Eve’s is a retail store selling skincare products. It recently introduced fair trade products
such as handmade soaps, herbal skin creams, and shampoos made by rural workers.
Eve’s also claimed that a part of the sales proceeds of these products would be utilized
for the workers’ welfare. The store aims to attract customers who are interested in social
causes. Therefore, including fair trade merchandise involves:
A. decreasing an importance weight.
B. increasing a performance belief.
C. decreasing the performance belief for competitive retailer.
D. adding a new benefit.
E. focusing on a single attribute.
Answer:
Many companies are capitalizing on people being at the airports longer and not being
able to carry many personal health and beauty aids. A vending machine selling
cosmetics and perfume at an airport is a _____.
A. kiosk
B. parasite store
C. store-within-a-store
D. timed leased agreement store
E. pop-up shop
Answer:
A retail mix is developed to:
A. promote scrambled merchandising.
B. implement a retail strategy.
C. understand the retail market.
D. implement vertical integration.
E. formulate a retail strategy.
Answer:
When there is a high inventory turnover, there is an increase in sales because:
A. price points are set higher to accommodate for potential sales loss.
B. new merchandise is continually available to customers.
C. the merchandise begins to look shopworn.
D. sales are increased by reducing prices.
E. more money is available to buy new merchandise.
Answer:
Which of the following terms represents a form of channel migration?
A. Showrooming
B. Phishing
C. Multilevel system
D. Omniretailing
E. Pyramid scheme
Answer:
The _____ determines the budget required to undertake specific tasks to accomplish
communication objectives.
A. competitive parity method
B. percentage-of-sales method
C. affordable budgeting method
D. rule-of-thumb method
E. objective-and-task method
Answer:
Fishing enthusiasts come for miles to shop at Shabby Bills, a shack that sells limited
tackle and bait on the North Carolina Outer Banks. Bill attracts this crowd because of
his expertise in the Outer Banks and local folklore. The Outer Banks would be
considered Shabby Bills’:
A. site location.
B. demographically similar area.
C. target market.
D. metropolitan complex.
E. trade area.
Answer:
Which of the following is classified as a microblog?
A. Facebook
B. Twitter
C. Facemash
D. Gmail
E. Youtube
Answer:
With respect to off-price retailing, in a _____ sale, each day at the same time, members
receive an email that announces the deals available.
A. closeout
B. clearance
C. enterprise
D. consultative
E. flash
Answer:
Shades N Hues is a large cosmetics retailer. It recently developed a software application
which enables customers with smartphones to look at the latest products. Hence, the
store is using _____ to improve customers’ shopping experience.
A. blogs
B. apps
C. wikis
D. cookies
E. widgets
Answer:
Smart Wash is a popular brand of detergent powder. The stock needs to be continuously
replenished in stores and supermarkets due to its high demand. The detergent powder
belongs to the category of _____.
A. expected merchandise
B. sample merchandise
C. staple merchandise
D. seasonal merchandise
E. fashion merchandise
Answer:
Kiran took a position as an assistant buyer in a regional department store. Delighted
with the new life she has outside of college, she was thrilled to see the work
environment filled with many young, progressive free-thinkers working together for a
common goal. The overall working environment of young, fast-paced, and
forward-moving lifestyle of this merchandising department can be considered part of
the:
A. corporate policy.
B. organizational culture.
C. corporate procedures.
D. brand loyalty.
E. procedural justice.
Answer:
Bea is a young professional living in the suburbs. She and a friend decide to meet on a
Saturday for a day of shopping, dining, and movie. With it being a beautiful day
outside, they wish to enjoy the weather but also find a place that features upscale
apparel shops and boutiques. They most likely will choose to patronize a _______.
A. lifestyle center
B. central mall
C. outlet mall
D. power center
E. mixed-use development
Answer:
Which of the following statements is true of central business districts?
A. It has low pedestrian traffic.
B. It has limited vehicular traffic.
C. It provides inexpensive retail space.
D. The shopping flow is fast during weekends.
E. The shopping flow is fast during evenings.
Answer:
How can a service retailer best cope with the problems associated with the
inconsistency of service?
A. Use low prices during off-seasons to help match supply and demand.
B. Use mass production.
C. Avoid simultaneity of production and consumption of service.
D. Train and motivate service providers.
E. Increase staffing at peak demand times.
Answer:
When contemplating sourcing products internationally, which of the following would
NOT be an additional cost associated with global sourcing?
A. Foreign currency fluctuations
B. Tariffs
C. Reduced lead times
D. Larger inventory carrying costs
E. Increased transportation costs
Answer:
In which of the following stores would you be most likely to encounter a four-way
fixture?
A. Dazzle, a fashion apparel store
B. Pet Mall, a pet store
C. Farm Foods, an organic produce store
D. Harris Music Store, retailer of musical instruments
E. Globes, a retailer of antique atlases, maps, and globes
Answer:
Which of the following types of general merchandise retailers is called as dollar stores?
A. Extreme-value retailers
B. Department stores
C. Full-line discount stores
D. Category specialists
E. Specialty stores
Answer:
A diagram that shows how and where specific products should be placed on retail
shelves or displays to increase customer purchases is called a(n) _____.
A. hologram
B. allocation plan
C. placement plan
D. planogram
E. assortment plan
Answer:
Which of the following is an example of staple merchandise?
A. The latest style of denim jeans
B. Luggage
C. Flannel sheets
D. Platform shoes
E. Men’s black socks
Answer:
Sports Authority anticipates running a print advertisement campaign during the
beginning of the year in support of customers’ anticipated New Year’s resolutions to get
in physical shape. Sports Authority asks their key vendors to partner with them in
covering the expenses of the ad campaign. Vendors agree to support the _____ as long
as they are certain that their products will be featured in the advertisements.
A. co-op advertising
B. partnering promotions
C. double truck
D. double pocket promotion
E. spot promotion
Answer:
To effectively sell merchandise which typically involves impulse purchases, what is the
most critical element in the retail mix?
A. Price
B. Prominent displays
C. Advertising
D. Customer service
E. Store location
Answer:
The retail market segments for licensed World Wrestling Federation shirts, jackets, and
hats are 6- to 17-year old boys, 18- to 24-year old women, and 18- to 44-year old men.
This segmentation scheme based on age groups is called _____.
A. lifestyle segmentation
B. geographic segmentation
C. cultural segmentation
D. psychographic segmentation
E. demographic segmentation
Answer:
Which of the following locations in a store is the most appropriate to place high margin
products?
A. The store entrance
B. Center aisles
C. End caps
D. Right-hand side
E. Left-hand side
Answer:
The Mediterranean Cafe features light cuisine and folk entertainment. It is located in
the middle of an upper-class neighborhood. The owners are curious about where the
customer base lives so that it can focus direct mail to those areas. For the last several
weeks, employees scoped the parking lot noting license plate numbers so they could
have a private research company trace them to the owners. Which of the following is
the Mediterranean Caf engaging in?
A. Customer clustering
B. Residential research
C. Financial demographics
D. Geographic research
E. Customer spotting
Answer:
Which of the following statements is true of the use of computer software scheduling
systems?
A. The software analyses sales, transactions, and customer traffic for each time period.
B. The software often recommends the use of regular and predictable work hours.
C. The system benefits the employees but has an adverse effect on retailers and
customers.
D. The burden of unpredictable scheduling of sales associates is eliminated.
E. The software often recommends the use of full-time employees.
Answer:
Which of the following is the formula for calculating employee turnover?
A. Number of employees voluntarily leaving their jobs during the year/Number of
positions
B. Number of employees fired from their jobs during the year/Total number of
employees
C. Number of employees voluntarily leaving their jobs during the year/Total number of
employees
D. Number of employees fired from their jobs during the year/Number of positions
E. Number of positions/Total number of employees
Answer:
What type of store is Target considered to be?
A. Off-price retailer
B. Department store
C. Full-line discount store
D. Extreme value retailer
E. Specialty retailer
Answer:
Nick works for an electronics store. His entire compensation is based on an 8 percent
commission he is paid on all the sales he makes minus merchandise returns. This is an
example of a(n) _____.
A. straight salary plan
B. quota-bonus plan
C. equity-based compensation
D. incentive compensation plan
E. cafeteria plan
Answer:
A retailer’s magazine advertising campaign builds an image of elegance and high
fashion, yet the store’s sales promotions emphasize low prices. Because of the
inconsistencies, consumers are left confused about the retailer’s image and tend to shop
elsewhere. What should the store manager do to resolve the problem of inconsistency
with the communication mix?
A. The manager should re-train associates to support the image of elegance and fashion.
B. The manager should re-examine the elements of the mix that can be eliminated.
C. The manager should imitate the communication programs of successful competitors.
D. The manager should reduce the prices of the products across all categories.
E. The manager should develop an integrated marketing communication program.
Answer:
What is the challenge that big-box stores face while developing locations in Europe,
Japan, and the United States?
A. Limited and expensive land
B. Increased operating costs
C. Restricted building size in some counties
D. Opposing sentiments from local residents
E. All of these
Answer:
A quota-bonus plan is applicable when _____.
A. employee performance exceeds the quota
B. performance management is outsourced
C. an employee has a salary plan based solely upon performance
D. productivity is poor
E. there are no other incentives
Answer:
Infomercials:
A. are 60-second commercials.
B. usually solicit orders placed by telephone.
C. are software applications for customers.
D. are not shown on broadcast television.
Answer:
When a grocery retailer develops its own high quality private-label organic food
product, this would be a(n) _____.
A. premium brand
B. copycat brand
C. umbrella brand
D. exploratory brand
E. superbrand
Answer: