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_____ 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
E. Sweethearting
Answer:
A(n) _____ is a set of firms that make and deliver a given set of goods and services to
the ultimate consumer.
A. supply chain
B. buying network
C. economic network
D. integrated wholesale network
E. extended enterprise
Answer:
Which of the following is typically the step after conducting a competitive analysis
during site selection?
A. Define present trade area.
B. Analyze trade area characteristics.
C. Conduct a situational analysis.
D. Match characteristics of present trade area with potential sites.
Answer:
Which of the following statements is true about the use of testing?
A. It is legal to use tests that discriminate against specific groups.
B. It is illegal for employers to give applicants drug tests.
C. Tests must be scientifically and legally valid.
D. Tests are of no help in developing training programs.
E. It is legal to use tests that assess factors that are not job related.
Answer:
Retailers have the least opportunity to exploit a competitive advantage when they
pursue:
A. retail format growth opportunities.
B. market penetration growth opportunities.
C. diversification growth opportunities.
D. market expansion growth opportunities.
E. wholesale format development growth opportunities.
Answer:
Candle in the Wind LLC is a store for people who enjoy and collect candles to decorate
their homes. Last year, its net sales totaled $125,000 with $13,700 in taxes. The cost
value of the candles it sold was $42,300. The expenses that the operation has are
salaries to the owner and one part-time assistant for $52,000, administrative expenses of
$400, and utilities at $900. Calculate the net profit after tax for Candle in the Wind.
A. $29,400
B. $17,000
C. $53,300
D. $15,700
E. $16,100
Answer:
Positioning is the process of:
A. acquiring a lease for a retail store in a region.
B. creating and supporting a clear and distinct retailer image.
C. finding a retail location site.
D. negotiating the percentage-of-sales payment to the mall owners.
E. performing a situation audit.
Answer:
Which of the following is not a benefit of efficient supply chain management?
A. Increase in product availability
B. Increase in inventory turnover
C. Better fashions
D. High return on investments
E. Sustainable competitive advantage
Answer:
Which of the following statements is NOT true of the merchandise classification
scheme?
A. A stock-keeping unit (SKU) is the smallest unit available for inventory control.
B. In soft goods, a SKU usually means a particular size, color, and style.
C. SKUs are the basic units of analysis for making merchandising management
decisions.
D. The highest classification level is the merchandise group.
E. A classification is a group of items targeting the same customer type.
Answer:
With respect to retailing, assortment is often referred to as the _____.
A. power perimeter
B. depth of merchandise
C. closeouts
D. variety of merchandise
E. irregulars
Answer:
Which of the following is not true about U.S. census data?
A. The census track is the smallest geographic entity for which census data is available.
B. There are eight million census blocks in the United States, each containing the
residences of about 40 people.
C. The block group is a collection of adjacent blocks that contain between 300 and
4,000 people.
D. Census data are collected every ten years.
Answer:
When Joe visited Decors, he was surprised to see tea cups displayed up a wall almost to
the ceiling. The wall is an example for a _____.
A. feature area
B. digital signage
C. planogram
D. bulk fixture
E. point-of-purchase
Answer:
_____ is a display technique in which large quantities of merchandise are displayed
together.
A. Price lining
B. Merchandise highlighting
C. Frontal presentation
D. Tonnage merchandising
E. Style/item presentation
Answer:
Which of the following statements is true of debt-to-equity ratio?
A. It measures the total cost of manpower relative to the organizations total
productivity.
B. It measures how much money a company can safely borrow over long periods of
time.
C. It measures the cost of employee benefits relative to individual productivity.
D. It measures the organization's profitability against its productivity.
E. It measures how much money a company can safely lend over long periods of time.
Answer:
Which of the following statements does not describe the benefits of utilizing
distribution centers over direct store delivery?
A. More accurate sales forecasts are possible when retailers combine forecast for many
stores serviced by one distribution center rather than doing a forecast for each store.
B. Distribution centers enable the retailer to carry less merchandise in the individual
stores.
C. The use of distribution centers increases inventory investment.
D. It is easier to avoid running out of stock or having too much stock in any particular
store because merchandise is ordered from the distribution center as needed.
E. The effects of forecast error for the individual stores are minimized and less backup
inventory is needed to prevent stockouts.
Answer:
Val is concerned that the commissioned salespeople in her fur shop are not keeping the
store clean and merchandise properly displayed. What should she do?
A. Increase the sales commissions for her salespeople.
B. Change the incentives from commissions to bonuses.
C. Stock less merchandise.
D. Fire the salespeople and hire new ones.
E. Change the compensation to strictly an hourly wage.
Answer:
A _____ is a group of customers who are bound together by their loyalty to a store and
the activities the retailer sponsors and undertakes.
A. frequent shopper community
B. retail brand community
C. consideration set
D. target market
E. customer pyramid
Answer:
Why would a small retailer not be interested in selling at kiosks situated in airports?
A. The location is often convenient for workers.
B. Relatively inexpensive compared to a regular sized store
C. The high foot traffic can be helpful for testing the response to new products.
D. The retailer can offer seasonal merchandise that closes after the season.
E. The rent per square foot is very expensive.
Answer:
Which of the following retailers might customers consider as a destination store?
A. The only shoe store in town that will dye shoes to match dresses
B. The store in town with the lowest priced pharmaceuticals
C. The only store in town that carries Goobers and Raisinets
D. The store in town with the largest selection of computer games
E. All of these
Answer:
Best Buy is a category specialist for the electronics industry. This means the stores
_____.
A. offer their customers narrow breadth and depth of merchandise
B. sell only their own private-label brands
C. have excellent after sales customer service
D. avoid self-service approach
E. offer a narrow but deep assortment of merchandise
Answer:
_____ refers to the design of an environment by stimulation of the five senses.
A. Atmospherics
B. Ecoscaping
C. Terraforming
D. Arboriculture
E. Showrooming
Answer:
Techno Comp is a well-known national brand of computer and electronic products and
accessories. Their tablet would be considered a(n) _____.
A. premium brand
B. copycat brand
C. umbrella brand
D. exclusive brand
E. subbrand
Answer:
_____ is the sharing of forecasts and related business information between retailers and
vendors to improve supply chain efficiency and product replenishment.
A. Automated replenishment system
B. Universal Product Code (UPC) system
C. Electronic data interchange (EDI) system
D. Point-of-sale (POS)
E. Collaborative planning, forecasting, and replenishment (CPFR)
Answer:
_____ is the amount of time between the recognition that an order needs to be placed
and the point at which the merchandise arrives in the store and is ready for sale.
A. Lead time
B. Order time
C. Fill rate
D. Service level
E. Delivery rate
Answer:
_____ is a set of activities and techniques firms employ to efficiently and effectively
manage the flow of merchandise from the vendors to the retailer's customers.
A. Enterprise feedback management
B. Supply chain management
C. Total quality management
D. Customer relationship management
E. Employee experience management
Answer:
Rebecca works at a regional department store. Due to her artistic skills, she is
responsible for creating floor and window displays. This is all she does at the store.
Which of the following is this an example of?
A. Decentralization
B. Centralization
C. Strategic management
D. Specialization
E. Unity of tasks
Answer:
Which of the following is a reason for consumers to have privacy concerns regarding
cookies?
A. Customers cannot realize the amount of information being collected without their
knowledge.
B. The passwords used to access websites reveal a large amount of personal information
without a customer's knowledge.
C. The cookies block the ability to log on to certain sites.
D. Governmental agencies may use cookies to collect extra taxes.
E. The cookies may corrupt the consumers' personal software files.
Answer:
A supermarket requires a large amount of operating space. Therefore, it is most likely to
be located in a:
A. shopping mall.
B. life-style center.
C. freestanding site.
D. central business district.
E. off-price center.
Answer:
Which type of retailer is MOST likely to use first-degree price discrimination?
A. A sub shop
B. A candy store
C. A newspaper stand
D. An antique shop
E. A pet store
Answer:
Which of the following is an example of a productivity measure?
A. Cost of merchandise
B. Inventory turnover
C. Gross margin
D. Net sales
E. Advertising expenses
Answer:
A multichannel retailer is one that:
A. is a combination of single channel retailers.
B. channels all assortments through stores.
C. works with other retailers who are in the channel.
D. sells merchandise or services through more than one channel.
E. buys merchandise from multiple channels to sell in the stores.
Answer:
_____ occurs when the authority for decisions is assigned to lower levels in the
organization.
A. Decentralization
B. Specialization
C. Centralization
D. Formalization
E. Span of control
Answer:
