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Copycat brands imitate the manufacturer’s brand in appearance and packing, generally are perceived as lower quality, and are offered at lower prices. Answer: Centralization makes it easy for a retailer to adapt to local market conditions. Answer: FALSE Although centralization […]

The principal objective of employee socialization is to _____. A. make the screening process faster B. increase turnover C. make on-the-job training unnecessary D. orient new employees to the firm E. prevent the creation of employee bonds Answer: Which of […]

Merchandising, planning, marketing, and finance positions for a national chain are housed: A. predominantly at the corporate headquarters. B. at the individual store level. C. at the back-of-the-house. D. at the regional distribution centers. E. at decentralized locations. Answer: Fewer […]

In an efficient supply chain and information system, net sales increase because _____. A. customers are offered heavy discounts on the products B. customers are offered tailored assortments that are in stock C. retailers get tax benefits for setting up […]

_____ occurs when a consumer goes into a store to learn about different brands and products and then searches the Internet for the same product sold at a lower price. A. Returning B. Direct selling C. Automated retailing D. Showrooming […]

Which of the following statements about Internet retailing is TRUE? A. Internet retailing gives customers an opportunity to use all five senses. B. Customers can have more personalized information on products. C. Customers do not receive sufficient information to evaluate […]

Sam loves shopping. She frequently goes window shopping in the city. During times of need, she visits the nearest supermarket even though she loathes going there. Which of the following is most likely to be the reason why Sam shops […]

_____ delegate challenging work to subordinates, have free and open communication with them, and provide personal mentoring to develop subordinates. A. Chaotic leaders B. Autocratic leaders C. Persuasive leaders D. Transformational leaders E. Democratic leaders Answer: What is the drawback […]

Which of the following is true of the career opportunities offered by the retailing industry? A. Retailers employ people with exclusive expertise in supply chain management. B. Retail managers are often given considerable responsibility early in their careers. C. Retailing […]

Which of the following is an advantage of the use of sophisticated distribution and information systems? A. It creates a positive image of the brand in the minds of the consumers. B. It offers an opportunity for the retailer to […]

An electronic retailer advertised that returns would be quick and easy if customers are dissatisfied with a product. However, customers were unable to find any detailed information about the retailer’s return policies on its website and on the purchase invoice. […]

Which of the following is a typical reaction that customers exhibit when experiencing multiple stockouts? A. Switching to another retailer B. Patronizing the retailer C. Promoting the retailer on social media D. Initiating litigation against the retailer E. Reviewing product […]

Retailers need to provide a consistent brand image of themselves and their private-label merchandise across all channels. Answer: In a Dutch auction, the retail buyer provides a specification for what they would like to be produced for their private-label products, […]

What is the potential byproduct of promotional markdowns? A. It is a way of achieving a break-even point. B. Promotional markdowns benefit customers because they are charged according their willingness to pay. C. Retailers aim to get rid of unwanted […]

Decentralization increases efficiency. Answer: A sales associate who is confronted by a customer, whose newly purchased DVD player does not function, should: A. refer the customer to several different store employees to get the issue resolved. B. always assume he […]

_____ is a purchase decision process involving a moderate amount of effort and time. A. Extended problem solving B. Habitual decision making C. Utilitarian shopping D. Limited problem solving E. Psychological problem solving Answer: _____ is a strategy used by […]

Which of the following would be a fixed asset? A. Merchandise inventory B. A hand calculator C. The store building D. Accounts receivable E. Accounts payable Answer: Which of the following would not be listed as an asset on the […]

Eve’s is a retail store selling skincare products. It recently introduced fair trade products such as handmade soaps, herbal skin creams, and shampoos made by rural workers. Eve’s also claimed that a part of the sales proceeds of these products […]

When consumers go specialty shopping, they know what they want and will not accept a substitute. Answer: A trade area is the geographic area encompassing most of the customers who would patronize a specific retail site. Answer: TRUE A trade […]

The _____, now enforced by the Equal Employment Opportunity Commission (EEOC), prohibits unequal pay for men and women who perform equal work or work of comparable work. A. Fair Labor Standards Act B. Equal Pay Act C. Disparate Impact D. […]

Which of the following can be used to determine how many people are in a trade area and where they live? A. Customer spotting B. Demographic USA’s Buying Power Index C. Analog approach D. Customer clustering E. Centralization Answer: Retailers […]

To reduce the delivery gap, retailers need to: A. avoid empowering their front-line employees. B. always assume they know what the customer is complaining about. C. encourage store employees to have an antagonistic attitude toward customer complaints. D. provide instrumental […]

_____ is used to present products when retailers offer a limited number of predetermined price points within a product classification category. A. Flexible pricing B. Competitive pricing C. Price presentation D. Price lining E. Vertical merchandising Answer: The hosting of […]

Which of the following statements does not describe gross margin? A. It can be expressed as a percentage of net sales. B. It is the profit on the goods sold excluding the operating expenses. C. It is also referred to […]

In response to a growing trend of workers eating at their work stations, OfficeEase LLC, an Internet retailer, offers a line of products that can be used to protect office equipment and furniture including a plastic sheath for a computer […]

The most effective approach for reducing employee theft and shoplifting is to create a trusting, supportive work environment. Answer: Pack verification happens after a worker has packed a case or carton, usually just before sealing it. Answer: TRUE Pack verification […]

Moe’s Restaurant recently advertised that it offered unlimited pasta and burritos for $15 on Friday nights. However, when customers tried to avail the offer, they were told that enrolling for a membership was mandatory for the offer. The membership fee […]

Which of the following typically determines the amount and type of compensation paid by an employer? A. Organizational culture B. Market conditions C. Organizational tradition D. Brand strategy E. Marketing plan Answer: Digger’s shoe department was a successful part of […]

Jose runs a gallery which specializes in neon art with an emphasis on vacation icons like flamingos, dolphins, and palm trees. Since demand was high and supplies were low, he decided to buy an old warehouse and then hire craftspeople […]

_____ is the actual sales realized for the merchandise minus its costs of the merchandise sold. A. Total profit B. Net profit margin C. Fixed price D. Maintained markup E. Initial mark-up Answer: Which of the following retail stores is […]

When Austin saw pastries and coffee being sold at his local bookstore, he knew it was an example of _____. A. scrambled merchandising B. intertype competition C. product diversification D. channel conflict E. vertical differentiation Answer: From a retailer’s perspective, […]

With _____, two employees are voluntarily responsible for a job that was previously held by one person. A. cross training B. job sharing C. flextime D. job rotation E. job scaling Answer: The owner of a jewelry retail chain estimated […]

Luke is responsible for the strategic retail planning process in his organization. He is currently identifying the strategic opportunities. Which of the following steps is most likely to have been Luke’s previous step before identifying the strategic opportunities? A. Evaluating […]

Autocratic leaders seek information and opinions from employees and base decisions on this information. Answer: Rewards provided by either the employee’s manager or the firm such as compensation, promotion, and recognition are called intrinsic rewards. Answer: FALSE Intrinsic rewards are […]

Store design provides _____ by offering customers an entertaining and enjoyable shopping experience. A. altruistic experiences B. emotional stability C. tonnage merchandise D. hedonic benefits E. utilitarian benefits Answer: Customer needs and preferences for consumer electronics are very similar across […]

If you had $50,000 and you wanted to invest in stocks, you have two options. Which of the following ratios would best help you to decide on your investment? A. Inventory turnover B. Asset turnover C. Return on assets D. […]

(p.403-404) Which of the following statements holds true for individualized variable pricing? A. Customers may feel that they are being treated in an unfair manner. B. It is a practical approach and is widely used across retail stores. C. Retailers […]

_____ are shopping centers that consist primarily of collections of big-box retail stores, such as full-line discount stores, off-price stores, warehouse clubs, and category specialists. A. Neighborhood shopping centers B. Power centers C. Enclosed shopping malls D. Lifestyle centers E. […]

Mrs. Herrin and Mrs. Otwell teach a second grade class. Both have young children at home and both have teaching careers. To help them balance this lifestyle, the principal suggested they both work part-time yet cover the responsibilities of the […]

CLASSROOM EXERCISES AND ACTIVITIES Retailing Management 9th Edition 1 Chapter 1 – Introduction to the World of Retailing Debate: Is Walmart good for society? Format/Procedure Break into 6 teams, 3 on each side of the issue. Teams will have 10 […]

CLASSROOM EXERCISES AND ACTIVITIES Retailing Management 9th Edition 12 Chapter 5 – Retail Strategy McDonald’s original market was families with young children and its format was selling hamburgers and French fries in freestanding stores at lunch and dinner time. How […]

ADDITIONAL PROJECTS Retailing Management 9th Edition 1 STRATEGIC ANALYSIS Example 1 ENTREPRENEUR VS CHAIN Retail Management of Two Different Types of Stores Students are to analyze two different retail approaches such as an independent drug store compared to a national […]

ADDITIONAL PROJECTS Retailing Management 9th Edition Copyright © 2014 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. What should the report cover? The report should cover any relevant aspect of the […]

ADDITIONAL PROJECTS Retailing Management 9th Edition Copyright © 2014 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. Example 4 Store Layout and Design Go to “your store” and evaluate the store […]

Ancillary Cases and Teaching Notes 121 Teaching Notes ___________________________________________________________________________ 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 […]

Ancillary Cases and Teaching Notes 81 6. Crafts and Things had sales of $102,000 during June. Its end of the month (EOM) stock was $300,000 and its beginning of the month (BOM) was $270,000. What were its additions to stock […]

Ancillary Cases and Teaching Notes Copyright © 2014 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. Case A12: Simon and Smith Background information The partners of Simon and Smith, a medium-size […]

Ancillary Cases and Teaching Notes 134 Student 1 Answer 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? These online shops […]

Ancillary Cases and Teaching Notes 101 Teaching Notes Case A25: Dexter Brown, Star Salesperson Synopsis: Manager in a hypothetical men’s boutique must deal with a “tenured” salesperson who gets upset with the “laid back” attitudes of fellow sales associates. Use: […]

Ancillary Cases and Teaching Notes 21 Case A6: Men’s Wearhouse: Adding Complementary Merchandise and Services to Bring Value to Customers Men’s Wearhouse, Inc. is one of the largest discount men’s apparel companies in North America. The first location of this […]

Ancillary Cases and Teaching Notes 1 Uses of Ancillary Cases Chapter # Title 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 1 Wedding Channel.com S P S 2 Dollar General […]

Ancillary Cases and Teaching Notes 61 Teaching Notes Case A16: Retailing in China Synopsis: The case is based on the experiences of the authors, who spent several weeks in the Shanghai Suzhou area of China in summer, 1995. During this […]

Chapter 01 – Introduction to the World of Retailing 1-1 CHAPTER 1 INTRODUCTION TO THE WORLD OF RETAILING ANNOTATED OUTLINE INSTRUCTOR’S NOTES • When today’s consumer makes a purchase in their local store, that purchase is often made possible through […]

Chapter 10 – Information Systems and Supply Chain Management 10–13 • Although generally more desirable, a pull approach is not the most effective in all situations. It requires a more costly and sophisticated information system to support it, some merchandise […]

Chapter 10 – Information Systems and Supply Chain Management 10-1 CHAPTER 10 INFORMATION SYSTEMS AND SUPPLY CHAIN MANAGEMENT ANNOTATED OUTLINE INSTRUCTOR NOTES • It is the retailer’s responsibility to gauge customers’ wants and needs and work with the other members […]

Chapter 11 – Customer Relationship Management 11–13 the top 25 percent LTVs. The most loyal customers who are not overly concerned about merchandise price and place more value on customer service. significant amount at the retailer but are more price-sensitive […]

Chapter 11 – Customer Relationship Management 11-1 CHAPTER 11 CUSTOMER RELATIONSHIP MANAGEMENT ANNOTATED OUTLINE INSTRUCTOR NOTES • CRM is based on the philosophy that retailers can increase profitability by building relationships with their better customers. • Effectively managing merchandise inventory […]

Chapter 12 – Managing the Merchandise Planning Process 12-1 CHAPTER 12 MANAGING THE MERCHANDISE PLANNING PROCESS ANNOTATED OUTLINE INSTRUCTOR NOTES * Retail buyers manage a portfolio of merchandise inventory. They buy merchandise they think will be popular with their customers. […]

Chapter 12 – Managing the Merchandise Planning Process 12-20 * Markdowns can be forecast fairly accurately from historical records. * Cost of the employee discount is tied fairly closely to the sales level and number of employees and can be […]

Chapter 13 – Buying Merchandise 13–21 3. Go to the home page for the Private Label Manufacturer’s Association (PLMA), and read the “What are Store Brands?” which can be found at http://plma.com/storebrands/facts13.html. What are store-brand products? Who purchases store brands? […]

Chapter 13 – Buying Merchandise 13–34 BURDINES vs. DRIP-DRY APPLLANCE CORP. BUYER’S FACTS AND GOALS General information: The appliance business has been good this season. It is Market Week, and you. received a brochure from Drip-Dry outlining their market Special […]

Chapter 13 – Buying Merchandise 13-1 CHAPTER 13 BUYING MERCHANDISE ANNOTATED OUTLINE INSTRUCTOR NOTES • The first strategic decision that needs to be made is the type of merchandise to buy for the category: well-known national brands or private-label brands […]

Chapter 14 – Retail Pricing 14-1 CHAPTER 14 RETAIL PRICING ANNOTATED OUTLINE INSTRUCTOR NOTES • Value is the ratio of what customers receive (the perceived benefit of the products and services offered by the retailer) to what they have to […]

Chapter 14 – Retail Pricing 14–18 ANSWERS TO “GET OUT AND DO ITS” 2. Go to the Web page for Overstock.com and look at its top selling merchandise. Select a few key items and compare the price of each product […]

Chapter 15 – Retail Communication Mix 15–14 • An easy way to make such allocation decisions is just to spend about the same in each geographic region or for each merchandise category. • Allocation decisions, like budget-setting decisions, should use […]

Chapter 15 – Retail Communication Mix 15-1 CHAPTER 15 RETAIL COMMUNICATION MIX ANNOTATED OUTLINE INSTRUCTOR NOTES • Communication programs can have both long-term and short-term effects on a retailer’s business. From a long-term perspective, communications programs can be used to […]

Chapter 16 – Managing the Store 16-1 CHAPTER 16 MANAGING THE STORE ANNOTATED OUTLINE INSTRUCTOR NOTES • Even in national chains, store managers are treated as relatively independent managers of a business within the corporation. Some department store managers are […]

Chapter 16 – Managing the Store 16–14 * The Equal Pay Act, now enforced by the EEOC, prohibits unequal pay for men and women who perform equal work or work of comparable worth. * Leadership is the process by which […]

Chapter 17 – Store Layout, Design, and Visual Merchandising 17–13 • Arranging items by size is a common method of organizing many types of • Organizing stock by style or item is probably the most common presentation technique. merchandise, from […]

Chapter 17 – Store Layout, Design, and Visual Merchandising 17-1 CHAPTER 17 STORE LAYOUT, DESIGN, AND VISUAL MERCHANDISING ANNOTATED OUTLINE INSTRUCTOR NOTES environment on shopping behavior on shopping behavior, retailers have devoted considerable resources to their store design and merchandise […]

Chapter 18 – Customer Service 18-1 CHAPTER 18 CUSTOMER SERVICE ANNOTATED OUTLINE INSTRUCTOR NOTES services they purchase. All employees of a retail firm and all elements of the retailing mix provide services that increase the value of the merchandise. • […]

Chapter 18 – Customer Service Copyright © 2014 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. • The steps in effective service recovery are: (1) listen to the customer, (2) provide […]

Chapter 02 – Types of Retailers 2-1 CHAPTER 2 TYPES OF RETAILERS ANNOTATED OUTLINE INSTRUCTOR NOTES • The 1.1 million U.S. store-based retailers range from street vendors selling hot dogs to Internet retailers like Amazon.com to omnichannel retailers like Best […]

Chapter 02 – Types of Retailers 2-18 well as legal and economic concerns. For example, the FMI may report on information about changes in regulations on what constitutes organic The NACS will report on regulations as well, such as debit […]

3-1 Chapter 03 – Multichannel Retailing CHAPTER 3 MULTICHANNEL RETAILING ANNOTATED OUTLINE INSTRUCTOR NOTES • A retail channel is the way a retailer sells and delivers merchandise and services to its stores. • Today, most retail firms are using more […]

Chapter 04 – Customer Buying Behavior 4-1 CHAPTER 4 CUSTOMER BUYING BEHAVIOR ANNOTATED OUTLINE INSTRUCTOR NOTES • The buying process (the steps consumers go through when buying a product or service) begins when customers recognize an unsatisfied need. The process […]

Chapter 04 – Customer Buying Behavior 4-16 • Retailers today place more emphasis on life-styles than on demographics to define a target segment. • The most widely used lifestyle tool is the Value and Lifestyle Survey (VALS2) conducted by SRI […]

Chapter 05 – Retail Market Strategy Copyright © 2014 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. • Another competitive factor is the bargaining power of vendors. Markets are unattractive when […]

Chapter 05 – Retail Market Strategy 5-1 CHAPTER 5 RETAIL MARKET STRATEGY ANNOTATED OUTLINE INSTRUCTOR NOTES and private-brand strategy. • Retail strategy isn’t just another expression for retail management. Ask students to consider some successful, or unsuccessful, retail strategies that […]

Chapter 06 – Financial Strategy Copyright © 2014 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. Many factors contribute to the overall performance of a retailer. Thus it is difficult to […]

Chapter 06 – Financial Strategy 6-1 CHAPTER 6 FINANCIAL STRATEGY ANNOTATED OUTLINE INSTRUCTOR NOTES • Financial analysis can be used to monitor the retailer’s performance, assess the reasons its performance is above or below expectations, and provide insights into appropriate […]

Chapter 07 – Retail Locations 7-1 CHAPTER 7 RETAIL LOCATIONS ANNOTATED OUTLINE INSTRUCTOR NOTES • Location decisions have strategic importance because they can be used to develop a sustainable competitive advantage. • Location decisions are generally risky. They are hard […]

Chapter 08 – Retail Site Location 8-1 CHAPTER 8 RETAIL SITE LOCATION ANNOTATED OUTLINE INSTRUCTOR NOTES • Areas that retailers consider for locating stores might be countries, areas within a country such as a province or state, particular cities or […]

Chapter 09 – Human Resource Management 9-17 stereotypes they hold influence the way they treat people often in subtle ways they might not realize. Then role-playing is used to help employees develop better interpersonal skills, including showing respect and treating […]

Chapter 09 – Human Resource Management 9-1 CHAPTER 9 HUMAN RESOURCE MANAGEMENT ANNOTATED OUTLINE INSTRUCTOR NOTES • Human resource management is particularly important in retailing because employees play a major role in performing critical business functions. • Retailers rely on […]

profitability in private label programs. www.privatelabelbuyer.com More oriented to operations than stores. www.chainstoreage.com programs and customer retention. www.colloquy.com Convenience Store Decisions. www.csdecisions.com merchandising techniques. www.csnews.com around which all marketing revolves. www.cpgmatters.com 1 Copyright © 2014 McGraw-Hill Education. All rights reserved. […]

Sample Syllabus Format and Schedules 1 1 SAMPLE SYLLABUS FORMAT AND SCHEDULES Retailing Management was designed with flexibility in mind. It can be utilized in both quantitative and qualitative curricula, in semester and quarter systems, and as well as courses […]

Sample Syllabus Format and Schedules 21 21 ASSIGNMENTS: Internet Shopping—4 groups Assignment www.curcuitcity.com and www.bestbuy.com and compare shopping on these two sites for a digital camera. What features on the sites did you find helpful? What features made shopping more […]

Sample Syllabus Format and Schedules 54 and participate frequently, are usually prepared, get along in your group, provide a positive contribution to team assignments, and turn in work of professional quality. D = Below Average: You do not fully understand […]

Sample Syllabus Format and Schedules GB 747, Retail Marketing and Channel Management Loyola College in Maryland Sellinger School of Business and Management Mrs. Hope B. Corrigan, MS, MBA Course Description This course examines the strategic role of retailing in the […]

Case Synopsis, Uses, Discussion Questions, and Answers 21 – Growth opportunities – Joint ventures and local business partners – China’s middle class – Increased coffee consumption in China – China’s large population – Using regional ingredients – Income and consumer […]

Case Synopsis, Uses, Discussion Questions, and Answers 1 CASES Uses of Cases P = Primary Use; S = Secondary Use; C = Comprehensive Copyright © 2014 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent […]

Case Synopsis, Uses, Discussion Questions, and Answers 41 CASE 17 – Active Endeavors: Contemplating its Customer Database Synopsis: Active Endeavors is an outdoor apparel and accessory retailer. The store has a database of its customers’ transaction records including their name […]

Case Synopsis, Uses, Discussion Questions, and Answers Copyright © 2014 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. 3. To understand what effect, if any, a change in J C Penney’s […]

Case Synopsis, Uses, Discussion Questions, and Answers 77 Discmart’s service standard should therefore be, never be out of stock on advertised merchandise. Since they were out of stock, the Standards gap occurred. The Delivery gap occurred because the employee was […]

4) Category Management (Chapter 12) 5) Merchandise Budget Plan (Chapter 12) 6) Vendor Evaluation Model (Chapter 12) 7) Location Case Exercise (Chapter 8) 8) Pricing (Chapter 14) • Markup Percentage • Maintain Markup and Initial Markup • Breakeven Analysis • […]