Intro to Retail - Final Exam
What type of retailer would LEAST likely benefit from the use of a distribution center?
A supermarket
Which of the following statements does NOT describe how retailers use a customer lifetime value (CLV)?
A customer who spends $800 twice a year has a higher CLV than a customer that spends $100 each month.
Prohibits employment discrimination against qualified individuals with disabilities
ADA
Protects individuals who are 40 years of age or older
ADEA
Which of the following does NOT describe a aspect of a grid layout?
It provides a visually exciting design.
Which of the following statements is true of a tiered reward structure?
It provides an incentive for customers to consolidate their purchases with one retailer to reach the higher tiers.
Why was odd pricing used in the early twentieth century?
It reduced losses due to employee theft.
JC Penney was the name of the founder of the namesake retail chain. JC stood for :
James Cash
A retailer that only sells products through digital means is referred to as a [____] player
Pure
_____ help in measuring a customer's CLV by using the data collected about customers.
Retail analytics
Why is it important for stores to be designed with flexibility in mind?
Retailing is a dynamic business, and retailers need to keep changing the merchandise mix offered.
Which of the following is NOT descriptive of a trade show?
Trade shows are often associated with wholesale market centers.
The most dangerous type of retail thief is the _______ shoplifter.
habitual
Hard or soft goods: Baseball uniform pant
hard (sports equipment)
A multi-channel retailer is one that:
sells merchandise or services through more than one channel.
CPFR partnerships require:
trust and commitment.
Which of the following statements is true of the ABC analysis?
The SKUs in a merchandise category are rank-ordered by several performance measures.
From the Value Attitude and Lifestyle (VALS) framework, which psychographic market segmentation does this narrative best describe? They have goal-oriented lifestyles and a deep commitment to career and family; social lives reflect this focus and are structured around family, their place of worship, and work; value consensus, predictability, and stability over risk, intimacy, and self-discovery; active in the consumer marketplace with many wants & needs and image is important to them.
Achievers
A clothing retailer realizes that its customers desire the latest clothing designs and accordingly maintains selection. Which criteria for evaluating retail segments is seen in this example?
Actionable
Which of the following is a group of consumers with similar needs which the retailer plan to focus its resources and retail mix?
Target market
What are the basic shopping goals of a customer that depend on a store's environment?
Task completion and recreation
Which of the following retail stores is most likely to have a racetrack layout?
Ted's department store
Which of the following statements does not describe the benefits of utilizing distribution centers over direct store delivery?
The use of distribution centers increases inventory investment.
An HR system that replaces hierarchies and bosses with distributing power and self management is ___________ .
holacracy
Competing retailers agreeing to sell products at set prices so as not to compete is called ___________.
horizontal price fixing
A(n) _____ indicates the decision variables set by the buyer, such as product availability, the backup stock needed to provide the product availability, and the order points and quantities.
inventory management report
The opportunity for a retailer to achieve higher profit on the merchandise sold and most control over pricing are benefits of having [________] brands
manufacturer national private sub umbrella
Many products in a supermarket can be found in more than one place throughout the store. Which retail analytics are referenced when deciding where to place products in multiple places in a store?
market basket analysis
Since Yolanda used _____ to analyze what her customers often buy together during a single store visit, she knows to place facial tissues by the cold medicine and Wonder bread by the Skippy Peanut Butter in her store.
market basket analysis
Best Buy is a category specialist for the electronics industry. This means the stores _____.
offer a narrow but deep assortment of merchandise
Select the two locations that are best suited for impulse products -
the right hand side of the store by the check out areas
Which of the following is NOT an element for efficient supply chain management?
the right price
Off-price retailers will often sell merchandise less than the MSRP which means:
the merchandise is sold below the suggested retail price.
Conversion rate can be described as:
the percentage of customers who enter a store and buy products from that same store.
An open-to-buy system compares:
the planned and actual end-of-month inventory.
JC Penney's "Golden Rule" store was different than others because
they had set prices
Retailers proactively engage in enforcing the labor practices of their suppliers because:
they want to ensure a safe and healthy work environment for laborers.
A(n) _____ identifies the performance of individual SKUs in the assortment plan.
ABC analysis
A retailer's yearly comprehensive summary to shareholders and potential investors is referred to as ____________ .
an annual report
When using the _____, the retailer simply describes the site and trade area characteristics for its most successful stores and attempts to find a site with similar characteristics.
analog model
Products, content, offers, ads, searches, ___________ in which Kohl's can develop a personalized connection with a customer.
are assets
Web, mobile, email, call center, and in-store ___________ interaction points with the customers.
are channels of
Grid store layouts:
are cost-efficient.
When inventory levels, inventory investment, and total assets are low, _____.
asset and inventory turnovers are high
Retail locations that are unconnected to other retail stores, and that are destination stores are located ____________ .
at freestanding sites
A legal presumption in all of the USA (except Montana), where either an employer or an employee may, with no adverse legal consequences, terminate the employment relationship for any legal or no reason is called [________] employment.
at will
As you enter Yesteryear, a vintage clothing boutique, you're aware of how inviting the store is for browsers. The entire lighting is from floor and table lamps. The music plays Benny Goodman serenades, and the air smells like powder. The walls are covered in vintage floral wallpaper. This design which stimulates customers' senses is called _____.
atmospherics
What ideally needs to happen for the customer in the transition zone or landing strip?
become acclimated to the store
Many states ban the sale of alcohol or automobiles on Sundays; this is due to _______ _________.
blue laws
When shoppers start down an aisle, select something and then instead of proceeding in the same direction, they turn around and retrace their steps without looking around is referred to as the __________.
boomerang factor
The free-form layout is also known as the _____.
boutique layout
Why do category specialists call themselves "category killers"?
By offering a complete assortment in a category at low prices, category specialists can "kill" a category of merchandise for other retailers.
Which of the following is NOT an element in the retail mix?
Competitive response
The type of retailer that focuses mostly on soft goods, carries both national and private brands, and has a wide breadth with a high ambiance would be best desribed as a(n):
Department store
More retail transactions take place online now than in stores
False
According to the most recent top USA retailers from NRF, what is the 4th largerst volume retailer in the USA?
Home Depot
Daily Needs and Smart Saves are two large retailers in Canada. They compete with each other using similar marketing strategies. Which form of competition is seen between these two retailers?
Intratype competition
Which of the following statements about retailers holding inventory is FALSE?
It allows customers to get the lowest price possible
What is retailing?
It is the set of business activities that adds value to the products and services sold to consumers for their personal use.
Which of the following is a third tier department store?
JCPenney
According to the most recent top USA retailers from NRF, who is the 2nd largest USA retailer?
Kroger
_____ is a purchase decision process involving a moderate amount of effort and time.
Limited problem solving
Which type of retailer is Save-A-Lot considered to be?
Limited-assortment supermarket
Kohl's new version of an "off-price" store similar to a TJ Maxx, Marshalls or Ross is titled:
Off-Aisle
What type of store is TJMaxx considered to be?
Off-price retailer
The type of retailer that is mostly known for inconsistent assortments is best described as a(n):
Off-price store
Samson's is a large clothing retailer. The store offers over 1,000 brands and 50,000 different products. Which of the following value-creating activities can best be seen in the given example?
Offering assortments
Which of the following businesses would not be considered a retailer?
Proctor & Gamble
Which of the following is true of the career opportunities offered by the retailing industry?
Retail managers are often given considerable responsibility early in their careers.
How can a service retailer best cope with the problems associated with the intangibility of service?
Solicit customer evaluations and complaints.
Retailers that have narrow product variety and deep assortments are best described as:
Specialty stores
A retailer that sells designer clothes and accessories has a pop up ad on Facebook that features their new collection. Which method for satisfying customers' hedonic needs has been used?
Stimulation
What type of store is Meijer considered to be?
Supercenter
Which of the following is the biggest threat to convenience stores?
Supermarket chains and discount stores that also offer gasoline
With respect to retailing, which of the following best defines variety?
The number of merchandise categories a retailer offers
Which of the following is true of single-store retailers?
They are not bound by the bureaucracies inherent in large retail organizations.
Why are category specialists sometimes called category killers?
They can dominate a category of merchandise making it difficult for other retailers to compete.
Which of the following statements is true of department stores?
They often resemble a collection of specialty shops.
Which of the following is true of off-price retailers?
They sell brand-name merchandise at reduced prices.
How can a service retailer best cope with the problems associated with the inconsistency of service?
Train and motivate service providers.
Retailing offers entrepreneurial opportunities.
True
The development of information systems is one the forces facilitating the growth of large retail firms
True
There are over 1 million retail establishments across the U.S. and the majority of these retailers are small businesses.
True
After many years of doing his laundry at a public laundromat, Brett was glad to move into an apartment with washer and dryer hookups. He planned to buy a washer and dryer to save time and money. Which of the following needs would the purchase satisfy?
Utilitarian needs
_________ refers to the number of different merchandise categories a retailer offers.
Variety
Who is the largest retailer (both in the US & the World)?
Walmart
One of the current trends in retailing that Kohl's shared that was impacting many product categories of theirs from apparel to footwear to home was Active & ___________
Wellness
In the late 1950's, JC Penney was the only one on the board of directors who was against
allowing credit card transactions.
Florals is a popular retail chain specializing in women's lingerie and perfume. It designs and sources their own private-label merchandise being sold in the store. Therefore, Florals is practicing _____.
backward integration
Every morning, Peter goes to one of the nearby convenience stores and buys a carton of Levin's chocolate milk for breakfast. When the store is out of Levin's, Peter goes without milk rather than buying other popular brands of chocolate milk. Therefore, Peter has a high:
brand loyalty
Professor Murray (or Dr. Murray, or just "Murray") has retail industry experience in
buying, planning and product development
Convenience stores _____ than supermarkets.
charge higher prices for similar products sold
What is the acronym "CPG" for? (What do the 3 letters represent?)
consumer package good
New retail formats are created and evolve because _______________.
consumers' needs, wants and competition change
The pattern of buying both premium and low-priced merchandise or patronizing both status-oriented retailers and price-oriented retailers is called _____.
cross-shopping
With respect to retailing, assortment is often referred to as the _____.
depth of merchandise
A company in the final stage of integrating corporate social responsibility into its strategies
engages in responsible activities for the well-being of everyone.
What type of store is Dollar General considered to be?
extreme-value retailer
Purchasing from factories that pay workers a living wage (more than the minimum wage) and offer other benefits to the employees is called _____.
fair trade
Prime Industries Inc. is a large company producing a wide range of chemicals. The company recently installed a waste water treatment facility in its premises. It believes that releasing water containing chemical waste into the river would harm the entire population of the city. Thus, it is in the _____ stage of incorporating corporate social responsibility.
final
A physical store that is not part of a mall or shopping center would be considered a __________ store.
free standing
A retail mix is developed to:
implement a retail strategy.
While waiting in the checkout line at Essentials, Autumn spotted a nail care kit displayed amongst the candy and batteries. She liked it and asked the cashier to add it to her bill. Which form of limited problem solving did Autumn engage in?
impulse buying
Which type of consumer decision-making process will MOST likely result in an impulse buy?
limited problem solving
When owning and operating JC Penney, the man JC Penney referred to the store managers as
partners
During the limited problem solving process, customers tend to rely on:
personal knowledge
The drugstore industry has seen a decrease in their annual sales mainly due to _____.
pharmacies in full-line discount stores
Retailers stimulate sales from customers engaged in extended problem solving by:
providing the required information in an understandable manner.
A _____ is a business that sells products and/or services to consumers for their personal or family use.
retailer
Is "Jewelry" soft or hard goods?
soft
Alfani (women's fashion), Hotel Collection (luxury fabrics), and Tools of the Trade (housewares) are examples of Macy's _____.
store brands
A(n) _____ is a set of firms that make and deliver a given set of goods and services to the ultimate consumer.
supply chain
A(n) ______________ is a set of firms that make and deliver a given set of goods and services to the ultimate consumer.
supply chain
A _____ refers to the market toward which a retailer will direct its efforts.
target market
A retail strategy is made up of the the retailer's competitive advantage, the retail format and the _____________ ____________ (2 words).
target market
A retailer sells products & services to __________.
the end user
The most salient reason to invest in a franchise is:
the recognition of a well known brand name
A retailer's primary competitors are other retailers that:
use the same type of store format
Retailers encourage impulse-buying behavior by:
using prominent point-of-purchase displays.
Fresh n Fragrant is a chain of flower shops offering a variety of flowers and ornamental plants. It recently opened a distribution center to supply ornamental plants and cut flowers to all its stores within a 300-mile radius. From the given scenario, it can be seen that Fresh n Fragrant is practicing _____.
vertical integration
Dailies is a large retail chain in New Jersey. Apart from selling to customers, Dailies supplies bread and vegetables to a large number of restaurants in and around New Jersey. Therefore, Dailies is engaged in _____ when selling to restaurants.
wholesaling
Theft impacts the profitability of retailers, hence they sometimes need to increase their prices to cover their losses. This results in impacting each consumer about $______ on average per year. [cost per customer]
$400
It costs retailers on average approximately _____________ to hire and train each new store employee.
$4000
_____ forms the basis of the social factors influencing people's buying decisions.
Culture
Which area would be most likely to determine markdowns for products?
Planning and Allocation
What chapter should students read just prior to the class meeting on March 21? (Just provide the #)
10
A buyer would typically report to a :
DMM
Which retailer is a co-op?
REI
What does the acryonym SKU stand for?
Stock keeping unit
Hard or soft goods: Shoes
soft
Which of the following would NOT affect the operating costs of a store?
Congestion of people and cars
Prior to academia, Professor Murray (or Dr. Murray or just "Murray) worked for retailers such as:
Galyan's (now Dicks Sporting Goods), Sportmart and BonTon
In the customer pyramid, which of the following segments consists of customers with the top 25 percent CLVs?
Platinum segment
The two things merchants (buyers and planners) are primarily concerned with or responsible for are: ____________(one word) and ______________ (one word)
1. speed 2. Profit
An appliance store has total assets of $2,800,000, accounts receivable of $900,000, accounts payable of $700,000, inventory valued at $1,500,000, and total liabilities of $2,500,000. In 1999, its net sales were $2,100,000, and its operating profit margin equaled $42,000. Calculate the store's return on assets.
1.5%
Demographic information about a trading area for a potential retail site can be obtained from the US Census. The U.S. Census is completed every _____ years.
10
Online retails sales are approximate _____ of total US retail sales.
10%
___ of a store's customers will go more than halfway into the store.
10%
What is the date of this largest online shopping day in the world?
11/11
In caparison to Wal-mart, Costo does approximately _____ times more sales volume per average store location.
2.5
The USA has approximately ______ square feet of retail space per person.
46
A retailer using a promotion of BOGO is really selling two products at [__] percent off each.
50
Total inventory shrinkage attributed to employee theft is approximately $__ billion annually in the U.S.
50
Retailer Joe was short on time, so rather than doing any pricing analysis or competitive shops, he just keystoned every item for sale in his skateboard shop. The initial mark-up percent that Joe is using is:
50%
Calculate the return on assets for a gun shop that has total assets of $410,000, current assets of $74,000, total liabilities of $280,000, accounts receivable of $12,000, net sales of $64,000, and operating profit margin of $30,000.
7.3%
Father Christmas is a retail store that sells a unique Santa made from fur, wool, and tapestry. If 150 customers wish to buy a Santa from this store, and it sells 120 before running out of stock, what is its service level?
80 percent - Product availability is defined as the percentage of the demand for a particular SKU that is satisfied. For instance, if 100 people go into a PetSmart store to purchase a small, Great Choice, portable kennel but only 90 people can make the purchase before the kennel stock is depleted, the product availability for that SKU is 90 percent.
A drugstore purchases hand cream at $2 per jar and retails them for $15. What is their initial markup percentage?
87%
In referencing the Spring 2018 schedule for this course. What is the date that the Why We Buy paper is due?
April 15
_____ is the segmentation scheme which is based on the principle that "birds of a feather flock together."
Geodemographic segmentation
Which of the following segmentation methods would be most appropriate for a retailer selling beach apparel?
Geographic segmentation
Which of the following statements does not describe the benefits of a pull strategy?
All of these statements are benefits of a pull strategy.
The top online retailer is __________.
Amazon
The Bookstore Café is a small restaurant located in a downtown business district. It is opened for breakfast and lunch and serves simple yet nutritious meals as well as books from the New York Times bestseller list. How would you categorize the book inventory, cooking equipment, tables, chairs, and the register?
As assets
Which of the following is an integral part of the strategic profit model?
Asset turnover
_____ of a retailer's merchandise is the number of SKUs within a subcategory.
Assortment
_____ refers to the design of an environment by stimulation of the five senses.
Atmospherics
_______ is an unlawful, deceptive practice which lures customers into a store by advertising a product at a lower-than-normal price and then, once they are in the store, induces them to purchase the higher-priced model.
Bait and switch
_____ occurs when a consumer goes into a store to learn about different brands and products and then searches the Internet for the same product sold at a lower price.
Showrooming
Where is the corporate headquarters (where buying and product decisions are made) for the largest retailer in the world?
Bentonville, Arkansas
In which of the following stores would you be most likely to encounter a four-way fixture?
Bloomingdales
When Lana went to Bookdreams.com to look for books on health and wellness, she saw a personalized greeting and books recommendations. The greeting and books recommendations were based on her previous visits to the site. Which of the following best describes how Bookdreams.com knew that Lana has accessed their site?
Bookdreams.com placed cookies on her computer to identify her.
Out of the off-price stores analyzed, which off-price store does the most volume per average store?
Burlington
Which area is usually responsible for analyzing consumer trends and ensuring the product assortments reflect this accordingly?
Buying/Merchandising
Which area is usually responsible for providing ad copy specifics and samples for advertising?
Buying/Merchandising
Which area would be most likely to determine the initial price of a product?
Buying/Merchandising
Which area would be most likely to give direction to visual merchandising and store planning about incoming products and display needs?
Buying/Merchandising
How does a national retailer benefit from selling private-labels?
By selling private-labels, a national retailer can differentiate its assortments.
UBM Fashions owns one of the largest softlines tradeshows that takes place twice a year in Las Vegas during February and March. The overall 5 letter acronym for this tradeshow is: [_____]
MAGIC
_____ form a part of the microenvironment that influences retail management decisions.
Competitors
_____ is the segmentation method that uses multiple variables to identify customers in the target segment according to their benefits sought, lifestyles, and demographics.
Composite segmentation
The three letter acronym for the largest hardgoods tradeshow is: [___]
CES
According to the most recent top USA retailers from NRF, what is the 5th largest volume retailer in the USA?
CVS
Of the top 5 USA Retailers, which retailer has the most stores?
CVS
Longer distances from distribution centers to the stores, more frequent one way loads and the need for heated trailers are some of the logistical challenges in __________.
Canada
What country does the majoring of the sales come from on this largest online shopping day?
China
A retailer that is owned and controlled by "members" where costs are kept low, wages are kept high, and no profits are expected is best described as a(n):
Co-op store
Which of the following items has the most price elasticity?
Coca Cola 20 ounce
If you were to ask Roland to recommend a restaurant in Charleston, South Carolina, he would tell you to go to Vendue Range, The French Quarter or California Dreaming. There are obviously many restaurants in Charleston, but these are in Roland's:
Consideration set
According to the most recent top USA retailers from NRF, who is the 3rd largest USA retailer?
Costco
_____________ is a method of entrepreneurs to raise money from various individuals to support a particular project,
Crowdfunding
Which of the following principles explains the success of a shopping center whose tenants include Kohl's, Walmart, and Dick's Sporting Goods?
Cumulative attraction
_____ indicates that customers are committed to purchasing merchandise and services from the retailer regardless of competing retailers' enticements.
Customer loyalty
Which of the following statements about Internet retailing is TRUE?
Customers can have more personalized information on products.
What is an advantage of selling private-label brands for a national retailer?
Customers can't compare prices for private-label products because of their exclusivity.
What is the advantage of free-form layout to the consumer?
Customers feel they are in an intimate and relaxed environment and are more likely to buy.
Which of the following statements is TRUE of the customer pyramid?
Customers in the lead segment buy merchandise on sale or abuse return privileges.
Which of the following is a drawback of selling private-label merchandise?
Significant investment is needed to develop, manage, and market private-label brands.
Which of the following is an advantage of using distribution centers over direct store delivery?
DCs enable the stores to carry less inventory
In which of the following stores would you be most likely to encounter a four-way fixture?
Dazzle, a fashion apparel store
Managers in retail make many different decisions regarding their business. A decision that would NOT be a part of retail management is:
Deciding which customers can buy what products
What is the result of the "butt-brush" factor occuring?
Decrease of sales
Which of the following is typically the step after conducting a competitive analysis during site selection?
Define present trade area
What is the first step in merchandise management planning?
Developing a forecast for sales
_____ occurs when a retail firm invests in and owns a retail operation in a foreign country.
Direct investment
A retailer that carries both hard and soft lines, with a wide breadth, shallow depth, usually freestanding store, centrally located checkouts and a low profit margin percent best describes which type of retailer?
Discount store
Sara, who works at WorldFly LLC, is responsible for coordinating deliveries to the distribution center. Which of the following terms best describes Sara's role?
Dispatching
________ is a system where retailers receive an order from a customer and then have the product shipped directly to the customer from the vendor.
Drop-shipping
_____ are taxes collected by a government on imported merchandise.
Duties
A retailer has to confirm the receipt of an online shipping order to its customer. Which of the following mediums is best suited for this purpose?
How can the use of an EDLP strategy increase a retailer's profit margin?
EDLP reduces the retailer operating expenses because employees do not have to spend time continually making price changes.
Provides oversight and coordination of all federal employment regulations, practices, and policies Correct!
EEOC
Which of the following best defines a stock-keeping unit?
Each different item of merchandise offered by a retailer
_____ is the computer-to-computer exchange of business documents from the retailer to the vendor, and vendor to retailer.
Electronic data interchange (EDI) system
Which of the following actions is a way to reduce the delivery gap?
Empowering employees at the firm's lowest level
Roselle was upset with the service she received when she was trying to purchase a handbag at a store. First, the salesperson seemed preoccupied with a conversation with another associate. When she finally acknowledged Roselle's presence, the salesperson offered no assistance to Roselle and had minimal information about merchandise. Roselle plans to make a formal complaint to the management. What should the store manager do to recover from this service failure?
Encourage the customer to complain without interruption and then give a sympathetic response.
Protects those who perform substantially equal work in the same establishment from gender-based wage discrimination.
Equal Pay Act 1963
Which of the following steps is typically the next step after evaluating strategic alternatives in the strategic retail planning process?
Establishing specific objectives
Target Field in Minneapolis, Minnesota, "Home of the Twins" baseball team venue is an example of what type of communication method?
Event sponsorship
This once online only retailer found that customer prefer to touch apparel, footwear and accessories before they buy AND people prefer to return or exchange items in person. This same retailer emphatically vowed to never open physical stores and now has opened stores in NYC and San Francisco:
Everlane
Primark is said to be utilizing Walmart's pricing strategy. What is this strategy called?
Everyday Low Pricing
What happens when retailers and vendors do not coordinate their supply chain management activities?
Excess inventory builds up in the system.
The labels Jennifer Lopez and Lauren Conrad at Kohl's are what type of brands?
Exclusive
Which of the following is NOT a benefit of a store channel shopping experience?
Expanded assortments
If a student in Intro to Retailing will miss class, it is necessary to email the professor.
F
Mandates minimum wages, maximum hours, child labor standards and overtime-pay provisions
FLSA
_____ is a socially responsible movement that ensures that producers receive adequate prices for their products.
Fair trade
_____ consist of items that are only in demand for a relatively short period of time.
Fashion merchandise categories
Which of the following merchandise systems focuses on staying as close to out of stock as possible?
Fashion merchandise management system
Lezos LLC, a chain of international restaurants, has operations in more than 50 countries around the world. The company has a practice of investing in projects long enough for them to become successful. Which of the following is most likely a reason for the success of Lezos in international markets?
Financial resources
The highest classification level of a merchandise group is managed by a VP or:
GMM
The largest mall management company in the USA is:
Simon
If you miss a class, what should you do?
Get the notes from a classmate & stay caught up with the online quizzes
Which of the following store designs contains parallel aisles with merchandise on shelves on both sides of the aisles?
Grid layout
Operating profit margin is:
Gross margin less selling, general and administrative expenses
What kind of consumer decision making process is MOST closely associated with store loyalty?
Habitual decision making
Which retailer would be least dependent on traffic counts?
Home Depot
_____ means that the retailer is able to determine which customers are in the market segment.
Identifiable
According to the book "Why We Buy" by Paco Underhill, what is the "butt-brush factor"?
If merchandise is too close to other racks, or high traffic area, people might get bumped, touched, or brushed
Which of the following is a benefit of efficient supply chain management?
Increase in product availability
From the Value Attitude and Lifestyle (VALS) framework, which psychographic market segmentation does this narrative best describe? Very active consumers, and their purchases reflect cultivated tastes for upscale, niche products and services. Image is important, not as evidence of status or power but as an expression of their taste, independence, and personality. Their possessions and recreation reflect a cultivated taste for the finer things in life.
Innovators
_____ makes it hard to provide and maintain high-quality service because retailers cannot easily measure or check the service before it gets delivered to customers.
Intangibility
Which retail channel provides the most product information for the consumer purchasing products?
Internet
Which of the following is an example of a productivity measure?
Inventory turnover
What is the outcome when a retailer sells counterfeit merchandise?
It can destroy the relationship with the vendor of the legitimate brand.
Which of the following statements is true of central business districts?
It has limited vehicular traffic.
Which of the following statements does NOT describe personalization implemented as a CRM program?
It helps retailers to convert their unprofitable customers in the lead segment in the customer pyramid to best customers.
Which of the following best describes the free-form layout?
It is an aesthetically pleasing design and displays limited merchandise.
Which of the following is most supportive of customer loyalty?
It is an emotional and personal connection between a retailer and a customer.
Which of the following statements is true of customer loyalty?
It is an emotional connection between a retailer and a customer.
Which of the following is true of collaborative supply chain management?
It is difficult to implement these strategies when sourcing globally.
Which of the following statements is true of frequent-shopper programs?
It is hard to gain competitive advantage with CRM as programs can be duplicated.
Which of the following statements about receiving, checking, marking, and ticketing is true?
It is more efficient for a retailer to perform ticketing and marking at a DC than in its stores.
Jenny runs a produce stand in an inner-city neighborhood. With the recent layoffs, she has become popular because she gives her day-old produce to the local charity. Which of the following benefits does Jenny gain by donating produce to the local charity?
It offers her strong public relations benefits.
How does optimization software help retailers in taking markdowns?
It updates pricing based upon actual sales and factors in differences in price sensitivities.
In which of the following stores would you be most likely to encounter a straight rack?
Kohl's department store
What retailer is the largest customer of Li & Fung?
Kohls
Which of the following is a condition that may lead to competitive rivalry?
Large number of competitors of the same size
_____ is the amount of time between the recognition that an order needs to be placed and the point at which the merchandise arrives in the store and is ready for sale.
Lead time
Why are inventory carrying costs higher for retailers who source internationally?
Lead times are longer, and there is a need to maintain higher levels of safety stocks.
_____ is the process by which a person attempts to influence others to accomplish a common goal or task.
Leadership
Harley Davidson stores sell merchandise which interest people who love motorcycles and the idea of the open road and freedom. Some are bikers and others are those who do not have a Harley Davidson motorcycle, but buy the HD logo apparel and accessories anyway. Harley Davidson would focus on which of the following segmentations?
Lifestyle
______________ are open-air shopping centers composed mainly of upscale apparel shops, boutiques, and gift shops carrying selected fashions or unique merchandise of higher quality and price along with restaurants and entertainment, and are therefore usually located in higher-income areas.
Lifestyle centers
_____________and personalized recommendations of complementary merchandise on internet shopping sites replicates a well trained store salesperson.
Live chats
Which of the following is set by vendors by withholding benefits such as cooperative advertising or even refusing to deliver merchandise to noncomplying retailers?
MSRP pricing
Funds a retail may request for from a vendor to compensate for missed gross margin plan is referred to as: [two words, no symbols]
Markdown Money
Select the growth strategy the best supports this description: Target stores have over 20 locations in the Minneapolis and St.Paul Minnesota, "Twin Cities" area.
Market Penetration
Which of the following terms best describes the type of data analysis that focuses on the composition of products purchased by a customer during a single shopping trip?
Market basket analysis
In which of the following stores would you be most likely to encounter a rounder as a common fixture?
Marshall's, an off-price clothing retailer
Which of the following is the process by which a retailer attempts to offer the appropriate quantity of the right merchandise, in the right place and at the right time while meeting the company's financial goals?
Merchandise management
Tiana works for a national retailer planning what merchandise will be sent to the different geographical areas of the country and manages the budget of the department.
Merchandise planner
The example given in class describing how Ford Motor company now occupies a former Lord & Taylor location is an example of:
Mixed Use Development
"Manufacturer" brands are also referred to as [_______] brands.
National
If a retailer's gross margin is tracking below plan, which of these options would increase their gross margin?
Negotiate better prices with vendors to decrease cost of goods sold
Which of the following is not a function of a distribution center?
Negotiating with vendors
As Leah drove down Fairfax Road, she noticed a group of adjacent stores. In the group, she saw a hair salon, a pizzeria, a supermarket, an optometrist, and a grocery store. All the stores had entrances into a parking lot, which was landscaped with trees and flowers. What type of shopping center is this?
Neighborhood and community shopping center
Out of the department stores analyzed, which department store does the most volume per average store?
Neiman Marcus
What are buyers, planners and product developers typically evaluated on?
Net Sales, Gross Margin and Inventory Turn performance
_____ are the total revenues received by a retailer that are related to selling merchandise during a given time period.
Net sales
What best describes using all of the retailer's shopping channels to create a seamless and synchronized customer experience?
Omnichannel retailing
How do most consumers "discover" products?
On line
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 _____.
Planogram
When Whitney took over her father's sporting goods store, she evaluated some of her father's vendor relationships. She found that Rodney's Exercise Wear wasn't particularly profitable for the store. Although committed, his products were expensive, and he seemed inflexible. Whitney tried to work out a more amicable relationship with him by discussing her sales goals and new ideas for the coming year, but Rodney seemed uninterested. Which of the following elements crucial for maintaining strategic relationships is absent in the given example?
Open communication
Which of the following is an internal source of product information for a customer?
Past shopping experiences
Which of the following factors is considered by retailers in making merchandise allocation and promotion decisions specific to difficult economic times?
Paycheck cycle
Jake, who runs a health food store, finds it is rewarding to interact with customers who like to eat organic and health food. Hence, he is recognized in the local community. Which objective of retailing does Jake emphasize by this practice?
Personal objective
Glamour Looks is a beauty salon. It offers various skin and hair treatment packages based on customer requests. Which of the following types of services is Glamour Looks offering?
Personalized service
Which area are analytical skills most needed/important?
Planning and Allocation
Which area is usually responsible for managing the amount of purchases and inventory?
Planning and Allocation
Which area is usually responsible for replenishing inventory of basic products?
Planning and Allocation
Which area is usually responsible for working with logistics and the supply chain?
Planning and Allocation
_____ is used to present products when retailers offer a limited number of predetermined price points within a product classification category.
Price lining
Which of the following statements is true of the gold segment members in the customer pyramid?
Price plays a greater role in their decision making process.
Which of the following is a component of retail mix?
Pricing policy
Which of the following principles forming the basis of a new legislation on consumer privacy encourages retailers to treat consumer privacy as their default setting?
Privacy by design
Which area is knowledge of fabric and garment construction most needed?
Product Development
Which area will create new packaging and brands?
Product Development
Which area would be most likely to work most closely with quality control and a design team?
Product Development
Michael, an actor, plays the protagonist in a sitcom. As per his contractual obligations, he is required to be seen drinking Fizzy Cola, a brand of soda pop, at least once in every episode. Which of the following terms best reflects this situation?
Product placement
What is a way that retailers can reduce channel migration?
Promote private-label merchandise that can be purchased only from that retailer.
Lee just signed a lease for her lunch delivery business and is now ready to become involved in the employee management process of her business plan. What should Lee do first?
Recruit employees
Which of the following is typically the first step in the employee management process?
Recruiting employees
When contemplating sourcing products internationally, which of the following would NOT be an additional cost associated with global sourcing?
Reduced lead times
Diego began his first job out of college with a consulting firm, and wants to make a good impression upon his supervisors. He noticed the attire of the associates when he interviewed, and he decided to mimic them by wearing power-suits and Italian shoes. What social factor most influences Diego's wardrobe?
Reference group
Diego began his first job out of college with a consulting firm. He wanted to make a good impression on his superiors. He noticed the attire of the associates when he attended the interview and decided to dress in a similar manner. Which social factor has influenced Diego's dressing style?
Reference group
What is an "RDC"? (what does the acronym stand for)
Regional Distribution Center
_____ is to provide customer service personnel and sales associates that really want to help customers and provide prompt service.
Responsiveness
The Market @ Macy's enables companies to gain additional exposure to Macy's customers without a long-term commitment. The pop-up vendors pay a fee to Macy's for the space while keeping all the sales revenue. Space is rented with a one-month minimum requirement and rates are based on location. Select the growth strategy the best supports this endeavor:
Retail Format Development
__________ are applications of statistical techniques and models to find patterns in customer purchase data and make recommendations for improving the effectiveness of retailers.
Retail analytics
The Tackle Box is a store that sells anything you may need to catch fish including local information about what is running, where it's running and what bait works best. The fishing enthusiasts who rely on the Tackle Box for reliable equipment and information are the retailer's:
Retail market segment
How can retailers best minimize the negative impact of unprofitable customers?
Retailers can charge customers for the services they are abusing like a stocking fee for returned goods
Which of the following is true of store brands?
Retailers develop the design for these products in most cases.
Which of the following is a drawback for a retailer offering national brands?
Retailers have to discount some national brands in order to attract customers to their stores because customers compare prices for these brands across stores.
Which of the following terms describe the process of moving returned goods to the retailer from the consumer to the DC and then to the vendor for the purpose of capturing value or proper disposal?
Reverse logistics
Which of the following locations in a store is the most appropriate to place high margin products?
Right-hand side
Which of the following statements is NOT true of the merchandise classification scheme?
SKUs are the basic units of analysis for making merchandising management decisions.
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?
Signage
This retailer's strategy many years ago purchased store locations rather than leasing the store locations. As of late, this retailer has closed many of their locations and now actually leases the stores to other retailers. Who is this retailer that owns quite of bit of retail real estate? [Retail Real Estate Owner]
Sears
_____ categories consist of items whose sales fluctuate dramatically depending on the time of year.
Seasonal merchandise
Amazon's "Secret Sauce" per se is:
Selection Value Fast Shipping
[______________] pay may be offered by the employer to employees as a result from layoffs, job elimination or mutual agreement to part ways. This usually amounts to a number of weeks pay or for each year the employee supplied service to the company. For executives, this pay is often much more.
Severence
The largest online shopping day in world is:
Singles Day
Which of the following is an inherent limitation associated with asking the customer for identifying information for building a data warehouse?
Some customers may feel that the sales associate is violating their privacy.
Which of the following statements holds true for the purchase of staple merchandise?
Staple merchandise is purchased using a continuous replenishment system by monitoring sales and generating replacement orders.
_____ is a set of activities and techniques firms employ to efficiently and effectively manage the flow of merchandise from the vendors to the retailer's customers.
Supply chain management
Students must be present in class and participate in any in-class activity to receive points. There are no make-up points.
T
Fantasy and Stanley's are popular apparel stores. A Fantasy vendor has offered a Stanley's buyer an attractive discount on merchandise that had been returned to Fantasy by a different retailer. The Stanley's buyer realizes the high gross margin opportunity but refuses the offer nevertheless. Why?
The buyer wants to preserve Stanley's image as a fashion leader by not selling returned merchandise that could be out of season.
Which of the following is not true about U.S. census data?
The census track is the smallest geographic entity for which census data is available.
Which of the following is a typical store layout design used by grocery retailers?
The grid layout has parallel aisles with merchandise on shelves on both sides of the aisles. Its well suited for shopping trips in which customers need to move throughout the entire store and easily locate products they want to buy.
What is the potential byproduct of promotional markdowns?
The increased in-store traffic can lead to the purchase of other products at regular prices.
Which of the following statements is false in describing different categories of trade areas?
The primary trading area is the geographic area from which the shopping center or store site attracts 80% of its customers.
Which of the following statements does NOT describe the relationship between product availability and stock level?
The quantity of backup stock is fixed by a retailer and is not influenced by product availability.
Which of the following is a reason for the decline in the growth of newspaper advertising by retailers?
The retailers have begun using other media
Which of the following statements is a reason why U.S. retailers avoid opening stores in the inner city?
The retailers think these stores are riskier and produce lower returns than other areas.
How can a small town quilting supply store best compete against Wal-Mart, and still thrive?
The shop can offer classes on quilting.
Which of the following statements is true of the use of computer software scheduling systems?
The software analyses sales, transactions, and customer traffic for each time period.
The accounting records for Sports-R-Us, a superstore targeted at armchair athletes, showed that it had bought and received $1,830,000 worth of merchandise. An actual count of the merchandise in the store showed only $1,644,000 worth of merchandise in stock. What other information is needed to calculate inventory shrinkage?
The store's retail sales during the period
How do retailers and vendors ensure that the information that passes back and forth between retailers and vendors is secure?
The system ensures that the information received has not been tampered with by ensuring that the communication is both authentic and authorized.
Which of the following statements is a reason why some vendors and retailers chose not to adopt RFID tagging?
They believe the additional costs do not benefit the return on investment.
Why are retailers considered the most important part of the supply chain?
They can best gather and evaluate data regarding customers' wants and needs.
Which of the following does NOT accurately describe customer relationship management?
Through CRM, retailers try to increase the share of wallet with all customers.
Prohibits employment discrimination based on race, color, religion, sex, or national origin.
Title VII
_____ is a display technique in which large quantities of merchandise are displayed together.
Tonnage merchandising
If you were a buyer of video games and novelty items, you would most likely attend the [_______] tradeshow in NYC each February
Toy Fair
Which of the following types of leaders gets people to transcend their personal needs for the sake of the group or the organization?
Transformational leaders
Smaller docks requiring smaller trucks and more frequent deliveries are some of the logistical challenges at what type of stores?
Urban markets
Which of the following is an area in which a retailer can develop a long-term competitive advantage?
Vendor relations
Select the growth strategy the best supports this description: Russell Athletic harvesting their own cotton and manufacturing their own fabric for producing their apparel goods.
Vertical Integration
Which of the following would be an inappropriate question to ask in an interview?
Where were your parents born?
Advantages of this type of strategic assortments are: high level of customer traffic, customer loyalty and one stop shopping convenience for customers.
Wide and deep
Disadvantages of this type of strategic assortments are: customers are focused mostly on price, and customers may be dissatisfied with the little selection of products
Wide and shallow
Habitual decision making occurs when ___________.
a decision process involved little or no conscious effort
Bonnie wanted to paint her living room and had a specific type of paint in mind. When she entered the large home improvement store she saw that the paint department was in the far back of the store. This home improvement store must consider paint as ______________ .
a destination item
Catherine visited American Eagle, an apparel store, to browse through the new spring collection. The sales associate greeted her when she entered the store, showed her the new collection, and stayed with her throughout her shopping experience, bringing her additional items while Catherine was in the dressing room. This sales service can best be described as _____.
a personalized service
A retailer that is hard to get to, even if the customer can see it, has low _____.
accessibility
A retailer that is hard to get to, even if the customer can see it, has low __________________.
accessibility
The ___________ of a retail store site is the ease with which customers can get into and out of the site.
accessibility
How is m-commerce different than e-commerce?
accessing the Internet using a tablet or smartphone versus a computer
When Chris charges a gallon of chlorine for his pool at Pinch-A-Penny to his store account, he creates a(n) _____ for the retailer.
accounts receivable
At the Dick's Sporting Goods store, men's athletic clothing is across the aisle from athletic shoes. Therefore these product categories are ________ to one another.
adjacent
Which of the following are retailers NOT expected to provide for its disabled shoppers?
available sales staff
Randolph is the divisional merchandise manager for home products for Daisy's, a supermarket. At a recent trade show, he noticed small kitchen appliances being shown in retro colors like pistachio, eggplant, and cotton candy. Knowing the kitchen designs were moving in this direction, he decided to discuss it with his senior buyers to see if these retro colors would suit the Walmart market. Randolph is in the _____ phase of building strategic relationships.
awareness
Which of the following is the worst placement for new merchandise?
back of the store
Luring customers in for a specified product (advertising, promotions, displays, etc.) then not having the product (purposely) and instead selling a higher priced product to the consumer is referred to as:
bait & switch
What SKU is so popular at Walmart that it is their #1 item and they display this product in more than one location?
bananas
Compared to other retail formats, Internet shopping offers the benefit of:
broader and deeper assortments.
After selecting a target market and a retail mix, the final element in a retail strategy is the retailer's approach to:
build a sustainable competitive advantage.
A community in the southwest requires all places of business to have stucco outside walls of neutral color with clay roofing tiles in orange. This would be an example of a ____________.
building code
In a town in Georgia, the McDonald's restaurant was required by _____ to have no sign taller than 8 feet, no arches, and no garish or bright colors on the outside of the building.
building codes
How much of what is on display in that is actually seen by customers is referred to as the __________.
capture rate
As Garry was waiting to pay for a bottle of aspirin at a pharmacy, he added a copy of TV Guide, a Snickers bar, and a pack of cheese crackers to his purchases. The area where Garry made his TV Guide and Snickers selections is called a(n) _____.
cash wrap
When retailer's and brands sharing the costs of advertising and marketing, this is referred to as [______] advertising
co-op
In a national print advertisement, Levi's was showcasing their new denim jean products. At the bottom of the ad, Macy's logo was found as a place where the new denim jeans could be purchased by customers. This is an example of _______.
co-op advertising
[Two words] is when a buyer asks or receives something of value that influences their purchasing decisions. The offering of gifts and entertainment can sometimes be considered this. Buyers should make their decision solely on the basis of the vendor's performance and what is best for the retailer.
commercial bribery
Steve buys men's dress shirts for Martin's, a clothing retailer. At a recent trade show, he took the opportunity to see a few new vendors. During one meeting, a vendor proposed a ticket to a coveted college football game. Steve graciously declined because he was concerned he would be engaging in _____.
commerical bribery
The maintenance of common facilities, security, advertising, and special events to attract consumers are handled by the shopping center management and are covered under _____ costs.
common area maintenance
Donna is the sales manager at a store that sells musical instruments. She has developed a job description for each of her employees. These job descriptions will be used for all of the following but _____.
compensating employees
Increasing intertype competition has made it harder for retailers to identify their:
competition
Similar to the other rule-of-thumb methods, the _____ doesn't allow retailers to exploit the unique opportunities or problems they confront in a market.
competitive parity method
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.
controlling costs
A retailer considering fluorescent lighting versus LED lighting, solar power versus standard electricity, and local grasses versus typical grasses for landscaping would most likely be considering which design objective?
controlling costs
Rhonda rolled her eyes when she realized how much she had to pay for a pack of gum at the paper stand on her way to reach her departing flight from JFK. With security lines as long as they were, she knew she needed to hurry and pay the $2.75 for her pack of gum. Her purchase situation can best be described as:
convenience shopping.
A(n) _____ is a promotional program undertaken by a vendor and a retailer working together.
cooperative program
Popular national brands are placed next to a manufacturer's brands in a store and look like them. This kind of brand is called a(n) _____.
copycat brand
Goods made and sold without the permission of the owner of a trademark, copyright or patented invention are referred to as [_________] merchandise.
counterfeit
Both a weight-loss center and a health club would be pleased to learn that health and fitness, along with individualism, mastery and control, and self-improvement are core values common in the _____ of the U.S.
culture
A shopping center landlord who has the agreement to increase the rent by a fixed amount over a specified period of time has negotiated a _____.
graduated lease
A food court in a mall is an example of ___________________.
cumulative attraction
Retailer's have information about a customer that includes what she has purchased, the colors, sizes, and styles, and how she has responded to recent promotions. This information is collectively called:
customer database
The ______________ contains transactions, customer contacts, customer preferences, descriptive information such as demographic and psychographic data, and responses to marketing activities.
customer database
The expected contribution from the customer to the retailer's profits over their entire relationship with the retailer is the
customer life time value
Customer loyalty means:
customers are committed to purchasing from the retailer and will seldom shop at competing stores.
The place where the point of sale data is stored, and the organization uses to support its decisions is called a(n) _____.
data warehouse
When a regular customer calls a well-known pizza delivery restaurant, the order-taker types in the caller's name. The computer screen shows the customer's address, phone number, directions to his or her house, his or her usual order, and the date and frequency of orders. If the customer has not ordered during a two-month period, or the average number of orders has been down, then the pizza parlor mails them a coupon of their favorite pizza. Which of the following does the pizza parlor use?
data warehouse
Retail websites typically offer _____________ than the retail store channel.
deeper assortments
Characteristics such as age, gender, income, and education are considered:
demographics
The second highest level in the merchandise classification structure is the _____.
department
The objective of the CRM process is to:
develop loyalty and repeat-purchase behavior.
How could a fitness center best develop a sustainable competitive advantage over a national chain like Gold's Gym?
develop relationships with members offering unique work-out programs with designated instructors recommending specific routines to suit their needs
Customer relationship management (CRM) is based on the idea that retailers can increase their earnings by ____ .
developing a relationship with their better customers
If a name-brand product is found at an unauthorized (by the brand) retailer it is most likely _________ merchandise.
diverted
Operating profit margin, which is gross margin minus operating expenses, is also known as ____________.
earnings before interest, taxes and amortization (EBITA)
The store management is responsible for controlling their costs. What is the largest expense that they need to manage?
employee labor
The process of managers sharing poser and decision making authority with employees is called [___________].
empowerment
What is a retailer's most effective tool against shoplifting?
engaged employees
A(n) _____ strategy emphasizes the continuity of retail prices at a level somewhere between the regular nonsale price and the deep-discount sale price of high/low retailers.
everyday low-pricing
Product that is develop as a partnership between a celebrity and a retailer is referred to as a/n ________ brand.
exclusive
The only retailer that offers Fresh Sun organic food products is Daily Needs. Therefore, Fresh Sun is an example of a(n):
exclusive brand
Electronic retailers can collect transaction data for their data warehouse, but they can also collect information by placing cookies on a visitor's hard drive. Cookies are:
files that identify visitors when they return to a website.
Consumer buying patterns are shifting. Teens are now spending more on _______ than on clothing.
food
What product category has the most challenges for supply chain?
food
Which of the following is a typical store layout design used by specialty stores?
free-form
The _____ arranges fixtures and aisles asymmetrically.
free-form layout
Wilbur uses Books-A-Million customer card, Kash-N-Karry customer card, Blockbuster customer card, and Sandwich Shop customer card when he shops at any of these retailers. Each time he uses them, he gets rewarded with reduced cost, free merchandise, or a credit. These cards form a part of:
frequent-shopper programs.
Retailers that receive an online order and ship the product from a store's inventory, refer to the store as a ____________________________.
fulfillment center
A retailer's merchandise group is managed by a _____.
general merchandise manager (GMM)
Many urban areas are going through a process of _____________ which is the renewal and rebuilding of offices, housing, and retailers in deteriorating areas coupled with an influx of more affluent people that displaces the former poorer residents.
gentrification
The key feature of _____ data is that they are identified with a coordinate system (latitude and longitude) that references a particular place on Earth.
geographical information system (GIS)
When a retailer enters a new international market, owning and operating their own stores and building brand new stores, this is referred to as (a/n):
greenfield
Which of the following is a typical store layout design used by drug store retailers?
grid
Which of the following refers to the profit on the merchandise sold?
gross margin
An end-cap:
has high visibility
When negotiating with a vendor, the best outcome for a retailer would be to:
have mutual gain.
Research shows that 96% of people recognize the bullseye as being the logo for Target stores. This is a higher recognition percent than the Nike swoosh or Apple's logo for the iphone, ipad, etc.. It can be said that the Target bulleye logo has ___________.
high brand awareness
The retailer allocates the budget to areas that will yield the greatest return. This approach for allocating a budget is referred to as the _____.
high-assay principle
End caps are used for:
higher-margin, impulse, and sale merchandise.
Geraldo went to the supermarket to buy a bottle of chocolate syrup. While there, he saw the new National Enquirer at the checkout stand. He had not planned on buying the magazine, but on the spur of the moment, he bought himself a copy. This is an example of:
impulse buying
An efficient supply chain and information system can improve its return on assets (ROA) because the system _____.
increases sales and net profit margins, without increasing inventory
The Internet dramatically reduces the cost of a/an:
information search
A price experiment:
is method of determining the most profitable price for a product.
What sourcing strategy does Lbrands mostly use for their sourcing their products?
joint venture
Fast-fashion retailers will often view the fashions from designers and then create similar items referred to as ___________ to sell at a lesser price in their stores.
knockoffs
When developing a retail communication program, sales goals are set when the _____.
objectives are established
Bea is a young professional living in the suburbs. She and a friend decide to meet on a Saturday for a day of shopping, dining, and movie. With it being a beautiful day outside, they wish to enjoy the weather but also find a place that features upscale apparel shops and boutiques. They most likely will choose to patronize a _______.
lifestyle center
The marketing manager utilized a ____________________ to review patterns in the footwear department sales; she found that athletic socks were also purchased 80% of the time along with athletic footwear.
market basket analysis
A bagel shop which decides to open up an hour earlier every morning is taking advantage of a _____ opportunity.
market penetration
Cross-selling is most commonly practiced with the:
market penetration growth opportunity.
The _____ is the difference between the retail price and the cost of an item.
markup
The highest classification level in a buying organization is the _____.
merchandise group
Which of the following products would most likely require the greatest amount of information search?
mini-van
A key initiative in most retailers strategic plan is "m-commerce". The "m" stands for
mobile
What is the best tool for driving better customer personalization through CRM?
more data
Product that is designed, produced an dmarketd by a vendor and sold by many competing retailers is a/n ________ brand.
national
The imminent approach of Halloween pushes millions of homeowners to go out and purchase candy. Halloween stimulates a ______________ which is part of the buying process.
need recognition
Which of the following is NOT a function of a distribution center?
negotiating with vendors
Which of the following refers to the total number of dollars received by a retailer after all refunds have been paid to customers for returned merchandise?
net sales
A retailer that sells product online through their website but does not accept that product to be returned to their store if the customer is not satisfied with it is not yet fulfilling a(n) __________ strategy.
omnichannel
In _____, new employees work in specific jobs under the direct supervision of their managers.
on-the-job training
The process by which new hires get adjusted to the social and performance aspects of their jobs quickly and smoothly, and learn the attitudes, knowledge, skills, and behaviors required to function effectively within an organization is termed: [process of adjusting new hires]
onboarding
The day begins in each Wal-Mart store with the manager leading the famous Wal-Mart cheer. The cheer is a fun and energetic way to remind employees that the customer is always number one. For years, it has been the one way that the company has shared its enthusiasm and can be considered part of the __________.
organization culture
A store that does not create its own traffic and whose trade area is determined by the dominant retailer in the shopping center is considered a ______________.
parasite store
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) _____.
planogram
Breanne was walking across campus to her chemistry lab when she noticed an area that had posters displayed and for sale that was not there earlier in the week. This retail format would be an example of a ______.
pop-up shop
Infegy utilizes insights from ___________ to understand consumers buying patterns and sentiments.
social media
Shopping centers consisting primarily of collections of big-box retail stores, such as Walmart, TJMaxx, Home Depot, Dick's Sporting Goods, and Borders are called:
power centers
A retailer selling products at a price lower than their competitor for the purpose of causing their competitor to go out of business is using ____________.
predatory pricing
At the new store that opened, all the products were priced at $47.00, $77.00, or $97.00. What type of pricing practice is this reflective of?
prestige pricing
An appliance store wants to get customers who are buying an upright freezer to trade up to the more expensive self-defrosting model with a special section for ice cream. Which of the following practices can be used by the store to achieve this goal?
price lining
Bath & Body, Gap, Old Navy are best considered _______ brands.
private
Sonoma at Kohl's, Arizona at JC Penney and Archer Farms at Target are _________ brands.
private
Retailers can reduce showrooming by:
promoting private-label merchandise that can be purchased only from the retailer. - Three approaches that multichannel retailers can use to reduce showrooming are (1) providing better customer service, (2) offering uniquely relevant information based on proprietary data the retailer has collected about the customers, and (3) promoting private-label merchandise that can be purchased only from the retailer.
Retailers can reduce the delivery gap by:
providing employees the necessary skills and knowledge.
Often not planned, ________________ activities support other promotional efforts by generating "free" media attention and general goodwill.
public relations
When a retailer makes a generous contribution to a charity and the event is covered on the evening news, it would be a method of communicating through ______________.
public relations
An inventory planner notes that the inventory she is responsible for would be best managed by relying on consumer demand. She recommends to her management to implement a(n) _____ that would support being in a better stock position of her managed product by store location.
pull supply chain strategy
The shipping start and cancel date along with the payment terms is found on the ___________ .
purchase order
When merchandise is allocated to stores on the basis of forecasted demand and when a forecast is determined, specified quantities of merchandise are shipped to the distribution center and stores at predetermined time intervals. Which supply chain strategy does this describe?
push supply chain
Which of the following is a typical store layout design used by department store retailers?
race track
A _____ is a promise to customers to sell currently out-of-stock merchandise at the advertised price when it arrives
rain check
Which benefits does efficient supply chain management provide retailers concerning product availability?
reduced stockouts and tailored assortments
Left Lanta is a small retailer in Underground Atlanta, a historical retail district in that city. Here, the Lanta family sells items for left-handed people. Since the store is located in a kiosk near one of the entrances to the underground, it is often the target of shoplifters. Therefore, the store is forced to reduce the actual selling price of its products. The factors such as theft that cause the reduction in the selling price are called _____.
reductions
Using "regular price" or "original price" as the compare to price providing a perception of value is also called: ______ pricing
reference
A _____ is the price against which buyers compare the actual selling price of the product, and thus it facilitates their evaluation process.
reference price
Jack went to a bakery and ordered a dozen bagels for work. When he got to work, he discovered that the bagels were stale. The next morning he stopped by the bakery to complain. All of the following would be appropriate ways to deal with Jack's complaint EXCEPT:
referring him to other employees at the bakery.
A(n) _____ describes the nature of the retailer's operations that it will use to satisfy the needs of its target market.
retail format
Similarly to Wal-mart's backhauls, Target's delivery trucks will return from the stores with loads of recyclable material. This is referred to as (2 words):
reverse logistics
When the law office of Dewey, Cheatham, and Howe received the case of legal paper it had ordered from an internet office supply retailer, the office manager was dismayed to find the paper was pink even though it was marked white. The office manager packed the paper and sent it back to the retailer who in turn sent it back to the vendor. This is an example of:
reverse logistics.
In organized retail theft crimes, it is most effective to eliminate which role?
ring leader
A university's school spirit and demand for licensed product sales is part of their brand. Sales of licensed products generates [__________] revenue for the university .
royalty
Although retailers gain economies of scale from opening multiple locations in an area, they also could suffer diminishing returns associated with locating too many additional stores in an area. This is called:
sales cannibalization
Retailers must consider the trade-offs between lower operating costs and potential _____ from having multiple stores in an area.
sales cannibalization
To determine the productivity of store space, retailers are most likely to use ______.
sales per square foot
What sourcing strategy does Macy's and Ascena mostly use for their private brands?
satellite office
In a drug store, cosmetic store, book store or similar where many small items are offered, where is the best place to have shopping baskets (assuming carts are not necessary or offered)?
scattered all over the store
Retailers collect price data about their competitors to:
see if they need to adjust their prices.
A term for the action of customers who browse and inspect items in stores before they buy online is ___________.
showrooming
In store design, ensuring shoppers will be able to see what is in front of them and be able to look around and see what else is in the store refers to ____________.
sight lines
At supermarkets, it is common for the retailer to impose a charge to vendors to stock a new item on the retailer's shelves. This charge is referred to as [two words, no symbols]
slotting allowances
The famous designer Issac 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?
special event
Retailers can effectively use power displays like a __________ to cause shoppers to pause and "take in" the store.
speed bump
Discount, off-price and convenience stores typically used [_______] service to create a consistent experience for customers while minimizing costs.
standard
Zoe purchased a new pair of prescription eye glasses at Macy's and tried to use a Macy's 25% off coupon. The cashier explained that the coupon was not valid in the optical area because they were a _____________.
store within a store
Punk in the 70's/80's, Grunge in the 80's/90's, denim jeans, tie-dye and cowboy boots becoming fashionable are all examples of the _________ theory
subculture
By obtaining information about customer preferences, and past purchase behavior, retailers operating an electronic channel are able to:
tailor merchandise and recommendations.
Dust-free, clean, and organized stores with updated dressing rooms and kiosks are examples of a retailer's commitment to customer service through _____.
tangibility
Schnuck's Grocery Store is located in St. Louis, Missouri. The owner has taken a map and has drawn three different sized shapes around the store's location. Those people that are located in only the largest shape being beyond a 15 minute drive radius of the store are in what's referred to as the store's _____.
tertiary trading area
Compared to other retail formats, the greatest benefit that store shopping offers the customer is:
the ability to touch and feel the products
Compared to other retail formats, the greatest benefit that store shopping offers is:
the ability to touch and feel the products.
Murray's research regarding "Consumer Preferences in Resale Retailing" confirmed that consumers who prefer to shop at resale retailers such as Goodwill, Salvation Army, Buffalo Exchange, Plato's Closet, Rethreads, Ragstock, etc., are mosty motivated by _________.
the adventure of finding a bargain
Buyers have significant influence over _________.
the assortment of products offered
A retail strategy is a statement that identifies all the following EXCEPT _______.
the employee compensation plan
Reasons why more attending is on reversed logistics are all but:
the government restrictions on how many times a customer can return products to a retailer
When customers join the Daily Needs Reward Zone, they receive one point on every purchase they make at Daily Needs stores and DailyNeeds.com. Reward Zone points are converted to reward certificates which can be redeemed for merchandise at Daily Needs stores or on DailyNeeds.com. Reward Zone Members also receive exclusive offers throughout the year and a "special reward" for their birthday. This strategy by Daily Needs is an example of _____.
tiered reward system
Why do vendors and brands strongly encourage retailers to sell their products at MSRP?
to reduce retail price competition among retailers
To "stack it high and let it fly" refers to what type of merchandising display?
tonnage
Service excellence will occur only when the:
top management provides leadership and demonstrates commitment.
One of the most important factors affecting store sales is the number of vehicles and pedestrians that pass by the site, or the ________________.
traffic flow
Punk style first became popular during the 1970s and spead to fashions seen on the streets of London. In terms of the Fashion Adoption Process, this is an example of ____ .
trickle up
Which of the following does NOT describe a way to reduce the level of inventory in the supply chain and the number of stockouts in the stores?
using reverse logistics
Weekly grocery store shopping primarily fulfills a consumers ____________ needs.
utilitarian
Father Christmas is a retail store that sells a unique Santa made from fur, wool, and tapestry. The store does not sell any other product. Therefore, the store has little _____.
variety
Multichannel retailers struggle to provide an integrated shopping experience because:
various channels demand skills and unique resources.
The product's country of origin and fabric content is found on the __________.
vendor line sheet
Direct store delivery would most likely be used for what type of product?
video games
A store that is easy for potential customers to see has high __________________.
visability
A term for the action of customers browsing online before going to a physical store to make a purchase is ___________.
webrooming
Strategic retailers will map out competitors in the market place using different category desciptions on an X axis and on the Y axis to identify ___________.
white space
Put in order the average time shopping from least to most:
woman shopping with man woman shopping alone woman shopping with kids woman shopping with female friend
In a city, some parts of it are restricted to be for residents only, where other parts of the city allow for retail stores. This is an example of a ____________.
zoning
Approximately what percent of working people are employed in the retail industry?
20-25%
The US has approximately ___sq feet per capita of retail space.
23
Online retailing makes up about ____ of all retail sales.
10%
Retail contributes approximately ____ to the USA Gross Domestic Product
16%
