MKT 320 OTE 3

merchandise classification

A ______ is a group of items targeting the same customer type. I few examples might be men's big and tall sizes, gluten-free food items, or girls' sizes 4 to 6.

demographic

Abercrombie & Fitch operates three well-known chains of stores, each designed to serve a different target market. he company's namesake Abercrombie & Fitch stores target young adults age 21 and older, while its Hollister stores are geared to teens 14 and older and its Abercrombie Kids stores sell clothing for children from 7 to 14. From this information, we can conclude that A&F has taken a ______ approach to market segmentation.

in-store marketing/design elements; public relations

According to the authors of your textbook, buying the naming rights to a sports or entertainment venue (for example, KFC Yum! Center in Louisville) is a form of _________. Some other authors (including, perhaps, the authors of your MKT300 textbook) say that it is a form of _______.

acculturate

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

improves inventory management

According to the authors of your textbook, one of the advantages of the EDLP pricing strategy is that it____

reduces advertising and operating expenses

According to the authors of your textbook, one of the advantages of the EDLP pricing strategy is that it____

reduces stockout

According to the authors of your textbook, one of the advantages of the EDLP pricing strategy is that it____

assures customers of low prices

According to the authors of your textbook, one of the advantages of the EDLP pricing strategy is that it_____

the area that will generate the greatest long-term profit

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

a loss leader

An item that is sold by a retailer for a price that is less than the retailer's cost is____

80 percent

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?

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

By recent estimates, the Nashville-Davidson-Murfreesboro-Franklin ______ had a population of 1,670,890, with 691,243 of those individuals residing within Nashville itself. By similar estimates, the Somerset KY _____ is populated by 63,063 of whom 11,487 live within the community of Somerset itself.

forward integration

Gordon Food Service is a Grand Rapids, Michigan-based wholesaler/distributor. The company sells to grocers, restaurants, and institutions in a multi-state area that extends from Northern Michigan to Key West. You've probably seen its red-and-white "GFS" tractor/trailer rigs on the highway. In 1979, the company opened its first retail store, GFS Marketplace, making a large selection of restaurant-quality products available for household use. GFS Marketplace stores now exist in over 100 locations, and are an ideal source for large households and consumers who may be planning to throw parties - and no membership fee is required of those who wish to shop there. When Gordon Food Service began opening GFS Marketplace stores, the company was engaging in __________.

buyer; ROA

Gross margin return on investment (GMROI) is a metric used by retailers to determine a(n) ______'s contribution to ________

price leading

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 crafter 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 _______

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 $1569.99. 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.

approximately 30

Kent Dent and his partner "Scratch" Hatch own Scratch & Dent appliance. Last summer, Kent and Scratch bought a truckload of LG clothes dryers that had minor cosmetic defects. Kent and Scratch paid $375 each for the machines, which they displayed in the store with a retail price of $579.99. Three months later none of the machines had sold, so Kent and Scratch reduced the price to $529.99. Within a month, all of the machines had sold. The maintained markup on this truckload of merchandise was ____ percent.

25

Kent Dent and his partner "Scratch" Hatch own Scratch & Dent appliance. Last summer, Kent and Scratch bought a truckload of Whirlpool washing machines that had minor cosmetic defects. They paid $300 each for the machines, which they displayed in the store with a "take-it-or-leave-it" retail price of $500. Three months later none of the machines had sold, so Kent and Scratch reduced the price to $400. Within a month, all of the machines had sold. The maintained markup on this truckload of merchandise was ____ percent.

25 percent

Last month, Breck Beck spent $71.17 on food and household goods at Kroger. In the same time period, Breck spent $42.33 at Target, $19.72 at Walgreens, and $36.80 at Walmart (all for food and household goods). Target's share of (Breck's) wallet is approximately ______

diverted

Last week, Hannah Santana went shopping for bargain-priced clothing and shoes at Overstock.com. Hannah was thrilled to find a pair of Alfani boots (win her size!) for $51.99. As Hannah was finalizing her order, she said to herself, "I don't think I've seen this brand anywhere but Macy's before." The authors of your textbook would describe Hannah's new boots as __________ merchandise.

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.

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

Levy and Weitz cite statistics from Advertising Age magazine's annual ranking of advertisers: After _____, retailers are the second-largest group of national advertisers.

automobile manufacturers; second; $15 billion

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

automobile manufacturers

Levy and Weitz cite statistics from Advertising Age magazine's annual rankings of advertisers: "After ______, retailers are the second-largest group of national advertisers."

integrated marketing communications (IMC) program

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 freemium) 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 _______.

in-store marketing/design elements

The authors of your textbook categorize event sponsorship (for example, the AutoZone Liberty Bowl) as a form of ______. Your instructor disagrees.

the bases on which the retailer plans to build a sustainable competitive advantage

The authors of your textbook define a retail strategy as a statement that identifies (1) the retailer's target market, (2) the format the retailer plans to use to satisfy the target market's needs, and (3) ____________.

online media; mobile marketing; social medial; YouTube

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.

both A and B In a pull supply chain, a store is less likely to be overstocked or out of stock in a push supply chain, merchandise begins moving through the chain because of a forecast-driven decision to ship it at a particular time

Regarding "push supply chains" and "pull" which of the following is consistent with the textbook?

RFID technology is costly to implement. In the future, RFID tags may replace UPC tags. An RFID chip can hold more data than a UPC bar code. RFID technology enables accurate real-time tracking of a product all the way from the factory to checkout in the store. Using RFID on individual items can reduce theft. ALL CORRECT ANSWERS

Regarding RFID, which of the following statements is consistent with the textbook?

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 your textbook?

a slotting fee is collected from General Mills by Kroger or Albertons may exceed $1 million

Regarding slotting fees, which of the following statements is true?

providing assortments

Retailers create value by enabling customers to choose from a wide selection of products, brands, sizes, and prices - all at one location. Providing value in this manner is called ______.

affordable budgeting

Shirley Turley is establishing a communication budget for Ballistic Bazaar. By quizzing her vendors' sales reps for information about her competitors, and doing the same with the sales reps for the media outlets in her county, Shirley is able to make a semi-informed estimate that she and her competitors collectively spend $225,000 a year on marketing communications. Shirley also figures that her store accounts for about 30 percent of the retail gun and gun-retailed sales revenue in her trading area. Shirley then sets her total annual communication budget at $67,500 (which is 30 percent of $225,000). In this scenario, Shirley is using the _____ method of setting a communication budget.

$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 _____

percentage of sales

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.

online media; websites; social media; Facebook

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

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.

fewer stockouts

The authors of your textbook state that efficient supply chain management provides two principal benefits to retailers and their customers. Those benefits are _____ and tailored assortments.

privacy

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 _______

none of the above

The emerging international markets that are sometimes referred to as "the BRIC" countries are ________.

forecast category sales

The first step in merchandise management planning is to ________.

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 _______.

the cost of processing merchandise that has been returned by the customer

To calculate customer lifetime value (CLV), retailers use a mathematical model that takes into consideration the gross margin from a customer's past purchases, the estimated cost of acquiring the customer (including advertising and other promotion expense), and __________

same-store sales growth

To report chainwide sales growth statistics, retailer and retail industry analysts generally exclude locations that have been open for less than one year. The resulting figure is known as ___________.

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 buyer's meetings with vendors, Vincent serves as an interpreter and assists in negotiations. From this information, we can conclude that Vincent works for a(n) ___________.

habitual decision making

When Ken Flynn's wife sends him to the store to buy paper towels, Coke, and cereal, he makes a "surgical strike". Maintaining a stride that matches the tempo of the music on his iPod, he heads for the paper products aisle first. There, he reaches for the largest package of Bounty that is available, and puts it in the cart in one....

cooperative

When a vendor (such as Kellogg) splits the cost of advertising with a local retailer (such as all Kroger stores within a designated metropolitan statistical area) for one of its products (such as Pop-Tarts), it is called ___________ advertising.

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.

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?

copycat

Zach Mack 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, Zach stops at Walgreens to buy Zyrtec. On the shelf, next to the green Zyrtec packages, Zach notices similarly colored packages of Wal-Zyr "all day allergy tablets" with the red Walgreens logo in small print. When Zach examines both the Zyrtec package and the Wal-Zyr package, he sees that both medications have the same active ingredient: 10 mg Ceterizine Hydryochloride. Zach sees that he can buy almost twice as many Wal-Zyr pills as he can Zyrtec pills for the same price. Wal-Zyr as a(n) _______ brand.

market basket analysis

__________ is "a specific type of retail analytics that focuses on the composition of the ... bundle of products purchased by a household during a single shopping occasion."

ROA = "Net Income"/"Total Assets"

Sondra Alondra owns Gothic Ghoullery, a specialty apparel and accessories retailer. At present, the retailer has eleven locations: three at regional malls, six in strip centers, and two standalone stores. Key financial figures for Sondra's business for fiscal year 2019 include: - Net Sales: $1,700,000 - operating expenses: $422,000 - interest expense: $1,900 - total current assets: $253,300 - fixed assets: $462,100 - net after-tax profit: $657,800 - Taxes: $138,130 - cost of goods sold: $773,400 What was Gothic Ghoullery's return on assets (ROA) in FY (fiscal year) 2019?

$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 buys a pair of chrome-studded black multi-buckle knee-high platform boots for $150, the markup must be ___

$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_____

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 ___

mixed-use development (MXD)

The Summit at Fritz Farm has over 70 shops, including Whole Foods Market, Anthropologie, Lululemon, Brooks Brothers, Frye, and Bath & Body Works. Other features include restaurants, luxury apartments, a boutique hotel, and office space. The authors of your textbook would classify the Summit at Fritz Farm as a(n) __________.

fair labor standards; 1938

The ______ Act of _______ set minimum wages, maximum hours, child labor standards, and overtime-pay provisions.

Occupational Safety and Health Administration (OSHA)

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

Convert "good" customers into high - LTV cutomers perhaps through add on sales get rid of unprofitable customers "get the lead out" retail high LTV customers and gain a greater share of wallet from them by providing more value

when a retailer develops and implements its CRM program, which of the following is likely one of its objectives?

feeling good after helping a customer who really needed it

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

affordable budgeting

Garrett Jarrett is establishing a communication budget for The Sweat, Stink & Suffer Health Spa (also knows 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, 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.

quantity discount

"Multi-unit pricing" means the same thing as ______

primary trading area

A store's _________ is the geographic area from which it draws 50 to 70 percent of its customers.

sales promotions

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, in-store marketing, personal selling, public relations, and ______.

personal selling

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, public relations, and ______.

in-store marketing

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, personal selling, public relations, and ______.

mass media advertising

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 sales promotions, in-store marketing, personal selling, public relations, and ______.

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.

assortment plan

A(n) ________ identifies the set of SKUs (within a category) that a retailer will offer in each of its stores.

public relations

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

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.

5.5 (other is 10 to 15)

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 send a negative signal (i.e., that the stores are unpopular). For a shopping center, retail industry experts recommend ____ spaces per thousand square feet of retail store space.

Intelligence tests are prohibited by law. Period.

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.

Personality tests are prohibited by law. Period.

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.

$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.

?

If a retailer wants to participate in the CRM process, the first necessary activity is ________.

price elasticity

If you divide "percentage change in quantity sold" by "percentage change in price," you are calculating _____

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 and 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.

market expansion

In 2017, Bass Pro Shops purchased its largest intratype competitor, Cabela's. The two outdoor retail giants are built on similar business models, and they target customers with similar interests. At the time of the purchase, Cabela's and Bass Pro Shops were operating stores in many of the same cities and states. However, Cabela's also had several stores in U.S. states and Canadian provinces where there were no Bass Pro Shops, including Idaho, Montana, Utah, Wyoming, the Dakotas, Minnesota, Maine, British Columbia, Saskatchewan, and Manitoba. Bass Pro Shops' acquisition of Cabela's most resembles a(n) _______ growth strategy.

threats

In a SWOT Analysis, the letter T stands for ______.

buyers

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

regional managers; store managers

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

merchandise planners

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.

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____.

Senior Plant Manager

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?

Process engineer

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

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?

Chief Manufacturing Officer (CMO)

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?

high/low

Matt Flatt buys most of his business attire and some of his casual 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 Dres 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" sport shirts 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 benefitting from Jos. A. Bank's _____ pricing strategy.

staple merchandise

Merchandise like men's crew socks, frozen peas, college-ruled loose-leaf notebook paper, and 60-watt light bulbs would be considered _________.

Earnings before interest and taxes (EBIT)

Operating profit margin is also referred to as _____.

cause marketing

Patagonia sells a line of t-shirts that feature the artwork of nature conservationist James Prosek. Each of the shirts is imprinted with one of Mr. Prosek's drawings of a trout. For each trout t-shirt sold, Patagonia donates $5 to a grassroots organization that works to protect trout species and their natural habitat. This action by Patagonia would be categorized by the authors of your textbook as ______.

process of creating an image in the customer's mind, relative to the retailer's competitors

Positioning is the ______.

public relations

Product placement (for example, FedEx in Cast Away) is a form of _________.