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Sam loves shopping. She frequently goes window shopping in the city. During times of
need, she visits the nearest supermarket even though she loathes going there. Which of
the following is most likely to be the reason why Sam shops in the supermarket?
A. Unique merchandise
B. Brand image
C. Customer service
D. Location
E. Price
Answer:
A retailer's primary competitors are other retailers that:
A. are more vertically integrated.
B. use the same type of store format.
C. have the same target market.
D. sell online.
Answer:
Mixed-use developments (MXDs) are popular with retailers because they:
A. have higher security.
B. bring additional shoppers to their stores.
C. offer low rent.
D. offer short-term leasing agreements.
E. provide free storage facilities to attract retailers.
Answer:
What is an advantage of using RFID over traditional bar codes?
A. RFID eliminates the bullwhip effect.
B. RFID technology is expensive.
C. RFID holds more data stored on the device.
D. RFID makes tagging and pricing at DCs unnecessary.
Answer:
Each time a customer makes a purchase at a Walmart store from the health and beauty
area, data is transmitted to the nearest distribution center so the merchandise can be
replenished and sent on the next truck delivery. Which of the following strategies does
Walmart utilize?
A. Cross check logistic strategy
B. Pull supply chain
C. Cost efficient logistic strategy
D. Push supply chain
E. Influential logistic strategy
Answer:
Why do movie theaters sell tickets for an afternoon showing of a movie at a lower price
than the 7 p.m. showing of the same movie?
A. To deal with the perishability of services
B. To make sure the service offered is consistent
C. To deal with the intangible characteristic of services
D. To deal with the incompatibility characteristic of services
E. To minimize inventory losses
Answer:
An agreement between retailers that are in direct competition with each other to set the
same prices is called _____.
A. horizontal price fixing
B. vertical price fixing
C. MSRP pricing
D. predatory pricing
E. price elasticity
Answer:
Which of the following is a disadvantage of freestanding sites?
A. Hard to access
B. Limited trade area
C. Heavy restrictions
D. Low vehicular traffic
E. Low visibility
Answer:
A massage parlor requires its therapists to keep a database on each customer and
include in that database what was done on each visit for customer aches and pains.
Which of the following service characteristics is the parlor trying to cope with?
A. Intangibility
B. Perishability
C. Inconsistency
D. Consumability
E. Compatibility
Answer:
Mainland Automobiles Inc. classifies its market on the basis of income into low,
middle, and high income groups. Which market segmentation scheme has the company
used?
A. Benefit segmentation
B. Buying situation segmentation
C. Demographic segmentation
D. Composite segmentation
E. Psychographic segmentation
Answer:
Diego began his first job out of college with a consulting firm. He wanted to make a
good impression on his superiors. He noticed the attire of the associates when he
attended the interview and decided to dress in a similar manner. Which social factor has
influenced Diego's dressing style?
A. Culture
B. Reference group
C. Consideration set
D. Peer group
E. Subculture
Answer:
What type of store is Dollar General considered to be?
A. Off-price retailer
B. Department store
C. Full-line discount store
D. Extreme-value retailer
E. Specialty retailer
Answer:
What does centralization mean for retailers?
A. All buying decisions are made regionally to best satisfy the customer.
B. The authority for decisions is delegated to corporate managers.
C. The location of corporate headquarters is located in the central part of the country.
D. The authority for decisions is made at the nearest central office.
E. Centralization decreases efficiency.
Answer:
Sara, who works at WorldFly LLC, is responsible for coordinating deliveries to the
distribution center. Which of the following terms best describes Sara's role?
A. Dispatching
B. Receiving
C. Checking
D. Ticketing
E. Marking
Answer:
Which of the following is not true of reverse auctions?
A. Retail buyers provide a group of potential vendors with a specification for what they
want.
B. There is one buyer, the retailer, and many potential sellers, the manufacturing firms.
C. Retailers use it to get quality private-label merchandise at low prices.
D. Reverse auctions are common among commodities and seasonal products.
E. The retailer chooses the lowest bidder regardless of other factors.
Answer:
A retailer's role in a supply chain is to:
A. act as the liaison between manufacturers and suppliers.
B. buy merchandise exclusively from the manufacturers.
C. negotiate with manufacturers to draw contracts for wholesalers.
D. add value to products and services sold to customers.
E. sell goods and services to wholesalers.
Answer:
A price experiment:
A. is method of determining the most profitable price for a product.
B. cannot be performed if the retailer uses POS terminals.
C. is a less accurate method of determining buyer response to price changes than a
consumer panel.
D. is useful for obtaining data for a cost-oriented pricing strategy.
E. is a quick and efficient method to decide on a price for a product.
Answer:
Connections to major highways, pedestrian traffic flow, and availability of mass transit
are examples of _____.
A. accessibility
B. visibility
C. availability
D. cost
E. exclusivity
Answer:
In perceptual maps, retailers that are closer to an ideal point are evaluated:
A. less favorably by the consumers.
B. more favorably by the producers.
C. more favorably by the suppliers.
D. less favorably by the suppliers.
E. more favorably by the consumers.
Answer:
The design of organizational structure needs to match the firm's strategy. Which of the
following statements shows a mismatch?
A. Costco with a competitive advantage of low cost tries to minimize the number of
employees by assigning decisions to a few people at corporate headquarters.
B. Walmart targeting price-sensitive customers centralizes organization structures.
C. Retailers targeting high-fashion clothing customers have more managers.
D. Best Buy built a competitive advantage based on low cost by allowing
decision-making at the local store level.
E. High-fashion clothing retailers tailor their merchandise and service to meet the needs
of local markets.
Answer:
Airlines and credit cards that offer points for each dollar spent are utilizing ____ for
effective customer relationship management.
A. a loyalty program
B. cookies
C. share of wallet
D. market baskets
E. communities
Answer:
The _____ can be closed by developing specific guidelines and systems for delivering
high-quality service.
A. communication gap
B. standards gap
C. research gap
D. knowledge gap
E. delivery gap
Answer:
What is the difference between multiple regression analysis and the analog approach?
A. The analog approach gathers its information through nationwide customer surveys.
B. Multiple regression analysis uses geo-demographic segmentation systems to
determine potential sales in a new market.
C. The analog approach uses statistics rather than judgment to predict sales.
D. Multiple regression analysis uses statistics rather than judgment to predict sales at
existing store locations.
E. Multiple regression analysis cannot be used to determine potential sales like the
analog approach.
Answer:
End caps are used for:
A. higher-margin, impulse, and sale merchandise.
B. displaying merchandise that is being promoted.
C. housing mannequins to display apparel.
D. supporting freestanding displays which attract customers.
E. supporting shelves and racks to be mounted on walls.
Answer:
Which of the following steps is typically the previous step before 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:
Changing importance weights is difficult because:
A. it involves the addition of a new benefit.
B. importance weights reflect customers' personal values.
C. many customers make purchases based on a single attribute.
D. the retailer needs to improve performance on all benefits.
E. the retailer has to include a wide range of fair trade merchandise.
Answer:
Procedural fairness:
A. significantly increases the variability in handling customer complaints.
B. is achieved when store employees have an antagonistic attitude when handling
complaints.
C. is customers' perceptions of the benefits received compared with their costs in terms
of inconvenience or monetary loss.
D. makes customers feel they have been dealt with fairly when store employees follow
company guidelines.
E. empowers store employees and gives them more flexibility to resolve complaints
than distributive fairness.
Answer:
Jake is looking to rent a retail space in a shopping center for his restaurant business. He
is looking for a space of around 250,000 square feet with annual occupancy cost of
around $50 per square feet. An ideal space should be high on pedestrian traffic but low
on vehicular traffic. Which of the following locations will best suit Jake?
A. Neighborhood and community shopping centers
B. Power centers
C. Regional and super-regional enclosed malls
D. Theme/festival centers
E. Outlet centers
Answer:
Gibson's is a clothing retailer. It divides its market based on the age group of the
customers and accordingly designs its merchandise. Which of the following approaches
of market segmentation has Gibson's used?
A. Lifestyle segmentation
B. Benefit segmentation
C. Geographic segmentation
D. Psychographic segmentation
E. Demographic segmentation
Answer:
Which of the following retailers would be the most dependent on traffic counts?
A. 7-Eleven
B. Macy's
C. Bed, Bath and Beyond
D. Walmart Supercenter
E. Bill's Wash-n-Fold
Answer:
Both a weight-loss center and a health club would be pleased to learn that health and
fitness, along with individualism, mastery and control, and self-improvement are core
values common in the _____ of the U.S.
A. experiential base
B. environment
C. civilization
D. marketing mix
E. culture
Answer:
