If you choose the store-management path, which of the following statements would be
true?
a. Selecting, training, evaluation, and all other aspects of personnel management are
your responsibility.
b. You will have to use quantitative tools such as the merchandise budget in your work.
c. You are responsible for selecting the merchandise.
d. You must select the vendors and negotiate terms with them.
e. Store managers, who usually work out of the retailer’s main office but do spend a
great amount of time traveling have to develop appropriate buying plans for their
merchandise lines.
Joe’s Kites is preparing an income statement. Net sales equal $175,000. Returns and
allowances equal $16,000. Costs of goods sold equal $95,000. What is Joe’s gross
margin?
a. $64,000
b. $80,000
c. $96,000
d. $159,000
e. $191,000
The first step when developing a floor plan is:
a. deciding what price should be used.
b. analyzing how the available store space should be allocated to various departments.
c. determining how customers circulate through the store after entering through every
possible entrance.
d. determining where shoplifting is most likely to occur.
e. deciding where to put the nonselling areas.
A retail firm that is setting goals based on the analysis of its ability to provide a profit
level adequate to continue in business is setting _____ objectives.
a. liquidity
b. financial performance
c. profit performance
d. market performance
e. operating performance
_____ is NOT used in the merchandise budget to derive the planned purchases at retail
figure.
a. Planned BOM inventory
b. Planned net worth
c. Planned sales
d. Planned EOM inventory
e. Planned retail reductions
_____ is an intangible asset, usually based on customer loyalty that a retailer pays for
when buying an existing business.
a. Prepaid expenses
b. Cash
c. Goodwill
d. Inventory
e. Accounts payable
_____ is a pricing objective that seeks to obtain as much profit as possible.
a. Profit maximization
b. Target’“return
c. Percentage-of-sales
d. Competition-oriented
e. Skimming
When a consumer has a strong retailer preference and strong brand preference, he/she
will engage in:
a. decelerated problem solving.
b. habitual problem solving.
c. limited problem solving.
d. extended problem solving.
e. tertiary problem solving.
Advertising effectiveness refers to:
a. if it achieved the lowest CPM-TM.
b. the impact an advertisement makes on potential customers.
c. the number of target customers that come into contact with a given advertising
message.
d. the extent to which advertising has produced the desired result.
e. the number of times a member of a target group is exposed to a specific
advertisement.
_____ occurs when an employee of one of the retailer’s vendors steals merchandise as it
is delivered to the retailer.
a. Vendor collusion
b. Vendor theft
c. Shorting
d. Employee theft
e. Employee shortage
A local stockbroker spent two hours explaining the benefits of owning IBM stock to a
middle-aged couple. After listening to stockbroker, the couple decided not to buy IBM
stock. The two hours the stockbroker spent with the couple would be considered:.
a. wasted time.
b. idle time.
c. nonselling time.
d. unproductive time.
e. selling time.
_____ allows the retailer to pay the invoice in advance of the end of the cash period and
earn an extra discount.
a. Advance discount
b. Functional discount
c. Momentum discount
d. Promotional allowance
e. Anticipation
A supplier sells two identical shipments of clothing to two different retailers at different
prices. This is a clear violation of the _____ Act.
a. Sherman Antitrust
b. Robinson-Patman
c. Federal Trade Commission
d. Lanham
e. Truth in Lending
Which of the following would be a good approach statement for a salesperson to use?
a. Can I help you find something?
b. How may I help you?
c. Are you looking for anything in particular?
d. Hello, welcome to our store.
e. Would you be interested in applying for our credit card? You can save 10 percent,
today!
Mobile consumers, after moving:
a. must locate new sources for food, clothing, household goods, and recreation.
b. are not an attractive market opportunity for retailers since they move every few
years.
c. tend to continue to make major purchases at their old location.
d. generally have moved outside of their current county but within their state.
e. have little impact on local retail conditions.
The most sophisticated type of learning is:
a. single-loop learning.
b. post learning.
c. final learning
d. triple-loop learning.
e. double-loop learning.
The growth patterns of communities include all of the following except:
a. initial explosive growth.
b. rapid growth.
c. continuous growth.
d. relatively stable growth.
e. decline.
A fully-developed retail marketing strategy specifies the:
a. level of financial performance sought and mix of financial statement components.
b. specific target market sought, location, the specific retail mix to be used, and the
retailer’s value proposition.
c. consumer and channel member behavior.
d. prices of goods to be sold.
e. retail mix to be used, specific target market sought, and budget available.
Which stage of the consumer shopping and purchasing model is often seen by retailers
as an opportunity to use suggestion selling to sell add-on or related purchases, and
impulse merchandise?
a. Stimulus
b. Purchase
c. Problem recognition
d. Search
e. Evaluation of alternatives
The rate of change in retailing around the world appears to be directly related to:
a. the internationalization of U.S. franchises such as McDonald’s.
b. the internationalization of Walmart.
c. the use of discount stores as a retail format.
d. the stage and speed of economic development in the countries concerned.
e. the development of warehouse clubs.
A salesperson spends 25 minutes walking amidst the customers, looking for an
interested person to engage in an approach. These 25 minutes are considered to be part
of the salesperson’s:
a. closing time.
b. idle time.
c. nonselling time.
d. productive time.
e. selling time.
The two primary determinants of return on assets that are utilized in single-loop
learning are:
a. inventory productivity and labor productivity.
b. target market and customer satisfaction.
c. actual results and planned results.
d. co-creation and co-production.
e. net profit margin and asset turnover.
Which of the following is an advantage of freestanding retailers?
a. Lack of direct competition
b. Nearness to population
c. Cooperative planning and sharing of costs
d. Heavy traffic resulting from the wide range of product offerings of other retailers in
the area
e. Traffic generated by anchor stores
A power center typically has an anchor ratio of:
a. 30-50%.
b. 40-60%.
c. 50-70%.
d. 75-90%.
e. 90-100%.
Success for all retailers, large and small, is generally a matter of good planning and the
implementation of the plan.
Customer satisfaction leads to repeat business and increased purchases.
Leadership and decisiveness are unfavorable retail manager traits.
The retailer’s controllable element of price can be either the cost of goods sold or the
gross margin that is added to the cost.
Today, some retailers are using the Internet to provide consumers with information aids
about their store.
You have been asked by your boss to compute the ending inventory using the retail
method. Explain the steps that you would use in calculating this.
A retailer’s goals and objectives should give precision and direction to the retailer’s
mission statement.
Discuss the components of SWOT analysis used by a retailer. What primary objection
would a retailer have for conducting a SWOT analysis?
What are the different types of store-based and nonstore-based retail locations? Provide
a real example (store name) for each different type.
Seasonal discounts are now illegal in the United States.