Unlock document.
This document is partially blurred.
Unlock all pages and 1 million more documents.
Get Access
When consumers go specialty shopping, they know what they want and will not accept
a substitute.
Answer:
A trade area is the geographic area encompassing most of the customers who would
patronize a specific retail site.
Answer:
Building codes are legal restrictions that specify the type of building, signs, size and
type of parking lot, and so forth, that can be used at a particular location.
Answer:
Flextime is a job scheduling system that enables employees to choose the times they
work.
Answer:
A specific type of data analysis that focuses on the composition of the bundle of
merchandise purchased by a consumer during a single shopping occasion is called a
market basket analysis.
Answer:
Impulse products are products that are purchased without prior plans, like fragrances
and cosmetics in department stores and magazines in supermarkets.
Answer:
The merchandise management task of a retail firm includes buying merchandise,
controlling inventory, and pricing merchandise.
Answer:
Showrooming enables customers to shop online.
Answer:
Retailers do not perform traditional business activities.
Answer:
Bonuses are funds vendors give retailers to cover lost gross margin dollars due to
markdowns needed to sell unpopular merchandise.
Answer:
Transformational leaders get people to transcend their personal needs for the sake of the
group or organization.
Answer:
The Fair Labor Standards Act prohibits unequal pay for men and women who perform
equal work or work of comparable worth.
Answer:
After selecting a target market and a retail mix, the final element in a retail strategy is
the identification of prospective wholesalers.
Answer:
The pick ticket is a document or display on a screen in a forklift truck that indicates
how many cartons to get from specific storage areas.
Answer:
Tonnage merchandising is a display technique in which large quantities of merchandise
are displayed together.
Answer:
The direct-response TV (DRTV) channel is a retail channel in which customers watch a
TV advertisement that demonstrates merchandise and then place orders for that
merchandise.
Answer:
Pop-up stores are stores in temporary locations that focus on new products or a limited
group of products.
Answer:
Of the various methods of segmenting, lifestyle is the one that delves the most into how
consumers describe themselves.
Answer:
Shrinkage is the inventory loss due to employee theft, shoplifting, mistakes, inaccurate
records, and vendor errors.
Answer:
A standardized service approach requires that service providers tailor their services to
meet each customer's personal needs.
Answer:
Supermarkets gain higher profit margins from private-label merchandise than national
brands.
Answer:
Wholesale markets for retail buyers include only annual trade shows.
Answer:
Extreme-value retailers primarily target low-income consumers.
Answer:
An advance shipping notice (ASN) is a document that tells the DC what specifically is
being shipped and when it will be delivered.
Answer:
Retailers need to provide adequate information and an effortless shopping experience
for hedonic shoppers.
Answer:
The best way to define the three trade zones is based on distance rather than driving
time.
Answer:
Ethical principles can change over time.
Answer:
A food court is an example of utilizing the principle of cumulative attraction.
Answer:
A retail format development growth opportunity is an opportunity in which a retailer
develops a new retail format for the same target market.
Answer:
The Huff gravity model is used to predict the probability that a consumer will patronize
a store.
Answer:
To be competitive in today's marketplace, supermarkets are focusing on offering fresh
perishables and providing better value with private-label merchandise.
Answer:
When consumers go shopping for pleasure, they are seeking to satisfy their hedonic
needs.
Answer:
Price elasticity is the percentage change in quantity sold divided by the percentage
change in price.
Answer:
Frequent-shopper programs are expensive to implement and manage.
Answer:
Generally, as the price of a product increases, sales for the product will increase.
Answer:
The objective-and-task method uses past sales and communication activities to
determine the present communication budget.
Answer:
Customers in the platinum segment place more value on the price of a product.
Answer:
Cost of goods sold (COGS) is the amount a retailer pays to vendors for the merchandise
the retailer sells.
Answer:
Seasonal merchandise consists of items whose sales fluctuate dramatically depending
on the time of the year.
Answer:
Brand association refers to a potential customer's ability to recognize or recall that the
brand name is a particular type of retailer or product/service.
Answer:
Which of the following is a drawback for a retailer offering national brands?
A. Retailers view national brands as a threat to private-label brands.
B. Retailers have to discount some national brands in order to attract customers to their
stores because customers compare prices for these brands across stores.
C. Significant investment is needed to develop relationships with national brands'
vendors.
D. Retailer has to work to market national brands to make them better known and
desired by customers.
Answer:
After screening applicants, the selection process typically involves a(n) _____.
A. IQ test
B. EQ test
C. training module
D. orientation module
E. personal interview
Answer:
The information used to analyze a firm's profit path comes from the:
A. balance sheet.
B. profitability statement.
C. income statement.
D. strategic profit model.
E. financial leverage statement.
Answer:
_____ involve the flow of merchandise through distribution channels, usually across
international borders, other than those authorized or intended by the manufacturer or
producer.
A. Reverse auctions
B. Chargebacks
C. Lift-outs
D. Gray-market goods
E. Exclusive dealing arrangements
Answer:
Which of the following does not describe the organization of a single-store retailer?
A. Each employee must perform a specific task assigned to them.
B. The owner-manager is responsible for all management tasks.
C. Limited number of employees allows little scope for specialization.
D. Coordinating and controlling employee activities is easier in a small store than in a
large chain of stores.
Answer:
_____ is a form of discrimination that occurs when an unqualified man receives a
promotion rather than a qualified female applicant.
A. Disparate treatment
B. Desperate measures
C. Disparate impact
D. Minority impact
E. Gender bigotry
Answer:
At the Sonic Drive-In restaurant, employees are timed to measure how quickly an order
is taken and delivered to customers. When employees' performance consistently meets
or exceeds the norms, the restaurant manager gives them a $10.00 bonus check. The
purpose of this incentive is to reduce the _____.
A. communication gap
B. research gap
C. standards gap
D. knowledge gap
E. brand gap
Answer:
Before purchasing his son's shoes, Lamar evaluated the following stores: Boot World,
Terence's Shoe Palace, Imperial Collection, Royal Shoe Store, and Leather World.
Which is the term used to describe these stores that are being evaluated by Lamar?
A. Target market
B. Retail market segment
C. Consideration set
D. Attributes
E. Reference group
Answer:
Which of the following is NOT a factor that retailers consider in setting prices?
A. Price sensitivity of consumers
B. The cost of the merchandise and services
C. Competition
D. Legal restrictions
E. Language barriers
Answer:
A store that sells books, magazines, and newspapers has an average inventory of
$15,000 at cost. Its cost of goods for the previous year was $62,000, and its net profit
was $9,000. Calculate the retailer's inventory turnover.
A. 1.67
B. 2.14
C. 6.89
D. 4.13
E. 14.5
Answer:
_____ refers to inventory for which the level goes up and down in response to the
replenishment process.
A. Cycle stock
B. Backup stock
C. Basic stock
D. Perpetual inventory
E. Order point
Answer:
When consumers explicitly tell the retailer not to use their personal information, they
must _____.
A. choosing/consenting
B. opt in
C. opt out
D. declining public domain statutes
E. notifying consumer information services
Answer:
William is always looking for a bargain and frequently visits the meat department to see
the markdowns for meat dated to be sold that day. He finds a signage stating a
half-price sale. This signage is an example of a _____.
A. promotional signage
B. category signage
C. locational signage
D. point-of-sale signage
E. lifestyle signage
Answer:
_____ is an approach for improving supply chain efficiency in which the vendor is
responsible for maintaining the retailer's inventory levels in each of its stores.
A. Efficient consumer response (ECR)
B. Reverse logistics
C. Quick Response (QR) system
D. Vendor-managed inventory (VMI)
E. Collaborative planning, forecasting, and replenishment (CPRF)
Answer:
When making a good markdown decision, a retailer should:
A. work closely with its vendors and share the financial burden of the markdowns.
B. only trust its own tastes and intuitions when stocking merchandise.
C. rely exclusively on computer software designed for optimal pricing.
D. consider only the rules-based approach because it has proven its reliability.
E. look to limit them as markdowns hinder customer loyalty.
Answer:
Private-label brands are also called:
A. personal brands.
B. store brands.
C. faith brands.
D. umbrella brands.
E. individual brands.
Answer:
A bookstore is considering stocking a limited edition of Alice in Wonderland dolls at a
cost of $125 each. The manager calculated the retail price with an initial markup
percentage of 48 percent and plans to ticket the product with a ".00" ending. What
would the initial retail price be on the doll?
A. $180
B. $190
C. $240
D. $280
E. $63
Answer:
ESRI and other GIS suppliers have developed schemes for classifying geographic areas.
The ESRI Tapestry Segmentation scheme classifies neighborhoods into 65 categories.
How would you classify the following person? Thomas is a recent college graduate who
accepted an assistant buying position with Macy's in New York City. After six months,
his commitment to the company led him to a promotion, and a raise. Thomas rents an
apartment with his girlfriend Grace, who works as a stockbroker. Together they spend
weekends shopping and meeting friends, and sometimes they travel to Boston for a
change in scenery. Which of the following most accurately describes Thomas?
A. Generation X
B. Metro renter
C. Metro spender
D. Metron
E. Tapestry scheme
Answer:
_____ prohibits discrimination on the basis of race, national origin, gender, or religion
in company personnel practices.
A. Title I of the Civil Rights Act
B. Title II of the Civil Rights Act
C. Title IV of the Civil Rights Act
D. Title V of the Civil Rights Act
E. Title VII of the Civil Rights Act
Answer:
_____ is the knowledge and courtesy of employees and their ability to convey trust and
confidence.
A. Reliability
B. Assurance
C. Tangibility
D. Empathy
E. Responsiveness
Answer:
The objective of the CRM process is to:
A. analyze market trends.
B. expand services.
C. develop loyalty and repeat-purchase behavior.
D. extend hours of operations.
E. monitor customer transactions.
Answer:
Which of the following is NOT descriptive of a trade show?
A. Buyers meet with manufacturer executives to discuss strategies to grow their
business.
B. Buyers review performance of the vendor during the previous season.
C. Vendors have celebrities at their booth to promote their merchandise and attract
buyers.
D. Trade shows are often associated with wholesale market centers.
E. Buyers see the latest products and styles being offered by vendors.
Answer:
Which of the following statements is true of frequent-shopper programs?
A. They are highly beneficial for building long-term customer loyalty.
B. The discounts offered appeal mostly to price-conscious customers.
C. Customers are able to clearly differentiate the programs offered by different retailers.
D. Competitive advantages gained from these programs are sustainable.
E. Effective frequent-shopper programs are easy to develop.
Answer:
Which of the following factors does NOT contribute to the increase of buffer stock
levels?
A. The high service level that a retailer tries to achieve
B. High fluctuations in demand
C. Long lead time for delivery from the vendor
D. Fluctuations in vendor lead time
E. Frequent store deliveries
Answer:
Which of the following is NOT true of fashion merchandise categories?
A. Forecasting the sales for fashion merchandise categories is more challenging than
forecasting for staple goods.
B. Buyers for fashion merchandise categories have a high degree of flexibility in
correcting forecasting errors.
C. They have a short life cycle.
D. Buyers often do not have a chance to reorder additional merchandise after an initial
order is placed.
E. New products are continuously being introduced.
Answer:
Which of the following is NOT a stage in the buying process?
A. Evaluation
B. Making a selection
C. Need recognition
D. Searching for information
E. Segmentation
Answer:
Janessa prefers high-end cosmetics, but she also likes a good deal. She only purchases
her make-up at department stores when they have a gift with purchase. Today she saw
at Macy's that if she buys $35 worth of Lancme cosmetics she would receive a gift with
purchase. This gift with purchase is a form of what kind of sales promotion?
A. Premium
B. Rebate
C. Sample
D. Pop-up
E. Special event
Answer:
Conversion rate can be described as:
A. the percentage of customers buying only premium products.
B. the percentage of customers buying both premium and budget products.
C. the time pressure under which the purchase must be made.
D. the percentage of customers who enter a store and buy products from that same
store.
E. the retailer's score when evaluated on the basis of attributes.
Answer:
Digital signage is visual content that is displayed on a monitor delivering video clips or
price of merchandise. Which of the following is NOT a benefit of digital signage?
A. The enhancement of the store environment
B. The displays of complex graphics and videos
C. The atmosphere it provides
D. The time to message hurdle
E. The cost of the display and devices
Answer:
A retailer originally priced a private-label portable DVD player at $99 and sold 1,200
units per week. After raising the price to $120, sales dropped to 1,000 units per week.
What would the item's price elasticity be?
A. -2.4005
B. 2.4005
C. -3
D. 3.33
E. -.7855
Answer:
_____ are end-of-season merchandise that will not be in the manufacturer's offerings
going forward.
A. Close-outs
B. Irregulars
C. Endcaps
D. Category killers
E. Soft goods
Answer:
_____ can be defined as shopping centers that employ a unifying theme that is carried
out by the individual shops in their architectural design and, to an extent, in their
merchandise. They are typically designed to appeal to tourists.
A. Center replicas
B. Price-oriented centers
C. Regional centers
D. Specialty centers
E. Theme/festival centers
Answer:
For a multi-chain's new store location, the most inappropriate communication program
budget method would be _____.
A. affordable budgeting
B. objective-and-task
C. percentage-of-sales
D. competitive parity
E. marginal analysis
Answer:
Although retailers gain economies of scale from opening multiple locations in an area,
they also suffer diminishing returns associated with locating too many additional stores
in an area. This is called:
A. channel competition.
B. economies of scope.
C. sales cannibalization.
D. channel integration.
E. operating turnover.
Answer:
Which of the following statements is true of the operations of multichannel retailers?
A. Integrating various channel operations does not pose a major problem.
B. They need to maintain a consistent image across channels.
C. Most retailers have a common organization to manage all channels.
D. Competition does not have a significant impact on pricing.
E. Similar assortments are often suitable for various channels.
Answer:
What are the activities that take place at a distribution center?
Answer:
Define distributive justice and procedural justice.
Answer:
Describe geofencing.
Answer:
If there are so many advantages to carrying private brands, why do retailers even bother
to sell national brands?
Answer:
Write a note on category specialists.
Answer:
How can brands benefit the consumer?
Answer:
Identify and describe the different options that retail buyers of national brands have to
see new products and meet with vendors.
Answer:
Explain the concept of buying situation segmentation.
Answer:
How is the customer pyramid more appropriate than the 80-20 rule when identifying
customers?
Answer:
How are department stores categorized into tiers? How do the tiers differ?Give
examples of each tier.
Answer:
What differentiates a well-designed performance objective from one that is
ill-conceived?
Answer:
Why is choosing a good location such an important decision for a retailer?
Answer:
Identify and describe the vendor-managed inventory approach.
Answer:
List out and define the different terms of leases.
Answer:
Define positioning.
Answer:
What are the decisions influencing the allocation of merchandise to stores?
Answer:
