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business
retailing management
Questions and Answers of
Retailing Management
List the advantages and disadvantages of alternative store layouts. LO17-2
Describe how to assign store floor space to merchandise departments and categories. LO17-3
Illustrate the best techniques for merchandise presentation. LO17-4
Understand how retailers can create a more appealing shopping experience. LO17-5
One of the fastest-growing sectors of the population is the over-60 age group. Customers in this group may have limitations in their vision, hearing, and movement. How can retailers develop store
Assume you have been hired as a consultant to assess a local discount store’s floor plan and space productivity. Look back at Chapter 7 and decide which analytical tools and ratios you would use to
What are the different types of design that can be used in a store layout? How does the layout impact the types of fixtures used to display merchandise? Describe why some stores are more suited for a
As an architect for retail space, you are responsible for Americans with Disabilities Act compliance. How would you make sure that a store’s retail layout both meets accessibility requirements and
What are the advantages and disadvantages of offering virtual dressing rooms from the retailer’s perspective? LO17-2
Complete the following table by briefly describing how the different retail formats could use each of the areas listed to enhance the store’s image and atmosphere. LO17-2
Identify the new media elements. LO15-1
Identify the traditional media elements. LO15-2
List the steps involved in developing a communication program. LO15-3
What are the positive and negative aspects of direct marketing from the customer’s perspective? LO15-3
What types of sales promotions have been successful with you as a consumer? Which ones have not been successful? Explain your responses. LO15-3
What factors should be considered in dividing up the advertising budget among a store’s different merchandise areas? Which of the following should receive the highest advertising budget: staple,
Why do some online retailers include editorials and customer reviews along with product information on their websites? Explain how this may influence the consumer’s buying behavior. LO15-3
Assume you work for a large consumer packaged-goods firm that has learned its latest line of snack foods is selling very slowly in retail stores. Recommend a strategy for listening to what consumers
As an intern for Dunkin’, you have been asked to develop a social media campaign for a new glazed muffin. The objective of the campaign is to increase awareness and trial of the new line of
Understand the channels used by retailers. LO4-1
Compare the relative strengths of the major retail channels: stores;Internet, mobile, and social; and catalog and other nonstore channels. LO4-2
Describe the opportunities associated with a true omnichannel strategy. LO4-3
Analyze the challenges facing multichannel and omnichannel retailers. LO4-4
Why are store-based retailers aggressively pursuing sales through Internet channels? LO4-3
What are the differences among a multichannel, cross-channel, and omnichannel retailer? Provide an example of each. LO4-3
What aspects of omnichannel retailing benefit you as a consumer? LO4-3
Choose a retailer from whom you have purchased through multiple channels. Is it a multichannel, cross-channel, or omnichannel retailer?Justify your answer. LO4-3
Using the same retailer that you chose in the previous question, how well has it integrated its operations across channels? How similar and different are its assortments and prices? Should it do
Do you participate in showrooming? Why or why not? LO4-3
From a customer’s perspective, what are the benefits and limitations of stores? Internet? Mobile? Social? Catalogs and other nonstore channels? LO4-3
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;
Describe how to acquire and retain employees. LO16-1
Illustrate effective leadership strategies of a retail manager. LO16-2
Explore the various strategies retail managers can undertake to control costs. LO16-3
Summarize how retailers are typically organized. LO16-4
Identify the legal issues involved with human resource management. LO16-5
How do on-the-job training, Internet training, and classroom training differ? What are the benefits and limitations of each approach? LO16-1
Give examples of a situation in which a manager of a luxury fashion retailer should utilize different leadership styles. LO16-1
Using the interview questions in Exhibit 16–3, role-play with another student in the class as both the interviewer and the applicant for an assistant store manager position at a store of your
Name some laws and regulations that affect the employee management process. Which do you believe are the easiest for retailers to adhere to? Which are violated the most often? LO16-1
What’s the difference between extrinsic and intrinsic rewards? What are the effects of these rewards on the behavior of retail employees?Under what conditions would you recommend that a retailer
What are the advantages and disadvantages of the different forms of compensation programs described in this chapter? Considering the disadvantages only, how can department managers lessen the effects
When evaluating retail employees, some stores use a quantitative approach that relies on checklists and numerical scores similar to the form in Exhibit 16–5. Other stores use a more qualitative
Top retailers, including Walmart and Target, increasingly rely on selfcheckout and other robotic technologies in their stores. What are the benefits to the retailer of integrating these technologies
Discuss how retailers can reduce shrinkage from shoplifting and employee theft. LO16-1
What are some similarities and differences with regard to how small retailers and large department stores are organized? LO16-1
Identify how retailers balance customer service through personalization versus standardization. LO18-1
Explain how customers evaluate a retailer’s customer service. LO18-2
Indicate the activities a retailer can undertake to provide highquality customer service. LO18-3
Describe technology enhancement of social presence. LO18-4
Articulate retailers’ service failure strategies. LO18-5
Both Zappos and McDonald’s are noted for their high-quality customer service, but each approaches providing quality service differently. Describe this difference. Why has each of these retailers
Consider customer service at IKEA. How does this retailer utilize a self-service model to gain a competitive advantage over traditional furniture stores? LO18-3
Consider a situation in which you received poor customer service in a retail store or from a service provider. Did you make the store’s management aware of your experience? To whom did you relay
Gaps analysis provides a systematic method for examining a customer service program’s effectiveness. Top management has told an information systems manager that customers are complaining about the
How can retailers provide high-quality personalized service?Use an optometrist’s office that also sells eyeglass frames and fills prescriptions for contact lenses as your example. How does this
Describe the seven critical elements of digital retailing. LO3-1
Outline how mobile and social retailing work. LO3-2
Understand the differences among paid, owned, and earned media. LO3-3
Define the central factors for selecting an influencer partner. LO3-4
Recognize and understand the components of a digital retailing strategy. LO3-5
Walmart and Macy’s both sell clothing, but each targets different markets. How should each retailer design websites targeted for its shoppers? Consider the 7C framework. LO3-3
Why might retailers need to use the different types of digital retailing detailed in this chapter? LO3-3
Express is a clothing retailer targeting young professionals. Which social media websites does it use to reach its customers? LO3-3
How is Sephora using social and mobile media to ensure its continued relevance and status? Which of its innovative efforts seem most likely to succeed, in your view? LO3-3
Define earned media. Why are they so important? How can a retailer increase its presence in earned media channels? LO3-3
Distinguish between organic and paid search. When searching for products, which do you click on more often? Why? LO3-3
What are the important factors to consider when partnering with an influencer? What are some pros and cons of working with influencers for retailers? LO3-3
Micro influencers are highly effective, with 82 percent of consumers saying they are highly likely to follow their recommendations. Why are these influencers so successful? Are you more likely to
Review the future trends discussed in the chapter. Which do you think will be the most important for retailers? Explain your response. LO3-3
Discuss the difference between click paths and customer attribution.How can retailers use these analytic tools? LO3-3
Why is calculating ROI difficult for influencers and social media? In addition, why it is important to undertake this difficult effort? LO3-3
Define retail strategy. LO6-1
Illustrate how retailers build a sustainable competitive advantage. LO6-2
Classify the different strategic growth opportunities retailers pursue. LO6-3
Identify issues that arise as domestic retailers become global retailers. LO6-4
Know the steps retailers go through to develop a strategic plan. LO6-5
For each of the three retailers discussed at the beginning of the chapter(Sephora, Patagonia, and Apple), describe its strategy and the basis of its competitive advantage. LO6-3
Give an example of a market penetration, a retail format development, a market expansion, and a diversification growth strategy that a store called Performance Bicycle might use. LO6-3
Do a SWOT analysis for McDonald’s(https://corporate.mcdonalds.com/corpmcd/home.html). What is its mission? What are its strengths and weaknesses? What opportunities and environmental threats might
What are Neiman Marcus’s (www.neimanmarcus.com/) and PetSmart’s (www.petsmart.com/) bases for sustainable competitive advantage? Are these attributes sustainable or easily copied? LO6-3
Assume you are interested in opening a casual or fine dining restaurant in your town. Go through the steps in the strategic planning process shown in Exhibit 6–7. Focus on conducting a SWOT
The Gap Inc. (www.gapinc.com/en-us) owns several chains, including Old Navy, Banana Republic, Intermix, Janie & Jack, and Athleta. What type of growth opportunity was the Gap pursuing when it opened
Amazon.com started as an Internet retailer selling books. Then it pursued a variety of growth opportunities, including expanding to groceries, DVDs, apparel, software, and travel services;
Describe the types of retail locations available to retailers. LO8-1
Review the types of unplanned locations. LO8-2
Analyze the characteristics of the different types of shopping centers. LO8-3
Discuss nontraditional retail locations. LO8-4
Match the locations to the retailer’s strategy. LO8-5
Review the societal and legal considerations in selecting locations. LO8-6
Why is store location such an important decision for retailers? LO8-3
Pick your favorite store. Describe the advantages and disadvantages of its current location, given its store type and target market. LO8-3
Home Depot typically locates in either a power center or a freestanding site. What are the strengths of each location for this home improvement retailer? LO8-3
Staples and Office Depot/OfficeMax have strong multichannel strategies. How do competition and the Internet affect strategies for locating stores? LO8-3
In many malls, quick-service food retailers are located together in an area known as a food court. What are the advantages and disadvantages of this location for food retailers? LO8-3
Why would The Container Store locate in a neighborhood shopping center instead of a regional shopping mall? LO8-3
How does the mall near your home or university combine shopping and entertainment experiences? LO8-3
Consider a big city that has invested in an urban renaissance. What components of the gentrification project attract both residents and visiting tourists to spend time shopping, eating, and
Summarize the factors considered in locating multiple stores. LO9-1
Review the characteristics of a particular site. LO9-2
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