Store design provides _____ by offering customers an entertaining and enjoyable
shopping experience.
A. altruistic experiences
B. emotional stability
C. tonnage merchandise
D. hedonic benefits
E. utilitarian benefits
Answer:
Customer needs and preferences for consumer electronics are very similar across the
U.S. What organization form would you suggest for a national consumer electronics
retailer?
A. Mazur structure
B. Centralization
C. Decentralization
D. Organic
E. Hierarchical
Answer:
Dana is planning on renovating her kitchen. When she went into a home improvement
store, she admired the various model kitchens the store had set up. Each kitchen used a
different style and color scheme and allowed Dana to consider the possible themes she
could use. Which merchandise presentation technique is the store utilizing?
A. Store-oriented presentation
B. Vertical merchandising
C. Idea-oriented presentation
D. Tonnage merchandizing
E. Item and size presentation
Answer:
Which of the following is used by a customer when making a choice of a retailer to
patronize?
A. Conversion rate
B. Consideration set
C. Multiattribute attitude model
D. Habitual decision making
E. Lifestyle segmentation
Answer:
When stores such as Bath & Body Works, Victoria’s Secret, Express, Abercrombie&
Fitch all have store sites near each other in a shopping center, what is this an example
of?
A. Multiple risks
B. Analog approach
C. Cumulative attraction
D. Consumer spotting
E. Diminishing adjacent
Answer:
Which of the following is true of the benefits offered by Internet shopping?
A. The Internet offers a limited assortment of products.
B. Customers can get information that is useful across channels.
C. The perceived risk is lower when compared to store channels.
D. The Internet is not economically viable for retailers looking to expand their markets.
E. It has limited effectiveness in making personalized recommendations.
Answer:
_____ is the process by which a person attempts to influence others to accomplish a
common goal or task.
A. Idiosyncrasy credit
B. Multipolarity
C. Leadership
D. Post hegemony
E. Tripolarity
Answer:
What ratio would an investor use to determine the financial health and risk of
bankruptcy of a retailer?
A. Stock to sales ratio
B. Inventory turnover
C. Operating expense percent
D. Current ratio
E. Debt-to-equity ratio
Answer:
What are the rules that apply to activities involving computer and communication
resources that belong to an organization?
A. Security policy
B. Investigation policy
C. Corporate security
D. Policing
E. Corporate policy
Answer:
Why are category specialists sometimes called category killers?
A. They are often located close to full-line discount stores and discount stores which
offer a deep assortment of merchandise.
B. They are located at stand-alone sites.
C. They have a broad merchandise mix and shallow assortment.
D. They can dominate a category of merchandise making it difficult for other retailers
to compete.
E. They carry mainly technologically obsolete merchandise.
Answer:
Billie Jean’s Bridals has total assets of $350,000, current assets of $74,000, total
liabilities of $280,000, accounts receivable of $12,000, net sales of $64,000, and net
profit after taxes of $23,000. Calculate the retailer’s net profit percentage.
A. 18.75 percent
B. 20 percent
C. 25 percent
D. 31.1 percent
E. 35.9 percent
Answer:
Based on the following customer purchase data, which customer would have a higher
lifetime value to the retailer?
A. Marcia
B. Jan
C. Cindy
D. Alice
Answer:
Some retailers liquidate end-of-season merchandise to retailers like T.J. Maxx, who in
return sell it at a deep discount. What is the benefit to the retailer who liquidates
merchandise using this strategy?
A. The retailer is able to replace the merchandise with other markdowns.
B. It helps retailers recoup a percentage of the merchandise cost.
C. It is a profitable way for retailers to get rid of undesirable merchandise.
D. The retailer can consolidate the merchandise.
E. It lowers the reputation of the company who purchases the liquidated merchandise.
Answer:
When inventory levels, inventory investment, and total assets are low, _____.
A. asset and inventory turnovers are low
B. asset turnover is high but inventory turnover is low
C. asset and inventory turnovers are high
D. asset turnover is low but inventory turnover is high
E. asset and inventory turnover cannot be predicted
Answer:
Violations of human rights are avoided by _____.
A. only sourcing products in third-world countries
B. only sourcing products from Asia
C. enforcing core labor practices
D. having a collaborative system
E. having a willingness to pay more for the products
Answer:
Which of the following statements best describes a customer lifetime value (CLV)?
A. CLV is the value placed upon a retailer by a consumer.
B. CLV is a numerical value of how much a “best customer” shops.
C. CLV is what a customer contributes to a retailer’s profits over his or her entire
relationship with the retailer.
D. CLV is an assessment of how many valued customers shop with a retailer.
E. CLV is what retailers use to rate the value of guaranteed merchandise.
Answer:
A major value-providing activity performed by retailers is _____, so that products will
be available when consumers want them.
A. breaking bulk
B. holding inventory
C. scrambled merchandising
D. backward integration
E. providing assortments
Answer:
When Amir opened his seafood market in Alabama, he was amazed at the number of
customers who asked him to clean and prepare the fresh lobster, shrimp, and crawfish
they had just purchased. When setting up his store, he had not set aside a place for
performing this service. Therefore, a _____ resulted which could have been overcome
by Amir through customer research.
A. brand gap
B. knowledge gap
C. delivery gap
D. standards gap
E. communication gap
Answer:
Which of the following best describes variety?
A. Product availability
B. Inventory that results from a replenishment process
C. The percentage of demand for a particular SKU that is satisfied
D. The number of SKUs in a store
E. The number of different merchandising subcategories within a store
Answer:
_____ describes the voluntary actions taken by a company to address the ethical, social,
and environmental impacts of its business operations and the concerns of its
stakeholders.
A. Forward integration
B. Corporate social responsibility
C. Integrity management
D. Customer engagement
E. Ethical behavior
Answer:
On the first day of his new job, Mackey learned the company policies, basic selling
skills, and stockroom procedures with the use of videos, audio-visual presentations, and
manuals. What type of training is Mackey receiving in this scenario?
A. Blended approach
B. Socialization training
C. Structured training program
D. On-the-job training
E. Etiquette training
Answer:
The Chinese distribution system:
A. has a combination of large stores and large firms resulting in an efficient distribution
system.
B. is characterized by many small and medium-sized firms.
C. has the most number of large retailers operating their own warehouses.
D. is characterized by a high retail density.
Answer:
Which of the following terms best describes the type of data analysis that focuses on the
composition of products purchased by a customer during a single shopping trip?
A. Allotment analysis
B. Market basket analysis
C. Location analysis
D. Shopping cart analysis
E. Merchandising analysis
Answer:
The maintenance of common facilities, security, advertising, and special events to
attract consumers are handled by the shopping center management and are covered
under _____ costs.
A. common area maintenance
B. community coverage
C. location revival
D. uniform code
E. development preservation
Answer:
Which of the following is a measure of retailers’ success at converting positive
evaluations into purchases?
A. The number of customers at the retailers’ stores
B. The number of visits to the store’s website
C. The number of catalogs on the website
D. The time spent at the retailers’ stores
E. The number of virtual abandoned carts on the store’s website
Answer:
The imminent approach of Halloween pushes millions of homeowners to go out and
purchase candy corn. Halloween stimulates a(n) _____ which forms a part of the
buying process.
A. choice of alternatives
B. need recognition
C. information search
D. postpurchase satisfaction
E. evaluation of consideration sets
Answer:
Melanie’s Bead Shoppe LLC has total assets of $45,000, accounts receivable of $2,000,
accounts payable of $3,100, and inventory valued at $20,000. Last year, her net sales
were $29,000, and her operating profit margin equaled $14,000. What is her return on
assets?
A. 31.1 percent
B. 12.5 percent
C. 7.0 percent
D. 22.0 percent
E. 48.3 percent
Answer:
Which of the following items has the most price elasticity?
A. Fast-food
B. Branded luxury goods
C. Prescription medication
D. Movie tickets
E. Gasoline
Answer:
Customers at Chapter One Bookstore complained about how long they had to wait
while the sales clerk manually checked the books to see which ones were available in
the store’s inventory. The owner, therefore, decided to install a computer and database
management program to manage the store’s inventory. Implementing customers’
feedback and using technology reduced the store’s _____.
A. communication gap
B. standards gap
C. research gap
D. brand gap
E. knowledge gap
Answer:
_____ is the increased expansion of residential and shopping center development in
suburban and rural areas outside of their respective urban centers.
A. Rural sprawl
B. Affluenza
C. Urban sprawl
D. Rural flight
E. Microdistrict
Answer:
What are the basic shopping goals of a customer that depend on a store’s environment?
A. Task completion and recreation
B. Sale shopping and bargain hunting
C. Customer satisfaction and customer service
D. Bulk purchasing and bulk breaking
E. Entertainment and exercise
Answer:
The outer walls of a supermarket that stocks fresh-merchandise such as dairy, bakery,
meat, produce, etc. is referred to as the _____.
A. power perimeter
B. convenience rack
C. closeouts
D. irregulars
E. supercenters
Answer:
Which of the following statements about receiving, checking, marking, and ticketing is
true?
A. Only receiving and checking involve UPC labels.
B. It is more efficient and less costly to ticket merchandise at the store level.
C. It is more efficient for a retailer to perform ticketing and marking at a DC than in its
stores.
D. To perform the checking process correctly, every carton must be opened and its
merchandise examined.
E. The checking process is performed after the merchandise has been ticketed and
marked.
Answer: