With _____, two employees are voluntarily responsible for a job that was previously
held by one person.
A. cross training
B. job sharing
C. flextime
D. job rotation
E. job scaling
Answer:
The owner of a jewelry retail chain estimated advertising at $4,000 for the year and
estimated the downtown store location’s market share at 35 percent. By using the
competitive parity method, what is the jewelry downtown store location’s
communication budget?
A. $6,600
B. $5,400
C. $600
D. $2,600
E. $1,400
Answer:
Which of the following would be the best example of an input measure?
A. Inventory
B. Gross margin
C. Net profits
D. Return on assets
E. Sales revenue
Answer:
Which of the following services can customers expect to find in department stores,
specialty stores, and full-line discount stores?
A. Acceptance of credit cards
B. Alteration of merchandise
C. Extended store hours
D. Personal shoppers
E. All of these
Answer:
A performance measure which assesses a buyer’s contribution to ROA is called the
_____.
A. cost plus pricing
B. gross margin
C. gross margin return on investment
D. net profit
E. break-even point
Answer:
Retailers use _____ to determine the communication budget by forecasting sales during
the budget period and then applying a predetermined percentage to set the budget.
A. percentage-of-profit
B. competitive parity method
C. marginal analysis method
D. percentage-of-sales method
E. affordable budgeting method
Answer:
(p.292-293) Which of the following statements does NOT describes the customer
relationship management process that retailers implement?
A. The process begins with the collection and analysis of data about a retailer’s
customers and the identification of its best customers.
B. CRM is an iterative process that turns customer data into customer loyalty and
repeat-purchase behavior.
C. Retailers concentrate on providing more value to their best customers using targeted
promotions.
D. Loyal customers share a personal bond with retailers.
E. All of these statements describe customer relationship management.
Answer:
The percentage of SKUs received complete on a particular order from a vendor is called
the _____.
A. product availability
B. order rate
C. fill rate
D. service level
E. delivery rate
Answer:
Alyssa needed a new stirrup for her saddle. She had to drive 30 miles to the Western
Tack store in order to make the purchase. To Alyssa, the Western Tack store is an
example of a:
A. destination store.
B. drawing store.
C. magnet store.
D. country goods store.
E. tertiary-zoned store.
Answer:
A(n) _____ occurs when a stock keeping unit that a customer wants is not available.
A. overstock
B. B-stock
C. obsolescence
D. excess supply
E. stockout
Answer:
Which of the following types of leaders gets people to transcend their personal needs
for the sake of the group or the organization?
A. Transformational leaders
B. Democratic leaders
C. Autocratic leaders
D. Chaotic leaders
E. Persuasive leaders
Answer:
Bright Automotive Inc. does not have employees below the age of 16 since the law
prohibits it. Therefore, Bright Automotive is in the _____ stage of incorporating
corporate social responsibility.
A. initial
B. second
C. tertiary
D. fourth
E. acquisition
Answer:
_____ are customers who go from one store to another, buying only items that are on
special.
A. Innovators
B. Laggards
C. Cherry pickers
D. Whistleblowers
E. Early adapters
Answer:
_____ is also known as the acid-test ratio.
A. Current ratio
B. Payout ratio
C. Debt-to-equity ratio
D. Quick ratio
E. Debt-to-capital ratio
Answer:
Retailers can reduce showrooming by:
A. designing programs to sell merchandise to other distributors rather than end-users.
B. using a single channel to promote products.
C. offering limited assortments on their websites.
D. promoting private-label merchandise that can be purchased only from the retailer.
E. recruiting people to become distributors in their network.
Answer:
What is value?
A. It refers to inexpensive merchandise.
B. It is the relationship between what consumers have and what they want.
C. It is the relationship between desires and needs.
D. It is the relationship between what consumers receive and what they paid for it.
E. It refers to the lowest price and the lowest quality merchandise or service.
Answer:
Tony wanted to know what the net sales and the net profit after tax were last year for his
nephew’s business, The Big Guy Shop Inc. Tony should look at the store’s:
A. balance sheet.
B. financial leverage statements.
C. strategic profit model.
D. profitability statement.
E. income statement.
Answer:
Which of the following forms of direct selling has independent businesspeople serving
as master distributors and recruiting other people to become distributors in their
network?
A. Multilevel system
B. Party plan system
C. Showrooming
D. Automated retailing
E. Catalog marketing
Answer:
The retail tenants in Underground Atlanta are similar to those found in specialty centers,
except that they are all small. Their goal is to create a unique shopping environment for
customers. What type of shopping center is Underground Atlanta?
A. Power shopping center
B. Regional mall
C. Strip center
D. Theme/festival center
E. Central-business district
Answer:
_____ entails the placement of announcements and persuasive messages purchased by
retailers and other organizations that seek to inform and/or persuade members of a
particular target market or audience about their products, services, organizations, or
ideas.
A. Market research
B. Coolhunting
C. Advertising
D. Market overhang
E. Journalism
Answer:
When Whitney took over her father’s sporting goods store, she evaluated some of her
father’s vendor relationships. She found that Rodney’s Exercise Wear wasn’t particularly
profitable for the store. Although committed, his products were expensive, and he
seemed inflexible. Whitney tried to work out a more amicable relationship with him by
discussing her sales goals and new ideas for the coming year, but Rodney seemed
uninterested. Which of the following elements crucial for maintaining strategic
relationships is absent in the given example?
A. Long-term gains
B. Poor leadership
C. Fulfilled obligations
D. Open communication
E. Credible commitments
Answer:
Country Homes LLC is a store for people who collect country arts and crafts and use
them to decorate their homes. Last year, its net sales totaled $120,500. The cost value of
the items it sold was $72,300. Taxes for the year were $7,680. The only expenses that
the operation had were (1) rent for $3000, (2) salaries to the owner and one part-time
assistant for $27,000, (3) utilities at $1,200, and (4) advertising of $500. Calculate the
gross margin percentage for Country Homes.
A. 40 percent
B. 26.3 percent
C. 9.6 percent
D. 60.2 percent
E. 7.3 percent
Answer:
_____ is the segmentation scheme which is based on the principle that “birds of a
feather flock together.”
A. Benefit segmentation
B. Buying situation segmentation
C. Composite segmentation
D. Geodemographic segmentation
E. Psychographic segmentation
Answer:
Which of the following statements is true of ethical principles?
A. Ethical principles can change over time.
B. Ethics remain the same irrespective of the country or industry.
C. Most people have common views on ethical and unethical practices.
D. The personal code of ethics does not play a role in business decisions.
E. Ethical principles are often easy to determine.
Answer:
_____ is the process of locating the residences of customers for a store on a map and
displaying their positions relative to the store location.
A. Customer spotting
B. Buying power tracking
C. The analog approach
D. Customer clustering
E. Pirating
Answer:
The formula for calculating operating expenses percentage is:
A. total sales/operating expenses.
B. gross sales/operating expenses.
C. operating expenses/net sales.
D. average sales/gross sales.
E. total sales/average sales.
Answer:
Which of the following is an example of group maintenance behavior?
A. Planning the work schedule for the coming week
B. Organizing a new team for a research project
C. Motivating employees to ask for regular feedback
D. Evaluating employee performance for the last financial quarter
E. Offering help to an employee with personal problems
Answer:
Which of the following is a disadvantage of main street locations?
A. High occupancy cost
B. Heavy pedestrian traffic
C. Heavy vehicular traffic
D. Wide range of entertainment and recreational activities to choose from
E. Small overall draw
Answer:
Which of the following is classified as an asset?
A. Debts
B. Buildings
C. Accrued wages
D. Deferred revenue
E. Interest payable
Answer:
Jane, the manager of a bookstore at Warren Wilson College, hires additional employees
during the first few weeks of each semester but does not clearly define their
responsibilities. Hence, during busy times, the students end up waiting for more than
ten minutes to check out because there are not enough clerks ringing up sales. Some
students get frustrated and leave without buying. This situation indicates a _____.
A. standards gap
B. communication gap
C. brand gap
D. research gap
E. delivery gap
Answer:
The strategic profit model is useful to retailers because it:
A. is derived from the income statement.
B. uses owner’s equity as its primary criterion.
C. uses inventory turnover as its primary criterion.
D. is derived from the balance sheet from the last day of the year.
E. combines profit margin management and asset management.
Answer: