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If you had $50,000 and you wanted to invest in stocks, you have two options. Which of
the following ratios would best help you to decide on your investment?
A. Inventory turnover
B. Asset turnover
C. Return on assets
D. Gross profit margin
E. Net profit margin
Answer:
(p.296-297) Although, having information about individual customers helps retailers
provide better services to consumers, consumers are concerned about _____.
A. price promotions
B. loyalty
C. descriptive information
D. privacy
E. data mining
Answer:
_____ are tags that transmit identifying information and are attached to individual
items, shipping cartons, and containers.
A. Vendor-managed inventories
B. Data warehouses
C. Radio frequency identification devices
D. Electronic data interchanges
E. Data stores
Answer:
A _____ for retail buyers is a concentration of vendors within a specific geographic
location, perhaps even under one roof or over the Internet.
A. distribution center
B. wholesale market
C. gray market
D. black market
E. resident buying office
Answer:
(p.102-103) Veronica walks into a drugstore to buy a quick pain relief drug. In the past,
she has used Advil, an Ibuprofen product. Although there are several other brands
containing Ibuprofen, she decides to purchase Advil because it has worked for her in the
past. What kind of decision-making process is she using when choosing her pain relief?
A. Limited problem solving
B. Complex decision making
C. Extended problem solving
D. Attribution
E. Composite segmentation
Answer:
Customer needs and preferences for grocery products differ considerably across the
U.S. What would you suggest a national supermarket chain do to compete with
decentralized grocers?
A. Utilize information systems.
B. Use the Mazur structure.
C. Become decentralized.
D. Incorporate organic and natural foods.
E. Consider hierarchical stores for grocery planning.
Answer:
With respect to retailing, which of the following best defines variety?
A. Merchandise with minor mistakes in construction
B. The number of different items offered in a merchandise category
C. End-of-season merchandise that will not be used in following seasons
D. The number of merchandise categories a retailer offers
E. Each different item of merchandise offered by a retailer
Answer:
In most cases, which of the following is a reason why it is very hard to perform a
marginal analysis?
A. It causes a brain drain within the organization.
B. It is a very expensive and time consuming process.
C. It is hard to acquire accurate sales data from within the organization.
D. It is hard to acquire accurate information on communication expenditure.
E. Managers don't know the relationship between communication and sales.
Answer:
The intensity of competition is greatest among retailers when:
A. price dominates the retail mix.
B. their retail offerings are considered to be similar.
C. they resort to scrambled merchandising.
D. they focus on a narrow demographic trend.
E. they offer a limited range of products and services.
Answer:
Which of the following statements is a guideline for reducing shoplifting through store
design?
A. Place expensive and small merchandise near the entrance.
B. Do not put easily stolen merchandise near POS terminals.
C. Lock up all items that are easily stolen.
D. Keep the height to fixtures high so that employees do not invade the privacy of
customers.
E. Avoid using mirrors inside the store.
Answer:
Under the competitive parity method, the communication budget is set so that _____.
A. sales forecasts will not affect the budget
B. it resembles a fixed percentage of sales
C. surplus cannot be allocated to other categories
D. the retailer's share of the communication expenses equals its share of the market
E. retailers can exploit opportunities they confront in the market
Answer:
After developing a plan and allocating the merchandise, the next step in the
merchandise planning process involves:
A. replenishing the inventory levels.
B. planning for the following season.
C. analyzing the performance and making adjustments.
D. discussing buybacks with the vendors.
E. penetration of new markets.
Answer:
Which of the following statements is true of current ratio?
A. It evaluates the retailer's ability to pay its short-term debt obligations.
B. It evaluates the optimal profitability of the retailer.
C. It evaluates the optimal productivity of the retailer.
D. It evaluates the cost incurred by human resources against organizational profitability.
E. It evaluates the retailer's ability to pay its long-term debt obligations.
Answer:
The formula to calculate quick ratio is:
A. (long-term assets-long-term liabilities)/inventory
B. (short-term assets-long-term liabilities)/inventory
C. (long-term assets-short-term liabilities)/inventory
D. (short-term assets-inventory)/long-term liabilities
E. (short-term assets-inventory)/short-term liabilities
Answer:
A retailer has developed a promotional video for his business. Which of the following
new media platforms is best suited to host this video on the internet?
A. Facebook
B. Twitter
C. Linkedin
D. Youtube
E. Gmail
Answer:
The first step in the CRM process is _____.
A. analyzing data
B. collecting customer data
C. developing CRM programs
D. implementing programs
E. rewarding loyal customers
Answer:
A _____ is one in which a retailer introduces a new retail format directed toward a
market segment that's not currently served by the retailer.
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:
The offering of merchandise not typically associated with the store type is called:
A. scrambled merchandising.
B. intratype competition.
C. product diversification.
D. channel diversification.
E. vertical differentiation.
Answer:
Jane works at Pedro's LLC as a store manager. She is responsible for determining the
employees assigned to each area of the store during each hour. Which of the following
terms best describe Jane's role?
A. Enterprise architecture planning
B. Dirigisme scheduling
C. Spatial planning
D. Contingency planning
E. Labor scheduling
Answer:
The Home Laughlin China Company of West Virginia manufactures Fiesta China in a
variety of colors. The factory has a store where they feature Fiesta products that are
discounted or discontinued. Patrons come in to shop with crates expecting to purchase
the Fiesta products in large quantities. This type of store can be considered as a(n):
A. lifestyle center.
B. mixed-use development.
C. outlet store.
D. regional center.
E. festival center.
Answer:
Which of the following statements is false in describing different categories of trade
areas?
A. The primary trading area is the geographic area from which the shopping center or
store site attracts 80% of its customers.
B. The secondary trading area is the geographic area of secondary importance in terms
of customer sales, generating about 20-30 percent of the site's customers.
C. The tertiary trading area includes the area where customers who shop at store are
coming from widely dispersed areas.
D. The best way to define the three trade zones is based on driving time rather than
distance.
Answer:
Which of the following store designs contains parallel aisles with merchandise on
shelves on both sides of the aisles?
A. Boutique layout
B. Free-form layout
C. Loop
D. Racetrack
E. Grid layout
Answer:
Private-label brands are also called _____.
A. closeouts
B. category killers
C. irregulars
D. inclusive brands
E. store brands
Answer:
Which of the following is true of retailing activities in the BoP market?
A. Retrofitting business models used in the more developed markets has proven
successful.
B. Most people in BoP markets live in rural areas with limited access to mass media.
C. The ideas used in BoP retail marketing are similar to conventional retailing
strategies.
D. High local demand results in low prices for consumer goods.
Answer:
Which of the following is a second tier department store?
A. Macy's
B. Neiman Marcus
C. TJ Maxx
D. Nordstrom
E. Saks Fifth Avenue
Answer:
When the customer's perception of the service delivered by a retailer fails to meet the
customer's expectations, a(n) _____ results.
A. standardized service
B. service gap
C. personalized service
D. procedural fairness
E. assurance
Answer:
Which of the following statements is a key advantage of direct investments?
A. The retailer has complete control of the operations.
B. The retailer is exempted from trade taxes.
C. The retailer is at freedom to choose which nation's law they adhere to.
D. The retailer is exempted from local trade laws.
E. A loss is borne equally by all involved parties.
Answer:
Karen's is a popular clothing store in Boston. The store recently started selling designer
watches. Thus, Karen's is practicing _____.
A. channel expansion
B. intertype competition
C. product diversification
D. scrambled merchandising
E. vertical differentiation
Answer:
A type of resale store that accepts used merchandise from people and pays them after it
is sold is called a(n) _____.
A. dollar store
B. consignment shop
C. supercenter
D. thrift store
E. extreme-value retailer
Answer:
Resorts that specialize in massage and aromatherapy look to target health conscious
people. Hence, they place advertisements in health and fitness magazines. Which
criterion for evaluating a market segment is seen in the example?
A. Reachable
B. Actionable
C. Identifiable
D. Substantial
E. Profitable
Answer:
Which of the following analysis techniques compares actual and planned sales to
determine whether more merchandise is needed to satisfy demand or whether price
reductions are required?
A. Sell-through analysis
B. GMROI
C. ABC analysis
D. Inventory turnover analysis
E. Multiattribute analysis
Answer:
David visits a supermarket to buy milk and eggs. At the checkout counter, waiting to
pay, he impulsively picks up a magazine from one of the display shelves. Which of the
following terms best reflects the supermarket's strategy?
A. Rebate
B. Point-of-purchase display
C. Premium
D. Sample
E. Special event
Answer:
_____ entails the activities involved with managing the exterior and interior physical
facilities associated with the store.
A. Inventory maintenance
B. Store turnover
C. Portfolio management
D. Store maintenance
E. Inventory turnover
Answer:
Ashton LLC, a chain of supermarkets, intends to change its pricing policy and
promotional mix but intends on catering to the same market segment. Which of the
following growth strategies will best suit Ashton LLC?
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:
The _____ identifies essential activities to be undertaken and is used to determine the
qualifications of potential employees.
A. job description
B. job analysis
C. job rotation
D. job enrichment
E. job enlargement
Answer:
