Retailing is an important marketing activity that helps match products and servi

Question

Retailing is an important marketing activity that helps match products and services that are created by businesses to the consumers who desire them. To create value (and charge a higher price), retailers provide a utility that consumers desire and are willing to pay for such as providing services at the right location, providing access at the right time, making the purchase process easier, or having the ability to customize products and services. The same holds true for the Coffee Collective. When Martha was establishing her college-crowd focused atmosphere, she needed to identify retail items that her customers wanted and expected to see. This includes the constant evaluation and adjustment of retail offerings—such as the addition of single-serve organic dog biscuits—to make sure that she is meeting the needs and expectations of her customers. She knows that she must have an effective retail strategy that fits her business model and partner with suppliers that carry products that fit with her target market.

Retailing is an important marketing component that involves all activities in selling, renting, and providing products and services to consumers for personal, family or household use. By working with producers, businesses create value by meeting customer’s needs and delivering the products and services that they want.

1

To create ________ utility for her customers, Martha decides to open the Coffee Collective close to the college campus.

place

directive

form

possession

time

2 When Martha was starting the Coffee Collective, she purchased the right furniture—painted with certain colors, hired the right employees, and is now selling appropriate snacks. These are all examples of which component of the retail mix?

People

Communication

Location

Merchandise

Pricing

Explanation / Answer

(1) PLACE utility

Place utility refers to availability of the product or services at a conveniently available place, which Martha is offering by placing her store near college campus.

(2) COMMUNICATION

Martha has hired capable and effective staff, established the right ambience, and selling the right snacks, which result in an excellent communication with her target customer base.

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