Question

Read the Best Buy case and answer the questions to the right.

Best Buy, one of the nation's largest retailers of technology and electronics with annual sales of $15 billion, manages a national network based on service. From its origin as a Minneapolis music store in 1966, the company now has approximately 155,000 employees in the United States and at stores in Canada, China, Europe, and Mexico.

Best Buy's focus on customer service led it to acquire the "Geek Squad" in 2002. It now employs approximately 20,000 Geek Squad technicians in U.S. and Canada stores. The technicians provide 24-hour technology support through telephone, in-store, and on-site services. Technicians provide on-site support to individuals at their homes or businesses, arriving in custom painted vans or Volkswagen Beetles. The “Geekmobiles" have a black hood and trunk and white doors, resembling a police car. In California they paint the doors black at the request of the California Highway Patrol.

The Geek Squad’s presence has increased customer satisfaction and brand loyalty for Best Buy, by providing customers with assurance their technology problems can be handled by the same store where they purchased the product. For many brands, Geek Squad technicians are also trained to provide warranty support – which they can provide more quickly than many producers. Best Buy integrates product support and sales through an Electronic Data Interchange (EDI) allowing it to manage both corporate and local inventory and supply chain as part of its total physical distribution concept. Best Buy maintains an international look and feel to its stores and product line, but maintains inventory at each store that aligns with local demographics, such as taste in music or specialized technology.

1. The 2002 decision by Best Buy to acquire Geek Squad is an example of:

a. end-user marketing b. point-of-sale marketing c.marketing strategy d.macro-marketing.

2. The decision of Best Buy to acquire the Geek Squad was a trade-off based on:

a. e-commerce b. total cost approach c. supply chain d. physical distribution.

3. Best Buy coordinates logistics among its product manufacturers through:

a. physical distribution b. on-site sales promotions c. warranty training d. direct store delivery.

4. Best Buy's "centrizing" its stores provides:

a. coordinated logistics b. localized physical distribution c. demographic customer service d. inventory cost control.

5. Implementing an Electronic Data Interchange allows Best Buy to:

a. localize physical distribution b. provide piggyback services c. manage its supply chain d. operate a distribution center.

6. Best Buy's "Centrizing" strategy emphasizes:

a. Place b. Promotion c. Product d. Price.

Answer 1

1. The 2002 decision by Best Buy to acquire Geek Squad is an example of:

Ans: Option c: Marketing strategy

Explanation: The marketing strategy focuses on making the customer who will actually use the product satisfied with the product and after-sales support.

2. The decision of Best Buy to acquire the Geek Squad was a trade-off based on:

Ans: Option d: physical distribution.

Explanation: They focused on service and physical distribution rather than online sales.

3. Best Buy coordinates logistics among its product manufacturers through:

Ans: Option c: Warranty training

Explanation: There technicians provide onsite support. The technicians are trained to provide warranty support too.

4. Best Buy's "centrizing" its stores provide:

Ans: Option c: demographic customer service

Explanation: Each store inventory to customer service is tailored to a particular region.

5. Implementing an Electronic Data Interchange allows Best Buy to:

Ans: Option c: manage its supply chain

Explanation: Integration of local product support and sales to maximize their total distribution concept.

6. Best Buy's "Centrizing" strategy emphasizes:

Ans: Option c: product

Explanation: Focus is making the local outlet as close to customer requirements as possible with the right product.