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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 products.
D. The electronic channel offers a less satisfying shopping experience than catalogs.
E. Online stores offer limited assortments compared to store channels.
Answer:
Which of the following statements is true of department stores?
A. They are usually located in local neighborhoods rather than large regional malls.
B. They often resemble a collection of specialty shops.
C. They can be categorized into two tiers.
D. They focus almost exclusively on hard goods.
E. They offer a limited variety and shallow assortment of merchandise.
Answer:
James, a store manager, works at Fresco LLC. His store is located in the traditional
downtown financial business area in the city. In which of the following classifications
of retail locations is James' store located?
A. Semi-urban area
B. Gentrified residential area
C. Inner city
D. Main street
E. Central business district
Answer:
(p.310-311) Which of the following describes an approach that is used to deal with
unprofitable customers?
A. Retailers charging a restocking fee for returned merchandise
B. Retailers offering frequent buyer cards
C. Supermarkets giving away free samples of a new product
D. Retailers having special events outside of regular store hours
E. Retailers allowing certain merchandise to be viewed only by qualified customers
Answer:
Donna is the sales manager at a store that sells musical instruments. She has developed
a job description for each of her employees. These job descriptions will be used for all
of the following but _____.
A. recruiting employees
B. selecting employees
C. training employees
D. evaluating employees
E. compensating employees
Answer:
Which of the following factors is classified as a competitive factor?
A. Social changes
B. Bargaining power of vendors
C. New technology
D. Economic conditions
E. Market growth
Answer:
What is inventory turnover used to evaluate?
A. It is used to see how quickly retailers sell their investment in inventory.
B. It is used to calculate net sales.
C. It is used to measure average inventory.
D. It is to see how effectively buyers purchase the right assortments.
Answer:
Bonnie wanted to buy a wreath for her home for Christmas. She found the wreaths at
the back of the local department store with other holiday cards, candy, and decorations.
This special section at the store is an example of a _____.
A. bulk fixture
B. freestanding fixture
C. gondola display
D. feature fixture
E. promotional area
Answer:
Second Chance LLC is a paperback book exchange. For each book trade, the buyer
pays a $1 trade fee. Books that are sold and not traded cost half of their original
purchase price. The store has total assets of $126,000 and current assets of $40,200. Its
net sales equaled $35,000, and its net profit after taxes was $9,000. Calculate the store's
net profit percentage.
A. 7.1%
B. 21.7%
C. 22.4%
D. 25.7%
E. 27.7%
Answer:
Mindy manages 300 employees at a Walmart Supercenter. Each day, she leads the
employees in the Walmart cheer, creates excitement, and "goes the extra mile" with her
employees and customers. Shopping in her store is always an enjoyable experience with
enthusiastic sales help, contests, and demonstrations. Mindy is a _____ leader.
A. persuasive
B. autocratic
C. democratic
D. chaotic
E. transformational
Answer:
Which of the following statements does not describe asset turnover?
A. It is the retailer's net sales divided by its assets.
B. It assesses the productivity of a firm's investments in its assets.
C. It indicates how many sales dollars are generated by each dollar of asset.
D. It suggests the profit management path.
Answer:
Which of the following is NOT an example of a second-degree price discrimination
strategy?
A. Offering coupons
B. Online auction bidding
C. Price bundling
D. Multiple-unit pricing
E. Promotional markdowns
Answer:
Return on assets (ROA) is the profit generated by the assets possessed by the firm.
Answer:
Retailers must consider the trade-offs between lower operating costs and potential
_____ from having multiple stores in an area.
A. economies of scale
B. economies of scope
C. sales cannibalization
D. channel integration
E. vertical integration
Answer:
A company that carefully selects its recruits, develops employee skills through training,
shares information about company shares, and encourages employees to take additional
classes on customer service is trying to:
A. increase organizational turnover.
B. decrease its fixed costs.
C. centralize its organization structure.
D. decrease employee commitment.
E. reduce employee turnover.
Answer:
Target uses a Shopkick app to award points to customers who walk around a store and
scan products; they can redeem these points for various rewards. Which of the
following technologies will best suit this sales promotion?
A. M-commerce
B. Blog
C. Twitter
D. Facebook
E. Linkedin
Answer:
_____ consist of items that are only in demand for a relatively short period of time.
A. Expected merchandise categories
B. Sample merchandise categories
C. Staple merchandise categories
D. General merchandise categories
E. Fashion merchandise categories
Answer:
How can a retailer that wants to use an EDLP strategy persuade customers away from
high/low strategy competitors?
A. By using price lining
B. By using a demand-oriented method for setting retail prices
C. By assuring customers of low prices
D. By refusing to accept manufacturers' coupons
Answer:
Which of the following statements describes the benefits of a pull strategy?
A. It does not require advanced systems for implementation.
B. It decreases inventory turnover.
C. There is less likelihood of being overstocked or out of stock at each store.
D. It allows more efficient production and distribution scheduling to increase costs.
E. It forecasts the competitor's demand.
Answer:
Which of the following statements is a disadvantage of shopping malls?
A. Each retailer is allowed to establish its hours of operation.
B. Competition is kept to a minimum because developers try not to have more than one
specialty store for each product category.
C. The mall management has no control over exterior signs.
D. Rents in malls are higher than other locations.
Answer:
Which of the following statements is true of customer service?
A. The retail offerings of a company are not influenced by customer service.
B. It is relatively easy for a company to duplicate the services offered by a competitor.
C. It does not provide major strategic advantages for a company.
D. It increases the value customers receive from the merchandise they buy.
E. Customer service perceptions are developed mostly by interacting with top
management.
Answer:
Nina's office was made up of a mostly all male staff. All worked well together and no
one really even noticed the skewed ratio until one day when one of the men
downloaded a lewd screensaver for all to see when they arrived in the office. Nina was
infuriated. This situation can be considered:
A. a violation of employee privacy.
B. political individualism.
C. an instance of sexual harassment.
D. an unethical hiring practice.
E. an unethical instance of distributive justice.
Answer:
Which of the following is NOT true of a fashion merchandise category?
A. It consists of items which are only in demand for a relatively short period of time.
B. New products are continually introduced into these categories.
C. The introduction of new products makes the existing products obsolete.
D. The change of colors and styles can make the basic product fashion merchandise.
E. Forecasting sales for this category is simplistic and predictable.
Answer:
The _____ is the number of each SKU in the assortment plan that the buyer wants to
have available for purchase in each store.
A. merchandise budget plan
B. order point
C. assortment plan
D. model stock plan
E. stock-to-sales ratio
Answer:
(p.274-276) Which of the following is not a function of a distribution center?
A. Managing inbound transportation
B. Storing and cross-docking
C. Receiving and checking
D. Getting merchandise floor-ready
E. Negotiating with vendors
Answer:
Which of the following is an example of a variable cost for a retailer of electronic
equipment?
A. The display tables for mounting the computer, monitor, and printer
B. The cost associated with the free pack of paper for every computer printer sold
C. The store rent charged by the mall
D. The cost of obtaining the licenses required by the local government
E. The cost of manufacturing the electronic equipment
Answer:
_____ is the computer-to-computer exchange of business documents from the retailer to
the vendor, and vendor to retailer.
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:
Why is it important for stores to be designed with flexibility in mind?
A. It is less expensive for retailers to build several different types of flexible fixtures
than to build one inflexible fixture.
B. Retailing is a dynamic business, and retailers need to keep changing the merchandise
mix offered.
C. Customers find it hard to locate merchandise if fixtures are rigid.
D. Department managers never know what to expect from the planners allocations and
require the ability to display more merchandise at a moment's notice.
E. Environmental legalities require stores to have flexible designs to reduce waste.
Answer:
A retailer can retain employees and build a mutual commitment best by:
A. empowering employees.
B. reducing fixed costs.
C. treating employees all the same.
D. promoting the company.
E. improving supervision by retraining supervisors.
Answer:
Linda wants to buy a diamond pendant. She wants information on the best deals
available online. Which of the following technologies would best suit her requirement?
A. Self-checkout terminals
B. Widgets
C. Cookies
D. Personal shopper programs
E. All of these
Answer:
Which of the following products is NOT an example of a stock-keeping unit (SKU)?
A. Size12,white,full sleeve, Ralph Lauren shirts
B. Teen necklaces with matching bracelets and rings
C. Queen size Sealy mattress with extra back support and Scotch Guard
D. No-ad sunscreen, SPF 50 in 50 ounce squeeze-top dispenser
E. V-8 vegetable juice in 32 fluid ounce can
Answer:
