MAR3231 FSU Hopkins Exam 1
Retailing - CORRECT ANSWER-Encompasses the business activities involved
in selling goods and services to consumers for their personal, family, or
household use. It includes every sale to the final consumer.
OR
How firms deliver products to end users.
Ideal Retailer - CORRECT ANSWER-- People person
- Flexible
- Be decisive
- Have analytical skills
- Have stamina
Durable good stores - CORRECT ANSWER-Motor vehicles & parts dealers,
furniture, electronics and appliance stores, hardware stores
- Make up 30% of US retail store sales
Nondurable goods/services stores - CORRECT ANSWER-General merchandise
stores, food & beverage stores, health & personal care, gas stations, book &
music shops, eating & drinking places
- Make up 70% if US retail store sales
Issues in Retailing - CORRECT ANSWER-- How can we best serve our
customers while earning a fair profit? (race to the bottom)
- How can we stand out in a highly competitive environment where consumers
have so many choices? (Paradox of Choice)
,- How can we grow our business while retaining core loyal customers?
- Communicating with millennials
Paradox of Choice - CORRECT ANSWER-- Less is more
- Too much choice is stressful
- 30% bought jam w/ less choices
- 3% bought jam w/ 24 choices
Core Customer - CORRECT ANSWER-- The customer that is targeted by the
store
- Is at the center of retailing activities
Millennials - CORRECT ANSWER-- want to own less and lease more
- do research online before purchasing
- "real time" customers
- wait until the last minute to shop
- price matching: see a product in-store, then go buy it on Amazon
The Retail Philosophy - Customer Value - CORRECT ANSWER-Retailers can
best address these questions by:
- fully understanding and applying the basic principles of retailing
- maintaining a focused retail strategy
Examples:
- Godiva
- AMEX
, - Tiffany & Co.
(customer places value on these brands)
The 10 largest (per sales) Retailers in the United States (2016) - CORRECT
ANSWER-1. Wal-mart
2. Kroger
3. Costco
4. Home Depot
5. Walgreens
6. Target
7. CVS
8. Amazon
9. Albertsons
10. Lowe's
Distribution Channel - CORRECT ANSWER-All of the businesses and people
involved in the physical movement and transfer of ownership of goods and
services from producer to consumer
Distribution Channel Flow - CORRECT ANSWER-Manufacturer --> Wholesaler
--> Retailer --> Final Consumer
Retailer's Role in the Sorting Process - CORRECT ANSWER-Retailer gets
products from multiple wholesalers, who get their products from many
manufacturers, and then one retailer then distributes all of those products to the
consumers
Sorting Process - CORRECT ANSWER-Retailers collect an assortment from
various sources, buy in large quantities, and sell in small amounts
Figure 1-5: The Retailer's Role in the Sorting Process
Why don't manufacturers sell directly to consumers? - CORRECT ANSWER--
Lack of infrastructure
- Risk of upsetting retailers or supply chain partner
Retailing - CORRECT ANSWER-Encompasses the business activities involved
in selling goods and services to consumers for their personal, family, or
household use. It includes every sale to the final consumer.
OR
How firms deliver products to end users.
Ideal Retailer - CORRECT ANSWER-- People person
- Flexible
- Be decisive
- Have analytical skills
- Have stamina
Durable good stores - CORRECT ANSWER-Motor vehicles & parts dealers,
furniture, electronics and appliance stores, hardware stores
- Make up 30% of US retail store sales
Nondurable goods/services stores - CORRECT ANSWER-General merchandise
stores, food & beverage stores, health & personal care, gas stations, book &
music shops, eating & drinking places
- Make up 70% if US retail store sales
Issues in Retailing - CORRECT ANSWER-- How can we best serve our
customers while earning a fair profit? (race to the bottom)
- How can we stand out in a highly competitive environment where consumers
have so many choices? (Paradox of Choice)
,- How can we grow our business while retaining core loyal customers?
- Communicating with millennials
Paradox of Choice - CORRECT ANSWER-- Less is more
- Too much choice is stressful
- 30% bought jam w/ less choices
- 3% bought jam w/ 24 choices
Core Customer - CORRECT ANSWER-- The customer that is targeted by the
store
- Is at the center of retailing activities
Millennials - CORRECT ANSWER-- want to own less and lease more
- do research online before purchasing
- "real time" customers
- wait until the last minute to shop
- price matching: see a product in-store, then go buy it on Amazon
The Retail Philosophy - Customer Value - CORRECT ANSWER-Retailers can
best address these questions by:
- fully understanding and applying the basic principles of retailing
- maintaining a focused retail strategy
Examples:
- Godiva
- AMEX
, - Tiffany & Co.
(customer places value on these brands)
The 10 largest (per sales) Retailers in the United States (2016) - CORRECT
ANSWER-1. Wal-mart
2. Kroger
3. Costco
4. Home Depot
5. Walgreens
6. Target
7. CVS
8. Amazon
9. Albertsons
10. Lowe's
Distribution Channel - CORRECT ANSWER-All of the businesses and people
involved in the physical movement and transfer of ownership of goods and
services from producer to consumer
Distribution Channel Flow - CORRECT ANSWER-Manufacturer --> Wholesaler
--> Retailer --> Final Consumer
Retailer's Role in the Sorting Process - CORRECT ANSWER-Retailer gets
products from multiple wholesalers, who get their products from many
manufacturers, and then one retailer then distributes all of those products to the
consumers
Sorting Process - CORRECT ANSWER-Retailers collect an assortment from
various sources, buy in large quantities, and sell in small amounts
Figure 1-5: The Retailer's Role in the Sorting Process
Why don't manufacturers sell directly to consumers? - CORRECT ANSWER--
Lack of infrastructure
- Risk of upsetting retailers or supply chain partner
