cs257 final - prep quizzes
the _______ is used by catalog retailers and direct markets to identify the best prospects on the basis of when the last time the customers made a purchase, how often they make purchases, and how much they spent. a) inverted pyramid b) yield analysis c) RFM analysis d) 80-20 rule e) customer pyramid
c) RFM analysis
John likes to have the newest latest electronics. he used to go from store to store looking at new cameras, but now just looks online from his home. the Internet dramatically reduces the cost of _________. a) a need recognition b) the evaluation of consideration sets c) an information search d) a post-purchase satisfaction e) the choice of alternatives
c) an information search
when shoppers start down an aisle, select something and then instead of proceeding in the same direction, they turn around and retrace their steps without looking around is referred to as the ______. a) butt-brush effect b) crowded merchandise effect c) boomerang factor d) abandon effect e) capture rate
c) boomerang factor
a community that wishes to keep an old town atmosphere has forbidden the use of any neon lighting. this would be an example of a _________. a) blue law b) common maintenance code c) building code d) zoning e) trading area code
c) building code
the first step in the CRM process is: a) implementing programs b) analyzing data c) collecting customer data d) developing CRM programs
c) collecting customer data
what is the result of the "butt-brush" factor occurring? a) no impact on sales or profits b) increase on sales c) decrease of sales d) increase profits
c) decrease of sales
category killer retailers such as Best Buy or IKEA are considered to be a(n)________. a) ultimate provider b) ultimate merchandiser c) destination store d) demand-oriented service provider e) supply-oriented service provider
c) destination store
the store management is responsible for controlling their costs. what is the largest expense that they need to manage? a) vendor fees b) advertising c) employee labor d) marketing and special events
c) employee labor
which store design contains long gondolas of merchandise and aisles in a repetitive manner? a) free-form b) boutique c) grid d) loop e) racetrack
c) grid
the competition between retailers that sell similar merchandise using different formats, such as discount and department stores, is called: a) scrambled merchandising b) intratype competition c) intertype competition d) indirect competition e) backward integration
c) intertype competition
a retailer would be reducing the ______ gap if they reduced the difference between customer expectation and their perception of customer expectation a) performance b) standards c) knowledge d) communications e) research
c) knowledge
Service retailers sometimes find it difficult to match supply and demand because the creation and consumption of the service is simultaneous. This is a factor of _______. a) consumability b) compatibility c) perishability d) inconsistency e) intangibility
c) perishability
what best describes the value-creating function of BagBorroworSteal.com of providing jewelry and handbag rental services? a) breaking bulk b) holding inventory c) providing assortments d) financing e) providing services
c) providing assortments
responding to emails and taking action on customer concerns are examples of a retailer's: a) expertise b) tangibility c) responsiveness d) assurance e) reliability
c) responsiveness
in a drug store, cosmetic store, book store, or similar where many small items are offered, where is the best place to have shopping baskets (assuming carts are not necessary or offered)? a) just before the entrance of the store so the shopper has it ready to fill right away b) just inside the entrance of the store to remind the shopper to grab a basket c) scattered all over the store d) at the checkout
c) scattered all over the store
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) customer base b) profit sharing c) share of wallet d) customer share e) open wallet syndrome
c) share of wallet
some retailers, such as Walmart, Carrefour, Starbucks, Zara, and IKEA, have been successful in international markets. Key characteristics of these retailers that have successfully exploited international growth opportunities include all of the following EXCEPT: a) a globally sustainable competitive advantage b) financial resources c) strong marketing strategies d) global culture e) adaptability
c) strong marketing strategies
the MOST common method of organizing merchandise is by: a) type of purchase b) vendor c) style d) target market
c) style
which of the following is a fixed asset? a) a calculator that is kept near the cash register b) the merchandise in a store offered for sale to the customers c) the display fixtures in a store d) accounts payable e) accounts receivable
c) the display fixtures in a store
what does a retail strategy identify? a) the advertising campaign b) output measures c) the target market d) partnerships e) the retail trade areas
c) the target market
when large quantities of merchandise are displayed together to capture the customer's attention, it is called: a) vertical merchandising b) style/item presentation c) tonnage merchandising d) humongous merchandising e) tremendous merchandising
c) tonnage merchandising
which of the following would NOT be considered part of the customer database? a) a customer's apparel size b) a customer's income c) whether or not the customer patronized a competitor d) whether or not the customer responded to a recent promotion e) whether or not the customer shopped on the retailer's website
c) whether or not the customer patronized a competitor
which of the following is the best example of a service goal for a retailer that is sincere about reducing the service gap? a) "straighten the merchandise when necessary" b) "greet all customers when they enter the selling area" c) "respond to emails as soon as possible" d) "all new inventory should be displayed on racks within 24 hours of its arrival in the shipping area" e) "respond positively to all customer complaints"
d) "all new inventory should be displayed on racks within 24 hours of its arrival in the shipping area"
what is the formula to calculate employee turnover? a) # of applicants for the year divided by the # of positions filled b) # of opened positions during the year divided by the # of positions filled c) # of employees leaving their job during the year multiplied by the # of positions d) # of opened positions during the year multiplied by the percentage of positions filled e) # of employees leaving their job during the year divided by the # of positions
e) # of employees leaving their job during the year divided by the # of positions
what is the 80-20 rule? a) 80% of the customers come from 20% of the foot traffic b) 80% of the merchandise returns come from 20% of the customers c) 80% of the sales come from 20% of the product d) 80% of sales come from 20% markdowns e) 80% of the sales or profits come from 20% of the customers
e) 80% of the sales or profits come from 20% of the customers
to best compare the operating performance of one retailer to another retailer, an analyst would compare each retailer's ________. a) net profit b) inventory turnover c) operating expenses d) gross margin e) EBITA or EBITDA
e) EBITA or EBITDA
which of the following would be an example of intratype competitors? a) Walgreens and Best Buy b) Wal-Mart and CVS c) Sears and Abercrombie and Fitch d) Albertson's and Victoria's Secret e) Kohl's and Macy's
e) Kohl's and Macy's
what is an advantage of an independent, single-store over other forms of retail ownership? a) bureaucratic operation b) very low set-up costs c) distribution efficiency d) economies of scale e) ability to react quickly to market change
e) ability to react quickly to market change
a store manager that does not seek or welcome employee input when they are making decisions about how the store should be operated is considered to be a(n) _______ leader. a) laissez faire b) task-oriented c) transformational d) democratic e) autocratic
e) autocratic
CRM is based on the philosophy that retailers can increase their profitability by: a) expanding their services b) advertising more c) extending hours of operations d) providing better assortments e) building relationships with their better customers
e) building relationships with their better customers
how much of what is on display in that is actually seen by customers is referred to as the _______. a) abandon effect b) butt-brush effect c) boomerang effect d) crowded merchandise effect e) capture rate
e) capture rate
when Taylor buys groceries, she shops at Whole Foods or Trader Joe's because she knows that these two stores carry organic and unique foods. For Taylor, these two stores make up her __________. a) target market b) retail union c) market exchange d) retail criterion e) consideration set
e) consideration set
Elena usually shops for her clothing at Macy's, but would never buy her cosmetics there. She buys her cosmetics at Walmart. Her pattern of buying would be an example of _____. a) cocooning b) comparison shopping c) cross-docking d) segmenting e) cross-shopping
e) cross-shopping
Target knows from market segmentation research that their average customers come from a household of $60,000 annual income, that 33% of their customers have children at home, 51% of their customers have a college education and the median age of their customers is 42. This information is based on ______. a) psychographics b) geographics c) innovativeness d) lifestyles e) demographics
e) demographics
The _____ ownership format combines the advantages of owner-managed business with the efficiencies of centralized decision making in chain store operations. a) full-line discount store b) single-store establishment c) wholesale-sponsored voluntary cooperative chain d) retail chain e) franchise
e) franchise
When it comes to service retailing, since customers cannot see, touch, or feel what is being sold, the ______ of the service can sometimes be a concern for customers in trying to decide whether to buy or not. a) compatibility b) perishability c) inconsistency d) consumability e) intangibility
e) intangibility
customer satisfaction is affected by the amount of time it takes to get a question answered or a problem resolved. retailers can minimize this time by all EXCEPT: a) not interrupting the customer when they are speaking b) providing customers with clear and precise instructions c) reducing the number of people the customer must contact d) speaking clearly and using the customer's language e) making sure the store employees approve everything through a manager when it comes to dealing with customer complaints
e) making sure the store employees approve everything through a manager when it comes to dealing with customer complaints
which is the following is net profit? a) net sales - cost of goods sold b) gross sales - net sales c) measurement of the liquidity of the company d) express in before-tax dollars e) measurement of the overall performance of the company
e) measurement of the overall performance of the company
the weather forecast is reporting the season's first snowfall is predicted to hit tomorrow and it will also involve ice and sleet. many homeowners rush out to purchase shovels and deicing rock salt for their driveways. this has stimulated a ___________ which is part of the buying process. a) information search b) choice of alternatives c) evaluation of consideration sets d) post-purchase satisfaction e) need recognition
e) need recognition
Best Buy is considered to be a category specialist retailer because it ________. a) competes directly with discount retailers b) has extensive customer service c) has special categories of merchandise d) relies on extended warranty sales e) offers a narrow variety but deep assortment of merchandise
e) offers a narrow variety but deep assortment of merchandise
some retailers locate a smaller, temporary version of their typical retail store to create a buzz, test new concepts or to evaluate a new neighborhood or city. these retail formats are referred to as ________. a) mixed use developments b) multiformat deliveries c) free-standing units d) omnicenters e) pop-ups
e) pop-ups
which of the following does NOT describe how retailers increase the value consumers receive from their purchases? a) providing an assortment of products and services b) breaking bulk c) providing services d) holding inventory e) wholesaling
e) wholesaling
what is the following? -drive sales by overseeing sales floor operations throughout the entire store -manage that guest service and merchandising of two to three departments with sales ranging from $2-9 million -provide training, feedback, and follow up on merchandising skills for sales floor team members -recruit, select, and develop retail-talented team members -act as leader on duty on a rotating basis, by responding to customer and team member concerns, opening and closing the store and ensuring all property and personnel are secure a) a position statement b) a job enrichment statement c) a job analysis d) a job description
d) a job description
the number of different items in a merchandise category is the ____. a) variety b) product width c) product breadth d) assortment e) inventory mixture
d) assortment
what ideally needs to happen for the customer in the transition zone or landing strip? a) be met with a sales associate offering their help b) pick up a promotional flyer of all the great deals being offered c) find a basket to put their selected items in d) become acclimated to the store e) find a map and their way around the store
d) become acclimated to the store
trade area zones are best determined based upon _______. a) the distance a customer would travel b) customer's interests c) psychographics d) customer drive time e) demographics
d) customer drive time
when a firm invests in and owns a division which builds and operates stores in a foreign country, it is called: a) joint venture b) franching c) turn-key operation d) direct investment e) strategic alliance
d) direct investment
the most common type of leases used at community and neighborhood shopping centers are _________. a) percentage of sales leases b) pro bono leases c) full service leases d) fixed-rate leases e) variable-rate leases
d) fixed-rate leases
what is an advantage for a retailer utilizing centralized decision making? a) having more committed and engaged employees b) each store has its own flavor and personality c) better meeting the assortment needs of customers by store location d) having reduced costs e) being able to quickly adapt to market changes and fluctuations
d) having reduced costs
before Emily began her transaction at a retailer, she was asked by the cashier for her phone number. this practice is gathering _________. a) cookies b) biometrics c) share of wallet d) identifying information e) loyalty likelihood
d) identifying information
which of the following would NOT be effective in service recovery? a) listening to the customer b) providing a fair solution c) resolving the problem quickly d) interrupting the customer
d) interrupting the customer
which of the following does NOT describe breaking bulk? a) it is one of the value-creating functions provided by a retailer b) it provides cost efficiencies for manufacturers that can package and ship merchandise in larger, rather than smaller, quantities c) it is important to consumers because it gives them the chance to purchase merchandise in the smaller, more manageable quantities they prefer d) it hurts manufacturers' profits e) it is important to manufacturers because it provides cost efficiencies for manufacturers
d) it hurt manufacturers' profits
retailers must consider the trade-offs between lower operating costs and potential ________ from having multiple stores in an area. a) channel integration b) economies of scope c) congestion of people d) sales cannibalization e) economies of scale
d) sales cannibalization
retailers can effectively use power displays like a ________ to cause shoppers to pause and "take in" the store. a) distractor b) brick wall c) siren d) speed bump
d) speed bump
customers that like a retailer so much that they actively share their positive experiences with friends and family through social media sites such as Pinterest and Facebook are: a) mavens b) converters c) followers d) store advocates e) store sponsors
d) store advocates
which of the following would be the best person to make sure that high-quality customer service standards are achieved? a) market manager b) the CEO c) buyer d) store manager
d) store manager
which of the following DOES NOT describe an end-cap? a) retailers use end caps to merchandise seasonal, temporary, or promotional items as well as high-margin items b) they have high visibility c) they are a display located at the end of an aisle d) they are most often used with a free-form layout e) product sales increase dramatically when merchandise is featured on an end-cap
d) they are most often used with a free-form layout
one of the most important factors affecting store sales is the number of vehicles and pedestrians that pass by the site, or the __________. a) accessibility b) traffic stimulator c) traffic congestion d) traffic flow
d) traffic flow
Mary's weekly grocery shopping are best described as _______. a) resolved b) completed c) hedonic d) utilitarian e) congratulatory
d) utilitarian
Benetton, a popular retail chain from Italy, manufactures many of the sweaters it sells in its retail outlets at a textile mill in NC. Benetton is practicing: a) demographic marketing b) globalization c) product-related marketing d) vertical integration e) wholesaling
d) vertical integration
which of the following would be not only inappropriate but also hinder on being discriminatory to ask at an interview? a) what kind of people do you find it difficult to work with? b) what would you do if someone at your workplace made a racial slur? c) tell me about the people you hired during your last job; how did they work out? d) what happens if your spouse gets transferred or needs to relocate? e) what do you know about this position that you are applying for?
d) what happens if your spouse gets transferred or needs to relocate?
many products in a supermarket can be found in more than one place throughout the stores. what type of retail analytics is used to decide where to place products in a store? a) merchandising analysis b) market baset analysis c) supermarket analysis d) shopping cart analysis e) location analysis
b) market basket analysis
Abercrombie and Fitch's primary target market is college students. When A&F opened a new, lower-priced chain called Hollister, what growth strategy did A&F use? a) market penetration b) market expansion c) related diversification d) unrelated diversification e) retail format development
b) market expansion
which of the following is NOT one of the gaps that is a component of the service gap? a) knowledge gap b) performance gap c) communication gap d) delivery gap e) standards gap
b) performance gap
which gap is reduced by utilizing mystery shoppers? a) tangibility b) standards c) information d) consistency e) product
b) standards
which of the following is NOT considered an objective to be met when designing a store? a) the design should be consistent with image and strategy b) the design should be cheap c) the design should be flexible d) the design should recognize the needs of the disabled e) the design should provide a rewarding shopping experience
b) the design should be cheap
with discount stores now offering groceries, what can conventional supermarkets do to differentiate their offerings? a) they can invest in just-in-time inventory management b) they can provide private label merchandise c) they can increase store loyalty among customers d) they can provide one-stop shopping services e) they can eliminate perishables
b) they can produce private label merchandise
the _______ is the government agency that ensures that illegal discrimination, such as protected classes being treated unfairly and differently from others, is not taking place companies
equal employment opportunity commission
another name for the racetrack store layout is the ______ layout. a) convuluted b) loop c) suggestive d) departmental
b) loop
strategic planning is an ongoing process. the retail strategy does not change often; the strategy statement is reviewed and altered only when major changes in the retailer's environment or capabilities occur. the strategic planning process consists of a sequence of steps that may take a year or two to conduct and implement by many levels of the organization. identify the order of these seven steps according to your textbook. -evaluate the alternatives -identify strategic opportunities -conduct a SWOT analysis -develop a retail mix to implement the strategy -establish specific objectives and allocate resources -define the business mission -evaluate performance and make adjustments
1) define the business mission 2) conduct a SWOT analysis 3) identify strategic opportunities 4) evaluate the alternatives 5) establish specific objectives and allocate resources 6) develop a retail mix to implement the strategy 7) evaluate performance and make adjustments
put in order the average time shopping from least to most: -woman shopping alone -woman shopping with female friend -woman shopping with a man -woman shopping with children
1) woman shopping with man 2) woman shopping alone 3) woman shopping with children 4) woman shipping with a female friend
Many Americans are choosing to purchase more locally grown and produced food in order to reduce their carbon footprint caused by the transportation of food throughout the world. This is part of the _______. a) fair trade policy b) locavore movement c) core insight plan d) reversed profits guidelines e) fair labor standards
b) locavore movement
a shopper is most likely to see the standardization approach to customer service at _______. a) McDonalds b) Bass Pro Shop c) American Eagle d) Renaissance Resort Hotel e) Macy's
a) McDonalds
when a retailer responds to an economic downturn by putting a freeze on salaries, laying off sales associates, hiring more part-time workers, and decreasing training, this usually results in ______. a) a downward performance spiral b) lower employee turnover c) less outsourcing d) high employee productivity e) self-imposed training
a) a downward performance spiral
a way to achieve the customer alchemy is through _________, which involves offering and selling more products and services to existing customers and increasing the retailer's share of wallet with these customers a) add-on selling b) customer selling c) cross retailing d) retail accessorizing e) cross selling
a) add-on selling
at Mall of America, Macy's, Sears, and Nordstrom are the _______. a) anchors b) outparcels c) fringe stores d) power centers e) parasite stores
a) anchors
which of the following requires extended problem solving in a buying decision? a) attending the RV Show and meeting with a Fleetwood salesman to ask questions about recreational vehicles b) ordering a movie from Netflix c) purchasing a bottle of wine to go with salmon for dinner d) ordering a meal at McDonald's e) purchasing the required textbook for a course, then deciding to drop the course
a) attending the RV Show and meeting with a Fleetwood salesman to ask questions about recreational vehicles
Wal-Mart carries groceries, sporting goods, automotive, electronics, housewares, health and beauty, aids, apparel, footwear, jewelry, camping gear, and more. Wal-Mart has a ___________. a) broad variety b) diminutive inventory c) good customer base d) little shrinkage e) deep assortment
a) broad variety
when a retailer allows sales associates to make decisions to best serve the customer it is called ______. a) empowerment b) anarchy c) carte blance d) procedural fairness
a) empowerment
which of the following is the best opportunity for retailers to develop a sustainable competitive advantage? a) having excellent customer service and building customer relationships b) offering coupons c) having more sales promotions with lower prices d) having longer hours of operation to be open 24/7 e) having deeper assortments
a) having excellent customer service and building customer relationships
When Naomi got an A on her economics final exam, she celebrated by shopping at her favorite store and buying a new outfit. Her satisfied needs can be best described as _____. a) hedonic b) completed c) utilitarian d) congratulatory e) resolved
a) hedonic
why is providing assortments an advantageous business activity? a) it enables the customer to choose from a wide selection of brands, designs, sizes, and prices all in one store b) it enables the customer to stock up on the assortments because of bulk availability c) it enables the company to reinvest for the future of the business d) it enables the company to create a more informational and entertaining environment which would promote more sales e) it enables the customer to try more products
a) it enables the customer to choose from a wide selection of brands, designs, sizes, ann prices all in one store
which of the following locations is most appropriate to place impulse products? a) near the front of the store by the checkout points b) center aisles c) left hand size of the store d) right hand size of the store e) strike zone
a) near the front of the store by the checkout points
a diagram that shows how and where specific SKUs should be placed on retail shelves or displays in order to increase customer purchases is called a(n) _________. a) planogram b) assortment plan c) merchandise plan d) allocation plan e) placement plan
a) planogram
there are many responsibilities of store management. the first step in the management process that affects store employee productivity is _______. a) recruiting and selecting effective applicants to work for the retailer b) evaluating employees on their performance c) training employees to be knowledgeable and service the customer d) motivating employees to be effective and productive e) discussing compensation for job performance and duties
a) recruiting and selecting effective applicants to work for the retailer
DJ owns the Beach Shack, a small souvenir shop on a busy beach boardwalk which specializes in a variety of t-shirts, towels, and beach boys. He has identified his customer as a person walking on the boardwalk - mostly vacationers who want something cheap, functional and fun. He located himself close to parking for easy access, unlike some of his competitors. DJ seems to have developed a strong: a) retail strategy b) location strategy c) selling strategy d) business concept e) business plan
a) retail strategy
in store design, ensuring shoppers will be able to see what is in front of them and be able to look around and see what else is in the store refers to _________. a) sight lines b) blind spots c) boomerangs d) diversion
a) sight lines
a retailer that is hard to get to, even if the customer can see it, has low __________. a) compatibility b) accessibility c) store congestion d) cumulative attraction e) interception
b) accessibility
retail locations that are unconnected to other retail stores, and are destination stores are located _________. a) in discount-anchored centers b) at freestanding sites c) in off-price centers d) in central business districts e) in a neighborhood center
b) at freestanding sites
another name for the free-form layout is the ________. a) specialty layout b) boutique layout c) freedom layout d) loop layout e) format layout
b) boutique layout
the primary objective of a retailer's Human Resource Management is to ________. a) build morale and decrease employee turnover b) build a basis for a sustainable competitive advantage through the hired employees c) manage opportunities to build customer loyalty d) supervise operations in all departments throughout the company e) ensure the retailer abides by all state and federal labor laws
b) build a basis for a sustainable competitive advantage through the hired employees
which of the following is NOT a part of the retail mix for a furniture store? a) furniture assortments b) competitive response c) television commercials d) store credit card e) the location of the store
b) competitive response
a retailer that has many people browsing in their store, but few people actually buying products, needs to strive to increase their ______. a) innovativeness b) conversion rate c) benefit segmentation d) store loyalty e) advertising
b) conversion rate
__________ refers to products that customers decided to buy before even entering the store. a) impulse merchandise b) demand/destination merchandise c) special merchandise d) complementary merchandise e) promotion merchandise
b) demand/destination merchandise
which entry strategy or approach when entering foreign markets requires the least amount of investment and the lowest risk? a) direct investment b) franchising c) turn-key operation d) strategic alliance e) joint venture
b) franchising
7/11 is a convenience store that is characterized so because it _________. a) is about the same size as the traditional supermarket b) has a limited variety and assortment of merchandise c) earns most of its profit from sales of milk, eggs, and bread d) has great merchandise depth e) is in the introductory stage of the retail life cycle
b) has a limited variety and assortment of merchandise
according to WWB, what is the "butt-brush factor"? a) the need for in-store promotions to promote physical fitness b) if merchandise is too close to other racks, or high traffic area, people might get bumped, touched, or brushed c) using novelty merchandise to attract the interest of customers to a portion of the store d) department stores leasing floor space to outside businesses such as hair salons
b) if merchandise is too close to other racks, or high traffic area, people might get bumped, touched, or brushed
which of the following best describes retailing? a) it is the ability to offer enough variety in a store to encourage one-stop shopping b) it is the set of business activities that adds value to the products and services sold to consumers for their personal use c) it is the process of offering products in smaller quantities for consumer consumption patterns d) it is the merchandising component of the retail mix e) it is the strategy retailers and vendors use to get products into the stores
b) it is the set of business activities that adds value to the products and services sold to consumers for their personal use
the 3- letter acronym "SKU" stands for_______.
stock keeping unit
what does life-time value mean?
the expected contribution from the customer to the retailer's profits over his or her entire relationship with the retailer - recency, frequency, monetary
