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Teaching Notes
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Case A32: Check this System Out
Professor David Ehrlich, Marymount University
Synopsis: A specialty store selling boat accessories considers using centralized checkout that might
enable the store to provide good service with fewer salespeople.
Use: Chapter 19 Generate a discussion of customer service.
Discussion Questions
1. Evaluate the advantages and disadvantages of Mr. Jackson’s new plan for organizing his store.
Advantages
Disadvantages
• Fewer salespeople
and lower labor costs.
• Less selling effort and thus
fewer add-on sales, lower sales
2. As a long-standing customer, what friendly advice would you offer David Jackson? Should he
implement the changes in all stores, wait another six months, or discontinue the changes? Why?
The results of this experiment are not really conclusive, while profits have gone up, the decline in
sales is disturbing, particularly when the sales have gone up in other stores. If the sales continue to
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3. Do you have a better plan for organizing Mr. Jackson’s store?
An alternative plan might involve dividing the stores into areas. The commodity type hardware
merchandise would be sold in an area with low customer service—no salespeople, just a clerk at a
Case A33: Closing a Sale
Professor Barton Weitz, University of Florida
Analyze each of the following techniques used by salespeople.
1. I always have “an ace in the hole,” one particular [men’s] suit in which a customer has shown an
interest. Or, after studying my customer carefully when he first comes in, I go back to the first suit
he tried on “for size,” and very often it is possible to make a sale with that first suit. It is important
to keep this suit out of sight and not bring out this “ace in the hole” until a sale cannot be made
with other suits.
4. Give your customer a choice, for instance between two VCR models. Don’t hesitate to ask, “Mr.
Jones, which model appeals to you, the Sony or Panasonic?” He will usually make a choice, which
is your cue to make a sale.
5. When I start talking with a customer about jewelry, the first thing I do is find out what price range
she is considering. Then I take her to the appropriate display case.
6. A man come in asking for a side-vented suit, but he wears a 46 coat and 42 pants. They just don’t
make that style suit in those sizes. But I try to please him and get a smaller size altered to fit him.
9. When customers object about price, I try to stress value. I go back over the quality features they are
getting in the merchandise and remind them that our store stands behind everything they sell.
Ancillary Cases and Teaching Notes
Teaching Notes
Case A33: Closing a Sale
Professor Barton Weitz, University of Florida
Synopsis: Nine vignettes that provide an opportunity to analyze selling techniques.
Use: Chapter 17 Illustrates the response in a retail selling environment.
Analysis
1. The best approach is not to save the “ace in hole,” but focus the presentation on this suit. It is the
suit the customer is most likely to buy.
5. Salespeople need to qualify customers. Showing a budget-minded customer a $400 necklace will
send her out the door. However, the salesperson should not be completely constrained by the initial
assessment of the customer’s price range. If none of the pieces are particularly appealing to the
customer, the salesperson should go to the next higher price range. It is the customer’s decision to
spend more for something she really likes.
6. While it is important to please the customer, the salesperson should make sure the customer will be
satisfied over the long run. If the altered suit is not going to look good on him, the salesperson
should find out why the customer wants the suit. If he wants something stylish, then suggest
another stylish suit that would look better on him.
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Case A34: Fuller’s: Who to Let Go?
Ralph Jason, president of Fuller’s, was unhappy, He had just learned that Fuller’s parent company,
Consolidated Stores, had been acquired by a foreign financial group, and all Consolidated divisions had
been ordered to reduce overhead expenses by at least 10 percent before the end of the fiscal year, four
months away. Having gone through a similar exercise for few years earlier, he wasn’t looking forward to
So he reviewed the nonpersonnel areas of the business: have two fewer trucks and drivers, postpone the
planned update of his computerized inventory systems, cut back the display department’s budget, hold
fewer fashion shows, reduce charitable contributions, and so on. But he was still short of the 10 percent
goal, and he knew he had to face the hardest choice of all—to cut $240,000 in executive personnel
expenses. Figuring that the fringe costs of employing executives was about 25 percent, he said, “I’ll just
have to find a combination of salaries that adds up to $180,000. I wish I didn’t—these people have
worked hard for me and shown great dedication.”
McCarthy, age 52, had joined Fuller’s out of high school as a stock boy, and had worked in the warehouse
for 34 years. As his years in the job grew, so had his knowledge. He had uncovered several incidents of
internal theft and had been rewarded each time. But over time, the warehouse jobs had become more
sophisticated. Jason reflected that in years to come he’d need people with state-of-the art computer
knowledge.
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At age 61, Boltz had always bought the store’s junior lingerie. She was a true old timer, and though she
had long since agreed to forgo annual raises, she continued to produce well for the company. However,
Consolidated had determined that junior lingerie was too hard to separate from the larger misses
departments and had already phased it out in many of its divisions.
competition from local discount stores.
Jason thought over each of these six cases with a sigh. Every one of these people would normally be
carried by the store for a variety of reasons. All had shown great devotion and at times had made huge
contributions to the store’s success. In selecting them as candidates for termination, Jason realized he had
to make several other borderline decisions. But he felt in Ingram’s case, he could combine better coats
with budget coats, as the other coat buyer appeared restless and in need to more challenge. He felt that
the warehouse organization could be revamped to take care of McCarthy’s various duties, though he
The salaries of any three of these people would add up to the required dollar savings, so he was relieved
that he would only have to dismiss three of the them. But which three?
Discussion Questions
1. What criteria would you use to select people to terminate? Why?
2. What are the pros and cons of terminating each person?
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Teaching Notes
Case A34: Fuller’s: Who to Let Go?
Synopsis: This case helps to describe the process in which a department store retailer (hypothetical
company) goes through to trim the number of executives in the firm. It will generate a
discussion of organizational functions and activities as well as a review of individual
backgrounds. Discuss key management issues evaluating employee potential and
termination. Illustrate career opportunities in retailing.
Use: Chapter 9 Discuss a key management issue-evaluating employee potential and termination.
Chapter 17 Illustrate issues in employee evaluation and store management.
Discussion Questions
1. What criteria would you use to select people to terminate? Why?
Some factors that you might consider are:
• the contribution of the person to the performance of the store now. What would happen to sales
and profits in the short term if the person were terminated?
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2. What are the pros and cons of terminating each person?
Employee
Pros
Cons
Louis Ingram,
Better Coat Buyer
Employee
Pros
Cons
Charles Jordan,
Director of Executive
Not a crucial position in terms of
short-term performance.
Developed an excellent executive
training program hiring college
Wife works in store and is
outstanding salesperson. Might leave
Only been with Fuller for three years.
A new coat buyer.
Good reputation in performance &
industry. Could be useful in
training.
Show signs of declining performance.
Could combine better and budget
coats and satisfy the restless
nature of the budget buyer.
3. As a neutral observer who knows none of the individuals involved, whom would you pick?
Why?
Marie Voltz, junior lingerie buyer, does not make much of a short-term contribution and does not
have long-term potential. Since she is close to retirement you might be able to make an early
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Teaching Notes
Case A35: Rainforest Café: A Wild Place to Shop and Eat
Use with Video 5
Synopsis: The Rainforest Cafe is a theme restaurant similar in concept to Planet Hollywood
and Hard Rock Cafe. The case describes the concept of a theme restaurant that
develops and sells branded merchandise associated with the restaurant’s theme.
Use: Chapter 1 Relate retailing concepts to a restaurant (services retailer)
Chapter 2 Illustrate how a retail concept develops in response to changing
consumer needs
Chapter 7 Illustrate the importance of location in retail market strategy
Chapter 18 Illustrate the importance of store design and visual merchandise in
implementing a successful retail strategy
Discussion Questions
1. What is Rainforest Cafe’s retail offering and target market?
Retail mix
• Merchandise/Services: The Rainforest Cafe offers both prepared food in its restaurant
and branded merchandise featuring the rain forest theme, the restaurant’s logo, and
animals that are featured in the restaurant’s decor.
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2. Were malls good locations for Rainforest Cafes? Why or Why not? What would be the
best location types?
While most consumers at malls may prefer some entertainment options that is not the
primary reasons why they visit a mall. Rainforest Café’s core offerings were theme
3. Many retailers have tried to make their stores more entertaining. In a number of cases, these
efforts have failed. What are the pros and cons of providing a lot of entertainment
in a retail store or restaurant?
The core product/service provided by a restaurant is food and service, with
the ambience or atmosphere being secondary to the food and quality of
Ancillary Cases and Teaching Notes
Teaching Notes
Case A36: Should Retailers Use Blogs?
Synopsis:
Use: Chapter 3 Example of Web 2.0 – use of the Internet by multi-channel retailers .
Chapter 4 Illustrates information affecting consumer decision making
Chapter 16 Generates a discussion of the use of new media in retail communication
programs
Discussion Questions
1. Do you think blogging will become an essential part of the corporate marketing
strategy for retailers and product manufacturers?
– Blogs are becoming widespread
2. What benefits do you feel can be gained from a successful blogging campaign?
– Increased customer loyalty
3. If you were working to improve the marketing efforts of a new Internet retailer
would you use blogging? Does it depend on what your company is selling?
– Would it depend on the offerings of the retailer?
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4. Have you ever posted comments in a blog about a company or its products? Was it
positive or negative information? Also, have you every read a blog that affected your
buying decision? If yes, please describe. If no, explain why not?
– Was the experience of posting worthwhile?
Case A37: Malls Away – Buying Online Vs. In-Store
Synopsis:
Use: Chapter 1 .
Chapter 2
Chapter 3
Discussion Questions
1. What actions could brick and mortar retailers take to maintain their sales of such
models? Is there a threat to their business? How important is this part of their
business?
Student answers will vary widely. Some will see quite a bit of threat, while others will
Here are two student answers to this question:
Student 1 Answer
What actions could brick and mortar retailers take to maintain their sales of such
models?
Retailers could reduce their prices or offer a greater selection of these items, or perhaps
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Is there a threat to their business?
Yes, the purchasing convenience and selection provided by online retailers are a major
How important is this part of their business?
The sale of model ships is not a large part of their business; the stores listed are not
Student 2 Answer
If brick and mortar stores want to maintain sales of models, they need to realize that
people want variety. They need to offer a wider selection of models, and they should also
2. What could Model Expo and Internet Hobbies do to protect their business if Revell–
Monogram and other model kit makers decided to sell directly from their web
sites? Why haven’t these manufacturers done so?
This question is designed to discuss with students special talents, knowledge, assets, etc.