44) In Sid’s Surf Shop, there is a 10-foot-long surf board on legs with swimwear on it near the
entrance to the department where surfing merchandise is sold. The surfboard attracts many
customers into that department. This is an example of a(n)
A) bulk fixture.
B) gondola display.
C) freestanding display.
D) cash wrap.
E) end cap.
45) Which of the following does not describe an end cap?
A) They are displays located at the end of an aisle.
B) They have high visibility.
C) Product sales increase dramatically when merchandise is featured on an end cap.
D) Retailers use end caps for higher-margin, impulse, and sale merchandise.
E) They are most often used with a free-form layout.
46) Bonnie wanted to buy a wreath for her home for Christmas. She found the wreaths at the back
of the local department store with other holiday cards, candy, and decorations. This special section
at the store is an example of a
A) bulk fixture.
B) freestanding fixture.
C) gondola display.
D) feature fixture.
E) promotional area.
47) End caps are used for
A) higher-margin, impulse, and sale merchandise.
B) displaying merchandise that is being promoted.
C) housing mannequins to display apparel.
D) supporting freestanding displays that attract customers.
E) supporting shelves and racks to be mounted on walls.
48) 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.
49) As Garry was waiting to pay for a bottle of aspirin at a pharmacy, he added a copy of Us
Weekly, a Snickers bar, and a pack of cheese crackers to his purchases. The area where Garry made
his Us Weekly and Snickers selections is called a(n)
A) end cap.
B) cash wrap.
C) gondola display.
D) promotional area.
E) freestanding fixture.
50) Which of the following has the least consideration when a retailer is deciding how much floor
or shelf space to allocate to merchandise categories and brands?
A) The productivity of the allocated space
B) The impact on overall store sales
C) The display needs for the merchandise
D) The merchandise’s inventory turnover
E) The color of the merchandise
51) ________ is a measure of space productivity used by retailers.
A) Price lining
B) Sales per square foot
C) Inventory turnover
D) Tonnage merchandising
E) Asset turnover
52) Apparel retailers that display most of their merchandise on freestanding fixtures typically
measure space productivity in terms of
A) sales per linear foot.
B) sales per square foot.
C) inventory turnover.
D) retained earnings.
E) asset turnover.
53) Which of the following does not describe appropriate space management?
A) Merchandise categories with high GMROI merit more space than merchandise categories with
lower GMROI do.
B) Less space is allocated to fast-selling merchandise to allow more shelf space to encourage sales
of slower-moving items.
C) A retailer overallocates space to categories purchased by their platinum customers, the
customers with the highest lifetime value.
D) A retailer overallocates space to some low-productivity categories such as milk because an
extensive assortment in these categories attracts customers to the store and positively affects the
sales of categories with higher GMROIs.
E) High turnover items need to be restocked more frequently to avoid stockouts.
54) A(n) ________ creates the customer’s first impression of the store’s offering and is the area
where retailers place their most compelling merchandise.
A) strike zone
B) decompression zone
C) end cap
D) planogram
E) gondola
55) ________ refers to products that customers decided to buy before entering the store.
A) Impulse merchandise
B) Demand/destination merchandise
C) Special merchandise
D) Complementary merchandise
E) Promotion merchandise
56) Donna entered Bob’s department store and went directly to the children’s apparel department.
Therefore, the merchandise to be bought by Donna in the children’s department is referred to as
A) promotional merchandise.
B) impulse merchandise.
C) special merchandise.
D) destination merchandise.
E) complementary merchandise.
57) Which of the following is not recommended as a merchandise location practice?
A) Retailers should strategically place impulse and demand/destination merchandise throughout
the store, so they can increase the chances that a customer will shop the entire store and focus on
the merchandise with a high GMROI.
B) Retailers should place merchandise with a high GMROI at or close to the store entrance to
attract customers’ attentions and sell fast.
C) Retailers should display some of their most compelling merchandise in the strike zone to create
a desirable first impression of the store.
D) Retailers should display high GMROI products at the right-hand side of the store.
E) A retailer should strategically cluster complementary products together to facilitate multiple
purchases.
58) Which of the following locations in a store is the most appropriate to place high-margin
products?
A) The store entrance
B) Center aisles
C) End caps
D) Right-hand side
E) Left-hand side
59) 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
60) Which of the following statements on the location of departments within retail department and
discount stores is true?
A) Most customers are drawn into the center of a store by the use of a free-form design.
B) In a multilevel store, a space’s value increases the farther it is from the entry-level floor.
C) Impulse products are mostly located at the back of the store.
D) Because many customers turn left when entering a store, the left side is especially desirable
floor space.
E) The best locations on any floor are those that are closest to the store’s entrances, main aisles,
escalators, and elevators.
61) A diagram that shows how and where specific products should be placed on retail shelves or
displays to increase customer purchases is called a(n)
A) hologram.
B) allocation plan.
C) placement plan.
D) planogram.
E) assortment plan.
62) On the basis of the analysis of historical sales, gross margins, turnover, the sizes of product
packaging for each SKU, and the retailer’s design criteria, a software can determine the optimal
shelf space and location for each SKU. This describes the process of creating an effective
A) merchandise plan.
B) allocation plan.
C) placement plan.
D) planogram.
E) assortment plan.
63) In which of the following stores would you be most likely to encounter a straight rack?
A) Fresh Ones, a florist
B) Ted’s department store
C) Dream Toys
D) Dailies supermarkets
E) Jenny’s Hair Salon
64) A(n) ________ has two crossbars that sit perpendicularly on a pedestal.
A) end cap
B) rounder
C) straight rack
D) feature fixture
E) gondola
65) In which of the following stores would you be most likely to encounter a rounder as a common
fixture?
A) Penny’s, an off-price clothing retailer
B) Sherlock, a store for mystery-book lovers
C) The Beer House, a store that sells everything you need to brew your own beer
D) Simon’s drugstores
E) Rose Antique Mall