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Which of the following can be used to determine how many people are in a trade area
and where they live?
A. Customer spotting
B. Demographic USA's Buying Power Index
C. Analog approach
D. Customer clustering
E. Centralization
Answer:
Retailers try to locate their stores that appeal to similar target markets. Which of the
following statements is not true in explaining how and why retailers do it?
A. Customers want to shop where they will find a good assortment of merchandise.
B. Retailers consider complementary retailers in location selections.
C. Retailers must avoid locating close to other retailers that compete directly.
D. Retailers such as the Builder-A-Bear Workshop selling stuffed animal toys and the
Disney Store try to have locations close to each other.
E. The principle of cumulative attraction states that a cluster of similar and
complementary retailing activities have greater drawing power than isolated stores that
engage in the same retailing activities.
Answer:
Why is constructing a customer database more difficult for in-store transactions than it
is for online shopping?
A. Customer returns to the store confound the data.
B. Store purchases can be made with cash or third-party credit cards.
C. Availability of store assortments is not always similar to website assortments.
D. Store customers are not interested in sharing personal information.
E. Since customers are more likely to buy gifts for others in stores than online, it
defeats the purpose of understanding the end-user.
Answer:
A _____ is an opportunity in which a retailer develops a new retail mix for the same
target market.
A. retail format development growth opportunity
B. market penetration growth opportunity
C. diversification growth opportunity
D. market expansion growth opportunity
E. wholesale format development growth opportunity
Answer:
After years of washing his laundry at the corner Laundromat, Marco was glad to move
into an apartment with washer and dryer hookups. He planned to buy a washer and
dryer to save time and money. Which of the following needs would the purchase
satisfy?
A. Utilitarian needs
B. Motivational needs
C. Physiological needs
D. Psychological needs
E. Social needs
Answer:
Jack went to a bakery and ordered a dozen bagels for work. When he got to work, he
discovered that the bagels were stale. The next morning he stopped by the bakery to
complain. All of the following would be appropriate ways to deal with Jack's complaint
EXCEPT:
A. giving him a coupon for free coffee.
B. giving him a $5.00 discount on his next purchase.
C. offering him a free replacement.
D. referring him to other employees at the bakery.
E. providing him with a coupon for a free breakfast.
Answer:
Providing high-quality service is difficult for a retailer because:
A. competitors often easily duplicate the services.
B. services availed by customers are generally tangible.
C. most employees show a similar performance level.
D. the quality of service can vary dramatically across stores.
E. all employees are not involved in activities that increase customer value.
Answer:
Due to the _____ of services, service retailers like Universal Studios Theme Parks,
Delta, and Applebee's restaurants, sometimes, find it difficult to match supply and
demand.
A. intangibility
B. perishability
C. inconsistency
D. consumability
E. compatibility
Answer:
People engage in extended problem solving:
A. to avoid too much time and effort in making the decision.
B. because they have little knowledge about the product.
C. to make an impulse purchase.
D. because retailers influence them by providing so much information.
E. because it is easier than making an inappropriate purchase.
Answer:
Retailers often find the 80-20 principle evident within the ABC analysis. What does the
80-20 principle imply?
A. About 20 percent of a retailer's sales promotion sells 80 percent of its inventory.
B. Approximately 20 percent of a retailer's sales come from 80 percent of its products.
C. Approximately 80 percent of a retailer's inventory was sold, and 20 percent was
wasted.
D. 80 percent of the retailer's customers are repeat customers and only 20 percent are
new.
E. Approximately 80 percent of a retailer's sales come from 20 percent of its products.
Answer:
Which of the following store designs has a point-of-sale terminal in each department?
A. Racetrack layout
B. Gondola layout
C. Grid layout
D. Boutique layout
E. None of these
Answer:
What happens when retailers and vendors do not coordinate their supply chain
management activities?
A. Prices drop at the negotiation level.
B. Communication improves.
C. The DC shuts down.
D. Excess inventory builds up in the system.
E. Lower inventory leads to sell-outs.
Answer:
Which of the following would be listed as an asset on the balance sheet for a children's
clothing shop?
A. Interest due on startup loan
B. Retained earnings
C. Accounts receivable
D. Money owed to vendors
Answer:
The employee turnover for the custodial host position at the local department store was
high, and the department managers were beginning to complain to Gina, the store
manager. There was no lack of applications, and the pay was comparable to other
stores, yet those who took the position stayed no longer than a week. Exit interviews
revealed that employees felt the job's responsibilities were not what they expected.
Which of the following is the best method for Gina do to reduce turnover?
A. Accept more applications by reducing required standards.
B. Insist that each applicant takes a drug test within 48 hours of applying.
C. Check the employment history and references of applicants.
D. Show a video to applicants about the responsibilities of the job.
E. Require applicants to take intelligence quotient and emotional quotient tests.
Answer:
Cinderella's castle would be an example of a(n) _____.
A. destination memory of Mickey Mouse
B. brand association of Walt Disney
C. marketing program of the Cinderella story
D. brand exposure of Cinderella dolls
E. aided recall of all Disney stories
Answer:
The Bird of Paradise is one of the world's most attractive tropical flowers. When Josiah,
who owns Joe's Flower Shop, knows he's receiving flowers from Hawaii, he emails all
his customers whom he knows will like the flower and informs them of the expected
shipment. Josiah's program is an example of:
A. a frequent shopper program.
B. a loyalty program.
C. gaining competitive advantage.
D. add-on selling.
E. 1-to-1 retailing.
Answer:
Which of the following has the LEAST consideration when a retailer is deciding how
much floor or shelf space to allocate to merchandise categories and brands?
A. The productivity of the allocated space
B. The impact on overall store sales
C. The display needs for the merchandise
D. The merchandise's inventory turnover
E. None of these
Answer:
Michaels sets goals at the top of the organization. Then, breaks down these objectives
for merchandise categories and regions. When these objectives reach the buyers, each
objective is personalized. What does this process demonstrate?
A. Accountable design planning
B. Decentralized planning
C. Functional development
D. Indirect planning
E. Top-down planning
Answer:
Loretta went to a store to buy thermal underwear. The underwear had been featured in
an advertisement for $24.99 a pair. She was disappointed to learn that the underwear
sold out within two days and complained to the sales associate. The sales associate
offered to deliver the merchandise directly to Loretta's home. Loretta was satisfied with
how her complaint was handled. Jane, another customer, also came to the store with the
intention of buying the thermal underwear and complained about the merchandise being
out-of-stock. In addition to offering to deliver the merchandise to her home, the sales
associate offered Jane the product at a discounted price of $21.99. In trying to resolve
both customers' problems, the sales associate was dealing with _____.
A. distributive fairness
B. consistent fairness
C. procedural fairness
D. service equity
E. perceptual equity
Answer:
A retailer that carries a broad variety and deep assortment, offers customer services, and
is organized into distinct sections for displaying merchandise is called a(n) _____.
A. off-price retailer
B. department store
C. discount retailer
D. convenience store
E. specialty retailer
Answer:
(p.388-389) A(n) _____ strategy emphasizes the continuity of retail prices at a level
somewhere between the regular nonsale price and the deep-discount sale price of
high/low retailers.
A. leader pricing
B. keystoning
C. high/low pricing
D. price skimming
E. everyday low-pricing
Answer:
_____ are software applications designed to improve the consumers' shopping
experiences when using smartphones and tablets.
A. Infomercials
B. Widgets
C. Blogs
D. Wikis
E. Apps
Answer:
Customers who shop at Books-A-Million find that it has a large selection of books, in
addition to a helpful and friendly staff. Furthermore, they can enjoy a peaceful place to
read while sipping a cappuccino at their in-store Joe Muggs Caf. This intimate
perception of the store indicates its _____ strategy.
A. perceptual retailing
B. imaging
C. positioning
D. visual merchandising
E. retail feedback
Answer:
What type of shopping center is composed of upscale apparel shops, boutiques, and gift
shops carrying selected fashions or unique merchandise of high quality and price?
A. Downtown business areas
B. Power centers
C. Shopping strips
D. Marketing complexes
E. Shopping malls
Answer:
The second highest level in the merchandise classification structure is the _____.
A. stock-keeping unit
B. category
C. department
D. merchandise group
E. classification
Answer:
Service excellence will occur only when the:
A. top management provides leadership and demonstrates commitment.
B. top management refrains from empowering front-line service providers.
C. top management centralizes its decision-making activities.
D. retailer sets service standards based on internal operations rather than customers'
perceptions.
E. retailer provides standardized services rather than personalized services when
purchase decisions involve high risks.
Answer:
A cruise ship service specializing in entertaining young adults would most likely be
using _____ as the segmentation method to attract business.
A. a multiattribute model
B. geographic segmentation
C. benefit segmentation
D. psychographic segmentation
E. demographic segmentation
Answer:
A company in the first stage of incorporating corporate social responsibility (CSR) into
its strategies:
A. only engages in CSR activities that are required of it by law.
B. engages in CSR activities that provide a short-term financial benefit.
C. engages in CSR activities because they believe it is the right thing to do.
D. engages in CSR activities for the well-being of everyone.
Answer:
A(n) _____ is a document that tells the DC what specifically is being shipped and when
it will be delivered.
A. Universal product code (UPC)
B. Radio frequency identification (RFID)
C. Advanced shipping notice (ASN)
D. Shipping document
E. Bill of lading (BOL)
Answer:
_____ categories consist of items whose sales fluctuate dramatically depending on the
time of year.
A. Expected merchandise
B. Sample merchandise
C. Staple merchandise
D. Seasonal merchandise
E. General merchandise
Answer:
