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Jose runs a gallery which specializes in neon art with an emphasis on vacation icons
like flamingos, dolphins, and palm trees. Since demand was high and supplies were
low, he decided to buy an old warehouse and then hire craftspeople to work there in
order to produce the art. He would provide them with all of the supplies they needed,
and he would be their only customer. Jose engaged in:
A. horizontal integration
B. market expansion
C. co-operative buying
D. market penetration
E. vertical integration
Answer:
Which of the following is an opportunity for retailers to develop a sustainable
competitive advantage?
A. Reduced prices
B. Deeper assortment
C. Longer hours of operation
D. Good customer service
E. Coupons
Answer:
Which of the following is an advantage of freestanding locations?
A. Unlimited trade area
B. High pedestrian traffic
C. Light pedestrian traffic
D. Less expensive compared to shopping centers
E. High vehicular traffic
Answer:
Ruth's Fashions is a popular boutique in Atlanta. It has a Web site that answers
customer queries and also provides information on new arrivals and discounts.
Customers also receive product information on their mobile phones. From the given
example, it can be seen that Ruth's Fashions is involved in _____, which is a
value-creating activity.
A. breaking bulk
B. holding inventory
C. providing assortments
D. exclusive distribution
E. providing services
Answer:
Why are vendors in a better position to manage a category than a smaller retailer?
A. Retailers manage brands more often than categories.
B. Retailers managing merchandise groups have little experience with categories.
C. Vendors have superior information through their focus on a specific category.
D. Vendors work to manage higher sales within their companies.
E. Retailers are traditionally poor category managers.
Answer:
Which of the following statements is true of the challenges faced by organized retailing
in Russia?
A. Retailers cannot rely on domestic products as their quality is low.
B. Government impedes foreign investment in retailing.
C. Managerial talent is becoming more difficult to find and retain.
D. Stringent regulations on profit margins discourage capitalism.
E. Unstable political scenario increases the risk associated with direct investments.
Answer:
The Watertower Place on Michigan Avenue in Chicago has many high-quality
boutiques, amongst office space and residential condominiums. It is an example of a(n):
A. lifestyle center.
B. mixed-use development.
C. outlet center.
D. off-price center.
E. price-oriented center.
Answer:
A way to achieve customer alchemy is through _____, which involves offering and
selling more products and services to existing customers and increasing the retailer's
share of wallet with these customers.
A. 1-to-1 retailing
B. add-on selling
C. personalizing
D. data mining
E. cross retailing
Answer:
A customer returned a textbook to a bookstore because she decided to drop the class
after a few weeks. The sales clerk refunded the customer's money immediately because
the store had a "no questions asked" refund policy. Which of the following service gaps
was reduced because of the clearly defined guideline?
A. Procurement gap
B. Knowledge gap
C. Communication gap
D. Research gap
E. Delivery gap
Answer:
Marie is a single mother of two adolescent children. In order for her to be home when
her children arrive from school, her supervisor allowed her to start her day an hour
earlier. This is an example of:
A. flextime.
B. job sharing.
C. cross training.
D. job flexibility.
E. job scaling.
Answer:
As the owner of Knights, a store specializing in men's suits, Isabella can use a retail
strategy statement to identify all of the following EXCEPT:
A. the advertising campaign developed to sell last season's merchandise.
B. the store's target market.
C. how the store will build a competitive advantage over other similar retailers.
D. what services the store will offer its customers.
E. what types of suits the store will stock.
Answer:
Retailers can minimize the time taken to get a problem resolved and increase customer
satisfaction by:
A. assuming what the customer is complaining about or what solution the customer is
seeking.
B. minimizing the personal attention given to the customer and resolving the problem
abruptly.
C. empowering the first contact employee to act quickly to solve the problem.
D. referring the customer to several different employees to get the problem resolved.
Answer:
The Bookstore Caf is a small restaurant located in a downtown business district. It is
opened for breakfast and lunch and serves simple yet nutritious meals as well as books
from the New York Times bestseller list. How would you categorize the book inventory,
cooking equipment, tables, chairs, and the register?
A. As retained earnings
B. As assets
C. As current liabilities
D. As investor capital
E. As owners' equity
Answer:
Tony's company puts a huge emphasis on taking care of the associates. The store
manager knows all employees by name and takes the time to talk with them about their
lives. The human resources policies allow for liberal time off. Department supervisors
support all breaks and work to vary schedules to fit the associates' needs. This focus on
keeping the associates happy and supported can be considered part of the _____.
A. corporate procedure
B. corporate structure
C. organizational culture
D. pricing policy
E. human resource planning
Answer:
Jenny runs a produce stand in an inner-city neighborhood. With the recent layoffs, she
has become popular because she gives her day-old produce to the local charity. Which
of the following benefits does Jenny gain by donating produce to the local charity?
A. It requires extra record keeping and transportation costs.
B. It offers her strong public relations benefits.
C. She needs to allocate separate space for her clearance merchandise.
D. She can recover a small percentage of the merchandise's cost.
E. The keystone price can be deducted from her income.
Answer:
Connor knew a popular celebrity was planning a shopping spree in his store that day
and needed a personal shopper to accompany her. Normally, Connor plays this role, but
he trusted a reliable store associate to manage the visit. Connor would be available in
the store should there be a problem, but the exciting opportunity was to be handled by
the associate. Which of the following terms best describes Connor?
A. Persuasive leader
B. Autocratic leader
C. Democratic leader
D. Transformational leader
E. Chaotic leader
Answer:
Garden rakes, lawn mowers, and sunscreen would be considered part of a(n) _____
category.
A. expected merchandise
B. sample merchandise
C. staple merchandise
D. seasonal merchandise
E. fashion merchandise
Answer:
A _____ involves using the retailer's existing retail format in new market segments.
A. market expansion growth opportunity
B. market penetration growth opportunity
C. diversification growth opportunity
D. wholesale format development growth opportunity
E. retail format growth opportunity
Answer:
A(n) _____ is one in which the merchandise, selection, presentation, pricing, or other
unique factors attract customers even if it is in an inconvenient location.
A. demand-oriented service-provider
B. ultimate merchandiser
C. destination store
D. ultimate provider
E. supply-oriented service-provider
Answer:
Which of the following steps is typically the previous step before establishing specific
objectives and allocating resources in the strategic retail planning process?
A. Identifying strategic opportunities
B. Developing a retail mix to implement strategy
C. Evaluating performance and making adjustments
D. Defining the business mission
E. Evaluating strategic alternatives
Answer:
Steve buys men's dress shirts for Martin's, a clothing retailer. At a recent trade show, he
took the opportunity to see a few new vendors. During one meeting, a vendor proposed
a ticket to a coveted college football game. Steve graciously declined because he was
concerned he would be engaging in _____.
A. commercial bribery
B. free-riding
C. greenwashing
D. an exclusive dealing
E. a tying contract
Answer:
The day begins in each Wal-Mart store with the manager leading the famous Wal-Mart
cheer. The cheer is a fun and energetic way to remind employees that the customer is
always number one. For years, it has been the one way that the company has shared its
enthusiasm and can be considered part of the _____.
A. organization structure
B. corporate structure
C. organization culture
D. customer loyalty
E. sales promotion policy
Answer:
A retailer wants to announce up-to-date and fast changing information to excite
customers. Which of the following platforms will best suit the retailer's needs?
A. Facemash
B. Youtube
C. Linkedin
D. Facebook
E. Twitter
Answer:
Reference groups can influence buying decisions by:
A. encouraging impulse purchasing.
B. entering into a customer's consideration set.
C. focusing on a specific customer.
D. enhancing a consumer's image.
E. promoting lavish spending.
Answer:
A(n) _____ forms the foundation for all CRM activities.
A. frequent purchaser program
B. loyalty program
C. 1-to-1 retailing program
D. RFM analysis
E. customer database
Answer:
The _____ method for evaluating vendors uses a weighted-average score for each
vendor.
A. sell-through analysis
B. GMROI
C. ABC analysis
D. inventory turnover analysis
E. multiattribute analysis
Answer:
Which of the following is a drawback of the franchise ownership?
A. The franchisee lacks any kind of off- or onsite training from the franchisor.
B. The franchisor lacks any benefit from the success of his or her franchisee.
C. The franchisee must adhere to the franchisor's rules and operating guidelines.
D. The franchisee must join a single-store retailer to become independent of the
franchisor.
E. The franchisor must incur the capital costs like purchase and modification of the
retail space.
Answer:
(p.278-279) Which of the following types of retailers is most likely to benefit from the
use of direct store delivery?
A. A big-box electronics retailer
B. A supermarket
C. A big-box discount store
D. A large department store
E. A mall specialty store
Answer:
Which of the following is an advantage of enclosed shopping malls?
A. They have a large trade area.
B. Mall occupancy costs are cheap.
C. Less competition within the shopping center
D. Low pedestrian traffic
E. Low vehicular traffic
Answer:
When customers have some prior experience with the product and the risk is moderate,
like the purchase of a new frying pan, they engage in:
A. extended problem solving.
B. cross-shopping.
C. contemplation.
D. habitual decision making.
E. limited problem solving.
Answer:
When pricing products, retailers must:
A. choose a pricing policy considering the company's overall strategy.
B. observe the competition to offer the same price by price fixing.
C. reducestockouts by keeping prices higher than the competition.
D. risk supply chain mishaps by keeping process low.
E. price consistently throughout the chain.
Answer:
_____ is the practice of pricing certain items lower than normal to increase customers'
traffic flow or boost sales of complementary products.
A. Stimulus pricing
B. Leader pricing
C. Follow-up pricing
D. Price lining
E. Odd pricing
Answer:
Grid store layouts:
A. encourage impulse purchasing.
B. are cost-efficient.
C. are also called loop layouts.
D. are one of the most aesthetically pleasing designs.
E. are used by specialty stores.
Answer:
Even though Miller loves bacon, he is worried about his cholesterol. He is also
concerned that eating bacon may impact his cholesterol levels. Before deciding to buy
the low fat Oscar-Meyer Bacon, he read the label information on all the various brands
of bacon in the meat counter. Therefore, Miller is engaged in _____, a purchase
decision process.
A. complex decision making
B. extended problem solving
C. habitual decision making
D. limited problem solving
E. composite segmentation
Answer:
How can a retailer use the market penetration opportunity to foster growth?
Answer:
What are the sources of information for retailers to develop forecasts for fashion
merchandise categories?
Answer:
Explain briefly the ABC analysis method for analyzing merchandise management
performance.
Answer:
Name five approaches for retailers to develop a sustainable competitive advantage.
Answer:
Differentiate between pack verification and ship verification.
Answer:
What are the advantages and disadvantages of a grid layout?
Answer:
What are the advantages and disadvantages of strip shopping centers?
Answer:
List some technologies that will be a part of a future retail store.
Answer:
What is m-commerce and how is it different from e-commerce?
Answer:
Explain how pricing presents a challenge to multichannel retailers.
Answer:
Explain the importance of breaking bulk.
Answer:
Compare and contrast the push and pull supply chain methods.
Answer:
What are some of the costs associated with sourcing merchandise globally?
Answer:
How can retailers reduce the knowledge gap?
Answer:
List the key opportunities for success in global retailing.
Answer:
Explain the perceived risks involved in Internet shopping.
Answer:
What is market basket analysis, and when do retailers utilize it?
Answer:
Define engagement.
Answer:
What are the four criteria used for evaluating retail market segments?
Answer:
