15

4. For a retail employee, which of the following is an intrinsic reward?

Feeling good after helping a customer who really needed it

B. $3.60

If a retailer can sell an item for $6 and needs a 40% markup on selling price to meet profit objectives, that retailer should pay no more than _______ for the item. A. $4.00 B. $3.60 C. $1.80 D. $2.40 E. $4.10

All other things being equal, the best area for locating a store is ______.

The area that will generate the greatest long-term profit

6b. In a national department store chain such as Neiman Marcus or Macy's, __________ supervise district managers, who in turn supervise __________.

regional managers; store managers

C. quantity discount

"Multi-unit pricing" means the same thing as __________. A. first-degree price discrimination B. price lining C. quantity discount D. price bundling E. third-degree price discrimination

Regarding a Metropolitan Statistical Area (MSA), which of the following is true?

--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. --The Lexington-Fayette MSA consists of six counties: Bourbon, Clark, Fayette, Jessamine, Scott, and Woodford. --It may make sense for a retailer to locate several stores in one MSA and none in some others. *ALL OF THE ABOVE*

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.

10-15

3. Arlo Marlowe owns an independent hardware and home-improvement store in a neighborhood shopping center. At the beginning of this year, the following sales associates were on Arlo's payroll: Blake Drake, Eric Merrick, Clyde Hyde, Yuri Curry, and Caylie Bailey. A few months into the year, Eric and Caylie both left to pursue new opportunities, and Arlo hired Joyce Royce and Martin Parton to replace them. A few months after that, Martin left to return to college full time and was replaced by Hollis Lawless. Shortly thereafter, Clyde retired and was replaced by Zach Slack. What is the employee turnover rate at Arlo's store, if no more employees leave between now and December 31?

80%

A. merchandise classification

A __________ is a group of items targeting the same customer type. A few examples might be men's big and tall sizes, gluten-free food items, or girls' sizes 4 to 6. [This question has been randomly selected from a pool of 2 questions. For optimal success in this class, repeat this chapter's questions until you are sure you are acquainted with all of the alternate versions of each question.] A. merchandise classification B. merchandise category C. department D. merchandise group E. stock-keeping unit (SKU)

7. Which of the following statements is true regarding a typical national retail chain, such as the one whose organization chart is presented in Exhibit 15-8?

A buyer's boss is a divisional merchandise manager (DMM); divisional merchandise managers report to general merchandise managers (GMMs), who report to the executive vice president of merchandising.

E. assortment plan

A(n) __________ identifies the set of SKUs (within a category) that a retailer will offer in each of its stores. A. merchandise menu B. sell-through analysis C. merchandise budget plan D. variety vector E. assortment plan

D. merchandise category

A(n) __________ is an assortment of items that customers see as substitutes for one another. A few examples might be men's outerwear, soft drinks, fashion footwear, salty snacks, kitchen gadgets, floor coverings, and swim apparel. [This question has been randomly selected from a pool of 2 questions. For optimal success in this class, repeat this chapter's questions until you are sure you are acquainted with all of the alternate versions of each question.] A. merchandise classification B. department C. stock-keeping unit (SKU) D. merchandise category E. merchandise group

E. reduces advertising and operating expenses

According to the authors of your textbook, one of the advantages of the EDLP pricing strategy is that it __________. [This question has been randomly selected from a pool of 4 questions. For optimal success in this class, repeat this chapter's questions until you are sure you are acquainted with all of the alternate versions of each question.] A. helps sell otherwise slow-moving merchandise B. increases a retailer's bargaining power with vendors C. creates excitement D. increases profits E. reduces advertising and operating expenses

A. reduces stockouts

According to the authors of your textbook, one of the advantages of the EDLP pricing strategy is that it __________. [This question has been randomly selected from a pool of 4 questions. For optimal success in this class, repeat this chapter's questions until you are sure you are acquainted with all of the alternate versions of each question.] A. reduces stockouts B. increases a retailer's bargaining power with vendors C. creates excitement D. helps sell otherwise slow-moving merchandise E. increases profits

2c. Employers sometimes test job candidates to learn more about them, to match them with job openings, and to develop training programs. Regarding tests, which of the following statements is not consistent with the information in the textbook?

An employer is allowed to test for drugs, but only if the applicant will be driving a company vehicle or operating dangerous machinery.

A. a loss leader

An item that is sold by a retailer for a price that is less than the retailer's cost is __________. A. a loss leader B. price lined C. the most common form of shrinkage D. a violation of the Robinson-Patman Act E. "bait" merchandise (in bait-and-switch pricing)

D. Provide markdown money.

As a vendor, Allie McNally works very well with Nordstrom's women's advanced modern sportswear buyer, Mollie Holley. The working relationship has been mutually satisfactory for several years. This past year, Allie's line of sportswear has included a few SKUs that sold poorly. It's now time to show Nordstrom (i.e., Mollie) the next season's product line. Allie expects that this time, Mollie will be a tougher negotiator than before. What should Allie be prepared to do? A. Remind Mollie that retailing is not an exact science; the best you can hope for is to win more often than you lose. B. Provide Mollie with a three-day trip to the Cayman Islands. C. Advise Mollie that Nordstrom can sell the products at lower prices, and reassure her that she will not be making a similar suggestion to Nordstrom's competitors - especially not Neiman Marcus or Bloomingdale's. D. Provide markdown money. E. Suggest pulling her product line out of Nordstrom for one season, in order to strategize and reinvent.

To minimize conflict among franchisees, most franchise agreements grant franchisees an exclusive territory. This can be one of the benefits of a franchise, namely the avoidance of _______.

Cannibbalization

D. category captain

Carrefour asked a vendor, Colgate, to help it better understand how consumers shop for oral care products, and to help maximize sales of all oral care products that Carrefour carries, regardless of brand. Colgate dug into its own past research into consumer behavior and made several well-informed recommendations, including the suggestion that Carrefour display toothbrush products directly above toothpaste products, instead of side by side as it had been doing for years. Carrefour followed Colgate's advice. Thereafter, sales of oral care products in Carrefour stores increased by 6 to 16 percent, depending on location. Colgate's sales increased as well. By asking Colgate to serve in this advisory capacity, Carrefour gave the company preference over other oral care product vendors such as Unilever, Procter & Gamble, GlaxoSmithKline, and Church & Dwight. The authors of your textbook would say that in this example, Colgate is Carrefour's __________ for oral care products. A. display deacon B. assortment adviser C. market maven D. category captain E. brand benchmark

5c. In the organization structure of a national retailer such as Meijer or Nordstrom, which of the following positions or job titles is not likely to exist?

Chief Manufacturing Officer (CMO)

E. manuracturer's; private-label; house

Coca-Cola, Planters, and Purina One are _____________ brands. Big K (sold by Kroger), Archer Farms (sold by Target), and Ol' Roy (sold by Walmart) are ____________ brands, also sometimes called ___________ brands. [This question has been randomly selected from a pool of 15 questions. For optimal success in this class, repeat this chapter's questions until you are sure you are acquainted with all of the alternate versions of each question.] A. house; national; private-label B. private-label; gray-market; generic C. step-down; generic; gray-market D. generic; knockoff; national E. manuracturer's; private-label; house

A. national; private-label; house

Coca-Cola, Planters, and Purina One are _____________ brands. Big K (sold by Kroger), Archer Farms (sold by Target), and Ol' Roy (sold by Walmart) are ____________ brands, also sometimes called ___________ brands. [This question has been randomly selected from a pool of 15 questions. For optimal success in this class, repeat this chapter's questions until you are sure you are acquainted with all of the alternate versions of each question.] A. national; private-label; house B. house; national; private-label C. private-label; gray-market; generic D. step-down; generic; gray-market E. generic; knockoff; national

9. The _________ Act of _____ set minimum wages, maximum hours, child labor standards, and overtime-pay provisions.

Fair Labor Standards; 1938

D. gray-market merchandise

Even though they do not have authorization from manufacturers, distributors will sometimes divert products from low-price markets to sell them in high-price markets. For example, a consumer in the U.S. who is shopping for a new Japanese-built Yamaha grand piano may find one for $27,500 and another very similar one for $14,000. The difference is that the $27,500 Yamaha piano was built for the U.S. market; the $14,000 Yamaha piano was built for the southeast Asia market and was intended to be sold at a list price of $8,500 in that market. Through unauthorized redirection into the U.S., some distributor (which has not been authorized by the Yamaha Corporation) makes additional money, even though the consumer pays less. (The consumer may actually be ripped off, though, because the wooden parts of the piano have been carefully selected and treated for optimal performance in the humidity of southeast Asia; those parts may crack or wear out prematurely from becoming excessively dry in some areas of the U.S.) This scenario is an example of __________. A. black-market merchandise B. counterfeit merchandise C. chumping D. gray-market merchandise E. dumping

E. buyer; ROA

Gross margin return on investment (GMROI) is a metric used by retailers to determine a(n) __________'s contribution to __________. A. SKU; net profit B. department; inventory turnover C. category; cost of returned merchandise D. single store; total chain-wide revenue E. buyer; ROA

A. 166.67 percent

Hugh Pugh works for a supermarket chain as a buyer. The following figures are relevant to the performance of Hugh's merchandise during the past year. Net sales: $2,400,000 Gross margin: $480,000 Average inventory: $288,000 Cost of goods sold: $1,920,000 Hugh's merchandise has generated gross margin return on investment (GMROI) of __________. A. 166.67 percent B. 20 percent C. This figure cannot be calculated using the information that is given. D. 6.67 E. 8.33

C. price elasticity

If you divide "percentage change in quantity sold" by "percentage change in price," you are calculating __________. A. competitive response B. just-noticeable difference (JND) C. price elasticity D. initial markup percentage E. break-even quantity

D. dynamic; individualized

If you make an airline reservation for a flight to, say, Miami, you're likely to be charged a higher price two weeks from now than if you make the reservation today. The rate that you pay for your hotel stay in South Beach might also differ based on the day and time that you book your reservation. Not only that, but your rate may be different from what a government employee, a member of AAA, or a member of AARP would be charged. The process of charging different prices for goods or services based on the type of customer, the time of the day, the day of the week, the season of the year, or level of demand is called __________ or __________ pricing. A. erratic; unpredictable B. variegated; supply-driven C. vendor managed; demand-driven D. dynamic; individualized E. peak; off-peak

A. zone pricing

In an October 1, 2018 article in the Courier-Journal, reporter Bailey Loosemore mentioned that prices are typically higher at a Kroger in Prospect (where Kroger has no competition) than at a Kroger on Buechel Bypass in Bashford Manor (where Kroger is located near a Walmart, a Target, and a Costco store). In the same article, we read that grocery prices at a Walmart near E.P. Tom Sawyer State Park (where Meijer, Target, and Kroger are also located) are typically lower than at the New Albany location (where competitors are fewer and not as close by). From this information, we can determine that Kroger and Walmart practice __________. A. zone pricing B. leader pricing C. horizontal price-fixing D. price lining E. predatory pricing

A. Merchandise Group > Department > Classification > Category > SKU

In the typical system for grouping merchandise within a retailer's buying organization, which of the following correctly describes the levels of merchandise, from highest to lowest? Or, said differently, from the broadest to the most specific? A. Merchandise Group > Department > Classification > Category > SKU B. Department > Merchandise Group > Classification > Category > SKU C. Classification > Department > Category > Merchandise Group > SKU D. Merchandise Group > Classification > Department > Category > SKU E. Category > Classification > Merchandise Group > Department > SKU

2a. Employers sometimes test job candidates to learn more about them, to match them with job openings, and to develop training programs. Regarding tests, which of the following statements is not consistent with the information in the textbook?

Intelligence tests are prohibited by law. Period.

E. price lining

Joseph A. Bank offers its "Executive Collection" of men's suits in a wide variety of patterns and colors at a price of $598 each. A shopper at a Jos. A. Bank store or at josabank.com can also choose from a variety of higher-technology (cooler in hot weather) "1905" suits at $698 each, as well as from a few "Signature" suits (with a higher grade of wool and higher-quality lining) at $798 each and "Signature Gold" suits (made of higher-quality materials yet) at $998 each. For the man who wants a suit that is crafted in the USA out of fine Italian wool, the "Reserve" suit is available in a few colors for a price of $1,298. Joseph A. Bank's approach to pricing is best described as __________. A. bait pricing B. price bundling C. variable pricing D. two-part pricing E. price lining

D. approximately 25

Kent Dent and his partner "Scratch" Hatch own Scratch & Dent Appliance. Last summer, Kent and Scratch bought a truckload of Frigidaire refrigerators that had minor cosmetic defects. They paid $1,100 each for the machines, which they displayed in the store with a retail price of $1,569.99. Three months later, none of the machines had sold, so Kent and Scratch reduced the price to $1,466.99. Within a month, all of the machines had sold. The maintained markup on this truckload of merchandise was ___ percent. [This question has been randomly selected from a pool of 3 questions. For optimal success in this class, repeat this chapter's questions until you are sure you are acquainted with all of the alternate versions of each question.] A. approximately 33.5 B. approximately 43 C. approximately 30 D. approximately 25 E. This figure cannot be calculated using the information that is given.

C. diverted

Last week, Jolene Moline went shopping for bargain-priced clothing and shoes at Overstock.com. Jolene was thrilled to find a pair of Alfani boots (in her size!) for $51.99. As Jolene was finalizing her order, she said to herself, "I don't think I've seen this brand anywhere but Macy's before." Indeed, Jolene is correct. Alfani is one of Macy's private-label brands. The authors of your textbook would describe Jolene's new boots as __________ merchandise. A. counterfeit B. generic-branded C. diverted D. gray-market E. copycat

A. tying agreement

Levi Strauss, a national manufacturer of apparel, will supply JCPenney with its most-popular styles of jeans only if JCPenney also carries other, lesser-known Levi's products, as well as the Dockers line of apparel and accessories. Levi Strauss is enforcing a(n) __________ in its relationship with JCPenney. A. tying agreement B. dual-distribution agreement C. one-way exclusive dealing agreement D. implied warranty E. two-way exclusive dealing agreement

E. high/low

Matt Flatt buys most of his business attire and some of his casual attire at Joseph A. Bank. Matt thinks Jos. A. Bank's regular pricing is "a bit on the high side," but the clothes are well made and he likes the way they look and feel. Matt has learned to watch for sales at Jos. A. Bank's stores, as well as at the company's online store. A couple of months ago, during a two-day sale, he was able to buy an "Executive" suit for $199, instead of paying the regular price of $598. A month later, during a dress shirt sale, he ordered two "Reserve Collection" wrinkle-free dress shirts at the Jos. A. Bank website. The shirts were priced at two for $89 instead of the regular price of $109.50 each. Not too long thereafter, Matt took advantage of another sale and bought three "Traveler" sportshirts for $39 each (they're normally $89.50 each). The following month, during a four-day sale, he bought a "Traveler" suit for $279 instead of paying the regular price of $798. As an experienced Jos. A. Bank shopper, Matt knows he can expect several more sales this year, and he plans to add something relevant to his work wardrobe each time a sale happens. In this scenario, Matt is benefiting from Jos. A. Bank's __________ pricing strategy. A. odd B. dynamic C. prestige D. EDLP E. high/low

E. staple merchandise

Merchandise like men's crew socks, frozen peas, college-ruled loose-leaf notebook paper, and 60-watt light bulbs would be considered __________. A. complementary merchandise B. impulse merchandise C. fashion merchandise D. seasonal merchandise E. staple merchandise

By recent estimates, the Lexington-Fayette __________ has a population of 516,464, with 321,959 of those individuals residing within Lexington itself. By similar estimates, the Paducah KY-IL __________ is populated by 99,261, of whom 24,941 live within the community of Paducah itself.

Metropolitan Statistical Area (MSA); Micropolitan Statistical Area (MiSA)

B. ABC analysis

Minnie Small-Frye is a buyer for a chain of toddlers' and children's' apparel stores. This week, Minnie is working through adjustments to the chain's assortment plan for its winter clothing offerings. In order to decide which SKUs should continue to be in the plan - as well as to determine backup stock requirements and merchandise availability - Minnie is analyzing each SKU based on its sales, contribution to gross margin, and GMROI. Next, she'll classify the SKUs into four groups. The first group will consist of a small group of SKUs that account for a disproportionately-large share of the retailer's sales. Minnie will make a point of maintaining ample backup stock of these items, in order to ensure that the stores do not run out of them at any time during the winter season. The next group will consist of SKUs that sell pretty well, but account for a lesser share of the retailer's sales than the first group. Minnie will not give these SKUs as high a priority as the first group; in fact, she doesn't view the prospect of running out of them for a day or two as particularly tragic. Minnie's third group will consist of SKUs that account for a small percentage of sales, maybe ten or fifteen percent. Minnie will order only the most popular sizes of these items, and will expect store managers to place special orders for other sizes when customers occasionally request them. The fourth and final group will consist of SKUs that never sell until they're marked down. Yes, that's right - as good as Minnie is at her job, she still picks some losers from time to time. That's the nature of retailing. Minnie will eliminate most SKUs in the fourth group from the assortment plan. The procedure that Minnie is following is called __________. A. multiattribute vendor analysis B. ABC analysis C. elasticity analysis D. sell-through analysis E. category mapping

10. The _________ provides guidance to retailers on how to control crowds on Black Friday.

Occupational Safety and Health Administration (OSHA)

2b. Employers sometimes test job candidates to learn more about them, to match them with job openings, and to develop training programs. Regarding tests, which of the following statements is not consistentwith the information in the textbook?

Personality tests are prohibited by law. Period.

E. A concentrated area where vendors are permanently located; here, they show new merchandise during certain times of the year.

Polly-Esther Cotton is a buyer for a national women's wear chain. Yesterday, Polly-Esther told her significant other that she is "going to market" and she will be away for a week and a half. In this context, what does "market" mean? A. Anywhere the retailer's customers are located - Polly-Esther will be conducting focus groups and/or depth interviews with as many of them as possible. B. All of the retailers locations - Polly-Esther will be checking in on each one of them, in person. C. A shopping center where the retailer is opening a new store. C. The geographic area where the highest concentration of the retailer's customers are located. E. A concentrated area where vendors are permanently located; here, they show new merchandise during certain times of the year.

5d. In the organization structure of a national retailer such as Macy's or Nordstrom, which of the following positions or job titles is not likely to exist?

Process Engineer

5a. In the organization structure of a national retailer such as Macy's or Nordstrom, which of the following positions or job titles is not likely to exist?

Production Manager

D. outsourcing

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

D. All of the above.

Regarding "push supply chains" and "pull supply chains," which of the following statements is consistent with information in your textbook? [This question has been randomly selected from a pool of 5 questions. For optimal success in this class, repeat this chapter's questions until you are sure you are acquainted with all of the alternate versions of each question.] A. In a pull supply chain, a store is less likely to be overstocked or out of stock. B. In a push supply chain, merchandise begins moving through the chain because of a forecast-driven decision to ship it at a particular time. C. A pull approach does not work well when order commitments must be made months in advance, as is often the case in fashion retailing. D. All of the above. E. Both A and B.

E. Both A and B.

Regarding "push supply chains" and "pull supply chains," which of the following statements is consistent with information in your textbook? [This question has been randomly selected from a pool of 5 questions. For optimal success in this class, repeat this chapter's questions until you are sure you are acquainted with all of the alternate versions of each question.] 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. All of the above.

Regarding "push supply chains" and "pull supply chains," which of the following statements is consistent with information in your textbook? [This question has been randomly selected from a pool of 5 questions. For optimal success in this class, repeat this chapter's questions until you are sure you are acquainted with all of the alternate versions of each question.] A. In a pull supply chain, merchandise begins moving through the chain because it has been requested by the retailer. B. In a push supply chain, merchandise begins moving through the chain because of a forecast-driven decision to ship it at a particular time. C. A pull system requires a more costly and sophisticated information infrastructure than a push system. D. All of the above. E. Both A and B.

C. A pull approach does not work well when order commitments must be made months in advance, as is often the case in fashion retailing.

Regarding "push supply chains" and "pull supply chains," which of the following statements is consistent with information in your textbook? [This question has been randomly selected from a pool of 5 questions. For optimal success in this class, repeat this chapter's questions until you are sure you are acquainted with all of the alternate versions of each question.] A. In a pull supply chain, merchandise begins moving through the chain because of a forecast-driven decision to ship it at a particular time. B. In a push supply chain, merchandise begins moving through the chain because it has been requested by the retailer. C. A pull approach does not work well when order commitments must be made months in advance, as is often the case in fashion retailing. D. All of the above. E. Both A and B.

E. Both A and C.

Regarding RFID, with which of the following statements would the authors of your textbook likely agree? [This question has been randomly selected from a pool of 3 questions. For optimal success in this class, repeat this chapter's questions until you are sure you are acquainted with all of the alternate versions of each question.] A. RFID technology enables accurate real-time tracking of a product all the way from the factory to checkout in the store. B. The initials "RFID" stand for "refined form of identification and detection." C. Using RFID on individual items can reduce theft. D. All of the above. E. Both A and C.

E. Both A and B.

Regarding RFID, with which of the following statements would the authors of your textbook likely agree? [This question has been randomly selected from a pool of 3 questions. For optimal success in this class, repeat this chapter's questions until you are sure you are acquainted with all of the alternate versions of each question.] A. RFID technology is costly to implement. B. An RFID chip can hold more data than a UPC bar code. C. The initials "RFID" stand for "rejected for insufficient documentation." D. All of the above. E. Both A and B.

D. All of the above.

Regarding RFID, with which of the following statements would the authors of your textbook likely agree? [This question has been randomly selected from a pool of 3 questions. For optimal success in this class, repeat this chapter's questions until you are sure you are acquainted with all of the alternate versions of each question.] 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.

A. Cross-docked merchandise usually spends only a few hours in the DC, at most.

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? [This question has been randomly selected from a pool of 5 questions. For optimal success in this class, repeat this chapter's questions until you are sure you are acquainted with all of the alternate versions of each question.] A. Cross-docked merchandise usually spends only a few hours in the DC, at most. B. Distribution center (DC) and a data warehouse are two different names for the same facility. C. Direct store delivery (DSD) is rarely - if ever - preferable to having merchandise delivered to the DC. D. In the present-day retail industry, every retailer has a DC - even those that have only one or two stores. E. A DC is a good place to store merchandise for long periods of time. It is not a good place for ticketing, marking, attaching RFID tags, or placing garments on hangers.

D. A DC enables a retailer to carry less merchandise at individual stores.

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? [This question has been randomly selected from a pool of 5 questions. For optimal success in this class, repeat this chapter's questions until you are sure you are acquainted with all of the alternate versions of each question.] A. 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. B. In the present-day retail industry, every retailer has a DC - even those that have only one or two stores. C. Direct store delivery (DSD) is rarely - if ever - preferable to having merchandise delivered to the DC. D. A DC enables a retailer to carry less merchandise at individual stores. E. Distribution center (DC) and fulfillment center (FC) are two different names for the same facility.

C. A DC makes it easier for a store to avoid a stockout.

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? [This question has been randomly selected from a pool of 5 questions. For optimal success in this class, repeat this chapter's questions until you are sure you are acquainted with all of the alternate versions of each question.] 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.

B. Most distribution centers run 50 to 100 outbound truck routes in one day.

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? [This question has been randomly selected from a pool of 5 questions. For optimal success in this class, repeat this chapter's questions until you are sure you are acquainted with all of the alternate versions of each question.] A. Distribution center (DC) and fulfillment center (FC) are two different names for the same facility. B. Most distribution centers run 50 to 100 outbound truck routes in one day. C. Cross-docking refers to an alternative maneuver that can be used by truck drivers who aren't skilled at backing a trailer into a narrow loading or unloading dock. D. Direct store delivery (DSD) is rarely - if ever - preferable to having merchandise delivered to the DC. E. A DC is a good place to store merchandise for long periods of time. It is not a good place for ticketing, marking, attaching RFID tags, or placing garments on hangers.

E. DCs enable retailers to make more accurate sales forecasts.

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? [This question has been randomly selected from a pool of 5 questions. For optimal success in this class, repeat this chapter's questions until you are sure you are acquainted with all of the alternate versions of each question.] A. In the present-day retail industry, every retailer has a DC - even those that have only one or two stores. B. Direct store delivery (DSD) is rarely - if ever - preferable to having merchandise delivered to the DC. C. Cross-docking refers to an alternative maneuver that can be used by truck drivers who aren't skilled at backing a trailer into a narrow loading or unloading dock. D. Distribution center (DC) and fulfillment center (FC) are two different names for the same facility. E. DCs enable retailers to make more accurate sales forecasts.

E. Reverse auctions are more popular with vendors than with retailers.

Regarding reverse auctions, which of the following is not consistent with what the authors of the textbook say? [This question has been randomly selected from a pool of 4 questions. For optimal success in this class, repeat this chapter's questions until you are sure you are acquainted with all of the alternate versions of each question.] A. In a reverse auction, retailers provide a group of vendors with a specification for what they want. B. A reverse auction is a way for retailers to get quality private-label merchandise at reasonable cost. C. Reverse auctions are commonly used by retailers to source seasonal products. D. In a reverse auction, there is one buyer - the retailer - and many potential sellers (the manufacturing firms). E. Reverse auctions are more popular with vendors than with retailers.

E. Retailers use reverse auctions only to procure merchandise for resale. They never use them to buy store fixtures or furnishings, such as carpet, shelving, or lighting.

Regarding reverse auctions, which of the following is not consistent with what the authors of the textbook say? [This question has been randomly selected from a pool of 4 questions. For optimal success in this class, repeat this chapter's questions until you are sure you are acquainted with all of the alternate versions of each question.] A. In a reverse auction, retailers provide a group of vendors with a specification for what they want. B. In a reverse auction, there is one buyer - the retailer - and many potential sellers (the manufacturing firms). C. A reverse auction is a way for retailers to get quality private-label merchandise at reasonable cost. D. Reverse auctions are commonly used by retailers to source seasonal products. E. Retailers use reverse auctions only to procure merchandise for resale. They never use them to buy store fixtures or furnishings, such as carpet, shelving, or lighting.

B. Vendors of products with low brand loyalty pay the highest slotting fees.

Regarding slotting fees, which of the following statements is consistent with the information in your textbook? [This question has been randomly selected from a pool of 2 questions. For optimal success in this class, repeat this chapter's questions until you are sure you are acquainted with all of the alternate versions of each question.] A. A "slotting fee" is a surcharge that television and radio stations charge advertisers when they broadcast cooperative advertising. B. Vendors of products with low brand loyalty pay the highest slotting fees. C. "Slotting fee" refers to the "rent" that vendors pay for booth space at a trade show. D. A slotting fee usually is billed to a vendor once every quarter for as long as a retailer carries the vendor's product. E. A "slotting fee" is a fee that some retailers charge customers who return an item. It typically amounts to 15 percent of the purchase price.

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.

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. copycat

Scooter Tudor woke up with a cold this morning. As he struggled with his symptoms throughout the day, he became aware that he was probably going to get worse before he starts getting better. On the way home from the university, Scooter stops at Walgreens to buy Zyrtec. On the shelf, next to the green Zyrtec packages, Scooter notices similarly-colored packages of Wal-Zyr "all day allergy tablets" with the red Walgreens logo in small print. When Scooter examines both the Zyrtec package and the Wal-Zyr package, he sees that both medications have the same active ingredient: 10 mg Ceterizine Hydrochloride. Scooter sees that he can buy almost twice as many Wal-Zyr pills as he can Zyrtec pills for the same price. The authors of your textbook would classify Wal-Zyr as a(n) __________ brand. [This question has been randomly selected from a pool of 2 questions. For optimal success in this class, repeat this chapter's questions until you are sure you are acquainted with all of the alternate versions of each question.] A. exclusive B. premium C. manufacturer's D. generic E. copycat

5b. In the organization structure of a national retailer such as Home Depot or Macy's, which of the following positions or job titles is not likely to exist?

Senior Plant Manager

E. $1,232.99

Shirley Turley owns Ballistic Bazaar, a gun shop and shooting range. Ballistic Bazaar pays $822 for a Sig Sauer 1911 Carry Scorpion. To set her retail price for the SKU, Shirley applies an initial markup that is 33.33% of her selling price. Then, to implement odd pricing, she rounds the price upward to the nearest 99 cents. The retail price of this particular SKU will be _____. A. $1,199.99 B. $2,045.99 C. This figure cannot be calculated using the information that is given. D. $1,018.99 E. $1,232.99

D. $150

Sondra Alondra owns Gothic Ghoullery, a specialty apparel and accessories store. For most of the merchandise she sells, Sondra sets the price by "keystoning." This means that if Sondra buys a pair of chrome-studded black multi-buckle knee-high platform boots for $75, she'll set the retail price at ____. [This question has been randomly selected from a pool of 3 questions. For optimal success in this class, repeat this chapter's questions until you are sure you are acquainted with all of the alternate versions of each question.] A. $100 B. This figure cannot be determined without price optimization software. C. $125 D. $150 E. $175

E. 50%

Sondra Alondra owns Gothic Ghoullery, a specialty apparel and accessories store. For most of the merchandise she sells, Sondra sets the price by "keystoning." This means that if Sondra sells a pair of chrome-studded black multi-buckle knee-high platform boots for $150, the markup (as a percent of retail price) must be ____ . [This question has been randomly selected from a pool of 3 questions. For optimal success in this class, repeat this chapter's questions until you are sure you are acquainted with all of the alternate versions of each question.] A. This figure cannot be determined without price optimization software. B. 100% C. 150% D. 75% E. 50%

E. $75

Sondra Alondra owns Gothic Ghoullery, a specialty apparel and accessories store. For most of the merchandise she sells, Sondra sets the price by "keystoning." This means that if Sondra sells a pair of chrome-studded black multi-buckle knee-high platform boots for $150, the markup must be _____. [This question has been randomly selected from a pool of 3 questions. For optimal success in this class, repeat this chapter's questions until you are sure you are acquainted with all of the alternate versions of each question.] A. $100 B. $150 C. $50 D. This figure cannot be determined without price optimization software. E. $75

B. radio frequency identification

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

D. supply chain management

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. logistics B. direct store delivery (DSD) C. vendor-managed inventory (VMI) D. supply chain management E. electronic data interchange (EDI)

C. tailored assortments

The authors of your textbook state that efficient supply chain management provides two principal benefits to retailers and their customers. Those benefits are fewer stockouts and __________. A. value-added point-of-sale promotion B. Increased certainty of products' country of origin C. tailored assortments D. more precise targeting of customers in the retailer's secondary trading area E. larger delivery quantities

C. allocate merchandise to stores

The fifth step in merchandise management planning is to __________. [This question has been randomly selected from a pool of 5 questions. For optimal success in this class, repeat this chapter's questions until you are sure you are acquainted with all of the alternate versions of each question.] A. set inventory and product availability levels B. buy merchandise C. allocate merchandise to stores D. establish a control system for managing inventory E. develop an assortment plan

B. forecast category sales

The first step in merchandise management planning is to __________. [This question has been randomly selected from a pool of 5 questions. For optimal success in this class, repeat this chapter's questions until you are sure you are acquainted with all of the alternate versions of each question.] A. allocate merchandise to stores B. forecast category sales C. develop an assortment plan D. set inventory and product availability levels E. configure a model stock plan

A. establish a control system for managing inventory

The fourth step in merchandise management planning is to __________. [This question has been randomly selected from a pool of 5 questions. For optimal success in this class, repeat this chapter's questions until you are sure you are acquainted with all of the alternate versions of each question.] A. establish a control system for managing inventory B. set inventory and product availability levels C. develop an assortment plan D. allocate merchandise to stores E. buy merchandise

A. record how much of the merchandise budget has been spent at any given time, and keep track of how much remains available to spend

The purpose of an open-to-buy system is to __________. A. record how much of the merchandise budget has been spent at any given time, and keep track of how much remains available to spend B. avoid seasonal buying C. develop long-term sales forecasts D. decrease operating expenses E. maintain consistent average inventory

A. develop an assortment plan

The second step in merchandise management planning is to __________. [This question has been randomly selected from a pool of 5 questions. For optimal success in this class, repeat this chapter's questions until you are sure you are acquainted with all of the alternate versions of each question.] A. develop an assortment plan B. set inventory and product availability levels C. forecast category sales D. allocate merchandise to stores E. configure a model stock plan

D. set inventory and product availability levels

The third step in merchandise management planning is to __________. [This question has been randomly selected from a pool of 5 questions. For optimal success in this class, repeat this chapter's questions until you are sure you are acquainted with all of the alternate versions of each question.] A. allocate merchandise to stores B. forecast category sales C. develop an assortment plan D. set inventory and product availability levels E. configure a model stock plan

B. Robinson-Patman Act (1936)

Under federal law, a vendor cannot charge different prices on "goods of like grade and quality." Exceptions are allowed in the case of a retailer that is performing functions that lower the vendor's cost of doing businesses with that retailer. For example, a retailer that can receive one large shipment at its central distribution center - where other retailers require multiple small shipments to their individual stores - provides the vendor with money-saving efficiency in the loading and shipping process. Therefore, the vendor can legally offer that retailer a price that accurately reflects the lower cost of doing business with the retailer. The specific law that sets forth these provisions is the __________. A. Magnuson-Moss Act (1975) B. Robinson-Patman Act (1936) C. Wheeler-Lea Amendment to the Federal Trade Commission Act (1938) D. Taft-Hartley Act (1947) E. Clayton Antitrust Act (1914)

A. resident buying office

Vincent Laurent, an English-speaking Frenchman, meets with buyers from the United States when they visit Paris. Once in Paris, the buyers rely on Vincent to make appointments with French vendors, which saves the buyers time and helps them penetrate the market. During the buyers' meetings with vendors, Vincent serves as an interpreter and assists in negotiations. From this information, we can conclude that Vincent works for a(n) __________. A. resident buying office B. perpetual trade show C. mercantile exchange D. embassy E. import/export agent

6c. In a national department store chain such as JC Penney or Macy's, __________ are responsible for managing relationships with vendors and negotiating with them.

buyers

D. private-label

Walmart's Great Value brand of groceries and its Equate brand of nonprescription pharmaceutical items are examples of __________ brands. [This question has been randomly selected from a pool of 15 questions. For optimal success in this class, repeat this chapter's questions until you are sure you are acquainted with all of the alternate versions of each question.] A. manufacturer's B. gray market C. generic D. private-label E. national

E. store

Walmart's Great Value brand of groceries and its Equate brand of nonprescription pharmaceutical items are examples of __________ brands. [This question has been randomly selected from a pool of 15 questions. For optimal success in this class, repeat this chapter's questions until you are sure you are acquainted with all of the alternate versions of each question.] A. gray market B. manufacturer's C. national D. generic E. store

E. advance shipping notice (ASN)

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. exclusive

When designer Vince Camuto created women's shoe brands Antonia Melani, Gianni Bini, Nurture, and Michelle D to be sold only at Dillard's, the retailer and the designer were teaming up to launch __________ private-label brands. A. generic B. copycat C. knockoff D. exclusive E. gray market

D. All of the above.

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.

1. According to the authors of your textbook, hiring and retaining retail employees involves five steps. In reality, each step is a set of activities. They are Recruit Train and ________ Motivate Evaluate Reward and compensate

acculturate

Garrett Jarrett is establishing a communication budget for The Sweat, Stink & Suffer Health Spa (also known as the "Triple S Gym"). Relying on his own experience and taking into account various economists' predictions about the economy, Garrett does a rough forecast of next year's sales. Then, Garrett estimates his total cost of doing business for the same time period. Next, Garrett contemplates a few arbitrary improvements he would like to make and estimates the costs of those improvements, as well as deciding the amount of his own salary. From the discretionary funds that are then left over (approximately $92,000), Garrett decides to allocate $72,000 to his company's IMC program. In this scenario, Garrett is using the __________ method of setting a communication budget.

affordable budgeting

Levy and Weitz cite statistics from Advertising Age magazine's annual rankings of advertisers: After __________, retailers are the second-largest group of national advertisers, spending more than _____ annually on online and mobile advertising. The authors go on to list Amazon, Apple, Best Buy, Walt Disney, McDonald's, Sears Holding, Macy's, Target, and Home Depot among the largest spenders.

automobile manufacturers (e.g., Toyota, Hyundai)

When a vendor (such as Kimberly-Clark) splits the cost of advertising with a local retailer (such as all Rite Aid stores within a designated metropolitan statistical area) for one of its products (such as Kleenex), it is called ______________ advertising.

cooperative

According to the authors of your textbook, buying the naming rights to a sports or entertainment venue (for example, PNC Park in Pittsburgh) is a form of __________. Some other authors (including, perhaps, the authors of your MKT300 textbook) say that it is a form of __________.

in-store marketing/design elements

The authors of your textbook categorize event sponsorship (for example, the Land Rover Three-Day Kentucky Event) as a form of __________. Your instructor disagrees.

in-store marketing/design elements

The authors mention that a retailer can send "mixed messages" when it communicates through several different media at once. For example, the company may be trying to establish its image as a time-honored and prestigious brand through its television and magazine advertising; at the same time, it may be involved in sales promotion activities (e.g., coupons and/or freemiums) that project a bargain-basement image. Furthermore, the firm may be promoting itself in YouTube videos that make it look more like a "hipster" brand than the "Ivy League" brand that it is trying to be. And, the company may be running a social media campaign that is inappropriate for its target audience or that makes it appear desperate for customers. According to Levy and Weitz, a retailer can avoid this type of fragmentation of its message; that is, it can ensure that all of the elements in its communication mix "speak with the same voice." The way to do this is by having a well-conceived and well-managed __________.

integrated marketing communications (IMC) program

6a. In a national department store chain such as Saks Fifth Avenue or Macy's, __________ are responsible for tailoring the assortment of several categories of merchandise for specific stores in a geographic area.

merchandise planners

The authors of your textbook differentiate between two categories of "new" media elements. One category is __________. Levy and Weitz list _________ as one of the media elements that fit this category. The other category of "new" media is __________, of which __________ is one example.

online media; e-mail; social media; Twitter

Sondra Alondra is establishing a communication budget for Gothic Ghoullery. Based on recent years' sales trends and based on economists' expectations of healthy economic growth, Sondra does a rough forecast of next year's sales: $1.2 million. Then Sondra computes 7% of that total: $84,000. This becomes the amount that Sondra allocates to her company's IMC program. In this scenario, Sondra is using the __________ method of setting a communication budget.

percentage-of-sales

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 __________

primary trading area; secondary trading area; tertiary trading area

8. The authors of your textbook state that human resource managers in retail firms need to be well acquainted with six categories of legal and regulatory issues. They are Equal employment opportunity Compensation Labor relations Employee safety and health Sexual harassment Employee __________

privacy

Cause-related marketing (for example, Starwood Hotels and Resorts' partnership with Special Olympics) is a form of __________. Group of answer choices

public relations

Product placement (for example, Starbucks in Fight Club) is a form of __________.

public relations

A successful retail communication strategy will usually make use of several media elements. Most likely, some of those media elements will be "traditional" media elements and some will be "new" media elements. Traditional media elements include mass media advertising, sales promotions, in-store marketing, personal selling, and __________.

sales promotions

Levy and Weitz (they're the authors of your textbook) describe __________ as "special incentives or excitement-building programs that encourage customers to purchase a particular product or service." Examples include samples, coupons, and point-of-purchase (POP) displays.

sales promotions