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Decentralization increases efficiency.
Answer:
A sales associate who is confronted by a customer, whose newly purchased DVD player
does not function, should:
A. refer the customer to several different store employees to get the issue resolved.
B. always assume he or she knows what the customer is complaining about.
C. allow the customer to air the complaint without any interruption.
D. have an antagonistic attitude toward the customer.
Answer:
Which of the following statements is true of customer loyalty?
A. It refers to customers making repeat visits to a retailer and being satisfied with their
experiences.
B. It occurs when customers purchase merchandise and services from a retailer because
of its convenient location.
C. It is an emotional connection between a retailer and a customer.
D. It is the state of accumulated transactions that customers build through repeat
purchases responding to various promotions to a retailer.
E. It is the sole result of superior customer service.
Answer:
_____ of a retailer's merchandise is the number of SKUs within a subcategory.
A. Merchandise breadth
B. Horizontal integration
C. Variety
D. Assortment
E. Merchandise mixture
Answer:
_____ are products developed by retailers.
A. Copycat brands
B. National brands
C. Exclusive brands
D. Store brands
E. Parallel imports
Answer:
_____ is a method where retailers receive orders from customers and have the product
shipped directly to the customer from the vendor.
A. Consumer direct fulfillment
B. Reverse logistics
C. Pull supply chain
D. Push supply chain
E. Direct store delivery
Answer:
A purchase decision process in which customers devote considerable time and effort for
analyzing alternatives is called:
A. attribution.
B. consumerism.
C. extended problem solving.
D. habitual decision making.
E. limited problem solving.
Answer:
When Erica calculates the current assets for her picture framing business, she should
not include which of the following?
A. Her accounts payable
B. The money in her cash register
C. Office supplies
D. Her accounts receivable
E. The store's inventory of matting
Answer:
Which of the following best describes the free-form layout?
A. It is very cost-efficient.
B. It uses repetitive, symmetrical patterns.
C. It enhances the utility of a store's selling space by its tight arrangements.
D. It is the least aesthetically pleasing of all the store layouts.
E. It is an aesthetically pleasing design and displays limited merchandise.
Answer:
_____ are customers who like a store so much that they actively share their positive
experiences with friends and family.
A. Store advocates
B. Laggards
C. Brand ambassadors
D. Hedonic shoppers
E. Early birds
Answer:
In order to get into a customer's consideration set, a retailer should:
A. develop programs to ensure that customers remember them.
B. limit the options for return and money-back guarantees.
C. encourage cross-shopping.
D. limit the information provided to customers on its website.
E. target their offerings toward satisfying hedonic needs.
Answer:
As a(n) _____ store manager, Dina treats her employees as equals and asks for their
input when she is making a decision about whether to stay open late during the
Memorial Day weekend, stock extra inventory for Valentine's Day, or any other
decision that will directly affect her employees.
A. chaotic
B. democratic
C. autocratic
D. persuasive
E. transformational
Answer:
A retailer that is hard to get to, even if the customer can see it, has low _____.
A. compatibility
B. accessibility
C. visibility
D. cumulative attraction
E. availability
Answer:
National brands:
A. offer no alternatives for getting rid of excess inventory.
B. offer a higher profitability potential than store brands.
C. can limit a retailer's flexibility.
D. are specific to a retailer.
E. pose a risk in the form of uncertain sales.
Answer:
Alfani (women's fashion), Hotel Collection (luxury fabrics), and Tools of the Trade
(housewares) are examples of Macy's _____.
A. national brands
B. store brands
C. irregulars
D. inclusive brands
E. closeouts
Answer:
While eating may satisfy a functional need, Lucia's Italian Restaurant features gurgling
fountains, live music, Baroque paintings, and lush gardens to stroll while you wait.
Which of the following needs is also satisfied while eating at Lucia's?
A. Physiological needs
B. Rational needs
C. Hedonic needs
D. Social needs
E. Motivational needs
Answer:
Which of the following statements does not describe employment branding?
A. It is a marketing program that attracts the "best and brightest" potential employees.
B. The marketing department is in charge of developing a marketing program targeted
toward employees.
C. It involves undertaking marketing research to understand what potential employees
are seeking.
D. It involves developing a value proposition and an employment brand image.
E. It communicates the brand image to potential employees.
Answer:
After developing a plan for managing merchandise within a category, the next step in
the merchandise management process is to:
A. allocate the merchandise to the stores.
B. make the purchase.
C. order through vendors.
D. re-evaluate the plan using last year's plan.
E. penetrate new markets.
Answer:
The retailers that attract a significant number of consumers and consequently make the
center more appealing for other retailers are _____ stores.
A. parasite
B. anchor
C. location rival
D. leader
E. alpha
Answer:
Which of the following statements is a limitation of the rule-based approach to taking
markdowns?
A. The rule-based approach is based upon gross margin.
B. The approach prohibits input from the vendor.
C. The approach does not follow a fixed schedule.
D. It does not consider the demand for merchandise at different price points.
E. The approach assumes that items in a category do not exhibit the same behavior.
Answer:
As a new employee of an office supply superstore, Kevin has been told he will receive
structured training. What does this mean?
A. Kevin will learn from his mistakes by performing his job in a store.
B. Kevin will be fired if he makes a mistake once he is at the job site.
C. Kevin will be in the initial training process for at least one year.
D. Kevin will acquire basic skills and knowledge needed to do his job.
Answer:
The free-form layout is also known as the _____.
A. specialty layout
B. boutique layout
C. freedom layout
D. loop layout
E. format layout
Answer:
A retail mix refers to:
A. a strategy for identifying primary competitors through market research.
B. the idea of selling similar merchandise using different types of retail outlets, such as
drug and department stores.
C. the concept of offering merchandise not typically associated with their type of store.
D. a set of decisions retailers make to satisfy customer needs and influence their
purchase decisions.
E. a retailer's decision to undertake wholesaling and manufacturing activities.
Answer:
Which of the following benefits is offered by the Internet channel?
A. Deeper assortments
B. Immediate gratification
C. Social interaction
D. Personal service
E. Less perceived risk
Answer:
In a town in Georgia, the McDonald's restaurant was required by _____ to have no sign
taller than 8 feet, no arches, and no garish or bright colors on the outside of the
building.
A. building codes
B. blue laws
C. licensing requirements
D. trading area codes
E. common maintenance codes
Answer:
Retailers with less sophisticated forecasting and information systems tend to use a(n)
_____.
A. cost efficient logistic strategy
B. cross check logistic strategy
C. influential logistic strategy
D. pull supply chain
E. push supply chain
Answer:
(p.223-224) With regression analysis used in location analysis, predictor variables are
selected. Which of the following predictor variables would be more useful for a retailer
who is contemplating opening a day care center than for a retailer of used books?
A. Number of households with children not attending school
B. Educational level of households
C. Average age of homes in trade area
D. Average age of head of household
E. Average number of cars in each household
Answer:
An open-to-buy system compares:
A. a store's perpetual inventory and order point quantity.
B. the amount of merchandise in dollars and the sales forecast.
C. the planned and actual end-of-month inventory.
D. annual sales and backup stock required for merchandise categories.
E. the assortment plan and the projected sales volume.
Answer:
Sales are poor at the Kirt's Bathing Suit Store in Alaska, and Kirt's sales team is
suffering from low morale. Which of the following will best help Kirt to increase his
sales team's morale?
A. Reduce the quantity of incoming merchandise.
B. Fire non performing sales people.
C. Recruit an efficiency consultant to identify the problem.
D. Reward performing sales people.
E. Tweak the marketing tactics.
Answer:
Which of the following can a centralized retailer carry out in order to combat the
disadvantages associated with centralization?
A. They could allocate some of the decisions back to the stores.
B. They could hold more local meetings.
C. They could operate a one-way connection via satellite from buyers to stores.
D. They could offer better customer service creating customer loyalty.
E. They could rely more on their information systems to react to local market
conditions.
Answer:
_____ are imposed by governments to shield domestic manufacturers from foreign
competition.
A. Chargebacks
B. Country of origin costs
C. Slotting fees
D. Import tariffs
E. Obligation fees
Answer:
Jake, who runs a video rental shop, finds its rewarding to interact with customers who
like movies. Hence, he is recognized in the local community. Which objective of
retailing does Jake emphasize by this practice?
A. Financial objective
B. Personal objective
C. Societal objective
D. Environmental objective
E. Administrational objective
Answer:
Charging each individual customer a different price based on their willingness to pay is
called _____.
A. first-degree price discrimination
B. second-degree price discrimination
C. third-degree price discrimination
D. odd pricing
E. leader pricing
Answer:
Dust-free, clean, and organized stores with updated dressing rooms and kiosks are
examples of a retailer's commitment to customer service through _____.
A. reliability
B. assurance
C. tangibility
D. empathy
E. responsiveness
Answer:
Define liabilities.
Answer:
Why have many central business districts (CBD) been declining in the United States
and what are developers doing to revive CBDs?
Answer:
What are four factors retailers consider in setting retail prices?
Answer:
What are some of the major legal and regulatory issues in human resource management
in the retail industry?
Answer:
What is a store-within-a-store?
Answer:
There are seven different identifiable disadvantages that shopping malls have as
compared to other locations. Describe at least four of these disadvantages.
Answer:
How does smell impact customers' mood and emotions?
Answer:
Discuss establishing security policies and control systems to control employee theft.
Answer:
How can a retailer use the multiattribute model to encourage customers to shop more
frequently?
Answer:
Explain how channel migration poses a challenge to multichannel retailers.
Answer:
Describe the difference between initial markup and maintained markup.
Answer:
Describe the working of a catalog channel.
Answer:
What is the rationale behind placing destination merchandise throughout the store?
Answer:
What is the difference between personalized services and standardized services?
Answer:
What are the disadvantages associated with using the percentage-of-sales method for
establishing a retail communication budget?
Answer:
How does scrambled merchandising impact retail competition?
Answer:
