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Moe's Restaurant recently advertised that it offered unlimited pasta and burritos for $15
on Friday nights. However, when customers tried to avail the offer, they were told that
enrolling for a membership was mandatory for the offer. The membership fee turned out
to be $10. The membership condition was not mentioned in Moe's advertisement.
Which form of service gap can be seen in the given example?
A. Market gap
B. Communications gap
C. Knowledge gap
D. Delivery gap
E. Research gap
Answer:
Which of the following is typically the first step in the employee management process?
A. Recruiting employees
B. Training employees
C. Motivating employees
D. Evaluating employees
E. Socializing employees
Answer:
If Mohammed wanted to examine the assets and liabilities of the Silver Exchange Coin
Shop for the end of the year, he should look at its _____.
A. balance sheet
B. financial leverage statements
C. income statement
D. profitability statement
E. strategic profit model
Answer:
What type of store is TJMaxx considered to be?
A. Off-price retailer
B. Department store
C. Full-line discount store
D. Extreme-value retailer
E. Specialty retailer
Answer:
With respect to retailing, which of the following best defines assortment of
merchandise?
A. Each different item of merchandise offered by a retailer
B. The number of different items offered in a merchandise category
C. The number of merchandise categories a retailer offers
D. Merchandise with minor mistakes in construction
E. End-of-season merchandise that will not be used in following seasons
Answer:
When identifying national brands, vendors use a(n) _____ associated with their
company.
A. premium brand
B. copycat brand
C. umbrella brand
D. exclusive brand
E. subbrand
Answer:
When Terry fed her dog, she noticed that only one can of Alpo Beef Chunk Dinner
remained. Since it was the only kind her aging dog ate, she stopped at the supermarket
and bought a case of Alpo Beef Chunk Dinner dog food. What kind of purchase
decision-making process did Terry use to replenish her stock of canned dog food?
A. Attribution
B. Extended problem solving
C. Habitual decision making
D. Limited problem solving
E. Consideration set
Answer:
Randolph is the divisional merchandise manager for home products for Daisy's, a
supermarket. At a recent trade show, he noticed small kitchen appliances being shown
in retro colors like pistachio, eggplant, and cotton candy. Knowing the kitchen designs
were moving in this direction, he decided to discuss it with his senior buyers to see if
these retro colors would suit the Walmart market. Randolph is in the _____ phase of
building strategic relationships.
A. awareness
B. consideration
C. exploration
D. expansion
E. commitment
Answer:
What type of a retail store is Walgreens considered to be?
A. Full-line discount store
B. Drugstore
C. Department store
D. Convenience store
E. Supercenter
Answer:
Which of the following is not a factor affecting the size of the trade area?
A. Natural and physical barriers
B. Competition
C. Assortment offered
D. Accessibility
E. Type of lease
Answer:
In terms of trade areas, the owner of Bubba's Bar and Grille defines his _____ as the
geographic area in which 70% of his customers live.
A. primary trading area
B. fundamental market
C. geographic market
D. secondary trading area
E. tertiary trading area
Answer:
Which of the following statements is a disadvantage of franchising?
A. The retailer bears all the loss.
B. Heavy taxes are levied on the retailer.
C. Local laws favor the franchise.
D. The potential profit is reduced.
E. This is the most expensive method of entering a new market.
Answer:
Which of the following is an example of an intrinsic reward that might be received by a
social worker?
A. A promotion as manager
B. A $50 bonus
C. A gift from the manager
D. A commission for generating donations
E. A feeling of satisfaction
Answer:
Which of the following is true of scale economies?
A. Scale economies are volume advantages due to a retailers cost.
B. Scale economies are volume advantages due to a retailer's size.
C. Scale economies are cost advantages due to a retailer's size.
D. Scale economies are size advantages due to a retailer's cost.
E. Scale economies are size advantages due to a retailer's volume.
Answer:
Which of the following statements is true of a dispatcher's role?
A. Dispatchers are responsible for packaging and quality control.
B. Dispatchers allocate warehouse space to merchants.
C. Dispatchers create pick tickets.
D. Dispatchers make pricing and identification labels and place them on merchandise.
E. Dispatchers coordinate deliveries to the distribution centers.
Answer:
Since it set up a free daycare center for its shoppers, Ingrid has developed great _____
for the Raleigh County Kroger store. She wouldn't consider going to another store and
having to contend with her 2-year old, while she is trying to decide what to buy.
A. store awareness
B. consumer attachment
C. retailer loyalty
D. brand recognition
E. brand awareness
Answer:
Internet retailers offer _____, where customers can click a button at any time and have
an instant messaging e-mail or voice conversation with a customer service
representative.
A. live chats
B. cookies
C. showrooming
D. contact scraping
E. intranet portals
Answer:
_____, also known as stocklifts or lift-outs, are activities engaged in by vendors with
retailers to get their products into retail stores.
A. Charge backs
B. Buybacks
C. Greenwashing
D. Co-op advertising
E. Reverse auctions
Answer:
Customer loyalty means:
A. customers are committed to purchasing from the retailer and will seldom shop at
competing stores.
B. customers have a high frequency of purchasing merchandise from the retailer.
C. customers have most recently shopped and purchased from the retailer.
D. customers have the highest amount of their purchases at one retailer and will be
loyal to that retailer.
E. customers have positive emotions about a retailer and will be loyal to that retailer.
Answer:
Which of the following statements is NOT true of markdowns?
A. Markdowns are part of the cost of doing business, and thus buyers plan for them.
B. A buyer's objective is to minimize markdowns.
C. Retailers have a set of arbitrary rules for taking markdowns.
D. Buyers employ markdowns to promote merchandise and increase sales.
E. Markdowns can increase customer traffic flow.
Answer:
When Nick is figuring the current assets for his nail salon, he should be certain to
include _____ in his calculations.
A. the cash in the drawer
B. accrued liabilities
C. fixed assets
D. notes receivable
E. retained earnings
Answer:
As Leah drove down Fairfax Road, she noticed a group of adjacent stores. In the group,
she saw a hair salon, a pizzeria, a supermarket, an optometrist, and a grocery store. All
the stores had entrances into a parking lot, which was landscaped with trees and
flowers. What type of shopping center is this?
A. Mixed-use development center
B. Lifestyle center
C. Outlet center
D. Neighborhood and community shopping center
E. Theme/festival center
Answer:
A(n) _____ identifies the performance of individual SKUs in the assortment plan.
A. product rating system
B. sell-through analysis
C. inventory turnover ranking
D. GMROI
E. ABC analysis
Answer:
Store design is a component of the:
A. pricing mix.
B. product mix.
C. wholesale mix.
D. organizational mix.
E. retail mix.
Answer:
A store that is easy for potential customers to see has high _____.
A. compatibility
B. accessibility
C. store congestion
D. cumulative attraction
E. visibility
Answer:
Many products in a supermarket can be found in more than one place throughout the
stores. What type of retail analytics technique is used to decide where to place products
in a store?
A. Supermarket analysis
B. Market basket analysis
C. Location analysis
D. Shopping cart analysis
E. Merchandising analysis
Answer:
Which of the following steps follows the recognition of a need?
A. Evaluation of alternatives
B. Information search
C. Composite segmentation
D. Postpurchase evaluation
E. Evaluation of consideration sets
Answer:
What is an advantage of selling private-label brands for a national retailer?
A. There is less steps and supply chain resources needed to develop private-label
product.
B. The retailer saves costs as it does not need to market private-label products.
C. There is less risk involved with selling private-label brands.
D. Private-label brands have more clout than national brands.
E. Customers can't compare prices for private-label products because of their
exclusivity.
Answer:
Robyn, a human resources manager for Kohl's, was thrilled to have recently hired a new
department manager for her store. Of all of the important work involved with training
the new manager and getting her started on the right foot, what would be the best way
to start the process?
A. Evaluate her past performance to be able to determine her current level of training.
B. Set up her payroll direct deposits.
C. Introduce her to the retailer's philosophies and its policies.
D. Give her the management responsibilities and coach her throughout her training
process.
E. Gather her personal information for her investment and retirement purposes.
Answer:
When consumers explicitly agree to share personal information, the agreement is
referred to as _____.
A. participatory knowledge
B. opt in
C. the 80-20 rule
D. a disclosure agreement
E. opt out
Answer:
Which of the following statements on the location of departments within retail
department and discount stores is TRUE?
A. Most customers are drawn into the center of a store by the use of a free-form design.
B. In a multilevel store, a space's value increases the farther it is from the entry-level
floor.
C. Impulse products are mostly located at the back of the store.
D. Because many customers turn left when entering a store, the left side is especially
desirable floor space.
E. The best locations on any floor are those that are closest to the store's entrances,
main aisles, escalators, and elevators.
Answer:
Which of the following statements is not true in describing adjacent tenants?
A. Complementary, adjacent retailers have the potential to build traffic.
B. Competing adjacent retailers have the potential to build traffic.
C. Complementary retailers target different market segments and have a similar
merchandise offering.
D. The principle of cumulative attraction states a cluster of similar and complementary
retailing activities have greater drawing power than isolated stores.
Answer:
The _____ uses past sales and communication activities to determine the present
communication budget.
A. percentage-of-sales method
B. rule-of-thumb method
C. gross margin percent
D. percentage-of-profit
E. break even method
Answer:
_____ are the principles governing the behavior of individuals and companies that
establish appropriate behavior and indicate what is right and wrong.
A. Ethics
B. Acts
C. Training guidelines
D. Company traditions
E. Legislations
Answer:
