Autocratic leaders seek information and opinions from employees and base decisions
on this information.
Answer:
Rewards provided by either the employee’s manager or the firm such as compensation,
promotion, and recognition are called intrinsic rewards.
Answer:
Customer expectations are based on a customer’s knowledge and experiences.
Answer:
A reference group includes one or more people whom a person uses as a basis of
comparison for beliefs, feelings, and behaviors.
Answer:
In a graduated lease, the rent increases by a fixed amount over a specified period of
time.
Answer:
Traditionally, department stores almost exclusively offered soft goods. But now, most
department stores focus on selling both hard and soft goods.
Answer:
Apparel retailers mostly utilize gondola fixtures.
Answer:
Walmart is classified as an off-price retailer.
Answer:
Buyers need not compromise on breadth or depth of merchandise to increase product
availability.
Answer:
RFID is a technology which will be a part of the future technology to be used in
retailing.
Answer:
During a behavioral interview, the interviewer asks the candidates how they handled
actual situations they had encountered in the past.
Answer:
M-commerce is the buying and selling of goods and services through wireless handheld
devices.
Answer:
Sentiment mining is a process whereby retailers can tap into a variety of online chat
formats to collect consumer comments and then analyze these data to identify
customers’ overall attitudes and preferences for products and advertising campaigns.
Answer:
An organizational culture is the set of values, traditions, and customs of a firm that
guides employee behavior.
Answer:
Democratic leaders make all the decisions on their own and then announce them to
employees.
Answer:
Due to the intangibility of their offerings, services retailers often use tangible symbols
to inform customers about the quality of their services.
Answer:
An entry barrier is a concealed hindrance that makes it difficult for minorities and
women to be promoted beyond a certain level.
Answer:
Employee productivity is retail sales or profit multiplied by the number of employees.
Answer:
Fashion merchandise consists of items that are in continuous demand over an extended
time period.
Answer:
Shorter lead times result in a higher level of backup stock required to maintain the same
level of product availability.
Answer:
As a part of its merchandise management, the supermarket chain, Whole Foods Market
seeks out and supports local producers, and it offers private-label products.
Answer:
Procedural fairness is a customer’s perception of the benefits received compared with
his or her costs in terms of inconvenience or monetary loss.
Answer:
The most basic characteristic used to describe the different types of retailers is their
retail mix, or the elements retailers use to satisfy their customers’ needs.
Answer:
In a pull supply chain, there is less likelihood of being overstocked or out of stock
because the store requests for merchandise are based on customer demand.
Answer:
Assortment, or depth, of a merchandise category is the number of different
merchandising subcategories offered.
Answer:
Customers are satisfied when their expectations exceed the perceived service.
Answer:
The four major responsibilities of a store manager are managing employees, controlling
costs, managing merchandise presentation, and providing customer service.
Answer:
An in-depth interview is an unstructured personal interview in which the interviewer
uses extensive probing to get individual respondents to talk in detail about a subject.
Answer:
Scale economies are cost advantages due to a retailer’s size.
Answer:
Market expansion approaches include opening more stores in the target market and/or
keeping existing stores open for longer hours.
Answer:
Large retailers had distinct advantages over regional retailers prior to the availability of
modern information systems.
Answer:
On a blog, an individual blogger or a group of users regularly record their opinions and
various topical information on a web page.
Answer:
A retail market segment is a group of customers who are attracted to the same retail mix
because they have similar needs.
Answer:
When consumers are engaged in comparison shopping situations, they are primarily
concerned with minimizing their effort to get the product or service they want.
Answer:
Automated retailing occurs when a consumer goes into a store to learn about different
brands and products and then searches the Internet for the same product sold at a lower
price.
Answer:
All Essentials’ stores stock Comfort, a private-label. Comfort provides relaxed,
fashionable, and ready-to-wear clothing which are more economical than similar
clothing in other department stores. Essentials is looking at a market in which
consumers are looking for similar advantages such as cost and comfort. Therefore,
Essentials can use _____ as the scheme to segment its market.
A. geodemographic segmentation
B. composite segmentation
C. demographic segmentation
D. geographic segmentation
E. benefit segmentation
Answer:
Star Tax Services opens many offices around the country to accommodate the tax
season. The company has the ability to piece together new offices, expand existing
offices, or alter the design for a unique space in a matter of hours. Which of the
following design considerations related to controlling costs can be seen in this
example?
A. Inventory shrinkage
B. Flexibility
C. Utilitarian benefits
D. Atmospherics
E. Vertical merchandising
Answer:
Which of the following is an example of related diversification?
A. Purchasing from different vendors
B. Operating in similar locations
C. Targeting another market segment
D. Using newer medium for advertising
E. Developing a management information system
Answer:
Candace works for a national department store chain. She tailors the assortment, and
allocates women’s shoes to specific stores. She learned, in recent years, to follow
weather patterns and watch for the popularity of boots within the different regions.
What position does Candace hold in the organizational structure?
A. Sales associate
B. Merchandise manager
C. Buyer
D. Manager
E. Planner
Answer:
Which of the following is a critical asset that enables retailers to build strategic
advantages?
A. Holding inventory
B. Breaking bulk
C. Providing services
D. Scrambled merchandising
E. Supply chain organization
Answer:
Catherine had checked the price of an airline ticket in November to fly to Daytona
Beach for her spring break. She was surprised when she checked again in February that
the price had increased significantly. The airline had adjusted its prices based on the
demand. This practice is known as _____.
A. price bundling
B. yield management
C. odd pricing
D. high-low pricing
E. predatory pricing
Answer:
Anita is a store manager who wants no employee input when she is making decisions
about how the store should be operated. She prefers to make all the decisions by herself.
What kind of a manager is Anita?
A. Chaotic manager
B. Democratic manager
C. Autocratic manager
D. Persuasive manager
E. Transformational manager
Answer:
Which of the following activities is not typically performed in the merchandise
division?
A. Control of inventory levels
B. Hiring and training sales associates
C. Determination of what merchandise will be procured from vendors
D. Planning assortment and stock levels
E. Pricing of merchandise
Answer:
Which of the following is an example of a fixed cost for a bridal gown shop?
A. The services of the seamstress to fit each gown
B. The cost associated with dying the shoes to match the bridesmaids’ dresses
C. The cost associated with the layaway of variously priced gowns
D. The cost of the mannequin used to display current gowns
E. The cost associated with a generous return policy
Answer:
During the limited problem solving process, customers tend to rely on:
A. personal knowledge.
B. reference groups.
C. promotional advertisements.
D. discount offers.
E. store advocates.
Answer:
Where is a central business district typically located?
A. Downtown area
B. Rural area
C. Semi-urban area
D. Airport
E. Shopping malls
Answer:
A(n) _____ is a form of DRTV advertisement that is typically 30 to 60 minutes long
and mixes entertainment with product demonstrations.
A. sponsored film
B. documentary
C. podcast
D. widget
E. infomercial
Answer:
Which of the following is true of the forecasting approach for staple merchandise
categories?
A. Buyers need to find out what customers are going to want in the future.
B. Forecasts are typically based on extrapolating historical sales.
C. Buyers for these categories rely heavily upon forecast services.
D. Buyers for these categories conduct focus group studies to find out consumers’
opinions.
E. Buyers for these categories depend upon category sales forecasts which vendors
provide.
Answer:
When developing a retail communication program, sales goals are set when the _____.
A. objectives are established
B. budget is determined
C. budget is allocated
D. program is implemented and evaluated
Answer:
Matt often goes to a retail store to look at electronic goods. He learns about the brands
and products and searches the Internet for lower prices. This act by Matt is an example
of _____.
A. sweethearting
B. automated retailing
C. omniretailing
D. showrooming
E. channel integration
Answer:
The process where vendors ship the merchandise prepackaged to the distribution center
in the quantities required for each store and then that merchandise is shipped to stores
as soon as it is received is called _____.
A. ticketing
B. cross-docking
C. push supply
D. pull supply
E. reverse logistics
Answer:
When using the _____, the retailer simply describes the site and trade area
characteristics for its most successful stores and attempts to find a site with similar
characteristics.
A. Huff gravity model
B. regression model
C. analog model
D. location model
E. cumulative attraction model
Answer:
Which of the following is a reason for opposing big-box retailers?
A. The low returns on investments
B. Lack of choices between brands
C. Increase in the cost of products
D. The high cost of occupancy
E. It drives local retailers out of business
Answer:
Flee LLC, a chain of electronic stores, plans to grow geographically. It has tied up with
local retailers in international markets to form a new company in which ownership,
control, and profits are shared between all involved parties. Which of the following
entry strategies is being followed by Flee?
A. Acquisition
B. Merger
C. Takeover
D. Joint venture
E. Strategic alliance
Answer:
_____ identify and provide rewards to customers who patronize a retailer.
A. Retail brand communities
B. Cookies
C. Loyalty programs
D. Customer surveys
E. Store advocates
Answer:
_____ target a price-sensitive segment by offering a no-frills product at a discount
price.
A. Generic brands
B. Store brands
C. National brands
D. Family brands
E. Diverted merchandise
Answer:
With respect to retailing, variety is often referred to as the _____.
A. closeouts
B. assortment of merchandise
C. irregulars
D. breadth of merchandise
E. stock-keeping units
Answer:
Left Lanta is a small retailer in Underground Atlanta, a historical retail district in that
city. Here, the Lanta family sells items for left-handed people. Since the store is located
in a kiosk near one of the entrances to the underground, it is often the target of
shoplifters. Therefore, the store is forced to reduce the actual selling price of its
products. The factors such as theft that cause the reduction in the selling price are called
_____.
A. loss margins
B. amortized losses
C. reductions
D. markdowns
E. net losses
Answer:
Lee just signed a lease for her lunch delivery business and is now ready to become
involved in the employee management process of her business plan. What should Lee
do first?
A. Train employees.
B. Motivate employees.
C. Recruit employees.
D. Evaluate employees.
E. Socialize employees.
Answer:
Dave is a part of the strategic retail planning process in his organization. He has defined
the business mission. Which of the following steps is most likely Dave’s next stage in
the strategic planning process?
A. Conduct a situation audit.
B. Evaluate performance and make adjustments.
C. Develop a retail mix to implement strategy.
D. Establish specific objectives and allocate resources.
E. Evaluate strategic alternatives.
Answer:
Why would a small retailer be interested in a kiosk?
A. A kiosk can offer more variety than a permanent retailer.
B. Kiosks provide better prices than the competition.
C. Shoppers prefer kiosks because it offers more space to shop avoiding the butt-brush
effect.
D. They can fit into prime mall locations.
E. Kiosks are an opportunity to generate rental income in otherwise vacant space.
Answer:
Which of the following has to be taken into consideration while calculating current
ratio?
A. Long-term loans
B. Buildings
C. Short-term loans
D. Machinery
E. Human assets
Answer:
Thelma goes to collect her clothes from a dry cleaning store at 8 pm. The store
guarantees a 24-hour pick-up service in all of its advertisements. However, she is
disappointed to find that the pick-up service is available only between 11 am and 7 pm.
This is an example of a _____.
A. market gap
B. delivery gap
C. knowledge gap
D. communications gap
E. research gap
Answer:
The U.S. retail industry:
A. has the lowest concentration of large firms.
B. has the greatest retail density in the world.
C. mostly has small stores operating independently.
D. depends on a single large wholesale industry.
E. consists of a fragmented distribution system.
Answer:
On payday, June received his weekly salary plus 2% of each sale she made during the
pay period. Which of the following is this an example of?
A. Superannuation
B. 401K
C. Gratuity
D. Stock option
E. Commission
Answer:
Which of the following are the two basic types of leases?
A. The service lease and the strip lease
B. The percentage lease and the fixed-rate lease
C. The incentive lease and the parallel lease
D. The development lease and the associated lease
E. The multiplex lease and the single unit lease
Answer:
The Home Depot employees are supporters of Habitat for Humanity. Many associates
go to the building sites on weekends; they voluntarily share their knowledge, expertise,
and muscle. Volunteering is not a requirement for store associates, yet many participate
in the exercise. The spirit of volunteering is an example of The Home Depot’s:
A. corporate policy.
B. organizational culture.
C. corporate procedures.
D. brand loyalty.
E. procedural justice.
Answer:
Which of the following statements is NOT true of a department in the merchandise
classification scheme?
A. It is the second level in the merchandise classification scheme.
B. It is at a lower level than the merchandise group in the merchandise classification
scheme.
C. It is a level higher than classification in the merchandise classification scheme.
D. The DMM, who manages the department, is responsible for several merchandise
classifications.
E. It is managed by a general merchandise manager (GMM).
Answer:
Retail developers need to take into consideration legal aspects when they are evaluating
different locations. Describe the main legal considerations.
Answer:
How do retailers satisfy a customer’s hedonic needs?
Answer:
What are the major issues that a buyer discusses during a meeting with a vendor?
Answer:
What is a brand?
Answer:
What is a behavioral interview?
Answer:
What are the major value-creating activities performed by retailers?
Answer:
How can having a high backup stock adversely affect a retailer?
Answer:
Why are demand and promotional merchandise placed in the back left-hand corner of
the store?
Answer:
How have retailers incorporated Corporate Social Responsibility (CSR) into their
activities?
Answer:
Explain briefly the consumer buying process.
Answer:
What are the benefits of RFID technology over traditional bar codes?
Answer:
What is the difference between first-degree price discrimination and second-degree
price discrimination?
Answer:
Identify the three different trade area zones and indicate for each of the different
geographic area what percent of customers the store makes up from each zone.
Answer:
Why do national brands often generate lower gross margins for retailers than
private-label brands?
Answer:
Differentiate between related and unrelated diversification.
Answer:
Why is it necessary for retailers to develop and implement an integrated communication
program?
Answer:
What are customer relationship management programs?
Answer:
What is same-store sales growth and how retailers use it?
Answer:
Explain mixed-use developments (MXDs) and how they appeal to consumers, retailers,
local governments, and developers.
Answer:
What are the critical assets controlled by a store manager?
Answer: