What are the major environmental forces that should be constantly ...

[itsmyluck]

What are the major environmental forces that should be constantly assessed by retailers?

Question 2

Which of the following statements about dual distribution is incorrect?
 a. It may have an adverse effect on manufacturer-retailer relationships.
  b. It can take place when a manufacturer opens it own retail store in a market area when it feels that the current retailers handling the product line are not doing an adequate job.
  c. All dual distribution arrangements are illegal.
  d. It is legal for a manufacturer to manage a corporately owned vertical marketing system that competes with independent retailers that the manufacturer also supplies.
  e. It occurs when a manufacturer sells to independent retailers and also through its own retail outlets.

[Chou]

Answer to Question 1

The major environmental forces that should be constantly assessed by retailers are:
 Consumer behavior: The retailer will need to understand the determinants of shopping behavior so that it can identify likely changes in that behavior and develop appropriate strategies.
 Competitor behavior: Retailers must develop a competitive strategy that is not easily imitated, which happens all too often with price cuts.
 Supply chain behavior: The behavior of members of the retailer's supply chain can have a significant impact on the retailer's future.
 Socioeconomic environment: The retailer must understand how economic and demographic trends will influence revenues and costs in the future and adapt its strategy according to these changes.
 Technological environment: The technical frontiers of the retail system encompass new and better ways of performing standard retail functions. The retailer must always be aware of opportunities for lowering operating costs.
 Legal and ethical environment: The retailer should be familiar with local, state, and federal regulations of the retail system. It must also understand evolving legal patterns in order to be able to design future retail strategies that are legally defensible. At the same time, the retailer must operate at the highest level of ethical behavior.

Answer to Question 2

C

[itsmyluck]

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