nordstrom’s approach to developing a competitive advantage through customer service?
Using the five dimensions of service quality(reliability, assurance, tangibility, empathy, and responsiveness), evaluate Zipcar.
Compare Zipcar’s service quality performance with that of the most recent car rental service (e.g., Avis, Hertz) that you may have used.
How well has Zipcar handled service failure situations?What could it do to improve recovery efforts? (Appendix)
Have you ever visited an Apple store? If yes, did you make a purchase? Why or why not? (Appendix)
Why are Apple’s store layout and atmosphere important? (Appendix)
Is Apple America’s best retailer? (Appendix)
Visit your local Apple store. Does the layout of the store help to provide you with an excellent customer experience? Explain.
What are the reasons that Harrods has been successful at selling advertising on its digital signage network and other retailers have not? Why would consumer product manufacturers be interested in
What are the pluses and minuses for a retailer offering a digital network in its stores?
What is next for Yankee Holding Company, in general?Consider the three distinct brands under the ownership of Yankee Holding Company—YCC, Illuminations, and Aroma Naturals. Examine the websites of
It is helpful for a company to periodically assess its core target market in terms of demographics and lifestyles.The investor-owners of YCC, Madison Dearborn Partners LLC, don’t want to do an
Using Excel, create a column graph for U.S. pet industry expenditures over time. The y -axis will be sales in billions of dollars and the x -axis will be years.Go to the American Pet Products
Using Excel, create a pie graph for the most recent year of estimated U.S. pet expenditures by category.Be sure to label each pie wedge with the category name and percent value. Go to the American
How can PetSmart recruit, hire, and retain the best employees to support its brand strategy, meet customer expectations, and reach sales objectives? (Appendix)
What else could PetSmart do to increase store traffic, revenues, and profitability? (Appendix)
Consider other retailers that might begin to sell a larger assortment of pet products and services. How will this competition affect PetSmart? (Appendix)
Should Lindy change the emphasis of her merchandise mix to increase her sales? (Appendix)
Which products should have more emphasis? Which should have less? (Appendix)
What personnel decisions must Lindy face to improve her business? (Appendix)
How could someone like Lindy Armstrong balance the demands of her family and her business? (Appendix)
Distinguish between variety and assortment. Why are these important elements of the retail market structure? (LO-8).
What sorts of competitive pressures are confronting traditional grocery stores? What options do these stores have to ease the pressure? (LO-8).
What do off-price retailers need to do to compete against other formats in the future? (LO-8).
Compare and contrast the retail mixes of convenience stores, traditional supermarkets, supercenters, and warehouse stores. Can all of these food retail institutions be successful over the long run?
Why is Walmart, the largest retailer in the world, facing slower growth than in the past? What can it do to accelerate its growth? (LO-8).
The same brand and model of tablet is sold by specialty computer stores, discount stores, category specialists, online retailers, and warehouse stores. Why would a customer choose one retail format
Choose a product category that both you and your parents purchase (e.g., business clothing, casual clothing, music, electronic equipment, shampoo). In which type of store do you typically purchase
At many optical stores, you can get your eyes checked and purchase glasses or contact lenses. How is the shopping experience different for the service as compared to the product? Design a strategy to
Understand the nonstore channels offered by retailers.
Compare the benefits offered by the four major retail channels: stores, Internet, mobile, and catalogs.
Analyze the challenges facing multichannel retailers.
Consider the multichannel shopping experience in the future.
Why is the direct sales channel so much more popular and effective in Brazil than in the United States?
What are the pros and cons of Bass Pro Shops’ exciting store environment from the perspective of consumers?From the perspective of Bass Pro Shops?
Would you use these websites to plan your wedding?Why or why not?
Are these Internet channel activities consistent with its in-store brand?
CONTINUING CASE ASSIGNMENT: GO SHOPPING Assume that you are shopping on the Internet for an item in the same merchandise category you analyzed for the Comparison Shopping exercise in Chapter 2. Go to
INTERNET EXERCISE Go to the websites of J. Crew (www.jcrew.com), JCPenney (www.jcpenney.com), and American Eagle Outfitters (www.ae.com), and shop for a pair of khaki pants. Evaluate your shopping
INTERNET EXERCISE Assume that you are getting married and planning your wedding. Compare and contrast the usefulness of www.theknot.com and www.weddingchannel.com for planning your wedding. What
INTERNET AND SHOPPING EXERCISE Pick a merchandise category like microwave ovens, power drills, digital cameras, blenders, or coffee makers. Compare a retailer’s offering in its local store and on
INTERNET AND SHOPPING EXERCISE Access the websites of Home Depot and Macy’s using your mobile phone and computer. What are the differences in the ease of navigation when looking at the presentation
Why are store-based retailers aggressively pursuing sales through Internet channels? (Appendix)
From a customer’s perspective, what are the benefits and limitations of stores? Catalogs? Retailer websites? (Appendix)
Would you buy clothes on the basis of the way they look on a customized virtual model? Why or why not? (Appendix)
Why are the Internet and catalog channels so popular for gift giving? (Appendix)
Should a multichannel retailer offer the same assortment of merchandise for sale, at the same price, on its website and in its stores? Why or why not? (Appendix)
Which of the following categories of merchandise do you think could be sold most successfully through an Internet channel: jewelry; TV sets; computer software;high-fashion apparel; pharmaceuticals;
Assume you are interested in investing in a startup Internet retailer that targets people who enjoy active outdoor recreation, such as hiking, rock climbing, and kayaking. What merchandise and
What are the advantages to customers of accessing the Internet through a mobile device or a computer when browsing a website? When learning special promotions? (Appendix)
When you shop online for merchandise, how much time do you spend browsing versus buying? When you shop in a store for merchandise, how much time do you spend browsing versus buying? (Appendix)
Describe the process that consumers go through when making retail patronage and buying decisions.
Identify the different types of buying processes.
Summarize how the economy and social factors affect customer purchase decisions.
Determine why and how retailers group customers into market segments.
S How did you use the Internet to purchase your last car? Was your method of searching for information different than that of your parents?
Does feminizing a Lowe’s make it less attractive to men?
Do you like the “like” button? If yes, why? If no, why not?
How are your shopping habits different from someone you are close to of the opposite sex?
CONTINUING CASE ASSIGNMENT: GO SHOPPING Visit the retail store operated by the target firm for your continuing assignment. Determine all the things that the store does to try to stimulate customers
GO SHOPPING Go to a supermarket, and watch people selecting products to put in their shopping carts. How much time do they spend selecting products?Do some people spend more time than others?Why is
OLC EXERCISE Go to the student side of the book’s website to develop a multiattribute attitude model describing your evaluation of and decision about some relatively expensive product you bought
INTERNET EXERCISE To better understand the segmentation classification of consumers, Strategic Business Insights has developed the VALS tool, which uses psychology to segment people according to
INTERNET EXERCISE Retailers want to segment the market on the basis of the geographic classification of customers to select the best sites for their businesses. Go to the Esri Business Information
INTERNET EXERCISE Go to the following Internet sites offering information about the latest fashions: New York Magazine’s The Cut at http://nymag.com/thecut/, New York Times’ Fashion & Style at
Describe how service retailers, such as hotels, provide information to potential customers to answer questions about rates, services offered, and other amenities.
Considering the steps in the consumer buying process (Exhibit 4–1), describe how you (and your family) used this process to select your college or university. How many schools did you consider? How
In Exhibit 4–6, The Inner City Tenant is described.How should banks, restaurants, drugstores, and car dealers alter their retail mixes to meet the needs of this segment compared to the Top Rung
Any retailer’s goal is to get customers in its store so that they can find the merchandise that they are looking for and make a purchase at this location. How could a sporting goods retailer ensure
A family-owned used-book store across the street from a major university campus wants to identify the various segments in its market. What approaches might the store owner use to segment this
How does the buying decision process differ when consumers are shopping on the Internet or mobile device compared with shopping in a store in terms of locations or sites visited, time spent, and
Using the multiattribute attitude model, identify the probable choice of a local car dealer for a young, single woman and for a retired couple with limited income (see the accompanying table). What
Think of a recent purchase that you made, and describe how economic and social environmental factors (e.g., reference group, family, and culture)influenced your buying decision. How are retailers
Think about the merchandise sold at Office Depot, Staples, and Office Max, and list three to four types of merchandise that fall into extended problem solving, limited problem solving, and habitual
Define the retail strategy.
Illustrate how retailers build a sustainable competitive advantage.
Classify the different strategic growth opportunities retailers pursue.
Identify issues that arise as domestic retailers become global retailers.
Know the steps retailers go through to develop a strategic plan.
Why does IKEA’s private-label furniture create a sustainable competitive advantage?
How does the Container Store maintain its competitive advantage?
Given the Chinese government’s disdain for wet markets, do you think they will endure?
Could 7-Eleven adapt what it has learned in Indonesia to the United States to attract young urban customers?Would it want to?
Describe Hot Topic’s target market. How has this changed over time?
CONTINUING CASE ASSIGNMENT Prepare an analysis of the company you selected for the continuing assignment. Identify its direct competitors, its target market and positioning, its strategy with respect
INTERNET EXERCISE Visit the websites for IKEA (www.ikea.com) and Starbucks (www.starbucks.com). Are the look and feel of these Internet sites consistent with the in-store experience of these
INTERNET EXERCISE Go to the websites for Walmart (www.walmartstores.com), Carrefour(www.carrefour.fr), Royal Ahold (www.ahold.com), and Metro AG (www.metro.de). Which chain has the most global
GO SHOPPING Visit two stores that sell similar merchandise categories and cater to the same target segment(s). How are their retail formats (the elements in their retail mixes) similar? Dissimilar?
WEB OLC EXERCISE Go to the student side of the book’s website, and click on “Market Position Matrix.”Exercise 1: This spreadsheet describes an analysis of international growth opportunities.
For each of the four retailers discussed at the beginning of the chapter (Chipotle Mexican Grill , Lululemon, Chico’s, and Save-A-Lot), describe its strategy and the basis of its competitive
Choose a retailer, and describe how it has developed a competitive strategic advantage. LO-3
Give an example of a market penetration, a retail format development, a market expansion, and a diversification growth strategy that Best Buy might use. LO-3
Choose your favorite retailer. Draw and explain a positioning map, like that shown in Exhibit 5–3, that includes your retailer, retailers that sell the same types of merchandise, and the target
Do a SWOT analysis for McDonald’s. What is its mission? What are its strengths and weaknesses?What opportunities and environmental threats might it face over the next 10 years? How could it prepare

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