Retailing Management, 10e (Levy)
Chapter 16 Store Layout, Design, and Visual Merchandising
1) The primary objective of a store design is in implementing the retailer’s strategy.
2) Stores design provides hedonic benefits by enabling customers to locate and purchase products
in an efficient and timely manner with minimum hassle.
3) The grid layout is well suited for customers who are primarily interested in the hedonic benefits
offered by a store.
4) The store design that provides a major aisle to facilitate customer traffic with access to the
store’s multiple entrances is called the racetrack layout.
5) The best place for store planners to position a “destination” department or item is the front
right-hand side of the store.
6) Impulse products are products that are purchased without prior plans, like fragrances and
cosmetics in department stores and magazines in supermarkets.
7) Apparel retailers mostly utilize gondola fixtures.
8) Tonnage merchandising is a display technique in which large quantities of merchandise are
displayed together.
9) Atmospherics refers to the design of an environment via visual communications, lighting,
colors, music, and scent to stimulate customers’ perceptual and emotional responses that affect
their purchase behavior.
10) The two benefits customers seek when shopping are customer satisfaction and customer
service.
11) Which of the following is not an objective for store design?
A) Implement the retailer’s strategy.
B) Build loyalty by providing a rewarding shopping experience.
C) Increase sales on a visit.
D) Meet legal requirements.
E) Cut costs.
12) 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
13) Why is it important for stores to be designed with flexibility in mind?
A) It is less expensive for retailers to build several different types of flexible fixtures than to build
one inflexible fixture.
B) Retailing is a dynamic business, and retailers need to keep changing the merchandise mix
offered.
C) Customers find it hard to locate merchandise if fixtures are rigid.
D) Department managers never know what to expect from the planner’s allocations and require the
ability to display more merchandise at a moment’s notice.
E) Environmental legalities require stores to have flexible designs to reduce waste.
14) Star Tax Services opens many offices around the country to accommodate the tax season. The
company has the ability to piece together new offices, expand existing offices, or alter the design
for a unique space in a matter of hours. Which of the following design considerations related to
controlling costs can be seen in this example?
A) Inventory shrinkage
B) Flexibility
C) Utilitarian benefits
D) Atmospherics
E) Vertical merchandising
15) A retailer considering LED lighting versus florescent lighting, solar power versus standard
electricity, and local grasses versus typical grasses for landscaping would mostly be considering
________ as the objective for store design.
A) legal requirements
B) retail strategy
C) controlling costs
D) flexibility
E) buying behavior
16) The Americans with Disabilities Act
A) states that stores built before 1990 must be fully accessible for the disabled.
B) states that it is illegal to discriminate in hiring and termination decisions concerning people
between the ages of 40 and 70.
C) prohibits unequal pay for men and women who perform equal work or work of comparable
worth.
D) protects people with disabilities from discrimination in employment, transportation, public
accommodations, telecommunications, and the activities of government.
17) Retailers are required to provide all of the following for disabled customers except
A) accessible dressing rooms.
B) accessible checkout aisles.
C) fully accessible bathrooms.
D) a lower checkout station.
E) a courtesy discount.
18) Since a store design cannot achieve all objectives, managers need to make trade-offs among
them. Which of the following does not describes such trade-offs?
A) A supermarket’s traditional design can efficiently store and display a lot of merchandise with
long rows of floor-to-ceiling racks; however, this design is not good for a pleasant shopping
experience.
B) Retailers often make trade-offs between stimulating impulse purchases and making it easy to
buy products.
C) The trade-off between the ease of finding merchandise and providing an interesting shopping
experience is determined by the customer’s shopping needs.
D) Specialty store retailers encourage the ease of finding merchandise rather than exploration.
E) Giving customers adequate space in which to shop has to be balanced with the use of scarce
resource for merchandise.
19) 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.
20) The ________ is the phenomenon that occurs when a store is extremely cramped.
A) closing time effect
B) bystander effect
C) butt-brush effect
D) boomerang effect
E) conspicuous consumption effect
21) Which of the following is not an element considered in the design of a store?
A) Layout
B) Signage
C) Graphics
D) Attention getting feature areas
E) Recruitment
22) 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
23) When Raisa walked into the local convenience store, she saw it had parallel aisles with shelves
on either side. Immediately, she knew the retailer had used a ________ as a design for its store.
A) racetrack layout
B) grid layout
C) loop
D) free-form layout
E) boutique layout
24) Which of the following statements about a grid store layout is not true?
A) The amount of merchandise on the floor with a grid layout can be significantly greater than
with other types of layouts.
B) The grid layout is suitable for customers with hedonic needs.
C) There is little wasted space with a grid layout.
D) The grid layout is very cost-efficient.
E) The grid layout satisfies utilitarian needs of customers.
25) Which of the following statements does not describes the features of a grid layout?
A) It provides a visually exciting design.
B) It is well suited for shopping trips in which customers need to move throughout the entire store
and quickly locate products they want to buy.
C) It is well suited for grocery retailers.
D) It is cost efficient.
E) It efficiently utilizes vertical space.
26) Grid store layouts
A) encourage impulse purchasing.
B) are cost-efficient.
C) are also called loop layouts.
D) are one of the most aesthetically pleasing designs.
E) are used by specialty stores.
27) 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
28) Which of the following retailers is likely to use a grid store layout?
A) Essentials Supermarket
B) Janet’s Boutique
C) Radiant Shoe Store
D) Linda’s Beauty Salon
E) Zen’s Coffee Shop
29) Which of the following is a disadvantage to the grid layout?
A) It is costly to design.
B) Shrinkage is more likely to occur.
C) Customers typically aren’t exposed to merchandise in the center store.
D) Wide aisles utilize expensive merchandise space.
E) Products are difficult for customers to find.
30) A racetrack layout is also called a
A) loop layout.
B) fixture layout.
C) boutique layout.
D) gondola layout.
E) free-form layout.
31) Which of the following retail stores is most likely to have a racetrack layout?
A) Star Tax Service
B) Essential supermarket
C) Ted’s department store
D) Claire’s Boutique
E) Linda’s Beauty Salon
32) Which of the following statements is true about the racetrack layout?
A) It is also called the free-form layout.
B) It cannot be used in department stores because it makes large stores look cluttered.
C) It encourages unplanned purchasing.
D) It is not as aesthetically pleasing as the grid layout.
E) It is very cost-efficient.
33) Which of the following store designs has a point-of-sale terminal in each department?
A) Racetrack layout
B) Gondola layout
C) Grid layout
D) Boutique layout
E) Horsetrack layout
34) The ________ arranges fixtures and aisles asymmetrically.
A) racetrack layout
B) gondola layout
C) grid layout
D) loop layout
E) free-form layout
35) Which of the following best describes the free-form layout?
A) It is very cost-efficient.
B) It uses repetitive, symmetrical patterns.
C) It enhances the utility of a store’s selling space by its tight arrangements.
D) It is the least aesthetically pleasing of all the store layouts.
E) It is an aesthetically pleasing design and displays limited merchandise.
36) The free-form layout is also known as the
A) specialty layout.
B) boutique layout.
C) freedom layout.
D) loop layout.
E) format layout.
37) What is the advantage of the free-form layout to the consumer?
A) Customers are exposed to a large quantity of merchandise.
B) Customers can easily find merchandise in the store with this type of layout.
C) Customers feel they are in an intimate and relaxed environment and are more likely to buy.
D) The layout guides the customer through the store.
E) Customers can purchase merchandise at a lower price in this type of layout.
38) Reese designed his gift shop specializing in teen room decoration in a free-form layout. He
used music, lighting, and color to suit the teen tastes. What could Reese add to help customers
locate specific products and departments?
A) Discounts
B) Signage
C) Longer hours
D) Frequent sales
E) Advertisement in local teen hangouts
39) Willa is the manager of a pet store and wants to display an advertisement for dog food on sale
in the store window. What type of signage should she use?
A) Promotional signage
B) Category signage
C) Locational signage
D) Point-of-sale signage
E) Lifestyle signage
40) William is always looking for a bargain and frequently visits the meat department to see the
markdowns for meat dated to be sold that day. He finds a signage stating a half-price sale. This
signage is an example of a
A) promotional signage.
B) category signage.
C) locational signage.
D) point-of-sale signage.
E) lifestyle signage.
41) While shopping in the electronics department in Giantz, Sasha noticed an advertisement about
lay-away on the Giantz network broadcasted on a nearby television. Therefore, the store is using
________ to deliver visual content.
A) digital imagery
B) digital signage
C) point-of-sale signage
D) sampling
E) corporate display advertising
42) Digital signage is visual content that is displayed on a monitor delivering video clips or price
of merchandise. Which of the following is not a benefit of digital signage?
A) The enhancement of the store environment
B) The displays of complex graphics and videos
C) The atmosphere it provides
D) The time to message hurdle
E) The cost of the display and devices
43) When Joe visited Decors, he was surprised to see tea cups displayed up a wall almost to the
ceiling. The wall is an example of a
A) feature area.
B) digital signage.
C) planogram.
D) bulk fixture.
E) point-of-purchase.