MKT320 - Final

B

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) Extreme-value food retailers B) Conventional supermarkets C) Warehouse clubs D) Convenience stores E) Hypermarkets

D

A Marathon gas station in Memphis (located at the intersection of Poplar Avenue and Ridgeway Road) has an on-site sushi chef and sells about 300 boxes of sushi a day. This is an example of __________. A) forward integration B) backward integration C) cannibalization D) scrambled merchandising E) an extreme-value food retailer

D

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) performance center; mezzanine habitants; remote audience B) sphere of influence; gravity zone; orbital zone C) impact zone; fallout zone; incidental exposure zone D) primary trading area; secondary trading area; tertiary trading area E) epicenter; suburban feed; exurban diaspora

E

A(n) __________ describes the nature of the retailer's operations - its retail mix - that will be used to satisfy the needs of its target market. A) operating plan B) corporate charter C) service blueprint D) mission statement E) retail format

B

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) enhanced-channel; ultrachannel B) multichannel; omnichannel C) bricks-and-clicks; nonstore D) uber-channel; opti-cyber E) mobile; automated

C

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) direct-to-consumer (DTC); crowdsourced retailing B) automated; social retailing (s-retailing) C) electronic; mobile commerce or m-commerce D) out-of-home (OOH); electronic retailing E) analog; digital retailing

B

According to the authors of your textbook, people go shopping because of __________ needs. A) latent B) utilitarian and hedonic C) hedonic D) latent and manifest E) utilitarian

E

According to the authors of your textbook, the three basic types of retail locations are __________, __________, and __________. A) power center; lifestyle center; omnicenter B) community strip center; neighborhood strip center; regional mall C) inner city; Main Street; superregional mall D) freestanding; business district; shopping center E) planned; unplanned; nontraditional

E

According to the authors of your textbook, we can consider Nordstrom, Neiman Marcus, Macy's, JCPenney, and Kohl's to be __________. A) full-line discount stores B) category specialists C) first-tier department stores D) services retailers E) department stores

C

All other things being equal, retailers can expect a consumer's most important reference group to be his or her __________. A) work colleagues B) favorite celebrities C) family D) college classmates, past or present E) fellow sorority or fraternity members

A

All other things being equal, the best area for locating a store is __________. A) the area that will generate the greatest long-term profit B) the area with the lowest operating costs C) the area that has the greatest population density D) the area with the least competition E) the area that has the fastest-growing economy

D

As a retailer develops its CRM program, which of the following is likely to be one of its objectives? A) Convert "good" customers into high-LTV customers, perhaps through add-on sales. B) Get rid of unprofitable customers, i.e., "get the lead out." C) Retain high-LTV customers - and gain a greater share of wallet from them by providing more value. D) All of the above. E) Both A and C.

D

As they are developing their CRM programs, many retailers use the "customer pyramid" classification to identify their highest-value customers. On the pyramid, customers are classified hierarchically based upon their customer lifetime value (CLV) scores. These four tiers of customers, in order of bottom of the pyramid to top, are labeled __________, __________, __________, and __________. A) silver; gold; platinum; titanium B) deadwood; oak; mahogany; teak C) rhinestone; pearl; sapphire; diamond D) lead; iron; gold; platinum E) dogs; problem children; question marks; cash cows

D

At Fayette Mall, which of the following is an anchor store? A) Buckle B) Build-A-Bear Workshop C) The Apple Store D) Macy's E) Gap

E

At the time of the 2010 U.S. Census, the Nashville-Davidson-Murfreesboro-Franklin __________ had a population of 1,670,890 and ranked 36th in the nation in size. In that same census year, the Louisville-Jefferson County __________ had a population of 1,235,708 and ranked 45th. A) Micropolitan Statistical Area (MiSA); Metropolitan Statistical Area (MSA) B) Micropolitan Statistical Area (MiSA); Micropolitan Statistical Area (MiSA) C) Television Market; census block D) Metropolitan Statistical Area (MSA); Combined Statistical Area (CSA) E) Metropolitan Statistical Area (MSA); Metropolitan Statistical Area (MSA)

E

At which stage of the strategic retail planning process does a retailer establish numerical indices against which progress may be measured, and determine the level of investment needed to achieve its objectives? A) In Step 1, as it defines its business mission. B) In Step 2, as it conducts a situation audit. C) In Step 3, as it identifies strategic opportunities. D) In Step 4, as it evaluates strategic opportunities. E) In Step 5, as it establishes specific objectives and allocates resources.

D

Beverly Everly takes her lunch to work every day, and a sandwich is always part of her lunch. Bev's favorite part of a sandwich is the cheese, and she enjoys just about any cheese that has a bold flavor. Bev is loyal to the Sargento® brand of sliced cheese, which she buys at her neighborhood supermarket. In the past, Bev has bought—and enjoyed—Sargento® Chipotle Cheddar slices, Sargento® Jarlsberg Swiss slices, Sargento® Pepper Jack slices, Sargento® Muenster slices, Sargento® Extra-Sharp Cheddar slices, Sargento® Aged Swiss slices, and Sargento® Vermont White Cheddar. Each of these Sargento® cheeses is almost always available at Bev's neighborhood supermarket, as are the more "ordinary" kinds (such as Sargento® Mild Cheddar, Sargento® Monterrey Jack, Sargento® Provolone). Today, Bev is unable to shop at her neighborhood supermarket because of recent storm damage to the store. Instead, she is shopping at a competing supermarket a few miles from her home. When she arrives at the cheese section, Bev is dismayed to see that this store carries only five kinds of Sargento® slices: Swiss, Mild Cheddar, Monterey Jack, Medium Cheddar, and a Cheddar-Mozzarella blend—and none of these appeal to her adventuresome taste buds. Compared to Bev's neighborhood supermarket, the store where she is shopping today appears to offer __________. A) fewer brands of merchandise B) less ambience C) a more narrow variety of merchandise D) a more shallow assortment of merchandise E) less service

D

Bianca Wonka has inherited a candy store chain that was started by her uncle. Bianca has completed an analysis of the company's financial statements and is now strategizing to improve the company's performance. Which of the following actions would result in greater return on assets (ROA)? A) Bianca successfully implements a market penetration growth strategy, which increases the company's "top line" (i.e., net sales). At the same time, she negotiates with vendors and lowers the company's per-unit cost of goods sold. B) Bianca reduces operating expenses by finding ways to reduce energy costs and cut waste. C) Bianca identifies idle and underperforming company assets and sells them. The money from the sale of assets is then used to pay off all of the company's debt. D) Any or all of the above. E) Both A and B.

B

Chief Auto Parts came into existence in 1955 in southern California and eventually grew to include stores in Arizona, Arkansas, California, Nevada, Tennessee, and Texas. In 1979, the chain was purchased by 7-Eleven. In keeping with its own identity as a convenience store chain, 7-Eleven thought of its Chief stores as "convenience auto parts stores" and kept most Chief locations open 7 days a week, 24 hours a day. Similarly, many new Chief stores were opened right next door to 7-Eleven stores. In 1992, the Chief chain was sold to General Electric. Then, in 1992, AutoZone bought the chain from General Electric. As AutoZone integrated Chief into its own operations, it closed any Chief locations that would have cannibalized existing AutoZone stores. The remaining Chief stores - some of which were located in states where AutoZone did not have a presence at the time - were turned into AutoZone stores. For 7-Eleven, the acquisition of Chief Auto Parts in 1979 was part of a(n) __________ growth strategy; AutoZone's purchase of the chain in 1992 more closely resembled the textbook definition of a(n) __________ growth strategy. A) retail format development; market penetration B) related diversification; market expansion C) market penetration; related diversification D) unrelated diversification; retail format development E) market expansion; unrelated diversification

C

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

B

Compared to other retail channels, __________ enable(s) retailers the greatest ability to personalize merchandise offerings and information for each customer - and the ability to do so the most economically. A) stores B) the Internet C) catalogs D) television home shopping E) automated retailing

A

Consultants at Insula Research are presenting a SWOT analysis to senior executives at Wendy's. The Insula consultants mention that of all QSR (quick-service restaurant) chains, Wendy's has the fastest average service time in the drive-through lane, averaging 133.63 seconds per vehicle. Insula's research study found Wendy's closest competitors in average service time to be Taco Bell (at 158.03 seconds per vehicle), Taco John's (at 181.19 seconds per vehicle), McDonald's (at 189.49 seconds per vehicle), and Burger King (at 198.48 seconds per vehicle). From the perspective of top management at Wendy's, the fact that their restaurants are able to deliver the quickest service in the drive-through sector of the restaurant industry would be classified as a(n) __________. A) strength B) weakness C) opportunity D) threat E) outlier

B

Decision makers at a department store chain know from market research that their average customer comes from a household of $60,000 annual income, 33% of their customers have children at home, 51% of their customers have a college education, and the median age of their customers is 42. These statistics are an example of __________ information that a retailer might use for market segmentation. A) geographic B) demographic C) psychographic D) geodemographic E) benefits sought

D

Even though Michelle LaBelle is 22 years old and "tech savvy," she prefers to buy most items at a brick-and-mortar store rather than shopping through other retail channels, such as catalogs or the Internet. According to the authors of your text, what might be the reason why Michelle would rather take the time to drive to the mall or a standalone store, park her car, and spend time walking through the store in search of an item? A) Ever since Michelle's mom became a victim of identity theft, Michelle has been reluctant to use a credit card on the Internet, or over the phone, or even in a store. She now pays cash most of the time. B) Michelle genuinely enjoys her surroundings when she is in a store—she likes being around sales associates and other shoppers, she likes looking at the merchandise displays, and she feels "at home." C) Michelle has more faith in her ability to "pick the right one" when she's able to examine merchandise in person. And, if she should happen to make the wrong decision or an item should turn out to be defective, she would also rather handle the return locally and in person. D) All of the above. E) Both A and B.

D

For a retailer, which of the following is a potential advantage of locating in an enclosed mall? A) Malls usually attract shoppers from a wide trade area. B) Customers who won't visit an outdoor shopping venue during bad weather may still come to the mall. C) Mall management usually ensures a level of consistency that benefits all tenants (such as uniform hours of operation). D) All of the above. E) Both B and C.

E

For retailers who wish to involve themselves in the CRM process, the first necessary activity is collecting customer shopping data. The second activity is __________. A) deciding on a way to deal with unprofitable customers B) setting up a frequent-shopper program C) inviting vendor collaboration D) CRM program implementation E) analyzing customer data and identifying target customers

D

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) implementing a reverse supply chain B) engaging in backward integration C) establishing a wholesale-sponsored voluntary cooperative group D) engaging in forward integration E) engaging in industry consolidation

B

Hypermarkets originated in France in the mid-20th century, and are common in Europe and in some South American countries. Shoppers in the United States, on the other hand, have not responded well to the hypermarket concept. Therefore, true hypermarkets are rare in the U.S. American consumers seem be more comfortable with a retail format that is similar in some ways to, say a Carrefour hypermarket, but which offers more nonfood items. This American "equivalent" of a hypermarket is called a(n) __________, and __________ is an example of one. A) warehouse club; Costco B) supercenter; Super Target C) outlet mall; Outlet Shoppes of the Bluegrass D) expanded supermarket; Fresh Fare E) supermarket; Kroger

A

If you're walking into Martin's Cigar Shop in Lexington for the first time, the first thing you notice is likely to be the sign on the door: This is a work-free smoke place. The second thing you're likely to notice is that the customers are in no hurry to leave after they make a purchase. A "regular" customer is likely to take a seat, light a recently-purchased cigar, and engage in conversation about such time-honored topics as cigar preferences, single-barrel bourbon, horse race handicapping, politics, and the Kentucky Wildcats. Most of the customers will not shop at any of the other cigar retailers in town. Most regular customers have also bought a humidor from Martin's at one time or another, and most keep at least a couple dozen fine cigars on hand at home. Furthermore, most regulars also visit Martin's several times per week, most know several other regulars by their first name, and most will treat a newcomer to the same good-natured ribbing that they dish out to the other regulars. The authors of your textbook would say that Martin's customers are, collectively, a classic example of __________. A) a retail brand community B) a cadre of codgers C) the "iron" layer of the customer pyramid D) the "eighty" in the 80-20 rule - i.e., the eighty percent of customers who generate twenty percent of the retailer's profits E) the "lead" layer of the customer pyramid

B

In 2017, Target made charitable contributions of $217,673,712 in cash and products. Much of the money was used to improve children's education and development through grants for field trips, youth soccer, and the arts. In addition to supporting K-12 education through its giving, the company also provides financial support to St. Jude's Children's Research Hospital, the American Red Cross, and the Salvation Army. Target employees also donate hundreds of thousands of hours to volunteer projects in their communities each year. Target's actions are an example of a retail corporation's commitment to __________. A) generating projects to keep its employees busy B) fulfilling its corporate social responsibility C) obeying the law D) managing its excess inventory E) distracting its critics

E

In a SWOT analysis, the letter S stands for __________. A) situation B) strategy C) sales D) sustainability E) strengths

B

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) broker; manufacturer's representative B) retailer; wholesaler C) consumer; retailer D) retailer; consumer E) manufacturer; retailer

E

In the five-stage buying process, as it is presented by the authors of your textbook, a customer enters the __________ stage because of an unsatisfied need. A) information search B) evaluation of alternatives C) purchase D) postpurchase E) need recognition

C

In the present-day marketplace, retailers receive most of their sales revenue through __________. A) the Internet B) eBay and Etsy C) brick-and-mortar stores D) traditional "glossy" catalogs mailed to consumers E) Facebook, Instagram, Twitter, and Pinterest

C

In the world of retailing, the initials SKU stand for __________. A) sustainable kilowatt utilization B) specialized kiosk usage C) stock keeping unit D) shoplifting and kleptomaniac unit E) skewness and kurtosis unbounded

A

Intratype competition is competition between _____________ for the same customer. A) two retailers of the same type, such as two supermarkets B) two different types of retailers, such as a convenience store and a drug store C) a traditional retailer and a membership warehouse D) a discount retailer and a full-price/full-service retailer E) a brick-and-mortar retailer and an internet retailer

A

Last month, Harry Krishna spent $42.24 at Rite Aid, $55.37 at Walgreens, $19.87 at CVS, and $88.60 in the pharmacy section of Walmart. If we divide the amount that Harry spent at Walmart ($88.60) by his total drug-related expenditures for the month ($42.24 + $55.37 + $19.87 + $88.60), we are left with a quotient of .4299 (42.99%). Retailers refer to this figure as Walmart's __________. A) share of wallet (SOW) B) customer engagement index (CEI) C) market share D) relationship strength indicator (RSI) E) customer profitability coefficient (CPC)

D

Many inner-city areas are going through a process of ________, which is the renewal and rebuilding of offices, housing, and retailers in deteriorating areas. This practice has been criticized by some, because it often results in more affluent people moving into the area and lower-income residents having to leave because they cannot afford to stay. A) trade zone expansion B) re-zoning C) commercialization D) gentrification E) marginalization

B

Market basket analysis has found __________ to be the most common item in Americans' grocery carts. A) milk B) bananas C) toilet paper D) soft drinks E) ibuprofen

B

On March 16, 2016, a long-awaited event took place in Lexington, Kentucky: Cabela's opened its Hamburg store. According to the authors of your textbook, the correct general-merchandise retailer classification for Cabela's is __________. A) warehouse club B) category specialist C) off-price retailer D) second-tier department store E) full-line discount store

C

On her way home from classes at the university, Staci Casey remembers that she used her last paper towel that morning. Staci is aware that Walmart is likely to have the best price in town on national brands such as Bounty or Brawny. She also knows that Kroger may have one brand of paper towels or another on sale at a reasonable price. Staci does not alter her course to drive toward either Walmart or Kroger; rather, she turns into the parking lot of a Walgreens drug store that is directly on her route home from school. Staci enters the store with the intention of buying whatever brand of paper towels is available, in whatever quantity of rolls the package contains, at whatever price Walgreens is charging. The authors of your textbook would say that this scenario illustrates which "shopping situation"? A) Specialty shopping B) Destination shopping C) Convenience shopping D) Heterogeneous shopping E) Comparison shopping

D

One of the four criteria for deciding whether a retail segment is a viable target market is "reachability." A reachable segment: A) is made up of customers whose needs are significantly different from those of customers in other segments - and the retailer knows how to satisfy these needs. B) is one in which at least 50 percent of the consumers are interested in the merchandise that the retailer carries. C) has enough buying power to warrant developing a special retailing mix. D) is one to which the retailer can effectively target promotions and other elements of the retail mix. E) is a segment whose population is of known or knowable size, social characteristics, and demographic features.

C

Operating profit margin is also referred to as __________. A) cost of goods sold (COGS) B) selling, general and administrative (SG&A) C) earnings before interest, taxes, and depreciation (EBITDA) D) return on assets (ROA) E) gross margin (GM)

D

Rather than owning warehouses to store merchandise, retailers can use public warehouses that are owned and operated by an independent company. This is a form of __________. A) freight forwarding B) backhauling C) reverse logistics D) outsourcing E) pull supply chain

E

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) In the present-day North American retailing environment, a pull supply chain always delivers the best results. D) All of the above. E) Both A and B.

D

Regarding RFID, with which of the following statements would the authors of your textbook likely agree? A) RFID technology is costly to implement. B) In the future, RFID tags may replace UPC tags. C) An RFID chip can hold more data than a UPC bar code. D) All of the above. E) Both A and B.

D

Regarding a Metropolitan Statistical Area (MSA), which of the following is true? A) An MSA is a core urban area consisting of more than 50,000 inhabitants, plus any adjoining communities that have a high degree of economic and social integration with the core community. B) The Lexington-Fayette MSA consists of six counties: Bourbon, Clark, Fayette, Jessamine, Scott, and Woodford. C) It may make sense for a retailer to locate several stores in one MSA and none in some others. D) All of the above. E) None of the above.

C

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) Direct store delivery (DSD) is rarely - if ever - preferable to having merchandise delivered to the DC. B) 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. C) A DC makes it easier for a store to avoid a stockout. D) Distribution center (DC) and fulfillment center (FC) are two different names for the same facility. E) In the present-day retail industry, every retailer has a DC - even those that have only one or two stores.

D

Regarding frequent-shopper programs, with which of the following statements would the authors of your textbook likely agree? A) One of the objectives of a frequent-shopper program is to identify customers by their transactions, in order to build a customer database. B) Frequent-shopper programs often are not very effective at building repeat purchases and loyalty. C) Members of such programs generally prefer to receive something extra as a reward for their purchases, rather than lower prices. D) All of the above. E) Both A and C.

E

Regarding legal issues that affect a retailer's location decision, with which of the following would the authors of your textbook likely agree? A) In the U.S., federal law prohibits insurance companies from offering policies that protect retailers from economic damages due to below-ground environmental and health hazards, such as buried petroleum tanks or containers of acid. B) Retailers typically do not need to concern themselves with "environmental issues" such as hazardous waste disposal or the environmental impact of construction materials. Usually, only manufacturers have to navigate their way through such regulations and restrictions. C) Municipal regulations such as zoning ordinances, signage restrictions, and licensing requirements rarely - if ever - change. D) All of the above. E) None of the above.

D

Regarding omnicenters, with which of the following statements would the authors of your textbook likely agree? A) They accommodate the desires of cross-shoppers, such as the shopper who wants to visit Neiman Marcus, Walmart, and P.F. Chang's in one outing. B) Omnicenters typically combine more than one retail setting (e.g., an enclosed mall, a lifestyle center, and a power center) into the same location. C) Compared to most other shopping center locations, they spread the common area maintenance (CAM) charges among a larger pool of retail tenants, which reduces each individual retailer's share of the cost. D) All of the above. E) Both A and C.

E

Regarding retail channels, with which of the following statements would the authors of your textbook likely agree? 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) Direct selling (such as by Avon, Herbalife, Mary Kay, or Tupperware representatives) is a uniquely American phenomenon. That is, very little direct selling takes place outside the United States. D) "Multichannel marketing" and "multilevel marketing" are two different labels for the same thing. E) At present, the retail channel with the highest growth rate is the mobile channel.

A

Regarding supply chain management, with which of the following statements would the authors of your textbook likely agree? A) When supply chain management activities are performed efficiently, consumers are able to buy merchandise in the desired quantities at a preferred location and appropriate time. B) Efficient supply chain management enables retailers to carry less backup inventory. But . . . while spending less for inventory is an attractive prospect to retailers, it is also risky in that it reduces their total investment in assets and increases their inventory turnover, which in turn lowers their return on assets (ROA). C) In recent years, retailers have played a less active role in managing their supply chains. During the same period of time, producers/manufacturers have greatly increased their leadership in the supply chain. D) All of the above. E) A and C only.

E

Retail executives who are examining trade areas for a potential store will typically buy information packages (often as a software subscription, sometimes as a complete hardware + software combination) to help them make an informed decision. Such systems describe the spatial features of an area, such as rivers and roads, street addresses and the characteristics of the household at an address, and information about competing retailers in the area. The authors of your textbook refer to this type of information resource as a(n) __________. A) bird's-eye perspective generator (BPG) B) customer-spotting system (CSS) C) interactive topo(graphical) map (ITM) D) trade-area heat map (THM) E) geographic information system (GIS)

B

Sara Herrera runs an Internet-based retail operation from her spare bedroom. The online storefront - named For Reality Lovers - sells DVDs, posters, figurines, bobblehead dolls, collectors' cards, licensed logo apparel, and other memorabilia from TV reality shows such as Survivor, Dance Moms, Fear Factor, American Idol, The Apprentice, The Amazing Race, Dating in the Dark, Top Chef, Project Runway, Big Brother, Kate Plus 8, Dancing with the Stars, Jersey Shore, Naked and Afraid, Tough Enough, Real Housewives of [insert city name], Dog the Bounty Hunter, The Glee Project, Bachelor in Paradise, Here Comes Honey Boo Boo, Duck Dynasty, and Keeping Up with the Kardashians. Key financial figures for Sara's business for fiscal year 2018 include: Net Sales: $23,000 Operating Expenses: $2,200 Interest Expense: $0 Average Inventory: $5,900 Total Current Assets: $8,400 Fixed Assets: $9,400 Net After-Tax Profit: $8,150 Taxes: $3,450 Cost of Goods Sold: $9,200 What was For Reality Lovers' return on assets (ROA) in FY 2018? A) 9.57% B) 45.79% C) 60% D) 1.29 E) 35.43%

D

Shirley Turley owns Ballistic Bazaar (a gun shop and shooting range). Shirley decides she can segment her market into three distinct groups: - those who want a weapon for home protection - those who want a weapon for seasonal hunting of varmints - collectors who enjoy owning a wide variety of firearms for their intrinsic and aesthetic value Thus, she segments her market into those who are seeking safety for their household and/or family, those who are seeking recreation, and those who are seeking the satisfaction of ownership in and of itself. Which label most closely resembles the dimension that Shirley is using to segment her market? A) Family life-cycle (FLC) segmentation B) Income segmentation C) Age segmentation D) Benefit segmentation E) Geographic segmentation

D

Sondra Alondra owns Gothic Ghoullery, a specialty apparel and accessories retailer. At present, the retailer has eleven locations: three at regional malls, six in strip centers, and two standalone stores. Sondra has five-year leases for each of her standalone locations. At one of these (the Batwing Boulevard location), Sondra pays a monthly amount that is equal to $1.30 per square foot. At the other store (located on Darque Alley), Sondra pays a monthly amount that is equal to 7 percent of her previous month's sales, but no more than $3,100 per month. Sondra's current lease at the Batwing Boulevard location is a(n) __________ lease. The Darque Alley lease, on the other hand, is a(n) __________ lease. A) fixed-rate; graduated B) percentage; fixed-rate C) fixed-rate; sliding scale D) fixed-rate; percentage E) percentage; graduated

D

Spalding's Bakery is located at 760 Winchester Road (near the intersection of Winchester Road and Walton Avenue). The bakery adjoins a parking lot and is the sole occupant of its building. Which of the following is the correct label for Spalding's location? A) Neighborhood shopping center B) Community shopping center C) Convenience shopping center D) Freestanding E) Mixed-use development (MXD)

B

Summer Raines just found out that her cousin, April Showers, is coming to visit for a week. Between now and the time "Cuz" arrives (which is about six hours from now), Summer needs to buy toilet paper, diet soda, bottled water, cookies, ice cream, coffee, an air-freshener refill cartridge, laundry detergent, and all-purpose cleaner. Four retailers are in Summer's consideration set for the quick trip she is about to make: Kroger (about three miles away), Dollar General (about a mile away), IGA (about a half-mile away), and Walmart (about two miles away). Summer believes she can accomplish one-stop shopping at any one of the four stores. In the terminology of the multiattribute model, if Summer were to articulate her beliefs about the stores' performance benefits, Kroger would receive the following scores (on a scale of 1 to 10, with 10 being best). Desirability of brands carried: 9 Ease of parking-lot and front-entrance access: 4 Budge friendliness: 6 Pleasure of the shopping experience: 6 Proximity to home: 4 Summer would give Dollar General the following scores on the same performance benefits. Desirability of brands carried: 4 Ease of parking-lot and front-entrance access: 8 Budget friendliness: 10 Pleasure of the shopping experience: 3 Proximity to home: 7 Summer would give IGA the following scores on the same performance benefits. Desirability of brands carried: 5 Ease of parking-lot and front-entrance access: 6 Budget friendliness: 2 Pleasure of the shopping experience: 5 Proximity to home: 8 Summer would give Walmart the following scores. Desirability of brands carried: 8 Ease of parking-lot and front-entrance access: 5 Budget friendliness: 9 Pleasure of the shopping experience: 3 Proximity to home: 6 Summer places the following importance weights on the five key performance benefits (with 10 representing "very important" and 1 representing "very unimportant"). Desirability of brands carried: 8 Ease of parking-lot and front-entrance access: 5 Budget friendliness: 4 Pleasure of the shopping experience: 7 Proximity to home: 8 If we use the multiattribute model to predict which retailer Summer will choose, which of the following can we conclude? A) It's a tie between Kroger and Walmart B) Summer will go to Walmart C) Summer will go to IGA D) Summer will go to Kroger E) Summer will go to Dollar General

B

Tanner Danner believes that his choices about what food to eat matter a lot. He thinks that in addition to the impact of his food choices on his own physical well-being, they have profound environmental, political, and economic consequences as well. Tanner's favorite books are Coming Home to Eat (by Gary Paul Nabham), Food Rules: An Eater's Manual (by Michael Pollan), and The Complete Idiot's Guide to Urban Homesteading (by Sundari Elizabeth Kraft). After reading in HuffPost that Denver is the #1 city in the U.S. for local food, Tanner left his native Shelbyville, Kentucky and moved there. Tanner tries very diligently to eat only vegetables that were grown within a 100-mile radius of where he lives. Similarly, most of the beef, chicken, and pork that Tanner eats comes from animals that were raised and slaughtered in the surrounding region, and most of the dairy products that he consumes come from Colorado dairies. Tanner's favorite food shopping venue is the Metro Farmer's Market. For items that he can't buy at Metro Farmer's Market (which is located outdoors and closes during the winter), Tanner shops at Vitamin Cottage Natural Grocers, In Season Local Market, Foodcopia's Online Corner Store, and - if he absolutely must - Whole Foods Market. (Tanner has mixed feelings about Whole Foods because some of its products are shipped from faraway locations, which requires large amounts of fossil fuel to be burned.) Six months ago, Tanner gave up coffee and chocolate, since their base ingredients are not grown on the U.S. mainland. However, his latest hobby is growing bonsai coffee and hydroponic cacao trees in his living room, and he hopes that his harvest will enable him to begin consuming these items once more. The authors of your textbook would describe Tanner as a(n) __________. A) anarchist B) locavore C) vegan D) hipster E) malcontent

D

The NAICS code for the Kroger supermarket on Euclid Avenue in Lexington is 445110. Which of the following is also true about NAICS code 445110? A) It is also the NAICS code for Pet Valu, which is one of Kroger's neighbor on Euclid Avenue. B) It is also the NAICS code for the Walmart Supercenter in the Hamburg area of Lexington. C) The first two digits (44) identify the store's location as Fayette County. D) It is also the NAICS code of Whole Foods Market at The Summit. E) The fourth, fifth, and sixth digits (110) identify the store as belonging to The Kroger Company.

B

The Summit at Fritz Farm has over 70 shops, including Whole Foods Market, Anthropologie, Lululemon, Brooks Brothers, Frye, and Bath & Body Works. Other features include restaurants, luxury apartments, a boutique hotel, and office space. The authors of your textbook would classify The Summit at Fritz Farm as a(n) __________. A) enclosed superregional mall B) mixed-use development (MXD) C) neighborhood shopping center D) lifestyle center E) power center

A

The asset turnover management path is one of two analytical sequences that are woven into the strategic profit model. The information that is used to analyze a retailer's asset management path comes primarily from the retailer's __________. A) balance sheet B) cash flow analysis C) mission statement D) strategic plan E) income statement

A

The authors of the textbook classify __________ as a limited-assortment supermarket. A) ALDI B) Costco C) Winn-Dixie D) Albertsons E) Wegmans

A

The authors of your text define conversion rate as __________. A) the total number of customers who leave the store (or exit a website) having made a purchase, divided by the total number of shoppers who enter the store (or access the website) B) the number of customers who make a purchase in a store or at a website, divided by the number of shoppers who visit the store or website and do not make a purchase C) total items purchased, divided by the total number of shoppers who enter a store or Web site D) number of customers who buy from a sales associate, divided by the number of shoppers greeted by that sales associate E) the total quantity of items purchased, divided by the total number of shoppers who entered the store (or accessed a website)

B

The authors of your text state that "RFID enables the accurate, real-time tracking of every single product from manufacturer to checkout in the store," thus decreasing warehouse, distribution, and inventory costs, as well as reducing stockouts and theft. Ultimately, this increases margins. The letters RFID stand for __________. A) real-time freight information disclosure B) radio frequency identification C) remote forecasting input dynamics D) rail facility internet dispatch E) revenue function impact derivative

E

The authors of your textbook define __________ as "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." A) vendor-managed inventory (VMI) B) logistics C) electronic data interchange (EDI) D) direct store delivery (DSD) E) supply chain management

D

The authors of your textbook define a retail strategy as a statement that identifies (1) the retailer's target market, (2) the format the retailer plans to use to satisfy the target market's needs, and (3) __________. A) a graphic representation of the retailer's trade area B) a summary of the company's approach to site selection C) a "competitive intelligence" section that analyzes the retailer's three largest intratype competitors D) the bases on which the retailer plans to build a sustainable competitive advantage E) the bio(s) of the company's principal owners (if private) or board of directors (if publicly traded)

C

The authors of your textbook describe [a] __________ as "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

E

The authors of your textbook describe retailing as ... A) the personal communication of information to unselfishly persuade a prospective customer to buy something - a good, service or something else - that satisfies that individual's needs B) the activity, set of institutions, and processes for creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large C) a business structure of interdependent organizations that reach from the point of product origin to the consumer with the purpose of moving products to their final consumption destination D) the study of the processes involved when individuals or groups select, purchase, use, or dispose of products, services, ideas, or experiences to satisfy needs and desires E) the set of business activities that adds value to the products and services sold to consumers for their personal or family use

E

The authors of your textbook state that a retail __________ "defines the way a retailer sells and delivers merchandise and services to its customers." A) location B) modality C) oracle D) analytic E) channel

C

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

E

The authors of your textbook state that retailers create value by ordering large quantities that are convenient for manufacturers to ship, and then offering them for sale in the smaller quantities that are convenient for consumers to buy. According to the authors, the technical name for this activity is ... A) inventory shrinkage B) re-assorting C) reductionist retailing D) inventory turnover E) breaking bulk

C

The authors of your textbook would describe Fazoli's at Zandale Shopping Center as a(n) __________. A) natural barrier to site accessibility B) destination store C) outparcel D) anchor store E) center of retail gravitation

E

The emerging international markets that are sometimes referred to as "the BRIC" countries are __________. A) Bolivia, Rhodesia, Indonesia, and Chile B) Bangladesh, Republic of the Congo, Iceland, and Cambodia C) Bulgaria, Romania, Iran, and Colombia D) Burma, Rwanda, Israel, and Cuba E) none of the above

E

The retail mix consists of merchandise management, pricing, communication mix, store design and display, customer service, and __________. A) branding B) signage C) inventory D) information technology E) location

A

The s in s-retailing stands for __________. An example would be when __________. A) social; Jay Walker clicks the buy button on a picture on Instagram B) store; Ima Payne shops and compares items only in brick-and-mortar stores; she also makes her purchase only in stores C) skimming; Crystal Ball has her credit card skimmed when making an online purchase D) scan; Mason Dixon 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

The strategic profit model graphically summarizes the factors that affect a retail firm's financial performance. A manager or analyst who completes the strategic profit model will compute several dollar figures and ratios and "plug them into" the model. The final computation - and the main point of using the model - will be __________, which is reported as a __________. A) net liquidity; dollar figure B) net profit margin; percentage C) return on assets (ROA); ratio D) gross margin; dollar figure E) average inventory; dollar figure

B

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) opportunity cost of defection (OCD) B) customer lifetime value (CLV) C) average lifetime profit (LTP) D) recency-frequency-monetary coefficient (RFMC) E) break-even customer acquisition cost (CAQ)

B

To develop and refine its target marketing and positioning, a retailer may rely on a two-dimensional plot of consumers' perceptions of the retailer and its competitors. This visual aid is called a __________. A) Venn diagram B) perceptual map C) planogram D) Blake Mouton grid E) PERT diagram

C

To minimize conflict among franchisees, most franchise agreements grant franchisees an exclusive territory. This can be one of the benefits of operating a franchise, namely the avoidance of __________. A) replication B) dissemblance C) cannibalization D) synergism E) convergence

B

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 __________ . A) legacy-store sales growth B) comparable-store sales growth C) cornerstone-store sales growth D) flagship-store sales growth E) charter-store sales growth

A

Trade area zones are best determined based upon __________. A) customer drive time B) customer interests C) demographics D) psychographics E) topographical characteristics

A

Tucker Rucker has little to no preference for a brand of tires. He says, "Goodyear, Bridgestone, Toyo, Michelin, Uniroyal, Dunlop, BF Goodrich, Cooper, Hankook, Yokohama, Mastercraft, Cooper, General - they're all about the same. Round, black, and made of rubber." Tucker will go only one place to buy tires for his Ford F-150 truck and for the family Taurus: Walmart Auto Care Center. If one of the vehicles needs tires, Tucker goes to Walmart. Once he's there, he'll try to keep the process short and simple by buying whatever the sales associate recommends, unless he considers the price to be outrageously out of line. Based on the authors' explanation of "types of buying decisions," Tucker's tire shopping behavior most closely resembles __________. A) habitual decision making B) limited problem solving C) autonomic decision making D) extended problem solving E) impulse buying

D

When Paul Swentzel, principal owner and CEO of S&S Tire (a retail chain), purchased a Bridgestone/Firestone distributorship (a wholesaler), S&S became a wholesaler selling to S&S stores, as well as a wholesaler selling to the S&S chain's retail competitors. When S&S Tire retail stores began buying Bridgestone and Firestone tires from a distributorship that was also owned by S&S Tire, the company was engaging in __________. A) mobile retailing B) social retailing C) forward integration D) backward integration E) scrambled merchandising

A

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) showrooming B) channeling C) cross-scanning D) keystoning E) treachery

E

When a manufacturer ships merchandise to a retailer's distribution center, a(n) __________ tells the retailer's distribution center what has been shipped and when it will be delivered. A) radio frequency identification (RFID) tag B) shipping document (SD) C) universal product code (UPC) D) bill of lading (BOL) E) advance shipping notice (ASN)

D

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) its positioning strategy B) the density of the target market in relation to the location C) the typical shopping behavior of members of its target market D) all of the above E) none of the above

A

When evaluating the performance of a retailer, which of the following is the best financial performance measurement to use? A) Return on assets B) Net margin C) Asset turnover D) Gross margin E) Earnings before interests, taxes, and depreciation

C

Which method of entering the global marketplace is the most expensive and also the most risky - but also offers the highest profit potential? A) A strategic alliance B) A joint venture C) Direct investment D) Franchising

D

Which of the following accurately portrays the impact of an efficient supply chain and information system? A) More efficient supply chain >> more attractive, tailored assortments >> more customers >> higher net sales >> higher gross margin >> higher net profit >> higher net profit margin >> higher ROA B) More efficient supply chain >> lower cost of goods sold >> higher gross margin >> higher net profit >> higher net profit margin >> higher ROA C) More efficient supply chain >> smaller investment in inventory >> lower current assets >> lower total assets >> greater asset turnover >> higher ROA D) All of the above. E) A and B only.

A

Which of the following does not describe asset turnover? A) In the strategic profit model, it is on the profit management path. B) The "asset" part of asset turnover includes both current assets and fixed assets. C) It is the retailer's net sales divided by its total assets. D) It assesses the productivity of a firm's investments in its assets. E) It indicates how many sales dollars are generated for each dollar invested in assets.

C

Which of the following is not a retail channel? A) Brick-and-mortar stores B) Print catalogs C) HGTV D) Direct selling E) Mobile retail websites

D

Which of the following is not one of the overriding principles of conscious marketing? A) Recognition of the retailing firm's greater purpose B) The understanding that decisions are ethically based C) The presence of conscious leadership, creating a corporate culture D) Maximizing sales revenue, profit, and market share E) Consideration of stakeholders and their interdependence

E

Which of the following pairs of items would retailers think of as the same SKU? A) A 6.75-ounce package of Oreo SugarFree cookies and a 6.75-ounce package of Oreo Reduced Fat cookies B) An 18-ounce package of Oreo cookies and an 18-ounce package of Oreo Double Stuf cookies C) A 3-ounce package of Oreo Minis and an 8-ounce package of Oreo Minis D) A 15-ounce package of Oreo Double Delight Chocolate Mint'n Creme cookies and a 15-ounce package of Oreo Double Delight Peanut Butter'n Chocolate Cream cookies E) A 14.3-ounce package of Golden Oreo cookies and a 14.3-ounce package of Golden Oreo cookies

C

Which of the following ratios appears in the strategic profit model and is one of the terms used to calculate return on assets (ROA)? A) Current liabilities B) Gross margin C) Net profit margin D) Retained earnings E) Inventory turnover

D

With regard to developing and maintaining a sustainable competitive advantage, with which of the following statements would the authors of your textbook likely agree? A) Supply chain efficiency can be a source of sustainable competitive advantage. B) Location can be a source of sustainable competitive advantage. C) A carefully-cultivated brand image can be a source of sustainable competitive advantage. D) All of the above. E) Both B and C.

C

With regard to gathering identifying information from customers, which of the following statements is consistent with the information that appears in your textbook? A) Biometric technology is available that would use customers' scanned fingerprints to collect payment, track purchases, and offer rewards. However, at of the time the textbook was published, no U.S. retailer had started using finger-scan technology. B) At present, when customers use third-party credit cards (e.g., a Chase or Citi Visa or MasterCard) for in-store purchases, the retailer gains access to the same identifying information (e.g., customer address, preferences, purchase history) that it can access when the customer uses a store-issued private-label credit card (e.g., a Target REDcard or a Kohl's card). C) It is easier to gather a customer's identifying information when the customer makes an online purchase than when the customer makes an in-store purchase. D) All of the above. E) None of the above.

B

__________ refers to the total amount of money that a retailer pays vendors for the merchandise that it (i.e., the retailer) subsequently sells. A) Selling, general, and administrative (SG&A) expenses B) Cost of goods sold (COGS) C) Current ratio D) Return on assets (ROA) E) Gross margin

E

_______________ is the process of grouping consumers into market segments based on what they want the product to do for them. A) Demographic segmentation B) Geographic segmentation C) Psychographic segmentation D) Buying situation segmentation E) Benefit segmentation