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The most effective approach for reducing employee theft and shoplifting is to create a
trusting, supportive work environment.
Answer:
Pack verification happens after a worker has packed a case or carton, usually just before
sealing it.
Answer:
The free-form layout is well suited for customers who are primarily interested in the
hedonic benefits offered by a store.
Answer:
Radio frequency identification (RFID) is a technology that allows an object or person to
be identified at a distance by means of radio waves.
Answer:
The customer lifetime value (CLV) is the expected contribution from the customer to
the retailer's profits over his or her entire relationship with the retailer.
Answer:
Top-down planning means that goals get set at the top of the organization and are
passed down to the lower operating levels.
Answer:
Retailers can reduce the knowledge gap and develop a better understanding of customer
expectations by undertaking customer research.
Answer:
Customers engage in extended problem solving when they have a large amount of
information on the product they plan to buy.
Answer:
Effective frequent-shopper programs are transparent.
Answer:
Urban sprawl is the increased expansion of residential and shopping center
development in suburban and rural areas outside of their respective urban centers.
Answer:
The primary objective of a store design is in implementing the retailer's strategy.
Answer:
Whereas corporate chains can tailor their offerings to their customers' needs,
single-store retailers can more effectively negotiate lower prices for merchandise and
advertising because of their larger size.
Answer:
An ABC analysis identifies the performance of individual SKUs in the assortment plan.
Answer:
A protected class is a group of individuals who share a common characteristic as
defined by the law.
Answer:
Developing retail programs for small groups or individual customers is referred to as
1-to-1 retailing.
Answer:
Empowerment means allowing employees at a firm's lowest levels to make important
decisions regarding how service will be provided to customers.
Answer:
The highest classification level in the buying organization is the merchandise category.
Answer:
Private-label brands benefit retailers but not customers.
Answer:
Diverted and gray-market goods go through distribution channels that are not
authorized or intended by the manufacturer.
Answer:
The best place for store planners to position a "destination" department or item is the
front right-hand side of the store.
Answer:
The steps in effective service recovery are listening to the customer, providing a fair
solution, and resolving the problem quickly.
Answer:
The two basic shopping goals of consumers are customer satisfaction and customer
service.
Answer:
Horizontal integration describes diversification by retailers into wholesaling or
manufacturing.
Answer:
The break-even quantity is the quantity at which total revenue equals total cost beyond
which profit occurs.
Answer:
Empathy refers to the caring, individualized attention provided to customers.
Answer:
Many purchase decisions involve products that the entire family will consume or use.
Answer:
Cross-docking is when vendors ship merchandise prepackaged in the quantity required
for each store and when the products arrive to the distribution center, the products move
to the staging area to be shipped to the designated stores.
Answer:
Outlet centers are shopping centers that contain mostly manufacturers and retailers'
outlet stores.
Answer:
Cookies are not equipped to track customer interactions on social networking sites.
Answer:
Spots have relatively large audiences, but they are expensive for local retailers.
Answer:
Initial markup is the actual sales realized for the merchandise minus its costs.
Answer:
Direct investment occurs when a retail firm invests in and owns a retail operation in its
home country.
Answer:
A customer database normally contains information on customer preferences.
Answer:
The secondary trading area is the geographic area from which the shopping center or
store site derives 50 to 70 percent of its customers.
Answer:
Sally's LLC, a local supermarket, has all of the following characteristics. Which of the
following characteristics of Sally's is most likely to be a more sustainable competitive
advantage?
A. Extended hours of operation
B. More employees
C. Shared systems with vendors
D. More merchandise
E. More sales promotions
Answer:
Discount department stores are typically located in _____.
A. omnicenters
B. power centers
C. strip shopping centers
D. marketing complexes
E. lifestyle centers
Answer:
Which of the following statements is true about the Spending Potential Index?
A. It compares the local average expenditure by product to the national average amount
spent.
B. It compares sales predictions based on various retail locations.
C. It is an index that provides retailers who are thinking of expanding into international
markets with data on what consumers spend.
D. It compares what retailers spend on real estate in a given market and compares it to
the national average.
E. It offers retailers information on property values as well as local tax information so
they are better able to compare prior to purchasing.
Answer:
Because of the open-air configuration of upscale specialty stores, coupled with
entertainment and restaurants, _____ are very convenient for shoppers.
A. convenience centers
B. regional malls
C. off-price centers
D. outlet centers
E. lifestyle centers
Answer:
Which of the following items would most likely be purchased as an impulse item?
A. A DVD player
B. A marketing textbook
C. A pair of Italian boots
D. A packet of chewing gum
E. Waterford crystal vase
Answer:
Which of the following is NOT a factor that determines the level of required backup
stock?
A. The product availability the retailers wish to provide
B. Fluctuations in demand
C. Lead time for delivery from the vendor
D. Fluctuations in vendor lead time
E. Price of the product
Answer:
The evaluation error made when a manager forms an overall opinion of an employee's
performance and allows this opinion to influence the ratings of all other performance
factors is called a(n) _____.
A. pitchfork effect
B. halo effect
C. recency bias
D. excessive severity
E. opportunity bias
Answer:
Why are airports such a profitable place to have a retail business?
A. Airport leases are affordable and short-term.
B. Tourists find unique stores at airport not available to them at other shopping centers.
C. Travelers tend to carry more money than a traditional shopper.
D. Changes in security have encouraged travelers to arrive earlier and make more
purchases after they go through security.
E. Airport retailers can pay employees lesser wages than what they pay at other
shopping centers.
Answer:
Retailers can use multiple channels synergistically by:
A. using one channel to promote the others.
B. providing similar assortments across channels.
C. providing a limited amount of information to customers.
D. concentrating only on catalogs for product promotions.
E. reducing prices for products in all channels.
Answer:
A special type of off-price retailer stores owned by manufacturers is called a _____.
A. consignment shop
B. thrift store
C. dollar store
D. warehouse club
E. factory outlet
Answer:
Catherine wanted to purchase a digital camera. Hence, she visited an online retailer's
website to learn more about the different features and capabilities of the device.
Catherine went to a supermarket to make other purchases. She sees the camera there
and purchases it. Which of the following terms describes Catherine's actions?
A. Channel migration
B. Channel expansion
C. E-tailing
D. Phishing
E. Automated retailing
Answer:
Attempting to combat losing market share, department stores are _____.
A. becoming more effective with multichannel retailing
B. adding exclusive merchandise to their assortments
C. developing stronger marketing campaigns to enhance their store image
D. placing more emphasis on developing their own private-label brands
E. all of these
Answer:
Yves, an English speaking Frenchman, meets with buyers from the United States when
they visit Paris. Once in Paris, the buyers rely on Yves to make appointments with
French vendors to save time and penetrate the market. Yves works to help interpret and
negotiate during the buyer-vendor meetings. Therefore, Yves works for a(n) _____.
A. black market
B. resident buying office
C. reverse auction office
D. cohort exchange office
E. stock market
Answer:
Which of the following is a major disadvantage of centralization?
A. Increased overhead expenses
B. Different merchandise in each store
C. Need to have standardized operating policies
D. Inability to use national advertising media
E. Inability to quickly respond to changes in local environments
Answer:
Traffic count is less important for:
A. convenience stores.
B. destination retailers.
C. grocery stores.
D. car washes.
E. specialty retailers.
Answer:
Which of the following is NOT true of staple merchandise categories?
A. They consist of items which are in continuous demand over an extended time period.
B. The number of new product introductions in these categories is limited.
C. The demand for these categories is predictable.
D. Because their sales are relatively steady from day-to-day, periodic inventory system
is used.
E. Merchandise planning systems for these categories focus on continuous
replenishment.
Answer:
Which of the following is a guideline for spotting shoplifters?
A. Look for people with tight clothing.
B. Look for people who appear lethargic.
C. All shoplifters are poorly dressed.
D. Watch the eyes, hands, and body.
E. Watch out for people with children.
Answer:
Millhouse loves books and often shops at a nearby Book Universe store. At the
beginning of the year, he enrolled in a $5 program, and he would get a percentage off
on the purchases he made throughout the year. Which of the following best
demonstrates this type of approach toward customer retention?
A. Community
B. Sales promotion
C. Frequent-shopper program
D. Personalization
E. Special customer service
Answer:
A price experiment:
A. can be used to measure the price sensitivity of customers.
B. cannot be performed if the retailer uses POS terminals.
C. is a less accurate method of determining buyer response to price changes than a
consumer panel.
D. is useful for obtaining data for a cost-oriented pricing strategy.
E. is a risky procedure when competition is a factor.
Answer:
As you enter Yesteryear, a vintage clothing boutique, you're aware of how inviting the
store is for browsers. The entire lighting is from floor and table lamps. The music plays
Benny Goodman serenades, and the air smells like powder. The walls are covered in
vintage floral wallpaper. This design which stimulates customers' senses is called
_____.
A. ecoscaping
B. terraforming
C. arboriculture
D. atmospherics
E. showrooming
Answer:
Which of the following is a benefit of ONLY store channel shopping?
A. Convenience
B. Extensive information
C. Personalization
D. Immediate gratification
E. Broad and deep assortments
Answer:
Employment discrimination on which of the following basis is legal in the United
States?
A. Gender
B. Age
C. Educational qualification
D. Religious beliefs
E. Sexual orientation
Answer:
Which of the following statements is a disadvantage of a joint venture?
A. The entering retailer must bare all the loss.
B. Only the local retailer is exempted from trade laws.
C. Government places restrictions on the repatriation of profits.
D. Only the local retailer is exempted from trade tax.
E. The local retailer is at freedom to choose which laws they adhere to.
Answer:
Who among the following would be the best person to make sure that high-quality
customer service standards are achieved by retailers?
A. Human resources manager
B. Marketing manager
C. Store manager
D. Advertising manager
E. Financial manager
Answer:
Which of the following statements about the use of scent to change or augment the
atmospherics in a store is TRUE?
A. The methods used to introduce scent into a store are relatively expensive.
B. Scents can improve customers' subjective shopping experience.
C. The age of the target market does not affect the way scents are received and decoded.
D. There are no ethnic differences in the way scents are received and decoded.
Answer:
Retail chains typically classify each of their stores on the basis of annual sales.
According to this classification, _____.
A. A stores would have the largest sales volume
B. C stores would receive the highest inventory
C. B items represent 65 percent of SKUs in a category
D. C items contribute to 20 percent of sales
E. B items require the highest amount of backup stock
Answer:
Andrea wants to build top-of-mind awareness for her nail shop. The best way for her to
develop this awareness would be to _____.
A. partner with her vendors to bring great merchandise into the store
B. repeatedly expose customers to the name of the shop through advertising
C. offer better customer service
D. teach nail design classes
E. develop the best inventory of custom nails in the city
Answer:
Wilbur uses Books-A-Million customer card, Kash-N-Karry customer card,
Blockbuster customer card, and Sandwich Shop customer card when he shops at any of
these retailers. Each time he uses them, he gets rewarded with reduced cost, free
merchandise, or a credit. These cards form a part of:
A. assortment planning programs.
B. retail analytic programs.
C. frequent-shopper programs.
D. privacy and CRM programs.
E. market basket analysis.
Answer:
The multiattribute attitude model is designed to:
A. predict how a customer will evaluate a store based on its attributes and how
important these attributes are to the customer.
B. forecast inventory needs based on a multiple regression model.
C. stratify the target market by examining customers' attributes and determine the
store's or product's position in the market.
D. modify preexisting attitudes by providing customers with a list of benefits
(attributes) for shopping at a particular store or buying a particular product.
E. shorten the buying process by highlighting the attributes that will most likely affect
the buying behavior of the targeted market.
Answer:
A _____ is a group of consumers with similar needs and a group of retailers that satisfy
those needs using a similar retail channels and format.
A. retail market
B. virtual market
C. wholesale market
D. target market
E. global market
Answer:
Ferdinand runs a pie shop in a busy metropolis. He sells his fresh pies for $7, but it
costs him $2.50 to make them. The cooking equipment in his shop cost him $46,000.
How many pies does Ferdinand need to sell to make $50,000 annually?
A. 33,000 pies
B. 16,000 pies
C. 8,500 pies
D. 21,333 pies
E. 12,645 pies
Answer:
_____ is an invisible barrier that makes it difficult for minorities and women to be
promoted beyond a certain level.
A. A glass ceiling
B. Outsourcing
C. Empowerment
D. An entry barrier
E. Economy of scale
Answer:
What is a retailer's most effective tool against shoplifting?
A. Unique merchandise
B. Employees
C. Prosecution policies
D. Cash wraps
E. EAS tags
Answer:
A critical factor affecting the location that consumers select to visit is the shopping
situation in which they are involved. What type of shopping situation should a retailer
such as Walgreen's consider?
A. Distributive shopping
B. Time-crunch shopping
C. Comparison shopping
D. Convenience shopping
E. Specialty shopping
Answer:
How can a service retailer best cope with the problems associated with the intangibility
of service?
A. Use low prices during off-seasons to help match supply and demand.
B. Use mass production.
C. Emphasize quality control.
D. Solicit customer evaluations and complaints.
E. Increase staffing at peak demand times.
Answer:
What are the factors that determine the level of required backup stock?
Answer:
Define communications gap. What can be done by a retailer to reduce this gap?
Answer:
How has technology changed customer expectations with regard to retailers?
Answer:
What is the difference between variety and assortment?
Answer:
How can having strong brands benefit a retailer?
Answer:
What can a retailer do to build the brand equity of its firm or private-label
merchandise?
Answer:
How do human resource professionals, store managers, and employees play a part in
human resource management?
Answer:
What are the five customer service characteristics that affect customer's opinions of
service quality and what constitutes customer satisfaction?
Answer:
Define organization structure.
Answer:
Explain what drugstores do to remain competitive in the marketplace.
Answer:
List the steps in the strategic retail planning process.
Answer:
How have traditional store-based retailers benefitted by adding Internet channels to
their operations?
Answer:
What factors should be considered in locating stores? Why should retailers consider
those factors?
Answer:
List the three objectives that a supply chain security policy should meet.
Answer:
A buyer asking or receiving something of value that influences purchasing decisions
occurs in the black market.
Answer:
Explain the strategies that limited-assortment supermarkets (extreme-value food
retailers) use in order to provide customers with high-quality merchandise at low prices
to compete against other food retailing formats.
Answer:
Where can retailers obtain information about the nature of consumers in a trade area?
Answer:
What are the steps involved in effective service recovery?
Answer:
How does the Internet help customers evaluate merchandise when making buying
decisions?
Answer:
