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_____ is the actual sales realized for the merchandise minus its costs of the
merchandise sold.
A. Total profit
B. Net profit margin
C. Fixed price
D. Maintained markup
E. Initial mark-up
Answer:
Which of the following retail stores is most likely to have a racetrack layout?
A. Star Tax Service
B. Essential supermarket
C. Ted's department store
D. Claire's Boutique
E. Linda's Beauty Salon
Answer:
"Are you prepared to work as a team when unloading deliveries?" Which of the
following is a reason this question is not appropriate?
A. It has nothing to do with the job.
B. It is a leading question.
C. It is a question with multiple parts.
D. It is an illegal question.
E. It is an unethical question.
Answer:
Michael, an actor, plays the protagonist in a sitcom. As per his contractual obligations,
he is required to be seen drinking Fizzy Cola, a brand of soda pop, at least once in every
episode. Which of the following terms best reflects this situation?
A. Product placement
B. Sample
C. Rebate
D. Public relations
E. Personal selling
Answer:
Which of the following statements is true of the challenges faced by organized retailing
in China?
A. Government impedes foreign investment in retailing.
B. Stringent regulations on profit margins discourage capitalism.
C. Unstable political scenario increases the risk associated with direct investments.
D. Managerial talent is becoming more difficult to find and retain.
E. Retailers cannot rely on domestic products as their quality is low.
Answer:
Peter visits a local supermarket to buy groceries. While shopping, a sales executive
approached him and enquires if he would be willing to try out a new brand of cookies.
Which of the following terms best reflects the supermarket's strategy?
A. Special event
B. Premium
C. Point-of-purchase display
D. Sample
E. Rebate
Answer:
Many department stores have advisory teen boards to help the retailer understand the
fashions and fads of teens. This teen board acts as a(n) _____ for other teens to emulate.
A. consideration set
B. attribute mix
C. peer group
D. reference group
E. subculture
Answer:
Locations in a shopping center affect both sales and occupancy costs. Which of the
following statements is not true in describing the relationships?
A. The more expensive locations are closest to the supermarket in a strip shopping
center.
B. Shops, like a flower shop, which attract impulse buyers, should be close to the
supermarket in a strip shopping center.
C. A destination store, like a shoe repair store, should be located close to supermarket in
a strip shopping center.
D. Stores that cater to consumers engaging in comparison shopping are benefited from
being located in more expensive locations near the department store anchors.
E. A retailer such as Foot Locker need not be in the most expensive location because
customers are in the market for this type of product before they even go shopping.
Answer:
Alvo's LLC, a producer of candy, has decided to expand its operations geographically.
Which of the following strategies should Alvo's use to achieve its objective?
A. Retail format growth opportunity
B. Market penetration growth opportunity
C. Diversification growth opportunity
D. Market expansion growth opportunity
E. Wholesale format development growth opportunity
Answer:
Krueger Burgers LLC, a chain of restaurants, intends to change its pricing policy and
promotional mix to cater to a new market segment. Which of the following growth
strategies will best suit Kruger Burgers?
A. Market penetration growth opportunity
B. Market expansion growth opportunity
C. Retail format growth opportunity
D. Diversification growth opportunity
E. Wholesale format growth opportunity
Answer:
Which of the following statements about full-line discount stores is true?
A. They carry only private-label merchandise.
B. They have a narrow breadth of merchandise.
C. They typically carry more brands and sizes in each category than department stores.
D. They have inconsistent assortments.
E. They confront intense competition from category specialists.
Answer:
Which of the following is not a benefit of using RFID over traditional bar codes?
A. Reduced inventory turnover.
B. RFID updates the data stored.
C. RFID holds more data stored on the device.
D. One benefit of item-level RFID is to reduce theft.
E. The data on the devices can be acquired without a visual line of sight.
Answer:
Stacy's is a popular convenience store. It notices that most of its customers visit the
store during the week to shop for products such as milk and fruits. Therefore, it
maintains sufficient stock of these products. Which of the following segmentation
methods is the store using?
A. Geographic segmentation
B. Buying situation segmentation
C. Demographic segmentation
D. Psychographic segmentation
E. Personality segmentation
Answer:
Which of the following is most likely to be a disadvantage for a retailer in developing
customer loyalty through offering popular national brands?
A. The costs associated with offering popular national brands are very high.
B. A huge reduction in the profit margin for the retailer.
C. Other competitors can purchase and sell the same popular products.
D. Training employees to operate the new product or service involves time and effort.
E. It leads to brand cannibalization.
Answer:
A(n) _____ developed by a retailer is comparable with national brands on quality rather
than price.
A. premium brand
B. copycat brand
C. umbrella brand
D. exclusive brand
E. subbrand
Answer:
_____ is a method often used in catalog and Internet channels to determine customer
segments that a retailer should target for a promotion or send a catalog.
A. RFM analysis
B. 80-20 rule
C. Market basket analysis
D. Multidimensional segmentation
E. Data mining
Answer:
A city of 50,000 or more inhabitants, or an urbanized area of at least 50,000 inhabitants,
with adjacent communities having a high degree of economic and social integration
with the core community is called a:
A. metropolitan urban development.
B. competitive statistical area.
C. statistical demographic area.
D. metropolitan statistical area.
E. trade area.
Answer:
_____ is to provide customer service personnel and sales associates that really want to
help customers and provide prompt service.
A. Reliability
B. Assurance
C. Tangibility
D. Empathy
E. Responsiveness
Answer:
The premium option in the multiple price tiers created for store brands offers:
A. a reduced risk of uncertain sales.
B. retailers a large number of alternatives for getting rid of excess inventory.
C. consumers a substantial saving without compromising on quality.
D. consumers quality that is comparable to that of national brands.
E. consumers a higher quality than national brands at a higher price.
Answer:
Forester LLC, a jewelry store, has developed a sustainable competitive advantage.
Which of the following characteristics of Forester is most likely to be the reason for this
advantage?
A. Repeat purchases from a vendor due to limited alternatives
B. Knowledgeable and helpful salespeople
C. Automated warehouses
D. More merchandise
E. Higher advertising budgets
Answer:
_____ is the design and implementation of a retail mix in order to create an image of
the retailer within the customer's mind relative to its competitors.
A. Retail perception
B. Positioning
C. Imaging
D. Detailing
E. Competitive feedback
Answer:
In which of the following stores would you be most likely to encounter a straight rack?
A. Fresh Ones, a florist
B. Ted's department store
C. Dream Toys
D. Dailies supermarkets
E. Jenny's Hair Salon
Answer:
Joe keystones every product's price in his skateboard store. Therefore, the initial
mark-up percent that Joe uses is:
A. 25 percent.
B. 50 percent.
C. 100 percent.
D. 10 percent.
E. 200 percent.
Answer:
A merchandise group of a retailer is managed by a _____.
A. divisional merchandise manager (DMM)
B. general merchandise manager (GMM)
C. buyer
D. category captain
E. category manager
Answer:
Which of the following is NOT a benefit of a store channel shopping experience?
A. Browsing
B. Immediate gratification
C. Risk reduction
D. Personal service
E. None of these
Answer:
Ryan needs a painkiller. He goes to the nearby drugstore, buys it, and uses it. Which of
the following benefits offered by stores can be seen in the given example?
A. Risk reduction
B. Immediate gratification
C. Personal service
D. Entertainment and Social experience
E. Browsing
Answer:
A commonly used measure of price sensitivity is _____.
A. price variation
B. price elasticity
C. price velocity
D. price adaptability
E. price adjustment
Answer:
Which of the following is NOT a benefit typically ascribed to an everyday low pricing
(EDLP) strategy?
A. Increased profit margin
B. Improved customer loyalty
C. Improved inventory management
D. Increased sale advertising
E. Stockout reduction
Answer:
_____ indicates that customers are committed to purchasing merchandise and services
from the retailer regardless of competing retailers' enticements.
A. Customer commitment
B. Customer loyalty
C. Customer satisfaction
D. Customer attitudes
E. Customer interest
Answer:
Which of the following can restrict the size and style of retail signs?
A. Neighboring retailers
B. Shopping center management
C. Manufacturers
D. Brand stewards
E. Retail managers association
Answer:
Which of the following types of needs is satisfied by shopping for designer label
merchandise?
A. Physiological needs
B. Hedonic needs
C. Functional needs
D. Utilitarian needs
E. Cultural needs
Answer:
Which of the following statements is true of frequent-shopper programs?
A. Frequent-shopper programs are inexpensive to implement and manage.
B. It is easy to make changes in CRM programs.
C. It is clear that CRM programs increase customer spending and loyalty.
D. It is hard to gain competitive advantage with CRM as programs can be duplicated.
E. The advantages of frequent-shopper programs are unlimited.
Answer:
