Retailing
The maintenance of common facilities, security, advertising, and special events to attract consumers are handled by the shopping center management and are covered under ___________ costs.
Common area maintenance
________ involve any content or discussion of a retailer, created by others, and published on channels beyond what the retailer can control, such as a third-party site or page?
Earned media
Why would the customer pyramid be more appropriate in identifying a customer's lifetime value than utilizing the traditional 80-20 rule?
The 80-20 rule does not consider important differences among the 80% of customers in the "rest" segment
What is likely the most common technique of organizing stock?
by style or item
Which store layout is used primarily by supermarkets and full-line discount stores? free-form
grid
Which term represents a form of channel migration?
showrooming
A(n) ________ creates the customer's first impression of the store's offering and is the area where retailers place their most compelling merchandise.
strike zone
On his way home from work, Perez 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 gift for his niece. Conveniently enough, next door to that was a supermarket, where he purchased essentials like milk and cornflakes cereal. Perez was shopping in which type of shopping center?
strip shopping center
Calculate the return on investment for an advertisement from the given data. Net sales is $1,000, and advertising cost is $50.
19
When you buy something from Best Buy, the purchase information is recorded and electronically sent to the buyer at the corporate office, where it is incorporated into an inventory management system. This process begins with
A Point of Sale (POS) terminal
Retailers often find the 80-20 principle evident within the ABC analysis. What does the 80-20 principle imply?
Approximately 80% of a retailer's sales come from 20% of its products
What is classified as a competitive factor?
Barriers to entry, bargaining power of vendors, and competitive rivalry
Which media form is used to attract customers to a specific store location, are high priced, and require a long-term commitment?
Billboards
The Blackberry Cafe features light cuisine and folk entertainment. It is located in the middle of an upper-class neighborhood. The owners want to know where the customer base lives so that they can send direct mail to those areas. For the last several weeks, employees scoped the parking lot noting license plate numbers so they could have a private research company trace them to the owners. What is the Blackberry Cafe engaging in?
Customer spotting
Which statement is true of the benefits offered by Internet shopping?
Customers can get information that is useful across channels
Which statement is true about strategic planning in the real world?
Decisions and evaluations involve many interrelated steps.
What is typically the last step in the strategic retail planning process?
Evaluate performance and make adjustments.
Chloe is responsible for the strategic retail planning process in her organization. She has identified several strategic opportunities. What is Chloe's next step?
Evaluate the strategic opportunities.
Which retail channel has the ability to economically provide the most product information for the consumer purchasing products?
Internet
Which statement is true of vertical integration?
It is the diversification by retailers into manufacturing.
What is an advantage of the use of sophisticated distribution and information systems for retailers?
It offers an opportunity for the retailer to reduce operating costs.
Josleen owns a produce stand in an inner-city neighborhood. Recently, she has become quite popular in the neighborhood because she started giving her day-old produce to the local food pantry. What benefit does Josleen gain by donating produce to the food pantry?
It offers her strong public relations benefits.
Which statement is true of the challenges faced by organized retailing in China?
Managerial talent is becoming more difficult to find and retain.
Which statement on markdowns is false?
Markdowns are an unnecessary part of business if planned correctly.
What is the correct order of the levels of the merchandise classifications from the highest level to the lowest level?
Merchandise Group - Department - Classification - Category - SKU
What is the effect of putting a restaurant in a department store?
More restaurant patrons means more store traffic.
_____ Blank are developed such that the distance between two retailers' positions indicate how similar those stores appear, according to consumers.
Perceptual maps
__________ are shopping centers that consist primarily of collections of big-box retail stores, such as full-line discount stores, off-price stores, warehouse clubs, and category specialists
Power centers
________ is used to present products when retailers offer a limited number of predetermined price points within a product classification category.
Price lining
Which statement about references is accurate?
References are a goof way to verify information given on an application form
Why do store-based retailers or catalogers add Internet channels into their retail strategy?
Retailers like to improve their offerings and build a competitive advantage
_____ Blank occurs when a consumer goes into a store to learn about different brands and products and then searches the Internet for the same product sold at a lower price.
Showrooming
Why is constructing a data warehouse more difficult for in-store transactions than it is for online shopping?
Store purchases can be made with cash, third-party credit cards, or mobile apps
Which retail store is most likely to have a racetrack layout?
Ted's Department Store
Which statement is true of the ABC analysis?
The SKUs in a merchandise category are rank-ordered by several performance measures, such as sales, gross margin, inventory turnover, and GMROI.
What is a key advantage of direct investments?
The retailer has complete control of the operations.
Which factor causes reductions?
Theft and accounting errors
Which social media app allows users to create and share 15-second videos and was the most downloaded app in 2020?
TikTok
A retailer wants to announce up-to-date and fast-changing information to excite customers. Which platform will best suit the retailer's needs?
Which site is classified as a microblog?
Which statement describes the limitations of vendor-managed inventory that retailers may encounter?
When the vendor coordinates the supply chain for its specific products, it does not know what other actions the retailer is taking that might affect the sales of its products in the future.
________ refers to charging different prices for different stores, markets, or regions.
Zone pricing
When customers join the Daily Needs Reward Zone, they receive one point on every purchase they make at Daily Needs stores and DailyNeeds.com. Reward Zone points are converted to reward certificates which can be redeemed for merchandise at Daily Needs stores or on DailyNeeds.com. This strategy by Daily Needs is an example of
a customer loyalty program
What example would customers least likely consider a destination store?
a gas station also selling milk and eggs
A bike shop maintains a Facebook page for enthusiasts who like to share their photos and experiences. Group members are now organizing volunteers for the store's upcoming fundraising ride for a local charity. This is an example of
a retail community.
Retailers study traffic flow, street congestion, and parking space availability when considering a new store site to determine the potential site's _______.
accessibility
When creating a communication budget, ________ decisions are more important than the amount to spend on communications.
allocation
Mall of America in Minneapolis area has over 500 stores, restaurants, and entertainment venues. It hosts more than 400 events a year to draw people to the mall. It offers both high-prices and lower-priced shopping options. This would best be described as
an omnicenter
CRM programs directed toward customers in the high-value segment
are focused on maintaining loyalty
Which pricing practice employs tactics such as inadequate inventory for advertised products?
bait and switch
____________, also known as stocklifts or lift-outs, are activities engages in by vendors with retailers to get their products into retail stores
buybacks
As Gerard was waiting in line to pay for a bottle of aspirin at a pharmacy, he added a copy of Us Weekly, a Snickers bar, and a pack of cheese crackers to his purchases. The area where Gerard made his selections is most likely a(n)
cash wrap
Which type of retailer tends to have the largest trade area
category specialists
A typical application form would be least likely to provide information about the applicant's
character
Which company position is responsible for equity-debt structure an credit card operations?
chief financial officer
A ___________ is a group of items targeting the same customer type, such as women's petite sizes
classification
The marketing team at Excel University is studying data that show how students navigate its website. The team needs to find ways to improve the site and make it easier for students to find what they need. The data the team is studying is based on
click paths
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
co-op advertising.
Genji buys men's dress shirts for Hal's, a clothing retailer. At a recent trade show, he took the opportunity to see a few new vendors. During one meeting, a vendor proposed a ticket to a high-profile college football game. Genji graciously declined because he was concerned he would be engaging in
commercial bribery
Carmela enjoys viewing the website for her favorite clothing store because part of the space lets customers post pictures wearing their latest outfit from the store. These pictures give Carmela ideas of new ways to style her own clothing. Which of the 7Cs of digital retailing framework does this demonstrate?
community
Shanice was overwhelmed by the heavy traffic outside her local discount retailer. Her experience in the store was no better. The aisles were packed, and the lines were lone. To Shanice, this discounter didn't consider the problem of ____________ when choosing the site for the store
congestion
When pricing products, retailers must
consider the company's overall strategy when choosing a pricing policy.
Raney was not happy when she realized how much she had to pay for a pack of gum at the paper stand on her way to reach her departing flight from JFK. With security lines as long as they were, she knew she needed to hurry and pay the $3.75 for her pack of gum. Her purchase situation can best be described as ____________ shopping.
convenience
Retailers want the ________ rate to be high, because it means visitors to the website are doing what the retailer intended.
conversion
Walgreens sells an allergy medicine called Wal-Dryl. It is typically places on the shelves next to Benadryl and has the same ingredients but is less expensive. This is a(n)
copycat brand
For retailers, engaging visitors, encouraging them to spend time viewing and interacting with their website, and facilitating commerce all represent which element of the 7C digital retailing framework?
core goals
________________ is defined as the voluntary actions taken by a company to address the ethical, social, and environmental impacts of its business operations
corporate social responsibility
What is an example of unrelated diversification?
creating a new product line for specialists
Positioning is the process of
creating and supporting a clear and distinct retailer image.
Alice supervises the conveyor belts in a distribution center. Her job is to make sure the merchandise moves quickly from the receiving docks to the loading dock in order for the trucks to load and deliver. No merchandise is stored, as the vendors already prepared it specifically for the stores. Alice handles _________ at the distribution center.
cross-docking
which principle explains the success of a shopping center whose tenants include Kohl's, Walmart, and Dick's Sporting Goods?
cumulative attraction
What can be used to determine how many people are in a trade area and where they live?
customer spotting
When customers check out at Southern Style, a women's specialty clothing store, they are asked their zip code by the salesclerk. Later, the store's owner marks the location of each customer on a city map. By looking at where the pins clustered on the map, she could determine her trade area. The store owner was engaged in
customer spotting
Doreen entered the department store and went directly to the children's apparel department to find a baby gift. Therefore, the merchandise to be bought by Doreen in the children's department is referred to as ________ Blank merchandise.
destination
Mike made a purchase online of a Fender speaker system from a retailer. When the shipment of his purchase arrived at his home, he noticed that the product was shipped to him directly from Fender. The retailer and vendor are utilizing a system of
drop shipping
__________ is the computer-to-computer exchange of business documents from the retailer to the vendor, and vendor to retailer
electronic data interchange (EDI) system
Which element is least likely to be considered in the design of a store?
employee recruitment
The only retailer that offers Fresh Sun organic food products is Daily Needs. Therefore, Fresh Sun is an example of a(n)
exclusive brand
Once the buyer has collected enough information about the vendor to consider developing a longer-term relationship, they begin to work on joint promotional programs, and the amount of merchandise sold increases. Which phase of involvement in the vendor-retailer relationship is occuring?
expansion
the percentage of SKUs received complete on a particular order from a vendor is called the
fill rate
A(n) __________ is a small group of respondents interviewed by a moderator using a loosely structured format in which participants are encouraged to express their views and comment on the views of others in the group
focus group
Rangsey loves books and often shops at a local bookstore. At the beginning of the year, he enrolled in a program that cost him five dollars, and now he gets a percentage off of the purchases he makes throughout the year. Which term best demonstrates this type of approach toward customer retention?
frequent-shopper program
Companies are practicing __________ when marketing products or services as being environmentally friendly with the purpose of gaining public approval and sales rather than actually improving the environment
green sheen
A consumer products company marketed its cleaning products as organic and safe for the environment, when in reality the products contained chemicals that were not disclosed. This company was
greenwashing
When Rooney walked into the local convenience store, she saw it had parallel aisles with shelves on either side, making it easy to quickly find what she needed. This store featured a ________ layout.
grid
Which store design contains parallel aisles with merchandise on shelves on both sides of the aisles?
grid layout
When Madeline was shopping for a bridal gown, she was offered champagne by the store owner and her mother was escorted to a comfortable chair with music playing softly. This store offered
hedonic benefits.
A retailer allocates the budget to areas that will yield the greatest return. This approach for allocating a budget is referred to as the ________ principle.
high-assay
Developers will usually look for _________ to build lifestyle centers
higher-income neighborhoods
Sasha is planning on renovating her kitchen. When she went into a home improvement store, she admired the various model kitchens the store had set up. Each kitchen used a different style and color scheme and allowed Sasha to consider the possible themes she could use. Which merchandise presentation technique is the store utilizing?
idea-oriented presentation
____________ are imposed by governments to shield domestic manufacturers from foreign competition
import tariffs
Which statement is true about the Spending Potential Index?
it compares the local average expenditure by product to the national average amount spent
What is the major disadvantage of a straight salary plan?
it does not directly relate pay incentives to productivity
Which of these is the least likely factor that retailers consider in setting prices?
language barriers
Atlanta's Midtown neighborhood has a shopping area called Atlantic Station, which features specialty stores accessible from the street, a movie theatre, restaurants, and an outdoor concert area. What type of retail location is Atlantic Station?
lifestyle center
A racetrack layout is also called a ________ layout.
loop
Reductions in the initial retail prices are known as
markdowns
Which term best describes the type of data analysis that focuses on what products are purchased by a customer during a single shopping trip?
market basket analysis
Cross-selling is most commonly practiced with which growth opportunity?
market penetration
A Chef's Life is a store that sells specialty ingredients and high-end cooking equipment. After a situation analysis, the marketing team of A Chef's Life wants its current customers to visit and purchase from the store more frequently. Which growth strategies should A Chef's Life follow to achieve its objective?
market penetration growth opportunity
the highest classification level in a buying organization is the
merchandise group
Asako works for a national retailer determining what merchandise will be sent to stores in her assignment geograohical area of the country. What position in the organizational structure of a retailing firm does Asako have?
merchandise planner
Which platform offers the lowest shopping cart abandonment rate and, in turn, a higher conversion rate?
mobile apps
The ______________ is the number of each SKU in the assortment plan that the buyer wants to have available for purchase in each store.
model stock plan
what is the advantage of having your adjacent tenant as a complementary retailer?
more customer traffic
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?
multiple-unit pricing
The ________ method determines the budget required to undertake specific tasks to accomplish communication objectives.
objective-and-task
Which is not a method for devising an effective omnichannel strategy?
offering varying prices for each channel depending on which channel is most costly to manage
A retailer that sells product online through its website but does not accept that product to be returned to its store if the customer is not satisfied with it is not yet fulfilling a(n) __________ Blank strategy.
omnichannel
What term best describes using all of the retailer's shopping channels to create a seamless and synchronized customer experience?
omnichannel retailing
If a U.S. retailer wants to conform to the European policies concerning how customer information is collected, which type of policy should it adopt?
opt in
When consumers explicitly agree to share personal information, the agreement is referred to as
opt in
Kelly always goes to the Coach store to get deals on Coach purses. Right next door to the Coach store is a Vera Bradley store that sells discontinued patterns for reduced prices. And next to Vera Bradley is a Kate Spade store that has both discounted merchandise and some full-priced merchandise. Kelly has great taste but likes to save money, so she shops at a(n)
outlet center
A McDonald's restaurant in Bolingbrook, Illinois is located at the end of the Costco parking lot facing the street. It is clearly visible from both the parking lot and the street. This is a(n)
outparcel
For a retailer, its website, social media sites, and mobile apps are all types of ________ media.
owned
Which statement is true of a central business district
parking is inconvenient
The retailer's information system determines the ________ by comparing the sales made through the POS terminals with the shipments received by the store
perpetual inventory
The retailer's order is transmitted to the distribution system via computers. Then, the computer at the distribution center creates a _____, a document or display on a screen in the forklift truck that indicates how many cartons to get from specific storage areas.
pick ticket
In the customer pyramid, which segment consists of customers with the top 25% CLVs?
platinum
What is the result of high inventory turnover?
positive impacts on sales by attracting more customer visits, improving sales associate morale, and providing more resources to take advantage of new buying opportunities
Which company position is responsible for the selection and pricing of the merchandise assortment offered through the Internet, mobile, social, and catalog and other nonstore channels?
president of direct channels
A travel brochure shows that a couple can buy a round trip ticket to Orlando, a three-day pass to Disney World, car rental for four days, and hotel accommodations for 5 nights for $1,200 per person. These services are more expensive when bought individually. This offer is an example of
price bundling.
Which term is defined as the percentage of demand for a particular SKU that is satisfied?
product availability
Which point of conflict arises when vendors aren't concerned about where customers buy them as long as they buy their brands, and retailers aren't concerned about what brands customers buy as long as they buy them in their stores?
product vs. location
What is an example of extrinsic reward?
promotion
Bonnie wanted to buy a wreath for her home for Christmas. She found the wreaths at the back of the local department store with other holiday cards, candy, and decorations. This special section at the store is an example of a
promotional area.
In a ___________ supply chain, merchandise is allocated to stores on the basis of forecasted demand
push
Retailers with less sophisticated forecasting and information systems tend to use a(n) __________ supply chain
push
Which store design has a point-of-sale terminal in each department?
racetrack layout
Dana found the perfect jeans and they were on sale, but they were not available in her size. The store gave her a __________ so she could come back when the jeans were in stock and pay the sale price.
rain check
Which colors would be best suited to produce emotional, vibrant, hot, and active responses from customers?
red, gold, and yellow
urban customers typically place more importance on
reducing their shopping time
A ________ Blank is an opportunity in which a retailer develops a new retail mix for the same target market.
retail format development growth opportunity
Which statement describes an approach that is used to deal with unprofitable customers?
retailers charging a restocking fee for returned merchandise
Which analysis technique compares actual and planned sales to determine whether more merchandise is needed to satisfy demand or whether price reductions are required.
sell-through analysis
Nora's office consisted primarily of men. All worked well together and no one really even noticed the skewed ratio until one day when one of the men downloaded a lewd screensaver for all to see when they arrived in the office. Nina was infuriated. This situation can be considered
sexual harassment
What is an example of staple merchandise?
something that is in demand over an extended time period
The merchandise budget plan
specifies the amount of merchandise in dollars (not units) that needs to be delivered during each month, based on the sales forecast, the planned discounts to employees and customers, and the level of inventory needed to support the sales and achieve the desired GMROI objectives
Smart Wash is a brand of detergent powder. The stock needs to be continuously replenished in stores and supermarkets due to its high demand. The detergent powder belongs to the category of __________ merchandise.
staple
Anton is very particular about the clothes he buys. He doesn't like fabric that makes his skin itch and he has a hard time getting clothes to fit him. What benefit would shopping in a store give Anton over other retail channels?
the ability to touch the fabrics and try on the clothes
In the digital retailing marketspace, analyzing how consumers move through the purchase process is referred to as
the e-commerce purchase funnel
The trade-off between ease of finding merchandise and providing a varied and interesting layout is determined by
the needs of the customers shopping at the store.
Horace owns a small convenience store in a low-income neighborhood. He restocks his shelves every Thursday to prepare for his usual rush on Friday afternoons. What is Horace most likely experiencing?
the paycheck cycle
Which statement about sales promotions is true?
they help build customer loyalty
Which statement is true of laws relate to compensation
they require that firms pay men and women the same for equal work
Customers shopping in a scented store
think they have spent less time in shopping.
____________ leaders delegate challenging work to subordinates, have free and open communication with them, and provide personal mentoring to develop subordinates
transformational
Multichannel and omnichannel retailers struggle to provide an integrated shopping experience, because
various channels demand various skills and unique resources
____________ is an approach for improving supply chain efficiency in which the vendor is responsible for maintaining the retailer's inventory levels in each of its stores
vendor-managed inventory (VMI)
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
vertical integration.
A _____________ for retail buyers is a concentration of vendors within a specific geographic location, perhaps even under one roof or over the Internet
wholesale market
Local governments in the United States are __________ to regulate land uses in specific areas to prevent any interface with existing uses by residents or businesses, as well as encourage the preservation of a community's sense of identity
zoning
