1. What is showrooming?

– Having part of a retail store dedicated to displaying large items, which would take up too much space to display on normal shelves

– Having sales associates conduct live demonstrations of products in-store

– When customers visit a retailer to research and see a product, but end up purchasing it somewhere else

– When a sales associate hits his or her sales goals, and starts celebrating in front of other people without sharing the wealth or even a slice of cake

2. The main difference between backward integration and forward integration, with regards to supply chain activities, is that backward-integrated retailers undertake retailing activities (i.e. selling to consumers), whereas forward-integrated retailers undertake manufacturing activities (i.e. producing products).

True / False

3. For food retailers, the power perimeter is best described as:

– The area of the store that offers food options, such as power bars, to athletes

– The high-foot-traffic, outer walls of the store

– Two times length, plus two times width

– The walking area of the store that purposely slows down customers

You have been hired as a marketing manager for NuTech Appliance Company. The company manufactures major home appliances, such as refrigerators, stoves, and dishwashers. NuTech is about to add a new dishwasher to its lineup. The new appliance will have standard features, appearance, and quality, except that it will be considerably quieter than similar models from the competition. The president of the company, Marta Feliz, has asked you to prepare a memo describing the factors you believe the company should consider in pricing the new product.

Required Write a memo to Feliz. Describe the measurement or measurements you would hope to maximize through a pricing decision. Then explain what factors should be considered, including information from within and outside of the company. Describe estimates that you would want to develop before making a final pricing decision.