Which of the following is true of the career opportunities offered by the retailing
industry?
A. Retailers employ people with exclusive expertise in supply chain management.
B. Retail managers are often given considerable responsibility early in their careers.
C. Retailing offers limited opportunities for entrepreneurs.
D. Retail management is not a very lucrative career path.
E. People with a marketing background have limited opportunities in the retail industry.
Answer:
Janine buys swimwear for a chain of apparel stores. At a recent trade show, she took the
opportunity to meet with a few vendors. During a meeting with the vendor that she
normally purchased from each season, he proposed a weekend in the Cayman Islands to
view the swimwear that European tourists were wearing. Janine knows that it would be
beneficial to see what European tourists are wearing and then translate what she is
seeing into her assortment for her target customers. Before continuing her discussions
with the vendor, what should she do?
A. She should ensure that all her work is completed before she leaves for an extended
weekend.
B. She must inform her divisional merchandise manager of the proposal.
C. She should look at her budget to see how much product she would be able to
purchase from this vendor this season.
D. She should see what other vendors might be offering.
E. She should check to see if there might be a better place than the Cayman Islands to
scope out swimwear trends.
Answer:
Which of the following refers to a town removed from larger U.S. cities, often by up to
100 miles?
A. Micropolitan Statistical Area
B. Competitive Statistical Area
C. Statistical Demographic Area
D. Metropolitan Statistical Area
E. Trade area
Answer:
What is the drawback of using the Decennial Census of the United States?
A. The information in the Census is only for metropolitan areas.
B. The information included is gathered only once every ten years.
C. It is expensive to purchase and retailers usually find other means for the information.
D. The Census provides only numbers of people in an area, not specifics like household
income, level of education, etc.
E. The information provided requires interpretation by analysts.
Answer:
Which of the following statements is true about the racetrack layout?
A. It is also called the free-form layout.
B. It cannot be used in department stores because it makes large stores look cluttered.
C. It encourages unplanned purchasing.
D. It is not as aesthetically pleasing as the grid layout.
E. It is very cost efficient.
Answer:
Which of the following statements is TRUE about warehouse clubs?
A. Warehouse clubs carry a broad variety and deep assortment of merchandise.
B. Warehouse clubs are small and typically located in high-rent districts.
C. Warehouse clubs typically have low inventory holding costs.
D. Warehouse clubs offer extensive customer service.
E. Warehouse clubs offer its fast-selling items at high prices.
Answer:
Which of the following statements is true of a merchandise category?
A. It is the basic unit of analysis for merchandising decisions.
B. It is the smallest unit available for keeping inventory.
C. It is the unit of inventory least affected by seasonal trends.
D. It is the largest unit available for keeping inventory.
E. It is an assortment of complementary SKUs.
Answer:
A _____ is a target level used to motivate and evaluate performance.
A. quota
B. straight commission
C. compensation plan
D. group goal
E. draw
Answer:
Purchasing from factories that pay workers a living wage (more than the minimum
wage) and offer other benefits to the employees is called _____.
A. a closeout
B. power perimeter
C. cash wrap
D. flash sale
E. fair trade
Answer:
Ben saw a 30 minute TV show. During the show, the presenter was showing how to
prepare a variety of dishes so that they would be totally fat-free. Each item was
prepared using a special cooker. During the show, the audience was given several
opportunities to buy the cooker. Which of the following terms describes the 30 minute
show?
A. Infomercial
B. Widget
C. Showrooming
D. Catalog channel
E. Podcast
Answer:
Customer satisfaction is affected by the amount of time it takes to get a question
answered or a problem resolved. Retailers can minimize this time taken using all of the
following steps EXCEPT:
A. providing customers with clear and precise information.
B. requiring store employees to get their manager’s approval for all customer service
decisions.
C. reducing the number of employees that customers must contact to resolve their
issues.
D. not assuming they know what the customers are complaining about or what solution
the customers are seeking.
E. not interrupting the customers when they air their complaints.
Answer:
What kind of consumer decision making process is MOST closely associated with
retailer loyalty?
A. Extended problem solving
B. Habitual decision making
C. Impulsive problem solving
D. Limited problem solving
E. Contemplation
Answer:
The inner city is a _____.
A. high-income commercial area within a large city
B. low-income commercial area within a small city
C. high-income residential area within a small city
D. low-income residential area within a large city
E. high-income commercial area within a small city
Answer:
MarMa LLC, a retailer of auto accessories, plans to grow geographically. It has tied up
with independent international firms to facilitate its local logistical activities. Which of
the following entry strategies is being followed by MarMa?
A. Takeover
B. Joint venture
C. Acquisition
D. Merger
E. Strategic alliance
Answer:
Avis LLC, a chain of international supermarkets, has operations in 20 countries around
the world. Avis always encourages the rapid development of local management and
retains few expatriates in its overseas operations. Avis’s management ranks are truly
international. Which of the following is most likely a reason for the success of Avis in
international markets?
A. A global culture
B. Adaptability
C. Capital assets
D. Financial resources
E. Rigidity
Answer:
Convenience stores _____ than supermarkets.
A. make customers wait in a long checkout line
B. avoid selling lower profit products
C. offer a broad variety and deep assortment of merchandise
D. offer self-service to its customers
E. charge higher prices for similar products sold
Answer:
Which of the following is true of collaborative supply chain management?
A. It is difficult to implement these strategies when sourcing globally.
B. These systems are based on large inventories.
C. Collaborative systems are based on child labor laws and regulations.
D. Lead times are long when using these systems.
E. Interactions between the vendor and retailer are minimal.
Answer:
Which of the following types of retailers does not cater to shoppers who are engaged in
convenient shopping situations?
A. Convenience stores
B. Drugstores
C. Fast-food restaurants
D. Supermarkets
E. Auto dealerships
Answer:
_____ is a measure of space productivity used by retailers.
A. Price lining
B. Sales per square foot
C. Inventory turnover
D. Tonnage merchandising
E. Asset turnover
Answer:
Which of the following describes the limitations of vendor-managed inventory that
retailers may encounter?
A. Since the vendor owns the merchandise until it is sold by the retailer, at which time
the retailer pays for the merchandise, a retailer bears a financial risk.
B. Retail buyers and planners need to monitor inventory levels.
C. When the vendor coordinates the supply chain for its specific products, it does not
know what other actions the retailer is taking that might affect the sales of its products
in the future.
D. It takes longer for a product to go from design to the ordering to have the product on
the selling floor.
E. It is an added cost with little benefit for the retailer to share selling information with
their vendors.
Answer:
Which of the following statements is TRUE of the customer pyramid?
A. Customers in the iron segment need special attention from the retailer to grow their
potential to be better customers.
B. All customers regardless of their segment must receive equitable promotional
benefits.
C. Customers in the lead segment buy merchandise on sale or abuse return privileges.
D. Customers in the gold segment are the most profitable and loyal customers.
E. Customers in the platinum segment place little emphasis on customer service.
Answer:
Daily Needs and Smart Saves are two large retailers in Canada. They compete with
each other using similar marketing strategies. Which form of competition is seen
between these two retailers?
A. Intertype competition
B. Indirect competition
C. Intratype competition
D. Scrambled merchandising
E. Intrinsic competition
Answer:
Which of the following is an internal source of product information for a customer?
A. Past shopping experiences
B. Product demonstrations
C. Blogs
D. Search engines
E. Websites
Answer:
A(n) _____ limits the shopping center management from leasing to certain kinds of
tenants.
A. fixed-rate clause
B. cotenancy clause
C. exclusive-use clause
D. common area maintenance clause
E. prohibited-use clause
Answer:
The retail price of a sweater is $75, and the initial markup is 51 percent. Calculate the
cost of the product.
A. $33.75
B. $25.71
C. $28.50
D. $36.75
E. $42.85
Answer:
Which of the following is an additional compensation that is periodically awarded to
employees on the basis of their performance?
A. Bonus
B. Profit sharing
C. Gratuity
D. Stock option
E. Superannuation
Answer:
_____ is the difference between the recorded value of inventory based on merchandise
bought and received and the value of the actual merchandise in stores and distribution
centers divided by retail sales during the period.
A. Loss margin
B. Shrinkage
C. Obsolescence
D. Break-even point
E. Profit margin
Answer:
A(n) _____ is used by catalog retailers and direct markets to identify the best prospects
on the basis of how recently the customers made a purchase, how often they make
purchases, and how much they spent.
A. RFM analysis
B. 80-20 rule
C. customer pyramid
D. market basket analysis
E. share of wallet analysis
Answer:
Which of the following is a result of hiring inexperienced, low-wage employees?
A. Sales increase
B. Better customer loyalty
C. Extensive employee feedback
D. Higher labor expenses
E. High employee turnover
Answer:
Which of the following is a benefit of using realistic job previews to screen job
applicants?
A. Decrease in employee turnover
B. Increase in employee turnover
C. Tax benefits from the state government to the employer
D. Tax benefits from the federal government to the employer
E. Tax benefits from the federal government to the employees
Answer:
A toy store has acquired an edge over its competition that cannot be easily copied by its
competitors. Which of the following has the store achieved?
A. Customer brand affiliation
B. Sustainable competitive advantage
C. Customer loyalty
D. Service excellence
E. Brand recall
Answer:
Retailers provide important functions that increase the value of the products and
services they sell to consumers. Which of the following is NOT a value-creating
activity performed by a retailer?
A. Providing an assortment of products
B. Reducing production costs with innovative designs
C. Breaking bulk
D. Holding inventory
E. Providing an assortment of services
Answer:
When Nordstrom department stores launched a website to sell its merchandise to its
present customers; it took advantage of a _____ opportunity.
A. diversification
B. market format investment
C. market expansion
D. market penetration
E. retail format development
Answer: