What is the potential byproduct of promotional markdowns?
A. It is a way of achieving a break-even point.
B. Promotional markdowns benefit customers because they are charged according their
willingness to pay.
C. Retailers aim to get rid of unwanted merchandise through promotional markdowns.
D. The increased in-store traffic can lead to the purchase of other products at regular
prices.
E. Buyers are benefitted because they are charged according to the market segment to
which they belong.
Answer:
Willa is the manager of a pet store and wants to display an advertisement for dog food
on sale in the store window. What type of signage should she use?
A. Promotional signage
B. Category signage
C. Locational signage
D. Point-of-sale signage
E. Lifestyle signage
Answer:
A clothing retailer realizes that its customers desire the latest clothing designs and
accordingly maintains selection. Which criteria for evaluating retail segments is seen in
this example?
A. Accessible
B. Identifiable
C. Flexible
D. Actionable
E. Market size
Answer:
As a vendor, Melissa works well with a buyer she’s known for years at Dream Toys.
This year, Melissa’s line of toys had a few products that sold poorly, and it is now time
to show the Dream Toys’ buyer the next holiday season’s product line. Melissa knows
the Dream Toys’ buyer will be a hard negotiator. What should Melissa be prepared to
do?
A. Provide markdown money.
B. Suggest pulling out of Dream Toys for a season to strategize and reinvent.
C. Suggest selling the toys for another season giving consumers time to acclimate to the
products.
D. Advise that Dream Toys can sell the products at lower prices, but maintain the
original prices at other retailers.
E. Provide the Dream Toys buyer with a vacation package.
Answer:
Cliff struggled with the price of produce at his well-established produce markets. The
reputation of the markets attracts repeat customers from a 50-mile radius. Recently,
local farmers started increasing produce prices for him due to the upsurge in gas prices.
Now, Cliff feels it is time to pass the costs onto his customers. Which of the following
should Cliff estimate to determine the effect of price changes?
A. Price elasticity
B. Break-even point quantity
C. Fixed costs
D. Reference price
Answer:
Which of the following is NOT true of changing performance beliefs after a retailer gets
into the customers’ consideration set?
A. A retailer should focus on improving its performance on all benefits.
B. A change in a performance belief about an important benefit should result in a large
change in customers’ overall evaluations.
C. It is costly for a retailer to improve its performance on all benefits.
D. Retailers must focus on improving their performance on those benefits that are
important to customers in their target markets.
Answer:
When negotiating with a vendor, the best outcome for a retailer would be to:
A. dismiss the negotiation if there’s no agreement and ultimately cancel the vendor
relationship.
B. leave the negotiations with an advantage over the vendor.
C. have mutual gain.
D. give the vendor the advantage in the negotiation only to use it in your favor for the
following season.
E. agree to disagree on performance thresholds.
Answer:
Developing programs to motivate and coordinate employee efforts, providing
incentives, fostering a positive organizational culture, and managing diversity are
functions of the:
A. human resource management.
B. district management.
C. general store manager.
D. chief executive officer.
E. marketing manager.
Answer:
Cross-selling is most commonly practiced with the:
A. wholesale format development growth opportunity.
B. market expansion growth opportunity.
C. retail format development growth opportunity.
D. diversification growth opportunity.
E. market penetration growth opportunity.
Answer:
Home Day is a large supermarket. It recently launched its own brand of cereals called
Fast Bites equivalent to most national brands and also priced slightly lower. Therefore,
Fast Bites is an example of a(n) _____.
A. premium store brand
B. generic brand
C. copycat brand
D. parallel import
E. licensed brand
Answer:
Students often view retailing as part of marketing because:
A. retailing does not involve traditional business activities.
B. retailing involves the management of distribution systems.
C. retailing requires only people with expertise in marketing.
D. activities in retailing are confined to advertising and promotion.
Answer:
_____ are charges imposed by a retailer to stock a new item.
A. Chargebacks
B. Slotting allowances
C. Additional markup dollars
D. Advertising allowances
E. Markdown allowances
Answer:
Norman was recognized as the best Albertons’ employee of the year. His name, along
with the names of other winners, is engraved on a plaque that is prominently displayed
in the store. This is an example of _____.
A. job enrichment
B. an intrinsic reward
C. management by objective
D. an extrinsic reward
E. management by exception
Answer:
From the retailers view, _____ reduces the retailer’s supply chain costs and investment
because the vendor assumes the costs and risks of shipping the product to the customer.
A. drop shipping
B. push supply chain
C. pull supply chain
D. reverse logistics
E. direct store delivery
Answer:
Which of the following statements does NOT hold true for cross-shopping?
A. Consumers show cross-shopping patterns because one store cannot satisfy their often
conflicting, multiple needs.
B. People buy both premium and low-priced merchandise.
C. Customers patronize both expensive, status-oriented retailers and price-oriented
retailers.
D. Buying patterns of cross-shoppers provide great opportunities only for specialty
retailers.
Answer:
Which among the following is the major cost controlled by a store manager?
A. Advertising in radio
B. Employee compensation
C. Product service
D. Royalty fees
E. Product warranty
Answer:
Which of the following factors influences reductions?
A. The cost of alterations
B. The amount subtracted from the gross margin
C. Theft and accounting errors
D. Tax write-off for corporate volunteer hours
E. Format of saving for low profit quarters
Answer:
Which of the following statements does NOT describes the features of a grid layout?
A. It provides a visually exciting design.
B. It is well suited for shopping trips in which customers need to move throughout the
entire store and quickly locate products they want to buy.
C. It is well suited for grocery retailers.
D. It is cost efficient.
E. It efficiently utilizes vertical space.
Answer:
Which of the following is an example of extrinsic reward?
A. Meaningful work
B. Promotion
C. Team spirit
D. Positive environment
E. Open communication
Answer:
Which of the following statements is true about job interviews?
A. The most commonly used job interview is the stress interview.
B. The interview should utilize questions that have multiple parts.
C. The interviewer should ask close-ended questions.
D. The interviewer should ask leading questions.
E. The interviewer should be an active listener.
Answer:
_____ offer an inconsistent assortment of brand-name merchandise at a significant
discount off the manufacturers’ suggested retail price.
A. Off-price retailers
B. Department stores
C. Discount retailers
D. Convenience stores
E. Specialty retailers
Answer:
Bronson has shopped at several toy stores. However, he really likes The Toy Corner
because of the broad assortment offered for different age groups. Moreover, if a
particular toy is not available at the store, Bronson can place an order and have it
delivered directly to his home at a discounted price. Hence, Bronson feels that the
services offered by The Toy Corner:
A. are poor due to lack of instrumental support.
B. do not conform to promised delivery dates.
C. exceeds customer expectations.
D. do not provide value to customers.
E. are limited to specific customers.
Answer:
_____ helps in the prompt resolution of service issues.
A. Procedural rigidity
B. Intangibility
C. Employee empowerment
D. Knowledge gap
E. Service gap
Answer:
Glamour Looks is a beauty salon. It offers various skin and hair treatment packages
based on customer requests. Which of the following types of services is Glamour Looks
offering?
A. Standardized service
B. Wardrobing
C. Micromanagement
D. Perceived service
E. Personalized service
Answer:
What type of store is Kohl’s considered to be?
A. Off-price retailer
B. Department store
C. Full-line discount store
D. Extreme value retailer
E. Specialty retailer
Answer:
Which of the following is an example of aided recall?
A. Jake asks Jack what his favorite burger is, and Jack replies McDonald.
B. Kelvin asks Mark if he knows Harley Davidson, and Mark answers yes.
C. Luke asks Peter what his favorite chocolate is, and Peter replies Hershey’s.
D. Ryan asks Carlos if he knows Zippo, and Carlos answers no.
E. Susan asks Sara what her favorite perfume is, and Sara replies Estelle Lauder.
Answer:
Why would the customer pyramid be more appropriate in identifying customer’s
lifetime value than utilizing the traditional 80-20 rule?
A. The 80-20 rule doesn’t recognize the behavior of 20 percent of the customers.
B. The 80-20 rule focuses only on the value of 80 percent of the shoppers.
C. Customers can more easily identify themselves in where they would be located in the
customer pyramid than within the 80-20 rule.
D. If shoppers have only buy 20 percent of the time, retailers have a missed sale 80
percent of the time.
E. The 80-20 rule does not consider important differences among the 80 percent of
customers in the “rest” segment.
Answer:
Donna entered Bob’s department store and went directly to the children’s apparel
department. Therefore, the merchandise to be bought by Donna in the children’s
department is referred to as _____.
A. promotional merchandise
B. impulse merchandise
C. special merchandise
D. destination merchandise
E. complementary merchandise
Answer:
By coordinating buying across geographically dispersed stores, centralized companies
can:
A. decrease efficiency.
B. increase overheads.
C. bargain for lower prices from suppliers.
D. respond well to local competition and labor markets.
E. quickly react to local market needs.
Answer:
Josh is responsible for the strategic retail planning process in his organization. He has
defined the business mission and conducted a situation audit. Which of the following
steps is most likely his next stage in the strategic retail planning process?
A. Evaluate strategic alternatives.
B. Establish specific objectives and allocate resources.
C. Identify strategic opportunities.
D. Develop a retail mix to implement strategy.
E. Evaluate performance and make adjustments.
Answer:
Which of the following terms is defined as the percentage of demand for a particular
SKU that is satisfied?
A. Assortment
B. Economic order quantity
C. Merchandise mix
D. Product availability
E. Variety
Answer:
Off-price retailers will often sell merchandise less than the MSRP which means:
A. the merchandise sales are profitable.
B. the merchandise is sold below the suggested retail price.
C. the merchandise is sold below the suggested realized profit.
D. the merchandise is sold less than the surrounding retail competitors.
E. the merchandise sold by them are always closeouts.
Answer:
Giant, a retail store, is offering two 6-packs of beer for $5. The price for a single tin is
$2.69. What pricing strategy is Giant using?
A. Price lining
B. Multiple-unit pricing
C. Psychological pricing
D. Price bundling
E. Conjoint pricing
Answer:
(p.467-468) Which of the following is a disadvantage of incentive compensation plans?
A. Employees know that rise in productivity will have no impact on their compensation.
B. Employees are taxed heavily on their income from incentive plans.
C. Employers are taxed heavily on their expenditure incurred through incentive plans.
D. Employees don’t develop loyalty to their employers when incentive plans are
practiced.
E. Employers are unable to increase employee productivity while following incentive
plans.
Answer: