_____ delegate challenging work to subordinates, have free and open communication
with them, and provide personal mentoring to develop subordinates.
A. Chaotic leaders
B. Autocratic leaders
C. Persuasive leaders
D. Transformational leaders
E. Democratic leaders
Answer:
What is the drawback of utilizing category captains?
A. The vendor category captain could take advantage of their position and maximize
their own sales.
B. Retailers tend to ignore recommendations of the category captain.
C. Retailers take advantage of the information and misuse it.
D. Retailers can take advantage of their position and minimize competing brands.
E. Vendor category captains are not in a good position when compared to retailers to
manage a category.
Answer:
Which of the following statements is true of vertical integration?
A. It is the diversification by retailers into manufacturing.
B. It is the diversification by wholesalers into retailing.
C. It is the diversification by manufacturers into marketing.
D. It is the diversification by supply chain management into marketing.
E. It is the diversification by marketing into manufacturing.
Answer:
Which of the following is not a component in the calculation of net sales?
A. Gross sales
B. Customer returns
C. Promotional allowances
D. Interest
Answer:
CRM programs directed toward customers in the high-value segment:
A. offer more discounts.
B. are focused on maintaining loyalty.
C. give more importance for frequent-shopper programs.
D. attempt to discourage 20 percent of shoppers.
E. provide online shopping options without processing charges.
Answer:
Which of the following terms is NOT one of the gaps that contributes to the service
gap?
A. Knowledge gap
B. Standards gap
C. Performance gap
D. Communication gap
E. Delivery gap
Answer:
When a regular customer calls a well-known pizza delivery restaurant, the order-taker
types in the caller’s name. The computer screen shows the customer’s address, phone
number, directions to his or her house, his or her usual order, and the date and
frequency of orders. If the customer has not ordered during a two-month period, or the
average number of orders has been down, then the pizza parlor mails them a coupon of
their favorite pizza. Which of the following does the pizza parlor use?
A. Data warehouse
B. Data scrapping
C. Web scrapping
D. Direct marketing
E. Direct account management
Answer:
Which of the following statements is NOT TRUE of frequent-shopper programs?
A. Frequent-shopper programs are programs that identify and provide rewards to
customers who patronize a retailer.
B. Frequent-shopper programs are also commonly called loyalty programs.
C. Frequent-shopper cards are issued on the basis of market basket analysis.
D. Frequent-shopper programs include a private-label credit card offered by a retailer.
E. Frequent-shopper programs can provide customer information automatically to the
retailer when customers have their program card scanned at the time of transaction.
Answer:
Operating profit margin is also known as:
A. earnings before interest, taxes, and depreciation (EBITDA).
B. selling, general and administrative expenses (SG&A).
C. stock turnover (STO).
D. stock to sales ratio (S/S).
E. return on assets (ROA).
Answer:
_____ enable online retailers to collect customer information as they navigate through
the retailers’ websites.
A. Blogs
B. Widgets
C. Apps
D. Cookies
E. Podcasts
Answer:
Which of the following is an example of unrelated diversification?
A. Operating in similar locations
B. Creating a new management information system
C. Using the same distribution
D. Advertising in the same newspapers
E. Purchasing from the same vendors
Answer:
In the United States, retailers often focus their analysis on a _____ because consumers
tend to shop within this area.
A. micropolitan statistical area
B. competitive statistical area
C. statistical demographic area
D. metropolitan statistical area
E. trade area
Answer:
Dream Homes is an appliance store. It recently launched its own brand of freezers in
order to build customer loyalty. The store launched three different models to cater to
low, middle, and high income groups. The freezers are also priced accordingly. These
freezers are exclusive to Dream Homes and cater to all customer segments. This pricing
strategy involving price points within a merchandise category is known as _____.
A. price lining
B. price bundling
C. odd pricing
D. zone pricing
E. leader pricing
Answer:
Mindy’s LLC, a fashion brand, has a significant cost benefit that facilitates success in
international markets in which price plays an important role in consumer decision
making. Which of the following is most likely a reason for Mindy’s success in
international markets?
A. A global culture
B. Adaptability
C. Human resources
D. Financial resources
E. Globally sustainable competitive advantage
Answer:
Which of the following steps is typically the next step after establishing specific
objectives and allocating resources in the strategic retail planning process?
A. Identifying strategic opportunities
B. Developing a retail mix to implement strategy
C. Evaluating performance and making adjustments
D. Defining the business mission
E. Conducting a situation audit
Answer:
_____ is the ability to perform the service dependably, accurately, and as promised.
A. Reliability
B. Assurance
C. Tangibility
D. Empathy
E. Responsiveness
Answer:
A special type of resale store where merchandise is donated and proceeds go to charity
is called a(n) _____.
A. extreme-value retailer
B. thrift store
C. consignment shop
D. dollar store
E. supercenter
Answer:
Which of the following statements is not a benefit of EDI to retailers and their vendors?
A. EDI reduces cycle time.
B. Information flows quicker, so inventory turnover is higher.
C. It improves overall quality of communications.
D. It is a computer readable format that can be easily analyzed.
E. EDI increases the desirability of the product for the end consumer.
Answer:
In staple merchandise management systems, the _____ is the amount of inventory
below which the quantity available shouldn’t go or the item will be out of stock before
the next order arrives.
A. service level
B. order point
C. base stock
D. perpetual inventory
E. average inventory
Answer:
Tara gets her oil changed only at Tires Plus Inc. This commitment to Tires Plus Inc.
illustrates:
A. ethical business practices.
B. store awareness.
C. good customer service.
D. customer loyalty.
E. price competitiveness.
Answer:
_____ are centers that often include office spaces, hotels, residential complexes, civic
centers, or convention complexes on top of or attached to a shopping center.
A. Multilevel marketing centers
B. Mixed-use developments
C. Convention centers
D. Marketing complexes
E. Urban shopping arenas
Answer:
(p.402-403) Which of the following strategies is NOT viable for liquidating markdown
merchandise?
A. Sell to another retailer.
B. Consolidate unsold merchandise.
C. Adopt a keystoning strategy.
D. Sell at Internet auction.
E. Return to vendor.
Answer:
Which of the following is the formula to determine the return on investment for an
advertisement?
A. (Net sales + Advertising cost)/Advertising cost
B. (Net sales – Advertising cost)/Advertising cost
C. Advertising cost/(Net sales + Advertising cost)
D. Advertising cost/(Net sales – Advertising cost)
E. (Advertising cost – Net sales)/Advertising cost
Answer:
“Do It Again Sports” has everything a weekend warrior needs to get back into shape at
reduced prices. They feature an array of treadmills, weights, sporting gear, and helpful
staff. Thus, Do It Again Sports utilizes _____ as the scheme to segment the market.
A. lifestyle segmentation
B. demographic segmentation
C. buying situation segmentation
D. geographic segmentation
E. geodemographic segmentation
Answer:
A(n) _____ indicates the decision variables set by the buyer, such as product
availability, the backup stock needed to provide the product availability, and the order
points and quantities.
A. inventory management report
B. sell-through analysis
C. periodic inventory control system
D. perpetual inventory control system
E. automatic ordering report
Answer:
Which of the following statements about retailers holding inventory is FALSE?
A. This activity benefits customers with limited storage space, such as families living in
small apartments.
B. It allows manufacturers to efficiently make and ship merchandise in larger quantities.
C. Holding inventory in a store helps serve customers’ needs.
D. Retailers keep inventory so products are available when consumers want them.
E. Holding inventory reduces consumer’s cost of storing products.
Answer:
_____ help in measuring a customer’s CLV by using the data collected about customers.
A. Retail analytics
B. Risk analytics
C. Portfolio analyses
D. Biometrics
E. RFM analyses
Answer:
Which of the following does NOT describes appropriate space management?
A. Merchandise categories with high GMROI merit more space than merchandise
categories with lower GMROI do.
B. Less space is allocated to fast selling merchandise to allow more shelf space to
encourage sales of slower moving items.
C. A retailer over allocates space to categories purchased by their platinum customers,
the customers with the highest lifetime value.
D. A retailer over allocates space to some low productivity categories such as milk
because an extensive assortment in these categories attracts customers to the store and
positively affects the sales of categories with higher GMROIs.
E. High turnover items need to be restocked more frequently to avoid stockouts.
Answer:
A(n) _____ has two crossbars that sit perpendicular on a pedestal.
A. end cap
B. rounder
C. straight rack
D. feature fixture
E. gondola
Answer:
Which of the following forms of communication is the most expensive?
A. Publicity
B. Salespeople
C. Advertising
D. Magazine
E. Newspaper
Answer:
Which of the following is a drawback of selling private-label merchandise?
A. National brands are far superior to private-label brands.
B. National brands are produced with better quality.
C. Significant investment is needed to develop, manage, and market private-label
brands.
D. Gross margins are lower with private-label brands than with national brands.
E. Designing private-label merchandise is only possible for department store retailers.
Answer:
Which colors would be best suited to produce emotional, vibrant, hot, and active
responses from customers?
A. Blue and green tones
B. All the colors of the rainbow
C. White, eggshell, ecru, and other white hues
D. Red, gold, and yellow tones
E. Pink, red, and magenta tones
Answer:
_____ form a part of the microenvironment that influences retail management
decisions.
A. Competitors
B. Technologies
C. Politics
D. Legal aspects
E. Ethics
Answer:
The Main Game, a retail store, appeals to people who enjoy role-playing games. The
store carries games, books, and has a play area where fans can meet and play against
one another. The store mainly targets people who enjoy adventure and games.
Therefore, the store is using _____ as the scheme for classifying its target market.
A. geodemographic segmentation
B. demographic segmentation
C. lifestyle segmentation
D. geographic segmentation
E. benefit segmentation
Answer:
A _____ is the basic unit of analysis for making merchandise management decisions.
A. department
B. stock-keeping unit
C. classification
D. merchandise group
E. merchandise category
Answer: