Retailing Management 9th Edition By Michael Levy – Test Bank

Overview

True / False Questions

1.
(p. 292) Customer loyalty can be enhanced by creating an appealing brand image.

TRUE
Customer loyalty can be enhanced by creating an appealing brand image, offering exclusive merchandise, providing convenient locations, and providing an engaging shopping experience.

AACSB: Analytic
Accessibility: Keyboard Navigation
Blooms: Understand
Difficulty: 1 Easy
Learning Objective: 11-01 Describe the customer relationship management process.
Topic: The CRM Process

2.
(p. 292) Customer loyalty is limited to ensuring satisfaction by offering a wide assortment of products.

FALSE
Customer loyalty is more than having customers satisfied with a retailer and making repeat visits.

AACSB: Communication
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 2 Medium
Learning Objective: 11-01 Describe the customer relationship management process.
Topic: The CRM Process

3.
(p. 293-294) A customer database normally contains information on customer preferences.

TRUE
A customer database contains the following information: transactions, customer contacts, preferences, and descriptive information.

AACSB: Communication
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 11-02 Understand how customer shopping data are collected.
Topic: Collecting Customer Shopping Data

4.
(p. 297) Cookies are not equipped to track customer interactions on social networking sites.

FALSE
Cookies can enable the collection of data about what pages people have viewed, other sites the people have visited, how they spend money online, and their interactions on social networking sites.

AACSB: Technology
Accessibility: Keyboard Navigation
Blooms: Understand
Difficulty: 2 Medium
Learning Objective: 11-02 Understand how customer shopping data are collected.
Topic: Collecting Customer Shopping Data

5.
(p. 298) The customer lifetime value (CLV) is the expected contribution from the customer to the retailer’s profits over his or her entire relationship with the retailer.

TRUE
Retailers often use information in their customer databases to determine how valuable each customer is to their firm. The value of a customer, called customer lifetime value (CLV), is the expected contribution from the customer to the retailer’s profits over their entire relationship with the retailer.

AACSB: Communication
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 2 Medium
Learning Objective: 11-03 Explain the methods used to analyze customer data and identify target customers.
Topic: Analyzing Customer Data and Identifying Target Customers

6.
(p. 299) A specific type of data analysis that focuses on the composition of the bundle of merchandise purchased by a consumer during a single shopping occasion is called a market basket analysis.

TRUE
The market basket analysis analyzes what the customer bought during a single visit. This information is useful to place merchandise in a store.

AACSB: Technology
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 2 Medium
Learning Objective: 11-03 Explain the methods used to analyze customer data and identify target customers.
Topic: Analyzing Customer Data and Identifying Target Customers

7.
(p. 303) Frequent-shopper programs are expensive to implement and manage.

TRUE
Frequent-shopper programs are expensive in most cases.

AACSB: Reflective Thinking
Accessibility: Keyboard Navigation
Blooms: Understand
Difficulty: 2 Medium
Learning Objective: 11-04 Outline how retailers develop their frequent-shopper programs.
Topic: Developing CRM through Frequent-Shopper Programs

8.
(p. 304) Effective frequent-shopper programs are transparent.

TRUE
Effective programs are transparent in that they make it easy for customers to keep track of their spending and available rewards.

AACSB: Communication
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 2 Medium
Learning Objective: 11-04 Outline how retailers develop their frequent-shopper programs.
Topic: Developing CRM through Frequent-Shopper Programs

9.
(p. 306) Customers in the platinum segment place more value on the price of a product.

FALSE
Customers in platinum quartile buy a lot of the merchandise sold by the retailer and often place more value on customer service than price.

AACSB: Reflective Thinking
Accessibility: Keyboard Navigation
Blooms: Understand
Difficulty: 2 Medium
Learning Objective: 11-05 Explain various ways to implement effective CRM programs.
Topic: Implementing CRM Programs

10.
(p. 307) Developing retail programs for small groups or individual customers is referred to as 1-to-1 retailing.

TRUE
Developing retail programs for small groups or individual customers is referred to as 1-to-1 retailing. Many small, local retailers have always practiced 1-to-1 retailing.