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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 stockouts and tailored assortments translate into _____.
A. lower sales
B. higher costs
C. higher inventory turnover
D. higher prices for retailers
E. lower employee productivity
Answer:
Which of the following is true of single-store retailers?
A. They do not have direct contact with their customers.
B. They are not bound by the bureaucracies inherent in large retail organizations.
C. They are totally independent of their owner-managers' capabilities to make any retail
decision.
D. They must join a wholesale-sponsored voluntary competitive group to compete
against corporate chains.
E. They are very rigid and lack quick adaptability to market changes and customer
needs.
Answer:
The value a brand image provides retailers is referred to as _____.
A. brand acceptance
B. brand visibility
C. brand awareness
D. brand equity
E. brand loyalty
Answer:
The key feature of _____ data is that they are identified with a coordinate system
(latitude and longitude) that references a particular place on Earth.
A. geographical information system (GIS)
B. projection map (PM)
C. trade area topographical map (TATM)
D. retail information system (RIF)
E. PRIZM system
Answer:
Myra wanted to purchase a vase as a wedding gift. Pier 1 Imports Inc. offers a better
assortment and slightly lower prices, but she immediately went to her local gift shop
instead of Pier 1 Imports Inc. This is an example of:
A. a situation audit.
B. strategic control.
C. direct competition.
D. retail perception.
E. customer loyalty.
Answer:
Which of the following is typically the first step in developing a retail communication
program?
A. Determine budget.
B. Implement and evaluate programs.
C. Allocate budget.
D. Establish objectives.
Answer:
Every morning, Peter goes to one of the nearby convenience stores and buys a carton of
Levin's chocolate milk for breakfast. When the store is out of Levin's, Peter goes
without milk rather than buying other popular brands of chocolate milk. Therefore,
Peter has a high:
A. brand loyalty.
B. extended decision making capacity.
C. retailer loyalty.
D. impulse buying tendency.
E. conversion rate.
Answer:
_____ is the perceived fairness of the process used to resolve complaints.
A. Variable fairness
B. Perceptual equity
C. Procedural fairness
D. Service equity
E. Distributive fairness
Answer:
When Donna ordered a refrigerator, she expected the people who delivered it to install
the refrigerator. However, the refrigerator was left at her door, and Donna's expectations
were not met. Which of the following terms best describes the given scenario?
A. Procedural fairness
B. Distributive fairness
C. Learned response
D. Service gap
E. Services cape
Answer:
Mattie owns a clock shop featuring vintage clocks from the 1950s. Mattie plans to
achieve a 40% maintained mark-up, and her reductions are planned at 4%. What is her
planned initial markup percentage?
A. 42.3%
B. 44%
C. 36%
D. 34.6%
E. 30.6%
Answer:
Papa Bean LLC, a global chain of pizzerias, has operations in more than 80 countries
around the world. Its menu varies considerably in different countries, assimilating
minute details from the local culture to add to its truly global flavor. Which of the
following is most likely a reason for the success of Papa Bean in international markets?
A. A global culture
B. Adaptability
C. Human resources
D. Financial resources
E. Rigidity
Answer:
Which of the following statements holds true for the purchase of staple merchandise?
A. Buyers often do not reorder additional merchandise after placing the first order.
B. Buyers for staple merchandise categories have much less flexibility in correcting
forecasting errors.
C. Staple merchandise is purchased using a continuous replenishment system by
monitoring sales and generating replacement orders.
D. The staple merchandise buying system requires more experienced buyers.
E. The main objective of staple merchandise buying is to be as close to out of stock as
possible.
Answer:
A shopping center landlord who has the agreement to increase the rent by a fixed
amount over a specified period of time has negotiated a _____.
A. fixed-rate lease
B. graduated lease
C. maintenance-increase-recoupment lease
D. sliding scale lease
E. percentage increase lease
Answer:
Six weeks after Samuel purchased six portable computers for his realty business, he
was called by the retailer who sold him the computers and asked if he was satisfied with
the purchase and if there was anything that he would change about the way the store
does business. In this scenario, the retailer is trying to reduce its _____.
A. delivery gap
B. standards gap
C. production gap
D. knowledge gap
E. communication gap
Answer:
What would the employee turnover be if the store had ten positions for management
trainees and four employees voluntarily left their jobs during the year?
A. 60%
B. 40%
C. 140%
D. 160%
E. There is not enough data to determine a correct percentage
Answer:
Which of the following locations is typically the best for a supermarket?
A. Regional and super-regional enclosed malls
B. Lifestyle centers
C. Neighborhood and community shopping centers
D. Outlet centers
E. Theme/festival centers
Answer:
Retailers collect price data about their competitors to:
A. see if they need to adjust their prices.
B. match supply and demand.
C. maximize their sales and profits by means of yield management.
D. assess the quality of services provided.
Answer:
Which of the following statements is true of the North American Industry Classification
System (NAICS)?
A. It was developed by the Federal Trade Commission (FTC).
B. It uses an 8-digit classification system.
C. It was created to collect data on North America's business activity.
D. It is limited in its use to only manufacturing companies.
E. It is a classification system developed by the United States.
Answer:
According to the Huff Gravity Model, the two factors which attract consumers to a
store location are:
A. travel time for customer to get to location and the number of customers in a trade
area.
B. the attractiveness of the store's location and the time it takes to travel to the store.
C. the size of the store and the number of customers in a trade area.
D. travel time for customer to get to location and the distance between a customer's
location and store location.
E. the distance between customer location and store location and the number of
customers in a trade area.
Answer:
The most fundamental method of coordinating the work activities of retail employees
is:
A. by not having close supervision to smother employee activities.
B. by paying them competitively.
C. by promoting a weak organization culture.
D. through written policies that list specific expectations.
E. by emphasizing trade promotions.
Answer:
An autocratic manager would be most likely to _____.
A. ask employees if anyone wanted to volunteer to work overtime
B. ask employees for their opinions on store design
C. consult employees before scheduling a storewide sale
D. ask employees which department they would like to work in
E. tell employees they will have to work late Friday night
Answer:
Fantasy and Stanley's are popular apparel stores. A Fantasy vendor has offered a
Stanley's buyer an attractive discount on merchandise that had been returned to Fantasy
by a different retailer. The Stanley's buyer realizes the high gross margin opportunity
but refuses the offer nevertheless. Why?
A. The buyer wants to preserve Stanley's image as a fashion leader by not selling
returned merchandise that could be out of season.
B. By accepting additional merchandise, Stanley's would be paying the additional costs
of carrying the merchandise.
C. Stanley's would be accepting unknown merchandise and could risk the purchase as
becoming more problems than it is worth.
D. Accepting the excess merchandise could alter the terms of the purchase as well as
delivery dates.
E. Transportation costs would increase.
Answer:
The _____ of a site is the ease with which customers can get into and out of the site.
A. traffic flow
B. traffic restriction
C. accessibility
D. vehicular traffic bypass
E. macro analysis
Answer:
Which of the following approaches would NOT be effective in service recovery?
A. Listening to the customer
B. Providing a fair solution
C. Resolving the problem quickly
D. Interrupting the customer
Answer:
Lexus works in the handbags department of Nordstrom. She takes 3% on all purchases.
She has become one of the top salespeople in her store bringing home a hefty paycheck.
This 3% is best referred to as her:
A. superannuation.
B. commission.
C. gratuity.
D. stock option.
E. bonus.
Answer:
What happens when retailers rely completely on written policies to obtain the
coordination of employees?
A. Employee motivation increases.
B. Employee attention span increases.
C. Communication between management and employees occurs more often.
D. Employee initiative and motivation decreases.
E. It becomes easier to develop and maintain a corporate culture.
Answer:
Retailers study traffic flow, street congestion, and parking space availability when
considering a new store site to determine the potential site's _______.
A. parallel tenants
B. accessibility
C. adjacent tenants
D. availability
E. visibility
Answer:
A(n) _____ is formed when the entering retailer pools its resources with a local retailer
to form a new company in which ownership, control, and profits are shared.
A. merger
B. joint venture
C. acquisition
D. strategic alliance
E. takeover
Answer:
Since Yolanda used _____ to analyze what her customers often buy together during a
single store visit, she knows to place facial tissues by the cold medicine and Wonder
bread by the Skippy Peanut Butter in her store.
A. market basket analysis
B. cookies
C. merchandising analysis
D. RFM analysis
E. location analysis
Answer:
The Men's Wearhouse stocks over 350 different styles and colors of ties. This
assortment of ties can be referred to as the store's _________.
A. consignment merchandise
B. closeouts
C. breadth of merchandise
D. power perimeter
E. depth of merchandise
Answer:
Which of the following schemes is the correct order describing the levels of the
merchandise classification scheme from the highest level to the lowest level?
A. Department-Merchandise Group-Classification-Category-stock-keeping unit (SKU)
B. Merchandise Group-Classification-Department-Category-SKU
C. Merchandise Group-Department-Classification-Category-SKU
D. Classification-Department-Category-Merchandise Group-SKU
E. Category-Classification-Merchandise Group-Department-SKU
Answer:
_____ is the concept of offering customers localized promotions of retailers in close
proximity of their mobile phones.
A. Geofencing
B. Geotagging
C. Geocaching
D. Price lining
E. Leader pricing
Answer:
Zara is responsible for the strategic planning retail planning process in her organization.
She has identified the strategic opportunities. Which of the following steps is most
likely Zara's next stage in the strategic retail planning process?
A. Define the business mission.
B. Evaluate strategic alternatives.
C. Evaluate performance.
D. Develop a retail mix.
E. Establish specific objectives.
Answer:
_____ are advertisements printed at the retailer's expense and distributed as an insert in
the newspaper.
A. Cogprints
B. Preprints
C. Reprints
D. Postprints
E. Eprints
Answer:
