_____ is a purchase decision process involving a moderate amount of effort and time.
A. Extended problem solving
B. Habitual decision making
C. Utilitarian shopping
D. Limited problem solving
E. Psychological problem solving
Answer:
_____ is a strategy used by fashion apparel retailers that offers customers inexpensive
fashionable merchandise early in the fashion life cycle.
A. Fast fashion
B. Consumer direct fulfillment
C. Quick response
D. Just-in-time delivery
E. Lightening logistics
Answer:
Which of the following statements about outlet centers is true?
A. It is predicted that the number of outlet centers in the U.S. will double over the next
decade.
B. Outlet centers are not found outside of the United States.
C. Outlet centers are in remote locations, located some distance from department and
specialty stores.
D. Outlet centers have the no-frills look of warehouse stores.
E. Outlet centers sell only irregulars and overruns.
Answer:
_____ are the total revenues received by a retailer that are related to selling
merchandise during a given time period.
A. Gross assets
B. Net profits
C. Gross sales
D. Total profits
E. Net sales
Answer:
Which of the following statements does NOT describe personalization implemented as
a CRM program?
A. It overcomes a limitation of CRM strategies which treat all customers in a platinum
segment as identical.
B. With the availability of customer-level data and analysis tools, retailers can now
economically offer unique benefits and target messages to individual customers.
C. The Internet channel provides an opportunity for retailers to automate
personalization and efficiently develop relationships similar to those that many small
local retailers have with customers.
D. It helps retailers to convert their unprofitable customers in the lead segment in the
customer pyramid to best customers.
E. The effective use of customer information in personalization programs creates the
positive feedback cycle in the CRM process.
Answer:
A(n) _____ creates the customer’s first impression of the store’s offering and is the area
where retailers place their most compelling merchandise.
A. strike zone
B. decompression zone
C. end cap
D. planogram
E. gondola
Answer:
What is the advantage of having your adjacent tenant as a complementary retailer?
A. Shared parking expense
B. Better lease negotiations
C. Visibility
D. Less tenant restrictions
E. Builds customer traffic
Answer:
Tires Plus is a store that specializes in auto maintenance and tires. After making sure
that it is in the consumers’ consideration set, Tires Plus, can _____ to increase the
chances that the consumer will select its store for a visit.
A. offer free fluid checks with each oil change as a new benefit
B. focus its resources by limiting itself to one advertising medium
C. use a vertical marketing system
D. implement a price skimming strategy
E. focus only on the customers’ utilitarian needs
Answer:
Which of the following businesses would NOT be considered a retailer?
A. A hot dog cart at the Highland Games
B. Delta Airlines
C. University bookstore
D. Priceline.com
E. Procter and Gamble
Answer:
How is gross margin percent calculated?
A. Gross margin divided by net sales
B. Add operating and interest expenses together and divide by gross sales
C. Net sales multiplied by gross margin
D. Cost of goods sold divided by gross sales
E. Divide net profit by net sales
Answer:
The emerging international markets that receive the most attention from global retailers
are collectively referred to as the _____ countries.
A. Asian Tigers
B. Next Eleven
C. MIKT
D. CIVETS
E. BRIC
Answer:
Electronic retailers can collect transaction data for their data warehouse, but they can
also collect information by placing cookies on a visitor’s hard drive. Cookies are:
A. viruses.
B. frequent-shopper rewards.
C. text files that identify pirated software.
D. files that identify visitors when they return to a website.
E. text files used exclusively to determine demographic information.
Answer:
Which of the following is the LEAST profitable method of liquidating markdown
merchandise?
A. Sell the merchandise to another retailer.
B. Consolidate the unsold merchandise.
C. Place the remaining merchandise on an Internet auction site.
D. Give the merchandise to charity.
E. Carry the merchandise over to the next season.
Answer:
The information used to analyze a retailer’s asset management path primarily comes
from the _____.
A. strategic profit model
B. financial leverage statement
C. income statement
D. profitability statement
E. balance sheet
Answer:
Which retail channel has the ability to economically provide the most product
information for the consumer purchasing products?
A. Internet
B. Stores
C. Direct Selling
D. Automated
E. All of these
Answer:
Karen ordered for books from Book Your Choice.com. She was informed that her order
would be processed in two working days and she would receive the books three days
from the date of booking. The books were promptly delivered on the third day. Karen
was immensely satisfied with the service provided by the website. Which customer
service characteristic affecting perceptions of service quality is seen in the given
scenario?
A. Instrumental support
B. Empathy
C. Tangibility
D. Reliability
E. Distributive fairness
Answer:
What is a census block?
A. An area bounded on all sides by visible and invisible features
B. A block of specific residents sharing similar demographics
C. A specific decennial used in comparison studies to demonstrate regional changes
D. A block including specific educational and economic status
E. A collection of adjacent blocks that contain between 300 and 4,000 people
Answer:
A business philosophy and set of strategies, programs, and systems that focuses upon
identifying and building loyalty with a retailer’s most valued customers is called _____.
A. customer loyalty management
B. strategic relationship management
C. most valued customer management
D. strategic consumer management
E. customer relationship management
Answer:
Hollywood video rental stores typically place the most current tape boxes on shelves, so
the scenes depicted on the tape box can attract the customer. This is an example of
_____.
A. tonnage merchandising
B. vertical merchandising
C. frontal presentation
D. color presentation
E. price lining
Answer:
The Village Green, a woman’s clothing store, took a map of the city and the checks
written by its customers during the last quarter. The store’s owner then marked the
address of each customer on the map with a map pin. By looking at where the pins
clustered on the map, she could determine her trade area. She was engaged in _____.
A. geographic research
B. customer spotting
C. financial demographics
D. customer clustering
E. residential research
Answer:
Which of the following statements does NOT describe how retailers use a customer
lifetime value (CLV)?
A. CLV is used to identify and cater to the best and more profitable customers.
B. CLV should be estimated under the assumption that the customer’s future purchase
behaviors will be the same as they have been in the past.
C. Sophisticated statistical methods are typically used to estimate the future
contributions from past purchases.
D. An RFM analysis is often used by catalog retailers and direct marketers in estimating
their customers’ lifetime value.
E. A customer who spends $800 twice a year has a higher CLV than a customer that
spends $100 each month.
Answer:
Mention the factors affecting the size of the trade area.
Answer:
A radio advertisement announced that Dan’s Video Store would be open until 10:00
P.M. on Friday evenings. Norm reached the store by 9:45 pm to buy a video. The store
was locked and a sign on the door said that the store closes at 9:00 pm. This scenario is
an example of a _____.
A. communications gap
B. market gap
C. delivery gap
D. knowledge gap
E. research gap
Answer:
A drugstore purchases hand cream at $2 per jar and sells them for $15. What is its
markup percentage?
A. 60%
B. 87%
C. 40%
D. 5%
E. 22%
Answer:
Which of the following statements is true of TV home shopping?
A. Goods are automatically dispensed to customers on cash payment.
B. There are two types of advertising: party plan and multilevel.
C. The impact of advertisements on people cannot be determined accurately.
D. Salespeople interact directly with customers.
E. Customers can see the merchandise demonstrations before buying.
Answer:
Spring Clean, Sparkle Glass, and Dazzle Floor are various cleaning liquids marketed
under the brand name Clean Homes. Therefore, Clean Homes is a(n) _____.
A. premium brand
B. copycat brand
C. umbrella brand
D. exclusive brand
E. subbrand
Answer:
What of the following is a challenge faced by malls?
A. Customers are not able to stay at malls for extended periods of time because of the
lack of places to get food.
B. Foot traffic is low at malls.
C. There is little entertainment value at malls.
D. Many aging malls have not been updated and are unappealing to shoppers.
Answer:
Which of the following does not cause the bullwhip effect in an uncoordinated supply
chain?
A. Delays in transmitting orders
B. Overreacting to shortages
C. Ordering in batches
D. Delays in receiving merchandise
E. Information sharing
Answer:
Which of the following is typically the last step in developing a retail communication
program?
A. Implement and evaluate programs.
B. Establish objectives.
C. Determine budget.
D. Allocate budget.
Answer:
_____ is expressed as a retailer’s sales or profits divided by the number of employees.
A. Human resource management
B. Employee turnover
C. Employee productivity
D. Operation management
E. Organizational management
Answer:
Which of the following is a condition that may lead to competitive rivalry?
A. Large number of competitors of the same size
B. Presence of perceived differences between competing retailers
C. Fast growth
D. Low fixed costs
E. Lack of competition
Answer:
What type of a retail store is Victoria’s Secret considered to be?
A. Department store
B. Convenient store
C. Full-line discount store
D. Specialty store
E. Supermarket
Answer: