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Mrs. Herrin and Mrs. Otwell teach a second grade class. Both have young children at
home and both have teaching careers. To help them balance this lifestyle, the principal
suggested they both work part-time yet cover the responsibilities of the one teaching
position. This would be an example of:
A. time sharing.
B. task empowerment.
C. balanced tasking.
D. job sharing.
E. flextime.
Answer:
When developing a retail communication program, a marginal analysis takes place
when _____.
A. the budget is allocated
B. the program is implemented and evaluated
C. the objective is determined
D. the budget is determined
Answer:
Since sales and the arrival of merchandise from vendors can't be predicted with perfect
accuracy, retailers have to carry _____.
A. backup stock
B. basic merchandise
C. perpetual inventory
D. cycle stock
E. base stock
Answer:
Walgreens' rapid growth has resulted in a store opening every 17 hours. Many times,
they are within a few blocks of each other. Walgreens practices:
A. retail format development.
B. diversification growth.
C. market penetration.
D. market expansion.
E. market divestment.
Answer:
_____ involves undertaking marketing research to understand what potential and
current employees are seeking as well as what they think about the retailer.
A. Employment selection
B. Employment training
C. Employment branding
D. Selective hiring
E. Aligning goals
Answer:
Which of the following segmentation methods would be most appropriate for a retailer
selling children's apparel?
A. Geographic segmentation
B. Buying situation segmentation
C. Demographic segmentation
D. Benefit segmentation
E. Personality segmentation
Answer:
Which of the following strategies can a retailer utilize to attract shoppers to its website?
A. Persuade investors with positive sales forecasts.
B. Encourage vendors to deliver the assortments.
C. Focus on bankruptcy proceedings to create a trustworthy image.
D. Print the website address on signage, bags and in advertising.
E. Prime its sales associates to use its website.
Answer:
Which of the following is true of limited problem solving?
A. The majority of customer purchase decisions involve limited problem solving.
B. It happens when customers become loyal to a store or brand.
C. It involves little or no conscious effort.
D. Customers have little knowledge on the product they intend to purchase.
E. It involves a high amount of risk and uncertainty.
Answer:
Why is it important to use the Huff Gravity Model in conjunction with the analog and
regression methods?
A. The Huff model does not utilize demographic variables.
B. The analog and regression methods consider too many variables other than
demographic.
C. There has been additional supportive research since the Huff model that can
supplement the findings of the Huff model.
D. The Huff model only offers comparative data and is unable to assist in choosing
specific sites.
E. The Huff model only offers information about income levels in comparison to the
size of the shopping area.
Answer:
The trade-off between ease of finding merchandise and providing a varied and
interesting layout is determined by:
A. how often there is a shipment from the distribution center.
B. the simplicity of the merchandise.
C. well trained, design oriented managers.
D. the needs of the customers shopping at the store.
E. legal requirements.
Answer:
A _____ refers to the market toward which a retailer will direct its efforts.
A. channel member
B. market segment
C. target market
D. mass market
E. warm market
Answer:
_____ is the practice of offering the same multiple-price schedule to all customers and
encourages price-sensitive customers to take advantage of the lower price.
A. First-degree price discrimination
B. Second-degree price discrimination
C. Third-degree price discrimination
D. Price lining
E. High/low pricing
Answer:
Retailers using a(n) _____ strategy frequentlyoften weeklydiscount the initial prices for
merchandise through sales promotions.
A. disintermediated pricing
B. penetration pricing
C. high/low pricing
D. price skimming
E. everyday low-pricing
Answer:
Reductions in the initial retail prices are known as _____.
A. rain checks
B. fixed costs
C. markdowns
D. variable costs
E. keystoning prices
Answer:
Which of the following is NOT true of the amount of information searched by
customers?
A. The amount of information searched depends on the value customers feel they can
get from searching versus the cost of searching.
B. Consumers will spend more time searching for information when they have prior
experience with the merchandise category.
C. The value of the search stems from how it improves the customer's purchase
decision.
D. The costs of search include both the customer's time and money.
Answer:
Jake, who runs a business on Mint street, wants to open another retail outlet in the
business district. He is unable to because of the _____ laws imposed by the local
governments in the United States.
A. mapping
B. zoning
C. policing
D. branding
E. lining
Answer:
What is customer alchemy?
A. Converting iron and gold customers into platinum customers
B. Offering more products to existing customers
C. Increasing the data collection from only platinum and gold customers
D. Creating a group of customers bound together by loyalty to a retailer
E. Tailoring loyalty programs to suit customers' needs
Answer:
Retailers proactively engage in enforcing the labor practices of their suppliers because:
A. they want to maintain their reputations of providing quality merchandise.
B. they want to build strategic partnerships with developing countries.
C. they want to work toward collaborative merchandising.
D. they require smaller shipments at frequent intervals.
E. they want to ensure a safe and healthy work environment for laborers.
Answer:
What can a retailer do to keep customers from being confused about the retailer's
image?
A. Develop an integrated marketing communication program to deliver a consistent
message.
B. Standardize pricing across all geographic locations.
C. Change the offerings based on the current fads to stay contemporary.
D. Re-design stores to suit contemporary tastes.
E. Be consistent in competitiveness as it clearly defines top performers in the market.
Answer:
_____ means that the retailer should know what to do to satisfy needs for the consumers
in the segment.
A. Actionable
B. Identifiable
C. Substantial
D. Reachable
E. Profitable
Answer:
Which of the following is a subjective issue associated with global sourcing?
A. Transportation costs
B. Tariffs
C. Longer lead times
D. Relative value of foreign currencies
E. Quality control
Answer:
Organization cultures are developed and maintained through _____.
A. ideas and theories
B. stories and symbols
C. advertising campaigns
D. public relation campaigns
E. interaction with customers
Answer:
A dermatologist has her diplomas prominently displayed above her large desk, which
sits on a Persian rug in an office filled with tasteful, yet expensive furnishings. Which
of the following service characteristics is the doctor trying to handle with her office
dcor?
A. Intangibility
B. Perishability
C. Inconsistency
D. Consumability
E. Compatibility
Answer:
How does optimization software help retailers in taking markdowns?
A. It gives retailers the point at which it is optimal to job-out and consolidate.
B. It updates pricing based upon actual sales and factors in differences in price
sensitivities.
C. It continually updates buyers on sales by price beginning at the point of sale.
D. It dictates markdown merchandise into one percentage markdown per week in the
store.
E. It indicates markdowns based on how long the merchandise has been in the store.
Answer:
Tech Games, a retailer, purchases many of the video games DVDs, Wii games, and
game consoles on a large scale. It then offers the products to customers in small
quantities based on their requirements. The value-creating function performed by Tech
Games in the given scenario is _____.
A. providing assortments
B. breaking bulk
C. holding inventory
D. providing services
E. creating a retail mix
Answer:
The Macy's Thanksgiving Day Parade is an example of _____.
A. samples
B. event sponsorship
C. rebates
D. premiums
E. point-of-purchase display
Answer:
The famous designer, Isaac Mizrahi, made a scheduled appearance at Borders bookstore
in Mall of America to sign copies of his book "How to Have Style". This is an example
of what type of communication method?
A. Special event
B. Samples
C. Rebates
D. Coupons
E. Premiums
Answer:
Hot Topics is a specialty retailer with an assortment that interests young teens.
Merchandise ranges from t-shirts to music to jewelry to makeup all geared to the
interests of young teenagers. Therefore, Hot Topics is catering to a particular:
A. consideration set.
B. demographic set.
C. reference group.
D. psychosocial segment.
E. retail market segment.
Answer:
Inventory turnover:
A. is calculated by dividing accounts receivable by net sales
B. equals total assets minus current assets divided by average inventory
C. is calculated by dividing cost of goods by average inventory
D. equals net sales minus cost of goods sold divided by average turnover
Answer:
Which of the following statements is true of perceived service?
A. Retailers need to consider only the actual customer service delivered in order to
build a reputation.
B. Employees providing the service do not have an impact on customer satisfaction.
C. Customers' perceptions of a retailer's customer service depend on the actual service
delivered.
D. Customers are influenced solely by the outcome of the service.
E. All of these.
Answer:
When Home Movies Inc. opened stores in other countries, it increased the company's
international market share. Home Movies took advantage of a _____ opportunity.
A. diversification
B. market expansion
C. market divestment
D. retail format development
E. market penetration
Answer:
A catalog retailer of kitchen items observes that during some weeks it sells 40 muffin
pans, and during other weeks it sells none. A reorder takes up to three weeks. The
probability of running out of pans and alienating its customers can be alleviated by
maintaining _____.
A. non-ledgered stock
B. cycle stock
C. hidden inventory
D. backup stock
E. lead stock
Answer:
Retailers function as wholesalers when:
A. they hold inventory.
B. they perform manufacturing activities.
C. they practice scrambled merchandising.
D. they sell to other businesses.
E. there is an intratype competition.
Answer:
What is a job description?
Answer:
List the three approaches that large retailers use to coordinate buying and selling.
Answer:
Differentiate between variety and assortment of merchandise offered by a retailer.
Answer:
Discuss the legal aspects retailers must abide by when hiring and employing people
fairly.
Answer:
List the four steps involved in developing a retail communication program.
Answer:
What are extrinsic rewards?
Answer:
Describe the direct selling channel along with the two different types of direct selling.
Answer:
How does flexibility become an important aspect when controlling costs?
Answer:
Discuss how off-price retailers opportunistically obtain their merchandise and the
different types of merchandise found at off-price retailers.
Answer:
Explain briefly the problems faced by retailers before the development of sophisticated
information systems.
Answer:
What are two main issues to consider when negotiating a store's lease?
Answer:
Describe both the staple merchandise and fashion merchandise categories.
Answer:
Why is it problematic for retailers to spend about the same on communication programs
for each geographic region?
Answer:
Identify and describe the three different approaches used to estimate the potential sales
for a store site.
Answer:
Describe EEOC's guidelines on sexual harassment.
Answer:
Distinguish between centralization and decentralization.
Answer:
What is a customer lifetime value (CLV), and how is it estimated?
Answer:
