The _____, now enforced by the Equal Employment Opportunity Commission (EEOC),
prohibits unequal pay for men and women who perform equal work or work of
comparable work.
A. Fair Labor Standards Act
B. Equal Pay Act
C. Disparate Impact
D. Discrimination and Employment Act
E. Americans with Disabilities Act
Answer:
Which retail channel has the least perceived risk when purchasing products?
A. Internet
B. Stores
C. Catalog
D. Showrooming
E. Mobile retailing
Answer:
A retailer can reduce employee turnover by:
A. increasing its dollar sales.
B. reducing its fixed costs.
C. paying all employees the same.
D. building an atmosphere of mutual commitment.
Answer:
Poor labor scheduling can result in _____.
A. shorter checkout lines
B. higher labor productivity
C. sales associates having nothing to do
D. improved net returns for the organization
E. reduced organizational turnover
Answer:
Which of the following does not describe mixed-use developments (MXDs)?
A. Retailers like MXDs because they bring additional shoppers to their stores.
B. Developers avoid MXDs because of unproductive use of space.
C. Urban planners like MXDs because they provide a pleasant, pedestrian environment.
D. Residents like MXDs because they offer an all-inclusive environment.
Answer:
Gini’s LLC, a footwear store, has the following characteristics. Which of the following
characteristics of Gini’s is most likely to be its least sustainable competitive advantage?
A. Shared systems with vendors
B. Convenient store location
C. Knowledgeable employee force
D. Helpful sales force
E. Lower price
Answer:
Since a store design cannot achieve all objectives, managers need to make trade-offs
among them. Which of the following does NOT describes such trade-offs?
A. A supermarket’s traditional design can efficiently store and display a lot of
merchandise with long rows of floor-to-ceiling racks; however, this design is not good
for a pleasant shopping experience.
B. Retailers often make trade-offs between stimulating impulse purchases and making it
easy to buy products.
C. The trade-off between the ease of finding merchandise, and providing an interesting
shopping experience is determined by the customer’s shopping needs.
D. Specialty store retailers encourage the ease of finding merchandise rather than
exploration.
E. Giving customers adequate space in which to shop has to be balanced with the use of
scarce resource for merchandise.
Answer:
A typical application form would be least likely to provide information about the
applicant’s _____.
A. educational qualification
B. previous compensation
C. employment history
D. character
E. reasons for leaving previous employment
Answer:
_____ is the value-creating activity in which a retailer makes available a wide range of
products of different brands and prices at a single location.
A. Providing services
B. Breaking bulk
C. Providing assortments
D. Holding inventory
E. Exclusive dealing
Answer:
Which of the following steps is typically the next step after evaluating strategic
alternatives in the strategic retail planning process?
A. Establishing specific objectives
B. Developing a retail mix
C. Evaluating performance
D. Defining the business mission
E. Conducting a situation audit
Answer:
Which of the following statements does NOT describe the trade-offs that buyers should
consider for merchandise assortment planning?
A. Increasing sales by offering more breadth and depth can potentially reduce inventory
turnover.
B. Increasing sales by offering more breadth and depth can potentially reduce GMROI
by having more stock-keeping units (SKUs).
C. Increasing breadth and depth can increase the need to put more merchandise on sale
and thus negatively affect the gross margin.
D. SKU rationalization programs can help in increasing inventory turnover without
reducing sales.
E. The more SKUs offered, greater the chance of breaking sizesrunning out of a specific
size SKU.
Answer:
Which of the following is true of off-price retailers?
A. They offer a consistent assortment of soft goods at low prices.
B. They sell brand-name merchandise at reduced prices.
C. They offer gift registries.
D. They require suppliers to give them a variety of advertising allowances and
markdown discounts.
E. They sell designer-label merchandise at 20 to 60 percent higher than the
manufacturer’s suggested retail price.
Answer:
Lee Ann was overwhelmed by the heavy traffic outside of her local discount retailer.
Her experience in the store was no better. The aisles were packed, and the lines were
long. To Lee Ann, this discounter didn’t consider the problem of _____ when choosing
the site for the store.
A. congestion
B. non-shopper access
C. flow of traffic
D. visibility
E. vulnerability
Answer:
Which of the following measures the retailer’s ability to pay its suppliers with assets
such as cash and accounts receivable?
A. Cost of goods sold percent
B. Gross margin percent
C. Operating expense percent
D. Current ratio
E. Variable expense percent
Answer:
A retailer that uses an everyday low pricing (EDLP) policy:
A. relies on discount coupons to persuade customers to return to their stores.
B. creates low prices through the use of sales promotions.
C. focuses more on economy rather than assortments.
D. is attempting to limit the customer information search to the retailer’s offering.
E. uses the multiattribute attitude model for fixing product prices.
Answer:
Why is traffic count particularly important for convenience stores?
A. Convenience stores offer impulse merchandise.
B. Convenience stores are located only in MSAs that have a target market.
C. Traffic count means more pedestrian traffic.
D. Traffic count determines flow and accessibility.
Answer:
As the manager of the home department at a large retail store, Madison looks forward to
a periodic _____, which she receives on the basis of her department’s performance
relative to its budgeted sales and profits.
A. bonus
B. commission
C. gratuity
D. dividend payout
E. profit share
Answer:
Limited-assortment supermarkets are also called:
A. extreme-value food retailers.
B. full-line discount stores.
C. conventional supermarkets.
D. consignment shops.
E. warehouse clubs.
Answer:
Which of the following statements is not true in considering and evaluating store
locations?
A. The best areas for locating stores are those that generate the highest return on
investment in the short-term.
B. It is important to examine an area’s level and growth of population and employment
and how long such growth will continue and how it will affect demand for merchandise
sold in its stores.
C. It is important to have the strategic fit of the areas’ population with the retailer’s
target market.
D. It is important to consider local and state legal and regulatory environments affecting
operating costs.
Answer:
Which of the following statements holds true for an everyday low-pricing (EDLP)
strategy?
A. Slow-selling merchandise can be sold by discounting the price.
B. It allows retailers to charge higher prices to customers who are not price sensitive.
C. Customers need to wait for items to go on sale.
D. The use of EDLP increases the need for sale- advertising.
E. EDLP retailers do not have to incur the labor costs of changing price tags.
Answer:
Which of the following leases are most commonly used by community and
neighborhood centers?
A. Percentage lease
B. Pro bono lease
C. Sliding scale lease
D. Fixed-rate lease
E. Variable-rate lease
Answer:
A(n) _____ is used to keep track of the actual merchandise flowswhat the present
inventory level is, when purchased merchandise is scheduled for delivery, and how
much has been sold to customers.
A. model stock plan
B. fashion-oriented bookkeeping
C. open-to-buy system
D. order point
E. perpetual inventory
Answer:
_____ arises when a retailer performs some distribution and manufacturing activities,
such as operating warehouses or designing private-label merchandise.
A. Exclusive dealing
B. Merchandising
C. Backward integration
D. Horizontal integration
E. Forward integration
Answer:
Which of the following is a negotiation issue that is often used in fashion merchandise
categories?
A. Slotting allowances
B. Additional markup dollars
C. Advertising allowances
D. Exclusivity arrangement
E. Co-op (cooperative) advertising
Answer:
Because of the nature of vendor-managed inventory, _____.
A. retail buyers and planners no longer need to monitor inventory levels and place
orders
B. DCs need to run as deliveries arrive after hours and on holidays
C. there are many delays in replenishment as it’s not a collaborative approach
D. third party logistic companies have become necessary
E. EDI is now obsolete
Answer:
When a swimwear buyer negotiates for delivery and exclusivity with a vendor, what
would a buyer typically want?
A. A buyer would want the swimwear to arrive late in the season to avoid markdowns.
B. A buyer would ask to have merchandise at competing stores so the only competition
factor is price.
C. A buyer would want unique swimwear to arrive early in the season to get the most
sales at the original price.
D. A buyer would ask for last season’s swimwear as well as the latest swimwear to be
able to offer a price differentiation.
E. A buyer would ask for parallel merchandise to be able to offer more variety in
assortments.
Answer:
Which of the following does not describes the ways to reduce the level of inventory in
the supply chain and the number of stockouts in the stores?
A. Using EDI
B. Sharing information
C. Using reverse logistics
D. Using vendor-managed inventory (VMI)
E. Employing collaborative planning, forecasting, and replenishment (CPRF)
Answer:
An old factory was converted into condominiums on the top six floors, a health club on
the fourth floor, offices on floors two and three, and specialty shops and restaurants on
the ground floor. This would be an example of a(n) _____.
A. omnicenter
B. mixed-use development
C. multiformat development
D. theme/festival center
E. super regional mall
Answer:
Which of the following is used to assess overall performance at a corporate level?
A. Asset
B. Square foot of selling space
C. The number of full-time employees
D. Comparable-store sales growth
E. Inventory
Answer:
Retailers use stimulation to:
A. satisfy customers’ utilitarian needs.
B. enable extended problem solving.
C. promote cross-shopping.
D. segment the market based on lifestyles.
E. satisfy customers’ hedonic needs.
Answer:
What is franchising? What does a franchisor offer its franchisees to get the franchisees
off to a good start?
Answer:
What are some of the drawbacks of using a store brands?
Answer:
Mention three advantages that shopping malls have over alternative locations.
Answer:
What is the difference between structured program training and on-the-job training?
Answer:
How do reference groups influence the buying decisions of a person?
Answer:
Define a retail chain with examples.
Answer:
Describe franchising.
Answer:
Explain how managing an efficient supply chain and information system can improve
the company’s return on assets.
Answer:
Why is it important to empower employees for quick resolution of customer problems?
Answer:
What are the two basic shopping goals and how can the impact of a store’s environment
influence the customer’s shopping goals?
Answer:
What is the standards gap and how can retailers effectively decrease this gap?
Answer:
Define current ratio.
Answer:
Explain the concept of vertical merchandising.
Answer:
What are the limits of the rule-based approach of taking markdowns?
Answer:
Why would Save-A-Lot grocery store choose to be located in the same strip mall as
Dollar General and Walmart?
Answer:
Why is marginal analysis the most economically correct method for setting
communication budgets? Why is it still a challenge for retailers to use this method?
Answer:
What are ways retailers can encourage customers to shop at their stores more frequently
after they enter into consumers’ consideration set?
Answer:
What are the three types of consumer decision-making processes?
Answer: