(p.403-404) Which of the following statements holds true for individualized variable
pricing?
A. Customers may feel that they are being treated in an unfair manner.
B. It is a practical approach and is widely used across retail stores.
C. Retailers can easily change the posted prices in stores based on customers’
willingness.
D. Retailers use this form of pricing for promotional and clearance markdowns.
E. This strategy concentrates on the sale of complementary products.
Answer:
Which of the following is an inherent limitation associated with asking the customer for
identifying information for building a customer database?
A. Some customers may feel that the sales associate is violating their privacy.
B. Some identifying information is illegal to use for marketing purposes.
C. If the information provided is inaccurate, the retailer may be held liable.
D. Customer consent is mandatory in the U.S. for using their personal details.
E. Customers may give more information than what the sales associate can record.
Answer:
Roselle was upset with the service she received when she was trying to purchase a
handbag at a store. First, the salesperson seemed preoccupied with a conversation with
another associate. When she finally acknowledged Roselle’s presence, the salesperson
offered no assistance to Roselle and had minimal information about merchandise.
Roselle plans to make a formal complaint to the management. What should the store
manager do to recover from this service failure?
A. Motivate sales associates to have an antagonistic attitude while dealing with the
customer complaint.
B. Encourage the customer to complain without interruption and then give a
sympathetic response.
C. Instruct sales associates to always assume they know what the customer is
complaining about.
D. Ensure that the customer is referred to several different store employees to get the
issue resolved.
Answer:
Which of the following statements does not describe the appropriate use of different
approaches for site selection?
A. Large retailers often use the Huff Gravity Model to estimate potential sales for a
store site before site selection.
B. Regression analysis can consider the effects of wide range of factors affecting sales
in stores.
C. The regression analysis is appropriate for small chains to find the best location.
D. Using the analog approach, the retailer describes the site and trade area
characteristics for its most successful stores and attempts to find a site with similar
characteristics.
E. The analog approach is not recommended for large chain stores like Walmart.
Answer:
Tilly’s Inc. is a chain of cafes. The company focuses primarily on customers who are
aged between 18 and 35 and earning about $15,000 to $30,000 annually. This
segmentation of customers by Tilly’s is known as its:
A. retail market.
B. target market.
C. virtual market.
D. global market.
E. labor market.
Answer:
Which of the following is an example of a market expansion growth opportunity?
A. Displaying merchandise to increase impulse purchases
B. Opening new stores in new geographic markets
C. Opening more stores in the same market
D. Keeping existing stores open for long hours
E. Engaging in cross-selling
Answer:
Which of the following operations can provide an opportunity to have the best people
make decisions for an entire corporation?
A. CES – Central Efficiency Standards
B. Management information systems
C. Centralization
D. Decentralization
E. Central systems operations
Answer:
What type of store is Meijer considered to be?
A. Supercenter
B. Department store
C. Full-line discount store
D. Drugstore
E. Category specialist
Answer:
Mention the steps undertaken using the analog approach.
Answer:
Which of the following is expressed as a percentage of net sales?
A. Accounts receivable
B. Net profit margin
C. Gross sales
D. Operating expenses
E. Total assets
Answer:
_____ is a communication process in which sales associates help customers satisfy their
needs through face-to-face exchanges of information.
A. Cold calling
B. Price-based selling
C. Target account selling
D. Solution selling
E. Personal selling
Answer:
Which of the following locations is the most appropriate to place impulse products?
A. Near the front of the store
B. Center aisles
C. Left-hand size of the store
D. Right-hand side of the store
E. Strike zone
Answer:
Services are difficult to be evaluated before customers buy or even after they buy and
consume them. Which of the following characteristics of service causes this challenge
for service retailers?
A. Intangibility
B. Perishability
C. Inconsistency
D. Consumability
E. Compatibility
Answer:
National brands are also called _____.
A. generic brands
B. private-label brands
C. exclusive brands
D. manufacturer’s brands
E. distributor’s brands
Answer:
How do retailers and vendors ensure that the information that passes back and forth
between retailers and vendors is secure?
A. Paper hard copies are sent to one another for comparison to be certain that the
information is accurate.
B. Suppliers, customers, and new clients all have a form of access to information.
C. With a high level of planning, implementation, and control of the flow of
information, the information will be secure.
D. There is an element of trust that is necessary in doing business with one another.
E. The system ensures that the information received has not been tampered with by
ensuring that the communication is both authentic and authorized.
Answer:
_____ refers to the percentage of the customers’ purchases made from the retailer.
A. 80-20 rule
B. Share of wallet
C. Customer lifetime value
D. Profit sharing
E. 1-to-1 retailing
Answer:
Chris needs to set a sales goal for Joan, a sales associate working for her. Joan is very
confident in her abilities and is one of the best salespeople in the department. Chris
should give Joan a goal that is _____.
A. the same as the goals for all other associates in the department
B. low enough so Joan has a good chance of meeting the goal
C. at the level of the average associate in the department
D. at a level Joan will have to work to achieve it
E. the same goal Joan had last year
Answer:
The building up of inventory in an uncoordinated channel is called a(n):
A. adversary supply chain
B. bullwhip effect
C. buildup effect
D. mishap effect
E. CPFR
Answer:
Rhonda rolled her eyes when she realized how much she had to pay for a pack of gum
at the paper stand on her way to reach her departing flight from JFK. With security lines
as long as they were, she knew she needed to hurry and pay the $2.75 for her pack of
gum. Her purchase situation can best be described as:
A. distributive shopping.
B. time-crunch shopping.
C. comparison shopping.
D. convenience shopping.
E. specialty shopping.
Answer:
Tyson orders pizzas at a take-out restaurant and is told that the order would be ready in
twenty minutes. After waiting for almost half an hour, he is told that his order was taken
up just five minutes ago and that the pizzas would be ready in sometime. Which of the
following service gaps is exemplified in this scenario?
A. Market gap
B. Communications gap
C. Knowledge gap
D. Delivery gap
E. Research gap
Answer:
A _____ offers an item for free or at a bargain price to reward some type of behavior,
such as buying, sampling, or testing.
A. rebate
B. premium
C. coupon
D. sample
E. cross sale
Answer:
Which of the following statements is not a responsibility of the shopping center
property management firm?
A. Maintain the parking lots.
B. Ensure that the parking lot has good lighting.
C. Maintain the outdoor signage for the shopping center.
D. Create special events to attract customers to the shopping center.
E. Provide temporary holiday sales staff for retailers.
Answer:
The competition between the same type of retailers is called _____.
A. intertype competition
B. indirect competition
C. intratype competition
D. scrambled merchandising
E. intrinsic competition
Answer:
In _____, new employees work in specific jobs under the direct supervision of their
managers.
A. the blended approach
B. a structured training program
C. on-the-job training
D. an orientation program
E. etiquette training
Answer:
Antonio was new to his position just out of college. He was assigned his tasks, knew his
trainer, his supervisor, and his responsibilities. He was also assigned time to meet with
Julio, an older gentleman who had grown 20 years with the company in another
department. They meet every few weeks, talk about family, comfort with the job, goals
of the company, and problems with the position. Who is Julio to Antonio?
A. Mentor
B. Trainer
C. Supervisor
D. Manager
E. Leader
Answer:
Burger King in Mequon, Wisconsin, was not allowed to have a sign taller than 10 ft.
and could not have any neon lights on the outside of the building. This is an example of
the use of a _____.
A. building code
B. blue law
C. licensing requirement
D. trading area code
E. common maintenance code
Answer:
Which store layout is used primarily by supermarkets and full-line discount stores?
A. Race track layout
B. Grid layout
C. Free form layout
D. Boutique layout
E. Gondola layout
Answer:
In the 1960s, bands like the Beatles and the Rolling Stones influenced culture. Students
grew their hair, wore beads, and became more socially conscious about war,
segregation, and family. The culture looked up on bands like these for inspiration and
encouragement. Therefore, the members of these bands whose style was emulated by
people are known as:
A. social stereotypes.
B. ethnic groups.
C. reference groups.
D. peer groups.
E. private communities.
Answer:
On his way home from work, Phil stopped at a shopping center. He parked in front of
the dry cleaner, where he could pick up his suit. He did not have to move his car
because next door was a gift shop where he could pick up a gift for his niece.
Conveniently enough, next door to that store was a supermarket, where he purchased
essentials like milk and cornflake cereal. Phil was shopping in what type of shopping
center?
A. Lifestyle center
B. Mixed-use development center
C. Enclosed shopping mall
D. Power center
E. Neighborhood center
Answer:
Bella is about to be married in two months. When she shopped for the bridesmaids’
gowns, her gown, and flowers for the ceremony, she spent a lot of time in deciding what
to buy. She was not sure whether her parents, in-laws, and fianc would like her
selections. Which form of purchase decision process is Bella engaged in?
A. Composite segmentation
B. Extended problem solving
C. Consideration set
D. Habitual decision making
E. Limited problem solving
Answer:
At the home improvement store, Home Fits, there is an area at the back that has one of
three categories of merchandise throughout the year. From January through March, the
area has organization and garage storage merchandise, from April through September, it
has lawn, garden, and patio merchandise, and from October through December, it has
Christmas merchandise. This special section at the store is an example of a(n) _____.
A. consumer motivator
B. freestanding fixture
C. gondola display
D. impulse product center
E. promotional area
Answer:
Local governments in the United States use _____ to regulate land uses in specific areas
to prevent any interference with existing uses by residents or businesses, as well as
encourage the preservation of a community’s sense of identity.
A. mapping
B. zoning
C. policing
D. branding
E. lining
Answer:
_____ happens as cartons are loaded onto the truck or onto a pallet.
A. Ship verification
B. Retail verification
C. Shop verification
D. Pack verification
E. Purchase verification
Answer:
Depending on the amount of money you have in Wachovia bank, you will receive a
variety of different services. The lower-tiered customers are charged $7 to use a teller
but can receive the same services for free if they use an ATM. Charging low-tiered
customers for using live tellers is Wachovia’s approach to:
A. getting the lead out.
B. letting customers opt out.
C. tailoring offers for these customers.
D. soliciting feedback.
E. offering better services.
Answer: