Unlock document.
This document is partially blurred.
Unlock all pages and 1 million more documents.
Get Access
Which variable of the retailing mix has the greatest influence on a consumer's initial
perception of a retailer?
a. The store's personnel
b. The store's price points
c. The store's promotional campaign
d. The store's merchandise
e. The store itself
Retail managers are often forced to deal with many issues, functions, and projects at the
same time. Establishing priorities, plans, and follow through to achieve results
demonstrates which prerequisite for success?
a. Initiative
b. Leadership
c. Risk Taking
d. Organization
e. Stress Tolerance
Strategic planning:
a. requires a short-term commitment of resources by the retailer.
b. is concerned with maximizing the efficiency of the retailer's use of resources and
with how the retailer converts these resources into sales and profits.
c. involves managing the buying and handling of merchandise, pricing, advertising and
promotion, customer services and selling, and facilities.
d. is concerned with how the retailer responds to the environment in an effort to
establish a short-term course of action.
e. involves adapting the resources of the firm to the opportunities and threats of an
ever-changing retail environment.
Planned purchases at retail are computed as follows:
a. planned sales plus planned reductions plus planned EOM stock minus planned BOM
stock.
b. planned sales minus planned reductions plus planned BOM stock plus planned EOM
stock.
c. planned sales plus planned reductions minus commitments for future delivery.
d. planned BOM stock plus planned sales plus planned reductions minus EOM stock.
e. planned sales plus planned reductions plus planned EOM stock plus planned BOM
stock.
In order for a deceptive advertising charge to hold up, it must be shown that:
a. there was no intent to deceive.
b. the total damage exceeded $100.
c. the consumer was misled.
d. the advertisement was paid for by multiple members of the channel.
e. competition was heightened.
In order to achieve retail success, which of the following should be your primary focus?
a. Pricing.
b. Promotion.
c. Buying.
d. Customers.
e. Distribution.
Which of the following is NOT one of the typical choice criteria situations that a
salesperson may face when in dealing with customers?
a. No active product choice criteria
b. Product known but money/credit lacking
c. Inadequate or vague choice criteria
d. Choice criteria in conflict
e. Explicit choice criteria
A sales associate at Autonation is describing the positive features of a new car to a
customer. The sales associate is engaging in:
a. sales promotion.
b. connection selling.
c. 'conning' the folks.
d. personal selling.
e. sales management.
A $1,000 increase in planned reductions for the month would:
a. raise EOM inventory by $2,000.
b. lower this month's OTB by $1,000.
c. increase BOM inventory by $1,000.
d. increase this month's OTB by $1,000.
e. lower planned purchases by $1,000 for this month.
Which of the following statements about the Internet is FALSE?
a. The Internet is the leading form of miscellaneous advertising used by retailers today.
b. The Internet is playing an important promotional role for retailers.
c. A key aspect of the Internet is its ability to provide customers with information.
d. The communication elements of advertising, sales promotion, and public relations are
all strategic options a retailer can use when communicating with its various publics
through the Internet.
e. The Internet provides a platform for a retailer to employ a relatively low-cost
integrated marketing communications mix.
Which of the following situations is NOT a good reason for using a high markup
percentage?
a. The products have a high risk of a price reduction due to the seasonality of the goods
b. The products have low fixed costs associated with their sale
c. The products have a low elasticity of demand
d. The products have high handling and storage costs
e. The products are only sold through few retail outlets
Which of the following statements about Gen Yers is false?
a. They are concerned with how the product makes them appear and less concerned
about the shopping process.
b. These antifashion and antiestablishment consumers do not want entertainment or
events when they shop.
c. Gen Yers seem to be turned off by promotions that do not take them seriously.
d. Some banks have lured Gen Yers with online user friendliness whereby they can drag
money from one account to another all on the same screen.
e. Realizing the Yers' interests, many banks are allowing their customers to set their
own rules for transferring funds into savings accounts.
As a warehouse club manager, you have noticed that this format's market share has
stabilized. As such, you fear severe profit declines as warehouse clubs are now in the
_____ stage of the retail life cycle.
a. introduction
b. growth
c. maturity
d. decline
e. vulnerability
A statement of cash flow:
a. lists all income and expenses for a given time period.
b. involves forecasting the cash value of the retailer's inventory.
c. involves forecasting the present value of accounts receivable.
d. explains the changes in cash and cash equivalents from one accounting period to the
next by showing all cash inflows and all cash outflows for the given time period.
e. shows if the firm made money over a given time period.
Entertainment City advertised, in its Christmas circular, a portable compact disc player
on sale for $45. Sales clerks were informed that they were to attempt to persuade
customers interested in the "on-sale" CD player to purchase the higher quality, $115
model. In addition, no commission will be paid on the lower priced CD player.
Entertainment City is engaged in the practice of:
a. palming off.
b. legal advertising.
c. sale advertising.
d. puffery.
e. bait-and-switch advertising.
If a retail salesperson is required to perform a wide range of activities, the person is said
to have a high level of:
a. task identity.
b. responsibility.
c. variety.
d. multi-tasking.
e. autonomy.
Identify the correct statement about 'echo boomers.'
a. They tend to rely on others for their success.
b. They want a family and home but place a higher priority on their professional career.
c. This age group is a declining percentage of the population.
d. Their behavior is the result of their growing up during the years leading up to and
following the end of the Cold War.
e. They were the first to grow up with the Internet in its developed form.
Mike's Appliances bought a refrigerator for $480. The initial price on the refrigerator
was $950, but it was ultimately sold for $825. What were initial and maintained
markups, respectively?
a. 36.3 percent; 57.0 percent
b. 46.3 percent; 58.2 percent
c. 49.5 percent; 41.8 percent
d. 50.5 percent; 58.2 percent
e. 63.7 percent; 43.0 percent
Which type of retail establishment is least likely to adopt scrambled merchandising?
a. An ATM
b. A drugstore
c. A supermarket
d. A specialty store
e. A convenience market
As a general rule, retailers should strive for an asset turnover of:
a. 1.0 to 1.5 times.
b. 1.5 to 2.0 times.
c. 2.0 to 2.5 times.
d. 2.5 to 3.0 times.
e. 3.0 to 3.5 times.
Pricing a product at $49.98 instead of $50.00 is called:
a. trading down.
b. price pointing.
c. odd pricing.
d. price lining.
e. even pricing.
Dorothy Lane Market offers weekly cooking classes. These demonstrations are an
example of the retailer providing its customers with:
a. transaction service.
b. convenient hours.
c. informational aids.
d. personal selling.
e. pretransaction service.
The consensus among retail location experts is that the U.S. is currently:
a. understored.
b. in need of more shopping centers.
c. overstored or highly saturated.
d. lacking in retail growth capital.
e. building too few new retail sites.
A GIS is a computerized system that combines physical and spatial geography.
A cash discount with the terms 2/10, net 30, means that the bill is due in full within two
weeks or 10 business days in order to claim a 30 percent discount.
Inventory is the largest investment a retailer makes.
Gen Y consumers, who are also called echo boomers, are those born between the years
1978-1994.
On the way to market for the first time, you continually think about the last thing your
boss said to you: 'You should always study vendors with the vendor profitability
analysis statement and the confidential vendor analysis before meeting with any
vendor.' What are these, why are they important, and how would you use them?
Profits sufficient for survival and growth would be difficult, if not impossible, to
achieve if the retailer ignored the supply chain.
Brand aspirationals are wealthier shoppers who love deals.
What psychological factors should be considered when merchandising stores?
Superior performance at any point in time is the result of achieving a competitive
advantage in the marketplace as a result of some tangible or intangible entity.
