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Luke is responsible for the strategic retail planning process in his organization. He is
currently identifying the strategic opportunities. Which of the following steps is most
likely to have been Luke's previous step before identifying the strategic opportunities?
A. Evaluating performance
B. Developing a retail mix
C. Establishing specific objectives
D. Evaluating strategic alternatives
E. Conducting a situation audit
Answer:
In a related diversification growth opportunity, _____.
A. the retailer's present target market and retail format shares nothing in common with
the new opportunity
B. the retailer's future target market and retail format shares nothing in common with a
missed opportunity
C. the retailer's past target market and retail format shares nothing in common with a
missed opportunity
D. the retailer's future target market and retail format shares something in common with
a missed opportunity
E. the retailer's present target market and retail format shares something in common
with the new opportunity
Answer:
Smith's Electronics originally priced a private-label portable DVD player at $90, and
then sold 1,500 units per week. After raising the price to $100, sales dropped to 1,000
units per week. First, determine the price elasticity, and then determine the
profit-maximizing price if the private-label portable DVD player costs $50.
A. $90
B. $85.70
C. $75
D. $70.25
E. $70
Answer:
Where would you most likely find a lifestyle center?
A. At interstate interchanges
B. In higher-income neighborhoods
C. In low-income neighborhoods
D. In small towns
E. Near discount store malls
Answer:
A retailer whose orders are generated at the store level on the basis of sales data
captured by point-of-sale terminals is said to employ a(n):
A. cost efficient logistic strategy.
B. pull supply chain.
C. influential logistic strategy.
D. cross check logistic strategy.
E. push supply chain.
Answer:
Catherine's is a chain of retail stores having merchandise assortments for women over
size 14. Women who meet this criterion form a:
A. consideration set.
B. retail market segment.
C. demographic set.
D. reference group.
E. subculture.
Answer:
Which of the following merchandise systems focuses on staying as close to out of stock
as possible?
A. Fashion merchandise management system
B. Assortment driven management system
C. Historical precedence management system
D. Staple merchandise management system
E. Allocated space management system
Answer:
The practice of charging different prices to different demographic market segments is
referred to as _____.
A. predatory pricing
B. first-degree price discrimination
C. second-degree price discrimination
D. third-degree price discrimination
E. leader pricing
Answer:
Father Christmas is a retail store in Georgia that sells a unique Santa made from fur,
wool, and tapestry. The store does not sell any other product. Therefore, the store has no
_____.
A. category
B. assortment
C. medley
D. merchandise mixtures
E. variety
Answer:
Which among the following is the largest group of national advertisers in the United
States?
A. Real estate industry
B. Retail industry
C. Consumer electronics industry
D. Health care industry
E. Automobile industry
Answer:
Which of the following statements describes a situation in which markdowns would
NOT be appropriate?
A. Markdowns would be appropriate on a pair of pillows that had been part of a display
and were showing light wear.
B. Markdowns would be an appropriate pricing strategy for winter parkas that are still
in stock in March.
C. Markdowns would be appropriate for licensed merchandise supporting a movie that
was not as popular as predicted.
D. Markdowns would be appropriate for national brand merchandise that was priced 15
percent lower in a neighboring competing store.
E. Markdowns would be appropriate for a group of t-shirts that have a higher turnover
than other t-shirts in the department.
Answer:
The _____ method assumes that communication expenses are just a cost of business
and do not promote sales and profit.
A. affordable budgeting
B. objective-and-task
C. percentage-of-sales
D. competitive parity
E. marginal analysis
Answer:
Automated retailing:
A. is most effective in high-traffic areas.
B. is based on the idea that social relationships influence buying habits.
C. uses a master distributor as lead salesperson.
D. is a recruiting tool for multilevel networks.
E. promotes products through infomercials.
Answer:
Jane visits the local supermarket to purchase caviar for a dinner party. Upon enquiry,
she finds out that caviar is sold out. Which of the following terms best describes this
situation?
A. Stockout
B. Excess supply
C. Overstock
D. B-stock
E. Obsolescence
Answer:
The _____ is the number of vehicles and pedestrians that pass by the site.
A. traffic wave
B. traffic flow
C. traffic count
D. traffic stimulator
Answer:
Which of the following statements is true of the gold segment members in the customer
pyramid?
A. Price plays a greater role in their decision making process.
B. The gold segment members place more value on customer service.
C. Their spending levels and profitability do not warrant special treatment.
D. They demand a lot of attention but buy very little from retailers.
E. This segment is composed of the customers with the top 25 percent CLVs.
Answer:
Target Field in Minneapolis, Minnesota, "Home of the Twins" baseball team venue is an
example of what type of communication method?
A. Coupons
B. Event sponsorship
C. Rebates
D. Premiums
E. Point-of-purchase displays
Answer:
Which of the following assesses the results of a retailer's investments?
A. Balance sheets
B. Input measures
C. Owners' equity
D. Output measures
E. Revenue assessments
Answer:
(p.293-294) Which of the following information does NOT form a part of the customer
database of a retailer?
A. Details of customer visits to the retailer's site
B. A complete history of the customer's transactions
C. Customer preferences such as brands and fabrics
D. Demographic data for segmentation purposes
E. Details of competitor patronization
Answer:
Alex works in the accessory department of a large regional chain of stores. Since his
supervisor _____ him, he has been able to provide even better customer service because
he doesn't have to get an okay on a personal check or get approval for an exchange on
merchandise.
A. sanctioned
B. delegated
C. appointed
D. empowered
E. functionalized
Answer:
Which of the following is an example of a fixed asset for a music store?
A. Sheet music that is played in the store
B. An assortment of music displayed in the store
C. A selection of jazz CDs owned by the store employees
D. A wide range of classical and electric guitars
E. A computer that is used to manage the store's inventory
Answer:
Which of the following prohibits vendors offering different retailers different prices and
purchase order terms for the same merchandise and quantity?
A. Tying contracts
B. Robinson-Patman Act
C. Resale price maintenance
D. Buybacks
E. Copyright infringement Act
Answer:
List the five HR management activities that build employee engagement.
Answer:
_____ are taxes collected by a government on imported merchandise.
A. Chargebacks
B. Country of origin costs
C. Slotting fees
D. Duties
E. Obligation fees
Answer:
Consumers make habitual decision making for all the following cases EXCEPT:
A. for purchases that aren't important to the consumers.
B. for merchandise they have purchased in the past.
C. when they are loyal to a store.
D. when they haven't developed brand loyalty.
Answer:
Which of the following statements about a grid store layout is NOT true?
A. The amount of merchandise on the floor with a grid layout can be significantly
greater than with other types of layouts.
B. The grid layout is suitable for customers with hedonic needs.
C. There is little wasted space with a grid layout.
D. The grid layout is very cost-efficient.
E. The grid layout satisfies utilitarian needs of customers.
Answer:
Which of the following is the best example of a service goal for a retailer that is sincere
about reducing the standards gap?
A. "Straighten and organize the merchandise when necessary."
B. "Greet all customers when they enter the selling area."
C. "Respond to e-mails as soon as possible."
D. "Display merchandise on racks within 24 hours of delivery."
E. "Respond positively to all customer complaints."
Answer:
When Mary purchased some caulk for her windows at Home Depot, the cashier asked
for her telephone number at the point-of-sale. What was the retailer doing by asking this
question?
A. The retailer was determining her level of trust in the store.
B. The retailer was identifying her preference.
C. The retailer was collecting data for the store's database.
D. The retailer was curious as to how many people from that area code shopped the
store.
E. The retailer was confirming forecasts for buyers.
Answer:
The best way for a retailer to develop a sustainable competitive advantage is to:
A. concentrate on finding the best location.
B. concentrate on having the lowest prices in town.
C. develop a good distribution system.
D. rely on multiple approaches.
E. maintain good vendor relations.
Answer:
Which of the following is an advantage of decentralization?
A. Lowest overhead costs
B. Lowest prices from suppliers
C. Opportunity to have the most talented people make decisions for the company
D. Increased efficiency with standard operating policies for stores and merchandising
E. Ability to react quickly to specific local market shifts
Answer:
A sponsored link was delivered 100 times, and 10 people clicked on it. Calculate the
click-through rate.
A. 125
B. -115
C. 600
D. 115
E. 10
Answer:
If you were to ask Roland to recommend a restaurant in Charleston, South Carolina, he
would tell you to go to Brendon's, The Paradise Hotel, or Linda's Dinner Bar. There are
obviously many restaurants in Charleston, but these form a part of Roland's:
A. attributes.
B. retail market segment.
C. targeted market.
D. consideration set.
E. reference group.
Answer:
What does the 80-20 rule mean?
A. 80% of the buying comes from 20% of the vendors.
B. 80% of the sales come from 20% markdowns.
C. 80% of the customers pay with 20% of their income.
D. 80% of the sales or profits come from 20% of the customers.
E. 80% of the merchandise is sold at 20% off.
Answer:
Kevin is a salesperson selling electronic goods. A customer complains about problems
in the music player purchased by him the previous week. He requests for a replacement.
Kevin explains the store's exchange policies and asks the customer to fill out a
complaint form. Therefore, Kevin is dealing with the customer's problems with _____.
A. service equity
B. consistent fairness
C. perceptual equity
D. distributive fairness
E. procedural fairness
Answer:
Jenson's is a large retail store in Chicago. It offers credit so that consumers can buy a
product and pay for it later. Which of the following value-creating activities is Jenson's
undertaking in the given example?
A. Exclusive dealing
B. Breaking bulk
C. Holding inventory
D. Offering assortments
E. Providing services
Answer:
