MKT 320 exam 4
If a retailer can sell an item for $6 and needs a 40% markup on selling price to meet profit objectives, that retailer should pay no more than _______ for the item. A. $2.40 B. $3.60 C. $4.10 D. $4.00 E. $1.80
B. $3.60
Which of the following pairs of items would retailers think of as the same SKU?
A 14.3-ounce package of Golden Oreo cookies and a 14.3-ounce package of Golden Oreo cookies
Regarding slotting fees, which of the following statements is true?
A slotting fee that is collected from General Mills by Kroger or Albertsons may excess $1 million
Arlo Marlowe owns an independent hardware and home-improvement store in a neighborhood shopping center. At the beginning of this year, the following sales associates were on Arlo's payroll: Blake Drake, Eric Merrick, Clyde Hyde, Yuri Curry, and Caylie Bailey. A few months into the year, Eric and Caylie both left to pursue new opportunities, and Arlo hired Joyce Royce and Martin Parton to replace them. A few months after that, Martin left to return to college full time and was replaced by Hollis Lawless. Shortly thereafter, Clyde retired and was replaced by Zach Slack. What is the employee turnover rate at Arlo's store, if no more employees leave between now and December 31? A. 80 percent B. 75 percent C. 125 percent D. 100 percent E. 60 percent
A. 80 percent
Which of the following examples best illustrates a hedonic need? A. Braxton Paxton buys an Xbox One console, controller, and subscription to entertain himself at home when he's not studying (or instead of studying) B. Kermit McDermott buts a new North Face down parka because his Patagonia fleece vest will not be warm enough for tomorrow's predicted low temperature C. Oprah Chopra buys paper towels, a shower curtain, a kitchen wastebasket, and bookshelves fir her first-ever apartment D. Terrell Burrell buys tires to replace the worn-out ones in his car E. Madison Radisson buys a new pair of shoes to wear to a job interview
A. Braxton Paxton buys an Xbox One console, controller, and subscription to entertain himself at home when he's not studying (or instead of studying)
Gross margin return on investment (GMROI) is a metric used by retailers to determine a(n) __________'s contribution to __________. A. buyer; ROA B. category; cost of returned merchandise C. department; inventory turnover D. single store; total chain-wide revenue E. SKU; net profit
A. buyer; ROA
When a vendor (such as Kimberly-Clark) splits the cost of advertising with a local retailer (such as all Rite Aid stores within a designated metropolitan statistical area) for one of its products (such as Kleenex), it is called ______________ advertising. A. cooperative B. back-channel C. brokered D. leveraged E. franchised
A. cooperative
If you use a desktop or laptop computer to shop, you are shopping in the ________ channel. On the other hand, if you use a smartphone or a tablet, that is called __________. A. electronic; the mobile channel B. direct-to-consumer (DTC); crowdsourced retailing C. automated; social retailing (s-retailing) D. out-of-home (OOH); electronic retailing E. analog; digital retailing
A. electronic; the mobile channel
Retailers create value by having products available when consumers want them. They go on to say that this enables consumers to keep smaller quantities at home because they know local retailers will have the products available when they need them.According to the authors, the technical term for providing value through these activities is __________. A. Holding inventory B. Providing services C. customer relationship management (CRM) D. mixed merchandising E. providing assortments
A. holding inventory
Employers sometimes test job candidates to learn more about them, to match them with job openings, and to develop training programs. Regarding tests, which of the following statements is not consistent with the information in the textbook? A. Intelligence tests are prohibited by law. Period. B. Employers are prohibited from using tests that discriminate against specific groups. C. Some retailers use personality tests. D. Some companies use tests to assess an applicant's honesty. E. By law, employers can only use tests whose scores are relevant to job performance.
A. intelligence tests are prohibited by law. Period.
A store's __________ is the geographic area from which it draws 50 to 70 percent of its customers. Its __________ is located immediately beyond that area, and generates another 20 to 30 percent of the store's customers. The remaining customers come from the store's __________. A. primary trading area B. secondary trading area C. tertiary trading area D. quaternary trading area E. quinary trading area
A. primary trading area
Levy and Weitz (they're the authors of your textbook) describe __________ as "special incentives or excitement-building programs that encourage customers to purchase a particular product or service." Examples include samples, coupons, and point-of-purchase (POP) displays. A. sales promotions B. overlay commissions C. media impressions D. direct-mail blitzes E. interstitials
A. sales promotions
In an October 1, 2018 article in the Courier-Journal, reporter Bailey Loosemore mentioned that prices are typically higher at a Kroger in Prospect (where Kroger has no competition) than at a Kroger on Buechel Bypass in Bashford Manor (where Kroger is located near a Walmart, a Target, and a Costco store). In the same article, we read that grocery prices at a Walmart near E.P. Tom Sawyer State Park (where Meijer, Target, and Kroger are also located) are typically lower than at the New Albany location (where competitors are fewer and not as close by). From this information, we can determine that Kroger and Walmart practice __________. A. zone pricing B. leader pricing C. price lining D. predatory pricing E. horizontal price-fixing
A. zone pricing
Which of the following statements is true regarding a typical national retail chain, such as the one whose organization chart is presented in Exhibit 15-8? A. The chief marketing officer (CMO) has ultimate responsibility for all activities related to stores. This includes working with the regional managers, who in turn supervise the district managers. B. A buyer's boss is a divisional merchandise manager (DMM); divisional merchandise managers report to general merchandise managers (GMMs), who report to the executive vice president of merchandising. C. Store managers report directly to the chief operations officer (COO). D. The senior vice president of merchandising works with the CEO on issues such as equity-debt structure and credit card operations, as well as serving as the company's primary interface with the real estate and legal divisions. E. The vice president of management information systems is responsible for the selection and pricing of the merchandise assortment offered through the catalog and Internet channels, as well as the maintenance and design of the website, call center operations, and fulfillment centers.
B. A buyer's boss is a divisional merchandise manager (DMM); divisional merchandise managers report to general merchandise managers (GMMs), who report to the executive vice president of merchandising.
The authors of your textbook refer to __________ as the "gold standard" of omnichannel retailing. A. H&M B. Apple C. Amazon D. Nordstrom E. Warby Parker
B. Apple
An example of intratype competition is when __________ and __________ compete for the same customer's dollar. A. kroger; target B. home depot; Lowe's C. dollar tree; TJ. maxx D. Speedway; dollar general E. urban outfitters; macys
B. Home Depot; Lowe's
A(n) _____________ identifies the set of SKUs (within a category) that a retailer will offer in each of its stores. A. merchandise budget plan B. assortment plan C. sell-through analysis D. variety vector E. merchandise menu
B. assortment plan
Patagonia sells a line of t-shirts that feature the artwork of nature conservationist James Prosek. Each of the shirts is imprinted with one of Mr. Prosek's drawings of a trout. For each trout t-shirt sold, Patagonia donates $5 to a grassroots organization that works to protect trout species and their natural habitat. This action by Patagonia would be categorized by the authors of your textbook as __________. A. event sponsorship B. cause marketing C. content marketing D. philanthropy E. social retailing
B. cause marketing
Operating profit margin is also referred to as __________. A. return on assets (ROA) B. earnings before interest and taxes (EBIT) C. gross margin (GM) D. cost of goods sold (COGS) E. selling, general and adminstrative (SG&A)
B. earnings before interest and taxes (EBIT)
McKesson Company is a global company that is based in San Francisco. The company, which has existed since 1883, provides health care products to drug store chains, independent retail pharmacies, and hospital pharmacies. For example, McKesson purchases bandages, gauze, antibacterial cream, ointments - and anything else you might need to treat a cut or scrape - from a variety of manufacturers, and then assembles the appropriate assortment of these products for the retailers that it serves.In 1996, McKesson acquired FoxMeyer Health Corporation, which gave McKesson ownership of the 350-store Health Mart chain of pharmacies. Since then, Health Mart has grown into a chain of approximately 5,000 franchised locations. And, on average, one new Health Mart store opens every week.By acquiring Health Mart, McKesson accomplished __________. A. unrelated diversification B. forward integration C. scrambled merchandising D. horizontal integration E. backward integration
B. forward integration
Gordon Food Service is a Grand Rapids, Michigan-based wholesaler/distributor. The company sells to grocers, restaurants, and institutions in a multi-state area that extends from Northern Michigan to Key West. You've probably seen its red-and-white "GFS" tractor/trailer rigs on the highway.In 1979, the company opened its first retail store, GFS Marketplace, making a large selection of restaurant-quality products available for household use. GFS Marketplace stores now exist in over 100 locations, and are an ideal source for large households and consumers who may be planning to throw parties - and no membership fee is required of those who wish to shop there.When Gordon Food Service began opening GFS Marketplace stores, the company was __________. A. social retailing B. forward supply-chain integration C. mobile retailing D. backward supply-chain integration E. intratype competition
B. forward supply-chain integration
The authors of your textbook categorize event sponsorship (for example, the PlayStation Fiesta Bowl) as a form of __________. Your instructor disagrees. A. advertising B. in-store marketing/design elements C. direct marketing D. public relations E. personal selling
B. in-store marketing/design elements
According to the authors of your textbook, buying the naming rights to a sports or entertainment venue (for example, Bridgestone Arena in Nashville) is a form of __________. Some other authors (including, perhaps, the authors of your MKT300 textbook) say that it is a form of __________. A. public relations; mobile marketing B. in-store marketing/design elements; public relations C. personal selling; advertising D. direct marketing; indirect marketing E. advertising; public relations
B. in-store marketing/design elements; public relations
In their proper sequence, the stages of the consumer decision making process are: A. problem recognition >> determine product specifications >> search for suppliers >> seek sales proposals/responses to RFP >> purchase decision >> post-purchase evaluation B. need recognition >> information search >> evaluation of alternatives >> purchase >> post-purchase behavior C. information search >> need recognition >> evaluation of alternatives >> purchase >> post-purchase behavior D. evaluation of alternatives >> need recognition >> information search >> post-search behavior >> purchase E. need recognition >> dissonance >> evaluation of alternatives >> information search >> purchase
B. need recognition >> information search >> evaluation of alternatives >> purchase >> post-purchase behavior
In the organization structure of a national retailer such as Macy's or Nordstrom, which of the following positions or job titles is not likely to exist? A. Chief Financial Officer (CFO) B. Production Manager C. Executive Vice President (EVP) of Merchandising D. Director of Special Events E. Vice President of Real Estate
B. production manager
The purpose of an open-to-buy system is to __________. A. decrease operating expenses B. record how much of the merchandise budget has been spent at any given time, and keep track of how much remains available to spend C. avoid seasonal buying D. maintain consistent average inventory E. develop long-term sales forecasts
B. record how much of the merchandise budget has been spent at any given time, and keep track of how much remains available to spend
In a typical supply chain for a low-cost, frequently-purchased consumer product (such as a magazine or package of candy) a wholesaler would primarily sell to and be concerned about the __________, and a manufacturer would primarily sell to and be concerned about the ___________. A. consumer; retailer B. retailer; wholesaler C. manufacturer; retailer D. broker; manufacturer's representative E. retailer; consumer
B. retailer; wholesaler
A store typically draws 20 to 30 percent of its customers from its __________. A. primary trading area B. secondary trading area C. tertiary trading area D. quaternary trading area E. quinary trading area
B. secondary trading area
Merchandise like men's crew socks, frozen peas, college-ruled loose-leaf notebook paper, and 60-watt light bulbs would be considered __________. A. impulse merchandise B. staple merchandise C. complementary merchandise D. fashion merchandise E. seasonal merchandise
B. staple merchandise
The authors of your textbook define a retail strategy as a statement that identifies (1) the retailer's target market, (2) ___________________________, and (3) the bases on which the retailer plans to build a sustainable competitive advantage. A. the geographic coordinates of any distribution center(s) that the retailer expects to build B. the format the retailer plans to use to satisfy the target market's needs C. the retailer's target intratype competitors D. the retailers NAICS code E. the retailer's most valued vendor relationships
B. the format the retailer plans to use to satisfy the target market's needs
In a SWOT analysis, the letter W stands for ___________. A. world B. weaknesses C. workers D. wholesale E. window of opportunity
B. weaknesses
The emerging international markets that are sometimes referred to as "the BRIC" countries are __________.
Brazil, Russia, India, and China
Common sense tells us that customers will stay away from a shopping center if there are too few parking spaces.The textbook authors tell us, however, that too many empty spaces may also be a problem; people see the empty spaces and think it means the stores are unpopular.For a supermarket, retail industry experts recommend _____ spaces per thousand square feet of retail store space. A. 3 B. 5.5 C. 10 to 15 D. 20 E. 25
C. 10 to 15
Kent Dent and his partner "Scratch" Hatch own Scratch & Dent Appliance. Last summer, Kent and Scratch bought a truckload of Whirlpool washing machines that had minor cosmetic defects. They paid $300 each for the machines, which they displayed in the store with a "take-it-or-leave-it" retail price of $500. Three months later, none of the machines had sold, so Kent and Scratch reduced the price to $400. Within a month, all of the machines had sold. The maintained markup on this truckload of merchandise was _____ percent. A. 33.33 B. This figure cannot be calculated using the information that is given. C. 25 D. 66.67 E. 40
C. 25
BRIC stands for Brazil, Russia, India, and ________. A. Czech Republic B. Costa Rica C. China D. Cuperinto E. Colombia
C. China
The retail mix consists of pricing, communication mix, store design and display, location, customer service, and ____________. A. parking lot configuration B. information technology C. ambience D. signage E. merchandise management
E. merchandise management
Inside the corporate offices of a well-known store chain, marketing executives Carly Farley and Cecil Diesel are having a spirited discussion.Specifically, they are debating whether they should tailor the marketing mix of their new product to appeal to the "Achievers" market segment or the "Innovators" segment, or whether they should develop a separate marketing mix for each of those segments.From their use of labels like "Achievers" and "Innovators" to describe their target market, we can determine that Carly and Cecil's company has bought into the __________ segmentation typology. A. Ansoff product-market matrix B. Tapestry C. VALS D. BGG (Boston Consulting Group) Matrix E. PRIZM
C. VALS
Levy and Weitz cite statistics from Advertising Age magazine's annual rankings of advertisers: After __________, retailers are the second-largest group of national advertisers. A. insurance companies B. credit-card companies C. automobile manufacturers D. mortgage lenders E. prescription drug companies
C. automobile manufacturers
_______________ is the process of grouping consumers into market segments based on what they want the product to do for them. A. geographic segmentation B. psychographic segmentation C. benefit segmentation D. demographic segmentation E. buying situation segmentation
C. benefit segmentation
If you make an airline reservation for a flight to, say, Miami, you're likely to be charged a higher price two weeks from now than if you make the reservation today. The rate that you pay for your hotel stay in South Beach might also differ based on the day and time that you book your reservation. Not only that, but your rate may be different from what a government employee, a member of AAA, or a member of AARP would be charged. The process of charging different prices for goods or services based on the type of customer, the time of the day, the day of the week, the season of the year, or level of demand is called __________ or __________ pricing. A. peak; off-peak B. variegated; supply-driven C. dynamic; individualized D. erratic; unpredictable E. vendor managed; demand-driven
C. dynamic; individualized
__________ is "a specific type of retail analytics that focuses on the composition of the . . . bundle of products purchased by a household during a single shopping occasion." A. focus group B. depth interview C. market basket analysis D. cohort analysis E. RFM (recency-frequency-monetary) analysis
C. market basket analysis
A(n) __________ is an assortment of items that customers see as substitutes for one another. A few examples might be men's outerwear, soft drinks, fashion footwear, salty snacks, kitchen gadgets, floor coverings, and swim apparel. A. merchandise group B. merchandise classification C. merchandise category D. stock-keeping unit (SKU) E. department
C. merchandise category
Coca-cola, planets, and purina one are _______________ brands. Big K (sold by Kroger), Archer Farms (sold by target), and Ol' Roy (sold by Walmart) are ___________ A. generic; knockoff; national B. house; national; private-label C. national; private-label; house D. private-label; gray-market; generic E. step-down; generic; gray-market
C. national; private-label; house
The authors of your textbook differentiate between two categories of "new" media elements. One category is __________. Levy and Weitz list _________ as one of the media elements that fit this category. The other category of "new" me A. online media; mobile marketing; sales promotions; a coupon B. online media; websites; in-store marketing; a point-of-purchase (POP) display C. online media; e-mail; social media; Twitter D. sales promotions; coupons; public relations; cause-related marketing E. advertising media; television; social media; a blog
C. online media; e-mail; social media; twitter
If you divide "percentage change in quantity sold" by "percentage change in price," you are calculating __________. A. just-noticeable difference (JND) B. initial markup percentage C. price elasticity D. break-even quantity E. competitive response
C. price elasticity
"Multi-unit pricing" means the same thing as __________. A. price bundling B. price lining C. quantity discount D. first-degree price discrimination E. third-degree price discrimination
C. quantity discount
In a national department store chain such as Neiman Marcus or Macy's, __________ supervise district managers, who in turn supervise __________. A. general merchandise managers (GMMs); buyers B. divisional merchandise managers; planners C. regional managers; store managers D. senior vice presidents (SVPs) of stores; E. divisional planning managers; zone managers
C. regional managers; store managers
A successful retail communication strategy will usually make use of several media elements. Most likely, some of those media elements will be "traditional" media elements and some will be "new" media elements. Traditional media elements include mass media advertising, in-store marketing, personal selling, public relations, and __________. A. YouTube B. e-mail C. sales promotions D. blogs E. Facebook
C. sales promotions
The s in s-retailing stands for __________. An example would be when __________. A. store; Ima Payne shops and compares items only in brick-and-mortar stores; she also makes her purchase only in stores B.skimming; Crystal Ball has her credit card skimmed when making an online purchase C. social; Jay Walker clicks the "shop now" button on a picture on Instagram D. scan; Summer Raines uses the self-checkout system at Kroger E. satisfaction; Eileen Forward posts a product review at Patagonia's website and gives the product a 5-star rating
C. social; Jay Walker clicks the "shop now" button on a picture on Instagram
The authors of your textbook state that efficient supply chain management provides two principal benefits to retailers and their customers. Those benefits are fewer stockouts and __________. A. value-added point-of-sale promotion B. Increased certainty of products' country of origin C. tailored assortments D. more precise targeting of customers in the retailer's secondary trading area E. larger delivery quantities
C. tailored assortments
Positioning is the __________. A. the retailers approach to assigning shelf space to brands B. the retailer's geographic location strategy C. the process of creating an image in the customer's mind, relative to the retailers competition D. Both A and C E. none of the above
C. the process of creating an image in the customer's mind, relative to the retailers competition
Shirley Turley owns Ballistic Bazaar, a gun shop and shooting range. Ballistic Bazaar pays $822 for a Sig Sauer 1911 Carry Scorpion. To set her retail price for the SKU, Shirley applies an initial markup that is 33.33% of her selling price. Then, to implement odd pricing, she rounds the price upward to the nearest 99 cents. The retail price of this particular SKU will be _____. A. $2,045.99 B. $1,199.99 C. $1,018.99 D. $1,232.99 E. This figure cannot be calculated using the information that is given.
D. $1,232.99
Sondra Alondra owns Gothic Ghoullery, a specialty apparel and accessories store. For most of the merchandise she sells, Sondra sets the price by "keystoning." This means that if Sondra buys a pair of chrome-studded black multi-buckle knee-high platform boots for $75, she'll set the retail price at ____. A. $125 B. $100 C. $175 D. $150 E. This figure cannot be determined without price optimization software.
D. $150
Common sense tells us that customers will stay away from a shopping center if there are too few parking spaces. The textbook authors tell us, however, that too many empty spaces may also send a negative signal (i.e., that the stores are unpopular).For a shopping center, retail industry experts recommend _____ spaces per thousand square feet of retail store space. A. 20 B. 25 C. 3 D. 5.5 E. 10 to 15
D. 5.5
A "Walmart Neighborhood Market" is smaller than a Walmart Supercenter or a standard Walmart discount store. It occupies, on average, 38,000 square feet and offers about 28,000 items, including fresh produce, meat and dairy products, bakery and deli items, household supplies, health and beauty aids, and a pharmacy. At present, there are approximately 200 Neighborhood Markets in the U.S. (compared with approximately 3,000 Supercenters and about 600 standard Walmart discount stores).Walmart Neighborhood Markets most closely resemble stores in which food retailer category? A. Hypermarkets B. Extreme-value food retailers C. Warehouse clubs D. Conventional supermarkets E. Convenience stores
D. Conventional supermarkets
The _________ Act of _____ set minimum wages, maximum hours, child labor standards, and overtime-pay provisions. A. Equal Pay; 1963 B. Taft-Hartley; 1947 C. National Labor Relations; 1935 D. Fair Labor Standards; 1938 E. Robinson-Patman; 1936
D. Fair Labor Standards; 1938
By recent estimates, the St. Louis MO-IL ____________ had a population of 2,807,338, with 302,838 of those individuals residing within St. Louis itself. By similar estimates, the Danville KY ______________ is populated by 54,435, of whom 16,804 live within the community of Danville itself. A. Metropolitan Statistical Area (MSA); Metropolitan Statistical Area (MSA) B. Micropolitan Statistical Area (MiSA); Metropolitan Statistical Area (MSA) C. Micropolitan Statistical Area (MiSA); Micropolitan Statistical Area (MiSA) D. Metropolitan Statistical Area (MSA) ; Micropolitan Statistical Area (MiSA) E. Micropolitan Statistical Area (MiSA); Combined Statistical Area (CSA)
D. Metropolitan Statistical Area (MSA) ; Micropolitan Statistical Area (MiSA)
The _________ provides guidance to retailers on how to control crowds on Black Friday. A. Executive Secretary of the U.S. Department of Labor B. Office of the Inspector General (OIG) C. Equal Employment Opportunity Commission (EEOC) D. Occupational Safety and Health Administration (OSHA) E. U.S. Department of Transportation
D. Occupational Safety and Health Administration (OSHA)
As a retailer develops its CRM program, which of the following is likely to be one of its objectives?A. Get rid of unprofitable customers, i.e., "get the lead out." B. Retain high-LTV customers - and gain a greater share of wallet from them by providing more value. C. Convert "good" customers into high-LTV customers, perhaps through add-on sales. D. All of the above. E. Both B and C.
D. all of the above
For a retailer, which of the following is a potential disadvantage of locating in an enclosed mall? A. Competitors who sell very similar merchandise are located close by. B. Customers may choose to go to strip centers or other shopping centers where they can park close to a retailer's front door. C. Occupancy costs are higher than those of strip centers, freestanding sites, and most central business districts. D. All of the above E. Both A and B
D. all of the above
Regarding "push supply chains" and "pull supply chains," which of the following statements is consistent with information in your textbook? A. In a pull supply chain, a store is less likely to be overstocked or out of stock. B. In a push supply chain, merchandise begins moving through the chain because of a forecast-driven decision to ship it at a particular time. C. A pull approach does not work well when order commitments must be made months in advance, as is often the case in fashion retailing. D. All of the above. E. Both A and B.
D. all of the above
When a retailer is deciding upon a type of location (e.g., freestanding location, Main Street, regional mall, community strip center), it needs to select a location that is consistent with __________. A. the density of the target market in relation to the location B. the typical shopping behavior of members of its target market C.its positioning strategy D. all of the above E. none of the above
D. all of the above
If a retailer wants to participate in the CRM process, the first necessary activity is ___________. A. setting up a frequent- shopper program B. analyzing customer data and identifying target customers C. deciding on a way to deal with unprofitable customers D. collecting customer shopping data E. inviting vendor collaboration
D. collecting customer shopping data
For a retail employee, which of the following is an intrinsic reward? A. A profit-sharing bonus at the end of the fiscal year B. A commission payment C. Receiving the Employee of the Month trophy and gift card D. A gift of store merchandise for agreeing to work an extra shift on short notice E. Feeling good after helping a customer who really needed it
E. feeling good after helping a customer who really needed it
Shirley Turley is establishing a communication budget for Ballistic Bazaar. By quizzing her vendors' sales reps for information about her competitors, and doing the same with the sales reps for the media outlets in her county, Shirley is able to make a semi-informed estimate that she and her competitors collectively spend $225,000 a year on marketing communications. Shirley also figures that her store accounts for about 30 percent of the retail gun and gun-related sales revenue in her trading area. Shirley then sets her total annual communication budget at $67,500 (which is 30 percent of $225,000). In this scenario, Shirley is using the __________ method of setting a communication budget. A. objective-and-task B. percentage-of-sales C. affordable budgeting D. competitive parity E. marginal analysis
D. competitive parity
To calculate __________, retailers use a mathematical model that takes into consideration the gross margin from a customer's past purchases, the estimated cost (including advertising and other promotion) of acquiring the customer, and the cost of processing merchandise that has been returned by the customer. A. average lifetime profit (LTP) B. recency-frequency-monetary coefficient (RFMC) C. break-even customer acquisition cost (CAQ) D. customer lifetime value (CLV) E. opportunity cost of defection (OCD)
D. customer lifetime value (CLV)
When designer Isaac Mizrahi created a ling of linens, housewares, and women's fashion to be sold only at Target, the retailer and the designer were teaming to launch a(n) ___________ private-label brand. A. copycat B. generic C. gray market D. exclusive E. knockoff
D. exclusive
Nordstrom is a(n) _____________, Target is a(n) _______________, and Walgreens is a(n) ______________. A. second-tier department store; warehouse club; extreme-value retailer B. off-price retailer; category specialist; conventional supermarket C. third-tier department store; category specialist; limited-assortment supermarket D. first-tier department store; full-line discount store; drugstore E. full-line discount store; category specialist; extreme-value retailer
D. first-tier department store; full-line discount store; drugstore
Matt Flatt buys most of his business attire and some of his casual attire at Joseph A. Bank. Matt thinks Jos. A. Bank's regular pricing is "a bit on the high side," but the clothes are well made and he likes the way they look and feel. Matt has learned to watch for sales at Jos. A. Bank's stores, as well as at the company's online store. A couple of months ago, during a two-day sale, he was able to buy an "Executive" suit for $199, instead of paying the regular price of $598. A month later, during a dress shirt sale, he ordered two "Reserve Collection" wrinkle-free dress shirts at the Jos. A. Bank website. The shirts were priced at two for $89 instead of the regular price of $109.50 each. Not too long thereafter, Matt took advantage of another sale and bought three "Traveler" sportshirts for $39 each (they're normally $89.50 each). The following month, during a four-day sale, he bought a "Traveler" suit for $279 instead of paying the regular price of $798. As an experienced Jos. A. Bank shopper, Matt knows he can expect several more sales this year, and he plans to add something relevant to his work wardrobe each time a sale happens. In this scenario, Matt is benefiting from Jos. A. Bank's __________ pricing strategy. A. prestige B. odd C. EDLP D. high/low E. dynamic
D. high/low
The authors mention that a retailer can send "mixed messages" when it communicates through several different media at once. For example, the company may be trying to establish its image as a time-honored and prestigious brand through its television and magazine advertising; at the same time, it may be involved in sales promotion activities (e.g., coupons and/or freemiums) that project a bargain-basement image. Furthermore, the firm may be promoting itself in YouTube videos that make it look more like a "hipster" brand than the "Ivy League" brand that it is trying to be. And, the company may be running a social media campaign that is inappropriate for its target audience or that makes it appear desperate for customers. According to Levy and Weitz, a retailer can avoid this type of fragmentation of its message; that is, it can ensure that all of the elements in its communication mix "speak with the same voice." The way to do this is by having a well-conceived and well-managed __________. A. social media analytics program B. corporate website C. employee screening process D. integrated marketing communications (IMC) program E. mission statement
D. integrated marketing communications (IMC) program
The authors of your textbook state that human resource managers in retail firms need to be well acquainted with six categories of legal and regulatory issues. They are Equal employment opportunity Compensation Labor relations Employee safety and health Sexual harassment Employee __________ A. personal hygiene B. wealth management C. moonlighting D. privacy E. morale
D. privacy
Retailers create value by enabling customers to choose from a wide selection of products, brands, sizes, and prices- all at one location. The technical name for providing value in this manner is __________. A. expansive retailing B. providing services C. breaking bulk D. providing assortments E. channel integration
D. providing assortments
Cause-related marketing (for example, Chili's partnership with St. Jude's Research Hospital) is a form of __________. A. personal selling B. sales promotion C. advertising D. public relations E. direct marketing
D. public relations
Product placement (for example, Under Armour in Baywatch) is a form of __________. A. advertising B. sales promotion C. direct marketing D. public relations E. personal selling
D. public relations
According to the authors of your textbook, one of the advantages of the EDLP pricing strategy is that it __________. A. creates excitement B. helps sell otherwise slow-moving merchandise C. increases a retailer's bargaining power with vendors D. reduces advertising and operating expenses E. increases profits
D. reduces advertising and operating expenses
In SWOT analysis, the letter S stands for ________. A. standardization B. stock C. stores D. strengths E. sustainability
D. strengths
A market segment is _____________ if it has enough buying power to warrant developing a special retailing mix for it. A. actionable B. responsive C. ostensible D. substantial E. identifiable
D. substantial
A(n) ___________ market segment is one to which the retailer can effectively target promotions and other elements of the retail mix. A. actionable B. vulnerable C. reachable D. substantial E. identifiable
D. substantial
Frieda's, Inc. is an Orange Country, California-based specialty produce company that supplies supermarkets and restaurants with more than 600 varieties of fruits, vegetables, and gourmet items. Frieda's customers in Kentucky include Kroger, Walmart Supercenter, Liberty IGA, Remke, Trader Joe's, Whole Foods, and Valu Market.The company's founder, Freida Caplan, made history in the early sixties when she began importing Chinese gooseberry (which she renamed "kiwifruit") into the U.S. Frieda's current corporate slogan is "We change the way America eats." Indeed, the company can make this claim honestly. In addition to kiwifruit, Frieda's has introduced more than 180 exotic and specialty items to supermarkets and distributors around the U.S., including shallots, cherimoyas, donut peaches, sugar snap peas, and habanero peppers.Frieda's, Inc. is a _________________. A. franchisor B. producer C. 3pl (third party logistics) provider D. wholesaler E. category killer
D. wholesaler
_______________ is the process of grouping consumers into market segments based on what they want the product to do for them. A. geographic segmentation B. Psychographic segmentation C. demographic segmentation D. Buying situation segmentation E. Benefit segmentation
E. Benefit Segmentation
Regarding RFID, with which of the following statements would the authors of your textbook likely agree? A. RFID technology is costly to implement. B. An RFID chip can hold more data than a UPC bar code. C. The initials "RFID" stand for "rejected for insufficient documentation." D. All of the above. E. Both A and B.
E. Both A and B
Regarding a retailer's distribution center (DC), which of the following statements is consistent with information that is presented by the authors of your textbook? A. In the present-day retail industry, every retailer has a DC - even those that have only one or two stores. B. Direct store delivery (DSD) is rarely - if ever - preferable to having merchandise delivered to the DC. C. Cross-docking refers to an alternative maneuver that can be used by truck drivers who aren't skilled at backing a trailer into a narrow loading or unloading dock. D. Distribution center (DC) and fulfillment center (FC) are two different names for the same facility. E. DCs enable retailers to make more accurate sales forecasts
E. DCs enable retailers to make more accurate sales forecasts
An item that is sold by a retailer for a price that is less than the retailer's cost is __________. A. price lined B. the most common form of shrinkage C. a violation of the Robinson-Patman Act D. "bait" merchandise (in bait-and-switch pricing) E. a loss leader
E. a loss leader
According to the authors of your textbook, hiring and retaining retail employees involves five steps. In reality, each step is a set of activities. They are Recruit Train and ________ Motivate Evaluate Reward and compensate A. inculcate B. indoctrinate C. retrofit D. re-educate E. acculturate
E. acculturate
The retail mix consists of merchandise management, pricing, communication mix, store design and display, location, and __________. A. parking lot configuration B. information technology C. ambience D. signange E. customer service
E. customer service
According to the authors of your textbook, if you use a desktop or laptop computer to shop, you are shopping in the ________ channel. On the other hand, if you use a smartphone or a tablet, that is called __________. A. direct0to-consumer (DTC); crowdsourced retailing B. automated; social retailing (s-retailing) C. out-of-home (OOH); electronic retailing D. analog; digital retailing E. electronic; the mobile channel
E. electronic; the mobile channel
A(n) __________ retailer uses more than one channel to sell and deliver merchandise and services to customers. A(n) __________ retailer coordinates multichannel retail activities in a way that provides seamless and synchronized customer experience. A. moblie; automated B. uber-channel; opti-cyber C. bricks-and-clicks; nonstore D. enhanced-channel; ultrachannel E. multichannel; omnichannel
E. multichannel; omnichannel
Regarding retail channels, which of the following statements is accurate? A. "retail channel" and "supply chain" are two different labels for the same thing B. about one-quarter of all retail sales are made using a party plan system C. "multichannel marketing" and "multilevel marketing" are two different labels for the same thing D. all of the above E. none of the above
E. none of the above
According to the authors of your textbook, the three basic types of retail locations are __________, __________, and __________. A. profitable, unprofitable, breaking even B. community center; neighborhood center; regional mall C. inner city; main street; superregional mall D. freestanding; business district; shopping center E. planned; unplanned; nontraditional
E. planned; unplanned; nontraditional
Joseph A. Bank offers its "Executive Collection" of men's suits in a wide variety of patterns and colors at a price of $598 each. A shopper at a Jos. A. Bank store or at josabank.com can also choose from a variety of higher-technology (cooler in hot weather) "1905" suits at $698 each, as well as from a few "Signature" suits (with a higher grade of wool and higher-quality lining) at $798 each and "Signature Gold" suits (made of higher-quality materials yet) at $998 each. For the man who wants a suit that is crafted in the USA out of fine Italian wool, the "Reserve" suit is available in a few colors for a price of $1,298. Joseph A. Bank's approach to pricing is best described as __________. A. price bundling B. bait pricing C. two-part pricing D. variable pricing E. price lining
E. price lining
To report chainwide sales growth statistics, retailers and retail industry analysts generally exclude locations that have been open for less than one year. The resulting figure is known as __________ or, alternately, "comparable store sales growth." A. legacy-store sales growth B. legitamate sales growth C. cornerstore sales growth D. flagship store sales growth E. same-store sales growth
E. same-store sales growth
Most of us think of Staples and Office Depot as places to buy school or office supplies, such as an office chair, a package of file folders, an ink cartridge, a flash drive, office software, a printer, a shredder, or a stapler. However, at Staples you can also buy a Monster energy drink and at Office Depot you can buy a king size Snickers bar.These are examples of __________. A. cross-channel retailing B. cannibilization C. cross-docking D. horizontal integration E. scrambled merchandising
E. scrambled merchandising
When Scott Free moved into his new apartment, he decided to buy a new TV. Scott went to Best Buy and looked at various Samsung, LG, Sony, and Vizio televisions. Once he had decided that he wanted a particular 50-inch Samsung model, Scott searched for a lower price online and ended up ordering that same Samsung from Amazon.The label __________ is used to describe Scott's shopping behavior. A. cross-scanning B. channeling C. treachery D. keystoning E. showrooming
E. showrooming
A __________ is a set of firms that make and deliver goods and services to consumers. A. cartel B. conglomerate C. syndicate D. co-operative E. supply chain
E. supply chain
All other things being equal, the best area for locating a store is __________. A. the area that has the greatest population density B. the area that has the fasted-growing economy C. the area with the least competition D. the area with the lowest operating costs E. the area that will generate the greatest long-term profit
E. the area that will generate the greatest long-term profit
The first step in merchandise management planning is to ________.
forecast category sales