Retail Management Test 2

D. develop an integrates marketing communication program to deliver a consistent message

What can a retailer do to keep customers from being confused about the retailers image? A. standard pricing B. re-design stores to suit contemporary tastes C. change the offerings based on the current facts to stay contemporary D. develop an integrates marketing communication program to deliver a consistent message

True

Developers will usually look for high income neighborhoods build lifestyle centers. T or F

C. Power

Lowe's and Best Buy would most likely be found in a _____ shopping center. A. central business B. strip C. Power D. Theme/Festival

Gentrification

Many urban area are going through a process of ____ - the renewal and rebuilding of offices, housing, and retailers in deteriorating areas - coupled with an influx of more affluent people that displaces the former poorer residents

Staple merchandise

Merchandise like mens crew socks, canned peas, college ruled loose leaf paper and 60 watt light bulbs would be considered _____

D. bring additional shoppers to the store.

Mixed-use development are popular with retailers because they: A. offer short-term leasing agreements B. provides free storage facilities to attract retailers C. offer low rent D. bring additional shoppers to the store.

True

Mobile marketing is marketing through wireless handled devices, such as cellular telephones, and m-commerce or mobile commerce involves completing a transaction via the cell phone. T or F

True

Monitoring sales and generating replacement orders with continuous replenishment is used for staple merchandise. T or F

False

Most retailers strategy is to sell to anyone that will buy from them rather than to just a certain segment of the population. T or F

Neighborhood Center

On his way home from work, phil stopped at a shopping center. he parked in front of the dry cleaner, where he could pick up his suit. he did not have to move his car because next door was a gift shop where he could pick up a baby gift for his new niece. conveniently enough, next door to that store was a Kroger supermarket, where he purchased essentials like milk and cornflake cereal. Phil was shopping in what type of shopping center?

A. aided recall

Research shows that 96% of people recognize the bullseye as being the logo for Target stores which is a higher percentage than the Nike swoosh or Apple computers logo. It can be said that the Target bullseye has high A. aided recall B. brand publicity C. top of mind awareness D. unaided recall

D. email

Retailers communicate with customers both online and offline and interactively and passively. Which method of communication best describes online/passive? A. telemarketing B. direct mail and catalogs C. mobile marketing D. email

D. sales cannibalization

Retailers must consider tradeoffs between lower operating costs and potential ____ from having multiple stores in an area. A. economic downturn B. channel integration C. congestion of people D. sales cannibalization

A. lower prices

Retailers will use all BUT which of the following to retain and increase share of wallet from their best customer. A. lower prices B. special customer service C. frequent shopper programs D. personalization

C. at freestanding sites

Sam's Club requires a tremendous amount of operating space; therefore, you are most likely to find them located ____. A. in a neighborhood center B. in strip centers C. at freestanding sites D. in central business districts

True

Seasonal merchandise consists of items whose sales fluctuate dramatically depending on the time of the year. T of F

False (shorter lead times result in lower level of backup stock requires to maintain the same level of product availability)

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

Market Basket Analysis

Since Yolonda used _____ to analyze what her customers buy together during a single store visit, she knows to place facial tissues by. the cold medicine and Wonder bread by the skippy peanut butter.

C. staple merchandise

Smart Wash is a popular brand of detergent powder. The stock needs to be continuously replenishedin stores and supermarkets due to its high demand. The detergent powder belongs to the category of_____. A. expected merchandise B. sample merchandise C. staple merchandise D. seasonal merchandise E. fashion merchandise

True

The name of a retailer is a brand that indicates to consumers the type of merchandise and services offered by the retailer. T or F

Brand Equity

The value that brand image offers retailers is referred to as ____

True

This top of mind awareness can be achieved through many different ways, one way being utilizing memorable symbols such as brand logo or slogans. T or F

False

To be fair, retailers must provide the same frequent buyer perks to all customers. T or F

True

Traffic count is not as important for destination retailers as compared to retailers who rely on impulse purchases. T or F

Brand

A _____ is a distinguishing name or symbol that identifies the products offered by a seller.

Trade area

A _____ is the geographic area encompassing most of the customers who would patronize a specific retail site.

Assortment Plan

A ______ is a list of the SKU that a retailer will offer in a merchandise category and thus reflects the variety and assortment that the retailer plans to offer in a merchandise category.

Backup stock

A catalog retailer of kitchen items that sells aluminum muffin pans has found that some weeks it sells 40 pans, another weeks it sells none. A reorder can take up to three weeks The probability of running out of pans and alienating its customers can be alleviated by maintaining____

False (should be parasite store)

A destination store is one that does NOT create its own traffic and whose trade area is determines by the dominant retailer in the shopping center. T or F

E. The manager should develop an integrated marketing communication program.

A retailer's magazine advertising campaign builds an image of elegance and high fashion, yet the store's sales promotions emphasize low prices. Because of the inconsistencies, consumers are left confused about the retailer's image and tend to shop elsewhere. What should the store manager do to resolve the problem of inconsistency with the communication mix? A. The manager should re-train associates to support the image of elegance and fashion. B. The manager should re-examine the elements of the mix that can be eliminated. C. The manager should imitate the communication programs of successful competitors. D. The manager should reduce the prices of the products across all categories. E. The manager should develop an integrated marketing communication program.

A. Mcdonalds

A shopper is most likely to notice a standardized customer service in ____ A. Mcdonalds B. Ritz Carlton C. Nordstrom D. Marriot Hotel

False

Aided recall is the highest level of brand awareness. T or F

D. where the merchandise was produced

Allowing merchandise to stores is based upon all BUT the following decisions: A. when to allocate the merchandise to different stores B. what type of merchandise to allocate C. how much merchandise to allocate to each store D. where the merchandise was produced

A. privacy

Although having information about individual customer provides provides more benefits to their better customers, consumers are concerned about _____ A. privacy B. loyalty C. price promotions D. descriptive information

Lifestyle Center

Bea is a young professional living in the suburbs. She and a friend decide to meet on a Saturday for a day of shopping, dining, and a movie. With it being a beautiful day outside, they wish to enjoy the weather but also find a place that features upscale apparel shops and boutiques. They most likely will choose to patronize a(n) _________

True

Because sales of a SKU and receipts of orders from the vendor cannot be predicted with perfect accuracy the retailer has to carry backup stock as a cushion so it doesn't run out of merchandise before the next order arrives. T or F

D. identifying information

Before Emily started her transaction at a retailer, she was asked by the cashier for her phone number. This practice is gathering ____. A. cookies B. share of wallet C. loyalty likelihood D. identifying information

False

Brand association is the ability of a potential customer to recognize or recall that the brand name is a type of retailer or product/service. T. or F

A. Building relationships with their better customers

CRM is based on the philosophy that retailers can increase their profitability by ____. A. Building relationships with their better customers B. extending hours of operation C. advertising more D. providing better assortments

E. personalized service

Catherine was delighted with the new spring apparel at American Eagle. The sales associate greeted her when she entered the store, showed her the new spring arrivals, then stayed with her throughout her shopping experience bringing her additional items while Catherine was in the dressing room. This sales service can best be described as ______. A. standardization services B. individualized retailing C. micro marketing D. personalized retailing E. personalized service

A. brand association of Walt Disney

Cinderellas castle would be an example of an _______ A. brand association of Walt Disney B. aided recall of all Disney stories C. brand exposure of Cinderella dolls D. brand awareness of the Cinderella story

A. rents in malls are higher than other locations

Even though malls are a good site option for retailers, they have their disadvantages. which of the following describes one of these disadvantages? A. rents in malls are higher than other locations B. competition is kept to a minimum because developers try not to have more than one specialty stores for each product category C. each retailer is allowed to establish its hours of operation D. the mall management has no control over exterior signs

False (staple merchandise are categories that are in continuous demand over an extended time period)

Fashion merchandise consists of items that are in continuous demand over an extended time period. T or F

80%

Father Christmas is a retail store in Georgia that sells one of a kind Santas made from fur, wool, and tapestry. If 150 customers wish to buy Santa from this store and it sells 120 before running out of stock, what is its service level?

False

Free standing stores rely mostly on foot-traffic to bring in customers. T or F

True

Frequent shopper programs are expensive to implement and manage? T or F

A. share of wallet

In the past, retailers used mass media advertising and price promotions to all customers. Now, they are beginning to provide more value to their best customers by using targeted promotions to increase their _____ A. share of wallet B. profit sharing C. open wallet syndrome D. customer base

C. a form of interactive offline communication

In-store demonstrations are ____ A. a form of offline passive communication B. a form of online interactive communication C. a form of interactive offline communication D. a form of online passive communication

True

It is hard to gain competitive advantage with frequent shopper programs as programs can be duplicated. T or F

False

It is proven that frequent shopper programs always increase customer spending and loyalty. T or F

B. public relations

Target Corporation is planning to give $500 million by. the end of 2015 to support education and help kids learn to read. Since 1962, Target has committed 5% of its income to support local communities. Target would most likely to use _____ to communicate their continued commitment to local communities. A. direct marketing B. public relations C. cooperative advertising D. brand awareness

Mixed-use development

The Watertower Place on Michigan Avenue in Chicago contains Saks Fifth Avenue, Nordstrom, many high-quality boutiques, amongst office space and residential condominiums. It is an example of a(n)_______

RFM Analysis

The ____ is used by catalog retailers and direct markets to identify the best prospects on the basis of when was the last time the customers made a purchase, how often they make purchases and how much they spent.

False

The customer lifetime value is the expected contribution from the customer to the trails profits over his or her entire relationship with the retailer. T or F

C. integrate all the communication elements to deliver a comprehensive, consistent message to all customer over time and across al elements of their retail mix and channels

What do retailers need to do to develop a strong set of associations and a clearly defines brand image. A. focus on specifics of the retail mix that directly affect the way the customer shops B. offer the services the customer wants C. integrate all the communication elements to deliver a comprehensive, consistent message to all customer over time and across al elements of their retail mix and channels D. keep their prices low

Collecting customer data

What is the first step in the CRM process?

Store within a store

When Rebekah took her kids to Kmart, she noticed a Little Caesar's Pizza restaurant near the entrance, which prompted her to stop for lunch. This restaurant is a great example of a(n) ______.

Customer loyalty program

When a customer joins the BestBuy Reward Zone, they receive one point on every purchase they make at Best Buy stores and BestBuy.com. Reward Zone points are converted to reward certificates which can be redeemed for merchandise at Best Buy stores or on BestBuy.com. Reward Zone Members also receive exclusive members only offers throughout the year and a "special reward" for their birthday. This describes a(n) ____.

B. public relations

When a retailer makes a generous contribution to a charity and the event is covered on the evening news, it would be a method of communicating through_______ A. direct marketing B. public relations C. cooperative advertising D. sales promotion

Aided recall

When customers indicate they know the brand when the name is represented to them it is referred to as ______

Top of Mind Awareeness

When customers mention a specific brand name first when they are asked about the type of retailer, category or type of service it is referred to as ___

Top of Mind Awareness

When the group of children were asked where they wanted to eat lunch after their morning fiedl trip, they all shouted "McDonalds". Based upon this scenario, it can be said that McDonals has

B. new merchandise is continually available to customers

When there is a high inventory turnover, there is an increase in sales because: A. price points are set higher to accommodate for potential sales loss. B. new merchandise is continually available to customers. C. the merchandise begins to look shopworn. D. sales are increased by reducing prices. E. more money is available to buy new merchandise

A. Reduced inventory turnover

Which is NOT a benefit of using RFID over traditional bar codes? A. Reduced inventory turnover B. Reduced warehouse and distribution labor costs C. Reduced point of sale labor costs D. Reduced theft

B. pedestrian traffic that might drop in because they are walking by

Which is NOT an advantage in choose a free-standing store as your retail locations? A. separate from competition B. pedestrian traffic that might drop in because they are walking by C. visibility to customers who drive by D. easy parking

D. develop a forecast for sales

Which is the first step in merchandise management planning? A. determine the appropriate inventory levels B. allocate merchandise for stores C. execute the plan D. develop a forecast for sales

E. The number of different merchandising subcategories within a store

Which of the following best describes variety? A. Product availability B. Inventory that results from a replenishment process C. The percentage of demand for a particular SKU that is satisfied D. The number of SKUs in a store E. The number of different merchandising subcategories within a store

C. forecasts are typically based on extrapolating historical sales

Which of the following describes a forecasting approach for staple merchandise categories? A. buyers for these categories conduct focus groups studies to find out consumer opinions B. buyers need to find out what customers are going to want in the future C. forecasts are typically based on extrapolating historical sales D. buyers for these categories depend upon category sales forecasts which vendors provide

A. Forecasting sales is simplistic and predictable

Which of the following does NOT describe a fashion merchandise category? A. Forecasting sales is simplistic and predictable B. New products are continually introduced into test categories C. It consists of item which are inly in demand for a relatively short period of time D. The introduction of new products makes the existing products obsolete

C. a customer who spends $800 twice a year has a higher CLV than a customer that spends $100 a month

Which of the following does NOT describe how retailers use a customer lifetime value (CLV)? A. an RFM analysis can be used in estimating their customers life time value B. CLV should be estimated under the assumption that the customers future purchases behaviors will be the same as they have been in the past. C. a customer who spends $800 twice a year has a higher CLV than a customer that spends $100 a month D. CLV is used to identify and cater to the best, more profitable customer.

A. frequent store deliveries

Which of the following factors does NOT contribute to the increase of buffer stock level? A. frequent store deliveries B. high fluctuations in demand C. long lead time for delivery from the vendor D. Fluctuations in vendor lead time

A. store management

Which of the following is NOT a vehicle through which retailers communicate with their customers? A. store management B. sales promotion C. advertising D. public relations

B. .Buyers for fashion merchandise categories have a high degree of flexibility in correcting forecasting errors.

Which of the following is NOT true of fashion merchandise categories? A.Forecasting the sales for fashion merchandise categories is more challenging than forecasting for staple goods. B.Buyers for fashion merchandise categories have a high degree of flexibility in correcting forecasting errors. C. They have a short life cycle. D. Buyers often do not have a chance to reorder additional merchandise after an initial order is placed. E. New products are continuously being introduced

A. significant investment is needed to develop, manage, and market private labels

Which of the following is a drawback of selling private label merchandise? A. significant investment is needed to develop, manage, and market private labels B. national brands are far superior to private labels C. private label merchandise is only possible for department store retailers D. gross margins are lower with private labels than with national brands

A. Fashion merchandise management system

Which of the following merchandise systems focuses on staying as close to out of stock as possible? A. Fashion merchandise management system B. Assortment driven management system C. Historical precedence management system D. Staple merchandise management system E. Allocated space management system

B. lowe's and target

Which of the following retailers would most likely be found in a power center? A. an independent store, women's apparel store and a shoe store B. lowe's and target C. liquor store, convenience store, and a laundromat D. a flower shop, independent shoe stores and a dry cleaner

B. if product availability is high (and thus the buffer stock is high), the retailer will increase inventory turnover (bc of slow moving excessive inventory)

Which of the following statements does NOT describe the relationship between product availability and stock level? A. the higher service level that a retailer tries to achieve, then the greater the amount of buffer stock to avoid stockout on a particular SKU B. if product availability is high, the retailer will increase inventory turnover C. The higher the product availability, the greater the amount of backup stock D. if the product availability sets too high, scare financial resources will be wasted on needless inventory that could be more profitably invested in more variety or assortment

D. SKU rationalization programs can help in increasing inventory turnover without reducing sales.

Which of the following statements does NOT describe the trade-offs that buyers should consider for merchandise assortment planning? A. Increasing sales by offering more breadth and depth can potentially reduce inventory turnover. B.Increasing sales by offering more breadth and depth can potentially reduce GMROI by having morestock-keeping units (SKUs). C.Increasing breadth and depth can increase the need to put more merchandise on sale and thusnegatively affect the gross margin. D. SKU rationalization programs can help in increasing inventory turnover without reducing sales.

A. professionals as customers during the weekday

Why would a retailer expand to a Central Business District? A. professionals as customers during the weekday B. ample parking C. low crime rate D. high foot traffic on weekends

Lead Time

____ is the amount of time between the recognition that na order needs to be places and the point at which the merchandise arrives in the store and is ready for sale.

Destination Store

____ stores are stores where consumers will go even if its inconvenient.

Cycle Stock

_____ is inventory for which the level goes up and down in response to the replenishment process.

Product Availability

______ is the percentage of demand for a particular SKU that Is satisfied.

Merchandise Management

______ is the process by which a retailer offers the correct quantity of the right merchandise in the right place at the right time and meets the company's financial goals.

Theme/Festival Center

_________(e)s can be defined as shopping centers that employ a unifying theme that is carried out by the individual shops in their architectural design and, to an extent, in their merchandise. They are typically designed to appeal to tourists.