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_____ is used to present products when retailers offer a limited number of
predetermined price points within a product classification category.
A. Flexible pricing
B. Competitive pricing
C. Price presentation
D. Price lining
E. Vertical merchandising
Answer:
The hosting of a website for the purpose of online retailing would be classified as a(n):
A. cost of goods sold.
B. operating expense.
C. promotional allowance.
D. profit center.
E. asset productivity center.
Answer:
Developers will usually look for _____ to build lifestyle centers.
A. small towns
B. middle-class neighborhoods
C. higher-income neighborhoods
D. interstate interchanges
E. inner city locations
Answer:
Redbox, a DVD rental service, utilizes machines to dispense DVDs to customers.
Which form of retailing is Redbox using?
A. Internet retailing
B. Store Channel
C. Direct Selling
D. Automated retailing
E. Catalog retailing
Answer:
Why do vendors encourage retailers to sell at MSRP?
A. To secure a profit
B. To reduce retail price competition among retailers
C. To avoid markdowns
D. To promote national brands as quality brands
E. To drive competitive retailers out of business
Answer:
At FN Platform, vendors display their fashion footwear in designated areas at the Las
Vegas convention center and have sales representatives available to talk with buyers as
they walk through the exhibit area. This exhibition is an example of a _____.
A. retail exchange
B. trade show
C. diverted merchandise sale
D. gray-market sale
E. reverse auction
Answer:
Which of the following is NOT a criterion used to evaluate whether a retail segment is a
viable target market?
A. Accessibility
B. Actionability
C. Family lifecycle
D. Size
E. Reachability
Answer:
The Tackle Box is a store that sells anything you may need to catch fish including local
information about what is running, where it's running, and what bait works best. The
fishing enthusiasts who rely on the Tackle Box for reliable equipment and information
constitute the retailer's:
A. consideration set.
B. demographic set.
C. media set.
D. retail market segment.
E. psychosocial segment.
Answer:
Customers shopping in a scented store:
A. feel no significance difference in the shopping experience.
B. tend to spend less time in the store.
C. think they spent less time in shopping.
D. feel they wait a long time for checking out.
E. always make impulsive purchases.
Answer:
Neil works as a customer service executive in a call center. He handles customer
queries and is often hampered by network and telephone problems. Hence, he is unable
to effectively address customers' problems. The poor quality of customer service in the
given scenario can be attributed to _____.
A. lack of instrumental support
B. poor internal communication
C. distributive fairness
D. procedural fairness
E. unrealistic customer expectations
Answer:
A _____ is a group of items targeting the same customer type, such as girls' sizes 4 to 6.
A. stock-keeping unit
B. department
C. merchandise group
D. classification
E. merchandise category
Answer:
Retailers can reduce the delivery gap by:
A. setting service standards based on internal operations rather than customers'
perceptions.
B. providing employees the necessary skills and knowledge.
C. dwelling primarily on the negative aspects of customer problems.
D. providing standardized rather than personalized services for purchases involving
high risk.
E. setting service goals that are broad and intangible.
Answer:
Samson's is a large clothing retailer. The store offers over 1,000 brands and 50,000
different products. Which of the following value-creating activities can be seen in the
given example?
A. Breaking bulk
B. Scrambled merchandising
C. Vertical integration
D. Offering assortments
E. Add-on selling
Answer:
Frankie is a buyer for a department store and is buying some handbags at a cost of $30
from a vendor. He desires to have a 60% markup to meet the financial goals of this
category. What will be the retail price of these handbags?
A. $75
B. $40
C. $50
D. $60
E. $95
Answer:
Multichannel retailers struggle to provide an integrated shopping experience because:
A. various channels demand skills and unique resources.
B. they do not have intermediaries for supplying products.
C. they generally offer limited assortments in their channels.
D. multichannel retailing often results in a pyramid scheme.
E. merchandise is offered at the same price across channels.
Answer:
Which of the following statements correctly describes the practices regarding customer
privacy in the U.S.?
A. In the United States, Americans rely upon federal government to protect consumer
privacy.
B. Current legislation in the U.S. for consumer privacy forces strict protection of
consumer privacy in retailing.
C. The United States has more stringent consumer privacy laws than the European
Union.
D. In the U.S., the opt-out policy is applied when consumers' personal information is
collected and used.
E. In the U.S., personal information is generally viewed as being in the public domain,
and retailers can use it in any way they desire.
Answer:
Which of the following steps is most likely to be the previous step before evaluating
performance and making adjustments in the strategic retail planning process?
A. Define the business mission.
B. Develop a retail mix to implement strategy.
C. Identify strategic opportunities.
D. Conduct a situation audit.
E. Evaluate strategic alternatives.
Answer:
Mimi is a single parent working at a local hairdresser. Her children start school early
and get out early from school, making the typical workday a difficult task for her. To
assist, the owner offered her to begin her day at 7:30 a.m. and leave at 4:00 p.m. making
it easier for Mimi to work her job, as well as maintain a household. Mimi's new
schedule is an example of:
A. time sharing.
B. task empowerment.
C. balanced tasking.
D. job sharing.
E. flextime.
Answer:
A(n) _____ prohibits the landlord from leasing to retailers that sell competing products.
A. prohibited-use clause
B. exclusive-use clause
C. escape clause
D. fixed-rate leases
E. inclusive-use clause
Answer:
Which of the following is NOT an element considered in the design of a store?
A. Layout
B. Signage
C. Graphics
D. Attention getting feature areas
E. Recruitment
Answer:
Which of the following factors is considered by retailers in making merchandise
allocation and promotion decisions specific to difficult economic times?
A. Shrinkage
B. Paycheck cycle
C. Buffer stock
D. Backup stock
E. Fill rate
Answer:
The retailer's order is transmitted to the distribution system via computers. Then, the
computer at the distribution center creates a _____, a document or display on a screen
in the forklift truck that indicates how many cartons to get from specific storage areas.
A. selection order
B. pick ticket
C. requisition order
D. sorting order
E. selection list
Answer:
Which of the following is the major disadvantage of a straight salary plan?
A. It is expensive to administer.
B. It increases a retailer's variable costs.
C. Many employees have trouble understanding a straight salary plan.
D. It makes it very difficult for a retailer to assign employees to activities.
E. It does not directly relate pay incentives to productivity.
Answer:
The Fair Labor Standards Act of 1938 does all of the following except _____.
A. limiting maximum work hours
B. setting child labor standards
C. setting overtime-pay provisions
D. establishing minimum wages
E. prohibiting discrimination
Answer:
Mystery shoppers give importance to all of the following aspects EXCEPT:
A. the attitude of the sales associate toward the shopper.
B. the manner in which merchandise was displayed in the store.
C. the knowledge of the sales associate about merchandise he or she was selling.
D. the responsiveness of the sales associate to the shopper's complaints.
E. the price of the merchandise offered at the store.
Answer:
Which among the following accounts for more inventory loss?
A. Shoplifting
B. Employee theft
C. Inaccurate records
D. Vendor fraud
E. Logistical gaps
Answer:
Linda is a fashion designer who sourced out to a manufacturer in India in order to
assemble her fall line. She assumed the patterns for the clothes were simple, and she
deemed it unnecessary to personally visit the factory and supervise the workers sewing
her clothes. Months later, the shipment arrived in New York and, the seams on all of the
blouses were sewn incorrectly. This mishap is an issue of _____.
A. quality control
B. tariff ramifications
C. poor strategy
D. global market satiation
E. global trends
Answer:
What does asset turnover measure?
A. It is the retailer's gross sales divided by its net sales.
B. It is the retailer's total productivity divided by net sales.
C. It is the retailer's average productivity divided by gross sales.
D. It is the retailer's net sales divided by its assets.
E. It is the retailer's total productivity divided by gross sales.
Answer:
When customers join the Daily Needs Reward Zone, they receive one point on every
purchase they make at Daily Needs stores and DailyNeeds.com. Reward Zone points
are converted to reward certificates which can be redeemed for merchandise at Daily
Needs stores or on DailyNeeds.com. Reward Zone Members also receive exclusive
offers throughout the year and a 'special reward" for their birthday. This strategy by
Daily Needs is an example of _____.
A. tiered reward system
B. personalization
C. a customer loyalty program
D. an exclusive value share program
E. market basket analysis
Answer:
Prime Industries Inc. is a large company producing a wide range of chemicals. The
company recently installed a waste water treatment facility in its premises. It believes
that releasing water containing chemical waste into the river would harm the entire
population of the city. Thus, it is in the _____ stage of incorporating corporate social
responsibility.
A. initial
B. second
C. tertiary
D. final
E. acquisition
Answer:
By knowing the return on assets for his bakery shop, Chuck will know:
A. how much profit was generated from his investment in assets.
B. information found only on his balance sheet.
C. information found only on his income statement.
D. total assets divided by net profits.
E. total assets divided by owners' equity.
Answer:
Grocers, a large food retailer, purchases fruits from several different tropical countries.
When the fruits arrive in distribution centers across the United States, the quantities are
reduced to amounts that are appropriate for store delivery. The stores, in turn, offer the
fruits in quantities that depend on the consumption pattern of the customers. This act of
offering products in smaller quantities based on consumption patterns is known as
_____.
A. holding inventory
B. breaking bulk
C. forward integration
D. intensive distribution
E. consumerization
Answer:
Which of the following is classified as in-store marketing?
A. Coupon
B. Rebate
C. Discount
D. Premium
E. Sample
Answer:
The U.S. retail industry has:
A. the greatest concentration of large firms.
B. the lowest retail density in the world.
C. mostly small stores which operate independently.
D. a single large wholesale industry supplying to all retailers.
E. a fragmented distribution system.
Answer:
