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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 the following does not affect the long-term profit generated by stores when
evaluating store locations?
A. The economic conditions
B. Competition
C. The strategic fit of the areas' population with the retailer's target market
D. The cost of operating stores
E. The corporate centralization
Answer:
In which of the following stores would you be most likely to encounter a rounder as a
common fixture?
A. Penny's, an off-price clothing retailer
B. Sherlock, a store for mystery book lovers
C. The Beer House, a store that sells everything you need to brew your own beer
D. Simon's drugstores
E. Rose Antique Mall
Answer:
The value-creating retail activity that is particularly important to consumers with small
living quarters who cannot store a large quantity of products is:
A. providing assortments.
B. breaking bulk.
C. holding inventory.
D. providing services.
Answer:
(p.274-276) Which of the following is a function of a distribution center?
A. Negotiating with vendors
B. Providing technical support for products
C. Providing after-sale service
D. Managing inbound transportation
E. Managing customer support
Answer:
Establishing a sustainable competitive advantage is the key to _____ performance.
A. short-term market
B. short-term financial
C. short-term employee
D. long-term employee
E. long-term financial
Answer:
Which of the following steps is typically the last step in the strategic retail planning
process?
A. Develop a retail mix to implement strategy.
B. Establish specific objectives and allocate resources.
C. Evaluate performance and make adjustments.
D. Identify strategic opportunities.
E. Define the business mission.
Answer:
Which of the following statements is true of franchising?
A. It offers the highest risk and requires the least investment but also has the highest
potential return on investment.
B. It offers the lowest risk and requires the least investment but also has the lowest
potential return on investment.
C. It offers the lowest risk and requires the most investment but also has the highest
potential return on investment.
D. It offers the highest risk and requires the most investment but also has the highest
potential return on investment.
E. It offers the highest risk and requires the most investment but also has the lowest
potential return on investment.
Answer:
In order to motivate its employees, Dillards department store has set performance goals
for its employees. If an employee exceeds his or her daily performance goals, he or she
will receive a bonus. This compensation method is called a _____.
A. straight bonus plan
B. straight salary plan
C. task-oriented plan
D. equity-based plan
E. quota-bonus plan
Answer:
Dailies is a large retail chain in New Jersey. Apart from selling to customers, Dailies
supplies bread and vegetables to a large number of restaurants in and around New
Jersey. Therefore, Dailies is engaged in _____ when selling to restaurants.
A. wholesaling
B. retailing
C. merchandising
D. breaking bulk
E. channel expansion
Answer:
Which of the following is an example of task performance behavior?
A. Holding a meeting to build team morale
B. Offering to help an employee with personal problems
C. Sending a get-well card to an employee who is hospitalized
D. Determining next week's work schedule
Answer:
_____ forms the basis of the social factors influencing people's buying decisions.
A. Culture
B. Brand loyalty
C. Segmentation
D. Status
E. Religion
Answer:
When Chris charges a gallon of chlorine for his pool at Pinch-A-Penny to his store
account, he creates a(n) _____ for the retailer.
A. long-term liability
B. accounts payable
C. notes receivable
D. notes payable
E. accounts receivable
Answer:
Distributive fairness is:
A. customers' perceived fairness of the process used to resolve service complaints.
B. customer's perception of a retailer's customer service on the basis of reliability,
assurance, tangibility, empathy, and responsiveness.
C. customers' perception of the benefits received compared with their costs in terms of
inconvenience or monetary loss.
D. the retailer's rigid adherence to the set guidelines in order to reduce variability in
handling customer complaints.
E. the standard approach used by a retailer to deal with all customer complaints.
Answer:
Margaret went to the mall to meet her sister, Val. While at the mall, they witnessed a
back-to-school fashion show in a store. They took a walk and watched the children play
in the center arena. Which benefit of store shopping did Margaret and Val enjoy?
A. Immediate Gratification
B. Entertainment and social interaction
C. Convenience
D. Personal service
E. Touch and feel products
Answer:
Natalie is a senior executive of a department store chain. Every week, she visits one of
the stores and pretends to be a customer. She records her observations on the service
provided by the store's sales associates and the manner in which her queries were
handled. Sales associates who meet the service standards are awarded a small bonus.
Therefore, Natalie is a(n) _____.
A. store advocate
B. retail inspector
C. early adopter
D. mystery shopper
E. innovator
Answer:
The objective of Huff gravity model is to:
A. determine the hierarchy of retailing activities according to the assortment of
merchandise available.
B. define the relative ability of two cities to attract customers from the area between
them.
C. define the relationship between the size of a shopping area and the area's income
levels.
D. predict the probability that a customer will patronize a store.
E. create a comparative model which allows the retailer to determine the ideal location.
Answer:
_____ is the aspect of supply chain management which refers to the planning,
implementation, and control of the efficient flow and storage of goods, services, and
related information. It follows the process from the point of origin to the point of
consumption to meet customers' requirements.
A. Logistics
B. Total quality management
C. Warehousing
D. Distribution
E. Material flow management
Answer:
Which of the following factors is classified as a market factor?
A. Economic conditions
B. New technology
C. Barriers to entry
D. Competitive rivalry
E. Seasonality
Answer:
_____ occurs when a manufacturer undertakes retailing and wholesaling activities.
A. Merchandising
B. Exclusive dealing
C. Backward integration
D. Horizontal integration
E. Forward integration
Answer:
Offering a range of fair trade merchandise supports the idea of _____ which is used to
increase the chances of customers visiting the retailer after inclusion in the
consideration set.
A. adding benefits
B. increasing beliefs about the store's performance
C. increasing customers' importance weights
D. market segmentation
E. composite segmentation
Answer:
Which of the following statements is a method for improving net profit margin?
A. It can be improved by decreasing the gross margin and lowering sales.
B. It can be improved by decreasing the gross margin and increasing expenses.
C. It can be improved by decreasing the net margin and lowering expenses.
D. It can be improved by increasing the gross margin and lowering expenses.
E. It can be improved by increasing the net margin and lowering sales.
Answer:
When Rebekah took her kids to Kmart, she noticed a Little Caesar's Pizza restaurant
near the entrance, which prompted her to stop for lunch. This restaurant is a great
example of a:
A. kiosk.
B. power center.
C. store-within-a-store.
D. timed leased agreement.
E. pop-up shop.
Answer:
_____ are off-price retailers owned by manufacturers or retailers.
A. Dollar stores
B. Closeouts
C. Thrift stores
D. Outlet stores
E. Supercenters
Answer:
Current retailers are using catalog channels for:
A. developing multilevel systems for direct marketing.
B. collecting information to customize offers for customers.
C. building a brand image and driving traffic to stores.
D. channel integration.
E. none of these.
Answer:
What is wrong with the following performance objective which was set by a retailer
that specializes in advertising collectibles: "To increase sales by three percent on a
$400,000 investment in inventory and real estate"?
A. The objective is not qualitative.
B. The objective lacks a specific time frame.
C. The objective does not state the resources needed to accomplish it.
D. The objective is not measurable.
E. The objective is stated appropriately.
Answer:
Which of the following steps is typically the next step after developing a retail mix to
implement the strategy in the strategic retail planning process?
A. Establishing specific objectives and allocating resources
B. Evaluating strategic alternatives
C. Identifying strategic opportunities
D. Evaluating performance and making adjustments
E. Defining the business mission
Answer:
A retailer would be reducing the _____ by developing a better understanding of
customer expectations and perceptions.
A. communications gap
B. standards gap
C. performance gap
D. knowledge gap
E. delivery gap
Answer:
Calculate the return on assets for a gun shop that has total assets of $410,000, current
assets of $74,000, total liabilities of $280,000, accounts receivable of $12,000, net sales
of $64,000, and operating profit margin of $30,000.
A. 18.3 percent
B. 8.2 percent
C. 7.3 percent
D. 25.0 percent
E. 26.5 percent
Answer:
The retailer allocates the budget to areas that will yield the greatest return. This
approach for allocating a budget is referred to as the _____.
A. high-margin principle
B. high-assay principle
C. contribution principle
D. attraction principle
E. break-even principle
Answer:
Asset turnover _____.
A. is calculated from information found on a firm's income statement
B. is calculated by dividing total assets by net sales
C. reveals how profitable a company is
D. is net sales divided by total assets
E. is another term for inventory turnover
Answer:
The formula for calculating gross margin is:
A. net sales minus the cost of the goods sold.
B. gross sales plus the cost of goods sold.
C. net sales minus gross sales plus the cost of goods sold.
D. gross sales minus the cost of goods sold.
E. net sales plus the cost of goods sold.
Answer:
Alpha LLC is popular loungewear that prides itself on its versatility. Last year, its net
sales were $1,750,000 with cost of goods of $390,000. Taxes totaled $61,650. The
company's expenses totaled $960,000. Calculate the company's net after tax profit
margin percentage.
A. 80.7 percent
B. 22.2 percent
C. 19.3 percent
D. 12.5 percent
E. 22.9 percent
Answer:
Which of the following statements is true of the challenges faced by organized retailing
in India?
A. The cost of setting up facilities is significantly high.
B. The ever increasing operating costs.
C. Government impedes foreign investment in retailing.
D. The supply chain is underdeveloped and inefficient.
E. Managerial talent is becoming more difficult to find and retain.
Answer:
