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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.
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The high/low pricing strategy helps sell slow moving merchandise.
Answer:
Customer relationship management programs collect data about customer shopping
behavior to enable retailers to build and maintain customer loyalty.
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Engagement is an emotional commitment by an employee to the organization and its
goals.
Answer:
Atmospherics refers to the design of an environment via visual communications,
lighting, colors, music, and scent to stimulate customers' perceptual and emotional
responses that affect their purchase behavior.
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Making an unplanned purchase is an example of limited problem solving.
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A co-op (cooperative) program is a promotional program undertaken by a vendor and a
retailer working together.
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The availability of national brands can affect a customer's image of the retailer.
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Shoppers often have only a general sense of what they want.
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Second-degree price discrimination occurs when retailers charge customers as much as
they are willing to pay.
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Buyers, divisional merchandise managers, and general merchandise managers are some
of those who undertake the responsibilities of merchandise management.
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Companies are totally convinced about the importance of corporate social responsibility
(CSR) during the initial stages of CSR integration.
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The quick ratio is short-term assets divided by short-term liabilities.
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A cotenancy clause prohibits the shopping center management from leasing to retailers
that sell competing products.
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Power centers are shopping centers that have an open-air configuration of specialty
stores, entertainment, and restaurants, with design ambience and amenities such as
fountains and street furniture.
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Buyers generally do not plan for markdowns.
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Output measures assess the results of a retailer's investment decisions.
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Credible commitments are tangible investments in the strategic relationship and
involve spending money to improve the supplier's products or services provided to the
customer.
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The retail sector plays a key role in developed economies.
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Multichannel retailers can leverage their stores to lower the cost of fulfilling orders and
processing returned merchandise.
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Accessibility is lesser for sites located near major highways, on uncongested highways,
and at streets with traffic lights and lanes that enable turns into the site.
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The job description identifies essential activities to be undertaken and is used to
determine the qualifications of potential employees.
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Automated retailing is a retail channel in which merchandise or services are stored in a
machine and dispensed to customers.
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Due to an increase in the production of private-label brands, resident buying offices
have become increasingly more significant and important.
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The development of information systems is one the forces facilitating the growth of
large retail firms.
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Customer loyalty can be enhanced by creating an appealing brand image.
Answer:
The formula for calculating asset turnover is: Asset turnover = Cost of goods/Total
assets.
Answer:
The inner city is the traditional downtown financial and business area in a city or town.
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The pattern of buying both premium and low-priced merchandise or patronizing both
status-oriented retailers and price-oriented retailers is referred to as multichannel
retailing.
Answer:
Self-gratification for the retailer is classified as a societal objective.
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Retailing offers entrepreneurial opportunities.
Answer:
Catherine derives pleasure from her aromatherapy sessions at the Mystique Resort and
Spa. She enjoys the attention and respect given to her by the staff. Hence, Catherine's
hedonic needs are satisfied by a sense of _____ at the spa.
A. adventure
B. motivation
C. status and power
D. deliberation
E. stimulation
Answer:
Which of the following is a component of retail mix?
A. Product design
B. Market intelligence
C. Human resource practice
D. Pricing policy
E. Employee performance data
Answer:
La Rouge LLC, a fabric store, is one of the most famous in the country. Customers
flock to the store from all across the nation for its exclusive collection of store brands.
Which of the following is most likely to be the sustainable competitive advantage of La
Rouge LLC?
A. Unique merchandise
B. Ethical business practices
C. Customer service
D. Location
E. Price
Answer:
Gabriella needs copper wire to make hanging candle lanterns out of antique glass
canisters. Based on her previous craft projects, she feels she would find this particular
type of wire at Michael's, a large arts and crafts store. Gabriella is relying on a(n) _____
source for her buying situation.
A. rational information
B. internal information
C. primary data
D. motivational data
E. selective data
Answer:
What is the first step in merchandise management planning?
A. Developing a forecast for sales
B. Executing a merchandise plan
C. Developing a business plan
D. Determining the appropriate inventory levels
E. Penetrating a new market
Answer:
Which of the following statements is true about specialty stores?
A. They tailor their retail strategy toward very specific market segments.
B. They group products by brand instead of product category like in department stores.
C. They offer very shallow and narrow assortments.
D. They completely avoid including their own private-label brands in the store.
E. They discourage sampling.
Answer:
Which of the following is the primary benefit of tagging individual items to retailers?
A. Increased inventory turnover
B. Reduced product prices
C. Reduced inventory turnover
D. Real-time measure of employee productivity
E. Real-time measure of inventory levels
Answer:
A(n) _____ develops in direct marketing when a firm and its program are designed to
sell merchandise and services to other distributors, rather than to end-users.
A. shell game
B. e-tailing program
C. pyramid scheme
D. party plan system
E. phishing scheme
Answer:
Compared to other retail formats, the greatest benefit that store shopping offers is:
A. the ability to touch and feel the products.
B. personal safety.
C. easy availability of information for product comparison.
D. broader and deeper assortments.
E. availability of detailed information for evaluating a product.
Answer:
The _____ opens up job opportunities for disabled individuals by requiring that
employers provide accommodating work environments.
A. Americans with Disabilities Act
B. Norris-Laguardia Act
C. Taft-Hartley Act
D. Age Discrimination in Employment Act
E. Civil Rights Act of 1991
Answer:
A _____ is "a name, term, design, symbol or any other feature that identifies one seller's
good or service as distinct from those of other sellers."
A. product
B. brand
C. deal
D. service
E. logo
Answer:
Which of the following statements is an advantage of a joint venture?
A. The entering retailer is exempted from trade taxes.
B. Trade laws favor the entering retailer.
C. The entering retailer takes all the profits.
D. The entering retailer has complete control of the operations.
E. The local partner provides an understanding of the market.
Answer:
What type of shopping center has an open-air configuration of specialty stores,
entertainment, and restaurants?
A. Omnicenters
B. Power centers
C. Shopping strips
D. Marketing complexes
E. Lifestyle centers
Answer:
Identify and describe the two paths of activities that determine return on assets (ROA).
Answer:
Which of the following services should retailers provide for disabled customers?
A. Accessible dressing rooms
B. Accessible checkout aisles
C. Fully accessible bathrooms
D. A lower checkout station
E. All of these
Answer:
On the basis of the analysis of historical sales, gross margins, turnover, the sizes of
product packaging for each SKU, and the retailer's design criteria, a software can
determine the optimal shelf space and location for each SKU. This describes the process
of creating an effective _____.
A. merchandise plan
B. allocation plan
C. placement plan
D. planogram
E. assortment plan
Answer:
When a retailer makes a generous contribution to a charity and the event is covered on
the evening news, it would be a method of communicating through _____.
A. public relations
B. store atmospherics
C. cooperative advertising
D. product placement
E. product premiums
Answer:
_____ of a merchandise category is the number of different merchandising
subcategories offered.
A. Merchandise depth
B. Classification
C. Variety
D. Assortment
E. Merchandise mixture
Answer:
_____ refers to charging of different prices for different stores, markets, or regions.
A. Zone pricing
B. Geofencing
C. Price lining
D. Price optimization
E. Odd pricing
Answer:
Which of the following factors affects customers' perceptions of service quality?
A. Reliability
B. Assurance
C. Tangibility
D. Responsiveness
E. All of these
Answer:
Clark was late to work one morning and decided to use the McDonald's drive-through
for his morning cup of coffee. Normally, a coffee drinker loyal only to Starbucks, Clark
was more interested in speed due to his tardiness. Which of the following best describes
Clark's shopping situation?
A. Distributive shopping
B. Time-crunch shopping
C. Comparison shopping
D. Convenience shopping
E. Specialty shopping
Answer:
In Sid's Surf Shop, there is a 10-foot long surf board on legs with swimwear on it near
the entrance to the department where surfing merchandise is sold. The surfboard attracts
many customers into that department. This is an example of a(n) _____.
A. bulk fixture
B. gondola display
C. freestanding display
D. cash wrap
E. end cap
Answer:
Which of the following is a consequence of a high inventory turnover?
A. Improved employee morale
B. A decrease in the cost of goods sold
C. An increase in promotions and markdowns
D. Higher risk of product obsolescence
E. A decrease in profits
Answer:
Managing diversity means:
A. simply obeying all equal employment opportunity laws.
B. trying to get everyone to think and act alike to avoid problems.
C. using the same approach to deal with each employee.
D. increasing the collective productivity of the workforce.
E. accepting and valuing how employees differ from each other.
Answer:
Which method for determining a communication method helps to ensure that the
retailer will not spend beyond its means?
A. Break-even analysis method
B. Objective-and-task method
C. Percentage-of-sales method
D. Competitive parity method
E. Marginal analysis method
Answer:
Which of the following merchandise categories is purchased in a manner similar to
fashion merchandise?
A. Promotional merchandise
B. Sample merchandise
C. Staple merchandise
D. Seasonal merchandise
E. Expected merchandise
Answer:
When a retailer responds to an economic downturn by putting a freeze on salaries,
laying off sales associates, and hiring more part-time associates, the employees tend to
respond with:
A. poor customer service.
B. lower job turnover.
C. higher levels of job satisfaction.
D. increased motivation.
E. increased effort.
Answer:
_____ equals a company's net sales divided by its total assets.
A. Asset turnover
B. Current ratio
C. Gross margin
D. Net sales margin
E. Return on assets
Answer:
Which of the following statements is a drawback of incentives?
A. Most employees dislike incentives.
B. It decreases organizational commitment.
C. It may cause employees to ignore other work tasks and obligations.
D. Incentives work when standard pay is low.
E. Most employees believe that incentives are mere tokens from the management, not
really an appreciation of their performance.
Answer:
Companies are practicing _____, which is the practice of marketing products or
services as being environmentally friendly with the purpose of gaining public approval
and sales rather than actually improving the environment.
A. green sheen
B. whitewashing
C. black marketing
D. fair trade
E. unlicensed branding
Answer:
Which of the following site characteristics refers to the customer's ability to exit the
highway and enter the parking lot safely?
A. Restrictions and cost
B. Natural barriers
C. Parking
D. Adjacent tenants
E. Traffic flow and accessibility
Answer:
_____ are the most concentrated sector of the retail industry in the U.S.
A. Fitness centers
B. Drugstore chains
C. Apparel stores
D. Home improvement centers
E. Food and beverage services
Answer:
_____ means that a firm performs more than one set of activities in the channel, as
occurs when a retailer engages in wholesaling activities by operating its own
distribution centers to supply its stores.
A. Channel diversification
B. Horizontal development
C. Horizontal integration
D. Vertical expansion
E. Vertical integration
Answer:
Why do retailers hire people with varied expertise and interests?
Answer:
What is the bullwhip effect and what causes it in an uncoordinated supply chain?
Answer:
What are the factors affecting the degree to which consumers feel their privacy
concerning personal information has been violated?
Answer:
What is empowerment? How can retailers implement this in practice and what are the
results of empowering employees?
Answer:
Describe what customer spotting is, its purpose, and the three approaches for obtain
information by means of customer spotting.
Answer:
How does the brand loyalty of customers impact retailers?
Answer:
Explain the use of a gondola as a fixture.
Answer:
Describe the four important differences in the nature of the offerings provided by
services and merchandise retailers.
Answer:
What information does a customer database contain?
Answer:
Why would a retailer desire to have private-label or store brands?
Answer:
What are the four factors that limit the effectiveness of frequent-shopping programs?
Answer:
Discuss the reasons that department stores are losing their market share to discount
stores, and list the steps taken by department stores to deal with their eroding market
share.
Answer:
Identify what is "floor-ready" merchandise and describe the tasks that are completed at
the distribution center to prepare merchandise to be "floor ready".
Answer:
Identify and describe the three types of objectives retailers might have in the strategic
planning process.
Answer:
What legal and ethical pricing issues need to be considered when retailers set their
prices?
Answer:
What are the objectives that must be met when managers are designing or redesigning a
store?
Answer:
What is a quota-bonus plan?
Answer:
Describe customer loyalty and the ways in which retailers can build customer loyalty.
Answer:
(p.104-105) Why is it important for retailers to understand how families make purchase
decisions?
Answer:
Using the information above, calculate each retailer's gross margin percent and net
operating profit percent. Compare the two and discuss which retailer is performing
better. What could the poorer performing retailer do to increase their financial
performance?
Answer:
