66) The retail strategy helps a retailer to identify all of the following except:
A) the target market toward which the retailer will direct its efforts.
B) the nature of the merchandise and services the retailer will offer to satisfy the needs of the target
market.
C) how the retailer will build a long-term advantage over its competitors.
D) how to determine the break-even point for making profits.
67) When developing the ________ for his salon, Theo decided to obtain a long-term competitive
advantage over other salons by offering longer hours, better prices, a well-trained staff, and hair
coloring for half-price every Wednesday to attract customers.
A) selling concept
B) business cycle
C) retail strategy
D) focal point orientation
E) marketing concept
68) As the owner of Knights, a store specializing in men’s suits, Isabella can use a retail strategy to
identify all of the following except
A) the advertising campaign developed to sell last season’s merchandise.
B) the store’s target market.
C) how the store will build a competitive advantage over other similar retailers.
D) what services the store will offer its customers.
E) what types of suits the store will stock.
69) A ________ identifies the target market, the merchandise and services that will be offered, and
how the company will achieve long-term advantage over its competitors.
A) retail strategy
B) corporate strategy
C) retail mix
D) supply chain
E) product mix
70) Which of the following is a key strategic decision made by a retailer?
A) Managing merchandise inventories
B) Defining the target market
C) Managing the store
D) Creating the retail communication mix
E) Implementing visual merchandising
71) A retail mix refers to
A) a strategy for identifying primary competitors through market research.
B) the idea of selling similar merchandise using different types of retail outlets, such as drug and
department stores.
C) the concept of offering merchandise not typically associated with their type of store.
D) a set of decisions retailers make to satisfy customer needs and influence their purchase
decisions.
E) a retailer’s decision to undertake wholesaling and manufacturing activities.
72) 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
73) A retail mix is developed to
A) promote scrambled merchandising.
B) implement a retail strategy.
C) understand the retail market.
D) implement vertical integration.
E) formulate a retail strategy.
74) Which of the following is not an element in the retail mix?
A) Competitive response
B) Merchandise pricing
C) Location
D) Customer service
E) Advertising and promotion
75) Retail information and supply chain management systems help retailers to do all of the
following except
A) gain strategic advantages.
B) monitor the flow of information and merchandise.
C) make sure desired merchandise is available when customers want it.
D) minimize the retailer’s inventory investment.
E) avoid class action lawsuits.
76) ________ are the principles governing the behavior of individuals and companies that
establish appropriate behavior and indicate what is right and wrong.
A) Ethics
B) Acts
C) Training guidelines
D) Company traditions
E) Legislations
77) Which of the following statements is true of ethical principles?
A) Ethical principles can change over time.
B) Ethics remain the same irrespective of the country or industry.
C) Most people have common views on ethical and unethical practices.
D) The personal code of ethics does not play a role in business decisions.
E) Ethical principles are often easy to determine.
78) What is the retailer’s role in a supply chain?
79) What are the major value-creating activities performed by retailers?
80) Explain the importance of breaking bulk.
81) How have retailers incorporated corporate social responsibility (CSR) into their activities?
82) Explain briefly the problems faced by retailers before the development of sophisticated
information systems.
83) How do retailers use customer transaction data?
84) Why do retailers hire people with varied expertise and interests?
85) How does scrambled merchandising impact retail competition?
86) With regard to customers, which aspects do retailers need to consider when developing a retail
strategy?
87) How do retail information and supply chain management help retailers gain a strategic
advantage?
88) Refer to the most current list of top global retailers provided on www.nrf.com. List the top five
retailers and compare to the year before; discuss any changes.