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To reduce the delivery gap, retailers need to:
A. avoid empowering their front-line employees.
B. always assume they know what the customer is complaining about.
C. encourage store employees to have an antagonistic attitude toward customer
complaints.
D. provide instrumental and emotional support to employees.
E. set service standards based on internal operations rather than customers' perceptions.
Answer:
Which of the following statements does NOT describe the relationship between product
availability and stock level?
A. The higher the product availability, the greater the amount of backup stock.
B. More backup stock is needed in the model stock plan if a retailer wants to increase
product availability.
C. The quantity of backup stock is fixed by a retailer and is not influenced by product
availability.
D. If the product availability gets too high, scarce financial resources will be wasted on
needless inventory that could be more profitably invested in increasing variety or
assortment.
E. A very high level of product availability results in a prohibitively high inventory
investment.
Answer:
Mason is concerned that the salespeople in his men's clothing store are not spending
enough time selling merchandise to customers. What should he do?
A. Increase the sales commissions for his salespeople.
B. Stock less merchandise.
C. Change the incentives from commissions to straight salary.
D. Fire the salespeople and hire new ones.
E. Guarantee a minimum compensation.
Answer:
An unrelated diversification growth opportunity:
A. has a lot in common between the retailer's present business and the new growth
opportunity.
B. is less risky compared to a related growth opportunity.
C. is less effective compared to a related growth opportunity.
D. is less expensive compared to related growth opportunity.
E. has little commonality between the retailer's present business and the new growth
opportunity.
Answer:
How does an improved inventory management through the use of an everyday low
pricing (EDLP) strategy benefits retailers?
A. It increases the total sales.
B. It increases the number of rain checks.
C. It leads to more frequent sales and markdowns.
D. It results in a need for more backup stock.
Answer:
Which of the following statements is a reason why some vendors and retailers chose not
to adopt RFID tagging?
A. They are concerned about the data storage falling into the wrong hands.
B. They are concerned about the potential health risk of radio frequency.
C. They believe the additional costs do not benefit the return on investment.
D. They do not want to replace people with the devices.
Answer:
At La Rue Fashions, there is a certain customer who makes large purchases every
Friday and returns everything two weeks later. In response, the manager recently
created a policy and published it. It included specifics of the store's terms regarding
returned merchandise stating that all tags must be intact; the clothing must not have
been worn; and it must be returned within seven days to receive credit. Which of the
following best describes the retailer's actions?
A. Add-on selling
B. Getting the lead out
C. Data mining
D. RFM analysis
E. Cutting off services
Answer:
Which of the following is the first step in the retail management decision process?
A. Developing the retail communication mix
B. Buying merchandise
C. Developing a retail marketing strategy
D. Understanding the world of retailing
E. Customer relationship management
Answer:
Fresh n Fragrant is a chain of flower shops offering a variety of flowers and ornamental
plants. It recently opened a distribution center to supply ornamental plants and cut
flowers to all its stores within a 300-mile radius. From the given scenario, it can be seen
that Fresh n Fragrant is practicing _____.
A. vertical integration
B. channel expansion
C. horizontal expansion
D. horizontal integration
E. channel diversification
Answer:
CPFR partnerships require:
A. quick response interaction.
B. trust and commitment.
C. two or more vendors.
D. full responsibility of the vendor.
E. a controlled expense budget.
Answer:
Kola LLC is a chain of supermarkets across the country. Kola's sales staff treat their
customers very well which in turn creates great customer satisfaction. Which of the
following is most likely to be the sustainable competitive advantage of Kola?
A. Unique merchandise
B. Ethical business practices
C. Customer service
D. Location
E. Price
Answer:
Which of the following is true of private-label brands?
A. Products developed and marketed by a retailer and available with other retailers
B. Products developed by a retailer but marketed and available with a third party
C. Products developed and available with a retailer but marketed by a third party
D. Products developed by a third party but marketed and available with a retailer
E. Products developed and marketed by a retailer and available only from that retailer
Answer:
Which of the following is NOT a direct selling approach?
A. A party plan system
B. A multilevel network
C. An infomercial
D. Pyramid scheme
E. None of these
Answer:
_____ makes it hard to provide and maintain high-quality service because retailers
cannot easily measure or check the service before it gets delivered to customers.
A. Intangibility
B. Flexibility
C. Assurance
D. Empathy
E. Instrumental support
Answer:
What can retailers do to help associates balance careers and family?
A. Offer job sharing opportunities.
B. Offer higher hourly pay.
C. Offer commission based pay.
D. Foster partnering relationships between associate and supervisors.
E. Manage diversity.
Answer:
Which of the following is a key strategic decision made by a retailer?
A. Managing merchandise inventories
B. Defining the target market
C. Managing the store
D. Creating the retail communication mix
E. Implementing visual merchandising
Answer:
The only retailer that offers Fresh Sun organic food products is Daily Needs. Therefore,
Fresh Sun is an example of a(n):
A. generic brand.
B. private-label brand.
C. exclusive brand.
D. premium private label.
E. copycat brand.
Answer:
How can brand loyalty become a problem for retailers?
A. Brand loyalty mostly has an adverse impact of retailer loyalty.
B. Retailers may develop problems with the suppliers of the brand.
C. Private-label brands generally cause problems for a retailer.
D. Retailers need to focus on all the performance benefits.
E. Brand loyalty impacts the extended problem solving process.
Answer:
A company in the final stage of integrating corporate social responsibility into its
strategies:
A. only engages in CSR activities that are required of them 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 responsible activities for the well-being of everyone.
Answer:
What is the advantage of the free-form layout to the consumer?
A. Customers are exposed to a large quantity of merchandise.
B. Customers are can easily find merchandise in the store with this type of layout.
C. Customers feel they are in an intimate and relaxed environment and are more likely
to buy.
D. The layout guides the customer through the store.
Answer:
Which of the following factors is classified as environmental dynamics?
A. Market size
B. Seasonality
C. Barriers to entry
D. Social changes
E. Competitive rivalry
Answer:
In new media, _____ refer to the number of times an ad appears in front of the user.
A. impressions
B. view rates
C. air rates
D. true views
E. expressions
Answer:
Which of the following statements best describes logistics?
A. It is the management of merchandising products such as assortment planning and
pricing adjustments.
B. It is the management of the marketing plan for a proposed retail outlet.
C. It is a part of the supply chain that does not impact profitability for most retailers.
D. It is a part of the supply chain that is developed separately from the merchandising
strategy.
E. It involves the activities undertaken in the retailer's DC, in addition to managing
inbound and outbound transportation.
Answer:
Which of the following statements is true of drawing accounts?
A. It is used to provide a steadier income for salespeople who work on commission.
B. It is used to motivate employees who receive a straight salary.
C. It is used to attract salespeople who are willing to sell low-margin items.
D. It is used to provide an additional income for full-time sales people.
Answer:
Which of the following is a reason why retailers tend to use magazines for image
advertising?
A. Wider target audience
B. Extended shelf life
C. High readership
D. Low cost of advertising
E. High reproduction quality
Answer:
Which of the following is a disadvantage to the grid layout?
A. It is costly to design.
B. Shrinkage is more likely to occur.
C. Customers typically aren't exposed to all the merchandise in the store.
D. Wide aisles utilize expensive merchandise space.
E. Products are difficult for customers to find.
Answer:
Manuel's vacation to Chicago for $395 for three nights in a four star hotel on Michigan
Avenue included airfare and accommodation. If these services were availed
individually, it would have been expensive. This form of second-degree price
discrimination is referred to as _____.
A. odd pricing
B. zone pricing
C. leader pricing
D. price bundling
E. variable bundling
Answer:
The _____ are responsible for allocating merchandise and tailoring the assortment of
several categories for specific stores in a geographic area.
A. merchandising planners
B. private-label presidents
C. accountants
D. salespeople
E. human resource professionals
Answer:
The merchandise cost from the vendor for an MP3 player is $82.50, and the retailer
who is selling the device wants to use an initial markup percentage of 67 percent.
Calculate the initial retail price.
A. $149.50
B. $272
C. $55
D. $123
E. $250
Answer:
Urban customers typically place more importance on _____.
A. reducing their shopping time
B. diversity of the retailer's assortment
C. reducing their shopping expense
D. finding better bargains
E. getting all possible alternatives
Answer:
Developing retail programs for small groups or individual customers is referred to as
_____.
A. cross selling
B. a loyalty program
C. a share of wallet program
D. add-on selling
E. 1-to-1 retailing
Answer:
_____ are private-label products produced by the retailer that imitate the national brand
in both appearance and packaging, but are often offered at a lower price.
A. Premium brands
B. Generic brands
C. Copycat brands
D. Exclusive brands
E. Licensed brands
Answer:
A _____ is a promise to customers to sell currently out-of-stock merchandise at the
advertised price when it arrives.
A. rain check
B. price audit
C. bona fide reference price
D. maintained markup
E. dynamic pricing policy
Answer:
A retailer considering LED lighting versus florescent lighting, solar power versus
standard electricity, and local grasses versus typical grasses for landscaping would
mostly be considering _____ as the objective for store design.
A. legal requirements
B. retail strategy
C. controlling costs
D. flexibility
E. buying behavior
Answer:
What is the process of moving merchandise through the channel from the customer to
the store to the DC to the vendor?
A. Return flow
B. Reverse logistics
C. Outbound returns
D. Outbound flow
E. Reverse flow
Answer:
