Chapter 3 Assignments & Exercises

Customer Value Measurement, Relative Value, and Ownership Value

Instructor Note

This is an asynchronous assignment to be submitted prior to a class discussion of the video. Provide students with the video link, the multiple-choice questions, and the following instructions.

Student Instructions:

1. Watch the video about Home Depot below (relevant portion: 59:38 – 1:06:02).

2. Answer the 20 multiple-choice questions below.

3. Select the one best answer for each question.

Start at 59:38

Home Depot: Customer Value, Pro Strategy & Supply Chain

Watch on YouTube · Relevant portion: 59:38 – 1:06:02

Watch on YouTube ↗

20 multiple-choice questions based on the video

1. What is the theme song often associated with Home Depot commercials?

A. 'Happy'

B. 'Do It Right'

C. 'A Good Time to Be a Doer'✓

D. 'Home Improvement Anthem'

2. How many stores does Home Depot have across North America?

A. Over 1,000

B. Over 1,500

C. Over 2,000

D. Over 2,300✓

3. What is one advantage Home Depot has in attracting professional customers?

A. Higher prices for bulk orders

B. Exclusive discounts for professionals

C. A foothold in the professional customer space✓

D. Limited stock for DIY consumers

4. What is the typical floor space of a Home Depot store?

A. 50,000 square feet

B. 75,000 square feet

C. 100,000 square feet

D. 104,000 square feet✓

5. What vision did Home Depot's founders have when they opened their first two locations in 1979?

A. A store significantly smaller and more expensive than competitors

B. A store significantly bigger and cheaper than competitors✓

C. A store with limited options for DIY customers

D. A store exclusively for professional contractors

6. What is Home Depot's target customer, as described in the video?

A. The casual shopper

B. The luxury homeowner

C. The DIY or do-it-yourself customer✓

D. The interior designer

7. During the 2021 fiscal year, what percentage of Home Depot's sales came from Pro customers?

A. About 20%

B. About 30%

C. About 40%

D. About 50%✓

8. How does Home Depot cater to both individual DIY customers and professional contractors?

A. By stocking a wide range of products for both customer types✓

B. By offering exclusive discounts to DIY customers

C. By having separate stores for each customer type

D. By limiting the stock available for professional customers

9. What strategy did Home Depot use to attract more Pro customers, and how much was invested in it?

A. Exclusive discounts, $500 million

B. Expanding supply chain, $1.2 billion✓

C. Opening more stores, $750 million

D. Offering specialized services, $2 billion

10. How many distribution centers is Home Depot planning to build to expand its supply chain?

A. 100

B. 120

C. 150✓

D. 200

11. What type of products are mentioned as part of the Pro customer strategy for Home Depot?

A. Small household items

B. Appliances for DIY projects

C. Bulky items like lumber, doors, windows, and vanities✓

D. Exclusive designer furniture

12. What percentage of Home Depot's e-commerce sales growth has happened over the last two years?

A. 50%

B. 75%

C. 100%✓

D. 150%

13. How do Home Depot's distribution network and online strategy jointly benefit Pro customers?

A. By slowing down delivery to job sites

B. By limiting delivery options

C. By offering more flexible delivery options✓

D. By only delivering small and lightweight products

14. What economic factor is Home Depot sensitive to in the competitive market?

A. Inflation rates

B. Economic fluctuations, especially in the housing market✓

C. Economic policies

D. Global economic trends

15. How did the Home Improvement industry, including Home Depot, perform during the pandemic?

A. Declined significantly

B. Experienced steady growth✓

C. Was not affected

D. Experienced a boom in sales

16. What percentage of Home Depot's sales growth was recorded in four straight quarters between the middle of 2020 and 2021?

A. 10%

B. 15%

C. 20%✓

D. 25%

17. How does Home Depot describe its Pro customers?

A. As occasional shoppers

B. As individuals with limited home improvement projects

C. As customers who rarely shop online

D. As professionals who place more lucrative orders✓

18. What is Home Depot's key strategy to attract Pro customers in terms of product delivery?

A. Slower delivery times

B. Same-day or next-day delivery for big and bulky products✓

C. Delivery only to store locations

D. Exclusive discounts on delivery fees

19. What was the main economic challenge for Home Depot during the Great Recession and financial crisis 10 years ago?

A. Decline in customer interest

B. Increased competition

C. Economic fluctuations in the housing market✓

D. High inflation rates

20. According to the video, what role does Home Depot's online strategy play in its business growth?

A. Limited impact on business growth

B. Acts as an economic flywheel, creating additional in-store sales✓

C. Contributes to a decline in in-store sales

D. Results in a decrease in e-commerce sales