There are actually three strategy decisions to be made when designing an efficient and
competitive supply chain: supply chain length, width, and:
a. convenience.
b. depth.
c. organization.
d. type.
e. control.
Your boss indicates that the store’s stock/sales ratio is 5:1. This means that _____
should be invested in inventory for every $1 of forecasted sales.
a. $.20 (at retail price)
b. $5 (at cost price)
c. $5 (at retail price)
d. $.20 (at cost price)
e. $50 (at cost price)
_______(is) are statements of how the retailer plans to positively affect customers,
employees, suppliers, and other stakeholders.
a. Dialogue
b. Co-productions
c. Target initiatives
d. Value propositions
e. Co-creations
The manager of a department store chose to use a percentage of the year’s profits to
help fund the Salvation Army’s Thanksgiving Dinner for the Homeless. In reference to
this sponsorship, the manager appears to have set what kind of objective?
a. Benefactor objective
b. Self-gratification objective
c. Financial performance objective
d. Status and respect objective
e. Personal objective
_____ are amounts owed to vendors for goods and services.
a. Notes payable
b. Payroll payable
c. Mortgage payable
d. Accounts payable
e. Taxes payable
Large chains which recognize that consumer tastes vary by region often use a(n) _____
to give each store the flexibility to adjust its merchandise mix.
a. standard stock list
b. flexible merchandise planning center
c. private label branding strategy
d. localized merchandise planning center
e. optional stock list
A skimming strategy will work best for a retailer when:
a. competition is high because it ‘skims’ right above the retailer’s costs.
b. revenues are equal to expenses.
c. the retailer has a temporary monopoly with its product line.
d. the retailer has excess capacity in its building.
e. demand is less than supply.
As a general rule, retailers should strive for a net profit margin of:
a. .05 to 1.5 percent.
b. 1.5 to 2.5 percent.
c. 2.5 to 3.5 percent.
d. 3.5 to 4.5 percent.
e. 4.5 to 5.5 percent.
Determine the buyer’s BOM for March, using the percentage variation method, based
on the following information: planned sales for March = $200,000; total spring sales =
$600,000; spring months = 4; inventory turnover = 2.5.
a. $150,000
b. $240,000
c. $260,000
d. $280,000
e. $600,000
What are the five most popular methods of classifying retailers?
a. Census Bureau, inventory method, margin versus turnover, location, and size
b. Census Bureau, margin versus turnover, inventory method, channel system, and size
c. Census Bureau, number of outlets, margin versus turnover, location, and size
d. number of outlets, margin versus turnover, location, size, and inventory method
e. number of outlets, Census Bureau, inventory method, location, and size
Prior to pulling its products out of Target, Tupperware made its products available in the
giant retailer’s stores. Independent Tupperware sales representatives complained that
this had a ‘detrimental effect’ on Tupperware parties. This was an example of:
a. perceptual incongruity.
b. domain disagreements.
c. goal incompatibility.
d. gray marketing.
e. dual distribution.
Which of the following statements about magazines is FALSE?
a. Consumers spend more time, per issue, with a magazine than with a newspaper.
b. Magazines are the most useful in presenting institutional advertisements.
c. Magazines have a longer life span per issue than do newspapers.
d. Magazines have a high reproductive quality.
e. Magazines have the shortest lead time requirements.
Retail experts would agree that a certain marketplace is _____ if the number of stores in
relation to the number of households is so large that to engage in retailing is
unprofitable or marginally profitable.
a. understored
b. saturated
c. overstored
d. overmarketed
e. over-spaced
Your total sales during a six-hour shift were $1,200. Your individual performance in
terms of sales per hour would be:
a. $1,200.
b. $200.
c. $2,000.
d. $400.
e. $66.
All of the following are requirements for a merchandise budget EXCEPT:
a. the budget should be prepared in advance of the selling season.
b. the language in the budget must be easy to understand.
c. the budget must plan for a relatively short period of time.
d. the budget should always seek to increase the planned gross margin over the actual
gross margin from the previous season.
e. the budget should be flexible.
An excess of physical inventory over book inventory is usually caused by:
a. customer shoplifting.
b. markdowns.
c. bookkeeping errors.
d. too high of markups.
e. employee discounts.
The presence of legitimate power is most easily seen in:
a. retailed-owned cooperatives.
b. franchises.
c. administered vertical marketing channels.
d. dependency.
e. contractual marketing channels.
One of the main differences between the traditional view of advertising and
consumer-centric view of advertising is that:
a. consumer-centric advertising is designed primarily to sell its merchandise.
b. traditional orientation views advertising as a service.
c. consumer-centric retailers are moving towards a one way advertising service.
d. consumer-centric orientation views advertising as a service.
e. traditional orientation views advertising as part of the process of building
relationships.
Visual merchandising is:
a. the practice of making the most profitable merchandise the most visible.
b. the practice of making all the merchandise as visible as possible.
c. practiced by lower-end stores attempting to shake their ‘cheap’ image.
d. the artistic display of merchandise and theatrical props to set the tone for the store.
e. intended to be highly shopable.
When determining space allocation for a new store, a retailer should consider industry
standards, the retailer’s previous experience with similar formats, and the space required
to carry the number of items specified by the retailer’s buyers.
Chain stores have an advantage over locally owned, non-chain retailers in that as
Americans move more often, and they are more likely to shop at the national chains
with whose names they are familiar.
Operating profit is gross margin less operating expenses.
A retailer’s beginning-of-the-month (BOM) inventory for one month is always equal to
the end-of-the month (EOM) inventory for the previous month.
If a retailer makes efficient use of available resources, then the retailer is said to be
operations effective.
A customer-service and sales-enhancement audit can easily be performed by the
retailer’s own staff.
The nations that have benefited from the greatest economic and social progress have
been those with a strong retail sector.
There are three types of vertical marketing channels: corporate, contractual, and
administered.
If a newspaper is distributed to 50 percent of the 80,000 households in a retailer’s target
market, the reach is 40,000 households.