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Which of the following is an advantage of the use of sophisticated distribution and
information systems?
A. It creates a positive image of the brand in the minds of the consumers.
B. It offers an opportunity for the retailer to reduce operating costs.
C. It helps an organization to attain cultural diversity within its workforce.
D. It helps an organization to monitor the productivity of its entire workforce.
E. It helps an organization to monitor the movements of its employees.
Answer:
Toss LLC, a chain of sports equipment retailers, plans to invest in a retail operation in a
foreign country. Which of the following categories of investments does this belong to?
A. Philatelic investment
B. Alternative investment
C. Inventory investment
D. Portfolio investment
E. Direct investment
Answer:
The Bow Shop caters to archery enthusiasts. It sells bows starting at $300. The
maintained markup used by the store is 60 percent. Reductions are estimated to be 12
percent. Calculate the store's planned initial markup percentage.
A. 55.55 percent
B. 48 percent
C. 60 percent
D. 64.29 percent
E. 72 percent
Answer:
By sharing common goals, buyers and vendors:
A. can avoid sharing each firm's most strategic information.
B. can pool their strengths and abilities to exploit potential opportunities.
C. can conclude that the long-term results of the relationship are insignificant.
D. do not have to coordinate systems for the partnership to succeed.
E. commonly miscalculate the cost of merchandise.
Answer:
Which of the following statements is not true about Huff Gravity Model?
A. The model specifies two factors that assess the probability: (1) the attractiveness of
the store's location and (2) the time it takes a consumer to travel to the store.
B. It predicts the probability of a customer going to a specific store location.
C. The formula indicates that the larger the size of the store compared with competing
stores' sizes, the greater the probability that a customer will shop at the location.
D. It is assumed that a larger size is generally more attractive in consumers' eyes
because it means more merchandise assortment and variety.
E. The greater travel time or distance for the consumer, compared with that of
competing locations, the higher probability that the consumer will shop at the location.
Answer:
Target Corporation is planning to give $500 million by the end of 2015 to support
education and help kids learn to read. Since 1962, Target has committed 5% of its
income to support local communities. Target uses _____ to communicate their
continued commitment to local communities.
A. public relations
B. brand awareness
C. cooperative advertising
D. brand placement
E. brand associations
Answer:
Why is managing diversity beneficial to a company?
A. It leads to a more homogenized workforce.
B. It is mandatory under federal law.
C. U.S. demographics reveal a more homogeneous population and companies should
follow suit.
D. Retailers can better understand and respond to the needs of their customers.
Answer:
Which of the following characteristics is most likely to be the least sustainable
competitive advantage?
A. Convenient locations
B. Ability to get scarce merchandise
C. Shared systems with vendors
D. More sales promotions
E. Coordination of procurement efforts
Answer:
A vendor that employs sales associates for retailers to visit stores, analyze their business
and inventory, and create displays of their products will most likely also utilize what
method of product delivery?
A. Direct store delivery
B. Consumer direct fulfillment
C. Drop-shipping
D. Cross-docking
E. Reverse logistics
Answer:
In a national print advertisement, Levi's was showcasing their new denim jean products.
At the bottom of the ad, Macy's logo was found as a place where the new denim jeans
could be purchased by customers. This is an example of _____.
A. co-op advertising
B. partnering promotions
C. a double truck
D. a double pocket promotion
E. a spot promotion
Answer:
The _____ arranges fixtures and aisles asymmetrically.
A. racetrack layout
B. gondola layout
C. grid layout
D. loop layout
E. free-form layout
Answer:
Why are inventory carrying costs higher for retailers who source internationally?
A. Lead times are longer, and there is a need to maintain higher levels of safety stocks.
B. There is no way to predict the extra tariffs that will be levied by importing countries.
C. Labels of origin are typically put on products and need to be removed upon arrival.
D. Changes in fixed costs result in additional inventory.
E. Foreign distribution centers charge higher storage fees.
Answer:
The major retailers, typically a large department store or big-box store in a shopping
center is referred to as the _____ store.
A. parasite
B. anchor
C. location rival
D. leader
E. alpha
Answer:
Which of the following is not a destination store?
A. RadioShack
B. IKEA
C. AMC Movie Theaters
D. The Home Depot
E. Kroger grocery store
Answer:
Gross leasable area (GLA) is the real estate industry's term for the total floor area
designed for the retailer's occupancy and exclusive use, including any basements,
mezzanines, or upper floors.
Answer:
Which of the following HR activities can build a competitive advantage for retailers?
A. Work-life balance programs
B. Selective hiring and training
C. Policies and compensation
D. Compensation and incentives
E. Incentives and benefit programs
Answer:
Which of the following products is an example of a classification?
A. Sweaters
B. Infant apparel
C. Polo shirts
D. Shoes
E. Formal shirts
Answer:
Which of the following is NOT an element in the retail mix?
A. Competitive response
B. Merchandise pricing
C. Location
D. Customer service
E. Advertising and promotion
Answer:
When a multilevel direct selling becomes a pyramid scheme, _____.
A. annual sales of products often double
B. the salespeople are no longer independent agents
C. the use of the party plan becomes more commonplace
D. the selling format is usually franchised
E. relatively little merchandise is sold to end users
Answer:
All of the following are terms for products developed by retailers EXCEPT _____.
A. store brands
B. private-label brands
C. house brands
D. own brands
E. manufacturer's brands
Answer:
Which of the following retailers is the dependent on traffic counts?
A. 7-Eleven
B. Macy's
C. Home Depot
D. Old Navy
E. Hot Wings
Answer:
Customer relationship management programs are also known as:
A. transitional programs.
B. sustaining programs.
C. twelve-step programs.
D. incentive programs.
E. loyalty programs.
Answer:
Even though Veronica has not performed well as a sales associate, she got excellent
ratings on her performance appraisal because one week before she was evaluated, she
made a $35,000 sale to the city water department. This is an example of the _____.
A. excessive severity
B. opportunity bias
C. pitchfork effect
D. halo effect
E. recency bias
Answer:
To respond to a competitive discount environment, Walmart is fighting back by _____.
A. converting its discount stores into supercenters
B. leasing retail space in its stores to independent merchants
C. focusing on high customer service
D. converting the discount stores into convenience stores
E. expanding into rural locations
Answer:
Which of the following is the process by which a retailer attempts to offer the
appropriate quantity of the right merchandise, in the right place and at the right time
while meeting the company's financial goals?
A. Category management
B. Quick response inventory management
C. Merchandise management
D. Inventory control
E. Materials procurement and handling
Answer:
By using _____, stores can effectively organize their merchandise to follow the eye's
natural movement.
A. vertical merchandising
B. diagonal organization
C. purchase visibility
D. rounder displays
E. a page format
Answer:
Which of the following is the best style of leadership?
A. Chaotic leadership
B. Democratic leadership
C. Autocratic leadership
D. Persuasive leadership
E. All of these
Answer:
John plans to start a grocery store in his locality. Which of the following is most likely
to give him the least sustainable competitive advantage in the market?
A. Convenient locations
B. More employees
C. Exclusive merchandise
D. Coordination of procurement efforts
E. Helpful sales force
Answer:
The release of the new Harry Potter book brought excitement in Enid's neighborhood.
The local Book Universe store sold thousands of vouchers for the night of the release.
The store invited Harry Potter enthusiasts to come for a party at the store that lasted
until midnight when the book would be available for purchase. Book Universe is seen
developing a customer retention program based on:
A. a market basket analysis.
B. creating a sense of community among its customers.
C. 1-to-1 retailing programs.
D. a tiered rewards program.
E. the concept of add-on selling offers for preferred customers.
Answer:
Which of the following approaches toward retaining customers has retailers offering
unique benefits and targeted messages to individuals?
A. Segmentation
B. Personalization
C. Frequent-shopper programs
D. Add-on selling
E. Community
Answer:
A _____ identifies the target market, the merchandise and services that will be offered,
and how the company will achieve long-term advantage over its competitors.
A. retail strategy
B. corporate strategy
C. retail mix
D. supply chain
E. product mix
Answer:
Which of the following statements is true of a tiered reward structure?
A. It provides an incentive for customers to consolidate their purchases with one retailer
to reach the higher tiers.
B. It helps retailers determine which products customer purchases during a single
shopping trip.
C. It uses software to discover new insights into the buying patterns of customers using
large databases.
D. Customers belonging to the same tier form a retail brand community.
E. A tiered reward structure charges customers who use services.
Answer:
Similar to the other rule-of-thumb methods, the _____ doesn't allow retailers to exploit
the unique opportunities or problems they confront in a market.
A. percentage-of-sales method
B. competitive parity method
C. objective-and-task method
D. marginal analysis method
E. affordable budgeting method
Answer:
The _____ makes it illegal to discriminate in hiring and terminating people over the age
of 40 years.
A. Americans with Disabilities Act
B. Norris-Laguardia Act
C. Taft-Hartley Act
D. Age Discrimination in Employment Act
E. Civil Rights Act of 1991
Answer:
_____ leaders make all decisions on their own and then announce them to employees.
A. Chaotic
B. Autocratic
C. Democratic
D. Persuasive
E. Transformational
Answer:
