In response to a growing trend of workers eating at their work stations, OfficeEase
LLC, an Internet retailer, offers a line of products that can be used to protect office
equipment and furniture including a plastic sheath for a computer keyboard and a
spill-proof cup. Last year, its net sales were $1,450,000 with cost of goods sold for
$353,000. The company’s expenses, last year, totaled $960,000. Calculate the
company’s net profit percentage.
A. 9.4 percent
B. 24.3 percent
C. 66.2 percent
D. 75.6 percent
E. 8.0 percent
Answer:
Which of the following statements about assortment is NOT true?
A. The number of SKUs offered in a merchandise category is a strategic decision.
B. The breadth and depth of the assortment in a merchandise category can affect the
retailer’s brand image.
C. Offering a large assortment normally simplifies a customer’s buying decision.
D. Customer perceptions on assortments are based on the availability of the customer’s
favorite SKU and the size of the category’s display.
E. Buyers need to consider the degree to which categories in a department complement
each other.
Answer:
At work, Meesha took part in a training seminar during which each participant was
asked to be blindfolded for an hour in order to see what it was like to be a blind
employee. Meesha was participating in a(n):
A. empowerment program
B. career track training program
C. mentoring program
D. program for managing diversity
E. focus group
Answer:
Which of the following strategies aids in reducing channel migration?
A. Offer uniquely relevant information to customers.
B. Persuade suppliers to increase their sales forecasts.
C. Encourage vendors to deliver complete assortments.
D. Increase efficiencies of supply chain management.
E. None of these.
Answer:
A bagel shop which decides to open up an hour earlier every morning is taking
advantage of a _____ opportunity.
A. market penetration
B. diversification
C. retail format development
D. market depletion
E. market divestment
Answer:
A metropolitan statistical area (MSA) is a core urban area containing a population of
more than 50,000 inhabitants.
Answer:
Bine Lane LLC is a fabric store that sells only cotton clothing. After a situation
analysis, the marketing team of Bine Lane wants its current customers to visit and
purchase from the store more frequently. Which of the following growth strategies
should Bine Lane follow to achieve its objective?
A. Wholesale format development growth opportunity
B. Market expansion growth opportunity
C. Retail format development growth opportunity
D. Diversification growth opportunity
E. Market penetration growth opportunity
Answer:
Store locations in a mall that are located next to one another are ______ stores.
A. adjacent
B. congestion
C. parasite
D. region
E. tertiary
Answer:
The _____ is the phenomenon that occurs when a store is extremely cramped.
A. closing time effect
B. bystander effect
C. butt- brush effect
D. boomerang effect
E. conspicuous consumption effect
Answer:
A freestanding insert (FSI) is also called a(n) _____.
A. preprint
B. cogprint
C. reprint
D. postprint
E. eprint
Answer:
Breanne was walking across campus to her chemistry lab when she noticed an area that
had lingerie merchandise that was not there earlier in the week. This retail format would
be an example of a ______.
A. kiosk
B. parasite store
C. store within a store
D. timed leased agreement
E. pop-up shop
Answer:
Which of the following segmentation methods would be most appropriate for a retailer
selling beach apparel?
A. Geographic segmentation
B. Buying situation segmentation
C. Demographic segmentation
D. Benefit segmentation
E. Personality segmentation
Answer:
Retailers can use _____ to arrange for the storage and shipping of their merchandise.
A. dispatchers
B. freight forwarders
C. integrated third-party logistics companies
D. reverse logistic companies
E. public warehouses
Answer:
Which of the following value-creating activities has retailers offering products in
quantities tailored to customers’ consumption patterns?
A. Providing assortments
B. Breaking bulk
C. Add-on selling
D. Holding inventory
E. Scrambled merchandising
Answer:
_____ happens after a worker has packed a case or carton, usually just before sealing it.
A. Ship verification
B. Retail verification
C. Shop verification
D. Pack verification
E. Purchase verification
Answer:
When developing a retail communication program, communication objectives are set
when the _____.
A. program is implemented and evaluated
B. budget is determined
C. objectives are established
D. budget is allocated
Answer:
While shopping in the electronics department in Giantz, Sasha noticed an advertisement
about lay-away on the Giantz network broadcasted on a nearby television. Therefore,
the store is using _____ to deliver visual content.
A. digital imagery
B. digital signage
C. point-of-sale signage
D. sampling
E. corporate display advertising
Answer:
Which of the following actions is a way to reduce the delivery gap?
A. Reducing instrumental support
B. Empowering employees at the firm’s lowest level
C. Assuming what the customer is about complain
D. Interrupting customers when they explain their problem
E. Adopting an antagonistic approach toward customers
Answer:
For fashion merchandise, where there is only one shipment of the product or collection,
the best supply chain method to use is the _____.
A. cross check logistic strategy
B. pull supply chain strategy
C. cost efficient logistic strategy
D. push supply chain strategy
E. influential logistic strategy
Answer:
Why is it imperative that manufacturers like HP and Procter and Gamble understand the
operations of retailers?
A. To sell directly on-line
B. To encourage retailers to offer and promote their products
C. To develop strategies for selling without retailers
D. Retailers can expect fewer buyouts to occur
E. To have a wide assortment of products for customers to choose from
Answer:
Which of the following is NOT recommended as a merchandise location practice?
A. Retailers should strategically place impulse and demand/destination merchandise
throughout the store, so they can increase the chances that a customer will shop the
entire store and focus on the merchandise with a high GMROI.
B. Retailers should place merchandise with a high GMROI at or close to the store
entrance to attract customers’ attentions and sell fast.
C. Retailers should display some of their most compelling merchandise in the strike
zone to create desirable first impression of the store.
D. Retailers should display high GMROI products at the right-hand side of the store.
E. A retailer should strategically cluster complementary products together to facilitate
multiple purchases.
Answer:
The place where the point of sale data is stored, and the organization uses to support its
decisions is called a(n) _____.
A. spreadsheet
B. computerized processing unit
C. electronic data interchange
D. database chain
E. data warehouse
Answer:
Essentials, a retail store, manages its own warehouse. It also owns a manufacturing
facility where it produces private-label food products. Therefore, Essentials is
practicing _____.
A. scrambled merchandising
B. backward integration
C. cross-selling
D. horizontal integration
E. forward integration
Answer:
Yield management means:
A. setting prices by simply marking up the merchandise without considering price
sensitivity.
B. understanding and implementing pricing based on costs.
C. implementing steps for reducing markdowns.
D. managing promotions that yields higher sales.
E. adjusting prices in response to demand in order to control sales generated.
Answer:
Which of the following statements is true of team incentives?
A. It is based on individual performance.
B. It encourages individualism within the sales department.
C. The income from team incentives is not taxed by the federal government.
D. It is based on the performance of the store as a whole.
E. It discourages sales people from working together.
Answer:
A vendor’s recent shipment at the retailer’s distribution center was on time, but the
boxes were mislabeled along with other infractions against the retailer’s mandated
shipment policies. What should the retailer do?
A. Pay the vendor invoice immediately to assure deliveries are still on time in the
future.
B. Initiate legal proceedings against the vendor.
C. Accept vendors’ gifts to repay the inconvenience infractions.
D. Issue a chargeback.
E. Send the shipment back.
Answer:
At the Mall of America, all of the children’s specialty stores are on the ground floor and
are near the restaurant Rainforest Caf which also targets adults with children. This
would be an example of the principle of _____.
A. multiple risk
B. analog approach
C. cumulative attraction
D. consumer spotting
E. diminishing adjacent
Answer:
(p.457-458) Which of the following is the most widely used interview technique?
A. Panel interview
B. Telephonic interview
C. Case interview
D. Behavioral interview
E. Stress interview
Answer:
A racetrack layout is also called a _____.
A. loop
B. fixture
C. boutique layout
D. gondola
E. free-form layout
Answer:
Because of the principle of _____, no individual Kohl’s store should be held financially
responsible if the buyers for Kohl’s lower prices to get rid of merchandise and sales
suffer.
A. unity
B. accountability
C. delegation
D. empowerment
E. equity
Answer:
When decision-making is centralized in corporate management, retailers:
A. have reduced costs.
B. quickly adapt to local market conditions.
C. respond well to local competition and labor markets.
D. have decreased efficiency.
E. must involve department managers in the buying process.
Answer:
Which of the following is a reason for the decline in the growth of newspaper
advertising by retailers?
A. The retailers have begun using other media
B. The increasing cost of developing an advertisement for newspapers
C. The decreasing market penetration of the newspaper industry
D. The time taken to develop an advertisement for newspapers
E. The depleting credibility of newspaper organizations
Answer:
Matthew made a purchase online of a Fender speaker system from a retailer. When the
shipment of his purchase arrived at his home, he noticed that the product was shipped to
him directly from Fender. The retailer and vendor are utilizing a system of _____.
A. drop shipping
B. cross-docking
C. outsourcing
D. third party logistics
E. vendor managed inventory
Answer:
Which of the following can be considered as a current asset?
A. Net profit percentage
B. Accounts receivable
C. Selling expenses
D. Gross margin
E. Operating expenses
Answer: