Retail Food Market Management Old Exams

List the four steps involved in developing a retail communication program.

(1) Setting communication objectives that are specific and related to the retail communication mix's effect on the customer's decision-making process (2) Determining a budget through a method, the best method being the marginal analysis method (3) Allocating the budget, deciding how much of the budget should go into what communication element, merchandise category, geographic regions, etc. (4) Implementing and evaluating (then planning again for the next period)

WorkIt is a popular exercise line that prides itself on its versatility. Last year, its net sales were $1,750,000 with cost of goods of $390,000. The company's operating expenses totaled $960,000. Calculate the company's net operating profit margin percentage. 22.2% 12.5% 22.9% 19.3% 77.1%

22.9%

According to the McKinsey's State of Grocery Chains in North America study (2021), what percentage of consumers want to focus on healthier and better-for-you options in 2022? 22% 45% 33% 51%

45%

Father Christmas is a retail store that sells a unique Santa made from fur, wool, and tapestry. If 150 customers wish to buy a Santa from this store, and it sells 120 before running out of stock, what is its service level? 15% 20% 85% 88% 80%

80%

In response to a growing trend of workers eating at their work stations, Protect Your Stuff, an Internet retailer, offers a line of products that can be used to protect office equipment and furniture, including a plastic sheath for a computer keyboard and a spill-proof cup. Last year, its net sales were $1,450,000 with cost of goods sold for $353,000. The company's expenses last year totaled $960,000. Calculate the company's net profit percentage. 66.2% 24.3% 8.0% 9.4% 75.6%

9.4%

In a national print advertisement, Levi's was showcasing its new line of denim jackets. At the bottom of the ad, the Macy's logo was found as a place where the new jackets could be purchased by customers. This is an example of a double pocket promotion. partnering promotions. a spot promotion. co-op advertising. a double truck.

?

Many products in a supermarket can be found in more than one place throughout the stores. What type of retail analytics technique is used to decide where to place products in a store? market basket analysis merchandising analysis location analysis supermarket analysis shopping cart analysis

?

Why was odd pricing used in the early twentieth century? Odd pricing saved on distribution costs. It offered a limited number of predetermined price points making pricing easier. It was used to increase traffic flow into stores. It eliminated confusion when a customer shopped in different locations. It reduced losses due to employee theft.

?

________ of a retailer's merchandise is the number of SKUs within a subcategory. Horizontal integration Merchandise breadth Merchandise mixture Variety Assortment

?

4 criteria to evaluate if a Retail Segment is a viable market

actionable, identifiable, substantial, and reachable

Garden Fresh, a large food retailer, purchases vegetables from several different countries. When the vegetables arrive in distribution centers across the United States, the quantities are reduced to amounts that are appropriate for store delivery. The stores, in turn, offer the vegetables in quantities that depend on the consumption pattern of the customers. This act of offering products in smaller quantities based on consumption patterns is known as breaking bulk. forward integration. holding inventory. intensive distribution. consumerization.

breaking bulk

Stop-n-Go is a popular convenience store. It notices that most of its customers visit the store during the week to shop for products such as milk and bread. Therefore, it maintains sufficient stock of these products. Which segmentation methods is the store using? demographic segmentation personality segmentation geographic segmentation buying situation segmentation psychographic segmentation

buying situation segmentation

_____ occurs when customers gather information from a retailer's channel and buy products from a competitor's channel. Omniretailing Automated retailing Channel expansion Channel migration Channel integration

channel migration

Hyojun leads the strategic retail planning process in his organization. His team has defined the business mission. Hyojun then directs the team to analyze the firm's internal and external environments, including identifying new opportunities. What strategic planning step does this represent? evaluating performance and making adjustments developing a retail mix to implement strategy evaluating strategic alternatives conducting a SWOT analysis establishing specific objectives and allocating resources

conducting a SWOT analysis

Retailers want the________ rate to be high, because it means visitors to the website are doing what the retailer intended. click bot seed conversion bounce

conversion

One important measure of social media's effectiveness is the percentage of site visitors who take the action the site owner hoped for—such as by clicking or buying, for example. This measure is called the site's click path. extended network. conversion rate. hits. bounce rate.

conversion rate

Which retail analytic application involves the use of search techniques to gain insights into customers' buying patterns? data cloning factor analysis regression analysis data mining data scraping

data mining

Purchase data collected at the point of sale goes into a huge database known as a(n) spreadsheet. data warehouse. computerized processing unit. database chain. electronic data interchange.

data warehouse

If a retailer's gross margin percent is on plan, however the retailer is tracking below plan for net operating profit margin plan, which of these options would help improve their situation? increase markdowns borrowing money from a lender decrease selling, general and administrative expenses increase cost of goods increase payroll

decrease selling, general and administrative expenses

All a retailer needs to be successful in the digital environment is a website in which to sell its products. T/F

false

Horizontal integration describes diversification by retailers into wholesaling or manufacturing. T/F

false

Retailers like social media-based retailing because they can always control the message being delivered. T/F

false

Shorter lead times result in a higher level of backup stock required to maintain the same level of product availability. T/F

false

The first step in a digital retailing campaign is to identify the target audience. T/F

false

The first step in the strategic retail planning process is to conduct a SWOT analysis. T/F

false

Which segmentation method would be most appropriate for a retailer selling beach apparel? geographic segmentation demographic segmentation benefit segmentation buying situation segmentation personality segmentation

geographic segementation

What kind of consumer decision-making process is most closely associated with retailer loyalty? contemplation extended problem solving impulsive problem solving limited problem solving habitual decision making

habitual decision making

Which value-creating activity performed by retailers helps in having products available when consumers want them? assisting in the supply chain holding inventory providing assortments breaking bulk providing services

holding inventory

The first step in the process of creating a social media campaign is to identify the target audience. develop a budget. monitor the program. design the elements of the campaign. identify a strategy and goals

identify a strategy and goals

Net profit margin can be improved by increasing the net margin and lowering sales. increasing the gross margin and lowering expenses. decreasing the gross margin and increasing expenses. decreasing the gross margin and lowering sales. decreasing the net margin and lowering expenses.

increasing the gross margin and lowering expenses.

In the buying process, which step follows the recognition of a need? evaluation of consideration sets evaluation of alternatives information search post-purchase evaluation composite segmentation

information search

The approach of using a 50% markup is known as________ and would result in the retail price being double the cost. budget costing keystoning regular costing activity costing cost plus costing

keystoning

The first stage of the framework used to interact with customers to move them through their purchase process is to analyze what the customer has to say. engage the customer through ads. get the customer excited. develop customer touchpoints. listen to the customer.

listen to the customer

What are the elements of the three-part digital retailing framework? analyze, develop, engage listen, engage, evaluate listen, analyze, do reach, reply, remind excite, engage, interact

listen, analyze, do

Which retail growth strategy has the greatest chance of succeeding? related diversification growth opportunity retail format development growth opportunity unrelated diversification growth opportunity market expansion growth opportunity market penetration growth opportunity

market penetration growth opportunity

Which characteristic is least likely to result in sustainable competitive advantage? coordination of procurement efforts more sales promotions ability to get scarce merchandise shared systems with vendors convenient locations

more sales promotions

Giant, a retail store, is offering two 6-packs of beer for $14.50. The price for a single 6-pack is $8.69. What pricing strategy is Giant using? conjoint pricing psychological pricing multiple-unit pricing price bundling price lining

multiple-unit pricing

Influencer marketing is a type of________ media. commercial owned earned paid unsolicited

paid

A retailer that is vertically integrated outsources all supply chain activities to independent firms. has limited control on the activities of the supply chain. concentrates on selling only to businesses. performs more than one activity in the distribution channel. concentrates only on operating its own retail stores.

performs more than one activity in the distribution channel.

Connor is struggling with the price of produce at his well-established produce markets. Recently, local farmers started increasing produce prices for Connor due to the upsurge in gas prices. Now, he feels it is time to pass the costs onto his customers. What should Connor use to determine the effect of price changes? markup percentage break-even point quantity fixed costs price elasticity reference price

price elasticity

2 critical concepts for understanding consumers

primary motivation and resources, which are found using the Values of Life Survey (VALS)

Companies can find out a lot about customers by listening to (and monitoring) what they say on their social networks, blogs, review sites, and so on. One technique that firms use to monitor such activity is called engagement analysis. content analysis. reaction analysis. engagement analysis. sentiment analysis.

sentiment analysis

Bashir's Market has all the following characteristics. Which characteristic is likely to be a more sustainable competitive advantage? extended hours of operation more sales promotions more merchandise shared systems with vendors more employees

shared systems with vendors

5 approaches for retailers to develop a sustainable competitive advantage

strong relationships with customers, strong relationships with vendors, efficient internal operations, location, and engaging in multiple sources of advantage

A cafe focuses primarily on residents who are ages 18 to 35 and earn about $30,000 to $60,000 annually. This segmentation of customers is known as its labor market. retail market. target market. global market. virtual market.

target market

In the digital retailing marketspace, analyzing how consumers move through the purchase process is referred to as the digital shopping cart. customer attribution. the e-commerce purchase funnel. the customer click path. the customer bounce rate.

the e-commerce purchase funnel

Conversion rate can be described as the percentage of customers who enter a store and buy products from that same store. the time pressure under which the purchase must be made. the retailer's score when evaluated on the basis of attributes. the percentage of customers buying only premium products. the percentage of customers buying both premium and budget products.

the percentage of customers who enter a store and buy products from that same store.

What is the primary objective of the CRM process? to develop a base of loyal customers who patronize the retailer frequently to offer the best prices possible to their target customer to increase the foot-traffic into retail stores to attract customers away from competitors to satisfy customers by providing discounts and special offers

to develop a base of loyal customers who patronize the retailer frequently

What is the goal of the connection element of the digital retailing framework? to provide relevant and up-to-date information to help facilitate the purchase process to get customers to interact and engage with the firm continuously in a positive manner to seamlessly connect all the firm's online offerings (website, social media platforms, etc.) to help customers easily navigate through the firm's website to connect customers to one of the firm's core goals

to get customers to interact and engage with the firm continuously in a positive manner

A benefit of psychographic segmentation is you'll find out how your customers use your product or service and why. T/F

true

An advance shipping notice (ASN) is a document that tells the retailer what will be in a shipment. T/F

true

Frequent-shopper programs can easily be duplicated by competitors. T/F

true

In a pull supply chain, there is less likelihood of being overstocked or out of stock because the store requests for merchandise are based on customer demand. T/F

true

Making an unplanned purchase is an example of limited problem solving. T/F

true

When consumers go shopping for pleasure, they are seeking to satisfy their hedonic needs. T/F

true

Retailers encourage impulse-buying behavior by encouraging cross-shopping. concentrating on composite segmentation. improving their performance on all benefits. using prominent point-of-purchase displays. readily providing information for making purchase decisions.

using prominent point-of-purchase displays.

When customers go shopping to accomplish a specific task, they are seeking to satisfy emotional needs. impulse buying desires. cultural requirements. utilitarian needs. hedonic needs.

utilitarian needs

Hudson runs a store featuring handmade dinnerware and decorative pottery. Since demand was high and supplies were low, he decides to buy an old warehouse and then hire craftspeople to work there to produce the plates and pottery he sells. The store would provide all the supplies needed and would be the only customer. This business is engaging in unrelated diversification. market expansion. market penetration. vertical integration. horizontal integration.

vertical integration

________ is the computer-to-computer exchange of business documents from the retailer to the vendor, and vendor to retailer. Universal Product Code (UPC) system Electronic data interchange (EDI) system Point of sale (POS) Automated replenishment system Collaborative planning, forecasting, and replenishment (CPFR)

Electronic data interchange (EDI) system

How does an everyday low-pricing (EDLP) strategy help retailers with their inventory management process? It increases the number of rain checks. It reduces large variations in demand. It results in a need for more backup stock. It increases the sales of slow-moving merchandise. It leads to more frequent sales and markdowns.

It reduces large variations in demand.

Why would a retailer desire to have private-label or store brands?

Key driver would be the unique product offering to drive customer loyalty, resulting in a sustainable competitive advantage.

Which strategy aids in reducing channel migration? Persuade suppliers to increase their sales forecasts. Increase efficiencies of supply chain management. Encourage vendors to deliver complete assortments. Offer uniquely relevant information to customers.

Offer uniquely relevant information to customers.

Which statement is true of frequent-shopper programs? Effective frequent-shopper programs are easy to develop. They are highly beneficial for building long-term customer loyalty. Customers are able to clearly differentiate the programs offered by different retailers. Competitive advantages gained from these programs are sustainable. The discounts offered appeal mostly to price-conscious customers.

The discounts offered appeal mostly to price-conscious customers.

Which scenario best exemplifies how the family influences buying decisions? Money is tight in Preston's house, so he refuses to make any luxury purchases. Norah decides to shop for back-to-school clothing at the store her friend Tracie suggests, since Tracie has five children of her own. When grocery shopping, Patty likes to go to superstores so she can buy food and household items at the same time. Since Yolanda cannot afford to buy lavish gifts for her children, she spends more on smaller purchases to make them feel like she is splurging. While planning a cruise, Stella makes sure the ship has on-site baby sitting and activities for her older children.

While planning a cruise, Stella makes sure the ship has on-site baby sitting and activities for her older children.