Which of the following would be a fixed asset?
A. Merchandise inventory
B. A hand calculator
C. The store building
D. Accounts receivable
E. Accounts payable
Answer:
Which of the following would not be listed as an asset on the balance sheet of a
hardware store?
A. Nuts and bolts
B. A set of metric wrenches
C. Display cabinets
D. A $55 credit card charge from a store patron
E. Accounts payable
Answer:
Which of the following statements best describes outlet centers?
A. They are generally near regional shopping centers.
B. They have no emphasis on entertainment.
C. They are often located in tourist areas.
D. They never offer first-quality, full-line merchandise.
E. They are usually enclosed.
Answer:
Schnuck’s Grocery Store is located in St. Louis, Missouri. The owner has taken a map
and has drawn three different sized shapes around the store’s location. Those people that
are located in only the largest shape being beyond a 15 minute drive radius of the store
are in what’s referred to as the store’s _____.
A. geographic market
B. market trading area
C. delineated market
D. tertiary trading area
E. inclusive trading area
Answer:
_____ occurs when a retail firm invests in and owns a retail operation in a foreign
country.
A. Inventory investment
B. Portfolio investment
C. Direct investment
D. Philatelic investment
E. Alternative investment
Answer:
The retailer strategy helps a retailer to identify all of the following EXCEPT:
A. the target market toward which the retailer will direct its efforts.
B. the nature of the merchandise and services the retailer will offer to satisfy the needs
of the target market.
C. how the retailer will build a long-term advantage over its competitors.
D. how to determine the break-even point for making profits.
Answer:
A retailing chain in which local store managers make most of the retailing decisions
instead of the corporate headquarters can be described as:
A. formalized.
B. integrated.
C. generalized.
D. centralized.
E. decentralized.
Answer:
When a customer has brand loyalty for a specific brand of hot dogs, each purchase
decision to buy that brand would be an example of:
A. extended problem solving.
B. attribution.
C. limited problem solving.
D. habitual decision making.
E. contemplation.
Answer:
Darius Foods Inc. and Winston Foods and Beverages Inc. are competitors selling frozen
meals. Darius sells its products through a large number of local convenience stores,
while Winston sells its frozen meals through delis. Which form of competition is seen
between these two firms?
A. Intertype competition
B. Indirect competition
C. Intratype competition
D. Scrambled merchandising
E. Intrinsic competition
Answer:
Craig works for a retailer planning what merchandise will be in the assortments, setting
prices, negotiating with vendors, and planning advertising and marketing for intimate
apparel. He attends fashion trade shows and travels to market in New York City nearly
every month. What position in the organizational structure of a retailing firm does Craig
have?
A. Merchandise planner
B. Divisional merchandise manager
C. Store manager
D. Buyer
E. Department manager
Answer:
A(n) _____ is a collaborative relationship between independent firms.
A. strategic alliance
B. joint venture
C. acquisition
D. merger
E. takeover
Answer:
_____ involves selling the same products at the same prices through the same
distribution system for all channels.
A. Channel migration
B. Showrooming
C. Automated retailing
D. Complete integration
E. Personalization
Answer:
Centralization results in _____.
A. increased overheads
B. a duplication of functions
C. a lack of coordinated effort
D. an emphasis on efficiency
E. quicker reaction to local market needs
Answer:
The strategic profit model decomposes ROA into two components:
A. operating profit margin percentage and asset turnover.
B. net sales and average organizational turnover.
C. gross sales and average employee productivity.
D. total number of employees and total sales volume.
Answer:
Retail information and supply chain management systems help retailers to:
A. gain strategic advantages.
B. monitor the flow of information and merchandise.
C. make sure desired merchandise is available when customers want it.
D. minimize the retailer’s inventory investment.
E. all of these.
Answer:
When retailers use the _____ method, it is easiest to cut communication program
expenses if retail sales fail to meet the sales plan rather than increasing the
communication expenses to try and generate additional sales.
A. affordable budgeting
B. objective-and-task
C. percentage-of-sales
D. competitive parity
E. marginal analysis
Answer:
What is wrong with the following performance objective written for a shop specializing
in furs: “To earn $1,000,000 in profit during calendar year 2011”?
A. The objective is not qualitative.
B. The objective lacks a specific time frame.
C. The objective does not state the resources needed to accomplish it.
D. The objective is not measurable.
E. The objective is stated appropriately.
Answer:
Shades n Hues is a company producing cosmetics. It supplies products to stores and
beauty salons and also manages its own retail outlets. Therefore, Shades n Hues is
engaged in _____.
A. forward integration
B. scrambled merchandising
C. backward integration
D. horizontal integration
E. cross-selling
Answer:
_____ are products that have minor blemishes to the fabric or errors in the construction.
A. Close-outs
B. Irregulars
C. Category killers
D. Soft goods
E. Hard goods
Answer:
Build-A-Bear Workshops is a unique specialty store that teaches its customers how to
build a cuddly stuffed animal by moving through a series of stations located in the store.
Each “bear” is unique. The core of the business is light-hearted and kid-oriented. Even
the CEO calls herself Chief Executive Bear. The focus on fun, creativity, and humor can
be considered a part of the _____.
A. corporate procedures
B. corporate structure
C. organizational culture
D. pricing policy
E. human resource planning
Answer:
Mercer was getting bored with his job as a sales clerk in the home department until his
manager gave him responsibility for training a new salesperson in his area which he
likes to do. This is an example of _____.
A. management by objective
B. the unity of command principle
C. an intrinsic reward
D. an extrinsic reward
E. management by exception
Answer:
Which of the following is an example of a market penetration growth opportunity?
A. Opening new stores in new geographical markets
B. Changing the brand name to appeal to newer market segments
C. Keeping existing stores open for longer hours
D. Opening new stores to cater to a different demographic segment
E. Changing the brand name in new geographical markets
Answer:
Jenny’s Boutique is a popular store for designer clothes and accessories. It distributed
catalogs featuring its new collection through the local newspaper distribution center.
Which method for satisfying customers’ hedonic needs has Jenny’s Boutique used?
A. Adventure
B. Stimulation
C. Status and power
D. Conversion rate
E. Consideration set
Answer:
A travel brochure shows that a couple can buy a round trip ticket to Orlando, a
three-day pass to Disney World, car rental for four days, and hotel accommodations for
5 nights for $1200 per person. These services are expensive when availed individually.
This offer is an example of _____.
A. price lining
B. psychological pricing
C. bait and switch bundling
D. price bundling
E. conjoint pricing
Answer:
_____ is the inventory loss due to employee theft, shoplifting, mistakes, inaccurate
records, and vendor errors.
A. Obsolescence
B. Profit margin
C. Loss margin
D. Shrinkage
E. Break-even point
Answer:
Which of the following is an objective for store design?
A. Implement the retailer’s strategy.
B. Build loyalty by providing a rewarding shopping experience.
C. Increase sales on a visit.
D. Meet legal requirements.
E. All of these.
Answer:
The _____ allows employees to sue employers that violate employment laws.
A. Equal Employment Opportunity Commission
B. United States Chamber of Commerce
C. Center for Capital Markets Competitiveness
D. Institute for a Competitive Workforce
E. National Chamber Foundation
Answer:
Designing private-label merchandise is a(n) _____ because it builds on the retailer’s
knowledge of its customers.
A. unrelated diversification growth opportunity
B. market expansion growth opportunity
C. related diversification growth opportunity
D. market penetration growth opportunity
E. retail format development growth opportunity
Answer:
Wendy’s Inc. has established itself in the fast food market as one of the top 5 restaurants
in the city. Customers frequent Wendy’s because of the impeccable quality of food
associated with it. Which of the following is most likely to be the reason for Wendy’s
sustainable competitive advantage?
A. Unique merchandise
B. Brand image
C. Customer service
D. Location
E. Price
Answer:
Although Rosa visits several retailers when shopping for suits, she always buys suits at
Bow and Arrow Inc. Which of the following approaches best demonstrates her affinity
for Bow and Arrow Inc.?
A. Customer loyalty
B. Product pricing
C. Location
D. Unique merchandise assortment
E. Good vendor relations
Answer:
Which of the following is Save-A-Lot considered to be?
A. Conventional supermarket
B. Convenience store
C. Category specialist
D. Full-line discount store
E. Limited-assortment supermarket
Answer:
An issue of Consumer Reports, a magazine that evaluates brands of table saws, would
serve as a source of _____ as it provides Lewis with useful knowledge about available
features, convenience of use, and machine quality.
A. rational information
B. primary data
C. selective data
D. motivational data
E. external information
Answer: