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Which of the following is a typical reaction that customers exhibit when experiencing
multiple stockouts?
A. Switching to another retailer
B. Patronizing the retailer
C. Promoting the retailer on social media
D. Initiating litigation against the retailer
E. Reviewing product attributes
Answer:
The executives for New Haus LLC set the retail objective for the company. These
objectives are broken down in order to create the objectives for each merchandise
category, as well as for each region of the country. Further breakdowns of the objectives
occur when the executives' objectives reach the buyers who must personalize those
objectives. This is an example of _____ planning.
A. accountable design
B. decentralized
C. functional development
D. indirect
E. top-down
Answer:
Why should a retailer be concerned with building a sustainable competitive advantage?
A. It could increase organizational turnover.
B. It would decrease organizational commitment.
C. It could decrease organizational productivity.
D. It could result in short-term profitability.
E. It could result in long-term profitability.
Answer:
Which of the following is a similarity between hypermarkets and supercenters?
A. Both are common in the United States.
B. Both offer self-service.
C. Both carry a negotiable percentage of nonfood items.
D. Both avoid the sale of perishables.
E. Both lack parking facilities for customers.
Answer:
Marcel works in the linen department of a large department store. When a customer
arrives to collect a tablecloth that she had specially ordered, she is disappointed to know
that the delivery of the ordered merchandise has been delayed. Marcel is able to use
empowerment to bridge the _____ by offering to deliver the product to the customer's
residence.
A. knowledge gap
B. delivery gap
C. communication gap
D. research gap
E. brand gap
Answer:
As Chelsea walked through the concourse to her connecting flight to Spain, she walked
by a place selling CDs to learn a foreign language. Since she needed to brush up on her
conversational Spanish, she talked with the person standing with the cart. The cart of
merchandise would be described as a _____.
A. kiosk
B. parasite store
C. store within a store
D. timed leased agreement store
E. pop-up shop
Answer:
Which is the final step in the CRM process?
A. Analyzing data
B. Developing CRM programs
C. Constructing a customer database
D. Identifying the target customers
E. Implementing programs
Answer:
Which of the following statements could be a problem for a retail chain with a
decentralized organizational structure?
A. High employee turnover at the local store level due to lack of sense of empowerment
B. The inability to respond quickly to a local competitor who is trying to gain a price
advantage
C. Missed sales because the merchandise mix does not appeal to the local taste
D. Inconsistency in assortments and prices from one store to another within the same
company
Answer:
By obtaining information about customer preferences, and past purchase behavior,
retailers operating an electronic channel are able to:
A. design more secure sites for credit card users.
B. develop faster download times.
C. promoteshowrooming.
D. respond immediately to consumer inquiries.
E. tailor merchandise and recommendations.
Answer:
When Raisa walked into the local convenience store, she saw it had parallel aisles with
shelves on either side. Immediately, she knew the retailer had used a _____ as a design
for its store.
A. racetrack layout
B. grid layout
C. loop
D. free-form layout
E. boutique layout
Answer:
Retailers use customer transaction data to:
A. identify their best customers.
B. match the needs of a store's local market.
C. create customized promotions.
D. tailor product assortments.
E. all of these.
Answer:
Shopping centers consisting primarily of collections of big-box retail stores, such as
Walmart, TJMaxx, Home Depot, Dick's Sporting Goods, and Borders are called:
A. community centers.
B. neighborhood centers.
C. power centers.
D. lifestyle centers.
E. theme centers.
Answer:
One way for a buyer to become familiar with products and styles is to:
A. interact with retail exchanges.
B. attend trade shows.
C. become acquainted with diverted merchandise.
D. insist on objective information.
E. have and maintain a common goal with vendors.
Answer:
Which of the following steps is typically the first step in the strategic retail planning
process?
A. Develop a retail mix to implement strategy.
B. Evaluate performance and make adjustments.
C. Define the business mission.
D. Evaluate strategic alternatives.
E. Identify strategic opportunities.
Answer:
_____ is a method of displaying merchandise in which the retailer exposes as much of
the product as possible to catch the customer's eye.
A. Tonnage merchandising
B. Vertical merchandising
C. Mass marketing
D. Product visibility
E. Frontal presentation
Answer:
Which of the following is NOT an example of intertype competition?
A. A supermarket and a fresh flower stand
B. A coffee shop and a fast food restaurant
C. A supercenter and a pharmacy
D. An American Eagle store and a Macy's store
E. A Target store and a Walmart store
Answer:
Because of markdowns, discounts to employees and customers, and merchandise
reductions, _____.
A. the actual selling price is lower than the initial sales price
B. the maintained markup is always less than the gross margin
C. the total revenue becomes equal to the total cost
D. the value of average inventory at cost is less than its receipt value
E. the initial markup is always lower than the maintained markup
Answer:
_____ is a postconsumption evaluation of how well a store or product meets or exceeds
customer expectations.
A. Attribution
B. Contemplation
C. Analysis
D. Satisfaction
E. Consideration set
Answer:
Howard thought his expense control problems were resolved when he decided he would
hire sales clerks from the local high school and pay them minimum wage at his golf
shop. Which of the following statements is most likely to be true of Howard's decision?
A. He will probably have higher employee turnover.
B. He will probably have lower employee absenteeism.
C. He will probably have lower employee turnover.
D. He will probably have better employee productivity.
E. He will probably achieve higher organizational commitment.
Answer:
Which of the following statements is an advantage of using distribution centers over
direct store delivery?
A. Individual stores that forecast and draw from a DC are more cost efficient.
B. The DCs have the advantage of keeping extra merchandise as backup stock in the
store.
C. Direct store delivery is always more expensive.
D. The DCs enable the retailer to carry less overall inventory.
E. The DC can always deliver faster than a vendor.
Answer:
A(n) _____ is the smallest unit available for inventory control.
A. category
B. stock-keeping unit
C. classification
D. merchandise group
E. assortment
Answer:
Which of the following statements is true of centralization?
A. Centralization typically increases costs.
B. Retailer stores are required to hire more managers with centralization.
C. Centralization allows management to better tailor its offering to the needs of the
local market.
D. Centralization provides the opportunity to have the best people make decisions for
the entire corporation.
Answer:
Sam's merchandise is sold in large quantities and stacked high on metal shelving. This
merchandising gives the customer a message of low prices. Which of the following
merchandising techniques is Sam's using?
A. Tonnage merchandising
B. Price lining
C. Color presentation
D. Frontage presentation
E. Atmospherics
Answer:
_____ refers to a potential customer's ability to recognize or recall that the brand name
is a particular type of retailer or product/service.
A. Brand equity
B. Brand personality
C. Brand positioning
D. Brand image
E. Brand awareness
Answer:
Harriet's Wimsey is a bookstore for people who love mysteries. How would a complete
set of P. D. James mystery novels, a first edition copy of The Maltese Falcon, the
money in the cash register, and an IOU from a loyal customer who forgot her wallet one
day when she came to purchase the newest Dorothy Cannell book be listed on the
store's balance sheet?
A. As owners' equity
B. As current liabilities
C. As fixed assets
D. As long-term liabilities
E. As current assets
Answer:
Which of the following is not an example of a fixed asset for a lawn care service?
A. The trailer used to haul away debris
B. The plant nursery owned by the service
C. The bucket truck it uses to trim trees
D. A computer which is used to manage the store's inventory
E. Its accounts receivable
Answer:
Which of the following does NOT describes an end-cap?
A. They are displays located at the end of an aisle.
B. They have high visibility.
C. Product sales increase dramatically when merchandise is featured on an end-cap.
D. Retailers use end caps for higher-margin, impulse, and sale merchandise.
E. They are most often used with a free-form layout.
Answer:
If the executives for Office Max LLC, a chain of office supply stores, developed the
chain's objectives by asking buyers and store managers to forecast sales and
merchandise for the next year, and then transmitted those estimates up the organization
to the top level, it would be an example of _____ planning.
A. accountable
B. bottom-up
C. conventional
D. direct
E. functional
Answer:
Which of the following is neither a store brand nor a national brand?
A. Premium brand
B. Exclusive brand
C. Generic brand
D. Copycat brand
E. Private-label brand
Answer:
At the new toy store that opened near his home, Ryan noticed all the products were
priced at $.49, $.79, or $.99 endings. What type of pricing is the store following?
A. Odd pricing
B. Unit pricing
C. Horizontal pricing
D. Mixed pricing
E. Promotional pricing
Answer:
A retailer in Lincoln, Nebraska, who wants to open a store that will sell surfboards and
surfing accessories, finds that the local market is very small. He would be able to serve
a national market better by means of Internet marketing. Which factor for evaluating a
market segment is seen in the given scenario?
A. Competition
B. Substantiality
C. Reachability
D. Actionability
E. Identifiability
Answer:
_____ create enthusiasm in their employees through their personal charisma.
A. Chaotic leaders
B. Democratic leaders
C. Transformational leaders
D. Autocratic leaders
E. Persuasive leaders
Answer:
